St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-06-14
VERY CLOSE TO The WALL.
The Firm of Shotwell, Clerihew & 10th
man Embarrassed.
CREDITORS MEETING CALLED
Slow Collections at Rome and Accounts
Due in the East Cause the
Trouble.

The large wholesale dry goods and
cloth firm of ShotweIl, Clerihew & 10th
man has suspended payment.
The announcement made yesterday
afternoon created considerable surprise
and more comment. about the city. 1t had
been the general opinion that the firm
was one of the solid jobbing institutions
of Minneapolis, and the mercantile re-
ports had always placed its credit and
rank very high. At this time no specific
statement of the firms condition can be
made, though it is said arrangements
may be made by which the trouble can
be tided over and the collapse averted.
MIR. ShOtwell, the senior member Of the
firm, is now in New York arranging its
financial affairs, and the first intimation
yesterday. Mr.. Clerihew and Mr.. 10th
the situation was so desperate
until the receipt of this dis
patch. Both claim that they
are unable as well as unwilling to make
any public statement until the arrival
of MIR. ShOtwell, but meeting of the
creditors has been called to consider
the situation and take action. The
senior member is expected home to-day
with his stock of information, and the
creditors meeting will be held later.
The cause of the trouble is believed to
be primarily the inability to collect out
standing accounts. The firms business
very largely consists of the manufacture
of overalls, rough shirts and jumpers,
the raw material of which comes from
the East. The cost of work is cash, as
we'll c EaCfarp hills hnt tho accounts of
customers have generally been carried,
so that it has been with the firm a
constant outlay. without the CORE
spending cash receipts. If the assets
were available they would probably
more than meet the liabilities. The
firm has also carried a very heavy stock,
which could only slowly be converted
into cash. The books show heavy ac-
counts due the firm from Northwestern
customers, which must necessarily be
carried over until fall, or perhaps next
year.
One of the points of interest in con-
nectiOn with the suspension is the fact
that the firm had been bOycotted on ac-
girls, the particulars of which are still
fresh in the public mlnd Mr.. Clerihew
now claims that the boycott was in no
way responsible for the present en-
balrassment, and that the sales for May,
1888, were in excess of the sales for the
same period last year. The firm had
its own way in the matter of
the strike, refusing to concede to the
girls the restoration of lost falls prices,
or to submit the matter to arbitration.
The boycott has now been in force for
three weeks, and, the labor organiZa-
tons claim, has cut off many orders;
but, on the other hand, the firm claims
its business has not suffered i'll the
least, and that most of the striking
girls have been taken back at the firm S
own terms.
The firm of Shotwell, Clerihew &
Lothman has been in Minneapolis for
about four years and enjoyed fine
business reputation. A. NJ. Clerihew
has for two years been president of the
Jobbers' union and has also been chief
of the Caledonian club. The feeling in
business circles, last night, was the
hope that arrangements might be made
with Eastern creditors by which a sus-
pension might be averted.