Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-25
CLAFLIN CREDITORS
HAVE FINAL PLAN
FOR REORGANIZATION
Creditors Will Get IS Per
Cent. in Cash and Balance
in Interest-bearing Notes.
New Corporation.

Final plans for the reorganization of
| the II. b. Clafin Company. which re"
Gently went into the hands of receivers.
have been completed and will be pre-
sented today for final approval by the
Merchandise Creditors Committee, which
will meet in New York James s. Alex
ander, president of the National Bank
of Commerce, is chairman of the Note
holders Committee which formulated
the plans
Failure of the Clanin Company was
one of the worst blows received by the
business world for many years. The
company operated chain of % large
stores throughout the country and
millions of dollars of its paper was out
standing at the time of the collapse. A
large amount of this paper was held in
Philadelphia.
The reorganization plan provides that
the Clafiin creditors shall receive Is per
cent. in cash and the balance in three
year interest bearing collateral notes
of newly organized corporation, re-
newable for another two years.
This new company will be known as
the Mercantile Stores Corporation and
1t will acquire the assets of the H. B.
Claflin Company, the assets of John
Clafin or such portion Of them as may
be deemed by the committee to be ad-
vantageous, including all of the capital
stock of the q companies now in the
hands Of receivers, all of the capital
stock of MCCraerv q of PITT CHURCH.
OF the wilkes-Barre Dry Goods Com
pany, and of MacCallum & Clouthier;
$2,29O,650 par value of the capital stock
of the Scruggs, Vandervoort Barney
Dry Goods Company C2,1o3,650 of COM
mon and s1S7,00o Of preferred), 100000
par value of the capital stock of the
Higbee Company 100000 par value COM
mon capital stock of James II. Durham
& Co., $6,26SOOO par value Of the COM
mon stock of the United Dry Goods
Companies, and other assets and equi-
ties owned by John Clafin, which have
been transferred to representatives of
the noteholders' committee for the benefit
of the Mercantile Corporation.
THE NEW CORPORATION.
The Mercantile Corporation will cause |
to be organized new corporation to be |
known as THE II. b. Clahin Corpora |
ticn," to carry on such portion of the |
wholesale business now conducted by the |
Fl. B. Clafiln Company, a New Jersey |
as may be deemed by the board |
Of directors to be advisable. 1t is con-
-emplated that there will be transferred
to this new corporation approximately
'6, 100000 of assets OF the present H. B.
Cla1in Company In exchange for its
capital stock, all of which will be owned
~ the Mercantile Corporation. The value
If the assets transferred to the H. B.
Clafin Corporation shall be as agreed
Upon by its board OF directors and the
BOARD Of directors of the Mercantile Cor
,oration.
The notes will be dated December 1, 1914,
md will be issued In "a separate series,
me series to be delivered to the general
reditors OF the II. 3. Clafin Company
md each of the other % series to be de-
lvered to the holders of notes executed
" one OF the several companies and in
orsed by the II. B. Clafiln Company.
The collateral trust notes will be Sc
ured by stock collateral to be deposited |
nder trust agreement with the trus-
ees to be selected by the committee. The
otes received by the direct II. 3. CIafin |
company creditors will be secured by
ne-sixth OF the capital stock of the
roposed H. B. Clafiin Corporation. tho
'holesale trading company.
Each of the remaining % series of coll
lteral trust notes. being the notes re-
elVed by the noteholders. will be Sc
lred by the entire capital stock OF the
articular company. which executed the {
otes to be exchanged for the new notes
REPORT OF RETAIL STORES.
A summary of the assets and liabilities
20 of the % stores that executed notes
favor of the II. B. Clafin Company
blows: