The Washington times., 1923-03-22
W|GGLY
HEAD WHIPS
WALL ST.
C. E. Saunders Clears So, 5oos-
900 in Stock Battle With
Bear Operators.
BY CosmOpolltan News Service.

NEW YORK, March 22.-Gross
stupidity and speculation stacked
up against an individual with an
Eiron will and inside facts, and the
former will pay upwards OF $2.6oO.-
900 for the folly.
When Wall Street bears started
kicking around the Piggly-Wiggiy
dog OF Clarence e. Saunders, q
former iron puddler and SIS q
week grocery clerk. the latter got
angry, told them to behave or
they'd be sorry.
But the New York bears only
laughed and sold the stock short
that IL sold something they did
not have, as IS the custom OF Wall
Street spectators on the bear side.
with the expectation OF buying It
for delivery at q price even under
that which they sold It for. and
thus cash In q handsome profit.
Tricks I'm His Sleeve.
When Saunders came to New
York last December. with smoke
screen advance notice that he had
s.. 100000 to support his stock and
rout the bears. the wise bears only
smiled:
Another lamb to be trimmed, !"
and after the stock was pushed up
10 points or 30. they hammered It
back.
But Saunders instituted two cup
his-sleeve" tricks. One was to or.
ganize an investment company
which would dispose Of Piggy.
Wiggly stock to Middle West I'm.
vestors at $50 q share, on the in
stallment plan, and the other was
to engage the cleverest stock
manipulation In Wall Street, Jesse
Livermore, Of ''boy plunger" fame,
to combat bear operations.
The stock climbed in nine weeks
about % points. The bears be-
came q bit panic stricken. Over.
lures were made to Saunders. He
Is said to have promised them he
would maintain an open market for
the stock-that is, allow spectators
short of the stock to borrow it,
execute sales, etc. But Saunders
didn't promise to continue such
activity until Kingdom come"
Calls for Show Down.
When q sufficient short interest
had been accumulated, he called for
q showdown. He simply told
Livermore to loan no more stock
and to sell no more. Then began
the fireworks. They are still going
off. They viii keep on streaking
the dark sky Of the forlorn bears
until short interest which
Saunders says still amounts to
more than $4,000 shares. IL covered.
Saunders ultimatum says that
settlements made before 3 p. n.
today win be negotiated at $3.50 .
share. That means more than
$4,000, 900 profit for him. IL settle
ment is. not made before 3 p M,
the price will be $3.50 q share. or a
ders and his associates.
| OF course, Saunders will have to
| maintain the market''-that IL,
keep his money tied up until all
shorts are squared. But there is
ample precedent for compelling
shorts to settle in court.
No Stock for Exchanges.
So the Piggy iggly chain
grocery store promoter il sitting
astride his. own special world today,
firmly resolved. however, not to
permit his stock to get on any
Exchange again where bears might
frame him." He plans to sell to
small investors, it is understood, all
stock he does not wish to hold for
himself and associates.
Saunders maintains headquarters
at Memphis, Tenn, where his self.
serve grocery store chain WAS
started. Some 1900 Of these stores
are now scattered throughout the
country and the expansion was
made possible by Wall Street In.
terests who saw opportunities in
the idea. Saunders is forty.two
Ten years ago he had to borrow
money to start his first self-serve
grocery.
Protected His Associates.
Saunders, according to his New
York attorney. held all except
about 1900 Of the 200, 900 outstand-
| ing class "a" shares of Piggly.Wig-
gly when he called the shorts to
deliver.
To acquire the floating supply, It
was necessary for Saunders to put
up $1O,O0O,000 in cash. When
Saunders started his operations, 1t
was stated, he intended only to sup
port the stock and prevent his asso.
ciates from being wiped out.
I But as the operation proceeded,
he found 1t was necessary to buy
up and pay cash for all the stock
offered for sale. II at any time
during the tranSNction Saunders
should have found himself unable
to find ready cash for shares Of
fered. he would have failed In his
corner.