New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-09-18
BIG CLAFLIN STORE
HERE TO uQUIDATE
O'Neill-Adams Co. Said To
Be Ready to DiScon-
tinue Business.
DEBT $5,OOO,OOO;
$15O,OOO FOR MDSP,
Latter Creditors May Be Paid
in Full-Firms Merged
in 1906.

III l0UO.
The O'NeilI-Adams Company, which
occupies two blocks in Sixth Az. and
employs several thousand persons, will
soon be liquidated and the business dis
continued, according to a trustworthy
report in drygoods circles yesterday.
The liquidation is said to be the re-
suit Of the embarrassment of the II. B.
Clafiin Company, and was agreed upon
after a number of conferences between
the counsel for the receivers of the
Claf1in company, the noteholders' COM
mittce and the general auditors COM
mittee.
The ONeill-Adams Company is con-
trolled by the Associated Merchants
Company, the directors OF which held
a meeting yesterday and, il is said, for
mally approved the plans for liquidat-
ing its affairs. The directors will meet
again to-day.
1t is understood that the attorneys
for the receivers will formally apply to
the United States Court to-day for per-
mission for the receivers to complete
the arrangements for liquidating the
affairs Of the drygoods firm. The liqui-
dation, it is expected, will start next
week. and run for a period of about six
months.
Debt to Clahin S5,O0O.OOO.
The O'Neill-Adams Company. il -
said, owes the II. b. Clahin Company
approximately S5,000,000 and until re-
Gently the prospect Of receivershIp
was held to be imminent. o; the total
indebtedness of the O'Neill-AdamS
Company approximately $4,000 is for
merchandise, and it is understood that
assurances have been given that this
will be paid in full.
The liabilities o. the O'Neill-Adams
Company have been source OF con-
tention between the creditors of the
II. B. Clafin Company and the Asso-
ciated Merchants Company ever since
the failure. The creditors, it is under
stood, have insisted that the Associated
Merchants Company, by reason of it's
practical ownership of the drygoods
store. was responsible for its liabilities
in full.
An agreement has been reached,
however, under which. it is said, the
Associated Merchants Company will
turn over Sl,500,000 in notes to the
Clafin receivers as a guarantee that
the liquidation will bring not less than
that sum. II is understood that $780,
900 OF these notes will mature next
February, 100000 in May and the bal
aLce in 1916.
Aside from the S15O0OO OWING to
merchandise creditors. the whole of the
$5,000,000 indebtedness of the D'Neiil-
ADKINS Company is to the Fl. B. Claim
Company, and it represents, SO it is
said, money and merchandise, with in
terest. which was put into the dr.
goods firm through Mr.. Clahn.
The Surety Coupon. trading stamp
concern owned by the O'Neill-Adams
Company. will be purchased by the As
soclatcd Merchants Company for, il !"
said. approximately $50O.O0O The
stamp concern il considered one Of tie
most valuable of the O'Ncill-Adam5
Company's assets.
S2,O00,000 Stamp Concern.
While no formal estimate has beer
made Of the assets of the O'Neill-AG-
ans Company. it is believed that, COM
bining the stock on hand and the
stamp company, they will approximate
between 100000 and S2,500,000. Be.
cause Of the large business done by the
drygoOds company on the club credit
plan, the face value Of the outstanding
assets is large. Just how large is a
question, however. The bank indebted
ness. which. it is understood is partly
secured. is about S150.000
The suggestion that the business Of
the 'Neill-Adams Company be
liquidated would have been adopted at
an earlier date, it was said yesterday,
had it not been for the difficulty in
Gffecting a compromise Of the debt of
the company to the Claflin company.
This indebtedness is on the books of
the Clahin company as an outstanding
account.
Charles Rushmorc. of counsel for
the receivers; Joseph n. fairfield,
counsel for the noteholders' commit
tee, and Charles Wilkie. of counsel for
the Associated Merchants Company.
spent some time last evening prepar-
ing the final papers in the transaction.
None of them would talk except Mr..
Rushmore, whose brief speech was:
There will be no receiver for the
O'NeilIAdams Company" The censor,
he said, prohibited him from talking
further. although he would not deny
the liquidation plans.
Stores Merged in 1906.
The consolidation of the Adams Dry
goods Company and II. O'Neill & Co.
was effected on July 26, 1906, when
the present style was adopted. At the
time of the consolidation it was
claimed By them that net invest
nent of upward of S3000,000 had been
made. Of which amount 81 100000 rep
resented the II. O'Neill & Co. Inc, in-
tcrcst and Sl,S00,000 the Adams Dry
goods Company interest. OF this
amount S2,400,000 was to be controlled
By the Associated Merchants Company
and S600.O00 by Adams & Co. Debent-
ure and income bonds were issued BY
the company to the extent of $4,000
COO.
The Adams Drygoods Company was
& New York corporation, which came
into existence July 10, 1900. with all
authorized capital of S3,6O0,O0O, of
which Sl,S00,000 was per cent pre-
ferred cumulative stock and $1,SO0,000
common stock Shortly after the in
corporation of the Adams Drygood5
Company the Associated Merchants
Company, which had a capital Of about
100000, acquired 10000 shares of
the preferred stock and 5000 shares
OF the common stock.
Before consolidation O'Neili & Co.
vas one of the oldest retail drygoods
firms in this city. Il was founded in
1857. In January. 1903. John Clafin
and his brother-in-law, Louis Stewart,
obtained control. A few months later
!; was turned over to the Associated
Merchants Company. 1t retained its
Il -. -