The Washington times., 1914-06-25
RECEIVERS
MAY SAVE BIG FIRM
Hetty Green's Fright Hand
Man" Named to Administer
Affairs of H. B. CIaflin Co.
CONTINUED from First Page.)

The claim was made that much OF the
difficulty confronted by the firm re-
suited from the competition OF retail
stores organized by John Clahn. head
of the H. B. Clafflin Company.
The Ci&fiin Company has had the
highest reputation fo- solvency and
members of the firm pointed out today
that while the company stopped pay
ment on its notes in 1853 and in 1878, nc
hcldcr ever lost dollar on the FIRMS
PAPER In the past.
The equity petition on which the court
Sohn c. Ames, who is vice president OF
the Claflin Company.
Did Not Borrow Heavily.
The company did not borrow heavily
on its own paper. but by Endorsement OF
notes made by companies in various
cities. which were practically controlled
by the Clafin concern, These concerns
are known as ClaHin houses.
The smaller concerns were practically
dependent on the Claim name for their
credit, so that the paper was practically
the ranne as paper directly issued by the
H. B. Clafin Company.
A statement issued by the firm from
John Claf1in's Office said:
centers in New York has caused great
loss to many interests. In the case of
II. B. Clafin Company the uptown
movement Of business has seriously cur
tailed our wholesale profits and has
compelled us to rely mainly On the
profits from financing retail stores
throughout the country. Their rapidly
expanding business has occasioned large
capital requirements which we nave not
teen able to meet. 4 receivership has
therefore become necessary, pending a
readtustment Of the affairs Of the COM
pany.
To Plan Reorganization.
"A plan OF reorganization for the Fl.
b. Clafin Company will soon be pre-
sented which We hope will prove ac-
ceptable to both creditors and to stock
holders. The Associated Merchants
Company and tho United Dry Goods
Company are not themselves borrowers
OF money. They are in exceedingly
strong financial position, and the sue
cess OF their retail stores Is assured"
At the creditors meeting the fellow
Ing list of subsidiary stores of the Claf-
lin Company was made public:
Bedford Company, Brooklyn. N. Y: J.
Bacon and Sons, Louisville, KY; the
Casner-knott Dry Goods Company,
Nashville. Tenn: NJ. ]. ConneIl Com
pany. Butte. Mont: Joslin Dry Goods
Company. Denver. Colo: the Fair Com
pany. Cinclnnatl, Ohio; Kline Brothers,
Altoona, Pa: Lord &c Gage, Reading.
Pa; Lyon Dry Goods Company, To-
ledo. Ohio: George W. McAlpin Com
pany, Cincinnati: McCreery and Com
pany, Pittsburgh: Montgomery Fair,
Montgomery. Ala; Peoples Store Com
pany Tacoma, Wash. Root Dry Goods
company. Terre Haute. Ind; Spring
Dry Goods Company, Grand Rapids,
Mich; White House Company, Spokane,
Wash; ]. 3. White and Company, Au-
'gusta, Ga: H. Batterran Company,
brooklyn, y. Y: Watt. Rettew & Clay,
Norfolk. Va: Thomas o. Watkins, Ltd,
Hamilton, Ontario. !. Hennessy Company.
Butte. Mont; Copper City Commercial
Company, Anaconda. Mont: MacDou-
gan and Southwick Company, Seattle,
Wash: Jones Store Company, Kansas
City Mo-; Lazarus Brothers Wilkes
barre Pa; the Higbee Company, Cleve-
land.
New York Not Included.
The above list does not include the
Claflin stores In New York city and
number OF prominent stores In other
cities allied with the CIaf1in concern,
but not listed as subsidiary COMPANIES
by the creditors committee.
A committee Of five was appointed
at meeting OF seventy-five creditors
held today for the purpose of organi-
Zation. The committee of five is to
appoint a committee of from nine to
twelve members. which be given au-
thority to act in the proceedings for
the seventy-five allied creditors.