New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-03
NoteholderS' Committee
Sets Date for Final Action
on $3O,0O0,0OO Debt.
DEPOSIT PLAN TO
END JULY Is, 1915
Agreement Calls on Bankers to
Release Paper to Committee
to Act as Seems Best.

The II. b. Claflin Company noteholders'
committee, of which James S. Alexan-
der, president of the National Bank Of
Commerce, is chairman, gives itself
until July IS, 1915, to declare its in
tention of collecting OF otherwise ad-
justing 100000 worth of ClaAin
paper, without reorganization of the
affairs of the ClRfin company, or TO
formulate a plan of reorganization.
In the deposit agreement, which was
prepared yesterday and will be sent
to-day to the 5000 banks which hold
the notes, that date was named as the
time when, if neither plan had been
formulated by the committee, the hold
ers shall be entitled to demand the
return of their notes.
Zach bank is to send its Clafin notes
10 one of the repositories of the com
mittec and "irrevocably appoint the
committee his agents and attorneys"
20 act as seems best in it's judgment.
The eighth article of the agreement
reads:
Bankers on Committee.
"None Of the committee or the de-
pository shall be personally liable for
any act, omission, error of judgment
or il or any agent or counsel selected
hereunder in good faith, but shall be
respectively liable only for his or its
own respective wilful mslfeasance or
neglect"
Some OF the most prominent bankers
in the country serve on the committee.
They viii receive no remuneration. In
addition to James s. Alexander, chair
man, the members are Lewis L. Clarke,
president of the American Exchange
National Bank; Rowland Davis, Of
Blake Brothers & Co; Seward Prosser,
president OF the Liberty National
Bank: william T. Elliott, president Of
.he Central National Bank, Of Phila-
ielphia; Charles W. Folds, of Hath
away. Smith, Folds & Co, of Chicago;
Ernest A. Hamill, president of the
Corn Exchange National Bank, of Chi
cago; Philip Stockton, president Of the
Old Colony Trust Company, of Boston,
and Festus J. Wade, president Of the
Mercantile Trust Company, Of ST. Louis.
The Bankers Trust Company, Of 10
Wall st, is named as depository, and
its agents are the Northern Trust Com
pany, of Chicago; the Mercantile Trust
Company, of St Louis; the Girard
Trust Company, of Philadelphia, and
the Old Colonel Trust Company, OF
Boston.
In a circular which will accompany
the deposit agreement the committee
sizes up the situation as follows:
The Fl. B. Claim Company had out
standing no direct or primary obhga-
tons upon notes executed by 1t, and,
excluding its merchandise indebted
ness, obligations upon leases and let
tiers Of credit, its sole indebtedness -
its contingent liability upon approx
nately S3O, 900 worth Of notes,
which are commonly known as re-
ceivable or Endorsements" The com
mittee believes that the only notes so
Endorsed and discounted by the u. B.
Clafin Company were notes executed
by some twenty-seven corporations,
practically all the stock Of each o..
which corporations was formerly
owned by Mr.. John Clafin individu-
ally.
The committee invites the deposit
of all notes bearing the II. b. Claim
Company Endorsement, because II IS
apparent that the affairs OF all the
companies which executed notes IN
dorsed BY the ". b. Clafin Company
arc now involved in that corporation.
Push Collection of Notes.
THE committee wishes TO assure de-
positors that proof Of the respective
rotes will be filed against the makers,