670. Commercial Bank (Parker, AZ)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: June 11, 1917
Location: Parker, Arizona (34.150, -114.289)

Metadata

Model: gpt-5-mini
Short Digest: faffa496

Response Measures

None

Description

The Commercial Bank suspended/failed on June 11, 1917 due to insolvency from large illiquid loans and equities (loans to president's building enterprises and mining loans). An adjustment company was organized to liquidate assets and avoid a receivership. There is mention a run was 'threatened' but no clear standalone run event prior to suspension; the institution remained closed and was liquidated via the adjustment company, so classification is suspension_closure. OCR errors in articles corrected (e.g., dates and names consolidated).

Events (2)

1. June 11, 1917 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Insolvency caused by overinvestment in local building enterprises and large loans on mining property and other doubtful securities (president O. M. Spence's loans and equities), plus lax banking methods; bank was short on currency and considered insolvent on June 11; threatened run noted but principal issue was insolvency from bad loans/equities. (Articles cite June 11 suspension/closure.)
Newspaper Excerpt: the Commercial Bank, which failed on June 11
Source: newspapers

2. August 6, 1917 Other

Newspaper Excerpt: A number of creditors have combined in the organization of an adjustment company that is to take over the assets and will assist in reopening the bank, to keep it from a receivership. Under this plan it is believed the losses to depositors will be small. Articles of incorporation of the Commercial Bank of Parker Adjustment company were filed ... The new company ... to liquidate the affairs of that institution, which suspended June 11. (Adjustment company organized to liquidate affairs and avoid receiver.)
Source: newspapers

Newspaper Articles (12)

1. June 23, 1917 The Parker Post Parker, AZ

Article from The Parker Post, June 23, 1917

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Plan of Liquidation. The plan consists of organizing a holding company to take over the assets and liabilities of the Commercial Bank, similar to that put into effect by the depositors of the Valley Bank of Phoenix, when it failed a few years ago. The new Parker State Bank proposes to loan the holding company at once $25,000, which amount will be used in paying a 40 per cent dividend to the depositors of the Commercial Bank. For this loan the new bank will be given $40,000 worth of good securities as collateral. These securities, as well as other securities held by the holding company, will be collected by the new bank free of charge, except in cases where expenses are incurred for traveling or for attorney's and other expenses necessary to enforce collection. Before the organization of the proposed holding company it will be necessary for each and every depositor to sign a waiver, authorizing the plan of liquidation. As soon as this has been completed a meeting of the depositors will be called for the selection of a board of five directors among the depositors, who will have full authority to wind up the affairs of the old bank. This plan prevents the institution going into the hands of a receiver, and saves several thousand dollars of unnecessary expenses. While the bank examiner, Mr. Ross, refused to give out a statement of the Commercial Bank's condition for publication, The Post is able to give its approximate condition at the time It closed its doors. It is known that the assets consists of about $80,000 in loans, $5,500 in cash, and whatever the old banking furniture and fixtures may bring, probably about $1,000. According to statements made by Bank Examiner Ross there are about $40,000 worth of good securities, and $40,000 of other securities not so good. Of the latter

2. June 23, 1917 The Parker Post Parker, AZ

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class of securities about two-thirds are considered questionable. According to these figures there are about $59,000 in assets, including cash on hand, which are considered worth par. The deposits total about $62,500. so it will be seen that the depositors by careful business management on the part of the directors of the holding company will probably receive 95 or 100 cents on the dollar, depending upon the amount that can be collected from what is supposed to be doubtful securities. Included in the assets are the new hotel, the new garage, and a residence recently constructed by O. M. Spence on A street, opposite the garage. Mr. Spence, president of the Commercial Bank, has deeded all of this property to the Commercial Bank, his equity in which is estimated around $12,000. The cause of the failure of the Commercial Bank was the various building enterprises undertaken by O. M. Spence, two large loans made on mining property and for the purchase of mining claims, and the lax methods used by the state banking department. It is also alleged that securities of a questionable character from another bank are included among the doubtful assets. However, great credit must be given Mr. Spence for his several public enterprises, which, in the case of the new hotel, when completed, will be of inestimable value to the whole community. The great mistake he made was in loaning too much of the bank's money, and in not providing for the usual summer withdrawals by shaving down loans. However he is confident of saving his equity in the new hotel and garage, and intends to make every effort toward helping realize sufficient money on the securities of the bank to pay off the depositors dollar for dollar. Mr. Spence voluntarily offered to deed everything he possessed to the bank in order to swell the securities and insure payment in full. It is presumed the holding company will make arrangements for the completion of the hotel.

3. July 7, 1917 The Parker Post Parker, AZ

Article from The Parker Post, July 7, 1917

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ORGANIZATION OF DEPOSITORS MEETING HELD MONDAY NIGHT AND TEMPORARY ORGANIZATION OF DEPOSITORS HARMONOUSLY PERFECTED. A meeting of the depositors of the defunct Commercial Bank was held at Hosfelt's Airdome Theater last Monday night and was largely atof the tended. to The purpose meeting was perfect a temporary organizaBank company. The officers ment tion of the Commercial selected Adjustfor the temporary organization were: J. B. Flanagan, chairman, and Chas. Detrick, secretary. Almost perfect harmony prevailed at the meeting, and it was decided most work at to the present that the be accomplished important by depositors was the assignment of to the their deposits proposed adjustment company. It was reported that a very large percentage of the depositors had already signed waivers of their account, and for the the of of securing signatures purpose those present who had not had an opporup, a recess was , during tunity to which sign taken, interval every depositwho had not waivers, viously or in the signed audience, came forward preand affixed their signatures to the made out in waivers their name. The following committee, whose duty it is to sign up all those who have not already assigned their accounts, was appointed the A. Marsh, Chas. man: G. by Detrick, chair- B. B. Brown, B. M. Fuqua and J. F. Colcommittee is now lins. in This engaged corresponding with out-of-town and urging their proposed to depositors, ance of the plan liquidate acceptthe Commercial Bank. A sent in their these have already number of waivers, properly signed, and it is every will up within a few be believed signed that depositor days. A motion was made and carried to the effect that all proxies must be given to some depositor in the deif a to funct be represented bank, depositor desires at the meetings of the temporary organization. was that no one dealso decided except It positors shall have a right the at any of the of the floor meetings to depositors, except upon express invitation. The next meeting of the depositors will be held Monday 9, same at which at the place, evening, time July it is expected business of importance will come before the temporary organization. It is expected that articles of incorporation will be filed before the corporation commission or just as next few days, within soon the as every depositor has signed his waiver. as a of As the soon stockholders thereafter possible meetin the adjustment company will be called for the by-laws. and ing pose five of adopting elect- purdirectors to manage the new of fairs these of the corporation. Four afdirectors will be elected by common latthe by the preferred stockholders, stockholders, and the one ter class of stock being held by the stockholders of the Commercial Bank. It is rumored that there will be plenty of candidates for the directorate, several having Intention of nounced their already getting ana place on the board if business men, number also of possible. who are A large depositors, are mentioned any four of would for directors, whom make excellent officers of the new corporation. it is believed While that the election of directors will be quite spirited it is not anticipated that there will be any ill feeling contest, as it seems be out the of general the to grow belief that any four of the depositors who are will up of the old winding the directorate candidates conduct the for a fairs in satisfactory bank's manner af- to every depositor. The new Parker State Bank will needate be

4. July 21, 1917 The Parker Post Parker, AZ

Article from The Parker Post, July 21, 1917

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TIME LIMIT ON ADJUSTMENT CO DEPOSITORS MUST COMPLETE ORGANIZATION BY AUGUST 1ST OR RECEIVER WILL BE. APPOINTED. Depositors and creditors of the Commercial Bank, which failed on June 11, will not receive the anticiper cent dividend as ised upon the pated 40 organization of prom- the Parker State Bank for the reason that there isn't going to be a Parker State Bank, for the present, at least. a of the of held last At defunct meeting institution, depositors Monday the night, it developed that P. K. of Bank of the Central Phoenix, Lewis, had here. decided not to establish a bank was to This depositors information conveyed Wolfe the by C. H. of Phoenix, who represented Mr. Lewis. also read a condition of the ComMr. the mercial supposed Wolfe statement of Bank, and the value which he placed upon the securities. Since Mr. Wolf's visit here it has that the was incorrect been read by ascertained him statement as to several important items. Chief of these was which he of securities $54,000 the value worth placed upon and equities in securities held by other banks to secure loans. While 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. a After listening to Mr. Wolfe motion to the effect that the ors with the of Bank of the proceed Commercial organization Parker deposit- AdJustment company, despite the fact that there is to be no new bank and no guarantee of an immediate 40 per was J. B. passed. cent The dividend, chairman unanimously Flanagan, was instructed to wire to proceed with the state permission banking department, asking pro- the posed adjustment company. This wire was sent the same evening. A committee of five was elected to take charge of organizing the adjustment company. This committee of the B. Brown, Dr. E. Litconsists tlefield, Raney, B. following: J. A. F. Charles Detrick and J. B. Flanagan. J. B. Flanagan made a trip to Phoenix to T. Attorney General State Boyce Bank and Wednesday Comptroller confer Jesse Wiley with E. Jones over matters pertaining to the proposed organization of the adjustment company. As the of have owing to the decision the changed proposed organization plans of been Mr. Lewis not to establish a it is necessary to at the present. approval bank secure here 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 general's office instructthat the given until the organization. complete would ed Mr. be Flanagan August depositors Circular 1st to letters, explaining the change of plan, have been printed and are beto every creditor of A form of the letter, which funct accompanies ing sent bank. approval the must debe signed and returned to the Commercial Bank of Parker Adjustment company at once if a receivership is to be averted. About 35 per cent of the assets of the Commercial Bank consist of equities in the new hotel building and other real estate and improvein equities in banks to given ments, to and other secure securities loans. The parties who hold these who gages and and the and creditors material hold labor securities mort- liens above-mentioned at once foreclose in of the a erty against the event will the appointment same prop- of receiver. This action on their part would practically wipe out the depositors' equities and result in loss to of $25,000. the depositors approximately a in addition to the extra cost the Bank entalled the Commercial in liquidating by means affairs of of a receivership and through the courts. There is a tremendous amount of work involved in securing the assent over depositors and creditors of defunct bank to this of of liquidation, the 400 plan as many of the creditors of Parker, and no record can be at instances reside outside obtained in many present of their proper addresses.

5. July 28, 1917 The Parker Post Parker, AZ

Article from The Parker Post, July 28, 1917

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CO-OPERATION IS NECESSARY SUCCESS OF ORGANIZING ADJUSTMENT COMPANY RESTS SOLELY WITH CREDITORS OF DEFUNCT BANK. The organization of the Commercial Bank of Parker Adjustment company seems assured, and unleas some unforeseen difficulties arise the consent of every creditor of the Commercial Bank will be received by August 1st, the time limit which the bank comptroller and attorney general has given the depositors to perfect the organigation. Another meeting of depositors was held Monday evening. The principal business transacted at this meeting was the approval of the plan for the disposition of the garage business of the Parker Auto company. Permission was granted the auto company to dispose of its stock on hand by turning in to the bank all of its accounts receivable, amounting to $1350. It looks very favorable, when the final report of the bank's condition is made up, that the assets will exceed its liabilities by several thousand dollars, and while there is bound to be some loss through inability to collect all outstanding notes, this deficiency will no doubt be made up in accumulated interest on the good securities and the income that will accrue upon the comof the new pletion hotel building, and and the rental of the garage other buildings. Of course this statement is contingent upon the organization of an adjustment company. In the event of a receivership there would undoubtedly be a considerable shrinkage in the assets of the bank. Therefore, it is imperative that every effort should be made by the depositors to organize the adjustment company. With the proper co-operation of the Commercial Bank officials and the successful organization of the adjustment company, The Post feels confident that the depositors will receive nearly dollar for dollar eventually. This statement is made after a very careful compilation of figures comprising the known assets and liabilities. However,few depositors or creditors of the defunct bank realize the great work which confronts the men who have charge of perfecting the organization of the adjustment company, and the difficult work that faces the directors of the adjustment company in the event of its successful organization. Co-operation on the part of each and every creditor is essential at this time. Everyone wielding hammers should lay them aside for the present, and join hands with those who are trying to save the situation. There is a time for everything, and the present time should be devoted to saving everything possible for the depositors. The best interests of the community demand the organization of the adjustment company, and anyone placing obstacles against such organization 18 working against his own town's best interests.

6. July 28, 1917 The Parker Post Parker, AZ

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ACCUSED ARE BOUND OVER COMMERCIAL BANK OFFICIALS CHARGED WITH RECEIVING DEPOSITS AFTER THEY KNEW BANK WAS INSOLVENT Complaints were sworn out last against O. M. Fuller F Frederick M. Saturday and Spence. Hail, charg- R. H. of the refor the ceiving ing each deposits defendants Commercial bank with Bank, knowing that such was at the time insolvent the complaining deposits were tendered. The witnesses were Walter Nelson and Charles Detrick. The preliminary examination of and was the same day. Messrs. 4 o'clock Spence Hall The held com- at was not served on Mr. Fuller in plaint until Monday, Phoenix, for where the past he has been seriously ill Mr. Fuller's has not as ary few examination weeks. prelimin- yet been held owing to his illness. County Attorney Wupperman was in town Saturday and it was at his that the The evidence issued. instance only complaints presented the were prethe county attorney at hearing in proof was an liminary bank's by insolvency of unpaid and the check issued by Walter Nelson, a letter from the Valley Bank of Phoenix, stating that the check was sent from that bank to the Commercial Bank on June 6, and later returned the bank examiner unpaid. bank closed on of the conJune As the by prosecuting attorney the 11th tended at the hearing that the fact that the Nelson check was not paid was sufficient proof that the bank was insolvent on that date. Chas. Detrick, W. W. Dunbar, Mrs. Moll and Walter Nelson testified that each of them made deposits on June 11th. The defendants contended that the solvency or insolvency of the bank was a matter of fact, and that in of the books of bank the county the the absence and could attorney's records not contention of insolvency be sustained. Mrs. Gladys Beck testified that as an employe of the bank and so far as she knew of the books the bank was solvent, although she admitted that on June 11 the bank was short on currency, and that the currency to a Phoenix until the sent arrive for following bank morning. did not The bank closed, she said, because run was threatened the following day. O. M. Spence contended that he was outside of the state on the date the bank closed, and for several to its quoted county weeks previous attorney closing. Paragraph The 27 of the Criminal Code, which provides that all persons who advise and encourage the commission of a even though not are in any so principals crime, crime present, committed. However, there was no evithe that Spence or showing dence offered by encouraged prosecution advised the taking of deposits as charged in the complaints. Mr. Hall stated that on June 11 he assisted at the window while Mr Fuller was away on bank business; that it was the first time he did so since Mr. Fuller had been cashier of the bank, and that so far as he knew the books showed the bank to be solvent when they were last balanced. At the conclusion of the hearing the local justice of the peace stated that after hearing the report of the bank's condition as read by Mr. Wolf of Phoenix at a meeting of the depositors the previous Monday evening, "which made the cold chills down my back," he was conthe bank's bad vinced in run a very that condition. affairs The 1.j.p. were further stated that he would bind over the defendants for trial before the superior court, where legal talent greater than he possessed would decide their guilt or innocence, and that if the defendants were innocent they would be discharged. Bonds for Mr. Spence were set at $10,000, and Mr. Hall at $5,000, at the dictation of the county attorney. These bonds, the defendants contended, were excessive, and out of all reason for the offense charged. Later, with the consent of the county attorney, the court placed the bonds

7. August 4, 1917 Arizona Republican Phoenix, AZ

Article from Arizona Republican, August 4, 1917

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WOULD ADJUST BANK AFFAIRS Hon. J. B. Flanagan, of Parker, representative from Yuma county in the second state dlegislature is in the city perfecting arrangements for the organization of a bank adjustment company to take over the affairs of the recently suspended Commercial bank of Parker. These arrangements have been all but formally completed by securing the consent of the creuitors of the bank. The plan is similar to that under which the Valley Bank Adjustment company of this city was formed. The failure of the Commercial bank was occasioned by transforming too much of the assets of the bank into the form of equities, the result of too great zeal in furthering the prosperity of the region of Parker.. The investments were good and safe ones but the bank was not strong enough to carry them. Some of the enterprises in which the funds were invested will have to be completed and arrangements must be made to take up securities deposited by the bank with other banks. In the opinion of Mr. Flanagan the bank will pay the depositors dollar for dollar.

8. August 5, 1917 Arizona Republican Phoenix, AZ

Article from Arizona Republican, August 5, 1917

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20, Mesa; William Sutterlin, 28, Phoe- 34, kins, and Mariah Hadsell, and nix; Phoenix, Ferdnan A. Jacobs, 29, Tempe, Irene B. Allen, 21, Tempe. PRO-CATHEDRAL-Sun o'clock TRINITY will be held at 9:45 Proday at the Trinity serthis Holy communion be at 11 o'clock. J. Jenkins will mon Cathedral. school morning will preach. Archdeacon and PEACHES R. FOR CHARITY-The would apCrittenden Home and Florence donations of peaches of the preciate fruit. The management the great other that owing to home the cost of living nature are especially OF has approved increase of APPROVAL this says general in SURVEY-The sur- donations desirable. mineral Wonveyor No. 3340, Baldwin, Big No. survey Compton, Hawk and Wonder in the der, mining claims, situated Mohave, 2 lode Francisco mining district, and San owned by the Jerome-Oatman MINCORPORATING-Article company. of Bank incorporation of the Commercial Parker to Adjustment company of the afabout an adjustment Commercial of bring of the suspended difairs will be filed tomorrow. The F. rectors bank, of the company will be J. Rainey, D. B. Brown, A. H. Litt!cfield, The H. Hosfeld, and Frank Ewing. stockholders C. of the company comprise practically all the depositors and hold cred- a of the bank. They will itors meeting on the first Monday of September. GAUGHAN BACK-W. H. (Billy) Gaughan, Manager of Ford Soda Shop. returned yesterday from an extended trip east-including Pittsburg, where Mrs. he visited with his mother. Gaughan and the twin boys will remain in the east until late in September. RIDGE-TO Mr. and Mrs. Benjamin Ridge, Friday, August 3, 1917, a F. son weighing 9 pounds. Mrs. Ridge remembered as She and her will Bianchi. be baby Miss getting are Nel at 0 St. Joseph's hospital and are 0 along nicely. Mr. Ridge is representaO tive of the Kansas City Life Insurance 0 4 company. NUMBER 32-No. 32 of the master was omitted from the list 0 as in The 0 draft published list Republican yester- due day morning. The omission was to carbon paper. The sheriff made a 1. copy of the list for The Republican high and one sheet the carbon was not on to make an impression of No. 32 is for draft enough 32. No. No. Lewis 5034, the owner of which number is J. Townsley, postoffice box 1331, Phoenix. WILL RETURN-With the underthat he retuurn to at Naco, Ashley N. standing regiment the Ste given Arizona riede, charged with forgery, was a 9 suspended sentence of two years by 6 Judge Stanford in the superior court Stelriede 0 y, yesterday. guilty changed and his said plea from not to guilty he would like to join the army. This bele ing agreed to the suspended sentence followed. J. E. VAN ANTWERP-W has come that John E. Van Antwerp, not e, heard from for 18 years by his family is believed in this section and if he or e, anyone knowing him reads this, the re quest is made to communicate at once e with his sister, Mrs. Florence Dillon R. F. D. No. 2, box 838, San Gabriel California, as his mother is dying. e. WEEKLY DEMONSTRATION-The demonstration on canning and will be given weekly preserving Tuesday 9:00 o'clock morn1 ing at the High School at wi instead of Friday morning. This ] be the last of the canning demonstra e tions given under the auspices of the 1woman's auxiliary. ORDERS FOR SURVEYS-The sur has issued it for the survey of providing veyor general order the No. Illinois 2421 Virginia, Tennessee and Binghamton Fraction lodes, situated in the Agua sFria mining district, Yavapai county rand owned by the Arizona Binghamton order No. 2422, proto for the survey of Copper viding company; the Black sit rSpring fraction lode mining claim, ruated in the Wallapai mining district S. Mohave county, and owned by the le Schuylkill Mining company; also order No. 3423, providing for the survey o the Aqua Prieta lode mining claim the Warren rt situated in mining by district Charles Cochise county, and owned tW. Rambo.

9. August 6, 1917 El Paso Herald El Paso, TX

Article from El Paso Herald, August 6, 1917

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THREE ARE HELD IN PARKER BANK CASE; MAY BE REOPENED Parker, Ariz., Aug. 6.-Criminal proceedings have been started by county attorney Wupperman against manager O. M. Spence. R. H. Fuller and Frederick M. Hall of the closed Commercial bank of Parker, on a charge that they had received deposits after thy knew of the bank's insolvency. Spence has been held in $5000 bail and the others in lesser sums. Mr. Spence pleaded that he was absent from the state at the time of the insolvency. A number of creditors have combined in the organization of an adjustment company that is to take over the assets and will assist in reopening the bank, to keep it from a receivership. Under this plan it is believed the losses to depositors will be small.

10. August 11, 1917 The Parker Post Parker, AZ

Article from The Parker Post, August 11, 1917

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a meeting in Brown's new pool hall Monday evening, and Chairman the Flanagan explained in detail result of his work in While he admitted using own judgment in naming a September 3, he explained under circumstances he was compelled to make a quick in the for the reason it was to file the of immediately upon the the plans by comptroller and the general, in view of the the company's matter necessary danger attorney approval decision the temporary that Phoenix. his articles that of of bank the the withdrawal of one or two largest creditors. At any time before these articles were filed one or two of the largest creditors could legally withdraw their consent, which meant that the bank comptroller would not approve of the formation of the adjustment company. There were other reasons why delay would be dangerous to the the company, and upon explaining these various reasons, the meeting unanimously adopted a motion endorsing Mr Flanagan's action throughout. Boyce Deserves Great Credit. Bank Comptroller Jesse L. Boyce will arrive in Parker Friday night, and will formally turn over all of the assets of the defunct Commercial Bank to the adjustment company's directors the following day. Mr. Boyce will leave Saturday night for the coast on his annual vacation. Great credit is due Mr. Boyce in averting a receivership for the defunct bank. He is one of the most courteous and accommodating officials of the state, and his handling of the affairs of the defunct bank has met the approval of every depositor and creditor. Attorney General Jones also showed great liberality by consenting to an adjustment company instead of asking the court for a receiver. Both are confident that an adjustment company will realize more out of the assets of the defunct bank than a receiver could possibly accomplish. Resources Exceed Liabilities. Next week this paper hopes to publish the official statement of the bank's present condition, as gotten up by the state banking department. However, we are in a position to give the approximate resources and liabilities of the bank. The total resources amount to $129,726.38, and the the total liabilities, exclusive of paid up capital stock of the Commercial Bank and two items which cannot be considered a legal liability against the bank, aggregate $107,748.82, showing excess resources amounting to $21,977.38. There is a good chance that the resouces will be increased about $7,000, which the banking department gives no credit the in the statement from which above figures were taken. Will Complete New Hotel. The adjustment company has already taken steps toward raising the of necessary funds for the payment the various material and labor liens outstanding against the hotel and other buildings. As soon as these arrangements have been perfected steps will be taken to secure sufficient funds to complete the hotel building. The large equities in securities held by other banks for loans and to secure overdrafts will be protected as soon as possible. There is much work ahead for the directors of the company, and every depositor should lend his assistance wherever possible. Criticism, having no foundation in fact, isn't going to be of much assistance to the officers of the company. In order to accomplish the best results it is necesary that harmony should prevail among the stockholders, and the quicker this is realized the better it will be for the depositors.

11. August 11, 1917 The Parker Post Parker, AZ

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ADJUSTMENT COMPANY FORMED FOR LIQUIDATING AFFAIRS OF COMMERCIAL BANK After several weeks of strenuous a meeting in Brown's new pool hall Monday evening, and Chairman work in securing the consent of the Flanagan explained in detail the depositors and creditors of the Comresult of his work in Phoenix. mercial Bank for the organization While he admitted using his own of the Commercial Bank of Parker judgment in naming a temporary Adjustment company, the plans of September 3, he explained that under the circumstances he was comthe adjustment company and its articles of incorporation were approved pelled to make a quick decision in the matter for the reason that it last Saturday afternoon by Bank Comptroller Jesse L. Boyce and At was necessary to file the articles torney General Wiley E. Jones, and immediately upon the approval of the articles of incorporation were the company's plans by the bank filed before the corporation commiscomptroller and the attorney gension the same day. eral, in view of the danger of the J. B. Flanagan. chairman of the withdrawal of one or two of the depositors' organization, left last largest creditors. At any time before these articles were filed one or Wednesday for Phoenix to represent the interests of the adjustment comtwo of the largest creditors could pany before the banking department. legally withdraw their consent, During the three days that it it took which meant that the bank compto bring maters to a head, the organtroller would not approve of the forization of an adjustment company mation of the adjustment company. for the liquidation of the affairs of There were other reasons why delay the defunct Commercial Bank was at would be dangerous to the the comno time certain(in fact, it was very pany, and upon explaining these much in doubt) until about one various reasons, the meeting unanio'clock Saturday afternoon, at which monsly adopted a motion endorsing time, behind locked doors in the Mr. Flanagan's action throughout. bank comptroller's office, Messrs. Boyce Deserves Great Credit. Boyce, Jones and Flanagan finally agreed upon the plans for the organBank Comptroller Jesse L. Boyce ization of the company, the two will arrive in Parker Friday night, former state officials giving their apand will formally turn over all of the proval to the proposed method of assets of the defunct Commerliquidation. cial Bank to the adjustment company's directors the following day. Depositors Approve Plan. Mr. Boyce will leave Saturday night When the news reached Parker for the coast on his annual vacation. Saturday evening that the adjustGreat credit is due Mr. Boyce in ment company was at least an assuraverting a receivership for the deed fact, every depositor of the bank funct bank. He is one of the most greeted the announcement with apcourteous and accommodating offiproval, realizing that a large percials of the state, and his handling centage of the bank's equities could of the affairs of the defunct bank be saved by this means of liquidahas met the approval of every depostion, which otherwise, under a reitor and creditor. Attorney General ceivership, would be lost to the credJones also showed great liberality itors of the bank. by consenting to an adjustment The capital stock of the new corcompany instead of asking the court poration is $115,000, divided into for a receiver. Both are confident 115,000 shares of the par value of that an adjustment company will $1.00 each; the capital stock conrealize more out of the assets of the sists of 105,000 shares of preferred defunct bank than a receiver could stock, and 10,000 shares of common possibly accomplish. stock. The preferred stock will be issued to the depositors and creditors Resources Exceed Liabilities. of the Commercial Bank, and the Next week this paper hopes to common stock will be issued to the publish the official statement of the stockholders of the Commercial bank's present condition, as gotten Bank. up by the state banking department. As soon as the assets of the ComHowever, we are in a position to mercial Bank can be turned into give the approximate resources and cash the proceeds will be distributed liabilities of the bank. The total reas follows: First, to the depositors sources amount to $129,726.38, and of the Commercial Bank, who are the the total liabilities, exclusive of the preferred stockholders of the corporpaid up capital stock of the Commeration; second, to the stockholders of cial Bank and two items which canthe said Commercial Bank, who are not be considered a legal liability the common stockholders; provided against the bank, aggregate that no disbursements shall be made $107,748.82, showing excess reto the holders of common stock until sources amounting to $21,all of the preferred stock shall have 977.38. There is a good chance been retired. be that the resouces will increased about $7,000, which the Temporary Board Named. mizroa anadit

12. August 11, 1917 The Arizona Copper Camp Ray, AZ

Article from The Arizona Copper Camp, August 11, 1917

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ADJUSTMENT CO. FOR PARKER BANK PHOENIX, Ariz., Aug. 6.-Articles of incorporation of the Commercial Bank of Parker Adjustment company were filed yesterday with the Arizona corporation commission. The new company has been organized by depositors of the Commercial Bank of Parker to liquidate the affairs of that institution, which suspended June 11. The directors of the adjustment company as named in the articles of incorporation are: J. F. Raney, D. B. Brown, A. H. Littlefield, Frank Ewing and C. H. Hosfeld. The stockwill meet holders of the corporatio Sept. 3 'to elect officers._ Formation of an adjustment company which was 'requested by between 80 and 100 per cent of the stockholders was recommended to State Bank Comptroller Boyle by Attorney General Jones as a means of obtaining a greater return for the depositors than if a receiver was appointed for the institution.