The Birmingham age-herald., 1921-08-02
By HOLLAND

LOUIS h. IlgBett mas turnlShed an other demonstration of the fact that it sometimes happens that a man may be possessed of unusual busi- ness ability, and yet is overwhelmed by conditions in the securities mar ket he did not forsee and could not control. considerable company of men who have succeeded admirably in their business activities but who were ripped up after entering the securities market could be shown to Mir. Liggett teaching him that he is not an exception.
 Another feature associated with the assignment to trustees of MT. Lig- getts personal assets, is the fact that notwithstanding the almost unprece- dented drop within few days in the market price of the stock of the cor poration which Mir. Liggett created and developed this coronation is undoubtedly perfectly sound. It's creators may have collapsed In a business point of view, but he had abundant faith in the United Drug company. He was familiar with it's condition. He had what is some times called inside information. His confidence of the financial and busi- ness soundness of this corporation led him to buy it's stock continuing his purchases notwithstanding a drop within a few days of some 40 points and a drop of 3J points within two days
 If Mir Liggett had not been con fident that this corporation was abundantly strong and if he had no. felt certain that however the marKe may have played with the stock or this company, nevertheless the com
 pany is so strong that 1t will re- gain it's market prestige, he certainly, would not have bought many thous- and shares upon falling market
 Had he been so disposed he might have follAwed the example set oc- casionally by executives of corpora tions who had reason to know that the market price of the stock was too high and who therefore secretly unloaded as much of the stock which they possessed as 1t was possible for them to unload.
 Mir Liggett, however, continued buying, and this necessitated the ob-
 taining of large loans from banks which accepted the stock as collateral
 security. Apparently he has been call ed upon to pay these loans or great 1y to increase the margins and this he was unable to do
 What C, F. huntington Dtu Mir. Liggett's embrassment remind ed some of the veterans in the finan- cial district of the experience of C.
 P. Huntington at the time of the money famine which followed the
 panic of 1893. Some of the banks at that time were carrying large loans for Mir. Huntington, and behind these securities of the Southern Pacific. or these securities MT. Huntington was 1.-the owner. The banks called upon him to make good the loans. One or these banks sent note to him con-
 taining a preemptory command. It took the form of a demand for the payment of the loan within 24 hours with further statement that if this were not done the bank would throw
 the securities upon the market, MT. Huntington called at the bank an hour or two later after he had re- ceived this note. He said that he observed that the bank purposed sell ling the securities if the loan was not paid .I shall be very glad to learn where, when and how you sold these securities, for I have got a good many of the same kind for which l have been trying to find a market and have been unable to do so. If you sell these securities I will consider it favor Tiff you let me known where you sold them and how much you got Tor, them Mir Huntington's obligation vsas not paid. Not because he was bankrupt but because he could not market any securities of which he had millions. The bank was. however. un- able to sell these securities, ana ther efore carried them until at last Mir. Huntington was able to take up the loan.
 Mir. Liggett's Embarrassment MT. Ligget might have Initiated the example of MT. Huntington. Instead of that he has turned over all ms personal> assets to three responsible men of Boston, and these trustees will undertake to make satisfactory agreements with the creditors. Great Salesman
 Mr. Liggett. while still very young mar. gained a fine reputation as salesman. He not only earned repu- Etation as seller flor a certain
 ,atented medicine, but he also gained experience and a hint of the lurking possibilities wkici, lay in combina- | tion of various drug stores and fac- tories. He found finanical support based largely upon the confidence In him which he had gained. The com binatio was speedily made and in little while it attracted attention be- cause it proved to be one or the largest and most successful growing businesses in the United States
 In co-operation with one of the l ablest of American business men. John H. Flagler. the Drug company l took over another successful drus
 company of New York. and 8 little later went to England. There he was
 able to complete somewhat protracted
 negotiations for the purchase or the
 Boots Drug company in England. This
 was one of the largest concerns or
 the kind in the world. 1t ranked
 amonw the wreat business houses of