MULTI-MILLIONAIRE RUINED IN YEAR 1923, STAGES “COME BACK”

Manawatu Times, Volume LIV, Issue 6867, 23 March 1929, Page 4

MULTI-MILLIONAIRE RUINED IN YEAR 1923, STAGES “COME BACK”

Big business will soon witness one of the most spectacular “come-backs” in the history of finance, when Mr Clarence Saunders, whose career is one of tho romances of Wall Street, opens 3C5 grocery stores in 210 cities of the country. He will form one of the most gigantic retail corporations in the world. His success follows his first drop from multi-millionaire to “down and outer.”

Mr Clarence Saunders, once the president of the “Piggly Wiggly Corporation,” is a doubly self-made man. Once he was an iron puddler. Next a grocery clerk at 8 dollars (about 335) that the stock of the “Piggly Wiggly” a week. Then he became the head of the nation-wide “Piggly Wiggly Chain Store Corporation.” He juggled millions with the utmost nonchalance. He

was ruined through a misunderstanding. Now he is back again. . .It was in 1923 that Clarence Saunders got into trouble and lost all he had. ‘ ‘ The Piggly-Wiggly. ’ ’ Late in November, 1922, several small companies operating in the east under licenses from an entirely different concern, the “Piggly Wiggly Corporation of Memphis,” went into bankruptcy. Because of the similarity in names professional traders in New York and Chicago started to sell stock for a decline. The stock went from 50 dollars to below 40 dollars. Mr Saunders misunderstood. He thought, and asserted in plain terms was being raided by professional stock manipulators. He shouted defiance and stern threats at Wall Street, and made his sensational corner on the 1923 market. His buying started at 40 dollars a share. Then he demanded delivery. But he had not reckoned with the Stock Exchange. Tho Exchange barred “Piggly Wiggly.” Saunders demanded that the “short” interests should settle immediately for 150 dollars a share. They did not. His

price was subsequently cut to 100 dollars a share. Still there was no settlement. The prices attracted sellings in all parts of the country. It was discovered that the corner leaked badly. The shorts bought up the offered stock. Then they made stock instead of cash deliveries to Saunders. He had expected and needed the money. He was left “holding the bag,” as the expression goes there. Battle With Wall Street. But ho continued to fight Wall Street. He tried to float the stock in Memphis. Newspaper advertisements told of his straits in full pages of screaming type. Ho would face personal bankruptcy if Memphis, his home town, did not help him out. Two hundred Memphis citizens pledged their services to aid him selling tho stock. They failed in their attempt. Saunders borrowed money right and left from pools and banking interests to fight his Wall Street Battle. In more advertisements, by mail and newspapers, he attempted to sell his stock. Lawsuits next began. The pools insisted that ho should take a holiday whilo they took control of the “Piggly

Wiggle Corporation,” because he could not pay his debts to them. In a fullpage newspaper advertisement, entitled ‘Fighting for My Life. ’ he asked to bo given several months longer to liquidate the loans for which the stock acquired by the pools was collateral. It was a desperate gesture, and he lost. August, 1923, found him out of a job. Air J. C Bradford, a. Nashville insurance man, succeeded him as president of the organisation. The pools took over his assets, valued at 9,000,000 dollars (£1,800,000). Homes, motor-carS) personal belongings, and estates wer» swept away. Starting Life Again. Ho borrowed a meagre 12,000 dollars to start life again. In his business reincarnation he bought and sold shops judiciously. He built up a new chain of stores in the south. • The constant legal warfare between Saunders and his old corporation continued. On January 4, 1926, he agreed to pay them 150,000 dollars (£30,000), in two years, in return for which they would waive all claims against him. He agreed to stop all litigation. He sold tho use' of his name to more than 200 stores.