The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-06-25
CLAFLIN and co.
GOES TO WALL
Biggest Dry Goods Concern in
the Country Fails.
The Business Is Placed In the
Hands of Receivers.
OWNED 4 STRING Of STORES
Located in New York and Other
Large Cities.
The Jones Bros. House of Kan
sas City Is Included.
1 BILLION DOLLAR CONCERN
I.ocafed i'm New York and Other
Large Cities.
The Jones Bros. House of Kan
sas City Is Included.
4 BILLION DOLLAR CONCERN
The Total Net Income for 1913
Was S2,Os3,7s1.
Paid Dividends of 1928 Per
Cent on Preferred.

New York, June 25.-The vast Claf-
lin dry goods enterprises collapsed to-
day with the appointment of receivers
in New York for the wholesale house
of the H. B. Chaflin Co., and the an
nouncement that nearly 80 retail
stores throughout the country would
close. The liabilities of the firm are
estimated at $35,O0O,OO0 the assets at
more than $4O,0OO,0OO. Over-extended
credits caused the failure, the largest
of its kind in the history of the coun-
try. Though affiliated with the bank
rupt firm through stock control. the
United Dry Goods companies and the
Associated Merchants company to-
Rether with their stores in New York
and elsewhere were not involved in the
failure.
1t was stated that their financial po-
sition was strong.
For the retail stores in the Claflin
string. ancillary receivers will be nam
ed and they will remain closed pend
ing an adjustment of the parent COM
pany's tangled affairs.
Involves Many Merchants.
New York, June 25.-The great dry
goods house of H. B. Claflin Co., failed
TODAY with liabilities of $4,000, 900.
The assets are estimated at $4O.-
100000.
Two proceedings s-friendly and un-
friendly-threw the firm into bank
ruptcy, and two receivers were named
under bonds of 100000 each. The
Claflin company controls or Is a1fillat-
ed with some thirty retail stores
throughout the United States and 1t
was the Endorsement of their paper,
held by more than 5000 banks, here
and in interior cities. that caused the
crash.
The United Dry Goods Co, and the
Associated Merchants Co., though af-
filiated with the Claflin company,
through stock control, were in no way
involved in the failure. Their chain
of stores, it was stated in the imam
cial district, would remain intact.
Hope was expressed also that the
Claflin retail enterprises would be
saved. Unless blocked by creditors a
reorganization of the failed firm IS
contemplated according to statement
issued by John Claflin, the president.
History OF the Concern.
The H. B. Claflin company (inc.),
of which John Claflin is president. was
organized IN 1890 to conduct a whole
sale dry goods business. 1t is con-
trolled by the Associated Merchants
company, which is in turn controlled
by the United Dry Goods companies.
was incorporated under the laws OF
Delaware May 81, 1908, to CONSOLE
date the dry goods interests of John
Claflin in New York and other cities.
The company acquired In exchange
for $9,S13.OOO of its common stock a
like amount of the CAP ital stock of
the Associated Merchants company,
giving it majority, the latter already
holding control OF the following COM
panies:
The H. B. Claflin company. James
McCreery company, O'Neill Adams
New York; j. N. Adams company of
Buffalo, and Stewart and Co. of Bal
timore. The companies also bought
outright from John Claflin the entire
business of Hahns and Co. OF New
ark; Powers Mercantile company of
pany. Buffalo, and the Stewart Dry
Goods company of Louisville, Ky. In
June, 1910, control of Lord and Tay-
lor of New York City was acquired.
The officers are: John Claim,
president; Louis Stewart. vice presi-
dent and treasurer; ]. c. Eames. Sec
ond vice president, and directors,
Lewis Stewart, Howland Davis, Geo.
F. Crane. Ernest Stauffen. Jr., John A.
Stewart. w. M. Barrett. John Clafiin
and Thomas F. Bayard.
Financial Condition.
The total net income 1Or 1918 was
$2,OS3,7s1, dividends on preferred
stock being &754.8S3, and on common
s1,154,2OO. a final surplus of STA
69S. The percentage earned on pre-
ferred stock was 1928 per cent and
on common stock 9.21 per cent.
The assets included 9S,131 shares
capital stock of the Associated Mer-
chants company, the combined net
tangible assets of Hahne and Company.
the william Hengerer company, the
Powers Mercantile company and the
Stewart Dry Goods company, the cash
of the combined companies, the Sc
curities of Lord & Taylor and cash
available for further investment.
Almost simultaneous with the filing
of the suit in equity John Muller. Will
liam Worth and Albert F. Bergner, all
of this city, filed an involuntary Pc
tition in bankruptcy against the firm
The company owes Muller, according
to this petition. $731; Worth is a cred
itor for $S.131, while Bergner's claims
are placed at $2S,370.
The receivership caused a furry in
the financial district although rumors
that something was impending were
rife all day yesterday. 1t was asserted
IN banking circles that the many retail