The New York herald., 1922-07-26
Financier's Friends Say He
Will Make Fresh Start
With Slate Clean.
NO RECENT GIFT TO WIFE
Bankrupt Gave $500, 1000
Three Years Ago When Af-
fairs Were Solvent.

The financial salvation of Allan A.
Ryan's creditors-the unsecured, and,
to a considerable extent. the secured
turns almost entirely upon Stutz
Motor stock and how much can be
realized from it by the receiver.
1t is this problem that engaged Col.
Caffey and his counsel, David H. Mil
Ter. yesterday. If Stutz, by means of
any sort of a reorganization of the
company's affairs and financing. could
be brought to something like par.
Ryan's debts would be wiped out and
there would be- a margin left over
This is the receivers information.
How to do it is making Col. Caffey
earn his fees. In the first place the
Guaranty Trust Company, standing on
It's rights under the trust agreement of
1920. is moving firmly to sell a good
deal more than half the whole issue of
Stutz at public auction next Wednes-
10000 shares or 65 per cent. of the
whole.
Friendly Sale" Expected.
What Col. Caffey and Mr.. Miller fear
is that the stock will be fairly driven
into the earth II so much Of it is
dumped all at once and to a dubious
public. They want delay. chance to
look around and do some benevolent
scheming on the part of the creditors
all of the creditors. They are willing
to listen to underwriting and reorgan-
izatfon propositions.
The banks have been obstinate,
amiably so. but still obstinate. They
have agreed to a weeks delay In the
sale, but 1t is expected that they will
oppose any further postponement of the
auction. The receiver Is determined to
block this sale If possible.
Interests In close touch with the sit
uation are of the opinion that the stock
will be bid in by friendly interests.
John ]. Watson, Jr, a director of the
Stutz Company. declared yesterday that
In view Of the companys financial po-
sition as we'll as its position In the
trade. he valued control of the cor
poration at about $4,OO0,O0O. This
would be equivalent to approximately
$40 share.
Comeback Anticipated.
So far as could be learned no plans
have yet been made for the formation of
a syndicate to purchase the Stutz stock.
Mr.. Watson said the company's cash
position Is excellent. 1t owes to banks
approximately $150.000 and normally
has cash on hand of twice that amount.
AS of December 81. the company had
current assets of S2.02S,0OO against cur
rent liabilities of only s302,O 900, a ratio
of GIL to l. Sales last year were low,
he said, the company having been af-
fected by the depression in the motor
industry.
Friends of Mr.. Ryan declared yester-
day that his sole purpose in bringing
on the receivership proceedings for his
own affairs at this time was to be able
to clear the slate entirely of all of the
difficulties In which he is involved and
to start afresh. They declare that as
soon as the receivership PROCEEDINGS are
ended and Ryan has become once more
free agent he will reenter the world
of finance.
The next bankruptcy hearing will take
place before Judge Augustus ". Hand
In his chambers in the Woolworth Build
Ing at p NJ. on Monday. Judge Hand
'."S bNcu vi. OdIIey ana MS counsel
that much time to devise some better
way Of disposing of the Ryan collateral
now held by the Guaranty Trust Com
pany than by auction, and the receiver
was up to his ears in work last night.
Subsequent hearings will take place be-
fore Peter p. Olney at 2 Rector street,
Mr.. Olney having been appointed referee
for this purpose.
*1,5OO,oOO Gift Yenrs Ago.
Rumors that Allan B. Ryan had made
presents of cash or property to Mrs.
Ryan at some time previous to the dec
laration of bankruptcy were cleared yes-
terday by the statement of Mr.. Miller
that about three years ago, when his
affairs were solvent. Mr.. Ryan had given
s1,5Oo,o00 to Mrs. Ryan "as any mar
ried man has a right to do when SOL
vent" Mr.. Miller added
AS regards the firm Of Allan A. RYAN
& Co., which is not concerned in the
bankruptcy, Mr.. Miller advised the re-
ceiver not to take possession Of its offices.
The receiver was notified yesterday
that meeting of the directors of the
Stutz Motor Car Company OF America.
Inc. Will be held tomorrow, July q.
for what purpose the receiver was not
informed The directors are Col. Will
lam n. Thompson. president: George l..
Burr. vice-president of the Guaranty
Trust Company; John ]. Watson, Jr.,
w. L. Cox, an engineer. 100 Broadway;
Hickes A. Weatherbee of Arnold. Con-
stable & Co.; Alvin Untermyer and w.
II. Coverdale. The receiver has sought
for statement of the concerns affairs
and has been informed that a state
ment is in preparation.
Inquiry on many sides yesterday
showed that there Is only the vaguest
notion as to what the stock is worth.
IT was thrown off the New York Stock
exchange. Ii is not being dealt with
by the Curb and such Is the uncertainty
concerning 1t that there are no trans
actions "over the counter" Among
creditors a hope exists that the big
exchange will restore the stock to good
standing. but one OF the requisites of
good standing is that stock shall be
well distributed. which Is not the case
with stutz, the ownership being in very
few hands.
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