ae2237f1Public signal of financial health, Capital injected, Full suspension
Other: Depositors formed the Valley Bank Adjustment Company to reorganize and recover most deposits; receiver Sims Ely handled remaining claims.
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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.
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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.
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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.
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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