The chronicle=news., 1914-06-25
DRY GOODS HOUSE
GOES BANKRUPT
tCs.ti...a fr.. p.s. L.,

ana the Associated Merchants COM
pany. though affiliated with the Claf-
lin company through stock control.
were In no way involved in the fall
ure.
Unless blocked by creditors. re-
organization OF the failed firm Ia
contemplated. according to the fol-
Clailin the president:
"The unprecedented shifting of
trade centers in New York. has caus-
ed great loss to many interests. In
the uptown movement OF business
has seriously curtailcd our whole
sale profits and has been compelled
to rely mainly on the profits from
financing retail stores throughout the
country. Their rapidly expanding
business has occasioned large capi-
tai requirements, which we have not
been able to meet. A receivership
has therefore become necessary pend
ing readjustment OF the affairs OF
the company. A plan Of reorganiza-
tion for the H. B. Ciaflin company
will soon be presented which we hope
WIN, prove acceptable both to credit
ors and to stockholders.
"The Associated Merchants COM
pany and the United Dry Goods COM
panies are not themselves borrowers
of money. They are in exceedingly
strong financial position and the sue
cess of their retail stores is assured. -
A note holders protestive commit
tee has been formed to look after
the intertess of the creditors. Most
of the banks concerned will be repre-
sented on this committee. OF which
j. s. Alexander. president of the Ma
tional Bank of Commerce, will be
chairman.
New York banks are said to have
made large advances to the Claflin
company recently. with the hope of
averting financial embarrassment.
New York banking interests. 1t is
understood, have agreed to offer such
assistance as may be necessary to
some of the Independent retail stores
affected.
Interested merchants were closet
ed with J. p. Morgan and other prom
inent bankers day and night for the
last week, in an attempt to avert the
failure. 1t is understood that $780,
OOO,0 900 was necessary.
1 "Mr. Morgan and others were most
generous" said one who participated
in the conferences. "but II was a
question of raising the whole or none
at ALL"
| Joseph b. Martindale, president of
the Chemical National bank, and
Frederick A. Jullialard. a wholesale
dry goods merchant, were the re-
ccivers appointed. They were named
In the friendly proceedings. two suits
in equity, one brought by John E.
| Emes, vice president of the II. B.
ClafIin company. the other by Will
liam p Odell.
There were also involuntary pro-
ceedings which sought the appoint
| ment of different receivers and alles-
ed that the company was insolvent.
These proceedings were instituted by
small creditors.
Receivers Martindale and Julia
lard said that the failure was Of such
tremendous proportions, that 1t
would be several weeks before
would be possible to know where
they stand.
Though the failure is perhaps the
most important in the history OF the
dry goods trade in this country. New
York bankers predict that the chief
and perhaps only potent general eff
feet will be temporary demoraliza-
tion in the dry goods trade.
Announcement of the failure caus-
ed a general decline in the opening
of the stock market, but losses were
not heavy. and succeeding transac-
tions caused reaction to some ex-
tent.
John Claflin has been associated
with the dry goods business for more
than 40 years. He is regarded as
the A. T. Stewart of his time. At
the age OF 20 he entered the employ
Of his fathers firm, then known asl
II. b. Claflin and company. Three
years later he became member of
the firm and in 1890 formed the cor
poration which went under today. !
He Is trustee Of many financiall
and charitable organizations.
Mr.. Alexander, chairman Of thel
protective committee, made the fol-
lowing statement.
H. B. Claflin company discounted