The Sentinel=record., 1914-06-26
H. B. CHAPLIN DRY GOODS COM PANY AND CHAIN OF STORES
 IN DIFFICULTIES.
RECEIVERSHIP IS ORDERED
Greatest Dry Goods House in United States in Heaviest Failure in the History of Business in the United States.

New York, June 25.-The biggest mercantile failure in the history of the United States was precipitated today when receivers were appointed for H. B. Claflin Company of this city. The company, 1t is estimated, owes more than $3O.O00,OOO, which at the present time it is unable to pay. Its assets are said to be $44, 100000
 John Claflin, head of the company, and it's chief individual stockholder, is the owner of chain of nearly thirty other dry goods enterprises through out the country which are involved in the failure. Receivers for several of these were named today and similar action, it is announced, would be taken in the case of the rest. Their business will be continued under re- ceivers' management until their fin ancial affairs have been adjusted.
 From 5000 to 5000 banks in all parts of the United States compose the bulk of the Claflin creditors. They hold notes aggregating the major part of the liabilities. These notes are said to have been issued by various Claflin stores, endorsed by II. B. Cliflin Company and the proceeds used when discounted, in financing their needs.
 The United Dry Goods Company, a $51 ,000, ,000 corporation, financed sew eral years ago by J. r. Morgan X Co. to take over other Claflin interests, IS not. involved in the failure. Neither is the Associated Merchants Com pany. owned by the United Dry Goods Company. and which in turn owns one half of the H. B. Claflin Company and other large stores, principally Tn New York.
 Mir. Clafin, who was president or both the United dry goods and Asso- clated Merchant Companies, resigned those positions today and it is under stood that when the H. B. Claflln Company is reorganized it's connec- ton with both the former companles will be several. Cornelius N. Bliss son of the late New York dry goods merchant, was elected to succeed MT Claflin.
 According to Mir. Claflin. the fail ure was due to the unprecedented shifting of trade centers in New York city. which compelled the con cern to rely mainly on it's retail stores in other cities for it's profits.
 Their rapidly extending business he said, "occasioned large capital re- ouirements which we have not been able to meet"
 The crash came today after vain efforts had been made by Mir. Claim to induce J. P. Morgan x Co. ana other Wall Street banking interests to loan him money to tide over ms embarrassment. These bankers, u was learned. advanced thes company several million dollars about two weeks ago, but banks continued to press their claims until it became
 
 evident that virtually the whole s3O'- 900 ,000 would have to be raised to save the company from failure.
 Mir. Claflin at a conference lasting until after midnight last night with II. P. Morgan. J. s. Alexander, presl- dent of the National Bank of Com merce; Albert H. Wiggin, president or the Chase National bank, and other financiers, made a last appeal, put the decision went against him. The bankers believed a receivership ana a reorganization of the H. E. Clafnn Company, which would include It's separation from the United Dry Goods Company and the Associated Merchants Company, was the wisest course. At this meeting MT. Claflin is said to have announced his inten- ton to resign from the two latter companies.
 Today John c. Flames, vice presi- dent of the H. E. Claflin Company, filed friendly suit in equity against it. alleging that 1t was unable at pres ent to meet it's liabilities. This was admitted by the company and Judge Hand in federal court appointed as receivers Joseph B. Martindale, presi- dent of the Chemical National bank, and Frederick A. Juilliard, dry goods merchant.
 l Almost simultaneously petition in