Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-25
CLAFLIN CREDITORS
. HAVE FINAL PLAN
FOR REORGANIZATION
Creditors Will Get IS Per
Cent. in Cash and Balance
in Interest-bearing Notes.
New Corporation.

|a4 Final plans for the reorga nizatior OF
The II. b. Clahin Company which re-
eently went into the hands OF receivers.
bave been completed and will be pre-
sented today for final approval by the
merchandise Creditors Committee which
Will meet in New York James S. Alex
ander. president of the National Bank
s6of Commerce. is chairman Of the Note
holders Committee which formulated
The plans.
Failure of the Clanin Company was
one Of the worst blows received by thr
Business world for many years Tho
8company operated chain Of o large
stores throughout the country and
millions of dollars of It's paper was out
ietanding at the time of the collapse. a
large amount of this paper was held In
Philadelphia.
The reorganization plan provides that
the Clahln creditors shall receive Is PEI
cent. in cash and the balance In three.
year interest bearing collateral notes
OF a newly organized corporation, re-
snewable for another two years.
This new company will he known as
the Mercantile stores Corporation and
IL will acquire the assets Of the H. B
Clahin Company, the assets Of John
Clafin or such portion Of them as may
be deemed by the committee to be adj
vantageous, including all OF the capital
stock of the % companies now in the
hands of receivers all Of the capital
stock of McCreery & Co, OF Pittsburgh,
4 OF the Wilkes-Barre Dry Goods Com
pany. and of MacCallum & CIouthier;
q. .2oO $50 par value Of the capital stock
I of the Scruggs, Vandervoort. Barney
Dry Goods Company go, 1o3,65g Of com
mon and $4,000 of preferred). 10000
par value of the capital stock Of the
Higbee Company, 10000 par value COM
mon capital stock of James II. Dunham
& Co., s6.26S0o0 par value Of the com
mon stock of the United Dry Goods
Companies. and other assets and equi-
ties owned by John Claflin. which have
been transferred to representatives Of
the noteholders' committee for the benefit
of the Mercantile Corporation.
THE NEW CORPORATION.
The Mercantile Corporation will cause
TO be organized a new corporation to be
known as The II. B. Clahin Corpora
ticn," to carry on such portion Of the
wholesale business now conducted by the
H. B. Clafin Company, a New jersey
company. as may be deemed by the board
of directors to be advisable 1t is con-
templated that there will be transferred
to this new corporation approximately
Clafiin Company in exchange for its
capital stock, all of which will be owned
by the Mercantile Corporation. The value
of the assets transferred 10 the II. &.
Claflin Corporation shall be as agreed
upon by its board Of directors and the
board Of directors of the Mercantile Cor
poration
The notes will be dated December !. 1914 |
and will be issued in q separate series.
one series to be delivered 10 the general |
creditors of the II. b. Clafin Company |
and each OF the other q series to be de- |
livered to the holders Of notes executed |
by one of the several companies and in
dorsed by the H. B Clafin Company.
The collateral trust notes will be Sc |
cured by stock collateral to be deposited |
under trust agreement with the trus- |
tees to be selected by the committee. The |
notes received by Ihe direct II. B. Clafin |
Company creditors will be secured by |
one-sixth OF the capital stock Of the |
proposed II. p. Claln Corporation, the |
wholesale trading company.
Each Of the remaining 2 series n COL |
lateral trust notes. being the notes re- |
ceived by the noteholders. will be Sc
cured by the entire capital stock of the |
particular company which executed the |
notes TO be exchanged for the new notes !
REPORT OF RETAIL STORES.
a summary Of the assets and liabilities
or 20 OF the q stores that executed notes
IN favor of the Fl. B. C!afn Company