The herald and news. [volume] (Newberry S.C.) 1903-1937, 1914-06-30

Mr Gia.liH Who ;s president OF both
the United l'ry Goods arG Associated
Narca@1s' compmies, resigned teose
Hcs;tons ,o3ay and !; /, understood
lat ea the H. b Glalin company
is reogEa..,zad is cor2ees on ~.!1!'
aola tGr farA.er cong ;es will be
severed. c rnelius ~ Bliss, son OF
the late New York dry goods mer-
chant of that name, was elected to
succeed Mr.. Clafiin.
According to Mr.. Clafin the failure
was due to the unprecedented shifting
o: trade centres in New York city
which compelled the concern to rely
mainly on its retail stores in otter
cities for it's profits.
Their rapidly extending business, .
he said" occasioned large capital re-
quirements which we have not been
able to meet"
Faile to Get Help.
The crash came today after vain
efforts had been made by Mr.. Claf n
to induce ]. P. Morgan & Co. and
other Wall street banking interests
to loan his money to tide over ais
embarrassment. These bankers, it was
learned, advanced the company sew
eral million dollars about two weeks
ago. but banks continued to p. ess
their claims until it became evident
that virtually the whole $20,000,OOO
would have to be raised to save the
company from failure.
Mr.. Clafin at a conference lasting
until after midnight last night with
]. P. Morgan, ]. S. Alexander, presi-
dent of the National Bank Of Com
merce, Albert H. Wiggin, president OF
the Chase National bank, and other
financiers, made a last appeal but the
decision went against him. The
bankers believed tle course outlined
today for a general reorganization was
the wisest
Today John C. Eames, vice presi-
dent of the H. B. Clafin company,
filed a friendly suit in equity against
it, alleging that it was unable at pres
ent to meet it's liabilities. This was
admitted by the company and Judge
Hand in federal court appointed as
receivers Joseph B. Martinbale, pres
ident of the Chemical National bank,
and Frederick A Juilliard, dry
goods merchant.
Another Petition.
Almost simultaneously petition
in involuntary bankruptcy was filed
by the three merchandise creditors
whose attorneys announced they
would seek the appointment of other
receivers.
In this action subpoenaes were is
sued for Mr.. Clafin, Mr.. Eames and
Dexter y. Force, treasurer o. tle
company, to appear and show cause
On or before July 2 why it should not
be adjudged bankrupt.
Immediate stres to protect the in
terests of note holders and the mer-
chandise creditors were taken 10y the
appointment Of committees represent
ing each. The note holders commit
tee, of which J. S. Alexander is c1air-
man, asks that all claims be deposited
with them, and similar request was
made in behalf CT the merchandise
creditors, called together by attorneys
for the Merchants Protective associa-
ton. Both committees announced they
would demand a voice in the reor-
ganization plans. Still another pro-
tcetive committee was organized un-
der the auspices of the Creditors Au-
dit and adjustment association and
the receivers are directed by the court
also to reorganize a creditors commit
tee to be chosen by all the creditors
at an early meeting, At tais meeting
the creditors will be authorized by the
court to vote whether the receiversnip
shall be continued and whether re-
ceivers shall be appointed.
It's Fourth Crisis.
The failure today marked the fourth
financial crisis of the H. B. Cl9fin
company since it was first establish
ed in this city in 1S43 with the firm
name of Bulkley & Clafin. 1t was
tided over financial difficulties in the
War Between the Sections when
Southern debtors did not meet their
Nor+borD OI1ioo+ionc. oooir tho manic