Arizona republican., 1918-01-09

largely subject to the approval of the bank. It was provided that the af- fairs of the Adjustment company should be handled py a managing agent, answerable to the directors of the Adjustment company; that the agent should be under bond to both the Adjustment company and to the bank, and that no person should be em- ployed as agent manager who was unacceptable to the bank. Also, it wa> provided that no debt owing to the Ad- justment company should be compro- missed without the approval of the bank.
 The Future
 As already stated, the notes and stocks remaining have a book" value of s53S,160.S0. To this should be ad ded our real estate remaining unsold, of an approximate value or s30,00O It would therefore appear to the unin- formed that with assets of this amount and with the remaining indebtedness of only s149,61S.75, the owners of pre- ferred stock might reasonably expect to receive ultimately at least some thing in dividends on their stock. But it would be most unwise to indulge in any prophecy to that effect. If a guess be permitted-a guess based upon in innate knowledge of the character of the assets remaining-it would be that | stockholders would do well to base no calculations upon receiving anything. It would not be judicious to analyze in | this report the assets remaining; too many of the people who owe us are l already counting upon getting us to | classify their indebtedness to us as worthless. But hint to the situation may be gathered from the fact that O, 1 stocks listed at s111,596, there may be l as much as three thousand dollars that is not worthless.
 The experience of your officers in | handling the business of the Adjust | ment company is an experience con- mon to all similar situations-we have found that while there are consider able numbers of men who prove them- selves honest under all conditions by conscientiously trying 10 pay theiI debts under all circumstances. there is another class of men: those whc will look after and pay their debts tC a going bank, but lose concern for theiI debts incurred to bank that failed Some of this latter class may be founC among debtors of the Adjustment com pany, and they may be found in vari- OuS walks of life. It seems necessary to prod them up frequently as a rc- hinder that they borrowed money across the counters of the Valley Banl of Phoenix, carried jne money ava, and used it, and that this money be longed to the depositors of the old pan; and should now be repaid to the AG
 justment company. It is a noteworth! fact that a large portion of the mel
 who borrowed money of the Valle,
 Bank of Phoenix and whose notes nov
 are held by the Adjustment company are men against whom it is impossibl
 to enforce collection by any process O
 law. Some of these men are rathe
 noted for their piety, others for thei
 prominence.
 , From time to time during the pas , year, some of your directors then serv
 ing made suggestions to the effect tha
 since it did not seem probable tha
 the Adjustment company could eve
 accomplish more with the assets
 hand than to pay it's debt to the Valle
 Bank, it would be well for the Adjust ment company at once to turn bac all it's assets to the bank, take , clearance from its indebtedness, an go out of business. Sundry stoci'
 holders have made the same sugges
 ton. But this idea, brought to the al
 tention of the Valley bank manage
 met, has always elicited the same re T ply-namely, that the bank under T ; circumstances would accept a retur of the assets if offered by the director of the Adjustment company; that sue X an offer, to receive serious attention e would have to come from the body ( r the stockholders, especially called
 pass upon the question. Moreover, tf ) bank officials have added. they woul
 not advise such a procedure by Il
 Adjustment company. for two reason: D first. because the Adjustment compar Q. is managed carefully and economi' e ally by it's own officers, and it wou If be impracticable for the bank to hand