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

The failure yesterday Of the II. B.
ClaAin Company, one of the biggest
mercantile houses in the world. came
as a shock to the business centres
throughout the country. Coming in the
train Of an acknowledged business de-
preston, it was baieful commentap
on President Wilson's recent assei
tions. Throughout financial and me-
camille centres in this city yesterds
there was but one word in general u
Psychological"
Ihere are no accurate means of tell
ing now just how far the effects of the
failure of this great concern may
reach. With the appointment Of re-
ceivers here for the Clahin company
and its two subsidiary concerns i'm
Brooklyn, reports began to come in last
night of similar proceedings for others
Of the string Of twenty-seven drygoods
stores owned and controlled by the
parent company in cities in nearly as
many other states.
The embarrassment so far is confined
entirely to the H. b. Clafin Company
and its subsidiaries, which do not in
clude any of the local department
stores identified with the United Dry
Goods Companies and the Associated
Merchants Company, OF both of which
concerns John Clafiin was president.
Mr.. Clsfn resigned as president and
director of these two companies yes
terday and Cornelius N. Bliss was
elected to succeed him. It was an
nounced that Mr.. Claflin wished TO de-
vote his entire time to the readjust-
ment Of the Clafin company.
Receivers Take Charge.
A voluntary application for the an
pointment of receivers for the II. r.
Claiin Company was made by John c.
Eames, vice-president of the company.
before Judge Hand in the federal Dis
trict Court. The court appointed Jo-
seph B. Hartindale, of the Chemical
National Bank, and Frederick A. Juil-
lard, of 70 Wall st, receivers, with
bonds of 100000 each.
The receivers, with their counsel
Charles f. Rushmore and Simeon n
Stern, of Rushmore, Bisbee & Stern. of
40 Wall ST., formally took over the
management of the company and began
to look over the books.
In the order appointing the receivers
they are directed within ten davs IN
prepare from the best available sources
list of all the creditors and send 70
each of them notice Of an early meet.
ing Of the creditors, at which il shall
be voted whether the reeeivership shall
be continued, and who shall be ehoser
from that time forward. Also whether
the business shall be continued. and u
so, what, if any, sums the receivers
shall be permitted to borrow and q,
what terms.
Immediately following the filing %
the voluntary petition an inyolunt.r,,
petition was filed by Gregg & Niece.
ern, of l4l Broadway, as counsel for
several creditors. Later in the dav ~
same firm filed a simhsr petit;on
against the Bedford Company and ~
H. Batterman Company, of BrookI,,n
subsidiaries of the ClaAin companv a.
the same time an equity action ~
filed against the Defender Mannsao,
uring Company, another subsid;ar'.
with a capital Of $3.50. 900 and o,Bcos ,! ,,
IA Avenue c. Mr. Martindale ana A..
Juilliard were also appointed receive.
for the latter company. y
Credit Overextended.
The reason for the failure erod;,.
generally in banking and mercan,'I.
circles was an oyerextended crsdi. "'''s VIZ,
an inability to dispose of the ns.all No, an1
tile paper Of the company NJ
thirty New York banks carried
SiO'OOO'oOo, in all. of the pans
none, 1t Is said, is seriousiv :
by the failure. Between $500
banks thrOughout the cOuu<
to have handled the a.
paper. The liabilities
$34.000,0O0 and the =
s4i.000,OO0 M
xastarday ~