The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1914-06-25
Dry Goods House of III. b.
Claflin & Co., i'm Hands
of a Receiver
ESTIMATED LIABILITIES
ABOUT S35, 900, 600
In Addition to Its Large Business in
Metropolis Concern Controlled %
Other Dry Goods Houses-En Endorsed
Too Many Notes.

NEW YORK, June Receivers
sale dry goods establishment of the II.
b. Clatlin Co. The associated com
panIes were not involved.
The action followed "A suit filed i'm
the federal district court. The re-
Ceivers arc Joseph b. Martindale. pres
ident of the Commercial National bank
and Frederick a. Juillard. a member
of the firm of A. b. Juillard & Co..
under bond of 100000 each.
1t Is understood that the Claiin Co.
controlled about y dry goods firms
throughout the United States. distinct
and apart from those affiliated with the
United Dry Goods Co. Between $500
and 5000 banks held papers of these
stores. twenty-five or 80 of the larger
discount banks in this city are credit
ors for large amounts
The liabilities are estimated ut about
So, 100000. The assets are 100000
600. The H. B. Clafiin Co, of which
John Clahin is president, was organized
in 1890 to conduct vast wholesale
dry goods business Ii is controlled IN
the Associated Merchants Co, which
is in turn controlled by the United
Dry Goods Co
The United Dry Goods Co. was in
corporated under the laws OF Delaware
May p, 1909, to consolidate the dry
goods interests Of John Claflin in New
| York and other cities.
The receivership caused q furry in
the financial district although rumor.
that something was impending was rife
yesterday. 1t was confidently asserted
] -.s, L -
| subsidiaries affiliated with the interest.
would be taken care of. The appoint
| ment of receivers is ascribed to an
I over extension of credit.
! 1t was thought none of the proceed
/ ings would affect the United DRY
\ Goods Co.
note holders committee has beer
I formed with ]. +. Alexander presiden
OF the National Bank of Commerce, a
chairman, which will endeavor to for
mulate some plan for readjusting tn,
Ciafiin financial affairs. 1t is said tn,
company did not borrow heavily on if
own paper, but endorsed notes mad
by interior merchants for goods sold
The inability of these interior house
and the inability of the H. B. Claflil
Co. to pay off the matured portion i
ascribed to general duh business con
ditIons, to decreased sales and to slo,
collections
Unless blocked by creditors reol
ganization of the failed firm is cor
templated, according to a statement i.
sued by john Clafiin, the president
New York banks are said to have mad
. large advances to the Clahin compan
recently with the hope of avertin
financial embarrassment. New Yor
banking interests have agreed to offe
such assistance as may be necessary t
some Of the Independent stores. Intel
ested merchants were closeted with .
II. Morgan and other bankers for houl
in attempt to avert the failure. 1t
understood that $30,000,000 was ne,
essary.
Announcement was made this afte
{ noon that all of the so-ealled Clahi
stores, strickly speaking, would b
closed pending adjustment of the con
pany' s affairs
The failure is perhaps the most in
portant III the history of the dry good
: trade in this country.
New y York bankers predict that TIL
chief end and perhaps only general e
feet win be u temporary demoralizatio
in the dry goods trade.
Influential banking interests sal
! that in their opinion the retail house
! in Clafiin s control were financial
, sound.
All were inclined to describe ii
! crash, however, as the biggest me
: camille disaster the country has evt
. known.
John CIaflin has been associate
with the dry goods business for MOI
: than 40 years.