Arizona republican., 1921-04-24
STEP TO
 REOPENCENTRAL.
 BANK IS I AIKEN BY DEP0S|TORS
One Thousand Depositors Pledge Their Assistance In Opening Local Insti- tution-All Must Help


 Depositors of the Central Bank of Phoenix, which voluntarily suspended operations March 21, took their first step yesterday to reopen the institu- tion. Told that the matter of reopen ing was entirely in their hands, nearly 1000 depositors of the bank pledged their moral and financial support in an enthusiastic meeting at the Shrine auditorium yesterday afternoon
 There were four outstanding fea- lures of this first public meeting. They were:
 That if the signature Of ev-
 cry depositor-even the smallest
 is secured, the bank will reopen.
 2-~In the event of its reopen
 ing, depositors will receive 100
 cents on the dollar in six equal
 installments beginning in nine
 months and to be paid regularly
 every three months Hereafter,
 the final payment to be made in
 two years.
 3-That depositors' dalms wifi
 be paid first, before any sum $
 paid to any other claimant.
 That the reopening will be
 under the Jurisdiction of the state
 banking departmsne, whicli will
 practically amount to a guaran-
 tee of the state tha. the deposit
 tors will be paid m full
 The Alternative
 A gloomy picture was painted by those in touch with the banks con- dition as an alternative. Failure of the bank to reopen, they emphasized, would throw the institution into a receivership. Under existing condl- tions, they declared, 20 cents on fhe dollar would be an optimistic opin- ion of the amount the depositors would receive. It was further point fairs of the bank could not be strengthened out within a period of five years.
 Every depositor, whether his ac- count be s1 or s10,o00. must sign the pledge card if the bank is to reopen speakers at yesterdays meeting said State Bank Comptroller c. w. Fair field has said that he will not per init the institution to open it's doors unless 100 per cent signature is ob- tained. He demands that degree of security-security to the depositors as well as to the community at large
 The bank has 3900 depositors, it was announced at the meeting. Of this number probably 1000 were in at- tendance at yesterdays gathering and practically every one signed the pledge card.
 depositor does not waive any right save that of immediate withdrawal of his account. The pledge follows:
 The Depositors' Plcdue
 Now, therefore, the undersigned a depositor of said bank, having con- fidence in it's officers and directors and being desirous of having said bank reopen and continue it's banking business, does hereby agree and bind himself to accept from said bank upoO said bank agreeing to issue tc the undersigned depositor six certifi- cates of deposit payable respectively in g, 12, 15, IS, q and 24 months from May l, 1921, each for one sixth of the amount of money now to my credit in said bank in lieu of the money now due me from said bank upon the agreement by the said Gen. tral Bank of Phoenix that it will re. deem said certificates at their face value at their maturity"
 Small depositors are especially urged to sign immediately. Practi- cally all of the larger depositors O. the bank have already agreed to tht proposal. But there are nearly 150t depositors whose accounts are $50 ol less, 1t was said. It is feared tha these depositors may feel that be cause their deposits are so small theil failure to sign will in no way hinder plans. This is mistaken idea, i was emphasized. for the signature O every denOSifoY is necaSSarv Failure to sign the pledge card. will not only throw the bank into tn, hands of a receiver but will reac unfavorably on business throughout the valley, speakers declared.
 Why the Bank Closed
 This bank closed it's doors no through any fault of it's officers O. 1 directors: not through any fault o any depositor, but because it stood behind the farmers in time of need Judge w. L. Barnum declared in al address that aroused wild enthusiasm ''The farmers were not to blame fo this condition; neither were tn, banking officials, but the bank stoo, | behind the people who helped bull. up this valley. Now it's time for tn 1 farmers and other depositors to stan' ! behind the bank. They have every thing to gain and nothing to lose; sure shot proposition"
 Forced sales of valley and cit! property. which would be one of tn ultimate results of receivership fo the bank, would add much to the de pression at this time, it was stated It would cause sharp breaks in tn values of rural and city property an' otherwise tend to demorslize Condi tions throughout the district
 irI, ,-1 1 and attorney for the bank, was tn 1 first speaker at yesterdays meeting He outlined the plan by which it i i hoped to reopen the doors of the banl within the next few weeks, and h. stressed the need for a 100 per cen
 tContinued on Page Two)