Evening star., 1923-05-04
HOW SAUNDERSWAS|
CAUGHT IN C0RNER|
Inside Facts in Famous Pig.
gly WiggIy Stock Venture
Revealed.

NEW YORK. May 4.-The "inside
story" Of the Piggly Wiggly corner
was revealed to the New York World
yesterday by q man who witnessed
every phase OF the manipulation lead
Ing up to the actual corner.
Clarence Saunders, it seems, had Ac-
qufred $4,000 shares Of Piggly WigEly
common stock in the belief there was
a heavy short interest He did not
know quite how to proceed. Consult
ing stock broker in Chicago. he was
advised to see Jesse Livermore, Wall
streets boy" speculator, and ask his
support.
Mr. Livermore agreed to see Saun-
ders The Memphis grocer. accom-
panied by certain bankers. arrived
here and went to the Empire Trust
Company, when he met President
Leroy c. Baldwin. who called in Mr..
Livermore. 1t was their FIRST meeting
Mr.. Saunders explained he had
$4,000 shares of Piggly Wiggly and
told Of his belief that a big short
interest existed. Mr.. Livermore did
not agree. saying that the short in
terest was small, and Mr.. Saunders
evidently had accumulated his 10000
snares from brokers who had been
long on it. He advised Mr. Saun-
ders to let the market alone, saying
that because there was no particular {
snort interest he could not expect to
pront greatly by cornering the stock
Livermore Asks Power.
Mr.. Saunders persisted. however.
and against the wishes Of Mr.. Bald
win and Mr.. Livermore insisted the
campaign go on as he had planned
Mr.. Liyermore then agreed to handle
the STOCK manipulation, but stipulated
he must have full power to buy and
sell az he saw fit. To this Mr.. Saun-
ders agreed
Mr.. Llvermore In the days that fol-
lowed bought some 145.000 shares of
Piggly Wiggly at advancing price s,
making close to 100000 shares held
by Mr.. Saunders. The trading was
done through several stock exchange
the buying. had cost the Memphis
man an average of sfl a share.
=, AT this phase of the game Mr..
Saunders demanded Mr.. Livermore
declare a corner and squeeze the
shorts dry. Millions could be made
by the simple operation OF calling for
argued.
Mr.. Livermore. on the other hand,
insisted there was no short interest
OF any consequence. Daily loans OF
Piggly Wiggly stock. he called 10
Mr.. Saunders attention. only were
running around 5000 shares. This,
to his way Of thinking. pretty nearly
told the story. If there was 4 big
short interest Mr.. Livermore insist
ed, much more stock would be in de-
mand
Takes Over steck Campaign.
Suddenly Mr.. Livermore received q
telegram from Mr.. Saunders ordering
Pigsly Wfggly campaign. There was
no explanation. The Memphis man
simply took matters into his hands,
notified the brokers to call for delivery
OF Pigsly Wiggly stock and precipitated
the corner.
When Mr.. Saunders issued his call,
the worlds informant says. there were
approximately 5000 shares short, as
against some $4,000 shares anticipated.
Piggly Wiggly by the New York Stock
Exchange. Mr. Saunders demanding set
tlement at $50 q share and finally COM
ing down to 500. All the stock was
thrown back on his hands, his mark ct
was destroyed and there was nothing
left to do but return to Memphis and
peddle the shares on the installment
plan.
Had Mr.. Saunders held his 2oo. 900
learned he WAS advised by Mr.. Liver
more. he could have manipulated the
market at will. To do this he would
have required considerable funds, but
his profits would have amounted to at
least s5.00o.o00.