Evening star., 1923-03-23
SAUNDERS REDUCES
STOCK FIAT TO S1OO
PiggIy WiggIy President Cuts
$50 From UItimatum to
Wall Street.
BY the Associated Press


MEMPHIS. Tenn. March 23.-Clar-
ence Saunders. president of the Pig
gly WiCEly Stores. Inc. today offered
to settle with New York traders who
sold stock Of the corporation short"
on til" basis of 500 a share.
Mr. Saunders made public the fol-
lowing telegram addressed to the New
York Stock Exchange:
ITO avoid lawsuits with various
brokerage houses j propose. for full
settlement today of all accounts of
class A common stock. PiSgly- Wiggly
Stores, Inc, that I will furnish this
stock upon application to the Ma
tional Bank of Commerce of New
York and upon payment of 800 a
share"
Rnps stock Exchange.
He had made no estimate. aIr.
Saunders said. Of probable profit to
the Piggly Wiggly pool as a result
/ of the deal. Three o'clock yesterday af-
ternoon had been fixed as the time
limit for shorts" to settle at $3.50 a
share with Mr.. Saunders. who as
serted in Tuesdays "ultimatum" that
the price thereafter would be $3.50.
In long distance telephone con-
versation with F. W. Bradford, his
New York counsel last night, Mr.
Saunders learned of the action of the
stock exchange in granting a five
regard to this action. for which he
said he had never heard of a prece-
dent, his comment was:
LAS ! understand it. the failure of a
broker to meet his clearings through
the stock exchange at the appointed
time is the same as bank that
would be unable to meet it's clear
ings, and all of us know what would
| happen to that kind of a bank.
Hns Big Resources.
There would not be any five-day
have a sign stuck up on the door
with the word, Closed"
The Piggy Wiggly head declined
to reveal the identity of persons oper-
ating with him in support Of the pool.
whose resources. he said. were
around a hundred million dollars"
Members of the pool, however, are
known to be capitalists of Memphis
and other southern cities.
BY the Associated Press
NEW YORK, March 23.-There was
much speculation in Wall street to-
day as to the profits of Clarence
Saunders president of the Piggly
Wiggly Stores, Inc, and his asso-
ciates in the corner of the class A
stock, which has been permanently
stricken from the list of the New
York Stock Exchange after sensa-
tional fluctuations last Tuesday.
Experienced traders estimated his
paper profits from $2.500,000 to ST.
500,000 Saunders main problem. ac-
cording. to these men, Will be to find
a market for the 100000 shares he
bought in the open market.
Many "shorts" Settle.
L. w. Bradford, New York repre-
sentative of Saunders, said a large
number of shorts had come to him
before pm. yesterday to make a
settlement at the stipulated price of
$3.50 share. There Is still large
short interest outstanding, he said.
Short interests today continued buy
| ing the stock in the open market at
prices ranging from Sis to $135 a
offer to settle on a basis of 500 was
received, Mr.. Bradford declined TO
state how much stock had been deliv-
cred in settlement.
One brokerage house reported a sale
| to a short of 100 shares for cash this
ed bid and asked prices ranging from
| 120 to 100 with little business being
| transacted.
| Most of the stock sold over the
| counter here is believed to have come
l from small stockholders In the south.