The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-27

a creditors committee with whom the re-
celvers may consult from time to time.
petition In bankruptcy was filed yes
terday against the Defender Manufactur-
ing Company, manufacturers OF sheets and
pillow cases at ia Avenue G, a Claim
subsidiary, by Gree e. MctIovern The
creditors are Charles y. Scerbo OF Jersey
city, with a claim OF 81, 004 the Carroll
Box and Lumber Company. s35. and the
Fischer Thread and Drawing Machine
Company, t135.
The petition alleges that the company
Mr.. Msrtindale and Mr.. Juillard had
already been appointed receivers OF that
company on Wednesday as a result OF the
equity suit filed against II.
Mr.. McGovern said that he was not
seeking to throw either the Claim Com
pany, against which he filed a petition on
Wednesday. or the Defender Manufactur-
ing Company into bankruptcy.
II feel confident" he said. that our
clients will be satisfied to permit Messrs.
| Martindale and Juilliard to straighten out
| the affairs of the company. providing the
| creditors are protected. Our design In
| filing the bankruptcy petition was merely
| to protect the creditors. Suppose. for en-
ample. the receivers should discover their
| inability either to reorganlze or lquidats
| the company with the consent OF the credi-
| tors and should hand their resignation
| into court What would happen? Within
| two hours there would be filed hundreds
! Of Individual suits and hordes OF deputy
! sheriffs with writs OF attachment would
| seize anything they could Law hands upon.
! We wish to prevent sucn a situation. The
| petition is returnable on July 2. The
| Clain company must then make answer
! to the charge that It Ia insolvent. II we
| believe that the receivers are taking care
| OF the matter In the best possible way we
will gladly consent to an adjournment
\ until things shane themselves"
Mr.. Claim Aids Receivers.
John Claflin. who resigned on Thursday
as president Of the United Dry Goods
Companies and the Associated Merchants
| Company, was busy yesterday at the Of
fees of tho II. b. Clahin Company at
Church and Worth streets. He and the
other officers OF the Claim company were
giving every possible aid to the account
ants and the receivers. Through their
assistance the facts undoubtedly will DO
obtained much more quickly than at frst
was expected. Mr.. Claim declined to
make any statement for publication.
Cornelius n. Bliss. who on Thursday
succeeded Mr.. Claim as president Of the
United Dry Goods Companies and the
Associated Merchants Company, took up
at once the active work Of his new posi-
ton. II was said that both these con-
Germs were in sound financial condition
! and would not be embarrassed by the
, failure of the Claim company.
United Dry Goods preferred sold down
to SO yesterday. but closed at so, a net
loss OF Ave points for the day. as COM
pared with loss of II points on the
previous day and l4ls on Wednesday.
The selling was undoubtedly due to lq-
uidation by persons who fear that divi-
dends Of the stock will be affected by the
failure of the Clafin company.
While the common dividends may b.
affected, II Is asserted that the preferred
stock dividends are not in danger Fur.
thermore there was much satisfaction ex-
pressed by bankers over the selection Of
Mr.. Bliss president.
Bankers In Wall Street were emphatic
in asserting that the failure Of the
Claf,in company would not spread. The
banks holding the Clafin paper are in .
strong condition and are in position to
extend the notes which they hold