The Washington herald., 1920-04-09
STUTZ MOTORS
GOES TO COURT
Clientele of More Than
Fifty Houses Short Of
Stock.
NO WORD FROM RYAN
Stock Exchange Requests
Statement of Each Firms
Commitment.
NO WORD FROM RYAN

New York, April s. Court pro-
seedlings to test the right of Allan
A. Ryan to call for delivery Stutz
Motor shares sold Short are ex-
pected to be instituted in the near
future as the result of today's de-
yelopments in the Stutz matter. AS
the first step in this direction, 1t
was learned that Charles A. Morse,
of Clark, Childs G. Co., will head
a committee of three members from
the Association of Stock Exchange
Fins, which has retained the law
firm of Rosenberg & Ball as coun-
sci.
Mr.. Morse, in reply to inquiries,
stated that the plans of his COM
mittee had not yet been fully de-
veloped, but he asserted that he had
consented to act as chairman after
consulting with the executive COM
mittee of the association, of which
he is the president. This body is
different from the governing COM
fnittee of the Stock Exchange, in
that it represents the Office part
ners of exchange houses, but it,
nevertheless, is under the jurisdic-
tfon Of the senior organization. Mr..
Morse further stated that the other
members of the committee would
probably be appointed by him to-
day.
In other quarters it was learned
that from fifty to seventy-five Stock
Exchange houses having customers
short of Stutz stock will be repre-
sented by the Morse committee.
These firms are not only in New
York, but in other cities as well.
This contrasts with earlier figures
showing that only fifteen exchange
firms are involved in the Stutz cor
ner. While ostensibly the whole
matter of getting the shorts out of
their present dilemma is being han
died by the Association of Stock
Exchange Firms, it is understood
that the board of governors of the
exchange will continue to have the
controlling voice in whatever de-
-cisions are reached.
In pursuance of this policy. f.
v. ID. Cox yesterday sent a letter
to all members of the exchange re-
cuesting further information con-
corning the amount of long and
short-haul stock now held by them
for the accounts of customers. In
view of the announcement by the
exchange authorities last week that
IL had found no large Single short
interest in the stock. the later COM
munication caused surprise in finan-
cial quarters. The letter said:
Il am instructed by the commit
tee on business conduct to notify
you to furnish to this office imme-
diately the following information In
connection with your position with
regard to Stutz Motor Car Company
of America, INC. at the close OF
business on April 7. 1920: How
many shares long; how many shares
short"
Any attempt by Mr.. Ryan to call
for delivery stock sold to him
through stock exchange houses. il
was said. will be met with a prompt
refusal on the ground that such
delivery would contravene the re-
cent ruling of the exchange that
all transactions in Stutz shares have
been barred indefinitely. This, it is
expected. will bring up the whole
question Of whether Mr.. Rya an has the
right to obtain stock sold to him
before the exchange regulation went
into effect.
Rumors were current that after
the Close of the market the exchange
governors would announce drastic
action relative to Mr.. Ryan's mem.
bership on the exchange, but these
did not materia1ize. Mr. Ryan was
not heard from, il being stated a.
his offices that he was still away
on a vacation.