The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-29
THE COMPROMISE TERMS
OFFER REPORTED MADE BY THE
kRAG-REYNOLDs COMPANY.
First Mortgage indebtedness Expect
ed to He Reduced to $4,000
The Unsecured Creditors.

The attorneys having in charge the affairs
of the Krag- Reynolds Company the in
solvent wholesale grocers, it is understood,
have submitted a proposition to the credi-
tors looking to compromise. A number of
conferences have been held in the last week
and 1t is now claimed settlement of some
character will have been reached by the
nrst OF the coming week. Unless the COM
promise is accepted by the creditors within
the next few days, the Circuit Court will
order the investigation of the firms affairs
to proceed under oath.
AS to the claims of those secured under
the first mortgage given by the Krag-Rey-
noids Company, the grocery firm has offered
10 pay them off dollar for dollar If the
mortgage Is reduced to $4,000. Until few
days ago the Indebtedness under the first
mortgage was in round numbers, as fol-
lows: Indiana National Bank, $25, 900; Capt.
tai National Bank, $4,000; First National
Bank of Chicago, $1,000; Nicholas McCarty
Harrison, $4,000; Nicholas McCarty, $1,000;
Harrie N. Reynolds, $25 900; "Opens; Smith
& Weman, of New York $1,000. This in
debtedness aggregated $122,9 A week ago
Nicholas McCarty Harrison came forward
and surrendered all claim under the mort
gage He held the company's paper for pre-
ferred stock he had surrendered some time
before the failure. Some of the attorneys
say that Harrie N. Reynolds, who holds
notes for $4,000, is in a similar position and
it is expected he will also waive all claim
under the mortgage Should Mr.. Reynolds
take this step, the Indebtedness under the
first mortgage will be reduced to a figure
slightly in excess of $4,000.
In paying off the first mortgage indebted
ness dollar for dollar, the members of the
Krag-Reynolds Company expect to raise
something like $4,000 cash from outside
sources. To this sum will be added Sl5 600
of cash which the receiver holds. The total,
amounting to $55 coo, will be applied on the
nrst mortgage debt, which will reduce it to
$zO,OVJ IL is then proposed to dispose of the
stock, appraised at $76 900, in the companys
store and collect the outstanding accounts,
the appraised value of which amounts to
$4,000 Out of the cash realized the balance
on the claims under the first mortgage will
be paid, and the remaining sum, $125 900, di-
vided among the creditors under the second
mortgage and the unsecured creditors The
Indebtedness under tho second mortgage is
$4,000. This amount is due New York
tbdse there Is taik s Of settlement with
However, the banks are demanding larger
figure, but may decide to accept this
amount The unsecured merchandise indebt-
edness amounts to something over $1,000.
The attorneys for the Krag- Reynolds firm
hope TO see their way clear to pay this class
obstacles to this kind of a settlement how
ever, is the. fact that replevin suits involv-
ing about $4,000 are now pending against
the company. These litigants, with hope
of winning their suits, may object to accept
ing half that is due them and refuse to CON
sent to a compromise.
Next Wednesday Judge Harvey is to pass
on the petition of the receiver to be permit
ted to sell the stock of which he still has
charge. 1t is expected an official announce
ment relating to the compromise will be
made public by Tuesday