The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-26
CLAFLTN NOW WAITS y
MOVE BY CREDITORS
Expects q Request That He Ex.
plain His Hinted Plan Of
Reorganization.
MUCH WORK ON ACCOUNTS
Situation Will BE Clarified in
Two Weeks When Retail
Stores Report Is Made.

John Claim. president OF the n n
Claflin Company and owner practically n.
the retail dry goods stores In tho
country and Canada affected by 'he
Clafin failure. is strongly hopeful that
his plan of reorganization will be accented
by the receivers and creditors He hir,od
at the plan in his statement to the cred,.
tors Friday and put himself in the rosl.
ton of waiting for reques, from the
creditors TO ask what his plan was lie
has promised TO back that plan with
every dollar he possesses.
The report Of tho expert accountants
shows the John Clafin account, which was
transferred to the II. Il. ClaHln Company
after the failure, included the United Mer.
camille Companies. The account further
showed that Mr.. Clahin had gathered TO.
gether under the United Mercantile Com
panies stocks and properties which no
valued at s2O.425.56s, but that against
those assets there had been discounted
notes indorsed by the II. Is. Claim Com.
pany amounting TO S16.473,3i7. leaving
apparent asxets of s3.e52,22l
The assets of the United Mercantile
Companies, as set forth in tho report
show stock In controlled companies, par
s6,27i,7OO, but set down at value Of
Sl1.1o4.4S7; investments in affiliated
companies of total of s6,S74.417, includ.
ing S6.26S.000 par value of United Dry
Goods Companies common stock. set down
at par, but quoted on the exchange at
20, other Investments of $303.31l.49, in
Guiding 100000 par value stock Of
j. III. Durham a CO., valued at only S4O,-
900, and also the equity in the site of the
Mccrcery property in Thir,y-fourth street
OF S2.0l3,S59, which. however, has been
assigned as security to the United Dry
Goods Companies and also the Bedford
Company property IN Brooklyn. sot down
at Sl2y,i93.
Those are the properties gathered under
the United Mercantile Companies, but
tho ~. H. Clafi!n Company owned certain
OF the dry goods stores and has invest
meuts Ia various affiliated companies.
The apparent scheme OF Mr.. ClanIn u
to gather all those retail stores
together into one big corporation lie
made no mention of the H. Il. Claim
Company proper In his statement Of Fri
day, but he holds that the earnings
OF those stores are more than enough 10
pay the interest ON all the $50, 900
notes of the stores outstanding.
Some OF me creditors are not In favor
of Mr. Claims plan as they understand
| Il, though IL has not been fully outlined.
| The situation. however VIII he more
fully known when the report of the retail
stores is furnished in about two wechs
| time.
one of the interesting features is the
carrying Of the j. II. Durham Il 90
stock at 80, whereas the stock III SAID
/ 10 he worth par. The stock was put N
the books at the purchase price of many
years ago. ON the Other hand. the boo s
value the property Mt worth and church
/ streets Mt $2.739,1Sl, and those hFur,s
are said to he entirely too high.
The report of the accountants. II was
| pointed out yesterday, does not show what
| Mr. Cla1in did with the $4,000. 600 mr.
more that he raised by discoun'ng the
not of the stores. the stock of which
| Is held by the United Mercantile Com
/ panles association. Il does not show
how much of the remainder of the ,33,-
! 900 900 notes was issued for goods actu-
ally purchased by the retail stores
| Il was admitted that II will take the
expert accountants six months or a year
| 20 unraVel the maze OF financial operations
| connected with the notes. The process
Of disCountlng notes was carried on Tor
| from ten TO twenty years, and IL Will
| take much time 10 follow the various
| transactions