New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-31
CLAFLIN FIRM PLANS.
MAY ISSUE MORE STOCK.
associated Merchants Said To Be
after Br0ad1caY House.

The Associated Merchants Company, which is
the Clafn drygOods combination, is about to in
crease its second preferred stock by an additional
issue of S3O0OOOO This will give the company
a total capitalization of $25OOOOOO divided as
follows: Ten million dollars > per cent cumula-
tive first preferred of which $7250O0O has been
issued: S5,UOOOOO e Per cent cumulative second
preferred and S5CUOUOO common. on which dv-
cends are now being paid at the rate Of per
cent The first preferred carries the privilege of
conversion into either second preferred or COM
mon stock The circular sent to the stockhod-
ers in regard to the contemplated issue says:
Al the annual meeting of this company. to be
held on April Is, 1906 at l2:;5U O'Clock D. m al
the Once OF the company, No. 100 Main street.
hartford Conn, proposition to increase the
second preferred stock from S5,UGO.UOu To $40
OUouo, and TO authorize the directors to sell the
same for cash at not less than par. will be
Several negotiations are pending for the pur-
chase OF new properties. If a large negotiation
should eventuate, the liberal amount of cash
held by the company would not nearly suffice
to pay the purchase price. 1t is the sense of the
directors that an issue of second preferred stock
AT the present time may be more advantageous
10 the company than an issue Of first preferred
stock inasmuch the second preferred stock
has not the privilege of conversion into common
STOCK which the first preferred enjoys. More
over. the proceeds Of the first preferred stock
cannot be used to pay for the goodwill Of any
business, and i'm an important purchase now con-
templated a substantial payment for good Will
would ha necessary.
The statement about a large negotiation in
the circular is believed refer to the purpose
Of the company to acquire control Of we'll
known Broadway house, but what store it is is
still somewhat Of mystery. 1t has been
ported for some time that the Clahin company
has been trying TO buy a controlling interest in
Lord & Taylor and it is said that as high as
SloU q share has been offered for the control.
This, II is understood, is a renewal Of the at
tempt which was made to buy Lord & Taylor
when the Associated Merchants Company was
formed At that time it the purpose to
make Lord & Taylor the parent company and
use its name for the combination An officer
OF the Lord & Taylor corporation said yesterday,
however that controlling interest in the com
pany was not for sale i'm any circumstances.
The firm Of Arnold Constable & Co has also
been persistently connected with the TumOIS
that the Clatn company seeking a Broad
way house, and there has been well defined
report that control of that house had been
bought and that the announcement would be
made in few days. A member Of the firm Of
Arnold, Constable & Co said yesterday that
there truth in the report that the AsSO-
ciated Merchants Company was to have con-
troll Of the firm.
The Associated Merchants Company now con-
trolls the II. 3. Clafin Company. James Nc
Creery s. Co. the Adams DryEoods Company. G.
G. Gunther's Sons. Hahne & Co. of Newark;
McCreery & Co. Of Pittsburg; J. \. Adams &
Co, Of Buffalo and Stewart & Co. of Baltimore.
John Clafin is president of the company