The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-06-26

H. 3. claflin Company
Goes Under After APP
peal to J. p. Morgan, !.
AFFECTS OTHER
SUB OMFANsEEs
The Biggest Concern Ct lis Kin iiEsiu,s
In Anerican-Its Failure
Drass Businesses Else 4
where To Ruin I. /.
tBy Associated PRESS !,

New York, June 25.-Thefj blrrasf
mcrcant,i" failure In the Vhlstory al
me tni.ca States was praSipliarna
to-day when receivers were a apnniutaa
for the Fl. b. Claflin Company. OF ithfg
city. The company, is ii sti; = th,fa,SS
owes more than $4,000, ,00O, which az
present time 1t is unntte b nay. fta
assets are said to be s44,000,09o:l !.
John Claflin. hend Of the company
and its chief individual stockhotiiar.
IL the owner of n chain of'nearly tfif.
" other dry socda enierprisaa
throughout the country. which are
;tvoltcd in the failure. ReUeiSarsf
.nr '.''.'ai OF these werni ii,ini.rf Ii, y
day and similar nction, 1T WINS All
noanced. would be taken in'sthe caseg
OF the rest. Their businespe wi,l:Ybse
continued under receivers i inunnge,ss:
ment until their financial affairs I,dvS
been adjusted. (, ,,i,s :
KS Ranks L6selg. /, "a q
From 5000 to ,5'a00 banks ,il an
parts fo,the United S .afos (, On nit,iass,s
the bulk 6f stRe CfIf lin & al ora fYfaT'
.i9ld notes aggrcSatfng$ the 2inAjnn
Lert of the liabtfi,,t-s ssTheses ( st1s;ss
are said to have ben issued by- tfifS
various Claflin stores. endorsed by The
II. B. Claflin companyfand the Dr0-
oeeds used. when DISCOUNTED. in II.
nancing their needs. sita!ss ~
The United Dry Goods COMPANY. q 5
$51.O00,000 corporation, financed ssy-
eral years ago by j. p, Morgan ana.
Company to take over OTHER 'Claflir,.
interests. Is not involved in the fall
ure. Neither is tho As.Jciatsd MeI-
chants Com{ any, ownei by the i;nued
Dry Go,as Company, anu which II.
turn owns one hlaf OF the H. B. 'Claf-
lin Company and other large stores,;
principally IN New York.
Mr.. Claflin, who was president or
both the dry goods and Associatetl
Merchant companies, resigned those
positions today and 1t is understooa
that when the Fl. B. Claflin Company
Ia reorganized It's connection with
both the former companies will be.
severed. Cornelius N. Bliss, son or !
the late NeW York dry goods mef=
chant OF that 2ame, was elected to
succeed Mr.. Claflin.
City Trade Responsible.
According to Mr.. ClafiIn the full
ure was due to the unprecedented
shifting of trade centers In New
York City. which compelle6s the con-
Germ to rely mainly on It's e retail
stores in other cities for its profits.
Their rapidly extending business"
he said. "ocpasioned large cnpital re-
quirements which we have not been
able to meet" i. ',9,s3s;g
The crash came today after vain
efforts had been made by Mr.. Clafiin
to induct j. p. Morgan and Company,
and other Wall street banking In
terests to loan him money to tide ov-
er his embarrassment These bank
ers. 1t was learned, advanced the COM
pany several million oollifsffS aooIe
two weeks ago. but banks continued
to press their claims until It became
evident that virtually the Whole $780,
100000 would have TO he raised to
save the company from failure 80
Appeal to Morgan.
Mr.. Claflin at conference lasting
until after midnight last night with.
]. P. Morgan, J. s. AleXnnder,l presi.
dent of the National Bank Of Com.
merce; Albert H. Wiggin. president OF
the Chase National Bank. and other
decision went against him. The bank.
ers believed a receivership and q re.
financiers, made last appeal. but the
organization OF the H. b., Glaflin Conn
pany, which would include; tts separaa
tion from the United Dry Goods ICOn- :
pany and the Associate1S Merchants
Company. was the wisest rcoufse At
this meeting Mr.. Claflin As said. to
have announced his Intention to res
sign from the two latter, concerns. ;ih
Today John C.. Eames. vice preSI.
dent OF the H. B. Claflin Company,
filed q friendly suit In equity asainst
It. alleging that 1t was unable at.prea-
ent to meet tts liabilities. This was
admitted by the company. and Judge
Hand in Federal court appointed as
receivers Joseph B. sMartindAie, PRES
ident Of the Chemical National Bank,