New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-25
Implications in Schedule
Reduces Liabilities by
IA Million, Counsel for
Receiver Tells Court
Sale OF Collateral
Set for August 2
Guaranty Trust Accepts
Delay; Break in Stocks
as Banks Call in Loans

|
| Duplictions in the bankruptcy sched-
ules filed by Allan A. Ryan bring his
actual liabilities down to S1s,000,Oo
instead of the $32,ooo,oOo total dis
closed in Mr.. Ryan's original exposi-
tion of his Indebtedness, according to
David Hunter Miller, counsel for Colo
mel Francis G. Caffey, the receiver.
This explanation of the schedules was
made in Federal Court before Judge
Learned Hand by Mr.. Miller late yes
terday afternoon at hearing upon
the application of the Guaranty Trust
Company to sell all collateral it holds on
Ryan loans as trustee or for its own ac-
count, at auction on July 26. The out
come of the hearing was an agreement,
| suggested by the court, to postpone the
sale until August q.
No Urgent Reason for Sale Found
Judge Hand said that the rule of the
law he was bound by prevented him
from staying such sale unless there
were conditions indicating irregular
ity. On the presentation of the situa-
tion surrounding the bankruptcy pro-
ceedings by Mr.. Miller and Allen Ward
we'll, of Stetson, Jennings & Russell,
counsel for the trust company, it was
found there was no pressing reason for
holding the sale tomorrow.
| Judge Hand ruleo that counsel for
the trust company, after the receiver
had had time to examine all the papers,
might renew the application for an
order to dispose of the collateral next
Monday at o'clock.
Of Mr.. Ryan's actual liabilities ap-
proximately $4,o0o0oO, according to
receivers counsel, were unsecured
claims, of which s2,0Oo,OO0 was the
claim of Mrs. Sarah Tack Ryan, his
wife, and another $100O,OOO of the
| Whitney group of creditors. The Sc
| cured claims amount to about $14,000,-
| 900.
Mr.. Miller referred to decision of
| the CireusaS Court of Appeals which de-
| nies the right of the court to interfere
with the sale of a bankrupt's assets un-
less it iss~hown shat an yinjustllts would
be done by refusing stay. lie urged
| that it would not hurt the banks to
| time, so that the receiver and others
| might have an opportunity to exam
| inc the complicated papers and reach
| an understanding of the exact situa-
! ton.
To Sell Accounts Receivable
| The securities intended to be offered
| at auction comprise all those pledged
| by Allan A. Ryan G. Co. with the Guar
anty Trust Company. The firm, how
| ever, was not made party in the
bankruptcy proceedings, Allan A. Ryan
filing an individual bankruptcy action.
| The sale also is to involve accounts
| receivable of the Ryan firm, which
amount to about $1,5O0,000
The securities listed for sale include
111,614 1-3 shares of Stutz Motors,
| 49,256 shares of Ryan Consolidated
Petroleum, 1852 shares Of Times
Square Auto Supply Company, s1,oOo,-
900 Continental Candy notes, $4,000
Knox Hat Company notes, and the ac-
counts receivable of the firm, feature
not before entering into the situation.
There was a general discussion be-
! tween the court and counsel for all
the interests represented at the hear
ing, during which George F. Lewis,
that the Stutz motor stock consisted
| of an issue of 100000 shares. Mr..
Miller said that the feature of the pro-
posed sale would be the disposal of ohis
stock held in trust, and Mr.. Wardwell
| declared that since the shares had been
| ruled off the Stock Exchange there had
been no ready market for them.
| Mr.. Lewis said that if the stock we're
sold at par the banks would have all
that was coming to them. At 49, re-
Gently reported quotation, there would
stock would not bring anywhere near
| the face of the loans, and Judge Hand
suggested that the sale be delayed two
| weeks. Mr.. Wardwell would not ac-
cept this suggestion, but did agree to
one weeks delay.
In addition to the securities men,
| toned, there were also the following
| which are to be sold, according to the
notice served by the Guaranty Trust
Company: Sixty-one thousand shares
of Green Monster Mining Company,
$500 Argonaut Salvage Corporation,
125 Josephine Theatrical Company,
Inc, and a certificate of deposit of Mr.
Ryan for 1880 shares of Consolidated
| Distributors.
The list of accounts receivable of the
Ryan firm include Bethlehem Motors
employees, $25,627; H. M. Biggs, $685.
asa; F. S. Burden, S187,790; Agnes W.
Gill, $9,7s4; D. Henry, $s,s05; D. Man
ming, $50, DAT; j. II. Mackln, $361; G. O.
Connor, $31,3b9; c. S. Ryan, 1886, ,436;
| Mrs. c.. D. X. Walsh, s128,258, and
Frank White, $10,295.
A sharp break in prices on the Stock
Exchange yesterday was attributed
partly to the Ryan situation in that it
had Influenced banks to look over their
loan accounts with more care, with the
| result that considerable volume OF
loans on highly speculative stocks were
called during the day. Observers said,
however, that no direct selling of any