639. Valley Bank (Phoenix, AZ)

Bank Information

Episode Type
Run โ†’ Suspension โ†’ Reopening
Bank Type
state
Start Date
November 10, 1914
Location
Phoenix, Arizona (33.448, -112.074)

Metadata

Model
gpt-5-mini
Short Digest
444237f87c14bf3b

Response Measures

None

Description

Contemporary articles report a run that left the bank with very little cash, the state bank examiner took charge and the bank suspended on Nov 10, 1914. Depositors and outside bankers reorganized the institution and it reopened Dec 30, 1914 with new officers; a receivership was threatened but avoided. Bank type not indicated in name; 'Valley Bank' appears to be a state-chartered (not explicitly 'National' or 'Trust'), so set to unknown.

Events (3)
1. November 10, 1914 Run
Cause
Bank Specific Adverse Info
Cause Details
Run exhausted the bank's liquid funds; institution had large amount of slow/illiquid ('sold'/'slow') assets and less than $30,000 on hand against over $2,000,000 deposits.
Measures
Depositors organized committees to pledge a portion of deposits to remain; reorganization committee solicited outside capital and depositors formed an adjustment company to take over undesirable assets.
Newspaper Excerpt
the state bank examiner took charge Nov. 10, after a run, which the institution was unable to withstand
Source
newspapers
2. November 10, 1914 Suspension
Cause
Government Action
Cause Details
State bank examiner (Auditor J. C. Callaghan) took charge of the bank after the run and the bank suspended payment; directors/officials were unable to summon sufficient cash to resume business.
Newspaper Excerpt
A typewritten notice posted in the window of the institution was the only notification to depositors that business has been suspended indefinitely.
Source
newspapers
3. December 30, 1914 Reopening
Newspaper Excerpt
The Valley Bank... which was closed November 10, will be reopened tomorrow with a new set of officers and directors... None lost a penny, and in celebration of the reopening they will give a parade Saturday followed by a 'prosperity dinner.'
Source
newspapers

Newspaper Articles (22)
1. November 11, 1914 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, November 11, 1914

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VALLEY BANK DOUNJ DOORS CLOSE INDEF FINITELY Antiquated Manner of Business And Archaic Methods Are Causes On Which Closing Is Blamed-Many Securities Midnight Discussions Reached No Decision on Manner In Which Bank May Re-open -$500,000 Place on Feet. PHOENIX, Nov. 10.-Conferences between the officials of the Valley Bank and local financiers who have been requested to come to the aid of the institution were still being held at midnight. Those credited with being closely in touch with the situation are not optimistic, however Rumors that the doors of the bank would not open this morning had been current for the preceding twenty-four hours so the surprise and consternation which otherwise would have been expressed did not develop. A typewritten notice posted in the window of the institution was the only notification to depositors that business has been suspended indefinitely. The liabilities of the bank are placed at nearly $2,000,000. divided substantially into the following terms: commercial accounts, $700,000; sav ing deposits, $400,000; time deposits, $400,000 and the balance of $500,000 is made up of various banking liabilities. 1. It is said here tonight by men best S. informed concerning the situation n that $500,000 in cash would be ree ouired '0 enable the institution to re1some business on a conservatice it working basis. 1Efforts being made tonight center to on of the y a that shall ward the proposal attitude they directors guar- to of asn at their antee sets of with the adequate bank security face the value r There is littlehope, however, to this 11 directors and, acceding proposition of the in fact, the early resumption of i. business is not expected. of The report is current that banking es Prescott. interests in Bisbee, Douglas, d Tucson and other e to extend inclined localities assistance are than less 10 would be the case if the X the directors of Valley Bank officers showed and a disposition to make such sacrifices e as the situation warrants. CGovernor Hunt was called into the na conference which was held until an he early hour this morning before final re decision was made to close the bank. m. orHe failed utterly to throw any light on the solution and withdrew after a g ui consultation with Auditor Callaghan, conferres. who was another of the ve Loans on securities which not he negotiable and bank readily archaic are ing methods are held responsible for present of the the plight institution. beIt can be stated emphatically that no other banking institution in Phoenix ill will take over the affairs of the Valhe a view to les ley the Bank with liquidating assets and providing for a resump be tion of business. It is believed that at the closing of the bank will have a of noticeable effect on the commercial to situation in Phoenix. the

2. November 13, 1914 Arizona Republican Phoenix, AZ
Article from Arizona Republican, November 13, 1914

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Great and Harmonious Meeting at Armory Declares Unanimously in Favor of Proposition to Stand by Re-opened Bank OVER HALF DEPOSITS ARE REPRESENTED Statement Made That the Course Being Taken is Encouraging Outside Capital to Come to Relief of Closed Institution The meeting of the depositors of the Valley bank at the Armory last night was perhaps the most harmonious and best humored meeting, for the size of it, ever held in Phoenix. It was also, perhaps, unlike any meeting of the kind ever held before in the world. A stranger unfamiliar with the happenings of Phoenix within the last week would never have guessed that the gathering was made up of persons who had their savings in a bank whose doors had been closed for three days. The object of the meeting was to secure additional signatures to a resolution to be signed by the depositors that, in the event of the reopening of the bank, they would allow 80 per cent. of their deposits to remain for at least sixty days. Not fewer than 600 persons, nearly all of them depositors, assembled in the armory. The meeting was called to order by Dr. J. C. Norton, who cautioned depositors against the sale of their claims against the bank, at a discount. There was no reason, he said. why they should lose a part of their deposits. Dr. Norton introduced Colonel MeClintock as chairman of the meeting. Colonel McClintock said that the deposits in the bank constituted one of the smallest factors of the situation. He was far more interested in the settlement of the bank's affairs as a citizen and a taxpayer. He spoke of the Valley bank as an institution: of what it had been to the valley, and when he made the statement that it was "the heart of the valley," there 1 was loud applause. He said that Attorney General Bullard in the presence of Governor Hunt had declared that the investigation 1 which is now in progress had disclosed no evidence of speculation by the bank officials with the funds of the institution, or that there had r been the slightest misuse of any of a the funds for the purposes of any of ficial. e Colonel McClintock advised against e n any policy that would throw the bank r into the hands of a receiver. Ren garding the report that among the assets of the bank there was bad paper to the amount of $200,000, there S was no doubt that at least $100,000 could be easily realized on this paper. e k In any event, the surplus and stock would be more than ample to cover the deposits. If the depositors would now give the bank the assistance that had been suggested, the stockholders would be able, as well as the depositors, to. realize something. It was not proposed. the speaker said, that the Valley bank should be it merely rehabilitated, but that (Continued on Page Four.)

3. November 13, 1914 Montpelier Examiner Montpelier, ID
Article from Montpelier Examiner, November 13, 1914

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Arizona Bank Fails. Phoenix, Ariz.-The Valley bank, the largest financial institution in Arizona, which suspended Tuesday, has been put under the charge of J. C. Callaghan, state auditor. The Valley had a capital of $150,000, and deposits of $2,225,000.

4. November 13, 1914 Arizona Republican Phoenix, AZ
Article from Arizona Republican, November 13, 1914

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resolution be placed today at the leading drug stores, where the bank depositors might find and sign them, and it was stated that before the meeting signatures representing more than half the deposits had been secured. Colonel McClintock said that be would like to quiet one of many will rumors that had- been in circulation, that the troubles of the bank had been caused by the withdrawal, for spite, of the deposits of the so-called liquor interests. He said that there had been no such withdrawals in large volume. On the contrary, some men engaged in the saloon business who were depositors in the Valley bank were among those who had signed the resolution and were offering the same assistance to the bank that hundreds of other depositors were offering. Last night after the meeting, Bank Comptroller Callaghan and his force of accountants were at work in the bank until a late hour, and when be was advised of the action of the meeting. he declared that such action was a step toward the encouragement of those who might be seriously considering the proposition of financing a reorganization.

5. November 18, 1914 Arizona Republican Phoenix, AZ
Article from Arizona Republican, November 18, 1914

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The Valley Bank Matter Is Progressing Rapidly And Well The condition of the reorganization ening out the affairs of the bank. They have just completed a careful appraiseof the Valley bank and its probable imment of assets and their statement, as mediate consumation was the question presented to the committee, was more under discussion at a meeting of the favorable than had been expected. directors of the institution with the "The completion of this appraisemembers of the policy holders commitment now makes it possible to talk intee yesterday. The committee is comtelligently with outside capital looking posed of Dr. J. C. Norton, Col. C. W. toward reopening the bank. The deJohnstone, A. L. Moore, Francis S. Vepositors' meeting is working hand in lie, Rev. H. M. Campbell, Frank T. Alhand with the officers of the bank to kire and Clay F. Leonard. After the prevent a receivership and it is confimeeting the committee gave out the dently expected that negotiations now following statement for publication: in progress will result in the speedy "This morning the directors of the reopening of the bank without the loss Valley bank met with the depositors' of a dollar to any depositor. The decommittee in a lengthy conference that positors' committee, as fast as warwent deeply into the affairs of the inranted, will give through the press to stitution. The directors have been the depositors and the public all posworking night and day toward. straightsible information of interest."

6. November 27, 1914 The Snowflake Herald Snowflake, AZ
Article from The Snowflake Herald, November 27, 1914

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display of dry farm products. Indians from the Sacaton and other reser took twenty-three first prizes in the agricultural department and twel seconds. In the mine rescue contest the Copper Queen team, from Bis won first place with 95 points out of a possible 100. The Detroit Coi company team, from Morenci, was second, with 82 points; Old Domir team, Globe, third, 79 points. First prize was $100 and a silver cup Old Dominion team carried off highest honors in the first aid contes The Detroit Copper company team was second; Old Dominion second tear third; Copper Queen, fourth; Detroit second team, fifth. Helen Keith Woc ford of Phoenix was the winner of the sweepstakes prize in the "better be bies" contest, in which 250 babies from all parts of the state were entered award was made on 99 points out of a possible 100. Mrs. John Roc Tombstone took first prize in the art department with a picture of horse, painted by herself. The cowboy. sports proved an interesting feature the fair. John Fredericks of Phoenix won the broncho riding contes: Doc" Pardee and "Lone" Jordan of Yavapai county were his principal competitors. Tommy Rice of Phoenix won the cowboy relay race in thr straight heats. Mrs. Samuel Mahan, wife of a Phoenix gravel hauler, has sudden found herself heiress to $14,000, all because she befriended an old mine apparently penniless, in the last few weeks of his life. Last May Pete Peterson, the old miner, appeared at the little shack in the bottom of Se river, a mile south of Phoenix, where the Mahans made their home. Mahr then eking out a precarious existence by hauling gravel from the rive to Phoenix, and his wife had recently been a dishwasher in a Phoen Mrs. Mahan was able to speak Swedish, Peterson's native tong he soon became a close friend of the family. Finally he camped no Mahan shack. Six weeks ago he fell ill and the Mahans moved hi their home, where Mrs. Mahan nursed him until he died. He left a W bequeathing her all his earthly possessions, which she supposed amounte fo a few dollars. When she inquired at the bank wher he kept his fund found that he had a balance of $14,000. The Valley Bank of Phoenix, Arizona's largest financial institution, the hands of the state banking department, and has not been open f business since November 10. It has deposits totaling over $2,000.000. Th Valley Bank and Trust company of Globe and the Consolidated No "onal Bank of Tucson are negotiating for the Valley, and either may tak over. President C. F. Mills and General Manager R E. Moore are cor ducting the negotiations for the Gila Valley company. while Albert Steinfel and Col. Epes Randolph represent the Consolidated National. Attorne General George Purdy Bullard is expected to make application in the S verior court of Maricopa county for a receiver for the suspended bank. that event, the Val'ey bank directors probably will ask that George A. Mau named as receiver. Counsel has en employed by the wholesale and retail liquor dealer Arizona to br'ng action in the federal court to prevent the enforcement the prohibition amendment. approved bv a majority of the voters Nover 3, until the legislature can enact legis'ation to make it effective. There difference of opinion as to whether the amend ment becomes self-effec 1 or enforcible. January law uak to must have a

7. December 8, 1914 Arizona Republican Phoenix, AZ
Article from Arizona Republican, December 8, 1914

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WORLD of SPORT CUBS ARRANGE SCHEDULE VALLEY BANK COMMITTEES RIZE AWARD (Continued From Page One) OF BASKETBALL CONTESTS in error, as was explained by one member of the committee as all who have money on deposit are requestIN BIKE RACE The Cubs will play the Leaders' ed to be a part of the body of declass of the Y. M. C. A. a game of positors who assist in rehabilitating basketball this afternoon at four the bank. o'clock. They will take on the night This is regarded as necessary beclass team of the Y. later in the rotests Against Winners cause of the number of depositors week. of the whole nine thousand who will do Not Stand, and Bovs The following line-ups have been not be found, no matter how careGet Their Rewards; Plans given out for the games: ful or thorough the canvass, The Leaders: Putney and Tovrea, forfact that this or that depositor has Being Considered for wards; Dorris, center; Reno and not been or is not visited is not to Chandler Race. Cheney, guards. be considered as a slight by any Cubs: Pickrell and Lefevre, formeans as the assistance of every one wards; Irvine, center; Detweiler (capis needed in the movement. Ie is 'he protests that Harold Kincaid tain( and Heflin, guards. necessary to obtain signatures to Harry Newnham helped themY. M. C. A. Night Class: Grosso checks on the bank equal to the sum ves along the route of The Reand McCoy, forwards; Boyer, center; of $200,000 and none less than that. olican's Tempe Phoenix bike race, Wright and Smith, guards. This being true the invitation of the ring failed to be proven, the comThe Night Class has won two out committee for depositors to visit the tee has awarded the prizes to of the three games played with the board of trade rooms has double se two young athletes, who finLeaders, a fact which promises a force. ed one and two in the contest. Neil strenuous combat with the fast Cub Further than this the present comheney gets third prize, Harley Frateam. mittee feel in need of other workers o winner of the Echo Canyon to who will assist in making the canpenix race, fourth and Alfred Sanvass. There are many who have The Giants were the only team to S fifth. signified their willingness to work score over 100 runs against the incaid's reward for having made who have not yet been. heard from over Braves last season. They put best time, will be a handsome and these are requested to get in 114 while the Cincinnati Reds regisuseful coat sweater, and the big touch with Dr. Norton, chairman of tered 53. of the purse raised by collecting the depositors' meeting, or Harry o ry fees. The other winners get Welch, secretary, and work will be Reports from Chicago tell of blood rehandise prizes and small cuts off assigned to them. friend, poison threatening our old 11-the bacon as it were

8. December 8, 1914 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, December 8, 1914

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DEPOSITORS TO JOIN VALLEY BANK PLAN PHOENIX, Dec. 7.-The plan for the reorganization of the Valley Bank, which was referred to the advisory committee of the bankers of Arizona and Los Angeles summoned to meet in Phoenix on Friday at the invitation of State Bank Comptroller Callaghan has been carefully cerutinized by the depositors' committee, who feel that the recommendation of the bankers is well advised and the only possible solution of the situation with due regard to the speedy reopening or the bank and the payment in fill of the depositors of their accounts. The plan as recommended by the aa. visory committee of bankers requires to a certain extent the co-operation of the depositors. The committee of depositors is forming a company to take over certain assets of the bank which will require time upon which to rea:ize. Each depositor will be visited n person, or will receive a letter withn forty-eight hours outlining the COoperation which is required from each individual to make this plan successful. It is a great relief to the state bankng department and to the depositors' committee to realize that a solution of this difficulty has been reached which will make possible the reopening of the bank and will avoid the necessity if applying for a receivership. If a receiver were appointed for the bank no payments on deposits could possibly be made for over a year and under a receivership not over sixty per cent of the deposits could ever be repaid. This amount could only be realized after three years or more of earnest effort on the part of a receiver With the co-operation of the depositors the plan for the reorganization will be effected within the next few weeks and depositors will be paid in full. The depositors' committee earnestly request that every depositor answers immediately the letter which will reach them within the next few days and that every encouragement be given the committee in its endeavors to bring about the prompt reopening of the bank.

9. December 11, 1914 The Copper Era and Morenci Leader Clifton, AZ
Article from The Copper Era and Morenci Leader, December 11, 1914

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VALLEY BANK TO REOPEN (Continued from Page 1) a live balance available with which to do business. Sign the enclosed check for onefourth of your deposits in the Valley Bank and return in enclosed envelope today. Your check should be in even figures, neglecting the cents. If one-fourth of your deposit is $21.50, make a check for $20; if one-fourth of your deposit is $33, make the check for $35. This is important to you personally. Send in or bring in your check at once to the Board of Trade. Committee of Depositors: J. C. Norton, Chairman, A. L. Moore, F. S. Viele, E. T. Alkire, H. M. Campbell J. H. McClintock, C. W. Johnstone, Clay Leonard, Harry Welch, Secretary. Letter to Depositors. Phoenix, Arizona. December 5, 1915. To the Depositors of the Valley Bank: When in the performance of my official duties, it became necessary to close the Valley Bank, and it was apparent that if a receivership resulted, a calamity to depositors and the people of the Valley would ensue, I considered it a duty to recommend delay, to the end that efforts toward reorgani zation might be exerted. Accordingly, I invited parties whom I regarded as likely to be interested in the reorganization and who could command sufficient resources to rehabilitate the institution. In all of this your committee was in thorough accord and heartily joined. It now appears that our efforts are, with your co-operation, about to be successful. The plan or reorganization has been approved by leading bankers of the state and others. The prospective purchasers of the Valley Bank represent some of the strongest financial interests in the United States. Their advent into this city will, in my opinion, prove a blessing to this Valley. amply compensating for the temporary delay you have experienced. I consider the plan presented as the very best that could be devised for the immediate relief and ultimate protection of the depositors. I congratulate the depositors upon what promises to avert the disaster of a receivership, and upon the patience, good sense, and genuine spirit of confidence at all times manifested,

10. December 14, 1914 Arizona Republican Phoenix, AZ
Article from Arizona Republican, December 14, 1914

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MOVE TO HELP THE TAXPAYERS Suggestion of Plan for Their Relief and at the Same Time Assist in the Reorganization of the Valley Bank (By C. B. WOOD) Today is the last day for the payment of taxes. Hundreds of taxpayers cannot meet their taxes because their money is in the Valley Bank. That this bank will be open in a week or two there is every reason to believe. The re-organization committee is bending every energy toward that end and it will ultimately be successful. Extension of time should be granted for the payment of taxes or rather the tax-collector should be allowed to accept Valley Bank checks in payment of same. This can be done and the tax-collector is willing to accept the same if the Board of Supervisors will give him a few days longer to make his settlement with the county. He would accept taxes all this week, date the same as if paid today, and would expect a little longer time of course to check his books and make his report. This has been done before when no such great need as now and should be done this year. Now as to Valley Bank checks: The re-organization committee is securing checks in order-partly-to give the re-organized bank an opportunity to open without having a run or having to sacrifice the assets on hand. In other words it keeps a large percentage of the deposits in the bank until these assets can be realized upon. If taxes were permitted to be paid by the means of Valley Bank checks the tax-collector would immediately re-deposit them in this bank as they would be protected by the bond given, and the re-organized bank would have another $100,000 to open on, and the new management would have the guarantee that this money would not be immediately checked out and they would have a very material sum to assist them in earrying out their plans. This would be not only a good thing for the bank, a boon to the taxpayers, but a present help in time of need to the whole valley. This can be done easily by a word from the Supervisors. It has been done before and should be done now. A majority of the Board succeed themselves. January 1st, Mr. McDonald, treasurer and tax-collector, succeeds himself and there is nothing needed but a little common sense and exercise of wise discretion. Mr. Macdonald is willing it is un to the

11. December 19, 1914 The Western Outlook Oakland, San Francisco, CA
Article from The Western Outlook, December 19, 1914

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S. Roberts died on Dec. 14th at the home of I. Smith. F. Rosser and P. Payne went 30 miles in the country to hunt. They were gone 48 hours, and all they bagged was one duck and a hawk. The bazaar and concert at the C.M.E. church under the management of Mrs. J. Wiggins and Miss Henderson was a big success. Mrs. Clarington's paper was well rendeted, and Mrs. Smith's solo ditto. Presiding Elder Z. Johnson held quarterly meeting at the C. M. E. church Sunday. The Tuskegee Students rendered some fine selections at the high school Saturday and at the A.M E. church and Indian school Sunday. Mr. Clarington of Fort Apache is in the city visiting relatives. The Valley bank's affairs are still tangled It is reported that It will go into the hands of a receiver this week. Phล“nix has ten theatres and moving picture shows, and no one should complain of being lonesome in our city. The K. P. ball last week was was well attended. Tne music was furnished by Johnson's orchestra. A. Lewis and wife entertained a jolly bunch on Dec. 14th at their home on West Apache street. Mrs. Clarington sang and played excellently. Burglars attempted to enter the residence of Frank Rosser recently, but were frightened away. Phoenix is in the north frigid zone. Ice formed in the gutters during the recent cold snap. Meharry medical college students were recently presented a message from Andrew Carnegie, the message being delivered by Dr. Pritchett of New York, president of the Carnegie foundation. Among other things he said: I bring greetings and a message to you from Mr. Carnegie. He asked me to say to you that your opportunity is great and your profession is noble in 80 far as you practice it in the interests of humanity, and not for the gratification of a seltish end." Continuing Dr. Pritchett called attention to the great European war, which he said is the outcome ef race hatred. You have an opportunity to de'hrone racial batred which surrounds you by means of the Christianity which we profess. Christianity, and not creed, is the hope of the races." Speaking of the Germans he said that they are the most religious nation in the world, having three religions, and from the first day a child enters school it is steeped in the doctrines and creeds of one of these religions, but along with it there is not that Christianity which is a soul passion to help

12. December 30, 1914 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, December 30, 1914

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PHOENIX BANK REOPENS. Largest Institution in Arizona Reorganized on Substantial Basis, Phoenix, Ariz., Dec. 30.-The Valley Bank, largest in Arizona, which was closed Nov. 10, will be reopened tomorrow with a new set of officers and directors, headed by E. M. Mills, of Miami; C. E. Moore, of Phoenix, and Dr. L. D. Ricketts, of Douglas. The bank had thousands of depositors. None lost a penny, and in celebration of the reopening they will give a parade Saturday followed by a "prosperity dinner." The state. bank examiner took charge Nov. 10, after a run, which the institution was unable to withstand and because of having a large amount of "sold assets." It had deposits of $2,225,000, but there was less than $30,000 on hand at the time it closed. In the reorganization just effected many of the larger depositors accepted stock and the bank reopens with more than $700,000 in cash and currency in its vaults.

13. December 30, 1914 The Evening Herald Albuquerque, NM
Article from The Evening Herald, December 30, 1914

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VALLEY BANK WILL OPEN TOMORROW AT PHOENIX Not a Penny Lost to Depositors Through Run Which Absorbed Liquid Assets of Institution. Phoehix Ariz. Dec. 30. -The Valley bank largest in Arizona which was closed November 10. will be reopened tomorrow with a new set of officers and directors headed by S. E. Mills of Miami, e E. Moore of Phoenix and Dr. L D. Ricketts of Douglas The bank had thousands of depositors None lost a penny and in celebration of the reopening they will give a parade Saturday followed by at "prosperity dinner The state bank examiner took charge of the Valley bank November 10. after a run which the Institution was unable to withstand because of having a large amount of "slow assets. It had a deposit account of $2,225,000 but there was less than $30,000 on hand as the time it closed In the reorganization just effected many of the larger depositors accepted stock and the bank will resume business with more than $700. 000 in cash and currency in its vaults

14. December 31, 1914 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, December 31, 1914

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Suspended Bank Will Reopen With Prosperity Dinner PHOENIX, Ariz., Dec. 30.-The Valley bank, largest in Arizona, which was closed November 10, will be reopened tomorrow with a new set of officers. and directors, headed by S. E. Mills of Miami, C. E. Moore of Pheonix and Dr. I D. Ricketts of Douglas. The bank had thousands of depositors. None lost a penny, and in celebration of the reopening they will give a parade Saturday followed by a "prosperity dinner." The state bank examiner took charge of the Valley bank November 10, after a run, which the institution was unable to withstand because of having a large amount of "slow assets." It had a deposit account of $2,225,000, but there was less than $30,000 on hand at the time it closed. In the reorganization just effected many of the larger depositors accepted stock, and the bank will resume business with more than $700,000 in cash and currency in its vaults.

15. January 1, 1915 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, January 1, 1915

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Our Want Adds Bring Results ALMOST PREPARED TO OPEN VALLEY BANK Doors Will Be Unlocked as Soon as Minor Preliminaries Are Finished. PHOENIX, Dec. 31.-The final negotiations looking to the opening of the new Valley Bank have been completed, and the doors of the new bank will open as soon as a few preliminaries are completed, and with ample capital and abundant resources. The depositors of the old bank will be able to withdraw their 75 percent of their deposits at once, should they so desire, although it seems certain that few of them will do SO. The Valley Bank Adjustment Company which will handle sufficient of the assets of the old organization to realize the remaining 25 percent of the deposits and the holdings of the directors and stockholders, except to declare an early dividend, and it seems probable that in the course of a few months every depositor will be able to realize the last penny of his deposit. To, no man is the success of the adjustment of the affairs of the Valley Bank of Phoenix more largely due than to State Auditor J. C. Callaghan Compelled by his oath of office to take charge of the bank, he exhibited throughout the long and delicate negotiations, a patience, skill and intimate knowledge of business affairs that shows beyond question his absolute fitness for the high position he occupies. At many a point a single error might have resulted in the throwing of the affairs of the bank into the hands of a receiver This would have meant great expense, long delays and ultimate loss. The state auditor realized these conditions and has acted throughout the negotiations with patience and forebearance worthy of the highest praise. Recognized on all sides as a faithful and competent official, he has added largely to his laurels and to his popularity by the manner in which he has handled this delicate situation. In his work in connection with mak n ing a satisfactory settlement of the business of the bank, Callaghan was very ably assisted by his assistant. J. B. Ormond.

16. January 1, 1915 Arizona Republican Phoenix, AZ
Article from Arizona Republican, January 1, 1915

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# Up to the County Treasurer If a member of the state tax commission was correctly quoted in The Republican yesterday morning, he had overlooked a provision of the law for the listing of property which had escaped the attention of the county assessor. It is a reasonable presumption that our tax laws contemplate that every property owner shall bear his full share of the burden of taxation. And it would be an outrageous presumption that any property owner might legally evade his share of the burden if he is sharp enough skillfully to conceal, for a time, his property from the attention of the assessor. The suspension of payment last November by the old Valley Bank disclosed that several citizens had on deposit large sums of money which they had not returned to the assessor and whose existence the assessor had no means of ascertaining. Among these deposits was one, something in excess of $26,000, which had not been returned to the assessor. At the time of its discovery the work of the assessor had been done, his books were closed and could not be reopened by him. The county board of equalization had also finished its work and could make no further changes in the tax roil. The tax commissioner said quite properly that the commission could do nothing in the premises, and he added this rather hopeless statement: "Any information relating to property not on the tax rolls should go properly to the assessor, not to the treasurer. The treasurer is merely empowered to collect the amount shown on the assessment rolls, and property not on that list does not properly come within his province. If the law is enforced in one case, it should be enforced in all." But the law very plainly empowers and directs the county treasurer to circumvent the schemes of those who may thus far have sequestered their property from the view of the assessor. According to Paragraph 4901 of the Revised Statutes: "When the county treasurer of any county, after the roll is committed to him, ascertains that any real estate, horses, mules, cattle, sheep, goats, swine or OTHER PERSONAL PROPERTY, then in his county, are omitted from the roll, and has reason to believe that such personal property has not been taxed in any other county for that year, he shall forthwith proceed to list and assess said property in the same manner that the assessor might have done, and shall enter such assessment on the roll, following the levies made and delivered to him by the board of supervisors, and such entries shall be designated as additional assessments; and the taxes so levied and assessed by the county treasurer shall be as valid for all purposes as if the assessment

17. March 27, 1917 Arizona Republican Phoenix, AZ
Article from Arizona Republican, March 27, 1917

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JAMES GILLEN James J. Gillen, who for the past six years has been prominently identified with the development of the state of Arizona. passed away yesterday morning at 8 o'clock at St. Joseph's hospital. Mr. Gillen has been seriously ill for the past several months, and a few days ago it became apparent that death was but a question of time. For the past year or SO Mr. Gillen had been assistant cashier of the Valley bank Coming to Arizona about six years ago, Mr. Gillen entered the employ of the Southern Arizona Bank & Trust company at Tucson. He remained there until 1913, when he was appointed state bank examiner by State Auditor J. C. Callaghan. When the old Valley bank suspended business, Mr. Gillen was put in charge, remaining as assistant cashier when it was taken over by a new group of bankers. Mr. Gillen had a notable record in banking for one of his age. He was formerly connected with the Contimnental-Commercial bank of Chicago, one of the greatest and strongest banks of this country. Mrs. Gillen was Miss Lillian Koch, formerly of Chicago and Tucson. They were married on June of 1915 He was 31 years old and is survived by a wife and small son. The funeral will be held tomorrow morning at 8 o'clock from St. Marv's church, burial being in the Catholic cemetery.

18. January 9, 1918 Arizona Republican Phoenix, AZ
Article from Arizona Republican, January 9, 1918

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examined tion. after they they had found minutely that assets un- to the assets; of nearly $900,000 difficult were to the amount either slow and This condesirable wholly worthless. the obhandle, or as to the character of contrary clusion, assets, was quite notion bejectionable popular notion; that "slow," but to the that they were simply coming good. The depositors' efforts to ingenerally persisting in their of promittee bankers, a plan terest cedure, these acceptable to all concerned, finally worked out. was provided for the organiza- to be This plan entirely new bank, mention of an the wealthy men just leading owned by joined by some of the bank to tioned, of Phoenix, the new (instead citizens of Valley bank the have the Valley name Bank of Phoenix" and to of "The the failed institution), of half name of cash capital, paid bank in, to buy have a dollars: the new bank a million assests of the suspended full. and all the its depositors in all the and to to pay another corporation the new to sell the old bank which for assets should of consider undesirable of this arbank A condition of it to retain. was that the depostors of the rangement bank and the directors projected the old should form the was to old purchasing bank corporation, The Valley which Bank Adjust- was be known company. as This corporation of the assets ment to buy old and bank pay as for the such new bank These might unof the undesirable to keep. listed, had deem desirable assets, as $869,000, finally and they face value of the Adjustment a to be sold to their net cost were for precisely $562,000. The company which was value of to the bank, between the face they difference and the price at which by the the assets purchased was represented failed bank, were and surplus of the as a loss 4 capital sum was to be figured the old bank. which stockholders of needed sum of to the raise the which How to the final problem depositors. $562,000 was the committee of character confronted most familiar with the to be pur$ Those of the assets of which the opinion were that the ultimate chased were yield $212,000, therefrom together. should be possi- ap- acthe interest which bly, with that sum during the it was upon period, be some of proximately crue liquidation-which necessarily should period realized, would prospective owners of The that, sell- the years. bank agreed, therefore, $562,000, new undesirable assets for for repaying the would grant long time of the they of $212,000; the remainder in cash or ment price to be paid of $350,purchase This remainder the Adits equivalent. be the capital of that 000 was to company. It was agreed invited to justment should be directors the depositors for $200,000, and subscribe the for subscribe bank should to of the old the depositors, however, Adjustment $150,000. preferred stock in the of the old have and the directors which a company have common stock: reat bank to that if the depositors stock ever they S meant, on their holdt would lized anything get dividends ahead of the h e ers of common was stock. carried out. The their diThis plan of the old bank gave mortgage rectors notes, secured by aggregate separate collateral, in the to the Ade or other $150,000. executed turn enK sum of company, which in notes to justment and guaranteed the up this f dorsed bank. To make the old the new President Bennett of Cashier e f bank $150,000. contributed contributed $37,500: $37,500. and the the $12,500. Christy directors each contributed is the S other six "Contribution" and a sum of word, for these officers miracle, f directors to knew that, barring the a common 3. d their of the Adjustment The camd stock proper subscriptions loss. company old e would with prove the a total depositors of An the and paign equally successful. having n o alysis bank was of the list of been depositors decided that if been made, invited it has to subscribe one-fourth the all of were their deposits in the old bank.

19. March 11, 1921 Mohave County Miner and Our Mineral Wealth Kingman, AZ
Article from Mohave County Miner and Our Mineral Wealth, March 11, 1921

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# BANK WANTS ADDRESSES The Valley Bank Adjustment company, which is settling up the affairs of the old Valley Bank, of Phoenix, wants to get in touch with the following depositors, there being some money due to each: Chong Lee, Charles Purtyman and M. E. Trout, all having lived in Kingman at the time of making the deposit. If anyone knows the address of these parties they will confer a favor on them by sending it to Sims Ely, receiver.

20. April 1, 1921 The Coconino Sun Flagstaff, AZ
Article from The Coconino Sun, April 1, 1921

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BANK RUSHERS SHAMED WHEN THEY FAIL TO BUST BANKS AT PHOENIX The tip of the tail end of the bank run passed yesterday a little before noon with a slight flicking, and after that all trace of the insanity of the day before vanished, leaving a feeling of greater confidence in Phoenix than had prevailed since the first rumors of the weakness of some of the smaller banks of the city and vicinity were circulated several weeks ago. It was demonstrated to the satisfaction of even the fearful that the banks now doing business are unbreakable. At the hour of opening, The National Bank of Arizona, The Valley Bank, The Phoenix National and The Phoenix Savings Bank and Trust company were quickly filled. The throng was composed in part of a large number of business men who had come to make deposits, in accordance with the spirit of the mass meeting at the Chamber of Commerce the night before. But in the crowd were many who had come to continue the run of the afternoon before, and those of the latter class could be distinguished by the shamefacedness with which they entered the doors.-Phoenix Republican.

21. April 1, 1921 The Holbrook News Holbrook, AZ
Article from The Holbrook News, April 1, 1921

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BANK RUSHERS SHAMED WHEN THEY FAIL TO BUST BANKS AT PHOENIX The tip of the tail end of the bank run passed yesterday a little before noon with a slight flicking, and after that all trace of the insanity of the day before vanished, leaving a feeling of greater confidence in Phoenix than had prevailed since the first rumors of the weakness of some of the smaller banks of the city and vicinity were circulated several weeks ago. It was demonstrated to the satisfaction of even the fearful that the banks now doing business are unbreakable. At the hour of opening, The National Bank of Arizona, The Valley Bank, The Phoenix National and The Phoenix Savings Bank and Trust company were quickly filled. The throng was composed in part of a large number of business men who had come to make deposits, in accordance with the spirit of the mass meeting at the Chamber of Commerce the night before. But in the crowd were many who had come to continue the run of the afternoon before, and those of the latter class could be distinguished by the shamefacedness with which they entered the doors.-Phoenix Republican.

22. May 13, 1921 Arizona Republican Phoenix, AZ
Article from Arizona Republican, May 13, 1921

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but the precise amount cannot 1 predicted in advance. The assets which remain to be disposed of are in the main worthless; but there are a few items on which it is expected something may be realized. After reserving such assets as are known to have some value and on which collection may be made within the next few months, the remaining assets (of large face value but of no actual value and quite generally worthless) will be offered for sale in bulk. Any sum realized therefrom will necessarily be small. The depositors of the old Valley bank ("Valley Bank of Phoenix") who with fine public spirit and good business sense organized The Valley Bank Adjustment company and thereby saved the greater part of their deposits, deserve congratulation on this outcome, At the outset they got in cash 75 per cent of their deposits. An additional sum of approximately 5 per cent was returned to them almost immediately; and now. with the dividend of today and the final disbursement to be made later, their loss is extremely small in comparison with what it would have been had they failed to organize the adjustment company. The alternative would have been a receivership; and under a receivership the depositors would have sustained a heavy loss. Some 2,500 depositors of the old bank joined in forming the adjustment company, and while most of them thoroughly understood the purposes and details of the plan. it is apparent that some of them did not understand, and do not now understand it. It seems worth while. therefore, to state clearly just what was done to save the situation. The depositors who took part in the preliminary investigation quickly found that the failure was a bad one. The one step to take to prevent it from becoming a disastrous failure was to effect some form of reorganization of the failed bank. A very wealthy group of men who already owned other banks in Arizona, which banks were strong and prosperous. were approached with requests to look into the affairs of the failed bank with a view to taking it over and reopening it for business. These bankers made a careful analysis of the assets and liabilities of the failed concern. They reached the conclusion that of the assets of the failed bank there were notes, stocks, etc., of a face value of $869,000, which they would refuse to take into the proposed new bank. In their opinion there might be realized, in time, from this $869,000 as much as $212,000. The remainder of this $869,000 would, in their best judgement, be a total loss. The whole sum of $869,000 had to be provided for, however, inasmuch as it was proposed that these wealthy bankers would organize a new bank (The Valley Bank of today) and pay In full the liabilities of the failed bank. It was decided by the committee of depositors and the bankers with whom they were negotiating, that payment of the $869,000 would be made in the following manner: The capital and surplus of the old