New-York tribune., 1920-06-11
Change Serves
Allan A. Ryan
With Charges
.Cuilty of Conduct Not
Consistent W ith Just
Principles Of Trade Is
the Text of Accusation
TO Hold Hearing June 23
Broker Makes Denial and
Alleges That Packed Jury
Will Decide His Fate


The fgh. between the New York
ssoek Exchange and Allan A. Ryan over
.be Stutz Motor corner furnished fur
.her sensational DEVELOPMENTS yester-
say when Mr.. Ryan made public copies
Al charges preferred against him by
,he snecial committee OF the Exchange.
appointed April % to investigate deal
;rgs in Stutz shares prior to their
being transferred to the Curb Market.
These charges, served upon Mr. Ryan
ia his office yesterday at lis Broadway,
we're summed up in the following SEN
.snce: "That said Allan A. Ryan has
been guilty of conduct, or proceeding,
inconsistent with just and equitable
principles Of trade"
They are based on Section VI OF the
Stock Exchange constitution, which
saws that "a member who shall have
been adjudged by majority vote of
all the existing members of the gov
erning committee to be guilty of wilful
violation of the constitution of the FIX
change, or OF any resolution of the
governing committee regulating the
conduct or business of members, or of
any conduct. or proceedings. inconsist-
ent with just and equitable principles
Of trade, may be suspended or expelled
ss the said committee may determine,
unless some other penalty is expressly
provided for such offense.'
Will Act June 23
Action will be taken on the charges
sgainst Mr.. Ryan at a meeting of the
Exchange governing committee June
%, at which Mr.. Ryan is entitled to be
present TO examine or cross-examine
all witnesses produced by the commit
tee and also to present such testimony
in defense, or explanation, he may
deem proper"
In his reply to the Exchange charges
and the stipulations under which he
may appear before the board of gov
ernoAs, Mr.. Ryan declared that they
corrooorated the statement made by
him Wednesday that the Exchange
would never voluntarily bring about
full, fair and public inquiry of the
Stutz incident. He complained that
while ne is permitted TO be personally
present at the meeting on June % he
is not entitled to counsel for the pur-
pose of examining the witnesses pro
duced against him, or to be accom-
panied by q stenographer to make a
record Of the proceedings.
I'm short" said Mr.. Ryan, "the pro-
ceeding instituted by the Exchange is
to be star chamber proceeding, at
which the interested parties are to be
the judges, the jury and the execu-
toner. and from which the public is
absolutely excluded. The nature of
the charges, as we'll as the entire Stutz
controversy, are of such character
that the public is entitled to full knowl-
edge of every step in the proceedings.
Nevertheless, the powers of the Ex-
cnange seem determined to defy public
opinion, although l have insistently
requested full public hearing before
an impartial tribunal, and this will yet
be brought about
Calls Charges Ridiculous
THE charges which were made
against me are ridiculous on their face
During the advance in the Stutz Motor
Car Company stock the business con-
duet committee and the law committee
Of the New York Stock Exchange had
first and full knowledge directly from
ne in person of exactly what was TAX
ing place, and furthermore members of
these committees, with this full knowl-
edge, continued to sell Stutz Motor Car
Company stock. The same packed
Jury Of parties in interest that sat
N the case originally in protest against
which resigned my membership on
tae Exchange and requested that the
STOCK De removed from the list, is now
bringing about this belated effort to
!e@tify their misconduct"