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High Point, N.C., March 5, 1932
To the Creditors of:
Mutual Investment Co., General Holding Corp., Greensboro Tobacco Market Corp., Union Holding Co., J. Elwood Cox, C. M. Hauser, V. A. J. Idol and R. R. Ragan, all of High Point, North Carolina: -
Gentlemen:
The undersigned Committee beg to submit their report as follows:
We ask your attention to the enclosed detailed statements covering the affairs of R. R. Ragan. Full reports on all the other companies and individuals will be presented at the next creditors' meeting.
We have spent ten days investigating the affairs of all of the foregoing and all values placed on stocks and real estate we consider fiar under present conditions, but not that cash sales could be made now. When conditions improve, we believe our values can be realized. Our belief is that two to three years will be necessary to work these affairs out to the best advantage of the creditors.
We find that R. R. Ragan is carrying life insurance payable to estate and relatives in the amount of $398,000. We also find that certain corporations carry insurance on his life, payable to them as follows:
Beeson Hardward Company, $143,000 Ragan Knitting Company, 125,000 Commonwealth Hosiery Mills, 50,000 $318,000
We recommend that the insurance carried by him payable to estate and relatives be cancelled for the cash surrender value.
Your Committee finds that the unsecured debts total $905,141.58: the secured debts $165,314, and taxes, fire insurance, repairs, etc., about $12,000 per year. After a full investigation of the possible income of Mr. Ragan from salaries, dividends, rents, etc., we realize that it is impossible for him to pay 6% interest on all the indebtedness, plus taxes, fire insurance, repairs, etc. therefore, we recommend that the unsecured creditors in the amount of $905,141.58 accept interest at the rate of 3% per annum for the first year of the proposed working agreement.
We recommend the dissolution of the Mutual Investment Co. and the deedingt of all their properties to R. R. Ragan provided terms can be arranged on certain mortgagtes to make it possible for said R. R. Ragan to carry and pay for same.
We ask your attention to a letter from Clifford Frazier, Esq., Attorney for J. Elwood Cox, dated March 3, 1932, in which a tentative proposition is made to surrender the new home place for the benefit of Mr. Cox's creditors. We are satisfied that with the appointment of a permanent Committee, with power to make a binding agreement, a much better proposition can be secured from Mr. Cox.
Your Committee finds that in case of an assessment on the stock of the Commercial National Bank, the parties involved and the amount of assessment will be as follows:
J. Elwood Cox, 660 shares, $66,000.00 R. R. Ragan, 450 " 45,000.00 C. M. Hauser, 275 " 27,500.00 $138,500.00
It will be absolutely necessary for the Receiver of the Commercial National Bank to treat such possible assessments as other unsecured claims, and not place liens or secure judgments against the parties involved. Any liens or judgments would defeat the object of the Creditors' Committee in their efforts to work out the problems confronting them.
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Your Committee is unable to present a definite proposition now from C.M. Hauser, but we feel that Mr. Hauser will submit a satisfactory proposition to the creditors and we will have same ready for your consideration at the next meeting.
We further recommend that a permanent committee be appointed by the creditors, with such powers as the creditors may give them, with the idea of co-operating with Mr. Ragan in working out the affairs of all parties concerned.
We hereby call a meeting of the creditors of all the first named Corporations and individuals to be held in the Sheraton Hotel, High Point, North Carolina, on Thursday, March 10th, 1932, at 3:00 P.M.
Respectfully submitted,
J.T. Hedrick
R.H. Hauser
R.H. Wheeler
COMMITTEE -