Arizona republican., 1916-01-04
VALLEY BANK

amounts to only s4.eo6.a5. 1t viii be
less this wear.
one provision IF the contract be
tween the new bank and the Adjust
ment Company seems TO require spe-
cial mention. We refer 70 the clause
reading.
I'll is further agreed that the bank
shall have the right at any time within
one year from the date hereof 10 eX-
change TOR any assets 50 transferred
TO the company before the same shall
have been reduced to cash, other assets
Of equal face value Of the assets for
merIy owned by the said Valley Bank
of PhoeniN."
There has been some misinformed.
loose and unjustifiable criticism Of
The Adjustment Company and OF the
new bank because Of this clause
Properly however. there can he
criticism of neither the Valley Bank
nor the Adjustment Company The
gentlemen who own the new bank
We're strangers to this community
In appraising and classifying the as
sets Of the old bank, they necessarily
had to rely almost altogether on the
opinions Of the directors ard officers
Of the old bank and upon the opin-
ions Of other bankers of Phoenix: the
.concensusof that opinion being that the
assets which We're finally sold to the
Adjustment Company were of the
classification already stated. The pros
pective organizers OF the new bank
had justly said, however Gin sub
stance): From the best information
we can get concerning the assets of
the old hank the notes and securities
which we nave listed as undesirable
should he 50 classified; but we are
strangers and il is possible that mis-
takes have been made in this cIassi-
ficaticu I'm other words we may set
over to the Adjustment Company as
undesirable to us notes that are in
reality good or can be made good.
whereas We may, through mistake. re-
tain notes that are of doubtful char
acter We. therefore, can not go
ahead with the plan which YOU have
proposed To us unless we are permit
ted 10 protect ourselves by making
exchanges and substitutions" The
depositors' committee saw the justice
and force Of this position and ac-
cordngly the clause just quoted went
into the contract; the total changes
under this clause of the contract have
amounted TO $4S,I7S.5O
Some of your present directors We're
active members of the depositors'
committee and they have no wish 10
evade any Of the responsibility which
attached TO the committee in carrying
into effect the project OF protecting
. 10
the efforts in that direction had failed
and the new Valley Bank had not
| been organized. the old bank would
have gone into the hands of "A re-
ceiver with the result in all proba
hility. that the depositors would have
received but small proportion Of
their claims ard Their only after a
| long period of iquIdation Through
the efforts of the depositors' com
mittee the cooperation of the di-
reCtors of the old bank and with tht
advice of all the leading bankers OF
! the state, q heavy bank failure was
| so handled that deposits aggregatine
| two millions of dollars We're released
| a new bank of large capital was
! brought to Phoenix and disaster for
| the community was prevented. The
| transaction viii stand. we think as 4
record one in beirg the most for
| tunare outcome ever seen following q
great bank failure; ana should it IN
/ fortunately develop that tee deposition,
who contributed twenty per cent OF
! their deposits must finally lose all o
| their contribution, the transaction
would still stand as an exceedingly
/ fortunate one. DeEert beIpSS
We think that every stakeholder Of
the Adjustment Company should know
| just what the assets of the company
are. and We recommend that vol
authorize the manager to print. fol
your confidential information. sui.
| ficient number of lists Of the person.
who owe the company TO give eacI
stakeholder a copy The PROPOSED
i printed list will serve two purposes
| it will cnlichten the stakeholder OF
the situation with which the compan,
has to deal and it will enable tn,
stockholders better 20 cooperate witt
their directors and mama -er in re
ducinG our assets to cash.
Formal meetings Of your director
have hecn held whenever necessary
ana in addition to these meetings tn
directors have individually conferre,
frequently with the mana2cr concern
ing the affairs of the company. Serv
ing without pay. as they have. YOU
directors have been glad to give al