New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-04-17

change. arising out of existing con-
tracts for the delivery of Stutz stock"
concluded Mr. Remick. "The settle
ment of those. controversies is entire
ly matter for negotiation between
the parties, and if they do not agree
to determination by the courts. The
Exchange has nothing to do with nego-
tlations between the committee repre-
sentlng the short interest in the stock
and representatives of Mr.. Ryan. The
only interest of the Exchange in past
transactions in Stutz Motor stock is
IN the question whether or not in
violation of its constitution or rules
or of just and equitable principles. of
trade and business. In this question
it has a vital interest
"The members of the governing COM
mittee of the Exchange are firmly con-
WINGED that in all actions taken in re-
spect to Stutz Motor stock they have
been guided solely by their sense of
duty to the best interests of the Ex-
change and of the public"
Mr.. Ryan's Reply
Mr. Ryan, after. reading the Stock
Exchange statement at his home last
night, issued the following statements:
1.-The hypocrisy of the Stock En-
change is manifest. While the presi-
dent, on one hand, boasts of the in
volatility of Exchange contracts and
the Exchange explicitly declares that it
Will not interfere with them, the chair
man of the associated Shorts on the
other hand, who is called into being
by the Stock Exchange and whose
function is only to do unofficially what
the Stock Exchange desires, but dare
not do, has stated that he will fight
these contracts if it takes all summer.
| do not see why the president of the
Exchange finds it necessary to rcpudi-
ate his creature, and yet behind doors
to arm him for the fight What I
have done and what l will do will be
be in the open. I shall say the same
thing to the president as | say to his
man Friday.
u have never declined to make
settlement. 1t has always been my
earnest desire to mako a settlement.
1t was | who voluntarily, as the presi-
dent admits, called attention to the
situation. 1t was l who loaned Stutz
stock at the Exchanges express re-
quest and it is these very loans made
at their request which they are now
endeavoring to repudiate.
The public might be interested to
Know that this same body of autocrats
who have boasted and still pirate about
leaving me to my legal rights, have
only to-day advised the people who
owe me stock not to live up to their
contracts, but to lie down upon them
and take their chances. Further. it is
significant that this same invisible
artocracy by processes of ingenious
! NJ has made it worth the
lie of any Stock Exchange member
who, as my broker, would dare pro
coed on these defaulted contracts as
the very rules of the exchange pro-
vide. Does the presidents of the Ex-
change contend that this kind of ac
ton is preserving the inviolabilitv of
Exchange contracts or does he pre-
tend that such action is leaving the
parties to their legal remedies, or does
ne expect any one but short to
believe that this is impartial and not
designed to favor those who owe me
stock? | should like to know how he
distinguishes this from fiat repudia-
ton.
Contracts Regulated, He Says
"The ostensible rules of the Stock
Exchange provide that borrower of
stock must return it upon demand;
tnaC borrower of stock must render
q due bill for dividends declared dur
ing the borrowing; that a borrower
must keep his borrowed stock marked
at its market price. For some reason
which [ cannot discover. unless it be
that the autocratic powers controlling
the Stock Exchange are countenancing
and fostering it. my contracts have
been broken and repudiated in each
and everyone of these. particulars by
a number of firms among whom arc
the following: Hayden Stone 60,
Lindley & Co., Dominick & Dominick,
4. N. Whitney & Co., Jacquelin e. De-
Coppet, Decoppet & Doremus.
"Of these firms here enumerated. at
east five have members who are now
Governors of the New York Stock Elk
change.
II note that in the Presidents state
nent. though he assumes to be precise
n telling about my appearance before
his committee on March 81, omits to
state q very important fact, namely,
hat after l had appeared before that
committee and given them a full and
complete statement and they had full
of the condition in Stutz
tock, three firms with members on the
BOARD OF governors actually sold Stutz
tock on the floor of the Stock EN-
:hnnge up until the very last moment
he trading was allowed: Jacquelin &