The daily journal. (Salem, Or.) 1899-1903, 1901-09-03
GILBERT
BANKRUPTCY
CASE
Former Receiver Put on the
Witness Stand.
Witness TeStifieS That Gil
bert Bros. We're Partners
in Piano Business.

The taking Of testimony in the Gil
bert case was continued today before
Referee John Bayne. The questions o.
the solvency Of Gilbert Bros. were es-
pecially set forth. An item brought oui
previously regarding the co-partnershir
of Gilbert Bros. was deemed an impor"
tant feature. It was that the letter and
bill heads used by the bank until the
date of it's closing contained the names
of both A. T. and f. N Gilbert,
The first witness today was A. w.
Prescott, the Oregonian correspondent.
On May 20, of the present year, he was
conversing with A. T. Gilbert regarding
the financial position Of the banking
firm. He called at the Gilbert residence
and asked as to the report of Mr..
Thielsen being correct. Mr.. Gilbert
said the report was correct in all mate
rial points, but some minor details
we're wrong. BY the figures OF the re-
port and those of Mr.. Gilbert, Mr..
Prescott figured that the depositors
could expect to receive about 75 per
cent Of their money.
The corrections made by Mr.. Gilbert
were subtracting $4,000 from the liabili-
ties and adding $4,000 to the resources.
This testimony was objected to by Mr..
Cake on the ground that f. N. Gilbert
was not prefent, aud by Mr.. Brown on
account OF 1t being irrelevant and imma-
terial TO the solvency Of A. T. Gilbert.
Il. T. Hatch OF Portland was called. He
is a former resident Of Polk county
was collector Of customs in Alaska, and
held several other prominent positions.
He was personally acquainted with Gil
bert Bros, knowing them as a business
firm in 1887. On January IL, OF this
year Mr.. Hatch had some conversation
with A. r. Gilbert about the advisability
OF going into some kind Of business in
Salem. Mr.. Gilbert advised him to try
the music business. saying that they had
found that quite profitable. He said,
" Frank and have bought the Wiley b.
Allen interests in Portland" He also
said that he and Frank Gilbert were
partners.
On cross-e examination, Mr.. Hatch said
that on January ~, 1901, he deposited
$4,000 with Gilbert Bros. At the present
time there is $347995 and the accrued
interest due him from the bank.
Regarding the statement that Frank
and A. 4. Gilbert had purchased the
music business iu Portland, Mr.. Hatch
stated that Mr.. Gilbert offered him n !
place as manager Of the business; then
gOve some items as to the profits of
their music business in Salem.
To conclude the cross-examination,
Mr.. Cake asked II Mr.. Hatch was aware
that the purchase OF the Wiley b. Allen
music business of Portland was not
made until april. lie replied that he
was not,
IL. b. Theilsen Of this city, an insur-
ance agent, who was appointed on April
%, 1901, temporary receiver Of the bank
OF Gilbert Bios, WAS the next
witness. After receiving the or |
der of the court he began an inventory
OF the effects and business OF the bank
ing house. lie was assisted by Hugh
Conoway and Miss Virgie Byrd.
The result Of his investigations was
shown in his report to the U. s. court
at Portland. The material 10 formulate
the report was gathered from the books
Of the banks, from notes in the bank,
from copies OF notes in the bank as
collateral, from Information from A. +.
Gilbert, and from any other reliable
source. In his report he gave his
estimate Of the value of the assets Of the
bank. also MIR, Gilberts estimate of the
same,
MIR, Thielsen estimated the value of
the real estate belonging to the bank at
Sl0,S!6, This estimate vas made from
the value placed on the land boy Mr..
Gilbert and the consideration paid for
the title in simple fee.
In the afternoon the only witnesses
CALLED were Claud Catch and Miss
Virgie Byrd, who testified regarding the
time certificates on the bank and points
pertaining to the bank books.