The New York herald., 1922-07-28
HOPES TO BLOCK BANKS
Automobile Company's Di-
rectors Meet, but Remain
Silent Afterward.
ACTIVITY ON THE CURB
Traders Believed to Be Feeling
Our Market-BOOk Value of
Shares Put at $29.

Rapid developments IN the bankruptcy
situation of Allan A. Ryan determined
Receiver Caffey yesterday to resist the
plan of the Guaranty Trust Company,
the Chase National Bank and the Law
yers Title and Trust Company to sell at
public acution next Wednesday about
1850 shares Of Stutz motor stock.
pledged by Ryan under trust agree
ment signed in July. 1920.
The balance sheet Of the Seutz Motor
Company of America, Inc. as OF June
80, 1922, indicates that the concern
Is substantially solid, with assets far
outweighing liabilities. This inspired
the receiver to the belief that large
block of the stock should not be dumped
on the market to bring. probably. tithe
Of its value.
Col Caffey will go before Judge Au-
gustus N. Hand next Monday at
p. M. to argue that Stutz is by no
means hopeless proposition. that 1T
can be nursed into real value and that
the interests of all the creditors de-
mand more deliberate action and time
to see what can be done for the stock
by underwriting or any OTHER feasible
proposition. The receiver doesn't at all
like the precipitate action of the banks.
Book Condition of Stutx.
His attention was fastened last night
OF the balance sheet referred to. a
document he had been awaiting with
much interest Here is the financial
statement in full:
ASSETS.
Fixed assets
Land and buildings 81 .356S3o.o2
Machinery, fixtures
and patterns 9Oo,So3.tl
Motor trucks and
Furniture and fix
lures ...-....... lo,234.s6
~ -------- s4.4oo. .oso 81
Current assets
Cash ............. si4s.4 .46si3
Accounts receivable 256,14S.s0
tory ............. 1,5o7, ,4o015
--- 1.e12. .oe1. IL
Other assets ...... 1865. .84
Deferred charges ............. 130.00S.5 SO
se,455, ,sOo. 81
LIABILITIES.
Capital stock
Authorized and issued, 200, 900
shares of nominal par
value declared under the
stock corporation law of the
State of New York. at IS per
share ..-s............. $l,VO,UOOO
Current liabilities
Accounts payable. 24s0e2.5o
Accrued accounts. 33 461.74
Reserve for depreciation of
plant and equipment. ......... S555.o2I SO
Surplus ....................... 4.413, 1851 .6S
$6.455. 800. 81
George f. Lewis, secretary for the
S<utz Company and counsel for Allan A.
Ryan, announced after the meeting Of
the board Of directors, which was held
at $3.50 p. NJ. in the office of Guthrie,
Jerome, Rand G. Kreseel. that the resig-
nation of Alvin Untermyef, as Of June
Is, and of w. H. Coversale, as of June
10, had been accepted and that their
places had not been filled Mr.. Lewis
said the meeting was routine and that
the future prospects of the company
were not discussed. He asserted that a
report of the current earnings could not
be given out because such publication Is
contrary to the custom of the company,
earnings being given out only in the an
nual report.
Banks Put i'm $4,000 shares.
Other banks Joined with the Guaranty
in notifying the receiver that they in
tended to dispose of their holdings of
Stutz pledged for Ryan loans unless the
court should rule otherwise. These
banks are the Chase National with
1900 shares, the Lawyers Title and
Trust Company with $500 shares and
the Chase Securities Company with
1000 shares, or a further assortment of
Stutz Of 1890 shares to be added to
the Guarantys holding Of 111,614 1-3
shares.
The receiver indicated a possibility
that the court might hold up the sale.
Everything turns on whether the trust
agreement signed by Ryan and his trus-
tees differs in any important local par
ticular from the usual trust agreement.
If flaw exists, 1t Is believed the court
wi. upset 1t.
Charles NJ. Schwab said that he hoped
and believed that Allan A. Ryan would
be able to get all Of his debts paid and
that he would be able 20 return to the
world of finance. Mr.. Schwab declined
to discuss Stutz affairs.
Activity I'm stock on Curb.
Despite a report in Wall Street that
the Stutz Motors operated at loss
the first six months of this year. Mr..
Ryan's favorite stock, Stutz. which Is
accepted as the cause of his
failure. moved across the board in the
Curb Exchange in a manner unequaled
in many months.
Based on the balance sheet, with good
will carried at s2.100,000. the book value
OF the 100000 shares of Stutz stock out
standing should be approximately $50
a share.
Nine hundred shares had been sold by
closing time at prices ranging from sll
TO $50. Several hundred shares had been
sold before noon
The first sale was 100 shares at $50
share. the top price for the day; the
second showed drop of points when
another hundred were sold at $li. and
a little later a third hundred were sold
at si2.
In the final hour there we're two sales.
100 shares at $40 and 200 shares at $50.
The sales were the first active trading
in Stutz since June, when shares went
at s45. On Wednesday there was bid
OF sl1. but no takers.
Reports in the Street were that the
sales apparently had something to do
with an effort to feel out the market
to the auction.
The highest price obtained for Stutz
during the Ryan corner Of 1920 was $70l.
David ~. Miller. attorney for the re-
.,.I