The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1914-06-26
RECEIVERS ARE NAMED
FOR WHOLESALE COMPANY

New York, June 25.-Receivers were
named today for the vast wholesale
drygoods esta enlistment of the H B.
Clahin & Co. Associated companies
were not involved.
The receivers were named as q, re-
suit of a suit in equity filed in district
court. Judge Learned Hand named as
receivers Joseph B. Marttndale, presi-
dent Of the Chemical National bank
and Frederick A. Juilliard, a member
Of the firm Of A. B. Juillard & Co,
under bonds Of s500,000 each.
The H B. Clafiin Company OF which
John Clafiin is president, was organ
ICED in 1890 to conduct a wholesale
drygoods business. It is controlled by
the Associated Merchants Company,
which is in turn controlled by the
United Drygoods Companies.
The United Drygoods Companies in
corporated under the laws of Delaware
May 81, 1909, to consolidate the dry
goods interests of John Clafiin in New
York and other cities. The companies
acquired in exchange for $9,S13,000 Of
its common stock a like amount of
the capital stock of the Associated
Merchants Company, giving. it a ma
jority, the latter already holding con-
troll of the following companies:
The H B. Claf1in Company, James
NIcCrery Company, O'Nein Adams
Company, G. G. Gunther Sons, all Of
New York; j. y. Adam Company Of
Buffalo, and Stewart & Co, of Balti-
more. The companies also bought
outright from John Clafin the entire
business of Hahne & Co, of Newark;
Powers MeI camille Company, of Min
neapOlis; William Hengerer Company,
Of Buffalo, and the Stewart Drygoods
Company, of Louisville, Ky. In June
1910, control of Lord & Taylor of New
York City, was acquired
The officers are: John Clafin, pres
ident; Louis Stewart, vice president
president and directors, Louis
Stewart, Rowland Davis, George +.
Crane. Earnest Staten, Jr., John a.
Stewart, w. NJ. Barrett, John Clafiin
and Thomas F. Bayard. The total
net income for 1913 was $2,0S3,7S1.
dividends on preferred stock Icing
ST54893, and on common s1,154,20O, a
final surplus of S174,695. The per
centage earned on preferred stock was
1928 per cent and on common stock
921 per cent. The assets included
9S131 shares Of capital stock of the
Associated Merchants Company; the
combined net tangible assets of Hahne
& Co, the William Hengerer Com
pany. the Powers Mercantile Company
and the Stewart DrygoOds Company,
the cash of the combined companies,
the securities of Lord & Taylor and
cash available for further investment.
Almost simultaneous with the filing
of the suit in equity, John Muller,
William W orth and Albert F. Bergner,
all Of this city filed an involuntary
petition in bankruptcy against the
firm. The company owes Muller, ac-
cording to this petition, 1871. Worth
is a creditor for S3,131, while Berg
ners claims are placed at $28,370.
The. reCeiVership caused furry in
the financial district, although rumors
that something was impending were
rife all day yesterday. 1t was asserted
in banking circles that the many re-
tail subsidiaries affiliated with the in
terests wuold be taken care Of
The appointment of receivers is
ascribed to an over extension Of
credits.
A suit of equity for $500 was also
filed against the Defender Manufac
turing Company siad to be a subsi
diary of the H. B. Claflin Company.
The complainant is William P. O'Deu.
with a bond, in this action, OF $4,000
each.
None Of the proceedings, it was said,
would affect the United Drygoods
Companies, which controls the Asso-
ciated Merchants Company, holding
the majority Of the stock of H; B;
CIaflin Company. A note holders
committee has been formed with J. S.
Alexander, president of the National
Bank of Commerce as chairman,
which will endeavor to formulate
some plan for readjusting the Claftin
Company's financial affairs.
Muller and others who instituted the
involuntary proceedings. anege that
the Clafin concern committed an act
Of bankruptcy in consenting to the
receivership in the equity proceed
ings. They allege further that the
corcern has transferred certain prop
erty TO preferred creditors. The
equity proceedings are friendly the
first being instituted by John c.
Eames. who is a vice president of
the company.
The liabilities of the firm. repre-
scented by commercial paper held all
over the country, are estimated at
$25.00000O.
1t is said the company did not Dor
row heavily on its own paper, but en-
dorsed notes made by interior mer-
chants for goods sold.
The inability of these interior
houses and the inability of the H B
Claflin Company to pay off the ma
tured portion of these notes is
ascribed to general dull business con-
ditions; to decreased sales and to slow
collection.