New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-04-09
Morse Heads Plan
To Rescue Firms
In StutZ Corner
Committee Expected to Start
Court Proceedings to Test
Right of Ryan to Call
for Delivery of Shares

Court proceedings to test the right
of Allan A.. Ryan to call for delivery of
Stutz Motor shares sold short are ex-
pected to be instituted as the result Of
yesterdays developments. AS the first
step in that direction Charles A. Morse,
of Clark, Childs & Co., will head a com
mittee Of three members from the AS
ISOLATION Of Stock Exchange Firms,
which has retained the law firm Of
Rosenberg e. Ball as counsel.
Mr.. Morse said the plans Of hts COM
mittee had not yet been fully develop
ed, but that he had consented to act as
chairman after consulting with the ex-
ecutive committee of tho association,
Of which he is president. This body
differs from the governing committee
OF the Stock Exchange in that it repre-
sents the Office partners Of exchange
houses, but it nevertheless is under the
Jurisdiction Of the senior organization.
Mr.. Morse said the other members of
the committee would probably be ap-
pointed by him to-day.
To Represent Many Firms
In other quarters it was learned that
from fifty to seventy-fve Stock Elk
change houses having customers short
Of Stutz stock will be represented BY
the Morse committee. These Arms are
in other cities besides New York. This
contrasts with earlier figures indicat-
ing that only fifteen exchange firms arc
involved in the Stutz corner. WnlIc
ostcnsibly the whole matter Of getting
the shorts out Of their present dilemma
is being handled By the Association OF
Stock Exchange Firms. 1t Is understood
that the board Of governors Of the ex-
change will continue to have the con-
trolling voice in whatever decisions are
reached.
Cox yesterday sent n letter to all
members of the exchange requesting
further information concerning the
arnount Of long and short stock now
held by them for the account Of Gus
toners. In view of the
ment by the exchange authorities last
week that it had found no large single
short interest in the stock, the later
communication caused surprise in
financial quarters. The letter said:
To Block Call for Delivery
81 am instructed by the committee
on business conduct to notify you to
furnish Immediately this office the fol
lowing information in connection with
your position In Stutz Motor Car Com
pany Of America, Inc, at the close of
business on April Z. 1920:
GLOW many shares long; now many
shares short"
Any attempt by Mr.. Ryan to call for
delivery Of stock sold to him through
Stock Exchange houses, It was said
yesterday, Will be met with a prompt
refusal, on the ground that such do
livery would contravene the recent
ruling Of the exchange that all transac-
tons OF Stutz shares have been barred
indefinitely. This, it is expected, will
bring INTO the courts the whole ques-
ton Of whether Mr.. Ryan has the right
TO obtain stock sold to him before the
exchange regulation c into effect.
Rumors wero current that after tho
close Of tho market the exchange gov
ernors would announce drastic action
relative to Mr.. Ryan's membership ON
the exchange, but these did not mate
%rinlize. Mr.. Ryan was not heard from,
it being said Mt his Offices TINT he was
Still on IA vacation.