The commercial. (Union City, Tenn.) 190?-193?, 1914-07-03
H. B. CLAFLIN COMPANY OF
NEW YORK IN BANKRUPTCY
Liabilities Amount to $35.000.00O
Reuenchment Efforts Futile.

goods house of H. B. Claflin Company
failed to-day with Liabilities OF $50, 600,
600. The assets are estimated at S40,-
O0O, 900.
i Two proceedings-friendly and I'M
friendly-threw the firm into bank
ruptcy and two receivers were named
under bonds OF $500, 900 each.
The Clafiin Company controls or is
affiliated with some thirty retail stores
throughout the United States and it was
the Endorsement of their papers, held by
more than So, 900 banks, here and in
interior cities that caused the crash.
A note-holders' protective committee
has been formed to look after the in
terests OF the creditors.
New York banks are said to have
made large advances to the Clafiin Com
pany recently with the hope of averting
financial embarrassment, and it is I'M
derstood to offer assistance to some Of
the independent retail stores affected.
CONFERENCE WITH MORGAN.
Interested merchants were closeted
With J. P. Morgan and other prominent
bankers day and night for the past week
in an attempt to avert the failure. 1t
is understood that 100000, 900 was
necessary.
Mr.. Morgan and others were most
generous, said. one person who par
ticipated in the conferences, but it
was a question OF raising the whole
amount or none at all"
Joseph B. Martindale, president of
the Chemical National Bank, and
Frederick A. Juilliard, a wholesale dry
goods merchant, were the receivers
appointed. They were named in the
friendly proceedings brought by John
G. Games, vice-president OF the H. B.
Clafin Company, and by William p.
Odell.
There were also Involuntary proceed
ings instituted by small creditors, which
sought the appointment Of different re-
ceivers and alleged that the company
was insolvent.
Receivers Martindale and Juilliard
said the failure was of such tremendous
proportions that it would be several
weeks before it would be possible to know
where they stand.
Though the failure is perhaps the
most important in the history of the
dry goods trade in this country New
York bankers predict that the chief,
and perhaps, only potent general effect
will be temporary decentralization in the
dry goods trade.
Altogether there are 80, 900 shares Of
the Cladin Company outstanding, di-
vided into &c, 003 first preferred five per
cent cumulative stock; %, FOG second
preferred six per cent cumulative, and
38, 291. common shares, which have
never paid less than sixnper cent, and in
1929 as much as nine per cent.
Clafin Company shares were not
listed on the stock exchange, but we're
a popular investment with money con-
servative interests. 1t is Believed the
several classes Of stock are widely scat
tered throughout the country.
According to the best records avail
able here the Claflin stores, not affil-
lated with the United Dry Goods com
panies, include besides stores in various
Northern cities, the following: Matt,
Rettew & Clay, Norfolk, Va, Caster
Knott Dry Goods Company, Nashville;
J. Bacon & Sons, Louisville; Montgom-
cry Fair, Montgomery; ]. B. White &
Co., Augusta, Jones Store Company,
Kansas City, Mo-; Scruggs-V Wander
WORT Barney Dry Goods Company, st.
Louis.
Mr.. Alexander, chairman OF the pro-
tective committee, made the following
statement:
H. B. ClahiD Company discounted
with banks in New York and sold
through note brokers to banks through
out America large amount Of papers
executed by large number Of corpora
tons doing business in various cities.
None of these corporations, other than
the H. B. Clafiin Company, has store
in the borough Of Manhattan. The
committee is formed for the purpose of
protecting the interests of the various
banks holding this paper, endorsed by
the Ii. B. Clailin Company. 1t is hoped
that If the holders OF the notes win act
promptly and concertedly through the
committee the situation will very much
improve and the committee will exert
every effort toward that end.
No definite figures are available, but