Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-06-26
HAVE NAMED THE
: RECEIVERS FOR
H.B. CLAFLIN CO.

CONTINUED from Page One)
bought outright from John Clafiin the
entire business of Hahne & Co. of
Newark. Powers Mercantile Co. of
Minneapolis; William Hengerer Co. of
Buffalo. ard the Stewart Dry Goods
Co of Louisville, KY. In June. 1910,
control of Lord & Taylor of New York
City was acquired.
The Officers
The officers are: John Ciafiin, presi-
dent; Lewis Stewart, vice president
and treasurer; J. c. Eames, second
vice president; directors, Lewis Stew
art, Rowland Davis, George F. Crane,
ERNEST Stauffen, Jr., John A. Ctewart,
w. NJ. Barrett, John Clafiin and Thorn
as r. Bayard. The total net income
for 1913 was s2.0s3,7S1. dividends on
preferred stock being s754,Ss3, and on
common s1,I54,200, final surplus of
ss174,s9S.
J The percentage earned on preferred
stock was 1925 per cent. and on COM
mon stock 9.21 per cent. The assets
included 9s,13l shares of capital stock
of the Associated Merchants Co., the
combined net tangible assets of
sHahne & Co., the William Hengerer
Co. Powers Mercantile Co. and the
Stewart Dry Goods Co, the cash of
the combined companies, the securities
of Lord & Taylor and cash available
for further investment. Almost stimuli
taneous with the filing of the suit in
equity. John Muller, William Worth
I'D A
filed an involuntary petition in bank
aruptcy against the firm. the company
owes Muller. according to this petition,
BIB. Worth is a creditor for s313l,
twnilo Bergners claims are placed at
s2s.S10
FURRY in Financial District
y The receivership caused a furry in
tile financial district although rumors
that something was impending were
rife yesterday. It was confidently as
serted In banking circles that the many
retail subsidiaries affiliated with the
Interests would be taken care of.
:. The appointment of receivers Is as
crihed to an over extension Of cred
its.
: A suit of equity was also filed
against the Defender Manufacturing
Co. said to be subsidiary of the H. B.
Claim Co. The complainant is William
p. OdeH. The suit is for $500. The
same receivers were appointed with
a bond In this action of $4,000 each.
None of the proceedings, it was said,
would affect the United Dry Goods Co.
A noteholders' committee has been
formed with j. s. Alexander, president
OF the National Bank of Commerce. as
chairman. which will endeavor to for
.muiate some plan for readjustment of
the Claf1in Co.'S. financial affairs.
The Allegations
Muller and others. who instituted the
involuntary proceedings. allege that the
Claim concern committed an act of
bankruptcy in conserving to a receiver
ship in equity proceedings They allege
further that the concert has transferred
certain property to preferred creditors.
The equity proceedings are friendly. the
erst' being instituted by John C. Eames,
who Is vice president of the company.
The liabilities Of the firm, represented
oy commercial paper held all over the
country, are estimated at s25,O0000o. 1t
10 said the company did not borrow
heavily on It's own paper but endorsed
notes made by interior merchants for
goods sold.
The inability of these interior houses
and the inability OF the H. B. Clafin Co
10 pay on the matured portion of these
notes Is ascribed to general dull business
conditions, to decreased sales and to slow
collections.
: II Is understood that the Clafiin Co
controls about IS dry goods firms
throughout the United States, distinct
and apart from those AFFILIATED with the
United Dry Goods Companies. Between
800 and 900 banks hold paper of these
stores Twenty-Five or 30 of the larger
discount banks In this city are creditors
Tor large amounts.
The Liabilities of the firm are estimated
eD'a' ss0'"'eoo the assets at 100000
Statement issued
The following statement was given out
by the ONCE of H. B. Claiin Co:
Tne unprecedented shifting of trade
centers In New York, has caused great
loss 70 many interests In the case Of
the Il. q. CIahin Co the uptown move-
"eht OF business has seriously curtailed
our wholesale profits and has conpelled
us 70 rely mainly on the profits from f.
nancing retail stores throughout the
country Their rapidly increasing bust
ness has occasioned large capital re-
gnlsessents. which we have not been able
70 meet. 4 receivership mas. therefore
become necessary pending readjust-
ment or the affairs Of the company. A
pasa Of reorganization of the H. n Chat
I'M Co will soon be presented which we
Hope Will prove acceptable both to cred.
ltors and 70 stockholders.
Tho Associated Merchants Co. and the
United Dry Goods Companies are NOT
shemsslves borrowers OF money. They
are u excssdinsiy strong financial DO
utions and the success of their retail
st0os y assured"
r Prseeettve csnnittes
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