Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1914-06-25
Too Much Paper of In
terror Merchants Brings
Grief to Big Concern.
RECEIVERS APPOINTED
Liabilities Are Placed at $685.
100000, While Assets Are
$4O,O0O,00o.

New York, June 25.-The great dry
goods house of II. b. Claflin company
failed today with liabilities of $780,
100000. The assets are estimated at
S4O.0O0.0OO. Two proceedings, friendly
and unfriendly, threw the firm into
bankruptcy. and two receivers were
named under bonds of S5OO.O00.
Interested merchants were closeted
with J. p Morgan and other bankers
day and night the past week in an at
tempt to avert failure. 1t is under
stood S3O.0OO.0OO was necessary. Nor
gan and others were most generous"
said one who participated in the con-
ferences, but IL was a question of
raising the whole amount or none at
all The receivers said the failure
was of such tremendous proportions it
would be several weeks before it Is
possible to know where they stand.
The Clafiin company controls or is
affiliated with some thirty retail stores
IN the United States, and II was in
dorsement of their paper held by more
than three thousand banks here and
in interior cities that caused the crash.
The United Dry Goods company and
the Associated Merchants company.
though affiliated with the Clafiin com
pany through stock control. are in no
way involved in the failure Their !
chain of stores. it was stated in the |
financial district, would remain intact. |
Reorganization Planned.
Hope was expressed also that the |
Clafiin retail enterprises ould-AS-sav-
I'd. Unless blocL.d by creditors re-
of the firm is contemplate
ed, according to John Clafiin, presl-
lent. A note holders protective com
nittee has been formed to look after
he interests of creditors.
II is said the company did not bor-
row heavily on its own paper. but en-
iorsed notes made by interior mer-
.hants for goods sold. Inability of
hese interior houses and inability OF
he Clahin company to pay off the
natured portion of these notes is as
.ribed to general dull business condi-
ions. The equity proceedings are
being instituted by Vice Presi-
lent Eames of the company. {
Organized In 1890.
The H B. Clafiin company, of which
ohm Clafiin is president, organized in
$50 to conduct a Wholesale dry goods
is controlled by the Associat-
d Merchants company, which in turn
) controlled by the United Dry Goods {
1t is understood the Claflin
ompany controls about rs dry goods
rms in the United States. distinct :
nd apart from those affiliated with "
ne United Dry Goods company. About :
wo thousand five hundred banks hold :
aper OF these stores. Twenty-Five of :
ne larger discount banks OF this city :
re creditors in large amounts.
Almost simultaneously with the FL 7
ig of the suit in equity John Muller, T
lillian Worth and Albert Bergner. all I
New York, filed involuntary peti-
on for $4,000. a
Business Will Go On. O
None of the proceedings, it is said,
i'll affect the United Dry Goods COM p
any, which controls the Associated Il
erchants company, holding a major q
y of the stock of the Clafiin com c.
my.
a stockholders committee was form II
TO endeavor to formulate a plan of
the Claflin company's n
lancial affairs. The receivership -
used a furry in the financial dis y
let and a weak opening of the stock s.
:,
Announcement was made that all A'
called Clahin stores. strictly speak
g. would be closed pending adjust u
ent of the company's affairs.
Receiver at Kansas City. w
City. Mo, June 25.-Alex-
der New. legal representative of /.
e CI<Sin company. New York. was -
pointed receiver FOR the Jones sore Cd
of this city. the stock OF VI
IN