The Sentinel=record., 1914-06-26

involuntary bankruptcy was filed by three merchandise creditors, whose attorneys announced they would seek the appointment of other receivers. In this action subpoenas were issued for Mir. Claflin, MT. Flames and Dex- ter N. Force, treasurer of the com pany. to appear and show cause on or before July why it should not be adjudged bankrupt.
 Steps to protect the interests of note holders and the merchandise creditors were taken by the appoint ment of committees representing each The note holders committee, of which J. s. Alexander is chairman, asks that all claims be deposited with them, and similar request was made in behalf of the merchandise cred
 tors, called together by attorneys for the Merchants Protective Associa- tion. Both committees announced they would demand voice in the re- organization plans. Still another protective committee was organized under the auspices of the Creditors Audit and Adjustment Association, and the receivers are directed by the court also to organize a creditors committee to be chosen by all the creditors at an early meeting. At this meeting the creditors will be au- ahorzed by the court to vote whether the receivership shall be continued and whether other receivers shall be appointed. The authority granted them by the court appears to give them virtual control of the company's business subject to the approval of the court.
 The failure today marked the fourth financial crisis of the H. B. Claflin Company since it was first established in this city in 1S43 with the firm name of Bulkley & Claflin. It was tided over financial difficult ties in the war between the states when southern debtors refused to meet their northern obligations, and again in the panic of 1883, and again in the panic of 1907, when it is under stood J. P. Morgan & Go. came to the rescue.
 From it's humble beginning of 70 years ago the concern grew to be the greatest dry goods enterprise in the country, and was the nucleus, to- gether with other enterprises, which John Claflin promoted, of the Asso- ciated Merchants Company, and sub- sequently the United Dry Goods Com pany, organized in 1909 with $51 ,000,- 900 capital stock It's commercial notes, it was remarked in Wall street today. were accepted throughout the country almost as the equivalent of currency, so strong was its credit
 In announcing the resignation of MT. Claflin, the board of directors of the United Dry Goods Company and the Associated Merchants Company, issued the following statement:
 This sewers the management of these last two companies from the stores in which Mir. Claflin has per sonal interest. MT. Claflin desires to devote his entire time to the affairs of the II. B. Claflin Company and the various retail stores in which he is personally interested. MT. Cornelius N. Bliss is one of the leading mer- chants of New York city and is con sidered as one of the best equipped men of this city for the position which he has accepted"
 According to MT. Alexander, the Claflin Company's difficulties were precipitated by it's endorsement of notes of the Claflin enterprises which, owing to general depression in the dry goods business, they were unable to pay at maturity. Every dollar or the claims in this class, he said, re- suited from such endorsements.
 Among the Claflin stores for which receivers were appointed today were the H. Batterman Company and the Bedford Compony, Brooklyn; the Montgomery Fair, Montgomery, Ala, and the Jones Store Company of Kansas City.
 An accurate list of all the Claflin enterprises was not available here Honipht