The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1914-06-25
STORES ALLIED
WITH CLAFLIN co.
TO CLOSE DOORS
tContinueh from PAGE one)


the firm dropped IA points. II was
stated that fully % big New York
banks held Clahin paper and that
numerous banks throughout the coun-
try handled business for the subsidi-
airy companies.
Ii was stated that the United Dry
Goods Co. and the Associated Mer-
chants and controlled companies were
not directly involved in the receiver
ship
The claim was made that much OF
the difficulty confronted by the firm
resulted from the competition Of re-
tail stores organized by John CLAIM,
head OF the H. B Claflin Co.
The Claim Co. has had the highest
reputation for solyency and members
OF the firm pointed out today that
while the company stopped payment
on It's notes in 1853 and in 1878 no
holder ever lost dollar on the firm 5
paper In the past.
The equity petition. on which the
court appointed the receivers, was
filed by John c. Eames. who is vice
president of the II. r. Clafiin Co.
Bankruptcy proceedings were
brought by John Muller of Richmond
Hill. l.. L.: William Worth. OF New
dorp, S. l., and Albert F. Bergner, OF
New York. The petition states the
company owes Muller 1871 900, Worth
1871, and Bergner $2S,370.
The same receivers were appointed
in the equity and bankruptcy proceed
ings
A third suit was fled by w. p.
Odell. charging that the Defender Man
ufacturing Co. subsidiary OF the Chat
lin concern, Ia indebted 10 him for
$4,000, and also asking involuntary
bankruptcy.
The company did not borrow heay-
lily on its own paper but by endorse
ment of notes made by companies In
various cities, which were practically
controlled by the Claflin concern.
These concerns are known as Claflin
-Ael+ses-TA smaller concerns we're
practically dependent on the Clafiin
name for their credit, so that the pa
per was practically the same as pa
per directly issued by the II. B.
Claflin Co.
A statement issued by the firm
from John Clahin's Office, said:
THE unprecedented shifting of
trade centers in New York has
caused great loss 60 money interests.
In the case OF II. B. Claim Co., the
uptown movement OF business has
seriously curtailed our wholesale
profits and has compelled us 20 rely
mainly on the profits from financing
retail stores throughout tine country
Their rapidly expanding business
has occasioned large capital require
ments which we have not been able
to meet. A receivership has there
fore, become necessary pending a re-
adjustment OF the affairs OF the com
pany. A plan OF reorganization for
the II. b. Claflin Co will soon be pre-
scented which we hope will prove ac
ceptable to both creditors and to
stockholders The Associated Mer-
chants Co and the United Dry Goods
Co. are not themselves borrowers of
money. They are in exceedingly
strong financial position and the sue.
cess OF their retail stores is assured
We're all going 10 stand together"
was the statement made here today to
the United Press by J. p. Martindale,
president of the Chemical National
bank and Mrs Hetty Green's right
hand man, discussing the failure OF
the II. b. Clafiin Co. of which he was
appointed one OF the receivers.
will the Chemical National stand
behind the Clafiin FIRM" Martindale
was asked.
Were all going to stand together"
he reiterated.
Direct questions as to whether the
Chemical National bank. which really
Is Hetty GREEN'S a creditor OF the
Claflin firm, were met by a shrug and
smile
"The list OF creditors and OF as
sets" he said, will be made public
later Then you'll know. For the
present think the duty OF the receiv.
ers is 10 act so as 10 conserve the as.
sets OF the firm and not to talk. No
arrangements have yet been made for
any action. have not even seen Mr.
Juillard, the other receiver appointed
by Judge Hand will see him later
in the day cannot say when a
statement will be issued by us, II at
all. Certainly there will be none I'M
I'll we can get together"
Clever tactics. IL is said. defeated
bankruptcy proceedings projected by
creditors OF the Clafiin firm. Inform
ed that such proceedings were immi
nent, attorneys for the Clafiins were
first on hand today and Just after q
o'clock the first proceeding. a suit IN
equity, was fled, Under Il. receivers
were appointed. II was not until ar
terward that bankruptcy suit was
filed Others followed. but the deci-
sion OF JUDGE Hand in the equity suit
had resulted in the appointment OF
Martindale a1l Juillard and the ar
fairs Of the 'Clahin firm were In
friendly hands.
AZ the creditors meeting the fol.
lowing list OF subsidiary stores OF