New-York tribune., 1922-11-19
Business Builders, Inc.
Follows Manhattan Pig
gly Wiggly Stores Into
Hands of Receiver Wilds
Creditors Begin
involuntary Action
Petition Says Promoting
Enterprise Owes the
Grocery Co. $25O,OOO

James W. Ellott's Business Builders,
Inc, which sought to inject romance
and sweetness and light into the SOM
Der pursuit of selling securities, was
brought into the Federal bankruptcy
court yesterday. After an involuntary
petition was filed Judge A. N. Hand
appointed Percival Wilds, of Rector
Street, receiver. Mr.. Wilds also is re-
ceiver for the Manhattan Piggly Wig
gly Corporation and its subsidiaries.
The action against the stock selling
organization, which purported to aim
to humanize finance and uplift men,
was direct result of that against
Manhattan Piggly Wiggly on Friday.
According to Mr.. Wilds, who pettioned
for receiver for Business Builders,
that concern, which had the same presi-
dent as Manhattan Piggly Wiggly-
James w. Elliott, writer, dreamer and
master salesman--owed the local chain
grocery enterprise $25o,0o0, presuma-
bly, representing funds obtained
through the sale of securities.
Four separate involuntary petitions
were filed yesterday against concerns
said to be indebted to Manhattan Pig
gly Wiggly Corporation. In each case
Percival Wiids was the principal credi-
tor, and la!kin e. Cohen, of 40 Cham
creditors. Besides Business Builders,
the other corporations against which
petitions were filed were the Western
New York Piggly Wiggly Corporation,
the. Piggly Wiggly Eastern Company
and the Connecticut Piggy Wiggly
Corporation, all three of which are
subsidiaries of the Manhattan Piggly
Wiggly, which was both holding com
pany and an operating unit.
Had 1000 Statesmen
The case of the Business Builders,
which was organized on May 2a, 1920,
with thirty selling men and six active
executives and which in year grew to
a force of 1000 salesmen, more directly
affects the public than that of the three
subsidiary Piggly Wiggly corporations,
tan corporation was nominal only. The
petition in bankruptcy asserts that
Business Builders owes Manhattan
Piggly Wiggly $250,00o, which repre-
sents money received as agent of the
Manhattan Piggly Wiggly corporation"
The other creditors named are Ida
Cohen, $1,000, and Helen Johnson,
$4,000 Both claims are against serv-
ices rendered. The liabilities of the
Elliott financing concern are estimated
at 100000 and the assets at 100000.
Assets, according to the allegation, con-
sist of Office fixtures and furniture at
the headquarters in the Knickerbocker
Building, in West Forty-second Street,
and of the securities of other corpora
tions which were financed by Business
Builders, estimated at $4,000.
The petition further indicates that
the principal recent business of Busi-
ness Builders was selling the Manhat-
tan Piggly Wiggly securities, and as
serts that the present financial difficult
ties Of Manhattan Piggly Wiggly were
attributable to an inability of this al,
legged bankrupt to pay over to the local
Piggy Wiggiy enterprise moneys OBJ
tanned through the sale of its securities.
James w. Elliott, or "Jimmy" Elliott.
as he liked affectionately to be called,
the central figure in the proceedings,
again was silent. Another telephone
call to his residence, 815 Park Avenue,
brought the information that he was
still i'll under a physicians care and
had been indisposed for fortnight.
representative of The Tribune asked
whether Mr.. Elliott would care to an
swer questions transmitted to him and
lips, Mahoney & Leibell, 40 Chambers
Street, would alone do the talking.
Lawyer Explains Case
w.. L. Leibell, member of that firm,
said:
"The relations between Manhattan
Pipgiy Wigyly and Business Builders
were SO intertwined that the petition
in bankruptcy against the latter is
a natural sequence of the former.
Business. Builders owed sums to Man
haitian Piggly Wiggly and Wilds as
receiver for Manhattan Piggly Wiggly
is a creditor Of Business Builders. |
believe the Piggy Wiggly idea is Q X.
and can be made successful in this ter
ritory, but it will have to be re-
financed and placed under new manage
ment. hope that the receivership
will mark step in successful re-
organization"
municate with w. C. Bentley, former
treasurer of Business Builders and
general manager of Manhattan Piggiy
Wiggly. who was looked upon as the
right-hand man Of Mr.. Elliott, were
fruitless.
The present status of Business Build
ers will come as disappointment to
hundreds who we're induced to buy its
shares, which we're widely distributed
in house to house canvass by Elilott's
force of statesmen, whose turnover was
rapid. Inthe kit which the security vend-
ers used in persuading prospects to part
with cold cash for prospective gains
from partnership in Mr.. Elliott's enter
prise, the caption was, This is an IN
yestment in the selling ability OF
proven sales force.
Further the prospectus read: