Stutz President Wins $631,200 on Stock; Got Option for Taking Charge of Company

The New York Times
24 December 1925

F. E. Moskovics, President of the Stutz Motor Car Company of America, Inc., who yielded to Charles M. Schwab's persuasion to take charge of the company when the latter got control of it if he were allowed to buy 10 per cent. of the capital stock at the prevailing market price of $10 a share, has profited by the transaction to the extent of $631,200 in the last four and one-half months.

Mr. Schwab got control of Stutz after Allan A. Ryan lost it in his unsuccessful effort to corner the market in that stock. Mr. Moskovics, an experienced automotive executive, a Vice President of the Nordyke and Marmon Company, was offered a free hand in the management of the company if he would assume the Presidency. The company's stock, barred from the Stock Exchange but traded in on the Curb, was selling then at $10 a share, but had been down as low as $6. Mr. Moskovics stipulation was approved by Mr. Schwab, who released 10 per cent. of his holdings to the executive, and a letter was written to every stockholder asking each to release a similar amount on an option good until Feb. 15, 1927. Nearly every stockholder agreed. The capital stock issue was 263,000 shares. Mr. Moskovics got 26,300 shares.

This was in August. Stutz did not move during the Fall boom in motor issues. Generally the stock remained under 20, but in the last three weeks, after the motor boom seemed completed, Stutz began to show life. The company's affairs were showing improvement and new models of cars designed by Mr. Moskovics were reported to have found a ready sale. Stutz stock moved upward to 28 last Saturday. Since then it has reached 36. Yesterday's closing was 34.

At the latter price Mr. Moskovics's holdings show a profit of $24 a share on 26,300 shares, a total of $631,200, with his option still more than a year to go.