New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-09-28
ClAFLN GIVES
ALL TO CREDITORS
Merchant Sacrifices Fort
une and Home to Help
RehabiIltate Stores.
TO HAVE NO PART
IN REORGANIZATION
Complete Management OF busi'
ness To Be In Hands of
Outsiders.

Three features stand out prominently
IN the reorganization plans Of the cred
itors Of the II. B. ClsAin Company
which was officially given out last
night. The details have already been
printed In The Tribune.
These three are;
The elimination Of Mr.. Claim from
any participation in the reorganization
! Of the concern 70 which be has devoted
his life. The turning over to the cred"
itors by Mr.. ClaAin Of all Of his per
sonal assets, which include not alone
/ Ris holdings IN various drygoods cor
poratiOns and his bank stock but his
horne at Morristown, N. j., and his
summer home in the Adirondaeks as
well. The revelation that each one OF
The twenty-three Claim retaN sVoLes
eeattered throughout the country. was
having business until Mr.. Claim
loaded them down with notes, the pro-
eesds Of which were used FOR other
purposes than the needs OF the stores
Endorsing them.
n was whispered yesterday that Mr..
Cladin tried hard to have . part IN the
REORGANIZATION Of the concern, with
what success can best be judged by
the statement Of James S. Alexander,
chairman Of the noteholders' commit
zee, to the effect that It lie distinctly 9
creditors reorganization plan, in that
they will have complete charge Of the
MANAGEMENT Of the business. They
will receive 10 per cent In cash and
SIS per cent in three-year collateral
arust notes.
Five Trustees Hold Stock.
This will be done through FIVE trus-
tees, who will hold all the stock Of the
new Mercantile Stores Company and
name its directors until all debts have
been paid. They are James s Alexans
der, president of the National Bank OF
Commerce in New York; Ernest A.
Hamill, president Of the Corn Ex-
change National Bank Of Chicago; |
Philip Stockton, president Of the Old |
Colony Trust Company Of Boston; |
John W. T. Nichols, of Minot, Hooper
& Co.. New York, and Henry W. Howe,
of Lawrence & Co., New York.
The Mercantile Stores Company will /
operate the twenty-three retail stores
and will hold the stock Of the H. 3.
Claim Corporation, which will be Or-
gained to take over the wholesale and .
ness practically without any indebted
ness.
The reorganization plan has been
approved by various committees Of
creditors representing S30,000,OOO, APP
proximately, Of the outstanding claims
Of S40,500,000 against the II. B. Clahin
Company After various details have
been worked out the plan will be pre-
scented to the court for approval. This
will be in about a month. The creditors
who have not yet assented to the plan
will be given until October 26\to do so.
II was expected that Edwin Baker,
chairman Of the general creditors COM
Inittee, would be trustee, but he pre-
ferred q more active part and will be-
come one of the directors of the
Mercantile Stores Corporation.
James S Alexander, president of the
National Bank of Commerce and chair
man of the noteholders' committee,
gave a concise statement yesterday Of
the plan and the hopes Of the creditors
OF the Clafin company. He said:
at provides, in the unanimous judg-
ment of the committee, a means by
which the equities of the various cred
ttors can be preserved. The plan has
been approved by the general creditors
committee and the committee of the
Creditors Audit and Adjustment Asso-
citation, and their hearty cooperation
has been particularly helpful in enab-
ling the committee to present the plan
at this time. More than two-thirds of
the outstanding notes have already
been deposited with the committee, and |
the committee expects, now that tho |
reorganization plan has been submit
ted, that the undeposited notes will be |
promptly sent to a designated deposit |
tory, that the owners thereof may par
tieipste In the benefits Of the plan.
Free Hand In Reorganization.
"The reorganization Is TO be dis
tinctly q creditoFs' reorganization, in
70 that representatives of the creditors
are 70 have the naming Of the direct
ors Of all the companies and complete
charge of the management Of the bust
ness. Officers or directors will be
under no Obligation express or i'm
piled, 10 any former officers or direct
oEs."
Edwin H. Baker, chairman Of the
general creditors committee, and
Holmes J. Corbett, president Of the
Creditors Audit and Adjustment
Company, also issued statements APP
proving the plan for their clients.
In addition TO owning the stock Of
the II. B. Clahin Corporation and hold
ing the stock Of the twenty-three re-
NHll hLOTGb 4uE luG BCuCAb VI INC llul-
vidual noteholders, the Mercantile
stores Corporation will also own &c.
26s,000 par value Of United Dry Goods
Companies common capital stock all
Of the capital stock Of the Wilkes
Barre Dry Goods Company, Wilkes
Barre, Penn; MacCallum & Cloutier
Mercantile Company, Anaconda, Mont;
MeCreery & Co, Pittsburgh; 100000
par value of the common capital stock
OF the Higbee Company, Cleveland,
Ohio; S2,29O,000 of the capital stock
(SisT, 900 second preferred and S2,103,-
$50 eommon) Of Scruggs- Vandervoort-
Barney Dry Goods Company, St. Louis,
Mo-, and other stocks and properties
which will not be pledged to secure
any series Of notes.
John Clahin has transferred to rep
resentstives of the noteholders' COM
mittee, as trustees, to be delivered to
the Mercantile Stores Corporation if
and when the plan Of reorganizst on
IS declared effective, assets and claims
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