The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1914-06-25
Court Receivers Are Named for
a Big Wholesale Concern
in New York.
FURRY IS A RESULT
of Rumors Rife But the Scare
Does Not Seriously Affect
the District.
az Assee,Arrp ,srso

Z NEW YORK, June 25.-Receivers
were named today for the wholesale
dry goods establishment Of the II. B.
Claim Company. Associated COM
panies were not involved. The re-
ceivers were named as the result OF
a suit In equity filed in the district
court. Judge L. Hand named as re-
ceivers Joseph B. Martinsdale, presi-
dent Of, the Chemical National Bank,
and Frederick A. Juilliard, men,
Der of the firm of A. B. Juilliard and
Company, under bonds of $500, 900
each. The H. B. Clafin Company,
of which John Claflin is president,
was organized in 1890 to conduct
wholesale dry goods business. 1t is
controlled by the Associated Mer-
chants Company, which is in turn
controlled by the United Dry Goods
Companies.
The United Dry Goods Companies
was incorporated under the laws Of
Delaware May 81, 1909, to consol-
idate the dry goods interests of John
Clafin.
The receivership caused furry
in the financial district although ru-
mors that something was impending
WGtS Il1G III udy IL WAS
asserted In banking circles that the
many retail subsidiaries affiliated
with the interests would be taken
care of. The appointment Of re-
ceivers is aseribed to an over extern
sion of credit.
The liabilities of the firm repre-
sented by commercial paper held all
over the country are estimated at
100000. It is said that the
company did not borrow heavily on
it's own paper but endorsed notes
made by interior merchants for
goods sold. The inability of these
interior houses and the inability of
the H. B. Claflin Company to pay off
the matured portion of the notes are
ascribed to general dull business con-
ditions; to decreased sales and to
slow collections.
1t is understood that the Clafin
company controls about twenty-eight
dry goods firms throughout the Unit
ed States apart from those affiliated
with the United Dry Goods Compan-
les. Between $500 and 5000 banks
hold paper of these stores. Tween
4tg-five op.t thirty of theslargs discount.
banks in this city are creditors for
large amounts. The liabilities of the
firm are estimated at about $35, 000,-
900, the assets at about 44,00O, 900.
The following statement was given
out at the Office of the II. B. Olaf
lin Company:
THE unprecedented shifting of
trade centers in New York has caused
great loss to many interests. In the
case of the H. B. Clatlin Company
the uptown movement of business
has seriously curtailed our whole
sale profits and has compelled us to
rely mainly on the profits from
financing retail stores. Their rapidly
expanding business has occasioned
large capital requirements, which we
have not been able to meet. A re-
ceivership has, therefore, become
necessary pending a readjustment of
Of reorganization of the H. B. Olaf
the affairs of the company. A plan
lin Company will soon be presented
which we hope. will prove acceptable
to both creditors and stockholders.
THE Associated Merchants Com
pany and the United Dry Goods
Company are not themselves borrow
ers of money. They are in exceed
ingly strong financial position and
the success of their retail stores is
assured"