New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-16
TO DELAY PAYMENT
OF CLAFLIN NOTES
None of S31 800, 600 Worth
Outstanding TO Be Paid
at Maturity.
ASK HOW BRANCHES
HELPED ONE ANOTHER
System Of Financing May Be In
CURED Into When Creditors
Meet Next Week.

None Of tho S3l 100000 OF Claim
rotes now in the hand Of 1000 banks
and investors will be raid at maturit.,
according 10 "A circular sent o all note
holders by James :. AleNaldcr. prcsi-
cent a. Tho National Bank Of Com
morcC. and cha Gmcu OF the uotoholt-
err committee. II is urged that all
notes be deposited at once 20 avoid
expense and delay.
Mr. Alexander. IN his circular also
announced that an effort would be
made to save al tine stores o. the
Clafin chain that arc involved IN the
failure If tho parent house.
Interest in ,hc Cla0iu ease centred
yesterday IN tho question a. 20 how inc
moneys received on tho notes OF the
subsidiaries had been d,-hurscd. From
the statement OF M ClaAn. following
the announcement that notes OF Nati-
Gus subsidiaries had heen issued by
officers Of the comDanfes IN this city
without the knowledge Of tho nominal
heads Of the companies ln the cities
where the stores were located. 10 be-
came clear that the credit OF some com
panics had been used TO finance inc
needs Of others, and OF tho II. IS.
Clahin Company. ard m any dJudica-
ton Of tho tangled affairs OF the Sys-
tom. II MAJ prove highly important 10
show Just what became of the money
obtained on each piece OF paper II pos
siblc.
Whether the book of the CIafin com
pany Will show this ~ one OF the que
tions that may be asked AZ the meet
ing Of the creditors called for July p.
and IL is understood that the effort 10
=, a.
reasons the accountants have been so
slow in completing their report.
The Clahin case came Up IN the
Federal Court before Judge Hand early
in the dav on a motion filed by Eman-
uel Shcbar. Of Aberdeen, Miss, asking
that $4,000 he had on deposit with the
COMPANY be ordered returned to him.
The motion papers showed that he mad
deposited the money against purchases
Of merchandise. and that he had been
asked late in May 10 withdraw the de-
post unless he intended to purchase
more goods. His answer TO this was
request that the deposit be retained
until autumn, when he did his heavy
buving.
Judge Hand reserved decision after
Henry K. Stern, for the receivers,
pointcd out that the deposit was car
ried as credit on the merchandise
account Of Shcbar This Is the case in
which it was attempted last week to
show that the Claniu company was
doing "A banking business.
The sale at the Clahln store con
tinued TO attract large number o.
buyers yesterday. but no statement Of
the amount of the turnover has been
forthcoming. As pointed out IN The
Tribune. much Of the selling is to small
merchants in small lots, with the re
suit that what the trade terms IAN cpl
demic Of Clafin sales" is threatened.
Because Of this and the chance that
later the Clafin stock will be auc-
toned of the larger buyers show d
tendency 10 hold of.
John [. Eames, vice president or the
Clahln company, said yesterday ne
could not say whether an auction would
would be resorted TO in order 20 clear
decks or not SO far. he said, the sale
was very satisfactory, with interest
centring in the more seasonable goods
such rs wash fabrics
The disturbance to the regular dry
goods trade that was feared because OF
the Clanin sale has not been realized,
largely because the prices Of standard
goods have been closely maintained IN
most instances.