The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-06-25
||G DRY GOODS CONCERN
| HAS GONE TO THE WALL

York banks held Clafin paper and
that numerous banks throughout the
country handled business for the SUBJ
the United Dry Goods company and
the Associated Merchants and con-
trolled companies were not directly
involved in the receivership.
The claim was made that much of
the difficulty confronted by the firm
resulted from the competition Of re-
tail storSs organized by John Clafiin.
head Of the H. B. Claflin company.
Tho Clafiin company has had the
highest reputation for so1vency and
members OF the firm pointed out to-
day that while the company stopped
payment on Its notes In 1853 and in
1878. no holder ever lost a dollar on
the firms paper in the past. The
equity petition on which the court
appointed the receivers was filed by
John G. Eames who is vice president
OF the H. B. Claiin company.
The company did not borrow heav-
lily on its own paper but by endorse
ment of notes made by companies IN
various cities which we're practically
controlled by the Claflin concern.
These concerns are known as Clafiin
houses. The smaller concerns were
practically dependent on the Clafin
name for their credit so that the
paper was practically the same as
paper directly issued by the H. B.
Clafin company.
A statement issued by the firm
from John Claflin's office said:
"The unprecedented shifting OF
trade centers In New York has caused
great loss to money interests. In the
case of H. B. Claflin company the up
town movement Of business has SER
iously curtailed our wholesale prof.s
and has compelled US to rely mainly
on the profits from financing retail
stores throughout the country.
Their rapidly expanding business
has occasioned large capital require
ments which We, have not been able to.
meet. Al rec6fS 6fSefship hass thersfora
become necessary, pending a readjust-
men. OF the affairs OF the com pany.
A plan OF reorganization for the H.
B. Claflin company will soon be pre-
sented which we hope will provo &C
ceptable to both creditors and stock
holders. The Associated Merchant
company and the United Dry Goods
company are not themselves borrow
ers of money. They are In exceeding
ly strong financial position and the
success OF their retail stores Is as
sured
At creditors meeting, the follow
ing list Of subsidiary stores OF the
Claflin Co. was made public: Bedford
Co., Brooklyn; ]. Bacon & Sons. Louis
Vile; Casner Knott Dry Goods Co.,
NJ. J. Connell Co., Butte;
Joslyn Dry Goods Co., Denver, Colo;
The Fair Company, Cincinnati; Kline
Bros, Altoona, Pa; Lord & Gage,
Reading. Pa; Lyon Drygoods Co., To
ledo, Ohio; Geo. w. McAlpine Co, Gin
McCreery & Co., Pittsburgh,
Pa: Montgomery Fair, Montgomery,
Ala; Peoples Store Co., Tacoma,
Washn.; Root Drygoods Co., Terre
Haute, Ind; Spring Drygoods Co.,
Grand Rapids, Mich; White House
Co., Spokane, Washn.; J. B. White Co.
Augusta, Ca; H. Baterman Co., Brook
lyn: Watt Rettew G Clay, Norfolk, Va.
Thos. O. Watkins, Ltd, Hamilton,
Ont: Hennessy Co., Butte, Mont.
Copper City ommercial Co., Anacon- |
da, Mont; MacDougall & Southwick
Co., Seattle, Washn.; Jones Sore Co.,
Kansas City, Mo-; Lasarus Bros, WIKI |
esbarre, Pa; The Higbee Co., Cleve-
land, Ohio: Powers Merchandise Co.,
Stewart G Co.. Balti- |
more; Hanne & Co. Newark, N.
T.. N. Adam Co., Buffalo, N. Y.
VIM. Hengerer & Co. Buffalo; G.
r Gunthers Sons, New York Cit";
Lord & Taylor, Fifth Ave-, New
York city; James McCreery & Co.,
New York City; O'Nei1l-Adams Co.,
New York City.
The above list does not include the
claflin stores in New York City and
4 number of prominent stores in other
cities all connected with the Claflin
concern but not listed as subsidiary