New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-02-20
UNITED DRY GOODS
MAKING PROGRESS
President Bliss Sees Hope
of Dividends on Five Big
Companies Soon.

The United Dry GOODS Compahles
and the Associated Merchants COM
panv. the two corporations which own
or control a chain OF important retail
stores in this and other cities, a. well
as the II. B. Clafin Company when
went into receivership last summer
made public statements yesterday
showing their financial condition on
December 81, 1914. The reports cover
an eleven months period.
Neither company, as has been tne
case IN previous years, showed an IN
come account. despite the fact that the
Stock Exchange requests such state
men, from corporations whose secur-
ties are listed there. In place OF the
usueI income account statement is
made relative TO earnings by Cornelius
\ Bliss, jr., president Of the United
Dry Goods Companies, who says:
THE earnings for the last eleven
months Of the subsidiary companies as
reported by them are such az would
ertitle this company 20 receive up
ward Of 100000, in addition TO when
the percentage OF earnings of the Asso-
VI
this company would be entitled ana
other income would give a total OF
upward Of Sl,l50O00. The preferred
stock dividends for eleven months
would be S695,s23. Thus II viii be
seen that the company would be en-
titled 70 receive a considerable amount
above its preferred stock requirements.
On the other hand, owing TO the posi-
bic depreciation in value OF the capltal
stock of the Associated Merchants
Company, Of which this company owns
qsIS1 shares. with the impairment OF
cspital which would be thereby oc-
casioned. this company could not pay
any dividends during this period.
1.-THE matter of the reorganization OF
the affairs of the two companies so
as 10 restore them 10 a dividend pay
ing basis has been held IN allegiance
nendinp a settlement OF various mat
ters with the II. b. Clahn Company
which are now in course or maj al
iustment. and we hope in the near
future to be able 10 present a plan 20
stockholders under which there can De
an early resumption Of DIVIDENDS.
Included in the statement OF this cor
poration. in addition 10 its balance
Sheet are those OF the Associated Mer-
chants Company. Hahne & Co., VIII
lam Hengerer & Co.. the Powers Mer-
camille Company, the Stewart Dry
Goods Company and Lord & Taylor. In
respect 10 the latter the report pre-
diets satisfactory earnings. owing -
the removal Of the company store 10
Thirty-ciChth Street and Fifth Avenue.
A deficiency Of SS06.5s9 in the liabll-
ties of the United Dry Goods Compa-
MICS was attributed TO the larger dehcit
Of Si.70S,A4S shown in the balance sheet
Of me Associated Merchants Company
which il was explained was due to the
marking down Of the capital OF the IL. d.
Claim Company and the ONeill-A Adams
Company. As the securities Of both con-
Germs are now Of questionable value,
they were not included in the balance
sheet of the corporation which directly
controls them, the Associated Mer-
chants Company. MIR. Bliss, who IS
also president OF this company, makes
this statement in the report:
"The earnings Of the companies
owned by the Associated Merchants
Company for the last eleven months,
as reported by them. are such as would
cntitlc this company 10 receive upward
Of $4,000. The preferred stock divi-
dend for eleven months on both classes
Of stock would be S4S8,376. Thus 1t
will be seen that this company would
be entitled TO receive a considerable
amount above its preferred stock re
ouirements. On the other hand, the
F liquidation Of the O'Noill-Adams Com
pany. approximately so per cent Of
whose securities arc owned by this
. company, and the failure Of the II. b.
Clahin Company, over one-haf Of
/ whose securities are owned by this
company, with the loss attendant there
on and the impairment Of capital
caused thereby, made it impossible TO
/ pay any dividend during this period.
"As incidental to the liquidation OF
the O'Neill-Adams Company, this com
| pany purchased the capital stock Of the
Surety Coupon Company for the sum
T Of $4,000 The earnings of that com
pany arc satisfactory. and it is believed
/ that the purchase will prove adyan-
tageous. Il will be noted that this
company is carried on the balance
sheet Of the Associated Merchants
! Company at S546,OO0 81, which repre-
scnts its cost price, plus its earnings
since its purchase"
In the report of the Associated Mer-
chants Company are included separate
balance sheets of James McCreery g.
| Co., Stewart & Co., ]. y. Adam & Co.,
/ c. &. Gunther's Sons and the Higbee