New-York tribune., 1922-11-18
Involuntary Petition Filed
Against Chain Grocery
Store Promoted by ]. W.
Elliott Business Builders
Grew Too Fast, SAYS
Company's Counsel
Securities of Alleged
Bankrupt Distributed by
House-to-House Canvass

The Manhattan Piggly Wiggly Cor
poration, : 3aervice grocery enter
prise, manaesu and financed by James
w. Elliott and his Business Builders,
went into the hands of receiver yes
terday. An involuntary petition in
bankruptcy was filed at the United
States District Court here in the after
noon by three creditors.
Right up to the present stage securi-
ties in the Manhattan Piggly Wiggly
Corporation, which is independent of
the Piggly Wiggly Corporation, of
Memphis, from which 1t received it's
franchise, were being sold by stock
statesmen employed by James w. Ell
liott's Business Builders, Inc, with
headquarters in the Knickerbockcr
Building. Some 500 vendors of the in
terest-bearing certificates of the Man
haitian chain of new grocery stores
were recently operating in New York
and environs, selling the securities in
large measure to persons unfamiliar
with the subtler aspects of investment
matters.
AT the time Of the alleged bankruptcy
twenty-one stores were being operated
by the Manhattan Company, in addition
to some twenty-one locations up state
and in nearby states, under the direc-
tiony of subsidiary companies. Percival
Wilds, the receiver, of Rector Street.
whose bond was fixed at $4,000 by
Judge A. N. Hand, will take immediate
possession of the stores, in which Gus
toners enter through turnstile and
,rl, ,ll
which they are expected to fiji with
groceries taken from the shelves. Mr..
Wilds has had previous experience in
chain store receiverships.
James w. Elliott, the master spirit
of the prom otion, had no comment to
make on the allegation of bankruptcy.
telephone call to his home, 815 Park
Avenue, brought the information that
he was i'll and under physicians care
and would answer no questions. Inquir-
ers were referred to attorneys for the
OF which Mr.. Elliott was president and
chairman Of the board Of directors.
Attorney Explains Case
Vincent L. Leibell, of Phillips, Ma
honey G. Leibell, 81 Chambers Street,
attorneys for the Manhattan corpora
ton, commented on the situation, say
ing:
"Ths financial difficulties Of the COM
pany are due to their having overeX-
tended themselves. They set up too
many stores in too short a space Of
time. Because of pressure of creditors
and the failure of certain financial as
sistance to materialize it was deemed
best in the interest of all creditors to
consent to the receivership as pre-
liminary to reorganization of all the
firms affairs. The creditors meeting
will be held as soon as the receivers
accountants are in a position to make a
statement.
"This is distinctly the Manhattan
branch of Piggly Wiggly. Piggly
Wiggly stores are all over the country
and are operated under separate fran
chises in group organizations"
The petitioning creditors, whose law
yers are Zalkins e. Cohen, 49 Chambers
Street, all hold claims for labor and
services rendered. They are Charles
Kus+er, whose claim is $4o0; lorraine
Electrical Engineering Company, with
claim of $4,000, and Leo Lemelson,
whose claim is s1,500. The liabilities
of the corporation were estimated in
the petition at $1,250000 and the as
sets at $350,000. The headquarters of
the corporation are in the Terminal
warehouse, 1WelilJ -oesSAIH ooi0ee a5iu
Eleventh Avenue.
Idea Came From Memphis
The Manhattan Piggly Wiggly Cor
poration paid one-half of one per cent
of gross sales to the Piggly Wiggly
Corporation, of Memphis, the parent
company, and to PIGGY Wiggly Stores,
Inc, subsidiary, which is in charge
of actual operation of stores in the
South and West. The idea for cafe
teria- grocery stores originated in Mem
phis. Clarence Saunders, president of
the Piggly Wiggly Corporation, is the
creator of the program, which has
spread rapidly throughout the country.
The Tribune is able to state that Mr.
Saunders has been dissatisfied for some
time with the operations of the Man.
haitian corporation.
Mr.. Saunders last night authorized
the Memphis correspondent of The
Tribune to make public a telegram sent
to the financial editor of The Tribune
a few days ago in reply to an inquiry.
81 have never recommended the pur-
chase of the securities of the Man
haitian Piggiy. Wiggly Corporation to
any one" Mr.. Saunders telegraphed
{contiaued on pags ssven)