New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-26

Lst- lie said that plan Of reor-
;--.;o, FOR the company would soon
,,resented which he hoped would be
refractory 10 the creditors and STOCK
holders. His statement reads
shift in Trade Centres Blamed.
arh. unprecedented shifting Of
..,fres in New York has caused
.st Toes 20 many interests. In the
~ the n 3. Claim Company, the
.-..,S, ,,,ovement Of business has seri-
sS,. .,,rtaiIed our wholesale profits
80 bes compelled US to rely mainly
re nrofts from financing retail
ssorss throughout the country. Their
~sn;dlv extending business has oeeR-
-;ars5 large capital requirements,
,vbirh We have not been able TO meet.
"a receivership has therefore be-
.ome necessary pending q resdiust-
,nc,t of the affairs of the company. A
inian Of reorganization for the II. b.
'Cladin Company will soon De pre-
sented. which We hope Will prove ae-
eepsabie both to creditors and stock
holders.
Many and the United Dry Goods Com
nanies are not themselves borrowers
sfrono financial condition, and the
success of their retail stores is as
The crash came after vain efforts
had becn made by Mr.. Clafiin to in
duce the great Wall Street banking In
terests 10 loan him money to tide over
his embarrassment. At a conference
lasting until after midnight Wednes-
dsv with ]. p. Morgan, ]. S. Alexander,
president Of the National Bank o.
commerce; Albert H. Wiggin, presi-
dent of the Chase National Bank, and
other fnanciers. Mr.. ClaAin made a
last appeal, but the decision went
The bankers believed that a receiy-
ership and a reorganization Of the h.
B. Clafin Company, and its separation
from the United Dry Goods Companies
and the Associated Merchants Com
pany, was the wisest course 10 p1r-
sue.
The most Trustworthy estimate OF
the liabilities Of the ClRfin Company
plsces them Yesterday at $4,000, 600, Of
which S30.000,000 is commercial paper
and S4.OO0.0O0 merchandise accounts.
The nominal assets were estimated at
$44,000,0 900.
About 100000 of the Clahin paper
is said to be held by twenty-six banks
and trust companies in this city and
$4,000. 900 by Boston banks, with as
much more by banks in other parts Of
New England
The remaining S15,O0O,OOO is scat
tered among various banks all over
the country. in the cities where the
twenty-seven stores owned and con-
trolled by the Clafin concern are
located. While the assertions Of
bankers and the officials of the other
Clahin interests, consisting OF the
United Dry Goods Companies and the
Associated Merchants Company, which
control the big local department stores
under the Clafin domain, were strong
Yesterday that these properties would
not be effected, doubt was expressed
for some of the stores in the Clafin
string in other cities.
Some Of the bankers most deeply in
terested in the Clafin situation eX-
pressed the belief yesterday that the
firm would eventually settle for be-
tween rs and 100 cents on the dollar
probably nearer the hundred mark
than the three-quarters. The prophecy
was made that in view of the generally
recognized fact that the day OF the
iobbing house is past the Clatiin Com
pany probably would liquidate its al
fairs after it had satisfactorily
Strengthened out the present embar-
rassment.
John Clahin Resigns.
John Clafin, president of the con-
sern, at a meeting Of the board OF
directors of the United Dry Goods
Companies and the Associated Mer-
iants Company, resigned as presl-
ent of both Of these companies, and
. Cornelius n. Bliss was elected to sue
ceed him in both places.
IL was said that Mr.. Clafin wished
to devote all his time to the adjust
ment of the affairs of the H. B. Clahin
Company. He also resigned as
director of these two companies. i. >.
Atwater was elected treasurer OF the
companies.
The Associated Merchants Company
owns a controlling interest in the II. b,
Clafin Company. and the United Dry
Goods Companies in turn controls the
Merchants company. The meeting or
the directors was held at the II. b.
ClaAin Company store, at Church and
Worth ate. The formal announcement
Of Mr.. C.afia's resignation, after the
meeting, was:
"Thc .ct'ow:ng announcement was
made last evening by the Associated
Merchants Company and the United
Dry Goods Companies:
"The board of directors OF the AS
ISOLATED Merchants Company and the
limited Dry Goods Companies tins al
ternoon elected Cornelius n. Bliss 10
the presidency Of both companies, sue
ceeding John Clafin, resigned. 1. >.
Atwater was also elected treasurer OF
the companies.
"This sewers the management OF the
last two companies from the stores III
which Mr.. Clafin has a personal IN
terest. Mr.. Clafin desires TO deVoVe
his entire time TO the affairs OF the
IT. b. Clafin Company and the various
retail stores in which he IS personally
interested. Cornelius n. Bliss is one OF
the leading merchants of New YORK
Cifv and is considered as one OF the
hest equipped men in this city Tor the
nosition which he has accepted
"The United Dry Goods Companies
stores are: Co... H..
Hahne & Co., Newark; Stewart Dry
Goods Company, Louisville; VIII
lam Hengerer, Buffalo; FOWers
Mercantile Company, Minneapolis;
Lord g. Taylor, New York.
"The Associated Merchants Com
pany stores are: Gu. a
McCreery g. Co. New York; stewart q
Co. Baltimore; 0Neill, Adams q
NJ, Vnrk. I N. Adam & Co.,