New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-28
CLAFLN BURDEN
ON OUTSIDE STORES
Necessity of Saving Retail
Subsidiaries from Ruin
Gus Liquidation Urged.
"WATCHFUL WAITING"
CREDITORS STAND
John Claflin Named Agent for
ReceiverS-Five More Places
Start Friendly Action.

The noteholders and merchandise
creditors OF H. b. Clafin Company APP
parently have entered upon a period Of
"watchful waiting" Little Roadway
can be made until the report of the re-
ceivers on the financial condition of the
Clafin company and its subsidiaries
throughout the country is forthcoming,
The receivers arc hopeful OF obtaining
a statement Of the exact condition Of
the parent company within the twenty
DAYS permitted by the court prior TO
the calling Of the first creditors meet
ing. The returns from the outside
stores viii be matter OF much longer
time.
Meanwhile a hopeful note as to the
ultimate readjuStment Of difficulties is
expressed from all sides, and prompt
co-operstion is urged by the ehairmen
and counsel Of the bankers and mer-
chandiSe creditors committees.
Particular emphasis was placed yes
terdav on the importance Of eNerting
every effort 90 save as many as posi-
bic Of the twenty-Seven subsidiary re-
tail stores in other cities and continue
their business. IL was made clear that
these stores will constitute the crucial
factor in Strengthening the present
situation.
Burden on Outside Concerns.
Hmm them. as makers of the notes,
will rest the initial burden Of taking
nm the S8OOOOOO0 of the outstanding
commercial paper Endorsed by the II.
b. Cladin Company.
Five more of these outside concerns,
including the Sterling Mills, of Norris
town. Penn. went into the hands OF
friendly receivers yesterday, making
total OF eighteen out of q possible
t,yertv-Scven. it is expected that all
hut two or three Of them will eventu-
sUv take the same action. The volun-
tarv petitions were filed in each case,
as announced. as a matter Of protection
and 10 keep the stores going.
In a statement issued yesterday by
lanes $. Alexander, president OF the
National Bank Of Commerce and chair
man OF the roteholderS' committee, fol-
lowing a conference of this committee
with the merchandise creditors COM
mittee. il was indicated that a process
Of elimination might be followed IN re-
adjusting the affairs of these outside
stores BY eventually liquidatlng the
concern which had not heretofore
been conducting profitable business
Mr.. Alexander said:
"Both the notcholders' and merchan-
disc committees wish TO emphasize that
IL will be their aim 20 continue those
retail stores in other cities affiliated
with the Cafin Company for which
receivers have been appointed. The
committees Will cooperate with the re-
spective receivers in obtaining from
the courts authority for the continu-
ance OF the business Of the stores
which have heretofore been protitably
conducted and in the maintenance Of
the buying and selling organizations.
Cooperation Again Urged.
Necessarily. with the stores in
widely separated cities. IT will require
some time to obtain all the facts and
figures, but in the mean time the Gus
toners. the employees and the public
can feel assured that no effort will be
Spared TO have a permanent arrange
ment effected for the continuance OF
The business Of the several stores. All
interests should recognize that the best
POSSIBLE results will be obtained b.
the creditors giving their prompt CO.
operation through their respective COM
mittees.' 80,
The belief prevailed in mercantile
circles here yesterday that any future
plan of reorganization Of the Clafin
firm would provide for the divorcing Of
the parent company from the outside
stores ana placing them on a basis Of
separate and individual operation. Just
what position the parent store would
occupy in such a scheme is, Of course,
al this time matter of speculation,
hut it is not likely that it viii con
tinue as a jobbing house and at the
same time promote and operate retail
stores.
Another plan suggested was that the
big Clahin store, after reorganization
might continue purely as a jobbinS
house and a separate company be
formed to operate the outside stores
which are found TO be on profitable
basis after their present status mas
been determined
At any rate, il is practically certain
:hat some of the stores in the Claim
String which are said to be in more
or less weak financial condition Will
discontinue business in the wedding
nut process which is expected TO start
rSOon.
Avert Ruin of Goodwill.
James n. Rosenberg, Of Rosenberg,
Lewis g. Ball. counsel for the merchan-
disc creditors committee, emphasized
the Importance of Saving" the out
side stores. So far as the creditors
knew. he said, none Of the receiver