Arizona republican., 1918-01-09

At the annual meeting of the stock holders of the Valley Bank Adjust ment company, held Monday afternoon, F. w Griffin. James H. McClintock, |. I. Kolberg, R. NJ. DeGeX and War wick Scott were elected directors for the ensuing year. r. w. Griffin was | re elected president, and Colonel Me Clintock was made secretary of the corporation.
 The report of Sims Ely, agent and manager of the company, was read, and by unanimous vote of the stock holders he was requested to offer his report to the daily papers of Phoenix for publication. In view of the fact that in point of number of it's stock holders the Adjustment company IS the largest corporation in the valley, it was the belief of the stockholders at the meeting that the agents report would have a considerable news value for the local public.
 The report of Manager Ely follows in full:
 Reports in detail, covering all re- ceipts and expenditures, and rendered monthly to your directors Following is a summary of the years operations:
 Receipts
 Beginning the year 1917 with
 cash on hand amounting
 to ......................s 1O77769 We reduced assets to cash
 and otherwise collected
 during the year the sum of 194,Sll.50 Our total cash for the year
 thus amounting to ...... .Sl6o, ,5S9.2i
 Disbursements
 Our disbursements during
 the year were:
 Payments on our indebt-
 edness to the Valley
 bank .......... .s1SO,O 10000 Payments on account of
 real estate: on mort
 gages. interest, taxes,
 insurance, and for the
 protection of assets -. 2S,54S.s4 Payments for office sal
 aries and expenses, ln-
 cluding salary of $400 to
 our attorneys .......... 4.24S.42 amounting to ........... .s162, 1918 Leaving cash on hand at the
 end of the year 1917
 amounting to ..... 2,791SS 1 Total .....-r......-...- ioo,oo o3'-4 All disbursements are made by check signed by agent; and before payment each check must be countersigned by an officer of the Valley bank. This is in conformity with the contract be- tween the Adjustment company and the Valley bank, and was designed as one of the means to enable the bank to keep in close touch with the affairs of the Adjustment company. The agent also always consults the bank man. agement before making any disburse- ment outside of routine matters, Il there can be any question as to the advisability of making the outlay.
 Remaining Assets
 Beginning business with assets of a face value of SS69,000. the Adjustment company still holds notes and stocks of the face value of S53S.106.0S. A lis' of our assets in detail was printed 1T pamphlet form and furnished to the stockholders more than d year ago.
 Remaining Debt
 The corporation began business ow- ing directly to the Valley bank the sum of s212,000, ana owing the bank collaterally the additional sum of slo0, 900 because of our endorsements ol notes given by others. as explained be low. At the close of the year 1917, wt still owed the bank a balance o s14e,603.7S. of which the sum of s1Oe, 800 was principal and s4I.10S.1S wa! interest We have paid the bank total of s149,618.75. On only one o our endorsements do we sustain loss The notes aggregating s37,5OO executed to the Adjustment company by Lloyt B. Christy and endorsed by us to th' Valley bank. were taken up by us ant our own notes given in exchange, whel MT. Christv found himself unable t' pay; and to avoid delays and eX' penses of foreclosure on the mort gages which had been given by MT Christy, we took his conveyance of al his property and cancelled his notes As the property he had mortgaged wa not worth the sum he had undertaken to pay, our loss on this transaction probably will be about sl2,00e. Tn exact loss cannot be stated as vel some of the property being stll unsoio The principal of the Christy debt bein thus added to our original debt o s212, 900 brought our total principa debt to the bank up to s249,o00. AS tn bank does not charge us for interes | on accrued interest, it has been ou policy to make our payments chlefl on the principal; and this accounts 10 the large interest balance which W still owe.
 The Origin of Our Debt
 The Adjustment company has som 2o00 stockholders, who were IorIneri depositors of the Valley Bank of Phoe nix which failed in November lsl' Many of them, it would appear fror their letters to the agent, still lack clear understanding of the AdJustmen companys indebtedness: they don clearly understand why there has bee no distribution to them from proceed of our collections and they don't un derstand why it is extremely douotft whether our stockholders can ever req lize anything on their holdings. seems worth while, therefore, to restat for their information the origin of ou indebtedness and to explain the pri mary object of the Adjustment com pany's formation. as well as to poir out the chaarcter of our assets.
 When the Valley Bank Of Phoeni suspended the failure was far mol serious than was supposed. Many ( the larger depositors, comprising busi ness men of Phoenix, quickly ascel tained however; that the failure coul not be treated as a mere temporar suspension due to lack of ready casl but was in fact a heavy failure, an that it would be calamitous for tf community unless measures could | devised speedily for the protection oh