New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-05
Ryan Charges
Exchange Plot;
Asks Million
Salt, Filed in Supreme
Court, Alleges That Of
ficiaIs Barred Stuff Stock
to Evadc the Obligations
Many Firms Were Short
Complaint Tells of Finan-
cial Loss Incurred in Sub
shutting New Collateral

Allan A. Ran. through Stanchield
Levy, fled his long anticipated suit
against the board Of governors of the
New York Stock Exchange in the
Supreme Court yesterday Mr.. Ryan
asks 100000 damages for the
action of the board in suspending Stutz
Motor stock from the list and for e,s-
pelling him as a member of the
i exchange
The defendants named are William
H. Remick, president Of the exchange:
Herbert T. B. Jacqueiin, Donald c.
Geddes, Howard T. Whitney. Arthur
Turnbull and Henry G. s Noble.
Mr. Ryan says that among the several
enterprises he had promoted the de-
veloped was the Stutz Motor Car Com
pany, of whose stock he had large
blocks pledged with various banks and
banking institutions prior 20 March 81
last The stocks thus pledged for
leans amounted to $1,000, coo. Mr..
Ryan says that a the time the
bankers regarded this stock as fir.
class collateral. Just prior 70 March
81, according to Mr.. Ryan, deliberate
campaign OF short sales was inaug,i-
I.eu on the Stock Exchange Tor the
purpose OF depressing the market.
Stock and Loans Imperiled
The result of this campaign. if sue
cessful. Mr.. Ryan adds, would have
oeen that his holdings of Stutz stock
would nave been depseciated and the
integrity of the money loans secured
/ by pledges Of the stock would haxe
been imperiled
Some of the firms caught short or
the stock are mentioned by MIR p,
! as follows: De Conpet & Doremns
Dominlck & Dominick, II. \. Whitner
/ q 90, Llndley Co., Post & FIagr and
carlisle. Millick & Co. There were
DINERS 1t Is alleged, but their names
are not mentioned
On March 81 Mr.. Ryan complaina
the defendants. in 6.ree,..,., -, ''i'S
nigh standing for integrity whfcb 40
+ StosK hXcnange was organized to nam
/ I"lh, ana IN violation of the eou5-ahfa
principles OF trade and to relieve them
serves OF the obligation 10 return o..
denver the Stutz stock borrowed or
SOLO by them, and to injure plaintiff.
+ mallciously entered into a con
sIlracF to impair plaintiffs holdings
o. Stutz stock and to embarrass IN,
Ia
generally injure him in his business
IN nat the defendants caused the gov
erning committee of the exchange TO
Joir with them in passing d resolution
or ruling indefinitely suspeading trad
ing IN the Stutz stock and forbid5ire
members CT the Exchange from trading
in same" Q
Suffered Big Loss Financially
All this, the complainant alleges. was
urlaw1ni and contrary to the constitu-
ton and bylaws o. the exchange.
Nj Ryan further asserts that h was
compelled by the action Of the govern
ors OF the exchange to withdraw his
Stutz stock from various banking in
sstitutions and substitute as collateral
for .oans other GIT edge sccuritfes.
which eAtailed great financial loss
to hlm. }fr Ryan also mention thai
ne was illegally expelled by resolu-
ton adopted a. "a fictitious and pre-
+ tendea meeting Of INC cxeaaneo.9 at
" mich there was not adduced anv ovi-
dcnce OF conduct on his par that was
moons stent Win jUst ami equitable
principles.