The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-30
JUDGE TO END WAR
OF CLAFLIN LAWYERS
Disputes Over Representing
Creditors Will BE Settled
In Court To-day.
LONG CONFERENCE FAILS
Bankers Hear Of Plan to Make
First Payment Of 40 Per
Cent. Cash.

The disputes among the lawyers for the
mercantile creditors OF the H. II. ClafIn
Company, which threaten to delay the re-
organization OF the company and its sub
sdiary stores win be settled In court this
morning by United States District Judge
Hand protracted conference yesterday
afternoon In the Judges chambers failed
TO bring about a settlement
Inc dispute rs to who shall no the coun-
sci Tor the general merchandise creditors
committee appointed at last FRIDAYS
meeting was brought to tho attention of
Jdge Hand by Rosenberg, Lewis & Ball.
who were elected counsel to the com
mfttee on Monday. excluding Saul 3.
Myers who has been counsel for creditors
holding about 100000 worth OF claims
and represented by the Creditors Audit
and Adjustment Association.
Rosenberg Hurries Back.
James n. Rosenberg hurried back from
the country a day ahead OF his expecta-
tons because Of Mr.. Myerss threat backed
by Frederick W. Lehman Of ST Louis.
VINO VIII he here to-day. and George Cor
don Rattle. also Of counsel to the minority
merchandise creditors. to ask the court
for separate committee with its own
counsel Mr.. Rosenberg brought the mat
ter To head at once by asking Judge
Hand for an order Of ytervcntion which
would make his commttee-the majority
OF tho general merchandise creditors COM
mittec-a party to the equity suit and
the only one to be Officially notified Of
any action by the receivers
Earlier IN the day Judge Hand ap-
proved the report OF Special Master
George e. Holt. before whom the genera,
meeting Of the creditors Of the H. r.
Claiiin Company was held on last Friday
En- Judge Holt included In his report the
minutes ~ the meeting as we'll as Of the
meeting Of the Defender Manufacturing
Company, also a Clafin enterprise. and
the decision Of both sets Of creditors to
have the appointment of Joseph 3 Mar
tndale and Frederic \. Juilliard. tempo
rary receivers made permanent The
court signed an order 10 that effect.
The receivers thus have authority To
continue the present business OF tho
Clahiu company. hut there is n provision
In the order which forbids them to bor-
row money without a special grant OF the
court. MeSsrs. Martlndale and Julliard
will now be enabled to put into operation
tho plans for the continuation Of the com
pauNs business which they have made
since taking temporary charge. II Is ex-
pected that the business of tho company
will Improve considerably with the fail
buying here. Preparations will he made
20 meet the demands OF tho buyers
II WAS stated authoritatively yesterday
on behalf ~ tho Clafin noteholders' com
mittee. which is working out a plan for
the rehabilitation OF the ". n. CIahln
Company and the twenty seven sub
sidiary stores throughout the country,
that the plan would not he ready for at
least n week The notehoders. who hoH
more than three fourths OF the Clanin In
drbtedncss viii have tn" final say In re-
gard 90 the plan. hut tho mercantile credit
tors are expected to cooperate with them.
despite the recent tangle among their
lawyers.
Talk Of 40 Per Cent. Cash.
Mr.. Clahin will have no plan ~ his own.
the committee maintains, and hie only
activity In the matter has been by way
Of explaining certain items in the re-
celvers statements now AT hand
Some Of the bankers holding Claiiin
paper. however. have been informed that
the plan being considered by the note
holders committee FOR the reorganization
Of the Clain business enterprises pro
Vides for An Initial cash payment Of per
hipS 10 per cent. the remainder OF the
Indebtedness To he covered by stocks or
bonds I'm a new corporation which. II Is
proposed viii take over the Claim whole
sale house and the retail stores that will
be kept open.
I'm order to make the FIRST payment OF
cash u will he necessary for John Clahin
to raise about $4,000. o00,
AZ Mr.. Clann has promised to spend
his entire personal fortune to relisbilitate
the business, II was said yesterday. he
could probably raise without unreasonable
difficulty the amount needed II the plan
now under consideration In adopted.