The New York herald., 1922-08-10
SCHWAb INTERESTS
BUY FULL CONTROL
OF STUTZ MOTORS
Get Stock That Guaranty
Trust Co. Obtained From
Ryan Wreck.
REMAINS INDEPENDENT
Concern Elects Willard A.
Mitchell and Eugene V. r.
1Thayer Directors.
\ PRODUCTION 5000 CARS
Shares Went From 115 to 391
in Thirty Days, Then to .
700, Finally to 20.
PRODUCTION 5000 CARS

The. Guaranty Trust Company an
nounced last night that it had dis
posed of substantially all of the stock
of the Stutz Motor Car Company to
private interests associated with
Charles M. Schwab.
The Guaranty Trust acquired con-
troll OF the Stutz stock at $50 share
on August 2, when the assets OF Allan
A. Ryan were sold for s2,6ss.0 900 at an
auction for the benefit of his creditors.
The following announcement was
made by the Stutz company:
'At q meeting of the board of di-
rectors OF the Stutz Motor Car Com
pany OF America. held August 3,
Eugene v. r. Thayer and Willard A.
Mitchell were elected to fill two
vacancies in the board. This change
wes made by reason OF the fact that
G. NJ. Schwab, Mr.. Thayer and certain
associates now own or control majori-
ty of the stock Of the company. George
f. Lewis resigned as secretary and
treasurer and Mr.. Mitchell was elected
in his place. w. n. Thompson will re-
main president and the business as an
independent company will be continued
as in the past"
sought by Two Companies.
There were rumors in Wall Street yes
terday that two other automobile COM
panies we're seeking to buy the Stutz
stock and the shares rose to 22M on the
Curb the highest price reached since re-
ceivership proceedings were instituted
against Mr.. Ryan.
1T was said one conpany that unsuc-
ccssfuify sought control was big manu-
featuring concern that wished 10 add .
sport car to It's already large produce
ton. The other was reported as .
smaller company that hoped to merge
with the Stutz organization
The Guaranty Trust Company was
Allan A. Ryan's principal creditor when
he failed three weeks ago, having adj
vsnced large loans to him, for which he
put up 134,414 shares of Stutz stock as
collateral 1t was the only bidder at
the auction and bought most OF what
was left Of Ryan's dwindled fortune.
The Stutz Company in 1919 made a net
profit of $997.14s, or s9.97 share on
its capital stock. It's net sales that
year aggregated s7.2i4.249. against
s3,536,557, and cost of manufacturing
s5,57O,09e, against s2,S91.S3s in 1918.
leaving gross profits of s1.7o4.l50,
against $644.719.
RYAN was president of the Stutz Com
pany and owned n controlling interest
in the stock. In March, 1920. 1t was
selling on the stock exchange for about
Sis a share. bringing the total value
of the outstanding securities to approxi-
mately $11.500.000. In the brief space
OF thirty days the price shot up to
1891 a share.
When Ryan and his associates corr
rered the stock the shares scared to
more than S700 when offered at public
auction after the Exchange had ordered
trading discontinued on March 81.
On April ] the directors of the Stutz
company announced stock dividend Of
$4,000 shares In addition to a dividend
of 10000 shares declared month
previously.
AS automobile concerns go the Stutz
IS comparatively small. At its plant In
indianapolis 1t turns out 5000 cars a
year of racy model that has proved
popular as sport car All properties
Of .hc company we're inventoried at
about $4,000. 900. of which s2,000,000
was good will and trade marks" at the
time its stock value had risen TO ap-
proximateIy $40. 100000.
II could not be learned last night
whether Mr.. Ryan will be associated
with the company again. but in view
Of his many years of association with
Mr. Schwab II was thought that he
might be- Mr.. Ryan is q director OF
the Bethlehem Steel Corporation. When
he began TO meet with reverses in Wall
street he resigned from the directorates
of several companies. including the
bethlehem, but IL Is understood that Mr..
Schwab prevailed upon him to remain
a member Of the Bethlehem board