Evening star., 1923-08-25
SAUNDERS QU|zzED
IN ACCOUNTING SUIT
Former PiggIy WiggIy Head
Tells of Company's Finan-
Cial Status.
BY the Associated Press.

By the Associated fress.
MEMPHIS, Tenn, August 2J.-Tak-
ing of evidence in the law suit be-
tween Clarence Saunders and direc-
tors of the Piggly WigGly Corpora
ton. which seeks to determine the
state of financial accounting between
the former Piggly Wiggly executive
and the company, was continued to-
day before c. L. Marsilliott, master
in chancery, who was appointed yes
terday by Judge J. W. Ross of the
federal court to inquire into the facts
in the controversy.
The first session of the hearing late
yesterday was consumed in the ex-
animation of the Piggly Wiggly
founder him self. who in a bill filed
this week set up a claim of more than
$2,000,000 against the corporal ton.
Saunders last week filed a bill asking
receiver for the corporation, whose
solvency is to be adjudged by Judge
Ross on the basis of the masters find
ings in the present hearing.
Saunders Testines.
Examination of Saunders brought
forth his account of the transactions
in stocks of Piggly wiggly Stores.
Inc, concern which operates
under patents owned by the corpora
ton. including details of his SEN
sational Piggly Wiggly corner in
Wall street last April, and a declara-
ton from the former president that
his transactions had all been with the
knowledge and consent of the cor
poration's directors and in the inter-
est of the corpora ton.
Obligations of the corporation
which the witness said the company
was unable to meet included a note
for $1,000, 900, held by the American
Trust Company of Nashville as trus-
tees. and two notes held by two Mem
phis banks in the respective sums of
$125.000 and $4,000. The million
dollar note, he said, was already in
default.
Bills Consolidated.
The first act of Master Marsilliott
when appointed was to order the con-
solidation of the two bills filed sew
orally by Saunders and by the cor
poration's directors, both Of which
demanded an accounting of his trans
actions in the stock of the stores
company.
An attempt to place Z. W. Rollow,
now sceretary-treasurer of the corpora
ton, on the stand, was defeated when
Marsilliott sustained the corporation
counsers objection on the ground that
Rollow had not been in his position long
enough to enable him to testify authori-
tatively as to the circumstances of the
case, but that Saunders himself was
logically the first witness.
Saunders resignation from the pres
idency of Piggly Wiggly Stores, Inc.
followed several months of disagree
ment between himself and members
of the financial pool which sacked
up his operations on the New York
Stock Exchange. His retirement as
head of the Piggly Wiggly Compora-
tion, the parent company, was effected
few days later after hiss failure
to enlist cooperation among stock
holders with his plan for re-financ-
ing the concern. His bill asking q re-
ceiver for the corporation was flled
on the same day he retired from
that concerns executive Office.
Directors of the corporation de-
clared there was no occasion for ask
ing for a receiver and announced
their determination to resist the move
expressing confidence in the solvency
of the company,