New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-22
Crash of Wall Street
Plunger's Schemes Ex-
(. pected for Is Months
and Disaster Is Averted
Free Assets Given
AS Only S644,OOO
Hope Seen for Unsecured
Creditors i'm the Shifting
Value of Collateral; No
Aid Came From Father

Allan A, Ryan, once master reader of
the ticker tape, has paid the penalty,
lis intimates said last night, for mis-
takes in Judgment regarding the stock
market. His fling yesterday of vol
untary petition in bankruptcy and the
appointment of receiver are echoes
Of the collapse of security prices in
1920, which followed soon after Mr..
Ryan had been expelled from anembsr-
snip in the New York Stock Exchange
after his tilt with the governors re-
sulting from the corner he engineered
IN the shares of the Stutz Motors
Company.
By more than eighteen months the
large banks and trust companies of
Wall Street, which are the principal
creditors of Mr.. Ryan, whose liabilities
reach $32 435, ATT, anticipated the bank
rurtcy action and sought to protect
their loans by taking over large blocks
6: securities and holding them in trust.
At the time of the arrangement in
November, 1920, it was intimated that
il more Is eventually realized from
the sale of the collateral than is neces-
ssry to efface the enormous bank loans
Incurred for financing the speculative
Imagination of this giant trader, the
difference was to have gone to the
credit of Mr. Ryan, but will now 60 to
the creditors of the bankrupt estate.
However, figures made public in the
petition left little hope of a surplus
after the bank loans have beeh met.
Bankruptcy Only Course
Speaking for the banks, George L.
Burr, vice president of the Guaranty
Trust Company, last night issued the
following statement:
This action of Mr.. Allan A. Ryan
has been anticipated and provided
against by the Guaranty Trust Com
FAny Our interest in the situation re-
sults from loans made upon collateral
Alan A. Ryan & Co. ois cur own ac-
ior others. The collateral has been in
process of liquidation for some tnme,
and will be in no way affected by the
bankruptcy proceedings"
Efforts to get more specific informa-
ton as to the relation of present
worth of the collateral, compared with
the amount of the loans, proved futile
1none of the interested groups would
reveal more than the court records.
The son of Thomas Fortune Ryan
copper potentate and leading figure in
the tobacco and banking world, who is
believed TO have been estranged from
his millionaire scion for several years,
has finally sought to disentangle him
self from the muddled speculations of
the post-armistice boom and collapse
by voluntarily turning his assets over
to receiver appointed by the court.
In answer to petition filed by David
Hunter Miller, of the firm of Parker,
Marshall, Miller G. Auchincloss, of 81
broadway on behalf of William Ed
ward Coffin, creditor with substan-
tlai claim, Judge A. N. Hand appointed
colonel Francis G. Caffey, former
United States Attorney, as temporary
receiver, with a bond of s5, 900, and also
designated Parker, Marshall, Miller &
Auchincloss as attorneys for the re-
ceiVer The bond was small, it was
pointed out, because most of the assets
we're already hypothecated, as result
,of the agreement made in 1920 with
the banks.
Failure Long Expected
1ne financial community accepted
,i me news of the bankruptcy of the mil
nohalre trader calmly just before the
market closed. For two years Mr..
Ryan, because of the losses sustained
aho because of his falling out with
ssuthorities Of the Stock Exchange, has
neen smaller factor in the specula-
i've marts than in the period preced-
ing. through his operations in Stutz
result of the corner in which the
market worth of the shares climbed
from loo% to 724 share, Mr. Rysn,
VINO W until recently was Deputy Police
commissioner of New York and per-
sai sonai friend of Commissioner Enright,
Increased his reputation as specu-
.asor from currency in all brokerage
vulces to household word throughout
the nation.
b.ni.g bi ming a voluntary petition in
.trs;assrruptcy .r;as in the United States Dis
tha Nv Sourt, Mr.. Ryan was writing into
s.s,h s oihelal record pages of his Wall
.,neee san career, which already had be-
& avme generally known, in an informal,
anoincial way. With the rising tend
e,ncy OF security prices in the last
s.syen I've, months, some were inclined to
asel that the trend in quotations would
dramatically restore Mr.. Ryan 20 a
'iponger financial condition.
e. oat the more thorough students Of
sss s.s anairs of the Street realized that
fer sf,sef financial storms pass failures
ocqaently oc,, come, because the psychol-
W.. ~ Of the district is better able to
hlnseand hla inevitable though unfavora-
;nd,.' Ind news after the general period of
ns:sSriminate fears is over. Thus in
tsa tpssaisky times weakened members of
sr s business and financial community
mt, sometimes artifcially supported
M. - u seems safe to let nature take
soufse IN the cleansing process of
Continued on page four)