New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-22
CLAFLIN CLASHES
WITH RECEIVERS
Will Offer His Own Report
at Creditors Meeting
Friday.
MERCHANT EXPECTS
a STORMY SESSION
He Differs Considerably from
Expert Accountants as to
Bills COlleCtible.

John Claims reason for retaining
Judge Morgan j. O'Brien as ms legal
adviser became apparent yesterday,
when II developed that there is a serI-
Gus difference Of opinion between the
receivers and bank creditors OF the
II. B. ClaAin Company and the head Of
the Clafin enterprises as 10 me NaIue
of the assets Of the II. b. Claim Com
many and its subsidiaries and as 10 the
manner I'm which the business may De
continued.
I'm consequence Of this difference
two reports will be presented 70 the
creditors at their meeting trday
morning one by Receivers JuiIlard
and Nartindale. based on the findings
Of their expert accountants, and one oE
Mr. ClaNin. This difference IS conSld-
crsblc 10 per cent in the matter OF
,hc amount Of the merchandise ac-
counts owing 10 the ClaHn Company
that may he collected IN one instance
and the value Of the assets as gong
concern is another
The cxpcrts will report that ~ per
cent Of the Clafn merchandise ac-
,ounts are collectjble. Mr. Claim says
90 per cent Of the bills viii be pald IN
iull.
Tbi. is the first outward manifesto
zion Of friction that has developed IN
the Clanin case since the receivers
were appointed. II is an open Secret
that the merchant has had the unusual
experience for him OF hearing thal
bank officials. formerly most ooseqW ,
Gus. were "out" or impossible TO ma
ms, now" when he called on the teIe-
phone.
Resent Clafliu Interference
on tho other hand. some Of those en-
gagged in trying 20 settle the affairs Of
The ClaAiu Company have said that
Mr.. Clafn seems 20 think he Is stlll
running this thing and insists on put
ting in
There were numerous conferences
Yesterday. the most important at the
, aiccs OF Rushmore. Bisbee d stern,
counsel for the receivers. Besides
Nessrs. Rushmore and Stern. Receivers
Juillard and Martindale were present.
John l.. Wilkie. Of Gould & Wiikie. rep
resented the United Dry Goods Com
NAMES and the Associated Merchants. Al
This meeting the reports OF the ac-
countants we're gone over and the Al
titude of Mr.. ClahlG was discussed.
Previously Mr.. tiaAn had had a
long talk with Judge O'Buen. after
which the latter conferred with Colonel
Joseph ~ fairfield. of White 4 case
counsel for the nOtehOldcrs' comm tlee,
the two adiourning 20 the Na,lohal
BANK Of Commerce, where me sl'ua'
'ion was further carva>Sed with james
y Alexander. president Of the BANK ara
chairman OF the uOteholders commit
Tee and Seward Prosscr. Of the com
mittoe. Judge O'Rrien did not remain
until the conference adjourned IN me
carly evening. II Is understood tna'
Judge O'Rricn told the committee and
Mr. fairfield what Mr.. Clahlh couIo
and would do.
Seen A. his Offices after the confer
cuce. Judge O'Bricu was inclined to
think that the creditors that have not
Joined with the noteholders' and mer
chandise creditors committees might
have a good deal TO say at Friday
meeting.
stormy Session Expected.
From another man. close TO Mr.. Olaf
lin. u was learned that the merchant
looks for d rather stormy session and
that he Is prepared TO tght for what
no considers square deal and an OPP
portuuity 10 resume business.
Following the exclusive announce
mont iu The Tribune yesterday 'ha'
less than onc-third Of the Clafiln notes
mad been deposited with the committee
under its deed Of trust, II was sem
officially explained that no decep' on
Was intended when B, Was sand Sl3,OJ0'
nOu or orc-haIf. had been turned IN
81 r4.fr Il - = g d
Wa, aid. was failure on the part o
-om,body 70 explain that large mum
bcr Of notes counted 900 the Sl5.000.0Ol
Total had been deposited subject q
withdrawal by the owners II the plan
81 the committee did not work out d
expected.
The committee nope 20 have ma
iorif, OF the notes hand after Fri
DAYS meeting.
The mercantile creditors viii meet IL
nc rooms OF the Merchants AssOcia
fon 81 l0 O'Clock tomorrow morning
some o. them insist that tho bank
are inclined 70 pay TOO much attention
20 the interests OF the notehOlders ant
200 !tt.e 20 those Of the mercnandls
men. many Of whose claims are, IN pro
portion 10 their capital, larger 'ha'
those o. tho banks.
For this reason they are inclined q
fhu. that stories Of offers Of 90 or .
pcr cent cash and the balance IN long
lnc NOTES. circulated from time Q
time IG Wall Street, are in the natur
OF "tcst balloons sent out 20 dete.
mine just how the wind ls blowing
Lone-tcrIn note, do not appear attrac
tive 20 them for the purpose OF helpln
the bank out. bat they Viii 20 turthe
In thu respect 4 Dy 90 doing they vi.
help out Jonn Clafln personally.