davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26

The mercantile house of H. B. Claflin
& Co., for many years one Of the best
known in America, may be traced to
rural general store" at Milford, Mass,
a century ago, which was conducted by
John Claflin, farmer and village JUS
tice Of the peace. His son, Horace Brig
ham Clafin, was clerk in that store,
and upon his fathers death, in 1881,
succeeded to the proprietorship.
With that as a foundation he opened
another store the next year at Worces-
ter. devoted wholly to drygoods, and IN
1898 he came to New York to repeat the
process. Here he Joined William f.
Buckley in organizing the importing
and wholesale drygoods house OF Bulk
ley & ClaAin, in Cedar st. Seven years
later. in 1850, the firm removed to 81
Broadway.
Mr.. Bulkley withdrew in 1851 and the
firm became Clafin, Mellen d Co. IN
1853 it occupied the Trinity Building,
at III Broadway, and then, in 1861, es-
tablished itself in the then gigantic
warehouse in Worth ST., extending
from Church st. TO West Broadway,
which for q generation was one of the
show buildings and landmarks of the
metropolis.
The outbreak of the Civil War Ge-
prived the firm OF its enormous South
ern trade and drove it almost to bank
ruptcy. An extension of time oil obll-
cations was obtained, however. and all
liabilities were fully discharged, with
interest, long before maturity.
Then, in 1854, recognized as II. B.
Claflin & Co.. the concern entered upon
a career of marvellous prosperity. For
many years II was the largest house Ct
its kind in the world, with yearly sales
approximating $100,000,000. Mr. Claim
was resident Of Brooklyn and men,
Der of Plymouth Church; an earnest
Republican in politics and man OF
generous but discriminating philan-
thropy.
He was noted for his readiness to
aid beginners in trade with credit and
money until they were able to sustain
themselves. In the great panic OF 1873
he was forced to throw himself upon
the lenience Of his creditors, which
was ungrudgingly granted TO him. he
soon regained solvency and settled ell
accounts in full, with interest.
H. B. Clafin died in November, 1885,
leaving a will which directed that the
bulk of his estate should remain in
the business for only five years, or
until the death of his son, John Claim,
if the latter should die within five
years, after which the business was to
be ended and the proceeds divided
among the residuary legatees.
Accordingly in May, 1890, the old
firm was dissolved. but the business
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26

On Tuesday the situation became
desperate, but there was hope until
late Wednesday afternoon, when, after
many conferences, the bankers decided
that the load would be too big for them
70 carry, particularly as there seemed
to be no end to the amount OF relief
that it would be necessary to extend.
The affairs of other Claflin enter
prises were also looked over. The
United Dry Goods Companies were
found to be in wholesomely sound
condition, with no paper out. The same
was found TO be true Of the Associated
Merchants Company.
Yesterday morning a meeting of
bankers, who had been considering the
affairs of the ClaAin company, was held
at the offices of the National Bank of
Commerce, with James S. Alexander,
president Of the bank. The condition
the bankers found facing them called
for united action to protect the hun
dreds of banks holding paper of the
Clafiin company, and it was decided to
form a noteholders' committee TO look
after the interests of all.
II was estimated that at least 1900
institutions held notes Endorsed by the
company. The committee issued a for
NAL statement and then arranged 10
meet again this morning, when it is
expected that bankers from other cit
les will be here 20 join in the work,
and a subcommittee Of mercantile
creditors will be ready to cooperate.
During the day there were many in
formal conferences, and last night
these conferences were continued at
uptown clubs and at some Of the
hotels.
For the noteholders' committee this
statement was issued:
"The appointment of receivers Of the
II. B. Claim Company renders It of the
utmost Importance that the holders OF
notes Endorsed by the II. B. Ciahin
Company should promptly unite for
their mutual protection. To. that end
the following have consented to serve
as a committee:
"James S. Alexander, president OF
the Nationsl Bank Of Commerce, as
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
SELLING HEAVY ON
CLAFLIN FAILURE
Break in Railroads, and Espe-
cially Industrials, Follows
News of ReceiyerShip.

Official announcement yesterday
morning that receivers had been ap-
pointed TO strsighten out the affairs OF
the H. B. Clahin Company caused a
heavy selling movement on the Stock
Exchange. Large offerings Of stock at
the opening caused a break in prices
throughout the railroad and industrial
list. The heaviest losses took place in
the latter.
Considering the magnitude of the
failure, however, there was feeling
in Wall Street that the market showed
remarkable resistance to the bears.
Through a recovery shortly after mid
day many of the early losses in lead
ing issues were wiped out. The selling
movement was resumed in the late al
ternoon, and the market declined to
new low figures for the day.
The preferred stock of the United
Dry Goods Companies, which indirectly
controls the Clahin company, opened at
10 and close at IS, loss of II points,
as compared with Wednesdays closing
price OF 81. Stock OF the May Depart
ment Stores, operating drygoods stores
in st. Louis. Cleveland and Denver,
opened at 533i, declined to Ola, and
closed at 532s, a loss or ia points.
Heavy declines in other stocks were
Amalgamated Copper, points; Ameri-
can Sugar, rs; American Tobacco, 3;
American Wooden, 2; Atehison, 2b;
Baltimore & Ohio, 2; Guggenheim Ex-
ploration, 2ls; Texas Company, 3la,
and the Woolworth Company, 23s.
The number Of shares sold yesterday
exceeded $4,000, as compared with
$4,000 Wednesday, 10000 Tuesday
and $4,000 Monday.
So far as the market for commercial
paper is concerned the Claflin troubles
could not have come at better time.
The demand for accommodation at .his
season is light. Little paper was Of
fered yesterday and brokers reported
that buyers, awaiting more light on
the affairs Of the Claflin Company, were
asking prohibitive rates.
This condition, experts believed,
would exist for a few days, until a
definite idea is gained concerning the
disposition of the s30,O00.000 Claim
paper outstanding.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
CLAFLIN ENTERPRISE SPRUNG
FROM RURAL GENERAL STORE
Drygoods Business Now Known the World Over Can Be
Traced Back to John ClaAin, Farmer and Justice of
Peace in Milford Mass, Who Died in 1881.

was transferred to a new corporation,
known as the II. B. Clahin Company.
The subscription books of this con-
Germ were opened by President Coe Of
the American Exchange National Bank
on May 5, 1890, when it was discovered
that the entire issue had been largely
oversubscribed in advance.
Nearly every one of the LOO en-
plOyes Of the old firm had subscribed.
The employees alone called for more
than the entire issue Of common stock,
while customers of the house had also
subscribed for two or three times as
much more.
The corporation was formed with
S3,829. 100 of common stock, $2,600,30
first preferred and s2,570,600 second
preferred. This was practically the
first incorporation of the kind in the
country, and was widely hailed as a
most suspicious new departure. For a
time the business was continued along
the old lines. Then the changing con-
ditions Of the drygoods trade in this
city and the general tendency of other
businesses toward enormous combina-
tons moved the corporation TO a
change Of policy.
The Associated Merchants Company
was formed, with John Clafin as its
president, holding half of the stock Of
the H. B. ClaAin Company. The
United Drygoods Company was also
formed, also with Mr.. Claflin as its
president, holding more than half Of
the stock of the Associated Merchants
Company.
Practically all three of these were
one concern, nearly all Of their officers
and directors being identical. They
then entered upon campaign of &C
quisition Of drygoods stores in this
and other cities, owning or controlling
James McCreery g. Co., C. G.. Gunther
& Sons, the 0'Neill-Adams Company
and Lord g. Taylor, in New York: H..
Batterman e. Co. and the Bedford
Company, in Brooklyn; Hahne e. Co.,
in Newark, and many others in all
parts Of the country clear to the Pa
ciic Coast.
The II. b. Claim Company in these
new circumstances seemed to be main
tanning all Of its old prosperity. From
the beginning it has been paying and
per cent, respectively, on its first and
second preferred stock, and from to
per cent on the common.
It's gross earnings were s47,962 IN
1911, S54e, 039 in 1912 and s527,195 in
1918. The Associated Merchants Com
pany, Connecticut corporation, has
been paying per cent, with numerous
extra dividends, and the United Dry
goods Company. q Delaware corpora
ton, has paid 8 per cent on common
, and z per cent on preferred stock.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
BUSINESS 'SP0TTY,'
M'ADOO ADMITS
Insists on General Prosperity,
Timing His Statement with
Presidents.
lrrom The Tribune Bureau

Washington, June 25.-Evidently in
tending to Offset the possible "psycho-
logical effect Of the Claim failure on
the public and bolster up the Presl-
dents optimism, the Secretary OF the
treasury gave out the following state
ment this afternoon regarding business
conditions as viewed by him: ar
"Many callers upon Secretary NC
Adoo during the past few weeks nave
stated that business conditions are
sound and that the country Is generally
prosperous. Business is 'spotty' in
some places, particularly in those IN
dustries and supply houses which de-
pend largely upon railway orders, out
there are signs of decided improve
ment even in this field. Those state,
ments have been made by bankers ana
business men. - :;
"Among those who have thus IN
formed the Secretary was Ny. T.. f.
Swinney. president of the First Ma
tionaI Bank, of Kansas City, Mo-, one
of the largest in that section OF the
West. who called yesterday, and MS
statement is typical. Mr.. Swinney SAID;
"Conditions in our part of the coun-
try are lust as satisfactory as we
could ask. While we had crop tall,
ure last year, we did not sit around ana
whine about it, but kept right on DONG
business. We have just about inlsneo
harvesting the largest crop oil wheat
ever raised in Oklahoma and Kansas
and an average crop in Missouri. The
Kansas crop last year was an average
crop. about $4,000, 900 bushels. TINS
wear it will not be less than 13o,OOO,Ooo
bushels, and some Of the best posted
men put it as high as 15O,OO0,O0O 10
$50 900, goo bushels. 1t will certainly De
100000 bushels.
"'The railroads had let their equip
ment run down to such an extent that
they were compelled to make whole
repairs on their rolling stock and as a
consequence all concerns doing work
of that kind are now busy day and
night. Our merchants report business
having been about on the average until
the last few weeks, when it began to
increase, and our largest drygoods
house informed me the day before
left that their business for the hrst
fifteen days Of June was SO per cent
greater than the same period last year.
awe have good, active demand for
money right along. Our people are
aggressive and, instead of inviting
business depression, they meet 1t and
drive it away, as they do not feel 1T
has any right in this country. So far
as we are concerned, the general bust
ness condition is absolutely sound"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
GIMBEL PRAISES CLAFLIN
Says Man of His Stock VIII
Pay Every Dollar"

Jacob Gimbel, of Gimbel Brothers
said last night of the ClaAin receiver
aAs | recall, going back to my boy
hood days, the Mellen-Clahin company
met with financial reverses ana ss ic
nended. shortly afterward II. B. Clsfin
paid up dollar for dollar. u
"He was the founder Of the II. b.
ClaAin Company; his successor IS his
son. A man of his stock and OF his
capacity as merchant will pay every
dollar.
81 accept John Claims statement as
to the cause of the present difficulty as
accurate, as the condition is not gen.
eral one.
an feet, our own observation shows
US that conditions generally are bet
ter, and that, based at least upon our
own business, the outlook is encourag-
ing"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
Transposing of Engines in
Wanamaker Flying
Boat Helps.
CHANGE OF PLANS
is ANNOUNCED
Route Will Not Be by Way OF
FayaI, but Ponta Delgada,
in the Azores.
fRv Tel.xrsph 20 The tribune. J

uemmondsport. n. Y, June 25.-The
padr.an Wanamaker flying boat, the
America was taken from the Curtiss
Aviation field late to-day and gwen
ser;es OF practice fights by Lieutenant
Porte. Nothing sensational was az
templated, and weight carrying tests
will come later. -.
Under the guiding hand Of Porte, the
a.hine made several beautiful flights
snd the stoadiness of the craft con
tinues 10 be the chief subject OF con
verkation among the experts VINO are
in Hammondsport watching the triais.
New radiators were installed IN the
machine to-day and with the ex-
cention of the scientific instru-
ments for the use of the nayigators'
she is ready for the transatlantic nignt.
During the flights tonight Glenn
Curtiss ran abreast of the America IN
his new scooter, which makes nearly
fftv miles an hour. The two big motors
in the America were transposed 70
day and Mr.. Curtiss said thar tne
change had produced good results, IN
that the boat would plane at lower
speed.
announced to-day by William u. Gssh'
Rodman Wanamsker's representatNe.
II resulted from a letter received from
]. Lansing Callan, who is in the Azores
for the purpose Of arranging supply
stations for the TRANSATLANTIC myers
Callan reports that Fayal, in the Isl,
and of Flores, at which point 1t had
been planned to established the CHIEF
station, is very difficult to approach
and in view of this fact Porte has de
cided to proceed directly to Ponta Del
gada, the principal seaport OF the
islands.
Owing to the numerous tests TO pc
made before the America IS ready for
shipment to Newfoundland, II has
been decided to postpone the shipment
of the boat for one week and 1t VIII
90 to Newfoundland on the steamer
leaving New York on July IL, instead
of July 4, as originally planned.
Lieutenant Porte hopes to sail on
July 4. He said to-day that the fear
of storms, which are prevalent on the
Azores route after the middle Of July,
will not deter him and that he will set
his course for the Azores as soon as
the America can be prepared for the
trim. -,
Victor Vernon, who recently pur-
chased a new flying boat, filed his en-
try tonight for the air race in New
York on July 4. Mrs. Vernon, who IS
enthusiastic over aeronautical advent
ures, probably will fly in the race as
n passenger in her husbands boat. She
will be the first woman to ny IN an
aeroplane race in America.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
TWO HOURS IN CELL, DIES
Aged Pedler Succumbs to
Heart Disease in Tombs.

Two hours after Austin Curry, Of
95 Sixth av., an old peddler, had been
committed to the Tombs by Msgis-
trate Deuel. yesterday in default Of
5000 bail he was found dead in his
cell by DR.. Lichtenstein, the Tombs
PHYSICIAN.
Shortly after his arrival at the
prison from Essex Market court Curry
complained of feeling i'll, and the
prison doctor was notified. The physi-
clan saw the man was suffering from
some disease of the heart, and resliz-
ing that it would be dangerous to move
him made him as comfortable as pos
sible in the cell.
The physician left his charge for a
few minutes to get another preserip-
ton, and on his return Curry was dead.
He had been arrested on a charge OF
petty larceny
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
TWO AUTO VICTIMS DEAD
New Brunswick Mems Skulls
Fractured in Car Crash.

New Brunswick. n. j., June %
Frank Moore and Henry Carstens, who
were taken from under the wreck of a
racing car on Dunham's Hill, died early
to-day in st. Mary's Hospital. Their
skulls were fractured when their ma
chine crashed into that of William
Taylor on the Metuchen Road.
Taylor, his wife and two girl guests
we're thrown out of their automobile.
One Of the girls had leg broken, but
the others escaped with cuts and
bruises. The dead men were known
for their fast driving, it is said, and
often made eighty miles an hour in
their racer,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
COURT AFTER ZIEGFELD

Florenz Ziegfeld, theatrical manager,
was ordered by Justice Donnelly yes
terdsy to submit to an examination
in supplementary proceedings or stand
in contempt of court, which means
commitment to the Ludlow ST. jail.
Ziegfeld, who recently married Billie
Burke, the actress, owes $4,000 to Anna
Held, his former wife, on a judgment
which she obtained against him for
notes he gave her.
The court issued an order September
IL directing Ziegfeld to submit to an
examination as to his ability to pay
the judgment. He failed to appear.
Miss Held moved that he be punished
for contempt.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
P. S. g. Buys Land at 81 Foot

For sl50.O00, or 81 a square foot, the
Public Service Commission bought
from the Transit Development Com
pany yesterday 100000 square feet Of
land in 3Sth ST., Brooklyn, needed to
provide banks for the new railroad TO
connect the Fourth av. subway with
the projected elevated roads to Coney
Island,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
COMFORT IN CLAFLIN CASE
Wilson Men Glad 1t Is Not At
tributed to Tariff.
IRON The Tribune Bureau.l


Washington, June 25.-There was
manifest relief in administration cir
cles that the Clahin failure was not
directly attributed to the tariff or any
specific legislative action for which the
party is responsible.
The President took the view that the
failure did not call for an inyestiga-
ton, and this view also was heia "
his subordinstes. John SHELTON VIII
Jams diseredited rumors that banks N
New York and elsewhere would be az
fected by the failure. 1t was true, ne
said. that many banks in ali sections
of the country held the paper OF ths
Claim Company, as they did that OF
all large commercial houses. There
would be no trouble TO sucn lnsSisu,
be paid and the banks were amply pro-
tected.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
BRIDESMAID BADLY HURT
Thrown with Brother from
Horse, Racing for Train.

Garnerville, June 25.--Miss Hilda
Bentley has a broken arm and dis
located shoulder, and her brother,
Howard. a broken leg, as a result of
horseback race to catch a train here
to-day. -,
Miss Bentley was to be bridesmaid
for Miss Aida Prescott, OF Cresskill,
at her marriage to James Eldred. Hav-
ing but a few minutes TO catch the
West Shore railroad train at Haver-
straw, she rode behind her brother on
a young horse.
As the horse was galloping full speed
to beat the oncoming train to the depot,
it stumbled on a hoop in the road
and threw both riders into the mud.
Miss Bentley tainted and the horse ran
away.
Miss Prescott had to get another at
tendant.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
Koehler Dismissal Approved.

IFToW THO IFlDune Bureau.
Washington, June 25.-The final
chapter in the court martial and con-
vietion of Major Benjamin NJ. Koehler,
Coast Artillery Corps, at Fort Terry,
n. ", several months ago on charges
Of improper conduct, was written to-
day, when the President approved the
sentence of dismissal. Strong infu-
ence was brought to bear on the Pres
ident and the Secretary Of War for
clemency,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
Whitman Strength Grows.
fBy Telegraph 10 Tho Trlbune1

Albany, June 25.-Reports received
in Albany to-day by Republican lead.
ers from various parts of the state
show that the strength of District At.
torney Whitman as 2 candidate for the
nomination Of Governor is continually
growing. William Barnes, jr., State
Chairman, when asked about The Trib-
une story that he looked on Mr.. Whit
man as one of the strongest Republi-
can candidates in tie state, would not
eopmit himself.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
H. @. o. L. Hits New Haven.

=. The high cost of living has hit the
New Haven Railroad, and after July 1
the price of the dinners served in its
dining cars wsll be raised to 81 20. The
present price is 81. Luncheon and
breakfast prices will remain the same
for the present.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
Makes New Altitude Record.

independence, Cal, June 25.-Silas
Christofferson, aviator, in a biplane
flew to-day over the peak of Mount
Whitney, 1888 feet high. He attained
an altitude estimated at more than
$4,000 feet and established, it is con-
tended, a new American altitude rec.
ord.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26
Boys to Make Night March.

Starting from the Bowling Green at
. y. m. tomorrow, Troop 1873, n. Y. G,
Boy Scouts of America, will make
twelve hour night hike up Broadway.
They will drop in at hotels on the way
to be checked,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26

AZ soon as it gets and freedom there will be boom OF
witnessed in the United olalet'
." 49, Would Not DareS OF
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26

Though the ClaAin Company inter
ests. as il clearly appears, are elosely
interlaced with these two Dig COM
panies, the stores on the ABOVE iisS are
the ones which 1t is beheVed WIN h9'
even eventually be effected by tne 1a,I-
ure. The list Of stores throughout the
country in which Mr. Claims personal
interest virtually amounted 20 o"he'-
ship, is as follows: o.,.,,.,.
The Bedford Company, brooSIyh, %
Bacon e. Sons, Louisville; N1s' iiSa
Knott Dry Goods Company, NashVlIlei
NJ / .Connell Company, Butte; The
viz Comnany. Cincinnati; Joslin Dry
cobds Compsny. Denver; Kline Broth
~ Altoona: Lord e. Gage, Reading;
lion Dry Goods Company, Toledo;
George W. MeAlpin Company, Slhelh-
r5sfi. MeCreery a. Co, Pittsburgh;
Montoomery Fair, Montgomery, Ala;
Aeonle's Store Company, Tacomai ROOT
Fry Goods Company, Tefre hsu'ei
lSnying Dry Goods Company, Grand
lRapids: Whitehouse Company, SP0-
k,sne. ! Il. White & Co, Augusta n
Hatterman Company, Brooklyn; WAts'
stew & Clay, Norfolk; Thomas u
tkins. Ltd, Hamilton, Can; h ns!
ey Company, Butte; Copper wy
nmercisl Company, Anaconda; Mac Mac.
yale & Southwick Company ses r,.
Store Company, Kansas O1Sy,
! A.s Brothers. wilkes Barre; The
Company, Cleveland, and MAC
81 n Cioutier. Anaconda. r
fairfield, Of the hrm oi
of IA Wall ST., counsel
+ kders' committee" said
q Il Nbsbly some Of these
h. forced into INC
4 II nc mentioned the
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26


at WAS then clear that it would be
an endless Job. They could relieve the
necessities of the moment, but unless
more paper could be placed there
would be no end to the amount Of aid
that would have to be extended. The
New York banks had done all that they
could, and had cheerfUlly taken the
paper up to the st. Outside banks,
particularly in the Middle West, who
about this time have to consider tinanc-
ing the crop movement ~culd or would
take no more.
ain the circumstances the only thing
TO do was TO have a friendly receiver
shin which would protect the interests
OF all, and Mr.. Clsfin was so advised.
"The Clafin paper is what is tech
nically known as two-name paper, be-
ing made by some twenty-seven stores
owned or controlled by Mr.. Clafiin and
Endorsed by the II. b. Clahin Company.
Mr.. Clsfin did not individually indorse
any of it. These stores were formed
or purchased to form an outlet for the
II. B. Clshin Company; they we're in
effect retail agencies of the Claim
company, and the Clahin company
financed them By giving them the use
of its name and credit as we'll as sup
plying goods. To keep these stores 60
ing required an enormous amount Of
capital. Business was expanding, but
the expansion required more cash.
Each year required a million or two
more.
$50 long as it was easy to get that
money by the sale Of paper everything