The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-06-26
WILL Be ABI!5
I0ai OUT
Claflin Fail4ag Not Looked
Upon as a Very Serious
Business Diff
ficulty.
HONOR COUNTS STRONG
Reorganization Expected to Result In
Resumption Of Business With
All claims
Settled.
HONOR COUNTS STRONG

United Press Leased Wire Service.1
NEW YORK, June 26.-Conf1dence
that most Of the subsidiary companies
involved In the $34,O0o.0O0 difficulties
OF the H. B. Claflin company will con-
tinue business without more than
temporary hitch and that the parent
concern will, within few days, ar
range to pay dollar for dollar all
their obligations. was general in finan.
| cial circles here today. John Claims
whole fortune, it was said. would be
placed at the disposal Of those who
are reorganizing the great concern.
| Men high in the affairs OF the COM
pany declared that after reorganiza-
tion 1t would be stronger than ever.
That very diffusion OF the Claim
paper which caused difficulty Of the
concern was said today to be one OF
the best guarantees that no great
financial disturbance will follow. De-
cline Of only from one quarter Of q
point to point in American securi-
ties in London today was pointed to
as indicating that monied men here
and abroad believe the 5000 banks
which hold Clafiin paper In the coun-
try will be we'll supported past any
chance Of embarrassment While on
cials Of the concern and spokesmens
for the creditors said It was too soon
ttn@besAnre seyerals declared their be-
| lief that the 10000 employees OF the
lClafiin stores throughout the country
would In all probability be out OF
work for only few days. This prob
ability, they said was strengthened BY
the speed with which reorganization
has started in the election OF Corne-
lius N. Bliss as head Of the United
Dry Goods company and the Assocta-
ted Merchants. This was, they de-
clared, an earnest indication that no
time would be lost.
Appointment OF at least one addi-
tional receiver to act with ]. B. Mar
tindale and F. A. Juilliard was expect
ed today. The name OF F. G. Nc
Duff, president OF the New York Man
ufacturing company Of Boston, was
mentioned for the place, or one OF
the places. There is huge amount
of work to be done and 1t is believed
board OF Ave receivers is likely.
Three creditors today filed peti-
tion in involuntary bankruptcy In the
Defender Manufacturing company, one
OF the Claflin subsidiaries here. 1t Is
understood that the Claflin interests
will vigorously oppose receivers on
the ground that this firm is perfectly
solvent.
10 Isolated Case.
NEW YORK, June 2e.-The H. B.
Clafiin failure is purely an isolated
case and cannot be attributed to any
general conditions" according to
Jacob Gimbel, president OF the firm
OF Gimbel brothers.
Commenting on the failure today.
Isaac Gimble said:
"I take on its face value the reason /,
given by Mr.. Claim, for the. embar-
rassment OF that concern. namely the
shifting OF trade centres In New York
City. No firm in any line OF business
ever had a better reputation for high. |
est integrity and business honor and
when Mr.. Clafiin, whose father and
himself made that reputation. men |
tions but one thing as the reason for
his embarrassment, nothing else can |
he blamed. The case is wholly and
solely an individual one. It does not
in any way reflect general business
con ditions"