New-York tribune., 1901-04-10
DRYGOODS UNION A FACT.
ASSOCIATED MERCHANTS COMPANY IN
CORPORATED IN CONNECTICUT.
CAPITAL. s2oooOOoo H. r CLAFLIN AND
ADAMS DRY GOODS COMPANIES AND
JAMES MCREERY & co. INCLUDED.

The rumors Of a projected consolidation OF
department stores in this city were confirmed
yesterday. when announcement was made Of the
incorporation in Connecticut of the Associated
Merchants Company. with capital of S20Wn,
600 The new corporation which has been
formed by John Clafin. and is 70 he financed
by ]. Z. Morgan & Co. has acquired 40op1 Of
the 10000 shares Of stock Of the III. y. Clahin
Company 10000 OF the 1900 shares Of pre-
ferred and 6. 900 Of the 1900 shares Of common
stock OF the Adams Dry Goods Company. oc
cupylng the block between Twenty-hrst and
Twenty second SITS. in Sixth-ave., and the busi-
ness Of James McCreery & Co. OF Twenty-third
ST. including merchandise. goodwill. leasehold
and working capital
The stock of the Associated Merchants Com
pany is divided into 81 0O0 900 common. $1,000
600 = per cent cumulative first preferred and
$4,000 900 6 per cent cumulative second pre-
ferred: the first preferred being convertible at
the pleasure Of the holder into second preferred
or common stock.
In a letter to J. p. Morgan & Co Mr ClaHin
says that tho common and second preferred
stocks and the proceeds Of 100000 Of the first
preferred have been applied to the acquisition OF
the Clafn and Adams companies and the Nc
Creery business. and that the proceeds Of the re-
naming ST000,00O Of the first preferred stock
will be used 10 purchase at cash value tangible
assets and securities representing tangible as
sets Of other profitable going drygoods busi-
nesses in various large cities Of the United
States. and to provide ample working capital so
that the Associated Merchants Company may
transact business on a cash basis practically
without debt.
All the businesses bought. or 10 be bought Mr.
Cahn says, are well established concerns whose
earning power is already demonstrated. thus
assuring immediate dividends upon all classes
OF stock Of the Associated Merchants Company;
and he adds that IL the stockholders desire
he will be. and for least five years will CON
tinue TO be. the president Of the corporation
as well as of the H. b. Clafn Company.
]. p Morgan e Co. offer, subject to sale.
S5000O00 Of the first preferred stock Of the As
sociated Merchants Company at par Subscrip-
tiOns. application for which viii be received un-
til April IL, inclusive must be made payable as
follows: 81 per cent on acceptance thereof and
allotment of the stock Of April Il. 1901: and
the remaining 80 per cent on July II. with the
right. the part of the subscriber al his pleas
ure, 10 prepay In full the amount of his accept
ed subscription. Interest to July II. from the
several dates Of payment, at the rate Of : per
cent year will be paid upon the amounts paid
in prior TO that date on the subscriptions for
shares ]. r Morgan & Co offer and recon-
mend this first preferred stock as a mercantile
investment Of the highest class.
Mr.. Claf1in in conference with representa-
tives OF j. =. Morgan & Co. late Yesterday af-
ternoon, and sent out word that he had nothing
10 add to the foregoing statement.