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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.
