New-York tribune., 1920-04-02
StutZ Board
Declares Huge
Stock Dividend
Action Follows Step of Ex-
change i'll Banning Deal
ing in Shares of Company
Ryan Resigns as Head
Disbursement of 10000
Shares Will Not Change
Situation. Brokers Saw

Following the action q the govern
ing committee of the Stock Exchange
in suspending dealings in Stutz Motor
because OF corner in the shares
directors of the company met yestcr-
day and declared stock dividend of
$4,000 shares. which. when paid Will
bring the total capitalization up to
200 600 shares Of no par volue.
1t was also announced that Allan A.
Ryan had resigned as president and
that he had been succeeded by William
\. Thompson. of Indianapolis. Mr..
Ryan. the dominant interest in the
company through ownership of so.
shares of the 100000 shares now out
standing. was made chairman Of the
board, and George H; Saylor was
elected treasurer to fill the vacancy
created by the promotion of MI
Thompson.
The official announcement of the
dividend action stated that the stock
distribution Will be payable in four in
stalments Of 10000 shares each, as fol-
lows:
On July S. 1920, to stockholders Of
record on June Is, 1920; on October 8,
1920, to stockholders of record on Sep
tenlber IS. 1920; on January 81, 1921 g,
u Stc-AftV4NclS VI record on UoCem-
Der Is, 1920, and on April 8, 1921, to
stockholders OF record on March Is,
1921. A special meeting of the stock
holders will be called for May to act
upon the proposed 10000 share in,
crease. Shareholders recently author
lied an increase in the present stock
to 10000 shares, the 10000 share in
crease being declared in the form of
stock dividend payable April Is to
stockholders of record on April 5. when
the present stock will sell eek" this
stock dividend.
This means that under normal trad
ing conditions of the Stock Exchange
those who have sold the stock short
would either have 10 be prepared to
deliver next Monday one share of the
new stock, payable on April Is, for
every five shares Of the old he is short
or else pay the equivalent in cash
Assuming q price of S4OO share for
the old stock the man who has sold
have 10 pay out 600 to the buyer of
his 100 shares or The date the stock
dividend is payable. But according to
the ruling OF the exchange announced
Wednes day. buyers Of Stutz cannot call
the stock for delivery if the purchase
or sale transaction has been conducted
by members either for themselves or
clients
Under the ruling Of the governing
committee Stutz Motor shares
were not traded in on the big board"
yesterday. The Curb Market Associa-
tion also ruled that no dealings could
take place in that market. However. a
fairly large turnover in the over-the-
counter market was reported, with sales
as high as S425 share. The stock
was nominally quoted by houses with
cut Stock Exchange affiliations at 400
TO 430
The announcement of Allan A. Ryan
& Co. that the firm stood ready 10 buy
the stock aroused much comment in
Stock Exchange circles, in view Of the
fact that Mr. Ryan is member Of the
exchange and therefore subject TO its
rulings. In some circles the attitude
Of his firm was considered an open de-
tiance of the action Of the exchange
governing committee.
No further announcement was made
by the exchange. There was a general
feeling in the financial district. how
ever. that further action would be
taken early next week, N view OF the
complications that have arisen as a re-
sui. OF the action Of the Stutz Motor
directors yesterday.
With the total stock dividend dec
larations Of the Stutz directors, now
. amounting to 100000 shares, Mr.
Ryan's holdings in the company will be
increased 70 approximately 10000
shares, leaving only 10000 shares for
other interests