New-York tribune., 1922-11-18
Receiver for
Piggy Wisg,.g,ly
Of Manhattan,
tconslnusd from page eno

under the date of November II, sand I
do not now, as have constantly
criticized the methods used In sale OF
those securities, and while the Man
haitian Piggly Wiggly Corporation has
not complied with the terms Of their
contracts with US we have endeavored
not to press them in this regard, be-
cause 1t was our purpose to give them
ample opportunity to demonstrate their
ability to go forward with their bust
ness as they have claimed they would
be able to. In conclusion, wish to
ga that I am not at all satisfied with
the present condition of that COM
pany."
To the correspondents in Memphis,
MIR. Saunders said last night that he
had no further comment TO make, as
the foregoing message includes all he
has to say at present.
s20.oOO,o00 Was Goal
Mr.. Elliott's avowed objective was to
raise 10000, 900 for the promotion and
to establish 1900 stores in the East.
According to reports MIR. Elliott had
as many as thousand statesmen comb
ing the metropolitan district FOR pros
pective customers of their security Of
ferings Since the concentration Of
selling efforts on securities of the
Manhattan Piggly Wiggly Corporation
early in the year the financial editrc
of The Tribune has consistently advised
against their purchase, Analyses of
the three to FIVE year interest bearing
certificates for preferred stocks and
the certificates for the common shares
frequently appeared in the investment
column Of The Tribune, with an une-
quivocal statement that they were un-
suited for investment purposes. Orig
inally the units were offered at $105,
and on successive occasions the price
was arbitrarily raised to STA, despite
the fact that during this period the
corporation was losing money from op-
erations, as revealed in financial state
inents, published for the first time ex-
clusively in last Mondays Tribune.
The appointment of receiver for
Manhattan Piggly Wiggly marked the
hrst court action of that kind against
the corporation financed by the Busi-
ness Builders.
Other corporations whose securities
were sold by the Elliott method in
cluded the Carlisle Cord Tire Corpora
ton, Daniels Motors Company, Urban
Motion Pictures Company, international
Bed Corporation. United States Higa
Speed Tool Corporation, tie Man Mes
sage Corporation and the Industrial
Extension Institute. Without exception
The Tribune in its investment column
has advised against the Purchase o.
the securities of any of these COM
psnies. for investment purposes. and
thus far none of them, with the ex-
ccption Of Daniels Motors, which is
no longer associated with Bus. ness
Builders, has paid dividends to share
holders. Moreover. those who pur-
chased the shares have recently had
difficulty in selling them, finding q
market for them only among unlisted
dealers at depressed quotations.
Mr.. Elliott's Purpose
Mr.. Elliott, who has been conspic-
Nous in. the past chiefly as writer of
inspirational messages, which were
marketed by the Man Message Cor
poration, is thirty-two years old, mar
ried, and has g. remarkable gift for
stirring up other men and charg' g
them with enthusiasm. His pa1sss,-
ality was often reflected in his s-4,vs-
men, who combed the streets of New
York with the zeal of missionaries.
The hold In many instances has been
temporary, and this and other factors
have resulted in rapid turnover of
men in the selling forces. Durira the
early days, some two years ag', of
Business Builders, the stock selling or
ganlzatlon, whose ares were alsy sotd
to the public as investments, Mr.. Ell
liott frequently stated that his was
man building organization, which
purpoaed to supply client companies
with men and money. His idea was
TO promote successful stock vendors
into executive positions in Silent cor
porations.
To enthuse his men, Mr.. Elliott In
stltuted weekly rnect nps rrL" 'ov
nights which were first held at Carne-
gle Hall and subsequ I'll ne l.
neering Building, on West Thirty-niuth
street. Dramatlsts, editors, statesmen
and other publicists spoke at the meet
lngs, where the selling purpose of the
Business Builders was subordinated 10
its putative humanitarian objects. At
tf ese meetings, which are still sched-
uled. Mr.. Elliott would usually make
brief talks and announcements regard
Ing promotions.
In one of the earliest discussions Of
the new. Manhattan Piggly Wiggly
Corporation, which appeared in the in
vestmert column OF The Tribune on
March 20, the fact that the new promo
Slon involved change in the program
of the Business Builders was chron-
icled. Theretofore, Mr.. Elliott made
much OF the fact that Business Build
ers handled no promotions, but only
expanded going concerns. The charter
for the Manhattan Piggy Wiggly Cor
poration was obtained in Delaware, in
September, 1891, and the first stores
were opened under Mr.. EIliott'u
auspices. 1t is reported that Mr. Ell
liott bought the franchise and terri
tor:al rights from an individual who
had paid $4,000 for them.
Associated with Mr.. Elliott In the