New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-01
RudoRs IN REGARD TO A GREAT HOUSE.

THEIR SUSPENSION - CONSULTATION BETWEEN
THE FIBM AND PROMINENT BANKERS
To verify or disprove the rumos 50 easily started
was not an easy task, but every effort was made to
obtain authentic information in relation to
the matters 80 freely canvassed through
out the street. The = first rumOr OF
prominence was that which related to a large dry
goods house This rumor which has been in crcula-
ton for several DAYS has been steadily ignored
by The TRIBUNE as being intended for
the purpose of pandering to an unhealthy
excitement, or a stock Obbing end. Yesterday,
however. the matter took such shape that it was
deemed advisable to permit the members of the firm
10 set at rest rumors which were working so greatly
TO their own detrimont and that of the rest
of the mercantile community II was alleged that
the firm # IL. Is. CIafin q CO., one of the two great
est dry goods houses this continent, was embar-
rassed and that unless they received large amount
of money they would be compelled to suspend.
Accordingly TRIBUNE reporter sought Messrs H.
D. Claiin & Co. for the purpose of aScertainng the
exact condition of affairs, and upon inquiry of
junior member of the tTn was informed that the ru-
moTs were without foundation. Their house,
as could be seen, had not suspended. and contem-
plated no such movement. There were, he said, no
notes of theirs in circulation, and their Indebtedness
was confined TO Endorsements on their customers
payer all of which would be speedily met. Whatever
tle result III was ipoSSlDlS
could occur other than a mere matter of time They
had met promptly all their open accounts until yes
terday when other houses had failed to pay for the
past two weeks and in fact they the only
house in the city said he, that had met all their
open accounts up TO the time mentioned.
Negotiations were then pending by which they
could meet all their indebtedness and in a day or
two pay all their old accounts.
A friend Of the firm of Clahin & Co. connected
with large Boston jobbing house sent, yesterday,
the following dispatch TO his house III Boston
Deny officially in your paper to appear tomorrow
morning that ClaAn has gone to protest. Arrange
ments are in progress TO give him all temporary aid
required. He has simply taken time on some open
accounts maturing now, as the trade is generally
doing"
These statements, when generally known were
not so reassurng the street desired for there was
an implication that the firm was IA the same posi-
ton as the Spragues with plenty Of assets and
limited liabilities, but in want OF ready
money, which is regarded as an essen
tial to operations of such magnitude as theirs.
As it was asserted by the member OF the firm, and
rs was generally known throughout the business
community. the firm had none of its own paper
out, but had indorsed the paper of their
customers where they could without recourse
where practicable OF simply iDdoTsed it, and were
responsible when it could not be done other
wise. Thus a large quantity OF tins paper
had accumulated in the hands of bankers
and capitalists in New-YOrk. and through
out the country who were therefore directly inter
csted in the welfare of the firm. Asamatter OF
course, much of this paper had lodged in the wall
st. banks, and the rumors in relation to
Cla1in & Co. were of special interest TO
those known as mercantile banks rs distinguished
from brokers' banks pumber Of Broadway banks
were also interested. Early in the day official init
nations of the troubles likely to Cypress the firm bad
beeo conveyed TO those most interested, in
Guiding number of dry goods com
mission merchants and bank presidents, in
whose institutions the firm OF Clatln O. co.
deposited and the Presidents composing the Clear
inghouse Committe. These gentlemen convened
in the bank parlOrs Of the Central National Bank.
corner of Broadway and Pearl-st, about p. IN.
Horace B. Clafn, the senior member of the firm,
was present and in brief statement detailed the
position of his house. its necessities and its ability
10 meet all engagements if it received the tenn
porary accommodation which 1T asked lie
then resumed his scat and replied
TO the inquiries which the different officials made.
His statement. although in detail, embraced the
general declaration that his necessities arose
from their open accounts and not from any paper
which they had outstanding. He then retired to the
front Office while the bank officers proceeded TO dis
cuss the position OF his hIm ana the measures WHICH
they could OF should take to relieve its necessities
After the lapse of considerable time the meeting
adiourued and John Z. Williams, President of the
METROPOLITAN National Bank. went forward in the
darkened bank and privately informed Mr..
CIafin Of the conclusion at which they
had arrived. Soon afterward the meeting adjourned
and Messrs. Happen of the Gallatin, Coo OF the
American Exchange, Wheelock and Bliss OF the
Central National Banks, and Manager Camp OF the
Clearing house emerged in couples from the parlor.
Mr. Tappen and Manager Camp, while passing
through the bank, were accosted for a moment,
but they were exceedingly retcent and declared
that they coud not impart any information for pub
location at present.
As the Central National Bank was one Of the
principal repositories Of the firm Of II. ID. Clahn,
jTRIBUNE reporter sought Vice-President Bliss Of
THAT institution and Intercepted him as 10 the rela
aions of the firm TO the bank. Mr. Bliss was very
reluctant 20 impart any information concerning
the matter under discussion, but in response to
repeated inquiries said that II. b. Clafn d Co.
were simply in arrears some open accounts
which were on their books. BY open accounts he
meant accounts on which they had made purchases
ct 30 days credit more or less and had given no
obligations in the shape of notes. The hrIn were
Simply Dispositions with the bank, and 1t had dis
counted ITS paper. There need tbe no appre-
henson on account Of the Central National
Bank, it would meet all its Obligations 10 tul