The copper era and Morenci leader., 1914-12-11

Wereby Depositors VIII be paid
in FuiI-co-operation OF Depositors
Necessary, That Slow Paper be
Converted into Full Value as As
sets.
IHEcEVERsHIP Is
= NOT DESIRABLE
Bank Comptroller caIIaghan Advises
That Suggested Plans Be Followed
Rather than Having Costly Reeeiver
ship Proceedfnss, With conse-
auent Loss to Stockholders and
Depositors.
The plans for the reorganization of
the suspended Valley Bank of Phoe-
nix are portrayed in a letter sent out
by the reorganization committee to
each depositor of the institution. As
viii be seen by nerusa1 of the let
ter which follows below, the plan
| Is briefly that the bank resume
through the depositors and other per
sons affected forming an organization
for the purpose of Immediately realf-
zing upon the assets of the bank
which because of their nature would
be probably so long in realization
that speedy reopening of the bank
without the operation of such
plan would be greatly delayed. sa
Committee of Depositors, Valley
Bank.
Board of Trade. Phoenix. Arizona
Dec. 2, 1914.
To the Depositors of the Valley Bank:
4 proposition for re-opening the
Valley Bank, under new management
has been made to the Directors of
that bank by entirely competent and
responsible people. The acceptance
of this plan has been approved by the
State Banking Department and by
an advisory body of seven bankers
from this state and from California.
In brief, this plan requires that
some of the notes and other paper
now held by the bank be taken over
by trustee, and that the reorganiz-
ers be paid for this paper $780, 900 in
cash or the equivalent thereof The
paper in question will require time
for realization, and is on that account
not desirable paper for the bank to
hold, but 1t is the opinion of experts
who have examined the paper closely.
that if it can be handled by a trustee.
with ample time in which to collect
and dispose of it, and with no neces-
sity of sacrificing any value by hur-
ried action, that very material
amount can be realized from it.
Corporation named the valley
Bank Adjusting Company" has been
formed by the depositors of the
bank to handle this matter. =
The capital stock of this company
is 5e,OOO, composed of 10000 prefer
red shares, par value s5. 90 each, to-
-aling $2OO,OOO, and 10000 common
shares, par value SIS. 90 each, totaling
S15O,OO0
The preferred stock must be taken
It par by the depositors of the bank.
md may be paid for by checks on
he Valley Bank to the extent of one
onrth of the subscribers deposits.
Fhe common stock has been taken
'F the Directors of the Valley Bank.
The paper to be turned over to the
dJustment company will amount to
S69,OOO. The proceeds from the
ealization on this paper will be
first to the payment of
ne reorganfzed bank of $212,0OO. and
ext in order to the preferred. stock
olders, who are depositors until thew
ave been fully paid, and any balance
i'll then go to the common stock
olders until they shall have been
lily repaid the amour of their
ock.
1t is expected that the preferred
ockholders will be paid in full un-
IT this plan
If the 100000 from the depositors
not forthcoming for the preferred
ock at once the plan will fail and
ceiver will be Immediately appoint
Under a receivership it will be
o0ably at least eighteen months be-
re one cent will be received by
depositors, and in the end not
er sixty per cent. of your deposits
IL |" repaid to you. Your imlnedi.
attention tC this matter is absolute
necessary. Under the plan pro
seG' depositors will, upon the re-
sanlzat1on of the new bank, have