New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-24
lehman COUNSEL
IN CLAFLIN TANCLE
Mexican Mediator Engag-
ed to Make Fight for
Minority Creditors.
CHARGE FREEZE-OUT
BY BIG INTERESTS
Receivers Report To-day VIII
Contain Nothing Sensational
Is Report.

Frederick W Lehman. Of ST LOUIS
who vas sent TO Niagara Falls 20 ne'p
bring about peace in Mexico. destroyed
the last hope Of those in charge OF
STRENGTHENING out the affairs OF the H.
y. Clafin Company for peaceiui
meeting OF creditors to-day. lie an
nounced that he would lead from .ne
floor a fight 10 secure represehtatIou
for the minority mercantile cteul'or,
on any committee that might be elected
under the call for meeting lsSueu W
Judge Learned Hand.
Previously Saul MYERS. counsel FOR
the Credit Adjustment and AUDIT AS
sociation. had made public the reten-
ton Of Mr.. Lehman and charged thal
an attempt was being made TO freeze
out minority interests.
With Mr.. Lehman came FestuS D.
Wade. thc 81. Louis banker and rep
resentative from the West on the note.
holders committee formed the day 81
the failure TO protect bankers VINO
hold ClaAin paper. .,
Mr.. Wade. Mr. Lehman SAID. would
he with him Al the meeting. thus con
fruinc tho report Of break over the
proposed management Of affairs by the
committee headed by James ). AleNan.
der. president Of the National Bank OF
Commerce.
To Name Receivers.
Resides appointing the committee to-
day. the creditors are expected TO des-
ignate two persons 70 serve as reccly-
crs and TO vote on the advisabllty OF
ho floN
least temporarily.
II had been hoped that Joseph b.
Martindalc and Frederick A. Juilliard,
who we're designated rs temporary re
ccivers and who have spent much time
mastering the details of the situation.
would he retained. but the lack Of har-
mony and the prospects Of q contest on
the floor make this result doubtful.
The report Of the receivers will be
one of progress II will give IN detail
the condition Of the II. h. Clahln Com
pany, with two tables showing the
book value Of the company's assets
and the inventory value as fixed by the
expert accountants. No attempt Will
be made TO estimate the liquidating
value. The condition OF the subsidiary
companies controlled by John Clahin
will tc estimated. complete figures not
yet being available.
II is not expected that the receivers
Will attempt 20 outline any reorganiza-
ton plan. owing in part TO the prob
ability Of a contest for the privilege
Of saying who will run things.
None Of those most interested cared
10 state yesterday what the receiver
report would show. all who have seen
the figures being pledged to absolute
secrecy. II was said by those i'm a po-
Sltion 70 know that at will contain
nothing sensational, the worst having
been discounted"
II is known. however. that the assets
will reveal a large nominal excess over
liabilities; but the discrepancy be
tween that and the figures Of the ex-
pert accountants OF the actual value of
the property will be several million
dollars.
The statement outlining the position
Of the smaller mercantile creditors. rs
sued late IN the afternoon. read as
follows:
"rhe Creditors Audit and Adjust
mcnt Association. in the pending ii. B.
Clahin Company bankruptcy proceed
lngs. Is acting for about one hundred
Clatiln creditors, with claims exceeding
100000
Plans for Protest.
More than one hundred European
and American banks. mercantile houses
and individuals, whose claims against
the failed II. B. Clahin Company total
over 100000. are preparing to make n
vigorous protest at the Clafn cred
tors meeting at the Park AyenIe
Hotel These creditors have recently
learned that an attempt may be made
20 deny them representation on the
creditors committee, which the meet
ing has been called TO choose. ghcy
have also engaged as counsel Frederick
W. Lehman and Saul Myers. They
have prepared IN other ways 70 fight
any attempt 20 deny them a voice in
the makeup of the committee
"The election Of creditors commit
re" VIII be the most important feature
Of the meeting. Representation on this
committee Is important for all the diff
fcrcnt groups Of creditors. because this
committee VIII have the power under
the ruling OF the court 20 accept Or re-
iect any settlement or proposition
which the receivers may ultimately
make.
THE particular group Of credit
who have joined together 10 fight COR
representation on the committee and
who have placed their claims in the
hands Of the Creditors Audit and Adj
justment Association include Bra sher
& Foster and Hardy. Greene Co.. Not
tingnam, England; Plague & Co.. Lep-
zig, Germany, and the following firms
i0 various parts Of the United
States: BahnSen & Co., Belding Broth