New-York tribune., 1922-07-23
Ryan List of
Loan Values
| Anazes Banks
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spAr, nor John McHugh, president, of
che Mechanics and Metals National
Hank. the institution most heavily in
voived after the Guaranty and Chase,
ceuld be reached, and at the offices Of
the bank, Frank O. Roe, president,
declined to comment on the situation.
At the First National Bank. the En-
pire Trust Company and other financial
concerns interested. the absence of ex-
ecutives acquainted with details of the
Ryan loans was assigned as the reason
for the lack Of statements.
The paucity of formal statements,
for which the traditional reluctance of
bankers to discuss details of their
business, as we'll as the Saturday half
holiday, was in part responsible, was
not in accordance with private ex-
pressions of opinion and the volume Of
informal comment. The bankers con-
cerned made no effort to conceal their
discontinue over the first public
airing of figures in the adjustment of
Mr.. Ryans affairs, while the failure
was almost the sole topic of discussion
during dull session on the New York
Stock Exchange, where the contrast
between Mr.. Ryan's market operations
and influence of two years ago and
4he absence Of effect of his bankruptcy
at this time was conspicuously noted.
The disparity between the amount
OF the loans and the collateral as
valued by Mr.. Ryan was generally
characterized as exaggerated, but no
information was obtainable as to what
a fssirer valuation of that collateral
wo1Id be. Nor were any figures avail
able as to the extent of losses beyond
the intimation given in the reserve
created by the Guaranty Trust Com
pany. The explanation of this lack of
figures was that the collateral is now
in process Of liquidation by the trus-
tees, who have been in charge of the
situation for a year and half, and
losses will not be determined until
liquidation has been completed.
Losses Admitted Now
II was ascertained, however, that
provision has been made against all
probable losses and that the bank
ruptcy proceedings will have no bear
Ing upon the continued liquidation of
the account. That there will be SUBJ
stantial losses was generally admitted
whereas when Mr. Ryan's affairs were
pected that some equity might remain
over and above the amount Of the loans
that would revert to him.
Viewed separately, bankers said, the
Ryan transactions could hardly be
condoned. Conceding that at the time
the loans were made the securities Of
fered as collateral had market value
considerably in excess of the aggregate
advanced against them, their subse-
quent depreciation, it was admitted
was such that the loans could not be
regarded as sound and more intensive
Investigation should have indicated
this.
There is another consideration that
must enter into the reckoning if the
course Of the banks is to be properly
appraised" said one banking official,
who declined to have his named used
THAT is that the banks could not al
low Mr.. Ryan to fail in 1920 during
the declining securities market 1t
was case where, although his account
was overtaxed, the banks had to stand
by him because to do otherwise might
have caused general unloading Of
stocks, the. failure of many brokerage
houses and consequent threat to the
entire financial structure. They might
have closed Mr.. Ryan out with smaller
losses than have been incurred, but in
doing so they would probably have un-
settled other accounts and had to take
losses on a hundred loans instead of
merely on their loans to him. 1t may
have been bad banking at the outset,
but viewed broadly it was the wiser
and safe course to carry on than to
have taken the loss then. It is unfor-
been brought out now when people
have forgotten, but that is Mr.. Ryan's
responsibility.'
See No Liquidation Saturday
Although the stock market was re.
inclined to attribute the selling to the
Ryan bankruptcy proceedings. 1t was
pointed out that the bulk of M. Ryan's
holdings, being held in trust by the
committee of bankers, would not be
thrown upon the market at this time,
particularly in view of the fact that
they had been taken over in November,
1920. Whatever liquidation has taken
place, it is believed, has been done
during period when the public would
least suspect such selling was going on
The bulk Of the collateral Of the
Ryan loans, as disclosed by the bank
Yuptcy schedules, consists of Stutl
Motors, acquired by the noted specu
lator when he engineered the famou.
corner in the stock in the spring O.
1920. Since the stock was thrown of
the Stock Exchange it has had no fire,
market, and it is doubtful If the bank
ers could sell any large amount of tn
collateral at present even if they S,
desired. In June the stock was nomi
nally quoted at IS.
Mr.. Ryan's decision to bring to
climax his financial troubles resulte,
from desire to free himself of per
sonal obligations, including the baker
the butcher and the candlestick maker.
A few of his former close friends an,
associates expressed ignorance Of Iii
future plans, but expressed the belle
that he would soon return to activ
business in the Street and in tim
would pay off large part of his un
secured debts.
One broker who is a member of th
stock Exchange and a creditor of M,
Ryan said he knew on Thursday tha
she bankruptcy petition was going t
De MED the following day He ex
pressed regret concerning the occur
renee, and remarked that Mr.. Rya1
was most generous" in his prosperou
days. He expressed ignorance regard
Ing his future plans.
None of Mr.. Ryan's ATTORNEYS wer
at their down town Offices YESTERDAY
and at the Offices of Allan A. RYAN (
Co, Ill Broadway, it was said that Nh
cyan was not there and no statemen
would be made.