The Birmingham age-herald., 1923-03-26
RIGHT ID STRIKE 0FF CHAIN STORE STOCK |S DENIED
Head of Piggly WiggIy Stores Gives "Sh0rts" Chance to
 Settle Up Today

MEMPHIS, Tenn. March 25.-Clar- ence Saunders, president of the Pig gly Wiggly Stores Unc.), today noti fled shorts" caught in last week s jam. which resulted in the New York Stock Exchange stopping trading in Piggly Wiggly Class A stock, that he will accept delivery from them to- morrow, at the hour fixed by the spe- cial rule of the stock exchange, Of any number of shares they may have to cover their contract, but his ac- ceptance is to be made with certain reservations.
 Mir. Saunders withdrew his tele- gram of yesterday. in which he de- clared that Piggly Wiggly stock pur- chased from him and in lover the counter" trading since the stock was ruled from the exchange list would not be accepted in delivery because he contended. trading in the stock after it's suspension by the exchange, was against the accepted practices of the New York Stock Exchange.
 In his telegram s;an today to ,, all a ] "shorts" copy of which he also sent to the Now York Stock Exchange Mir. Saunders declared that he would accept delivery tomorrow on the as- sumption that the stock "has been properly purchased and within the
  livery of stock due on my contract as may be determined later by court de- cision.'
 Denies Expulsion Right.
 T have never admitted the right either upon your part or upon the part of the New York Stock Ex- change to postpone the delivery date of the stock due me pursuant to my call for such delivery on March 20.' continued MT. Saunders telegram and l do not now admit any such tend to contest before the courts the action by the exchange in postponine the delivery date.
 T deny the right of the New York Stock Exchange tC strike Class Piggly Wiggly stock from the ex- change list and thereafter deal with 1t as an exchange listed stock. and I deny that any emergency existed except the emergency that always exists when the loser loses. and if this seems harsh to you. remember that I did everything possible to prevent short sales on this stock"
 MT. Saunders further informed the short interests that he would "htld them liable for non-delivery of the stock upon the due date for such de- livery as may be determined by court decision"
 The shorts" caught when the stock scared from 72 to 124 and back to S2 in a few hours trading last Tuesday, were approximately 25,O0l shares short when the stock was sus- pended from the list. according to Mr. Saunders estimates. Friday he offered to sell the stock at $1OO, a share to those who would clear uT their contracts on that date. He con- tends that only about 140 shares were actually delivered by the "shorts
 Friday, but says that thousands of shares were bought by them under the s1o0 offer and claims that the "shorts" are holding these shares now and that they did not make de- livery Friday because they thought the delay until tomorrow might be tc their advantage.
 Will Not Accept. l For this reason, MT. Saunders an
 nounced last night that he would moi accept delivery of this stock Mon- day. His telegram Lf today, however | points to acceptance of stock deliv- l cries tomorrow, at the end of the five | days extension given the shorts" by | the special rule of the stock ex- | change, with the "shorts' delivering such shares as they have and set l ting with MT. Saunders for what | ever shortage of stock continues tc | show against their accounts. After ward, Mir. Saunders indicates. court action will follow on his charges that the stock exchange and the "shorts' have not dealt with him, according tc accepted rules.
 Touching on marketing of his