The New York herald., 1922-07-22
Continued from First Page.

ing to $150.O00. but has borrowed on
them so that there is an apparent free
value of only s7.4l9. He also gives as an
asset the $4,000 realized from the sale
of the seat which he formerly held In
the New York Stock Exchange.
He disclaims possession OF any books
or pictures. In addition to the life in
surance mentioned he has a policy of
s4005.50s, with his wife as beneficiary,
and says he wishes to retain as much
as can be retained by payment Of an
annual premium of $500. ~
The fact that the receivers bond Is
only $4,000 was explained in the Fed
eral Building by the fact that most Of
the estate already has been hypothe-
Gated.
The receivership proceedings are the
latest chapter in a long and dramatic
story OF financial operations, during the
course Of which fortune Of $35, ,000. 900
was built up and lost again. Ryan's
operations in Wall Street were always
OF spectacular character but 1t re-
mained for the famous corner in Stutz
Motor Car Company stock on the New
York Stock Exchange to round out his
career as stock operator and, Incl
oentally, to mark the beginning of his
financial downfall.
In the early weeks OF 1920 traders on
the floor of the New York Stock Ex-
change noticed that Stutz Motor shares
were unusually strong and that no mat
ter how heavily they were sold the
price continued to advance. This was
first noted when the stock was selling
around 100 share. Soon 1t had climbed
to ITO and then to 115. When 1t touched
13 it was definitely accepted that
pool was operating in tho stock, but 1t
was generally believed that the move
was about over, and when mention was
made In some quarters of price of
200 for the shares 1t was met with
derision.
1t was not long. however. before the
200 mark had been reached and passed.
BY that time the cries Of Corner.
began to make themselves heard. But
the climb upward continued. Shorts
began 20 plead with Ryan for settle
ment, but he refused to listen. The
price Of the shares continued its ad-
vance. by this time climbing ten and
twenty points between sales, and went
right on up to top of 39l.
Stutz stock Suspended.
BY that time the New York Stock Ex-
change had taken cognizance OF the SIT
uation and had called Ryan before us
governing committee. Different ver-
sions Of what happened at this meeeins
have been given, but in any case, the
governing committee announced tnat
Stutz had been suspended from trading
in the exchange. The next day trading
in Stutz shares occurred on the curo at
prices above 400.
It was on March 80 that the stock
was suspended from the Stock cx-
change. Two days later Ryan rep leo
by causing the directors of Stutz to de-
clare a 100 per cent. stock dividend,
which made things all tie more unpieas-
ant for the shorts. On April Ryan an
nounced publicly that he had oilereu
terms of settlement to the Stock E%-
change authorities, and that they nal
been refused. The next day the shorts
in the stock got together snd formed
protective committee to look after their
interests, and on the same day some OF
the Stutz stock sold at public auction
at S701 a share.
On April Is, Ryan rendered his resis-
nation to the New York Stock Exchange,
but 1t was rejected on the ground that
the exchange will never permit man
to resign under charges, and on April
IA the governors ordered the Stutz STOCK
stricken definitely from the list. Media
with the result that about July settle
ment price OF s425 a share. plus the big
stock dividend and other charges, was
agreed on, sending the total up to more
than s551 a share. 1t was bitter pill
for the shorts to swallow, but they had
no alternative.
Sues Exchange for $1,OOO,OOO.
Almost Immediately after the settle
ment Ryan was formally expelled from
the exchange, and he replied with DAM
age suit against the exchange and its
governors for 81 100000 alleging he had
suffered damages to that extent in their
treatment OF the Stutx affair. That suit
has never gone to trial, and 30 far as Is
known now has bean allowed to die
It was not until late In the fall OF
1920 that It became generally known
that as a result Of tho various angles
Of the Stutz corner Ryan had become
financially involved to the extent where
II became necessary for his banking
cred itors to take charge of his assets
II was announced late In November OF
that year that banking committee con-
sisting of representatives of several. In
Guiding the Guaranty Trust Company
the Chase National Bank. the First Ma
;ional Bank. the Mechanics and Metals
National S3nk, tne f4lHpiit iiuse O'hh-
pany. the Lawyers Title and Trust Com
pany and several others was to be
formed.
In January. 1921. an agreement was
reached, and according to statement
issued. at that time the Guaranty Trust
Company and Alvip Untermyer. Ryans
attorney. we're made trustees OF Ryan's
assets to liquidate them In the best pos
sible way.
Decline in Market Ruinous.
The principal cause Of Ryan's unhappy
situation at this time was the steady fall
of the stock market. For months after
the Stutz affair stocks had declined
without interruption. very large ma
jority Of Ryan's assets consisted OF stocks
and bonds which we're depreciating In
an alarming manner. II was just at the
time when the general defiation Of In
dustry was at its height and business
on the decline.
Another important factor In the Ryan
situation too was the fact that a great
deal of the assets consisted OF the stocks
and bonds of so-called Ryan companies,
and since the Stutz episode the public
was a little hesitant about buying them.
This made their decline all the more
abrupt. The price of Stutz had dropped
to around the figure OF 100 where II
started and hes since declined as low
as 80.
Several law suits have grown out or
the Stutz AFFAIR besides that ffled by
Ryan against the exchange. Mrs. G. J.
Ryan. sister-in-law Of Allan A. Ryan,