The Washington times., 1916-06-05
JOHN CLAFL|N NOW
CLOSE TO POVERTY
Merchant Who 0noe Controlled
$50,000,0o0 Stores Hasn't
Even Life Insurance.

NEW YORK, June 5.-John Claflin,
who until the crash of the H. b. Claf-
lin Company in June, 1914, was the
country's biggest figure in the field
OF merchandise, who controlled twen-
ty-seven stores that were estimated
as worth $50. 0oo. 900. and who was re-
puted to have q private fortune of
$1,000 900, has been reduced to the
verge Of poverty.
II was revealed yesterday that his
possessions comprise his home in Nor
-personal property worth less than
$4,000 and a bank account of 5000. He
has not even a life insurance policy.
Claflin's real estate. his equity in
his stocks and bonds, his automobiles
and the. thousand luxuries he once en-
toyed have been thrown into the pool
from which his creditors are gather
Ciafiin's transfer of his properties has
brought him a discharge from the
debts entailed in the operation Of his
stores.
man who a few years ago was presi-
dent OF the New York Chamber OF
Commerce, who was in the forefront
of all charitable. philanthropic and
civic movements. has been disclosed in
the report filed with the supreme court
by Charles o. Mas. referee.
Mas was appointed referee to de-
termine whether Claffin had assets
which could be levied on to satisfy a
him by the United States Realty and
| Improvement Company. They sued
under Claims guarantee Of the rent
OF the O'Neill-Adams Company store,
cfafiin. who was examined by Mas
and by r. q. Baggage. representing
the creditor said that at the present
time he is not engaged in business of
any Sort, and has no office.
to receivers Of the Clafiin Company the
| corporate securities Of all his stores, SO
a reorganization might be effected. His
creditors accepted, IN lieu Of payment,
poration. a company formed to effect
| reorganization.
Claiin turned over also l.4U shares
OF the Columbia River Fruit Packers
Bank OF Commerce stock. ~ snares or
| the Home insurance Company, and
certain mortgages. All these were to
be converted for the aid of women who
| had deposit accounts with his stores.
In reply to a question he said that he
had given nothing to his wife within
a year prior to the failure with the
exception OF a FEW inexpensive pres
ents. He added that he has no per-
sonal life insurance policy.
| That Clafiin was sincere In turning
| over all his real and personal property
was testified by James s. Alexander,
| president of the National Bank OF
| Commerce. All C1afiin received in re-
| turn was a release OF all his indebted
ness and a certificate OF beneficial in
terest in the capital stock Of the Mer-
| camille stores Corporation after the
payment OF all Indebtedness.
At the present time deposit creditors
have received Is cents on the dollar
but further payments probably will be
made to- them from the sale of the
notes of the Mercantile Stores Corpo-
ration.
Questioned about the guarantee on
which the United States Realty and
Improvement Company obtained its
| judgment. Claflin said 1t Is doubtful II
he guaranteed the payment of the
| O'Neill-Adams Company's rent
"They claimed that did" he said.
land that the assets were not suffi-
cent to meet the liabilities. My own
opinion is that they were. II the store
had been carried on / believe It would
be going today apd would be making
a little money"