New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-28
Special D,sput.h to The Tribune

The drug king, who some twenty
years ago was an obscure salesman of
patent remedy, and who since has
risen through his own efforts to COM
handing position in his field, began to
purchase heavily of United Drug COM
mon some time ago. At that time it
was selling at $142 a share Shortly
after he began buying the stock started
to decline. He continued his pur-
chases until it reached 80 Since then
he has been hard pressed to furnish
margins, for the stock continued on
it has dropped total of more than 26
points and has touched new low level
| of 81.
Under the strain Mr.. Liggett has
given up his fight and turned his assets
over to trustees. He explains that the
market decline has required margins
which he could not meet. Mr.. Liggett's
fortune has decreased 100000 since
the drug stock began to fall.
This afternoon Frederic c. Snow, of
CASTOR, Snow, Saltonstall & Hunt. an
nounced that the drug magnate had
placed his assets in the hands of Fred
erick c. Dumaine, Frank w. Remyck
and Neal Rantoul as trustees. Shortly
thereafter Mr. Liggett authorized the
following statements
Text of Statement
"My temporary financial cmbarrass-
ment comes from the fact that my as
sets, which consist largely of securi-
ties listed on the stock exchanges, have
! declined in market price over $1,000
600 in the last eight months | have
bought United Drug Company stock at
Sl42 per share and have continued to
buy it down to $50 In other words,
have bought it ae long as l could and
| have not sold share. Necessarily, as
all OF my securities have declined in
market price, l have had to put up more
and more capital to protect my loans.
II have not lost money through out
SIDE interests except in the general de-
cine IN the market price o. their Sc
curities, which is in common with the
| general decline during this last year.
l have not gambled in the stock market
The steps l have taken relate
purely to my personal affairs and will
in no way interfere or affect my ad-
ministration of the United Drug Com
pany and its subsidiary companies nor
will it have any effect upon the man
agement Of the Liggetts Drug Stores,
nor Liggetts International, nor it's sub
| salaries.
owe shall go right ahead with the
! plans contemplated and announced
during the past six months to consoli-
date all of these companies when the
general conditions are propitious. But
these plans do not involve any new
| form Of tinancng"
For some time past it has been COM
mon gossip that Mr., Liggett has been
suffering heavily in his effort to obtain
margin for his stock purchases. He
abandoned his large stable some time
ago. Recently his elaborate home at
Chestnut Hill, Brookline, was placed or
the market.
Started as Salesman
Mr.. Liggett, born forty-six years ago
in Detroit, received his early business
training as a salesman. His expe-
fience IN manufacturing and distribu-
ting headache remedy suggested to
him the big possibilities in coopera-
TIVE manufacturing and merchandising
OF drug store goods. Application of
TINS principle resulted in his promo
tlon from salesman to general man
ager OF the Chester Kent Company, of
In 1902, with forty DRUGGISTS sc
stockholders, he founded the United
Drug Company, with a manufacturing
plant in Boston. In fifteen years the
company had made such a success that
i's capital was given as $52,5OO,000.
When the Winchester Arms Com
pany, following the war, sought distri-
button for the peace-time products of
1ts largely increased factory space Mr..
Llggett obtained the largest individual
interest in the company
in June of last year it was an
hounced that the United Drug Com
pany had acquired the entire ordinary
fshares OF the Boots Pure Drug Com.
pany, Ltd, of London, England. In
TINS connection new subsidiary. the
Llggetts International, Ltd, was
formed, to which were transferred all
assets and business of the United Drug
Company in Great Britain, and also .he
entire outstanding stock of the United
Drug Company, Ltd, of Canada. The
ohloed Drug Company accepted in paw
ment for these assets 100000 at mar
OF Glass B common stock of Ligeetts
international.
Mr.. Liggett, besides being president
and director of the United Drug Com
pany, is listed as director in a large
number of other important concerns.
including banks and insurance COM
panies, among them the following:
beacon Oil Company, Boston Morris
Plan Company, Drug Merchants of
America New York;, Eastern States
agricultural and Industrial League.
Eastern States Exposition (vice-or~si.
dent and directory, John Hancock Mu-
tual Life Insurance Company. Liberty
Mutual Insurance Company, Louis K.
LAgr|t Company, Ltd, (Canada) !:
LOUIS X. Liggett Company chairman
OF directors), National Acceptance Cor
pofation, National Cigar Stands Com
pany, of New, York, Chairman of en-
ecutlve committee and DIRECTORY; Na-
tionai Shawmut Bank of Boston. pill
/ grim Tercentenary Commission (chair.
mani, Punta Alegra Sugar Company.
| Regal Shoe Company, Seamless Rubber
Company, Inc, of New Haven; United
Candy Company, United Drug Com
pany, Ltd canada United Mutual
Is,ss,