The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-08-01

In Superior Court Three to-
day, the way was paved for
realization of McCray's &mbi-
tion when Judge w. O. Dun
lazy approved negotiations for
sale of the Orchard Lake farm
and two others, of $40 acres, to
new organization to be known
as the Orchard Lake Realty
Company, of which McCray is
to be president.
The plan submitted by the re-
ceiver, Lemuel H. Trotter, of Indi-
annapolis, and approved by Judge
Dunlavy, further provides for OF
ganization of the McCray Land and
Cattle Company, likewise headed by
McCray, which will operate the
farms under lease from the holding
company.
Friends Accept Notes
Friends and acquaintances of the
former Governor facilitated accom-
plishment of the project by agreeing
to accept $4,000 notes of the Nc
Cray Land and Cattle Company in
dorsed by McCray, drawing per
cent interest, payable annually, ana
secured by common stock of the
Orchard Lake Realty Company as
collateral.
One hundred thousand dollars of
the issue has been subscribed and
the remainder will be put out later,
If required. The notes are to be
payable in five years, prepayment
to be made from time to time out
Of 40 per cent of the net profits of
the annual operations.
Helped by Friends
From sums subscribed by Nc
Cray'S friends, the Orchard Lake
Realty Company will pay $4,000 in
cash and issue 100000 in preferred
stock, maturing in years, with
5la per cent divit Ids, payable
semi-annually.
There will be no preferred stock
maturities within ten years, except
ing as they may be paid from a
sinking fund provided by setting
aside each year so per cent of the
net profits, after payment of a sal
airy of $4,000 a year to McCray as
manager.
The other 100000 raised among
McCray's friends will comprise q
working fund for operation of the
farm and for the purchase of work
stock, implements, cattle, hogs and
other livestock.
VIII Pay Dividends
The lease to the McCray Land
and Cattle Company will provide
rental sufficient to pay the pre-
ferred stock dividends of 5h per
cent on $30O,OO0, according to the
plan, taxes, insurance, etc, and in
addition, go per cent of the net
profits of the leasing company. The
remainder (40 per cent? of the net
profits of the leasing company, Nc
Cray proposes to use in prepaying
the notes given for the loans. total
ing $4,000, except such part as the
note-holders agree should be added
to working capital and livestock.
Under the plan, McCray believes
that the farm can be made to pro-
duce an average annual revenue of
approximately 100000 for a net
gain OF approximately $35,00o.
Clear Up Old Debts
The plan, if successful. eventually
will clear up the $380,00O remaining
from the $650000 pre-
ferred stock issue which McCray. as
the Warren T. McCray Realty Com
pany, incorporated in 1920, negoti-
ated in that year.
This issue, on approximately 6 500
acres of Indiana lands, was Nc
Cray'S effort to stave off the finan-
cial crash which he says was p.o-
voked by the general defiation that
occurred in farm lands, farm COM
modities and its allied industries
when the Federal Reserve Board. in
the spring Of 1920, forced farmers
and cattlemen to sell their lands
and livestock for what they could
get
1T never was my intention to
wrong or defraud anybody" McCray