The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-29
OURTORDERS SALE
OF CLAFLIN ASSETS
Decree Signed Under Which
New Organization Plans to
Bid In Properties.

The sale ~ an the properties ~ the
H. g. C,aHiu Company, which went into
III" hands OF receivers on fune - after
fifty wears In business. was ordered 10y
Judge Learned Hand In the United states
District Court Yesterday. The sale viii
Ice held under the direction OF former
Judge George G. Holt special master in
Room 2%5 in the Federal Building at
noon on January ~ 1915. and will
practically conclude the adjustment OF
he si2.oOo.o0o indehteduess Of the
Eating the business
The decree OF sale. which has the APP
proval OF 9S per cent. OF all the creditors
OF the company and It's tweuty-three sub.
sidary stores which also went into the
hands Of receivers, provides for the sale
Of an the Clahin assets except real
estate, interest in lands and leaseholds
Under the statute owing to the fact that
these are located i'm various parts OF the
country, a separate decree Of sale must he
entered Tor their disposal
Judge Hand signed the decree after a
conference OF two hours Yesterday and on
Thursday with the attorneys representing
the receivers, the parties 20 the bankruptcy
action and the uotoholders and mer-
chandise creditors committees Opposi-
ton eNeloped on the Part " Seldcn
Bacon, attorney Tor saul :. Myers,
representing a small minority committee
of creditors. but with a fow minor amend
meu's 10y the court - Was approved as
presented.
The opposition of Mir. Myers was based
on rumors which he said had been per-
siStent Lately that preferential payments
had been made to some of the creditors.
lie did not make any charge 10 that effect.
he said later. BY the consent of all a
slight amendment was made IN the word
ing Of the decree SO that it would not
preclude a future inquiry The decree OF
sale is So drawn as 10 include the reor-
ganizaton plan of the Mercantile Stores
Corporation 10 take over the retail bust
ness Of the Clatiin stores. This plan,
providing for a payment of 10 cents in
cash and 81 per cent. in notes and stock
of the recognized enterprises to the
Clain creditors was approved some time
ago
II is understood that a blanket bid viii
be made by the Mercantile Stores Cor
poration To acquire all the properties
which are 10 he offered for sale. although
, tho decree also prov dos for bids for all
or any part Of the assets. The Mercantile
Stores Cooperation Will then turn over tC
the nearly organized II, Il. clafin Corpo.
ration the johhing and wholesale part OF
| the business as also previously provided
! for
John Clanins own holdings, which wer,
turned over to the receivers some time
ago. will also be sold with the other as
sets, Judge Hand asked Harold 7, White
of White Il Case. attorneys for the note
holders representing over S3O,000OOO IL
! liabilities. how much Mr. Clafln's trans
ferred holdings amounted to. hut no den
/ mite amount was volunteered other THAI
"a vast sum" These holdings include,
stock in the United Dry Goods Company
/ Scruggs Nandevoort Barney Dry Good,
| Company in ST Louis, the iigbee Com
pany in cleveland, two Claiiin stores
which did not fan stock in other stores
and other securities,
When the decree was signed yesterda,
| there We're present Mr., Stern Of counsr
| to Joseph H. Martndalc and Frederic A
Iu,lliard receivers; James y. Rosenberg
! counsel to the Mercantile creditors com
mitt'e Selden Bacon, representing Sau
= Myers, Harold T., White, representing
! the notcholders. and Arthur r. Gotthold
attorney for the bankruptcy complainant
John g, Ia mes,
The time Tor Ming creditors claims wa.
extended front Yesterday to January | IN
response to Mr. Roscnbergs reQues I
| When the bids are all in a court hearnS
win be held by Judge Hand to dispose OF
them nnallv,