Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-06-25
RECEIVERS FOR
BIG CLAFL|N CO.,
Of MANHATTAN
Need of Capital Blamed for
Trouble, Which Will Result
in Reorganization.
ASSOCIATED COMPANIES
ARE NOT ENTANGLED
Firm Is One Which Has Been FL
nancing Retail Houses
Throughout Country.

NEW YORK, June 25.-Receivers
were named today to the vast whole
sale dry goods establishment of the
Fl, B. Clihin Company. Associated
companies are not involved.
The receivers were named as a re-
suit of a suit in equity filed in the
district court. Judge Learned Hand
named as receivers Joseph B. Mar
tindale, president of the Chemical
National Bank. and Frederick A.
Juilliard. member of the firm of
A. B. Juilliard & Co., under bonds of
100000 each.
The H. B. Claflin Company, of
which John Claf1in is president, was
organized in 1890 to conduct whole
sale dry goods business. 1t is con-
trolled by the Associated Merchants
Company, which is in turn controlled
by the United Dry Goods Companies.
The United Dry Goods Companies
was incorporated under the laws of
Delaware May q, 1909 to consolidate
the dry goods interests of John Claf-
lin in New York and other cities. The
company acquired in exchange for
Sg,S13,000 of it's common stock like
amount of the capital stock of the
Associated Merchants Company, Civ
ing it a majority, the latter already
holding control of the following COM
papies:
- Companies Controlled.
The H B. clafllin Company, James
McCreery Company, O'Neill-Adams
Company C G. Gunther Sons, all of
New York; ]. n. Adam Company, of
Buffalo, and Stewart and Company, OF
Baltimore. The companies also bought
outright from John Clafilin the en-
tire business of Hahne Co, OF New.
ark; Powers Mercantile Company, OF
Minneapolis; William Hengerer com.
pany, of Buffalo, and the stewart Dry
Goods Company, of Louisville, hy' IN
June. 1910. control of Lord ana Iaylol'
of New York city, was acquired
The officers are: John Claflin, pres
Ident: Louis Stewart, vice-president
and treasurer; j. c. Eames, second
.yice-president, and directors, Louis
Stewart, Howland Davis, George +.
Crane, Ernest Stauffen, Jr: Jonn a.
Stewart. w. NJ. Barrett. John ClaIllli
and Thomas F. Bayard. The totai net
income for 1918 was $2,OS3, 1Sl, dlvl-
dends on preferred stock being $to4,-
s94 and on common $1154, 200, final
surplus of S174,69S. The percentage
earned on preferred stock was 1873
rel cent and on common stock 9.2l
ner cent. The assets included 9S.lol
shares capital stock of the Associated
Merchants Company. the comolneo
net tangible assets of Hahne Co,
the William Hengerer Company, the
Powers Mercantile Company and the
Stewart Dry Goods Company the
cash of the combined companies, the
securities of Lord S Taylor and casn
available for further investment
FURRY In Financial District.
Almost simultaneous with the fling
Of the suit in equity, John Muller,
William Worth and Albert F. Berg
enr. all of this city, filed an lnYolun-
tarv petition in bankruptcy against
the firm The company owes Muller,
according to this petition, $7S1. Worth
Is a creditor for s3,191 while Berg
ner's claims are placed at S2S,3fO.
The receivership caused furry IN
the financial district. although rumors
that something was impending were
rife all day yesterday. 1t was as
serted in banking circles that the
many retail subsidiaries affiliated
with the interests would be taken
care of
The appointment of receivers Is
ascribed to an overeXtension of
credits.
A suit of equity for 5000 was also
filed against the Defender Manufae-
turing COMPANY, sdiu W DC a D"D
sidiary of the Fl. B. Claf1in Company.
The complainant is William P. Odell.
The same receivers were appointed.
with bond in this action of $oO,OOO
each.
None of the proceedings. it was
said, would affect the United Dry
Goods Company, which controls the
Associated Merchants Company,
holding the majority of the stock of
the H. B. Clafiin Company. A note
holders committee has been formed.
with ]. S. Alexander, president of
the National Bank of Commerce, as
chairman, which will endeavor to
formulate some plan for readjusting
the Clafiin Company's financial af-
, fairs.
Y Equity Proceedings Friendly.
Muller and others, who insti-
tuted the involuntary proceedings,
allege that the Clafiin concern COM
mitted an act of bankruptcy in con-
senting to the receivership in the
equity proceedings. They allege
further that the concern has trans
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