Thomas A. Nixon to Clarence Darrow, August 29, 1923
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Attorney and Counselor at Law
Coronado Building
Greeley, Colorado
August 29th, 1923.
Mr. Clarence Darrow,
140 North Dearborn St.,
Chicago, Ill.
Dear Sir:
In conversation with Judge Jacobs, it was intimated that you might become interested in acquiring The Northern Bank & Trust Company of this city.
As a stockholder and director of the bank for the last year, I have become more or less familiar with the bank and its future possibilities. As a result of my investigation both in the bank and in regard to local conditions, I am firmly of the opinion that there is not only a good field for a bank but that the time is ripe and the opportunity excellent for re-organizing the bank and making it a prosperous and flourishing institution. The past few years have been decidedly unfavorable to stock men and farmers. Under such conditions as have existed this bank, as well as other banks, has suffered losses, however at the present time markets seem to have become stabilized, and farm products, with the exception of wheat, have become established in price so that farming, stock raising and stock feeding have again become profitable. It seems that the turn of events towards prosperity has come to this vicinity and with its return on the present basis of loaning and discounting the banking business ought to return to its former status.
All banks in this community have heretofore paid good and substantial dividends until the last two or three years when the slump occurred in the value of securities held by them. However, the re-adjustment has taken place and the banks are largely upon the basis of reduced values of such securities.
It will require something over $25000.00 to replace the paper of doubtful value in the bank, but when such paper is taken from the bank and replaced by cash the institution will be upon a firm and sound basis. With this replacement made the bank ought to go forward and become one of the substantial institutions of the town. In order to do so, it would be my conception that all stock should be acquired by a new management, a new board of directors selected with new officers, and a substantial man familiar with the conditions in Greeley placed in charge of the institution.
This could be done in several different ways, which I will not burden you with at this time, further than to say that it would be possible to deliver all stock to a purchaser of the
Mr. Clarence Darrow August 29th, 1923.
bank. If such an arrangement could be made it would be my idea to acquire the stock and quietly resell same to the younger, active, substantial business men of the city. This would require the placing in the bank of $50,000.00, but by assuring these business men the possibilities of the bank and further assuring them that they would acquire one dollar of investment for each dollar placed in the bank, I am of the opinion that we would have no difficulty in placing $25,000.00 of the $50,000.00 in Greeley, leaving a balance of $25,000.00 to be placed in the institution by some person who would hold the controlling part of the bank.
I am writing to you to suggest that you and Paul take over the re-organization of this institution. By so doing, in my opinion, you will receive a dollar of absolute good investment for every dollar placed in the institution with the additional possibility and probability that when the bank is placed upon a firm basis there would be a bonus value to the bank and that the bank would rapidly advance and acquire a surplus on the investment.
If Paul could be induced to accept the presidency of the bank and if you could be induced to participate in its re-organization I am satisfied that we could immediately put the institution in a position where it would not only be a sound success financially, but it would be a credit to you and to Paul to be connected with it. I have not spoken to Paul about the matter, as I first decided to communicate with you to ascertain whether or not you would consider this proposition. If you will consider same I will be glad to submit to you methods and figures on the proposition which I would regard as being a proper basis for re-organization and at the same time would like to take the matter up with Paul with the view to interesting him in the possibilities of the bank and to secure his interest in a re-organization thereof. This would not have to be done immediately, but should be done at an early date in order to acquire the benefits of the returns of the fall crops of this community.
Yours very truly,
TAN/I
Thomas a. Nixon