The New York herald., 1921-07-28
TRUSTEES ARE NAMED
f. c. Dumaine, F."W, Rem
ick and Neal Rantoul to
Administer His Affairs.
BREAK WAS SENSATIONAL
United Drug Shares Dropped
20 Points Yesterday, Reach
ing Low Mark of 81.

Special Despatch to THE New YORK HERALD.
BosToN, July 27-Louis X. Liggett
In a statement issued by him tonight
admitted that the heavy decline in the
price of United Drug Company COM
mon stock on the New York Stock
Exchange, of which company he is the
head and founder, was responsible for
the transfer of his personal assets into
the hands of three trustees, as an
nounced late this afternoon.
Mr.. Liggett states that he is a heavy
holder of United Drug common, which
he began buying some time ago at
s142 share and which he continued
to buy down to $50 share. The stock
to-day touched 54 after drop Of about
80 points within the last two days.
The market decline has shrunk his
personal assets more than s5,000,000
during the last eight months. he de-
clares.
Business Unaffected.
The action he has taken was made
necessary. he explains. for the reason
Ludt tDe ueClne IN the SJOCk was so eX-
treme that 1t required margins he could
not meet" He emphasized that only his
personal affairs are involved and that
his various large business enterprises
are unnvolved and unaffected
Following UP the announcement late
this afternoon from Frederick Snow of
CASTOR, Snow, Saltonstall G. Hunt. to
the effect that Mr.. Liggett had trans
ferred his assets into the hands of three
l. -f4 49,
tors, Mr. Liggett issued this statement:
"Owing to the decline in the market
price of Unied Drug Company common
stock in the past forty-eight hours. re-
quiring margins which I could not meet
/ felt 1t necessary to have trustees ap-
pointed to administer my personal assets
for the benefit of my creditors.
This in no way affects the United
Drug Company, Liggett's International.
Liggetts Drug Stores, nor any of their
respective subsidiaries. All of these
companies are in absolutely sound
financial condition. Their combined
business is running at the rate of over
100000 900 year. Inventories have been
materially liquidated and loans have
been paid off from the proceeds of the
recent bond issues of the United Drug
Company.
Let me reiterate that the situation Is
involves any of these companies. Ny
temporary financial embarrassment
comes from the fact that my assets,
which consist largely of securities listed
on the stock exchanges. have declinsd
in market price over s5,0o0.000 in the last
eight months. I have bought United
Drug Company stock at sl42 share and
have continued to buy 1t down to $50.
In other words. have bought IL as long
as / could and have not sold share.
Necessarily. as all of my securities have
declined in market prices, I have had to
put up more and more capital to protect
my loans.
Affected by Market Dealing.
Il have not lost money through OUT
side interests except In the general de-
cline in the market price of securities
in the last year I have not gambled
in the stock market.
"The step l have taken relates purely
to my personal affairs and will in no
way interfere or affect my administra-
tion of the United Drug Company or it's
subsidiary companies, nor will have
any effect upon the management of the
Liggetts Drug Stores. not Liggetts In
ternational nor its subsidiaries.
I'VE shall go right ahead with tho
plans contemplated and announced
during the past six months 20 consoii-
date all OF those companies when the
general conditions are propitious. hut
those plans involve no new form Of
financing"
The three trustees who take charge OF
his assets are Frederick c. Dumalne.
Frank w. Remick. and Neal Ransoul.
That Mr.. Liggett. who rose rapidly TO
leadership in one of the worlds largest
drug manufacturing and distributing or
ganizations. II not the largest, was feel
ing the pinch of hard times was indi-
Gated TO many by the recent signs Of
various radical cuts in his household
expenditures, The Liggett stable was
let few weeks ago and the splendid
Liggett home a. Chestnut Hill, Brook
line. was recently placed upon the
market.
Mr.. Liggett. born forty-five years ago
In Detroit. received his early business
training as a salesman. His expe-
rience in manufacturing and distrbb-
utng a headache remedy suggested
70 him the big possibility in cooperative
manufacturing and merchandising Of
drug store goods Application of this
principle resulted in his promotion from
salesman TO general manager Of the
Chester Kent Company OF Boston
In 1902. with forty druggIsts as stock
holders. he founded the United Drug
Company. with n manufacturing plant
In Boston. In fifteen years the compan