New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-30
BALK BANK MOVE
ON CLAFLIN STORE
The Protective Committee
Agrees to Lift Part
of Burden.
UNSUSpECTED WEAK
SPOT ELIMINATED
Bic Creditor offers TO Extend
payment ACKNOWLEDGEMENTS
ershIp Will Cost Million.

Il when the bankers and lawyers inter-
&sfed m the Claim failure went nome
Snturday the situation appeared
In A. hand. over Sunday crisis de-
+ ioped. which until late yesterday at
moor threatened TO complieste mat
= still further through bankruptcy
oeeedines against firm indebted to
ClaAin company for more than
1000 900.
So threatening was the outlook that
hers in a friendly receivership pro-
Fesdine. calculated 70 conserve the m
tsrcsts of al concerned, were drawn
nm readv 10 file in court, and arrange
r.epts made for their being filed, when
the various interests met and so ar
ranged matters that any possibility OF
tro,shle was averted The net result,
therefore. instead Of disaster, was
oood. for with yesterdays proceedings
) hitherto unsuspeeted weak spot was
eliminated. and trouble from that
source was averted for considerable
time at least.
Small Banks Move Baked.
This situation, it is understood,
arose from the demand Of a small
hank. that is a proportionately large
holder Of paper of this Clafin house,
iudorsed by the parent company, that
Il be relieved of part of its burden.
This was agreed TO after the members
of the noteholders' protective commit
tee and the lawyers representing yari-
Gus interests had conferred.
Following this conference it was fur
Their arranged that any mercantile
claim against the house, large or small.
would be paid on presentation, thereby
eliminating the danger that q certain
tyne Of lawyer might, with the aid OF
three small creditors, start bankruptcy
proceedings that would make endless
trouble.
Rumor in the financial and com
mereial districts was also busy with
the affairs of another house. with
ClaAin affiliations. This was proved
saseless.
The mercantile creditors committee
also met during the day.. At the con-
clusion of the conference It was an
nounced that the committees repre-
sentatives would meet with the note
holders committee to-day to further
plans for disentangling Claims affairs.
This committee now represents up
ward of s2,50O.000 in mercantile claims
against the Claim company and the
Clsfiin stores, none of which will be
pressed for payment as matters stand
Bertram H. Borden, of McD. Borden &
Son. was added to the merchandise
creditors committee yesterday.
SIO,OOO,OOO Notes Pledged.
II is expected that the formal agree
mint for the deposit of notes with the
bankers committee, of which James ).
Alexander is chairman and Joseph NJ.
Hartfeid. Of White e. Case, counsel.
will be issued this morning. Under
this agreement it is asked that
noteholders deposit their Clahin paper.
About sl0,000,0O0 out Of the S30,0O0,0Oo
known to be outstanding has so far
been pledged. More is expected as soon
as the conditions are made known.
Members Of the Alexander committee
were we'll pleased with the result Of
the DAYS work. II was admitted that
carly in the day it appeared as though
there might be serious complications,
but that the settlement of the question:
that had been unexpectedly raised had
left the situation technically and act
ually stronger than it had been since it
became apparent that the II. B, Clafln
Company would have to go to the wall.
inquiry developed the fact that the
affairs Of the Clahn company are not
in as good a condition as might have
been expected. The shrinkage OF
assets, nominally placed at S44,000,000
will be very large in some items. For
example, it is said that of these assets
S10,000,000 is represented b. leases
and good WILL which under the cir
eumstances would bring a 'ery much
smaller amount il put " for sale.
Il is pointed out that the petition ask
ing for receiver did nct contain the
declaration usual in such instruments
iAst "the assets greatly exceed the in
Mbtedness."
will be some weeks before the sc-
tants on the books of the Clafin
pany will be in a position to report
Ming but progress. Two shifts of
81 rbS are at work twenty-four hours
checking and rechecking items,
s magnitude Of this work calls at
- lon To the fact that this will be
one Of the most expensive receiverships
in recent years.
Receivership to Cost Million.
Lawyers familiar with such proceed
ings estimated yesterday that the total
cost, when receivers, lawyers, account
ants and others had been paid of,
l. =. - mn mn r hfo