New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26


Bank; Rowland Davis. OF Blake BROS
a Co. and Charles w. Folds, Of Hathe-
way, Smith, Folds Company; Ernest n.
/ Hamill, president Of the Corn Exchange
National Bank, of Chicago; Seward
! Prosser, president of the Liberty Ma
tional Bank; Philip Stockton, president
of the Old Colony Trust Company, OF
Boston, and Festus J. Wade, president
of the Mercantile Trust Company, OF
! ST. Louis. b. W. Jones Is secretary for
the committee and White & Cass are
counsel.
Must Deposit Notes.
"a protective deposit agreement IS
being prepared, to be executed and
| lodged forthwith with the Bankers
/ Trust company, the depositary, where
copies may be obtained. Holders OF
/ notes are requested 20 deposit the same
with the depositary Immediately. which
will issue its temporary transferable
receipts therefor. Deposits OF notes
may likewise be made with agents OF
| the depositary as follows: Northern
Trust Company, Chicago; Mereantlle
/ Trust Company, st. Louis; Old Colony
Trust Company, Boston. -,
at is imperative that all noteholders
should deposit their notes promptly, IN
order to preserve the equities. Unms-
| tured notes deposited, IL not paid az
maturity, will be protected or waiver OF
protest will be obtained. Any note
| holder may secure information regard.
| ing the situation from the members OF
/ the committee or its secretary" o.,
"The II. B. Clafin Company" slld
/ Mr.. Alexander, speaking for the COM
mittee, "discounted with banks in New
/ York and sold through noteorokers 10
banks throughout America large
amount OF paper executed by corpora
/ tions doing business in various cities.
None of these corporations other than
| the II. B. Clafin Company had store
| in Manhattan.
"To protect the interests Of the vari-
Gus banks holding paper Endorsed bv
/ the II. b. ClaAin Company this commit
tee has been formed. II is hoped that
if the holders of these notes Will act
promptly and concertedly through the
committee, the situation will be very
much improved, and the committee Will
exert every effort to that end.
"No definite figures are available, but
the committee is informed that the
total liabilities are upward OF $3O'OO0'-
600. As figures become available the
creditors will be duly advised"
For the banks interested in Lord *
Taylor, Gates W. MeGarragh, president
of the Mechanics and Metals National
Bank, issued this statement:
Lord & Taylor are not in any way
involved with the II. b. Clahin Com
pany. The company has on hand ample
funds for its present requirements, ana
a group of banks has arranged, upon
verifcation of the figures supplied by
the company, TO provide funds, If any
be needed, to continue the business as
heretofore.
"The undersigned have been chosen
to represent the banks referred to-:
Gates W. McGarragh, Stephen Baker,
president of the Bank Of the Manhat-
tan Company, and Howard c. Smith, of
Hathaway, Smith, Folds & Co"
Because of the assistance John Olaf
lin rendered the committee which re-
organized the Simpson Crawford Com
pany, there was some question as 20
how, if at all, that corporation would
be affected. Alexander MacLachlan,
president of that company, settled that
by promptly issuing the following
statement:
"The Simpson Crawford Corporation
10 not affiliated or connected with the
H. B. Clahin Company or any Of its
allied corporations.
John Clafin, however, was very
active and helpful in the recent reor-
ganization of the Simpson Crawford
Corporation and was individually a
subscriber to its preferred stock, the
amount Of his subscription being son:e-
what less than one-eighth of the total
issues.
"Mr. Clahin neither controlled the
company nor was one of its directors,
but at the request of mercantile and
banking creditors he consented to serve
for one year as a voting trustee, and
this statement is made to explain Mr..
Clahin's association with the company
and to render cordial acknowledged
Of the invaluable assistance he gave in
bringing about its reorganization on
such q sound basis.
"The Simpson Crawford Corporation
is doing a good business and has no
obligations other than for current bills
not yet due, which aggregate, however,
considerably less than its cash on de-
post in banks"
Bankers present at the meeting in
Mr.. Alexander's Office said that while
the usual crop OF rumors might be eX-
pected, connecting various stores with
gossip might suggest, that none, so far
as the banking element knew, is in
any trouble. One house, with which
rumor has from time TO time been busy
for months past, was said to be in bet
ter condition than at any time in a
year. doing well and in a position 70
obtain any funds it might need, though
no calls from it are anticipated.
Trouble Brewing for Weeks.
As TO the ClsAin trouble, bankers
said, it had been brewing for some
weeks because the market for its paper
had become thin.
"Claflin paper. as IL was known in
the banks throughout the country" eX-
planned one banker, twas rated as the
best commercial paper in the country
II was so choice il was in a class by
itself and as general thing found 8
ready market.
"Selling commercial paper, however,
is not a business that goes along in a
straight line. Like everything else,
there are times when a house can place
more paper than it needs money for
At others there is no such demand Tor
the paper. One of these dips de-
veloped in the market for Claim notes
O. few weeks ago. No question was
raised by anybody as to the value OF
the paper. The banks and other buy
ers simply did not want 1T.
"Therc was then a large amount OF
Clafiin paper out, some $4,000, 600, per,
haps. This was in the main five and
six months paper. and much Of it was
maturing. 1t finally came to that pass
where more of it was maturing than
funds could be obtained from the sale
of new paper to meet it. 1t may have
been bad judgment that allowed SO
much paper to mature at one time, but