Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-06-26
RETAIL, JObb|VC AND
COMMISSION HOUSES
To AID CLAFL|N CO.
Many Big Concerns Promise to CO.
operate and Get Business
on Firm Basis
CREDITORS PLAN MEETING
John Claflin Pledges His Personal
Fortune of $l0.00O.O0O to
Help Defunct Organization
CREDITORS PLAN MEETING
BY Associated Press

New York. June 26.-With assur-
ances of cooperation from the leading
dry goods firms, jobbing and commls-
sion houses and the organization of
merchandise creditors and the holders
of the firms paper, John Claffin to-day
began the task of reorganization of
the II. B. Clafiin Company, which went
into the hands of receivers yesterday.
In a statement giving his reasons for
the receivership Mr.. Clafiin said re-
garding possible reorganization that a
plan will soon be presented which we
hope will prove acceptable to both
creditors and to stockholders
Representatives of houses in the re-
tail, jobbing and commission business
have expressed sympathy over the
Claf1in receivership and all united in a
promise to cooperate with the COM
pany to the fullest possible extent in
regaining a firm financial standing.
The impression prevails to-day in
financial circles that the firm Will
eventually pay Toe cents on the dollar
IL creditors allow sufficient time for
the company to realize on its assets.
Defender Bankrupt?
An involuntary petition in bank
ruptcy was filed here to-day against
the Defender Manufacturing COM
pany, of this city, makers of under
veal, d SuDSIuldTS Ol tIle IL. d. Sldlilil
company which failed yesterday. Re-
ceivers in equity proceedings were ap-
pointed at the time of the Claflin fail
ure, but it was contended that the
company was solvent. Creditors now
seek to have it adjudged bankrupt.
Counsel for the 'Clafiiu interests, it is
understood, will oppose the petition.
Members of the noteholders' protec-
tive committee, appointed yesterday
to safeguard the interests of banks
having some $50, 1000, 600 of Claf1in pa
per, went into session to-day at the
National Bank of Commerce, whose
president J. S. Alexander, is chair
man of the committee.
A. c. Drew, secretary of the mer-
chandise creditors committee, csti-
mated to-day that merchandise cred
itors have. claims of about $2,000,000
1T is our earnest hope" he said. that
merchandise creditors will deposit
claims with our committee at the
earliest moment. Immediate Coop
Grafton is essential to produce satis-
factory results. In view of the pub
lie Importance of this matter, this
committee has consented to represent
creditors without cost to them.
The liabilities of the company are
placed at S34,000,000, principally in
the form of commercial paper. The
sets are placed at $4,000, ,000 and in
addition John Clafiin. it is stated, has
pledged his personal fortune of
$10,000,000. The outstanding paper is
held by thousands of banks through
out the United States and so widely
scattered as to prevent a financial
strain in any one section which would
result in forcing the company to a
hasty settlement and probably prevent
reorganization.
Creditors to Meet
A meeting of the creditors to be
held in about ten days will determine
whether the receivership shall be con-
tinued and if so. on what terms they
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