The Parker post., 1917-07-21
TIME LIMIT ON
ADJUSTMENT CD.
DEPOSITORS MUST COMPLETE Or
GANIZATION BY AUGUST 1ST
OR RECEIVER WILL. BE. AP-
POINTED.

Depositors and creditors of the
Commercial Bank, which failed on
June II, will not receive the antici-
pated 40 per cent dividend as prom
ised upon the organization of the
Parker State Bank for the reason
that there isn't going to be a Parker
State Bank, for the present, at least
At meeting of the depOsitors of the
defunct institution, held last Monday
night, it developed that p K. Lewis,
of the Central Bank of Phoenix, had
decided not to establish a bank here
This information was conveyed to
the depositors by G. H. Wolfe of
Phoenix, who represented Mr.. Lewis
Mr. Wolfe also read a statement OF
the supposed condition of the Com
mercial Bank, and the value which
he placed upon the securities.
Since Mr. VOLTS visit here it has
been ascertained that the statement
read by him was incorrect as to sew
eral important items Chief of these
was the value which he placed upon
$4,000 worth of securities and
equities in securities held by
it is impossible to give the true value
of these securities, it is positively
known that Mr.. Wolfe's valuation
of these items is far too low.
After listening to Mr.. Wolfe q
motion to the effect that the deposit
Ors proceed with the organization of
the Commercial Bank of Parker Ad-
justment company, despite the fact
that there is to be no new bank and
no guarantee of an immediate 40
per cent dividend, was unanimously
passed. The chairman+ J. B. Flan-
agan, was instructed to wire the
state banking department, asking
permission to proceed with the pro-
posed adjustment company This
wire was sent the same evening
A committee of five was elected to
take charge of organizing the adjust
ment company. This committee
consists of the following: j. F.
Raney, B. B. Brown, DR.. E. A. Lit
tlefield. Charles Detrick and j. B.
Flanagan.
j. B. Flanagan made a trip to
Phoenix Wednesday to confer with
State Bank Comptroller Jesse T.
Boyce and Attorney General Wiley
Z. Jones over matters pertaining to
the proposed organization of the ad-
justment company, AS the plans of
the proposed organization have been
changed owing to the decision of Mr..
Lewis not to establish a bank here
at present. it is necessary to secure
the approval of the new plan of
every depositOr who has already
signed the waiver of his account to
the adjustment company
The state banking department and
the attorney generals office instruct
ed Mr.. Flanagan that the depositors
would be given until August 1st to
complete the organization. Circular
letters, explaining the change of
plan, have been printed and are be-
ing sent to every creditor of the de-
funct bank. A form of approval
accompanies the letter, which must
be signed and returned to the Com
mercial Bank of Parker Adjustment
company at once if a receivership is
10 be averted.
About 35 per cent of the assets Of
the Commercial Bank consist of
equities in the new hotel building
ments. and in equities in securities
given to other banks to secure loans
The parties who hold these securities
and the creditors who hold mort
cages and material and labor liens
against the aforementioned prop
erty will at once foreclOse same in
Lne event OF the appointment OF
receiver. This action on their part
would practically wipe out the de-
pOsitors' equities and result in a loss
10 the depOsitors OF approximately
S25, 900, in addition to the extra cost
entailed in liquidating the affairs of
the Commercial Bank by means of
receiyership and through the courts.
There is a tremendous amount of
work involved in securing the assent
of over 400 depositors and creditors
of the defunct bank to this plan of
liquidation, as many of the creditors
reside outside Of Parker, and in many
instances no record can be obtained
at present Of their proper addresses.