The evening world., 1922-07-24
RYAN'S FAILURE
MAY BRING STUTZ
BACK ON EXCHANGE
Movement Reported to Save
Millions to Banks Holding
MOI. Collateral.
HAVE 145,Si4 SHARES.
Guaranty Trust Co. Serves
Notice 1t Will Sell All Bro
ker'S Collateral at Auction.

Banks involved in the bankruptcy
Of Allan A. Ryan through making
loans to him totalling $14,29O,S15
against which the declared value of
collateral is only $3.50, ,226, probably
will be saved from loss on their
transactions by having stock of the
Stutz Motor Company listed for the
second time on the New York Stock
Exchange. This was the opinion ad-
vanCed to-day by bankers who are
disinterested in the proceedings.
These six banks which show loans
to Ryan much in excess of value of
collateral, hold an aggregate of 49,
S14 shares of stock of the Stutz Com
pany. 1t was the corner in this stock
engineered by Ryan that marked the
beginning of his downfall.
There was pledged with the Guar
anty Trust Company for its own ac-
count, and according to the statement
of officials, for the account of others,
total Of 120,614 shares, with the
Chase National Bank, apparently for
it's own account, 9,4o0 shares; with
the Mechanics and Metals National
Bank, 7,400 shares; the First National
Bank, 2.400 shares; Lawyers Title
and Trust Company, $500 shares, and
the Empire Trust Company, 1900
shares.
Accordin gto a statement issued by
the Guaranty Trust Company IL has
written off SO, 900, 900 against the Ryan
ban account. Other banks seem reluct-
ant to state what provision If any has
been made for proving in reserve ac-
counts against the loss which appar-
entity has resulted from their transac-
tions with Ryan.
There was hardly a possibility that
Stutz stock would again be taken into
the fold by the Stock Exchange as
long as Ryan might benefit by hav-
ing it listed. But 1t is now a question
of saving banks from loss. Behind
Aome OF these banks are the most
powerful financial forces in the coun-
try. They are in a position to have
the stock given a public market by
the Stock Exchange, if they desire to
exercise pressure. But pressure, in
the opinion of disinterested bankers,
will not have to be used.
To-day it was considered probable
in well posted quarters that Stutz will
be back on the Exchange inside of a
month or six weeks.
4 copy of the notice served on
Allan A. Ryan & Co. on behalf of the
Guaranty Trust Co. in which notice
was given that the Trust Company
purposes to sell all of the collateral
-. 90
g. Co, was received by David Hunter
Miller of Parker, Marshall. Miller, &
Auchincloss, No. 81 Broadway. coun-
sci for Col. Caffey, reached, the city
to day and conferred with Mr. Miller
He and Mr Miller then went into
a conference with Allen Wardwel Of
Stetson, Jennings & Russell, where
the question of action on the part of
Col. Caffey to stay the sale will be
considered. The Guaranty Trust Co
has notified everybody concerned
that it will sell this collateral at pub
lie auction on July 26. The sale will
take place in the Exchange sales
rooms, No. 1916 Vesey Street
through Adrian H. Muller and Son
The securities to be offered at auC-
tion comprise all those pledged by
Allan A. Ryan & Co, with TO Guar
anty Trust Co. II should be borne in
mind, this firm was not made a party
in the bankruptcy proceedings, Allan
A. Ryan filing an individual volun-
tary petition The sale is also, un-
less stayed 20 involve accounts re-
ceivable Of the Ryan firm which
amount in round figures to abou'
81 500, 900.