Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1914-07-02

greatest dry goods enterprise in the
, country and was the nucleus. together
with other enterprises which John Cla fin
! promoted. of the Associated Merchants
company and subsequently the United
: Dry Goods company organized in 1909
with its s5o,0oo,oo0 of capital stock Its
! commercial notes, II was remarked in
! Wall Street to-day, We're accepted
throughout the country almost as the
| equivalent of currency, so popular was
+ its credit.
! Alexander is chairman, asks that all
! claims be deposited with them, and a
! similar request was made in behalf Of
the merchandise creditors, who wera
called together by attorneys for the Mer-
chants Protective association. Both the
committees announced they would de-
! mand voice in the plans for reorCaniza-
ton Stlll another protective committee
| was organized under the auspices Of the
! Creditors Audit and Adjustment associa-
ton and the receivers are directed by the
court also to organize a creditors COM
mittee, to be chosen by all the creditors
at meeting to he held at an early date
AT this meeting the creditors will be au-
thorized by the court to vote whether the
recelvership shall be continued and
! whether other receivers shall be appoint
ed. In fact, the authority granted them
| by the court appears to give them virtual
control of the company's business, sub
ject to the approval of the court.
ENGAGEMENTS SEVERED
In announcing the resignation OF Mr.
Clahin the board of directors of the
United Dry Goods company and the As
ISOLATED Merchants company issued the
following statement:
This sewers the mana gement of these
last two companies from the stores in
which Mr. Clafin has personal interest.
Mr.. Claflin desires to devote his entire
time to the affairs of the H. b. Claflin
company and the various retail stores
in which he is personally interested
Cornelius n. Bliss is one OF the leading
merchants of New York, and is consider
ed as one of the best equipped men of
this city for the position which he has
accepted"
According to Mr.. Alexander, the Clafin
company's difficulties We're precipitated
by its endorsement of the notes OF these
Clafiin enterprises which, owing to gen
erll depression in the dry goods business,
| they were unable to pay at maturity.
Every dollar of the claims in this class.
he said, resulted from such endorsement.
j. NJ. Rosenberg, attorney for the mer-
chandise creditors, said:
The situation was that paper called
'Clafin recevables' bearing the endorse
ment of the II. r, Claiiin company has
found its way to the hands of the banks
"a conflict of interests between the note
holders committee and a committee of
merchandise creditors may arise. That
is the reason why we are forming our
own committee"
STORES AFFECTED,
Among the Clahin stores for which
receivers were appointed to-day were
the II. Batterman company and the
Bedford company of Brooklyn, the
Montgomery Fair of Montgomery, Ala.
and the Jones Store company of Kan
sas City.
An accurate list of all the Cla6in
enterprises was not available here to-
night
The United Dry Goods company
stores which are not affected by the
receivership are the following;
Hahne & Company. Newark, N j:
Stewart Dry Goods company, Louis
vile. Ky.
william Hengere, Buffalo. n. Y.
Powers Mercantile company, Mime
|apolis. MINI.
Lord g. Taylor, New York.
The Associated Merchant company's
stores. likewise not affected, are:
McCreery Company, New York.
Stewart e. Company, Baltimore.
ONeill. Adams 4 Company, New
York
D. N. Adams & Company Buffalo.
g. c. Gunther, New York