New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-29


ward to pledge themselves to any plan
the bankers committee may work out,
preferring to wait until they see what
President Alexander's committee pro-
poses TO do. Another thing that holds
many back is a desire to find out what
the chances are of the original makers
of the paper they hold meeting the
obligation at maturity.
Some of the makers arc good Tor
their notes beyond all question. Others
will have difficulty in paying 100 cents.
Under the circumstances, some OF the
bankers are inclined to wait and see
what the makers can do, this on the
chance of getting the face value OF
the notes, rather than put them into
any scheme in which they stand to lose
part of their principal.
Unload Doubtful Paper.
There is no such reluctance on the
part of those holding notes by DOUBT
full makers, so that, as matters stand,
the committee is assured OF getting
substantially all the questionable pa
per, while much of the good paper,
aside from that held in New York and
the larger cities, is held out.
To what extent the small note holder
will succeed in making trouble for the
Alexander committee and others who
are working to bring about settle
ment is large problem. The same
applies to the small mercantile credi--
tor. who, however, is coming forward
very generously to aid the mercantile
committee in Strengthening things out.
at would be impossible to give any
figures az this time as to the proper
ton of mercantile claims that have
come in with u.s." said James n. Rosen-
berg, Of Rosenberg. Lewis & Ball, coun-
sci for the mercantile creditors, but
can say that the results so far are
gratifying. Thus far we have met with
no opposition, and there is no reason
for expecting any. We are working
with the other interests to protect
everybody and aid in working out some
reorganization scheme that will be fair
TO everybody and assure a minimum
of loss"
What this plan would be Mr.. Rosen-
berg said no one could at this time
toll. there being so many factors in
volved, and any plan depending upon
the findings of the expert accountants
in this and the other cities where there
are ClaAin stores. II would be a con-
siderable time, he said, before it could
be expected that all this material
would be available.
In other quarters, it is said, these
reports will not be as good as might
/ be wished. not even in the parent house
/ of the II. B. Clafin Company. In trade
/ circles it is held that any inventory
! taken by Independent experts will show
/ large scaling off in prices compared
with the values at which many items
| have been carried on the Claflin books.
| This applies particularly to dead stock,
/ or stock that moves slowly, which in
| trade circles is known as greens" and
/ to the real estate holdings, which at a
/ sale would not bring the prices at
which they are carried on the books.
How big this item will be no one can
at present say, but it will materially
reduce the surplus over direct liza
/ bilities of the Clafin Company, as
shown in recent inventories, though it
will show that the house, aside from
| contingent liabilities, is handsomely
solvent
/ So far as any plans have been con-
sidered. the one favored most looks to
/ the creation of system on the lines
of the United Cigar Stores Company,
with the Clahin Company in this city
as the buying agency. The trouble
with this scheme, however, is that
while the cigar business is standard
/ lied the drygoods business is not, and
/ the $1,000 10 $1,000 a year manager
/ that can be depended upon to run a
/ cigar store is not Che type TO be
/ placed in charge of big department
in store, much less in charge of the
! store itself. II any way can be found
] -. 4. = ~ he cd
/ the chances favor its being tried out.
This scheme contemplates Mr.. Olaf
! lin remaining at the head Of the house,
/ in charge Of the mercantile end, with
/ q representative OF the bankers, who
must finance the reorganization, look
/ ing out for the money affairs of the
| concern. 1t also involves the winding
/ up of the II. b. Clafin Company as a
/ jobbing house with a large force of
men on the road at all times selling in
direct competition with the manufact-
urers of many of the lines they carry.
The bankers committee will meet
again to-day, and may have some plan
TO announce to the noteholders. The
mercantile committee will have no fur
Their formal conference until some COM
mon basis to work from has been es-
tablished. There is no cessation of ac-
tivities in the Clahin house. Goods are
being received much as formerly, the
position Of the seller delivering goods
now being better than that of the
maker or agent who sold last week, as
the receivers are responsible now and
sure OF paying 100 cents on the dollar
while for goods delivered on the day
Of the reeeiyership the sellers will
have to wait for their money. Goods
are not going out in as large volume
credits being more closely scrutinizeC
than formerly.
"The Dry Goods Economist" the or
gan of the trade, is out with an appea
ir its current issue for merchants gen
orally 20 take a cool view of the Olaf
lin troubles and not be stampeded int
any needless sacrificing of values.
1.-THE good merchant" says the Econ
omist, should not engage in any
slaughter Of merchandise values fol
fear that some competitor may b,
tempted TO start things in his town
IF he is engaged in business in s
city where one of the stores affiliated
with the IL. B. Clafin Company i.
quietly conducting its business, he ma,
properly show substantial evidence OF
his good will by refraining from com.
ment and from attempts 10 take com.
petitive advantage Of the event, through
newspaper publicity or otherwise.
"This is a period when all good stores
should stand together. Indeed. il NAV
be wise for the leading drygoods mer.
chants of each ommunity-particu-