Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-07-09
DOUBLED ITS SHARES
Inc Westinghouse Electric and Man.
ufacturing Co. Increases Its
Stock to S1O,OOO,OOO.
NOT A DISSENTING VOTE WAS CAST.
A Long Statement Showing the Financial
Condition and Giving the Reasons
for the Addition.
NOT A DISSENTING VOTE WAS SCAST.
GROWTH OF THEBUSINESS REQUIRED IT.
A Surplus Of 81, 1865 on Hand With Biz PrOfts
in the Railway Department

" eSti1ghouse building yesterday. 1nt
stockholders Of the Westinghouse Electric
Company unanimously passed the resolution
authorizing the transfer of the stock from the
former company to the Westinghouse Elee'
trio and Manufacturing Company. There
were 100, 600 shares all told transferred. I'm
mediately afterward the same stockholders
who also compose the latter company,
passed another resolution to increase the
capital stock from s., 1000, 600 to $4,000, ,oO0
1t was expected by some that consider
able opposition would be offered to the pro.
posed increase. but after Mr.. Westinghouse
had finished his statement giving his rea
sons for it and the financial condition of the
company, there was not a sigh or kick
but the increase was voted for at once and
the agony was over.
HELPED IT ALONG.
George Westinghouse, Jr., will take
81. .25O.O 900 of the stock himself, and his
action probably had much to do to reassure
any waverIng shareholder.
The stock will be issued in this manner:
1t is proposed to issue to each stockholder of
record on this date an assignable right to sub
scribe on or before August !, 1890. for one-half
share of stock for each share now standing in
his name on the books of the company. at $40
per share this price being determined by dis
Iribution an allowance from the surplus
earnings. Of this price one-quarter will be
payable on August J. one-Quarter September l,
one-quarter October l and one-quarter No
vember / The board believe 1t to be to the
pecuniary interest of each stockholder TO sub
scribe for his amount of stock, and thereby
aid in increasing the earning capacity of the
company.
There were about 80 stockholders at the
meeting, but all interested in the company
were represented. Before the resolution was
passed Mr.. George Westinghouse read the fol-
lowing hattering financial statement:
FLATTERING STATEMENT.
"PTTTsBURG, July s, 1890.
ITO the Stockholders of the Westinghouse Elec-
trio and Manufacturing Company.
"GENTLEMEN-This company has now &C.
Quired the outstanding shares of the Westing-
house Electric Company, and by an action of a
meeting of the stockholders of that company
held July :. 1890, has succeeded to its property
and business.
THAT company began the manufacture and
sale of continuous current apparatus for incan-
descent lighting in 1856, which apparatus, how
ever, could be commercially successful only
for isolated lighting and central stations with
in moderate limits. Its capital was fixed at
5000 COO, with the expectation that that
amount would meet the requirements of the
business.
"For the purpose of supplying apparatus for
the distribution of electric light and power from
central stations over large areas. it took up the
alternating current system IN 1885, up to which
time none of the companies engaged in the bus
lness in the United States had considered that
system commercially practicable, and it thus
entered field entirely its own.
FORTIFIED ITSELF.
ITO protect its business and successfully de-
tend itself in any litigation that might be forced
upon it BY its competitors. the company found
it desirable 20 fortify its patent position and to
that end acquired the control of the Consoli-
dated Electric Lighting Company and the
United States Electric Lighting Company both
OF New York. The Consolidated company was
the successor of the Electro-Dynamlc Light
Company of New Y ork, the first company or
ganized in the United States for the manufact-
ure and sale of electric incandescenJ lamps,
and the owner of large number of patents of
date prior to those upon which rival companies
were depending The company purchased
nearly one-half of the capital stock of the Con-
solidated company and subsequently leased it
at rental equal to + per cent per annum on its
capital of s.. .000, 600.
THE United States Company was organized
In 1875, few weeks after the Electro-Dynamic
Company, and was the successor of the Oldest
company IN the United States for the manu-
facture of electric power apparatus. and also
owned large number of early patents cover
ing every necessary detail of lighting and
power plants. The company purchased $780, 600
of a total of 81, sou 600 capital stock of the
United States Company. and leased its patents
and business at a rental which will ultimately
equal per cent per annum on its capital stock.
panies had large and dOurIshing businesses and
manufacturing plants, which were also acquired
by the leases
ITS PRESENT POWER.
These purchases have greatly increased the
and influence of the company. which
now owns and controls 632 patents relating to
electric lighting and power, and has now pend
ing over 200 applications for patents for inven-
tions necessary or desirable to the manufacture
and operations of the latest improved forms of
apparatus.
The success of the company is best illus
trated by the report of 1889, already submitted.
during which year the sale of the company and
its leased companies amounted to -, ,362, ll5 %,
yielding net profit of SIS, S07 ST. after paying
very heavy extraordinary charges incident to
new business of this character.
"No branch of the electric business yields
such large profits as the railway business. and
the company has already entered this field. 1t
lection to enable it to carry on the manufacture
and sale of such appliances. and during the
last three years has given close attention to the
details of this class of apparatus; but it has
Trained from selling the same until it could
supply its customers with efficient and reliable
equipments. The experience of users with the
Qe1ectlVe apparatus l6f6IO1Of6 ruSneO out by
other companies fully justites the wisdom of
the company's action in this respect.
SOME RECENT ORDERS.
To-day the company is In receipt of orders
and INQUIRIES from all parts of the country.
md has actually completed contracts for
lie equipment of Il railways aggregating
800 OQQ. these orders having been received dur
ug the last 60 days The volume of business
offering to the company in this line indicates
that its total output from the lst of July this
year to the IsT of July 1881, may be doubled by
tbe provision of adequate capital for carrying
On this increased business, and with more than
4 corresponding increase in the returns. To
enable the management to reap the greatest
profit, the company should be placed IN
position by It's stockholders TO do its business
on cash basis and it should have available
sufficient capital to take advantage of all
business offered to it.
The necessity for large capital for gen.
aral electric business has been shown by the
action OF its two competitors; the Thomson
houston Company having authority to issue
OF which Sil5OO,0OO have already
oeen SOLD; while the Edison General Company
mas an issued capital of Sl2, 100000, which. ac-
oordlng to its report to the Listing Committee
oil the New y ork Stock Exchange is Still in
suneient to carry on an extended business.
THE INCREASE RECOMMENDED.
''Ihe Board Of Directors are of the opinion |
that total increase in the capital stock of not
ess than 100000 should now be authorized. |
% oroer 70 provide for the future requirements |
Of the Company; So, 3,0OO 900 of which NAV he |
ssueu Dy Vhe directors from time to time as in |
their judgment may be deemed best. and the |
ssue OF the remaining 81 OOO, 600 to be subject to
me SpprogaI ,S oi Special meeting of the stock
holders called Tor that purpose
THE board believed thar eTraat Droe+ ,ro,,1d
accrue 70 the company by securing foreign pat
snts on me more important of tile inventions
exploited by 1t In this country This nolicy ra.
'ulteg IN an order from the Metropolitan Elec-
nc Supply company lIm of London for a
central station of 10000 lights canacitv which
las since been increased to 5000 The station
S now In operation with entire satisfaction and |
8 the most Complete and perfect central Starion
2 Europe: 9T a company known as the Westing.
in London to operate these natents
nd this company has received in payment tor