The evening world. [volume] (New York, N.Y.) 1887-1931, 1922-11-18
"P|GGLY W|GGLY
CRASH FOLLOWED
BY ELL|OTTFALL
Petition in Bankruptcy Filed
Against Business Builders,
Parent Concern.
A MILLION LIABILITIES.
Only S35O,OOO Assets Left
to Those Who Put Sav-
ingS in Scheme.

Following the appointment of Per-
cival Wilds as receiver in bankruptcy
for the Manhattan Piggly Wiggly
Corporation, Mr.. Wilds promptly
filed an involuntary petition in bank
ruptcy against James w. Elliott's
Business Builders, Inc. Of No. I42
Broadway. the organization which
promoted the stock sales Of Manhat-
tan Piggly Wiggly, employing young
college men and professional men
with small practices as high speed
fast working stock statesmen. who In
duced hundreds to withdraw their
bank savings to go into the grocery
business.
Mr.. Wilds was associated in the
petition with Ida Cohen, who claimed
$1,000, and A. johnson, who claimed
$4,000, for services repderel.
! The Business Tmidars ste satd 10
have assets of 100000 and liabilities
of $500, 900.
The Business Builders were incor-
porated to finance, sell stock for,
hold. own and control tho stock OF
other corporations"
Mr.. Wilds also filed petitions
against the territorial subsidiaries OF
the Manhattan Piggly WigGly Cor
poration. the Western New York Pig
gly Wiggly Corporation. the East
crn Piggy WiggIy Corporation
and the Connecticut Piggly Wig
gly Corporation, asserting that
the Western New York owed
the parent company $4,000, and
had $4,000 worth of stock and fix
lures to show for it: that the East
ern owed $4,000 and had $50, 900, and
tho Connecticut owed $4,000 and
had $4,000.
Judge A. n. Hand accepted the petit
tions and appointed Mr.. Wilds re-
celver for the three subsidiaries and
the Business Builders, fixing his bond
at $4,000.
The Manhattan Piggy Wiggly was
not backed by the Piggy Wiggly
chain store system which is working
apparently profitably in the Southern
and Western States. The Manhattan
company simply bought the license tc
|
service chain grocery store plaI
| owned by the parent company, pay.
ing one-half OF / per cent. OF it
profits as royalties.
The liabilities of the Manhattan
concern was given as $3.50, 900 will
assets Of $350.00
Phillips. Nj honey & Liebell o
| No. 81 Chambers Street, counsel fO
the Manhattan Piggly Wiggly, attriD
| uted its failure yesterday to an ef
| fort to establish too many stores bo
fore the public became acquainrot
| with the pleasure OF buying It's gro
ceries, ready wrapped and prlc'
marked after inspection Of a glass
encased, exposed sample, and pay
ing for them at an exit turnstile.
| Inc company ulu GSldbAASA SNOASo a
the time It advertised its stock sales
placing them in localities where pros
/ poets would see them-lf for no "othe
reason" than that no practical groce
had ever selected the site.
Mr.. Elliott had remarkably effect
i've sales force made up Of young mel
who were attracted by the hope o
becoming captains Of industry IN
few months. demonstration OF tn
profits Of the Piggly Wiggly system
in areas where 1t was adopted by rea
grocers who knew tho trade, easil,
persuaded these young men that the
we're doing their acqualntances
favor by Letting them in" The
went in themselves. II is believe
that the amount Of the stock sale
will be found to run far over tn
amount Of the more than a millto
liabilities.