The New York herald., 1922-08-03
RYAN STOCKS BRING
$S,615,79 ON BLOCK
Creditors Buy In Finan-
cier's Holdings, Once
Worth $50,0O0,0O0.
BANKERS PURCHASERS
Guaranty Trust Group Sole
Bidder for Most of !
Collateral.
FIGURES TELL OF CRASH
Tremendous Decline in Stutz
From 1891 to $50 Share
Only One Example.
FIGURES TELL OF CRASH

A. Ryan's fortune. estimated two years
ago between 100000 900 and $4,000, 900.
was sold at auction yesterday for
total Of s3,615,79l.9o. The property
sold consisted of securities put up by
RYAN as collateral for bank loans ag-
gregating many times the amount
realized on them. Much Of the col
lateral was capital stock of the Stutz
Motor Car Company of America. all OF
which brought $50 share at auction.
but there was good measure of other
securities, some of real worth and
others Of more or less doubtful value.
George f. Burr, president of
the Guaranty Trust Company, which
advanced a large part Of the huge
loans to Ryan, and therefore held a
great portion of the collateral, was
the only bidder for most of the Ryan
securities. Interest In the sale was
high, as evidenced by the great crowd
OF spectators in the auction rooms In
Vesey street when the sale began. but
that the interest was decidedly passive
was apparent when the bidding began.
Lot by lot the securities were put up
and knocked down 10 Mr.. Burr. 1t
was only now and then that another
bidder opened his mouth and rarer
still did another obtain block Of the
securities.
Bankers Plans Undisclosed.
w~an e..,,+u .hore. a., ,y,;cb +ba orea =
ct interest was centered, were sold for
q total of sass, ,2S6.60 for the 134.414 1-3
shares offered. All this stock was pur-
chased by Mr.. Burr for the Guaranty
Trust Company and its associates. with
tie exception of 1900 shares bought Ia
for the Empire Trust Company, one of
the secured creditors.
What the bankers will do with the
Ttutz stock has not been revealed by
them. There have been discussions
among them, it is understood. as to ad-
visibility of retaining it and through
it. control of the company If that is
done efforts will probably be made to
increase production and sales and. con-
sequently. returns. Another proposal
understood to have been discussed is
public offering of the shares.
One interesting feature of the sale
yesterday was the transfer 10 the
Guaranty Trust Company of the pro-
ceeds Of the sale of Ryans seat on the
New York Stock Exchange When
Ryan was expelled from the Exchange
about two years ago his seat was sold
for S9So0o and the net proceeds, amount
ing to s9,,9i3.75 after deductions for
minor accounts owed the Exchange
were deposited in the New York Trust
Company. The account was assigned
by Ryan as a part of the collateral
for his bank loans. At yesterday s
sale these proceeds passed into the
hands of the Guaranty Trust Company
for $4,000. In other words. the
Guaranty Trust bought for $4,000 an
account into which had been deposited
two years ago s97.9437s cash. No other
bid was recorded for the proceeds OF the
scat sale.
Contest on Royal Typewriter.
Another block OF stock which the
Guaranty Trust representative failed to
obtain was 5,3l0L shares OF no par value
common stock Of the Royal Typewriter
Company. Mr. Burr began the bidding
for this stock at S. a share, but oppos.
tion straightway developed and II
finally went to NJ. j. Meehan OF NJ J.
Mcehan & Co. at si5 share. Mr..
Meehan was acting as a broker for a
client whose name he withheld No
other block OF Royal Typewriter com
mon. 6eiA shares. represented in un-
endorsed certificates. was purchased BY
Mr.. Burr at $40 share. while he also
got 1873 shares OF preferred OF the
same company at SIS share.
TWO Items In the sale which the
Guaranty's representative failed to pur-
chase. but for which more than face
value was received. were two per cent.
notes OF the Knox Hat Company. Inc.
for s20.of9.34 and s2o.o1s.33. maturing
January 2. 1928. and January 2. 1924,
respectively. Mr.. Burr bid $4,000 for
each but an outside bidder, understood
70 have been acting for the Knox com
pany. raised the bids to $4,000 and the
notes went to him.
Great Depreciation shown.
The extent to which the values OF The
securities held as collateral against the
Ivan loans have deprecated IN the last
two years Is indicated BY the difference
between the prices paid at yesterday,
sele and the quotations on some OF them
cn April /. 1920. just when Pyan was
on the crest OF the wave In the financial
district.
At that time trading In Stutz had Just
been suspended by the New York Stock
Exchange, when II was selling Mt 1891 a
share. The decline from that point to
the price at which II was sold yesterday
amounted to 1871 a share. or moro than
si7.00o,000 on the block Of 1894 1-3
shares. Chicago Pneumatic Tool in
April, 1920. was quoted around par.
800, while It sold yesterday for s71 a
share. The common stock OF the Times
Square Auto Supply Company and It's
successor. Consolidated Distributors,
Inc. Which was s35 a share two years
ago. showed decline to about is cents
share. On the 10000 shares OF these
two stocks sold at the auction the de-
cline amounted to about S6G2.324
humorous touch was given the sit
uation when George II. Lewis. personal
counsel for Ryan and an officer OF the
Stutz company. bid on an assigned claim
against himself amounting TO s4,54O.1g.
Mr.. Lewis attended the sale with Mr..
Burr and the other bankers interested.
and when the claim against him was
put up Mr.. Burr. with smile. bid fifty
cents. Mr.. Lewis retorted by imne-
diately doubling his offer. The claim
was finally transferred to Mr.. Burr for
s1o0.