The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-06-25

subsidiaries affiliated with the inter-
ests would be taken care of. The ap-
pointment Of receivers il ascribed to
an over-extensiOn of credits.
Muller and others, who brought the
involuntary proceedings. allege that
the Claflin concern committed an act
Of bankruptcy in consenting to the re-
ceivership, in the equity proceedings.
They allege further that the concern
has transferred certain property to pre-
ferred creditors.
The equity proceedings are friendly,
the first being begun by John c. Eames,
who is q vice president of the company.
The liabilities Of the firm, represented
by commercial paper held all over the
country are estimated at $25, 900, ,00O
1t Is said that the company did not
borrow heavily on its own paper, but
endorsed notes made by interior mer-
chants for goods sold. The inability of
these interior houses and the inability
OF the H. B. Claf1in company to pay
OF the matured portion Of these notes
is ascribed to general dull business con-
ditions and to decreased sales and to
slow collections.
Twenty-eight Stores Controlled.
1t is understood that Clafiin con-
trolls about 28 dry goods firms
throughout the United States distinct
and apart from those affiliated with
the United Dr5 Goods company.
Between $500 and 5000 banks hold
paper of these stores. Twenty-Five
or thirty Of the larger discount banks
In this city are creditors of large
amounts. The liabilities of the firm
are estimated at about $35, 100000.
Announcement was made this after
noon that all the so-called Claflin
stores. strictly speaking. would be
clcsed. pending adjustment of the com
pany's AFFAIRS.
Statement from the Company.
The assets are $44,00O,0OO. The
following statement was given out at
the office of the H. B. Clafiin COM
pany: sts ,--
'"The unprecedented shifting Of
trade centers in New York has caused
great loss to many interests in the
case OF the H. B. Claflin company
The uptown movement of business
has seriously curtailed our wholesale
profits and las compelled us to rely
mainly on the profits from financing
retail stores throughout the country.
Their rapidly expanding business has
occasioned large capital requirements
which we have not been able to meet
A recefvership has therefore become
necessary pending a readjustment of
the affairs of the company. A plan
of reorganization for the II. b. Claf-
lin company will soon be presented,
which we hope ~ill prove acceptable
THE Associated Merchants COM
pany and the United Dry Goods COM
panies are not themselves borrowers
of money. They are in exceedingly
strong financial positions and the sue
cess Of their retail stores is assured"
Jones Store at X. G. Included.
Kansas City, June 25.-Alexander
New, legal representative here of H.
B. C1aflin and Company Of New York,
was appointed receiver today of the
Jones Store company Of this city, the
stock OF which is owned by the Claf-
lins. ---.'-'''. ..---e.
e. A. Brown, legal associate Of Mr..
New, made application to Federal
Judge Van Valkenburgh for the ap-
pointment of q receiver as a result OF
the appointment Of receivers for the
H. B. Claflin company.
1.-The action was taken here as a
protective measure in order to keep
the Jones store open, pending a reOr-
ganization of the affairs of the Claflin
company" E. A. Krauthoff, Mr.. News
law partner, explained.
Judge Van Valkenburgh's order in
granting the application for the re-
ceivership was that the business
should continue as usual. Besides
owning the stock OF the Jones store.
the Claflin company is a creditor as
we'll and the receivership here follows
naturally as necessary step in the
readjustment of the parent house."
The Jones company then owned by
L. M. and J. Logan Jones, went into
receivership June 4, 1910, and was
brought in by the C1afiin company in
January, 1911. L. M. Jones has since
continued as manager under the new
organization. He now is in New
York.