The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-06-26
Receivers Are Appointed
for HI. B. Claflin Company
CONTINUED from Page One,

itors were taken by the appointment of
committees representing each. The note
holders committee, of which ]. S. Alex
ander Is chairman, asks that all claims be
deposited with them and a similar request
was made In behalf of the merchandise
creditors, called together by attorneys for
the Merchants Protective association
Both committees announced they would
demand a voice in the reorganizat ton
plans. Still another protective commit
tee was organized under the auspices of
the Creditors Audit and Adjustment asso-
citation, and the receivers are directed by
the court also to organize a creditors
committee to be chosen by all the cred
itors at an early meeting At this meet
ing the creditors will be authorized by the
court to vote whether the receivership
shall be continued and whether other re-
ceivers shall be appointed The authority
granted them by tho court appears to
give them virtual control of the com
pany's business subject to the approval
of ths court.
COmpany's Fourth Crisis
The failure today marked the fourth
financial crisis of the H. B. Claflin COM
pany since 1t was first established in this
city in 1S43 with the firm name of Bulk
ley & Claflin. 1t was tided over financial
difficulties In the war between the states
when southern debtors refused to meet
their northern obligations; again in the
panic of 1878. and again in the panic of
1907, when 1t is understood J. p. Nor
gan & Co. 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. together with other en-
terprises which John Claflin promoted,
of the Associated Merchants company,
and subsequently the United Dry Goods
company, organized in 1909. with s51 ,0O0,-
000 capital stock.
Its commercial notes, 1t was re-
marked in Wall street today. were ac-
cepted throughout the country almost
as the equivalent of currency, SO
strong was It's credit.
Directors Issue Statement
In announcing the resignation of Mr..
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 the
last two companies from the stores in
which Mr.. Claflin has a personal in
terest. Mr.. Claflin desires to devote
his entire time to the affairs of the
H. H. Claflin company and the various
retail stores in which he Is personally
interest Mr.. Cornelius Bliss is one of
the leading merchants of New York
city and is considered as one of the
best equipped men of this city for the
position which he has accepted"
According to Mr.. Alexander the
Claflin company's difficulties were pre-
cjpitated by its Endorsement OF notes
of the Claflin enterprises. which, ow-
ing to general depression in the dry
goods business. they were unable to
ray at maturity. Every dollar of the
claims in this class. he said, resulted
from such Endorsement
Among the Claflin stores for which
receivers were appointed today were
the H. Batterman company and the
Bedford company, Brooklyn. the Mont
gonery Fair, Montgomery. Ala. and
the Jones store company of ST. Louis
An accurate list of all the Claflin en-
terprises was not available here to-
hight.