The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-26
Big Stores Here Not Involved
Thousands Over COun-
try Affected.
SHIFTING OF TRADE
IS BLAMED FOR CRASH
Stagnatfon Of Business and Re-
fusal Of Bankers to Ey-
tend Contribute.

The II. r. Claim Company, the old
est and the leading wholesale dry goods
COMPANY of the country. went into the
hands OF receivers yesterday because OF
its inability to meet notes amounting
to several million dollars. The failure
is the biggest single commercial COL
lapse in many years.
The company Is said to have out
standing notes amounting TO more than
s3i.o0o.000. and the liabilities may
amount to $4,000. 900 In .ome quar-
tiers. however. 1t is said that the assets.
according to the books OF the company,
exceed the liabilities.
1t was too early yesterday for Jo-
seph r. Martindalc. presto NJ OF the
Chemical National Bank. and Frederic
\. Juilliard who were appointed re-
ceivers by Judge Hand. under bonds OF
100000 each. to learn the extent OF the
failure.
The Ciafin company was controlled
through stock ownership by the United
Dry Goods Companies and the Asso-
ciated Merchants Company. Those two
companies own Lord Taylor. the
oNeiil-Adams Company. James Nc
Creery & Company and the c. @. Gun
theirs Sons. department stores In this
city. but none Of them 1t was asserted.
will be hurt by the failure of the II. Il.
Clafiin Company. The finances OF all
those stores were reported as satisfac-
tory.
Other Concerns Carried Down.
Two stores in Brooklyn directly con-
trolled by the Clafin company. namely
the Bedford company and the Henry
Batterman company, were placed in tho
hands OF receivers. A number OF other
retail stores throughout the country
owned by the Clafiin company also wen,
into receivership.
CIaHin Quits Mtg Companies.
Mr.. Clanin resigned yesterday as
president OF the Associated Merchants
Company and the United Dry Good,
Company. sIn his place Cornelius N
Bliss was chosen. and T. s. Atwater
was elected treasurer OF the companies
In a statement issued by the two con-
Germs it was said:
This sewers the management Of
the last two companies from the
stores in which Mr.. Clafin has a
personal interest. Mr.. Clafiin de-
sires to devote his entire time to
the affairs of the III. b. Clafiin
Company and the various retail
stores in which he is personally in
terested. Mr.. Bliss is one of the
leading merchants of New York city
and is considered as one of the best
equipped men in this city for the
position which he has accepted.
an overextension of notes issued by the
company as makers or Endorsed by 1t
A secondary cause was the stagnation
OF business throughout the country
which led the banks to refuse further
credit and to decline to extend the notes
they already hold. .
Two other causes which had con-
tributing influence were the fact tina,
New York In no longer the jobbins
centre In dry goods for the whole coun.
try, and that the banks holding the
notes feel they must have more liquid
assets in preparation for the new bank
ing system. 90.
shock to Entire Country.
The failure was a shock to the entire
country. The II. b. Clafiin Company
which for more than seventy years ha.
passed through various vicissitudes
emerged from many panics with.
higher reputation for soundness ant
bigger business methods. Within the las
few years its commercial connection.
had been extended throughout the
United States and Canada. It's paper
until recently. always has been In eagel
demand by the banks.
About twenty-five banks In New Yorl
are said to hold approximately $1,000. DOT
of the company's notes: Boston. '31o.'
ooo, 1000. ana Chicago and 81. Louis lsrs,