New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-04-25
Shorts Settle at $3.50
a Sha are in Agree
ment With Ryan and
Protective Committee
Payments Will Be
Made on Tuesday
Sc Stock Exchange Firms
Agree to Terms Ending
Big Wall Street Squeeze

The famous corner in Stutz Motor
ended at two minutes before 10 o'clock
yesterday morning, VIXEN, as the result
Of an agreement reached between Allan
A. Ryan and the Stutz prospective
committee. $3.50 share was fixed as
the price at which the shorts may set
tie their contracts made prior to
April l. Based on the assumption that
the average figure at which the shorts
sold the stock was $3.50 share, Wall
Street estimated that Mr.. Ryan's profit
was about $1,5oo,oo0, as the short in
terest at the time dealings in the
shares were suspended by the Stock
Exchange was approximately $500
shares.
The settlement price was agreed
upon by the tifty-six Stock Exchange
firms representing the short sellers in
the Offices of Rosenberg & Ball, their
attorneys, at meeting which went
into executive session at o'clock. The
prospective committee was empowered
to inform Mr.. Ryan of the terms of
the settlement and the members of
the committee. consisting of @. A.
M orse, chairman; Colonel j. W. Prem
tiss and A. j. Miller, reached Mr..
Kyan's, office in Ill Broa dway at 9:45.
Less than ten minutes later it was an
nounced that Mr.. Ryan had accepted
the terms.
Formal Statement Issued
Mr. Morse announced the settlement
IN the following statement:
THE Stutz controversy is ended. At
meeting held this morning, attended
ny substantially all of the Stock Ex-
change houses under contract to de-
liver Stutz stock, there was unani
nous expression of desire that the
matter be settled and finished. and a
secret ballot as to proposed settling
price Informed the committee as to
the temper of the meeting in regard
to that matter, and the committee bv
unanimous resolution received full au-
thority to settle.
Having ascertained that all our
principals desired settlement and
having full authority, We have conclud-
ed the NATTER
The meeting was hurriedly called
late Friday as the result of Mr.. Ryan's
threat that he would buy in the shorts
on the New York Curb at the opening
Of business. In previous statements he
charged that the protective committee
was pursuing dilatory tactics and that
it had not been sincere in its efforts
at mediation.
The procedure was adopted Of hav-
ing the representative of each firm
name the maximum figure at which
they thought a settlement should be
made, and these prices were submitted
for the guidance of the protective COM
mittee in their subsequent conference
with Mr.. Ryan.
Conditions of Settlement
The basic settlement price was fixed
at $425, to which was added IS for
the 20 per cent stock dividend by the
Stutz company on March 8. payable
April Is. To this total of $50 was
added $40 representing the premium
of So day for twenty days on each
share of stock loaned by Mr.. Ryan to
the shorts. The full terms of the set
tlement, which is to be carried out
next Tuesday, we're outlined in the
& Co. and the protective committee.
This stipulated that:
l. For each one hundred (100)
shares of said Stutz stock borrowed
and undelivered, the obligation of
the borrower is one hundred and
twenty C12o) shares Of present Stutz
stock (by reason o. the stock divi-
dent of twenty per Gent [20 per cent?
payable since said borrowing).
2. A premium for the loan of the
said stock at the rate of two dollars
($2) per share per day for twenty
GO days shall be paid in full Of all
premiums due from and after March
81, 1920; i. e., forty dollars ($4O)
per share in all of all premiums from
and after March 81, 1920, and any
premium which may have been paid
from and after that date shall be
credited upon said amount of forty
dollars ($40); and any premiums
not paid prior thereto shall be paid
in addition.
3. The cash dividend of one dollar
Continued on page soven)