New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-21
.CLAFLIN PLANS IN
SHADOW. OF DOUBT
Conditions About Parent
Company Become More
Serious Each Day.
BUSY SESSION DUE
AT FRIDAY MEETING
Many Inquiries Expected Re-
garding Assets and Aid from
John Claflin.

For the first time since the II. B.
Clahin Company and is dependent
subsidiaries went into the hands Of re-
ceivers the bankers and lawyers en-
gagged in the task Of trying 20 untangle
;he Claiin skein admitted yesterday
that the outlook for avoiding lquida-
ton Of the parent company by reor'
eanizing was not bright
T. developed also for the first time
that the noteholders' committee ana
the committee OF mercantile creditors
have not got the situation so we'll '-
hand that they. working together can
dominate Fridays meeting. NS mat
ters stand nov the comittoeS VIII go
into that meeting representing M,
uority Of the creditors IN numbers anu
amount and facing tie probability ma.
the unorganiZed majority VIII be IN
clned TO make trouble.
Fer this reason. 2e mucn as any
oticr. no definite plan for reorSanll
ing the Clafn stores Till be pre- serted'
TOR to make any plan effective the ap-
proval Of strong majority - neces-
sary. the United States courts, as
rule. insisting upon preponderat.ng
majority.
The notoholders' committee Will go
into the meeting representing at inc
present outlook not more than one
third o. the Indebtedness TO the BANKS.
The merchandise committee Will, /: Is
estimated. represent little more tnan
bare majority.
Many Inquiries Expected.
Under tho circumstances the receIv-
ers and the committees expect 10 nave
many inquiries as to the value OF the
assets as going concerns and IN liquida-
ton. with many questions as TO what
amount Of relief John Claiiin is able %
extend personally and through friends.
The statement Of liabilities VIII be
much in excess Of the estimate made
at the time Mr.. Julliard and MIR. Mar
tindale were appointed receivers. INC
figures wcro then placed A. S3i.0OoOOo
More recently semi-otficial report
placod the total At $40 100000. wall
street now hears that the total. g.
Guiding the capital stock OF the varl-
Gus concerns. which is a liability.
though not entitled 10 share IN the
assets until all debts arc paid. will be
at least $4,000. 900. The various com
panies are capitalized for more than
100000 more Exact figures are
not now available.
On the other hand the Clann assets.
aside from the stock in hand IN tho
various stores. has decreased. BeIorr
receivers we're appointed. Mr.. Clahln
included in his assets Sf.OOc.OoO OF
United Dry Goods stock at psr. 1t has
= market value of so "A share. and the
dumping Of so large an amount upon
the market would in all probability
sond tho stock lower. Here Is =
shinkagc Of 81 100000. Iae real tate
item was placed at Sl0.0O0.OOO. IN
doubtedly the Clafin realty holdings
src valuable, but no one familiar with
the changed conditions ia ne real e.
tate market would place Ciahin mold
inps M the value they would have COM
mandcd = tow years ago. or two
other items 81 Si.5O0000 OF the Claim
books an offer Of p per cent i1 beng
coufidcrcd.
An interesting development o. yes
,crday was he announcement mat me
Associated Merchants and United Dry
Goods COMPANY, corporations lorm"d
nv Mr.. Cla9in to hold III, Manhattan
retail gtor-s. were planning 20 cut
loose from all Clahin afiiliaton-.
Ready to Sift Case.
In the negotiations John Claim WIN
he r,prcsenfcd by Morgan J. O'Brlen,
Gould & Wilkic, who have been ms
ncrsoral counsel. also being counsel
for tho holding company. ana con
dict Of interest might arse al any
time
irving 20 work out his own Scneme
for reorganization. In ;his ne mas the
promises Of assistance OF wealthy
banking and mercantile irIcnds' nut
the backing OF on" Sioup o. pa'N'' =
previously friendly - not expected.
This group. which has very niue o.
.bc CIafin paper, has from the star
extended neither r'lici nor corr orr
and Wall Street gossip has u mat lt'
managers would rot be at an DIS
pleased if the responsibility Tor inc
Clsnir troubles could be brought nome
souArcly 10 ono OF the leaders o. an
other group. .,., 49,.
Mr.. Nartindalc and Mr. Juilli lard, VINO
nov have had efficient data from me
accountants 20 form an accurat" ld'"
Of the condition OF the Claim hrms,
decline IN advance Of FRIDAY meet
incs to give cut any Igurea. N.Y.
Alexander. chairman o. the holcholG-
crs' committee. who from the hrSt ad-
yigcd against 700 rosy forecasts DC
clincs 20 give out totals o. the amount
Of tho notes deposited. u car De
stated. however. that the amount iS
nearer sIO.000.0O0 than the >l'.ocO,oO0
rcportcd earlier from an unoi'lcia!
source. .,, ,
white Il Case. counsel !"r nc noic-
holders committee. from chicago. TO-
dav nave make a decided change - the
banking position. His trip 10 the west
has been. u j. understood. 10 get
Western bankers moro thoroughly m
line with New York. good portion
of the notes neld in Chicago have been
deposited. and Fcstrs j. Wade has
taken good care Of tho notes held in
and bout 81. Louis, hut outside OF
this Western notehOlders have been
slov- in coming forward.
For that matter the New York bans
Or. arr not altogether unanimous. The
head Of ono trust company i inclined
20 feel angry over the fact that he WAS
sold lot Of Clanln "rcccivables'
while the matter OF reorganization was
under consideration, the vendor beng
a local bank. while banker IN Albany
makes protest every time he rcmcm-
bers that twcnty-four hours before the
reccivcrship was announced Ne"
York bank old him 100000 OF Ciafiln
paper.