New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-04-20
Stutz Shorts
Ignore Ryan's
Call for Stock
Restricted Sale of Shares on
Curb Held to Show No
Effort Was Made to Buy
Parcels in for Settlement
Mediation Plan Advised
Exchange Committee Says
Bankers May Be Asked
To Suggest Compromise

Attempts made yesterday by Allan A
Ryan to force the shorts in Stutz
Motors to buy in the stock in order to
make deliveries were not successful.
Although the three Stock Exchange
firms through which it was understood
the buying in orders were placed re-
fused to give out any information, it
was learned in other quarters that the
shorts ignored the latest move of Mr..
Ryan to bring about settlement of
their contracts.
The firms which were instructed to
Filler, Billiard & Smyth; Pearl & Co.
and Foster e. Lounsberry. Transac-
tons IN Stutz on the Broad Street curb
market totaled only ITO shares at
prices ranging from 1875 down to TOO
This restricted activity was regarded as
further evidence that virtually none OF
the stock sold before March 81 was
bought in yesterday.
While Wall Street was watching with
interest the result Of Mr.. Ryan's
threatened move to force the shorts to
close out their contracts, negotiations
were continued for private settle
ment. Leading bankers, according to
an announcement of the special COM
mittee of which C. A. Morse Is chair
man, may be called in to mediate the
differences between the shorts and Mr..
Ryan. The announcement OF this COM
mittee, which was organized in behalf
of the short sellers, said:
"Our position has been to favor an
arbitration of the controversy. This is
not because we doubt the outcome Of
litigation, but because litigation will
be protracted and expensive and be-
cause. pending the determination of
such litigation, which, by reason of the
magnitude of the amounts involved,
would go to the highest courts, the
money OF these various small custom
crs. aggregating very large amounts in
the total. would necessarily be tied up
in their brokers' hands. Moreover, we
consider this business question which
ought to be disposed of by business
men and if we can secure the services
of leading bankers, who will have the
confidence of all parties and of the
public as we'll. to act as medators, we
shall favor such course.
"Mr. Ryan has said good deal about
teres.' who have made a raid on the
stock. The most dligent and pains
taking efforts of the committee have
failed so far to disclose the existence
of such a 'coterie' Those who are
under contract to deliver Stutz stock
are, so. far as we have been able to
learn, various individuals scattered
throughout the country. No large
single short interest-not one indivi-
dual short interest of over 500 shares
has been discovered by US. On the
interest, according to calculations care
July made by the committee. is con-
s.derably less than 100 shares. The
controversy, so far as we know It, is
one between Mr.. Ryan and these scat
tered small interests.
We have received so many requests
Cor a public statement as to the posi-
ron OF the protective committee that,
although we arc adverse to trying cases
II the newspapers, we feel it our duty
20 say this much:
"First-The decisions of the United
Hi-..- -,-i-.-it Court of Appeals and
thc United states Supreme Court in
- Patten litigations deal adequately
fith the subject of corners.
Second-Mr. Ryan, although not
ocnyi~, The existence of a corne~, Sc
ar as we read his statements, stands
upon the contracts. Therefore, unless
reached, we have a familiar situation,
where one party insists upon the
validity of the contract and the others
-contend that it is void In such cir
cumstances it is for the court to de-
eide the issue. It is an issue we shall
ace without fear"
Mr.. Ryan, although ne had nothing
. say yesterday regarding the Stutz
apisode, let it be known that he would
probably issue another interestine"
statement to-day. In Wall Street circles
It was understood that failing in his
effort to force the three Stock Exchange
hrns to execute buying in orders in
the companv's stock, he would try to
put them through on the curb mar
ket.