New-York tribune., 1922-08-10
SchwabInterests
Buy Control of
Stutz Company
Guaranty Trust Disposes of
Shares Taken on Loans;
Thayer and Mitchell Are
Elected New Directors
Thompson Still President
Purchase a Surprise, as 1t
Was Expected Company
Would Be Absorb e d

Another chapter in the career o.,
Allan A. Ryan, once master reader Of
the ticker tape and lately bankrupt 20
the extent Of approximately sls,000,-
900, was written last night when the
Guaranty Trust Company announced
that II had disposed Of substantially
all Of It's stock in the Stutz Motor Car
Company TO private interests associated
with Charles VI. schwab. president Of
the Bethlehem Steel Company.
The stock. 1924 l-3 shares In all,
was bought By the Guaranty Trust
Company az public auction for $40 n
share on August 2, when all the Sc
curities which Mr. Ryan had pledged
20 various banks as collateral for loans
were sold under the hammer. Mr.. Ryan
formerly owned 1854 l-3 shares In
the Stutz Company.
Rumors that the Guaranty Company
was negotiating for the disposal OF its
stock pevaded Wall Street yesterday,
and as a result Stutz stock on the Curb
Exchange sold higher than %, as COM
pared with a closing price Of 1874 on
Tuesday.
In Ryan's bankruptcy petition
Charles NJ. Sehwab was listed as a
creditor with an unsecured balance Of
s309,555.
Two New Directors
At a meeting Of the board Of direc-
tors OF the Stutz Motor Car Company
held yesterday, according 10 a state
ment last night, Eugene V. R. Thayer
and willard A. Mitchell were elected
TO I'll two vacancies on the board.
This change" the statement read,
was made by reason Of the fact that
Charles NJ. Schwab, Mr.. Thayer and
certain associates now own or con-
troll a majority Of the stock Of the
compana George +. Lewis resigned
as secretary and treasurer and Mr..
Mitchell was elected in his place. Mr..
Thompson will remain president and
the business as an independent COM
pany will be continued as in the past"
The fact that Stutz will continue
as an independent company comes as
surprise In some quarters, where IL
was held as a possibility that the stock
would be absorbed BY another COM
pany.
The Empire Trust Company still
holds 1900 shares OF Stutz stock which
IL bought at the public auction Of the
Ryan collateral.
Stock Had Stormy Career
The stormy career of Stutz stock. OF
which the sale yesterday might be
called an aftermath, reached It's height
in March and April. 1920, when Mr..
Ryan engineered corner, which
boosted its market worth from i00x
to 724 a share. The climax Of the de-
velopments that finally led the officials
OF the Stock Exchange 10 strike the
shares from the trading list came on
March 80, 1920, when after the close Of
the market they met and decided that
a corner In the stock existed. The
last sale on that day was at 39i, an adj
vance in half month Of nearly 200
points.
Undaunted by the action Of the ex-
change, Ryan ordered the Stutz direc-
tors on the following day 10 declare a
100 per cent stock dividend, and five
DAYS later he offered the shorts In the
stoe': his own terms Of settlement.
II was in November, 1920, that a
number Of banks formed a committee
10 take over Ryan's affairs because OF
the great depreciation in the value Of
securities held By them as collateral.
The holdings OF Stutz stock under
this plan we're: Chse National Bank,
0 400 shares; Mechanics and Metals
National Bank, 7,400 shares; First Ma
tional Bank, 2.400 shares; Lawyers
Title and Trust Company, 4,600 shares;
Enluirc Trust Company, l.5o0 shares.
and Guaranty Trust Company, 4O,4Oo