New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-25
Rumors Intensity FURRY
in Street Over Slump
in Market.
DIRECTORS SILENT,
POSTPONE MEETING
John Claflin, President OF
the Concern, Confers
in Financial District.
BANKERS WILL AID
Chain of Drygood Concerns
Will Receive Assistance
Over Dull Time.

Shortly after noon yesterday, when
it became known in Wall Street that
the directors meetings Of both the
United Dry Goods Companies and the
Associated Merchants Company had
been adjourned for week. the pre-
ferred stock of the former company
opened on the Stock Exchange at 931z.
Two more sales each of 100 shares
followed, at 9O2s and 81.
An hour later there was another sale
of 100 shares at 50, the last for the
day. The transactions in that small
aggregate of shares marked decline
of l413 points from the last previous
sale on the Exchange. The decline was
accompanied by rumors that took many
forms, but finally brought in the name
of the H. B. Clahin Company.
So circumstantial were the stories
that after the close Of the market the
stock of the United Dry Goods Com
panies was quoted at 25 bid, so offered,
( and the common shares, which last
/ changed hands at SO, on June 20, were
offered at 65. with the best bid 20.
There was no trading in the shares OF
the H. B. Clahin Company, which are
listed on the Exchange but seldom
dealt in.
The United Dry Goods Companies,
the only one of the three most import
ant corporations in the ClaAin system
whose stocks were traded in, was al
together free from the implications in
the rumors. They concerned the II. y.
Clahin Company alone. but though
there was the highest authority for the
statement that no trouble had touched,
or could come, to the United company
the confusion of rumors made il a suf-
ferer so far as the quotations for its
stocks were concerned.
Like the United company, the As
sociated Merchants Company is alto
gether free of suspicion. It's name
was brought into the story, wholly
because it owns a majority Of the
stock of the H. B. ClaAin Company.
Stock control of the Associated Mer-
chants Company is owned, in turn,
by the United Dry Goods Companies.
The H. B. Clahin Company is the
corporate successor of the famous
wholesale drygoods house of the same
name, founded by the father of John
Clafin, who is now head Of the sew
ersl companies in the Clafin system.
When John Clahin formed the
United Dry Goods Companies in 1909.
to take care of his numerous dry
goods enterprises, the old company
was taken in as the wholesale de-
partment of the combination, which
embraced a number of department
stores in this city and in Newark.
Baltimore, Buffalo, Minneapolis and
Louisville, besides the holding com
pany. The II. B. Clahin Company had
been organized with a capitalization
of S9,OOO,O0O of which S3,S29. 100 was
common stock, $2,60O,3OO first pre.
ferred, bearing per cent cumulative
dividends, and $2,570,OOO second nrc.
ferred, with 6 per cent cumulative
dividends. 1t was successful from tho
start.
The preferred stocks paid their full
dividends and the common disburse.
ment ran as high at times as.9 nor
cent, never falling below 6. Il maid
6 per cent in each of the last ,bros
years.
Mr.. John Clafin had long corfe,
ence with Mr.. John Pierpont Morgan
late in the afternoon, but neitbsr
would say anything for publicatio,
There was a general impression in tbo
street that the great companies woro
IN good condition and could bo,o
plenty Of assistance if they neeSoS
any.