The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-06-26
In Made to Follow the Parent
Organization.
OWED THOUSANDS OF BANKS
Claflin Paper Is Scattered All
Over the Country.
II Ia the Fourth Crisis In the
Company's Affairs.

New York. June 26.-Although plans
for a reorganization of the H. D.
rraflin company which failed yesterday
~,ith liabilities of $34, 900, 900, had not De-
come definite enough for the issuance
of any statement today. confidence IN
the ultimate solvency of the company
became general. Results OF meetihss
Of committees of merchandise creolIorS
and the note holding creditors were ell
couraging.
n Drew secretary of the mer-
cband;se creditors committee, ex-
nressed the hope that by lmme0iat
co-operatiCn the situation coulo De
met. The claims of the mercnanoase
creditors amount to about AL,ovO,voU,
according to his estimate: inns prinse
the total estimated liaDiiitles ol 'us
failed firm to $36,O0O,0OO. James ..
Alexander. chairman of the note holo-
ers' committee, announced tnat ~ ~
this afternoon approximately $o'ovo'
600 or between 25 and 81 per cent u
outstanding notes of the Clanln conl-
pany had been deposited or INTENTION
70 deposit had been signified. 1t was
understood that satisfactory progress
had been made in the preparation U!
nlans for conserving the interest OF
the note holders.
New York, June 26.-An lnvolun
tarv petition in bankruptcy was nleo
here today against the Defender Mig.
company Of this city, makers OF IN
6erwear a subsidiary of the II. b.
Claflin company, which 1alled yester-
day. Receivers in equity proceeolMsS
were appointed at the time OF the
Claflin failure, but it, was contended
that the company was solvent. Cred
itors now seek to have 1t adluoeeo
bankrupt. Counsel for the Claim IN
terests- it is understood, will oppose
the petition.
Members of the note holders pro-
tective committee appoined TO saIe-
gnard the interests of banks having
some $3O,OOO,OOO of Clafiin paper,
went into session today at the Ma
tional Bank of Commerce, whose
president, ]. s. Alexander. Is chair
man of the committee. A.. &. Drew
secretary Of the merchandise credt-
tors, committee. estimated today that
merchandise creditors have claims OF
about $2.OOO,OO0.
"It is our earnest hope" he said.
that merchandise creditors will de-
posit claims with our committee at
the earliest moment. Immediate CO.
operation 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.
During the early trading In the
stock market, there were four safes OF
United Dry Goods preferred, each
amounting to 100 shares. The first
was at 64A, the second at 64, the
third at 63, and the fourth at 62. AT
the close OF the market yesterday the
stock was quoted at IS.
The United Dry Goods companies
have stock control OF the n. b. CldA-
lin company.
Plans for Reorganization.
New York, June 26.-With assurances
of cooperation from the leading dry
goods firms, jobbing and commission
houses and the organization OF mer-
chandise creditors and the holders OF
the firms paper, John Claf1in today
the H. b Clafiin company. In a
statement giving his reasons for the
receivership, Mr.. Clafiin said. regard
ing possible reorganization that a
plan will soon be presented which we
hope will prove acceptable to both
creditors and stockholders"
Representatives of houses In the re-
tail, jobbing and commission business
have expressed sympathy over the
Clafin receivership and all united In
a promise to cooperate with the COM
rany to the fullest possible extent. in
regaining a firm financial standing.
The impression prevails today in finan-
cial circles that the firm will eventual
" pay 100 cents on the dollar If cred
itors allow sufficient time for the
company to realize on it's assets.
The liabilities of the company are
placed at $34. 100000 principally in the
form of commercial paper. The assets
are placed at s44 100000 and in addition
John Claflin, it is stated, has pledged
his personal fortune of $10,000,00O. The
outstanding paper is held by thousands
OF banks throughout the United States
I-l~~ -vr{
a financial strain in any one section
which would result in forcing the COM
pany to a hasty settlement and prob
ably 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-
shall be allowed to borrow to continue
the business. At this meeting a COM
mittee of creditors may be selected tc
Cooperate with the receivers.
Causes fer the failure as given by
Mr.. Claflin appear today to coincide
with the Views expressed by leading
dry goods merchants, jobbers and com.
mission men.
Changes in the trade conditions OF
the city due to specialization in lines
and the growing tendency of manu-
facturers to sell direct to retailers in
Jured the Claflin company which did a
general jobbing business. These con-
ditions. Mr.. Claflin explained caused
his company to look for profits
through the ownership of or control
of retail stores, resulting in the neces-
sity for extensive financing. So ex-
tensive had this financing become that
it had reached point where maturi-
ties amounted to about $4,000, 900 each
week Recently. it is said, country
banks began restricting their pur-
chases of .Tlaflin and other commercial
paper and the company found diff
Guilty in taking care Of these maturi-
ties - 4 -