Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-06-26
CLAFL|NS MAY PAY
DOLLAR FOR DOLLAR
Plans Under Way for Reor-
ganization of Big Dry
Goods Company.
CREDITORS AND OTHERS
PROMISE COOPERATION
Assets Placed at $4,000, 900 Above
Liabilities Manager of Firm
Pledges Personal Fortune.

NEW YORK, June 26.-With assur-
ance of cooperation from the leading
dry goods firms. Jobbing and commits
sion houses and the organization Of
merchandise creditors and the holders
Of the firms paper. John Claflin today
began the task of reorganization of
the H. B. Claflin Company, which went
into the hands of receivers yesterday.
In a statement giving his reasons
for the receivership, Mr.. Claf1in said
regarding possible reorganization that
"a plan will soon be presented which
we hope will prove acceptable to both
creditors and to stockholders"
Representatives of houses in the re-
tail, jobbing and commission business
have expressed sympathy over the
Clafifn receivership. and all united in
a promise to cooperate with the COM
regaining a firm financial standing.
The impression prevails today in finan-
cial circles that the firm eventually
will pay 100 cents on the dollar II
creditors allow sufficient time for the
company to realize on Its assets.
Assets Exceed Liabilities.
The liabilities of the company are
placed at s34.OoO,OoO principally in the
form Of commercial paper. The assets
are placed at s44.000.000. and in addi-
ton John Claflin. 1t is stated. has
pledged his personal fortune of slO,-
100000. The outstanding paper is held
by thousands of banks throughout the
United States, and so widely scattered
as to prevent financial strain in any
one section which would result in
forcing the company to a hasty set
tlement and probably prevent reorgan-
ization.
A meeting Of the creditors to be held
IN about ten days will determine whether
the receivership shall be continued. and
if so. on what terms they shall be al
lowed to borrow to continue the bust
ness. At this meeting a committee of
creditors may be selected to cooperate
with the receivers
Causes for the failure as given by Mr..
Clafiin appear today to coincide with
the views expressed by leading dry
goods merchants. jobbers and commits
sion men.
city due to specialization in lines and
the growing tendency of manufacturers
to sell direct to retailers injured the
Claflin Company. which did a general
jobbing business. These conditions, Mr..
Clafiin explained, caused his company to
look for profits through the ownership
of or control of retail stores, resulting in
the necessity for extensive financing.
Maturities, SO, 100000 Week.
So extensive had this financing become
that 1t had reached a point where ma
turtles amount to about 100000 each
week. Recently, it Is said, country banks
began restricting their purchases Of
Clafiin and other commercial paper, and
the company round difficulty In taking
case of these maturities.
John Claain became a partner in the
H B. Clafiin Company soon after reach
ing his majority. and began to assume
responsibility about the time of the panic
of 1873 At that time, and again in 1907,
the firm was in financial difficulties, but
managed to weather them as 1t did dur
ing the civil war. The integrity of the
firm during the times when dollar Tor
dollar was paid was recounted today
by dry goods merchants and others as
evidence which led them to believe
REORGANIZATION would be effected II CO.
operation were extended.
Confer Regarding Bank Interests.
Members of the note holders pro-
tective committee appointed yesterday
to safeguard the interests of banks
having some $30.o00.000 of Claf1in
paper, went into session today at the
National Bank of Commerce. whose
president, J. s. Alexander. is chairman
| of the COMMITTEES.
A. C. Drew. secretary Of the merchan-
disc creditors committee. estimated to-
day that merchandise creditors have
claims of about 100000. TT is our
earnest hope" he said, that merchan-
disc creditors will deposit claims with
our committee at the earliest moment
Immediate cooperation is essential to
produce satisfactory results. In view
Of the public importance of this mat
ter this committee has consented to
represent creditors without cost to
| them"
| During the early trading in the stock
market there were four sales of United
Drygoods preferred. each amounting to
} 100 shares. The first was at 64A. the