Arizona republican., 1916-01-04

pi.ny .or precisely the sum they cost
US, namely $685., GOO. Moreover, we
'-.-i 49,. ,,...rn,, ;a.c tbs -tulus menl
Company by giving it time to com
plete the payment of the 1852, coo;
, >4.,i. Il- -,uJdaJment Company
shall pay us the sum OF 100000 III
cash: deliver To us the secured notes
, of tac Old directors for S1j0.000, and
deliver 10 us the note of the Adjust
ment Company for $2l2,00o: we to
retain q lien on all the assets until
these Obligtions are paid"
Accordingly the Adjustment Com
pany was organized with capitahza-
ton of 100000 in preferred stock and
*150,0rO in common stock the plan
! being for the depoSitors of the old
bank To take the preferred stock and
the directors OF the old bank to take
the common stock-the preferred
stocil TO be paid before there should be
any disbursements to holders of the
common stock Thereupon the de
positors of the old bank We're invited
To subscribe 10 the preferred shares
of the Adjustment Company on an
equal basis-that is, each depositor
should subscribe to ;he amount Of
one fourth of his deposit in the old
bank and give a check therefor. the
directors of the old bank having al
ready agreed to take all the common
stock. The subscription campaign
among the depositors was highly sue
ceSSfui, the proposed $2pO,oO0 being
over subscribed in the sum 81 APP
lprOXinately $4,000. This over-sub-
scrlption was returned pro-rata 10 the
su'scf!pers' VINO numbered approNl-
ihatelF twenty-five huhdfed, Inc
result was aIter the return OF TINS
IoNer-SubScrlptlon that each subscrib-
'hS depofltor mad pald approximately
20 Her cent of his deposit for preferred
stock The notes offered ana ac-
cepted by the directors of the old
bank, comprised:
J.. j. Benmtts for-....... $4,000
Lloyd i. Christy's ior--..-..... 3',5o0
Z. h. O'N2ils for......-...... l2,5OO
John K Hamptons tol .-...-.. l2.'OO
Harry NJ kenned%S 1oT.--.--.- l2,oVO
J. \. Caehion's for.....-.-..... 1880
P T. Hurleys for..-..--.. -. 1880
b. NJ. Goldwater paying in cash 1880
All of The notes just mentioned We're
amply secured by real estate or other
wise, except the notes of Lloyd b.
ChristE The security in his case (real
estateD was not considered worth $37,-
500. but it included everything Mr..
Chlisty had in the way of property.
These notes We're endorsed by the Ad-
justment Company, of course. ard de
livered to the new Valley Bank There
will ultimately be some loss to the
Adjustment Company in the Christy
transaction, but just how much can
not be stated with accuracy. on the
basis of present valuations. the Christy
collateral is worth, We estimate. $25,-
600 TO $50, 900.
be no dividends on the preferred stock
until the Adjustment Company has
first paid its note for $2l2,0od; nor
/ until he notes OF the old directors, as
well, have been paid all Of the assets
of the Adjustment Company having
been pledged back to the new bank as
security for the payment of these
obligations.
Following the organization of the
Adjustment Company, Mr. Sims Ely
was employed to manage the business
at salary of $4,000 a year
This brings us to discussion Of
the assets taken over by the Adjust
nent Company. OF the $SG9.900 Gace
%alHe) purchased by The Adjustment
Company for 1892 600, there We're notes
which had been executed to the Valley
Bank OF Phoenix in the sum Of
$6S6.392-49
Notes originally given to
the Union Bank & Trust
Company (Which had been
absorbed by the Valley
Bank of PhoeniN) listed at 1851"
stocks TO the amount Of. l03.43469
Cash items and overdratts
amounting to..-.-..-..-.- @,2ll.b9
$SG9000oO
The cash items and oNerdrafts
proved nearly altogether worthless;
the stocks consist OF water rights IT.
the CHA Bend irrigation project IN the
sum of S6S-2O0; common stock of the
southwestern Sugar & Land Com
panN, S52.2o0; and other holdings %
ePHa!N htue value me notes Oh
course were az uhueSiraole' or lhey