The New York herald., 1922-07-23
GUARANTY MlNIMIZES
LOSS ON RYAN LOANS
Says Indebtedness Is Only
$4,OOO,OOO, With Provision
for $3,OOO,OOO.
$4,000, ON SCHEDULES
Other Lending Banks Silent
About Their Status in
Failure.
S22, 900, 1000 ON SCHEDULES

The total indebtedness OF Allan A.
Ryan and Allan A. Ryan & Co. to
the Guaranty Trust Company is ap-
proximately $4,000. 900. q which $4,000
900 has been written of and provided
for, instead of about s22 2,0o0. 900 as in
Friday when Ryan failed for $S2.4S5.-
900.
This was revealed by the trust COM
pany yesterday when w. C. Potter. its
president, issued a statement setting
forth the company's exact position in
the Ryan situation. He said:
Attention Is called to certain news
paper statements of the indebtedness
of Allan A. Ryan to the Guaranty
Trust Company of New York, various
ly placed at $500. 900 and upward.
"The facts are that Allan A. Ryan
and Allan A. Ryan & Co. owe the Guar
anty Trust Company Of New York for
Its own account a principal amount of
approximately $4,000.oo0. against which
pledged collateral applies Cognizance
DNNh
than year. and in anticipation thereof
reserves have been set up against this
account aggregating $3,000,000.
While there are loans standing In
the name Of the Guaranty Trust Com
pany Of New York In excess of the fig
ures given above, all such loans are held
by the Guaranty Trust Company in its
capacity as trustee and for the account
of others"
Names OF Others Not Disclosed.
The identity Of the persons or inter-
ests to whom Is actually due the balance
OF the loans held in the name Of the
Guaranty Trust Company but the claims
under which are disavowed by that COM
pany could not be learned. Officials of
the Guaranty refused to add anything
to the statement issued by Mr.. Potter.
Nor would they reveal the extent to
which the collateral securities had been
liquidatcd
George II. Burr, vice president Of the
Guaranty, in a statement issued Friday
afternoon after the bankruptcy petition
was filed by Ryan's attorneys In Federal
court had said that progress had been
made In liquidation. but declined to re-
veal just how far 1t had gone.
All of the banking interests involved
In the Ryan situation were extremely
reticent, and no statement could be
obtained from Ryan or his attorneys.
Gates w. McGarrah, president Of the
Mechanics and Metals National Bank.
enc Of the big creditors OF Ryan, ac-
cording to the schedule of liabilities. Is
on vacation trip in Massachusetts and
could not be reached. In his absence
other officials of the bank declined to
comment ON that institutions position
in the Ryan failure.
At the Chase National Bank. another
Of the institutions set down In the
schedules as a big creditor. officials de-
clined to have anything to say about
their connection with Ryan.
No Eject on stock Market.
In addition to the $500, 900 discussed
In the statement bysthe president OF the
Guaranty Trust Company. the bank
ruptcy schedule also showed loan ag-
Eregating $13,543.696 made on S529,04S
collateral by Allan A. Ryan a. Co.
to Allan A. Ryan personally. the
securities being subsequently re-
pledged by the Ryan brokerage firm
with the Guaranty Trust Company IT
Is presumed that this is the item referred
to In the closing paragraph OF the trust
company's statement when IL speaks OF
"other loans outstanding In the name OF
the Guaranty Trust Company In excess
Of the figures given above"
The stock market paid no attention TO
the Ryan troubles. Stocks we're not par
ticularly active and those which were
involved in the Ryan affair and which
are still actively dealt In did nothing
whatever. Most Of the so-cslled Ryan
stocks. however. have become quiet and