The New York herald., 1922-07-25
RYAN'S LIABILITIES
Off TO $1S,OOO,OOO
Guaranty Would Liquidate
Pledges Quickly by Auc-
tiOn on August 2.
ID. HENRY OWES 8,905
Little Hope for Tradesmen
and Others Whose Claims
Are Unsecured.
STUTZ VALUE PUZZLING
Mrs. Ryan Creditor for About
Half of $l,OOO,OOO, Which
May Never Be Paid.

materially yesterday from the colossal
estimate of more than 100000
which he set last Saturday when he
confessed himself a bankrupt
It went down to $1S,00O,c00 after
Col. Francis G. Caffey had a chance
10 comb over the almost interminable
list of liabilities and eliminate dupli-
cations. but was still big enough to
make Wall. Street blink.
There is even further amelioration
II; the fact, stated by the receiver be-
fore Judge Augustus N. Hand, that
s14,000.000 of the amount is secured
by pledges of unknown value, with
only s4,o0OO0O unsecured. OF the un-
secured debts $2,OOO,oOO roughly is
owed to Mrs. Allan A. Ryan, who. in
turn, is listed In accounts receivable"
as debtor for $780,
These balances owed to Ryan by
persons who dealt with his stock brok-
erage firm contain some extremely in
teresting notations: one I'D. Henry"
for example, being written as debtor
for nearly $4,000.
Little Hope on Unsecured Debts,
There was not. however. much blue
on the horizon for the unsecured folk.
the long list of Fifth avenue merchants
and individuals who sold goods to the
Ryan family or who turned over money
TO the meteoric plunger of Stutz fame.
Nobody knows how much is going to
a Of fat- I<. (st,a r,.,xg
pany and the other banks get their bit
by auctionng off. or otherwise dispos-
inS of something like $11 ,000.0 900 of paper.
The identity and sort Of collateral
which is to be sold. IL the court con-
sents. at noon one week from tomorrow
at the Exchange Salesroom at IA Vesey
street. and Of the Identity of fifteen
persons who traded or did business
with Allan Ryan, all came out irr a
hearing before Judge Hand in his cham
bers in the Woolworth Building late
In. the afternoon. -
The Guaranty Trust Company. one of
the principal occurred creditors. had,
somewhat to tho surprise OF Col. Caffey.
notified Allan A. RYAN OF its intention
to offer at public sale on Wedneday.
July 26. at Il ana 16 Vescy street all
Of the collateral II IS holding on loans
to Ryan and his firm. The sale also
involves accounts receivable to the
Ryan firm amounting TO s1.JnO0c0.
All told. collateral notes totaling SILL
3l4.539.07 were to be hawlled from the
auction block. a proceeding legal and
1ustifiable under the terms of a trust
agreement executed with Ryan and his
corporate and personal trustees in
July. 1920
Appearing before Judge Hand in
chambers to thresh out this matter
were Mr.. Caffey and his counsel, David
Hunter Miller of Parker, Marshall.
Miller & Auchncloss; ), Allen Wardwell
~ Stetson. Jennings & Russell. repre-
'ntng the banking interests, and
George r. Lewis of Guthrie. Jerome,
Rand & I<resel, representing Ryan.
Seeks to Stay Guarnnty's Sale.
Mr.. Miller said that while the sched-
ulcs filed by Ryan showed liability
charge of more than S32 0C0 there
had been much duplication in entering
~ bilitcs. and that the actual SIM due
80 creditors was approximately S18.o00.-
80, of which $4,000 900. owed to the
various banks, were secured and $4,000
eco owed to merchants. individuals. &c.
were unsecured. He mentioned that OF
the unsecured claims $4,000. 900 Is called
for by Mrs. Ryan, that another individ-
val (Harry Payne Whitney, has a claim
for more than 81 ,000.0 that still an
other (Charles NJ. Schwab) is creditor
for more than 100000 and that the rest
IS due to a group of persons--Coleman
du Pont. George f. Lewis. Samuel I'm
termyer and many others.
Mr.. Miller explained further that the
larger part of the unsecured claims Is
covered by the trust agreement termn-
able after eighteen months and termi-
mated on July, s, 1922. Mr.. Miller had&
70 fault to find with the action Of the
Guaranty Trust Company and it's coun-
sci in sending Ryan's paper to the auc-
tion block to liquidate as rapidly as pos
sible. but he was there to represent the
receiver. who in turn had at heart the
interests OF all the creditors, unsecured
as we'll as secured.
It was suggested that Il would be we'll
for the court to grant a stay in the pro-
posed sale until the receiver had had
a chance to scrutinize the assets and
make himself familiar with the details
OF complex bankruptcy. He agreed
that precedents were against his request,
but he hoped that In an equity proceed
Ing OF that nature the court might feel
justified in exerting its authority
For the Guaranty Trust Company Mr.
Wardwell interposed temperate objection,
saying that the Guaranty Trust Com
Dany had no wish to rush matters.
though It was proceeding clearly within
its rights--a view OF the proceeding that
Judge Hand obviously took--and that IL
IL were agreeable to the court and the re-
ceiver the bank would postpone the
sale for n week In order to give the re-
ceiver a chance to look over the problems
involved. This was eventually agreed on.
and the sale will be held unless the court
interposes stay. at $3.50 y. NJ.
Wednesday. August O. at IL vesey street.
No Fixed Value for stutz. \
In the argument the point arose about
the probable value of Stutz stock, and
Mr.. Miller. for the receiver, insisted
that this Stutz, 111.614 Ia shares of
which are held by the Guaranty Trust
Company or more than a majority OF the
100000 shares outstanding. was So i'm
,ortant to the welfare of all of Mr..
Ryans creditors that care should be
taken In disposing of 1t. Court and
counsel indulged In surmise about the
probable value of the stock. but to that
nobody could return a definite answer.
Mr.. Wardwell, for the bank. said that
the 1921 quotations were a little above
par for high and 40 for low, but that the
stock, long barred from the big exchange
and not dealt In on the Curb. had no
Official price. The financial interests
nopod II could sell nj 40 as that would