Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-13
REIGN OF ECONOMY.
The New Management of the Union
Switch and Signal Company
Will Reduce the Force.
0NE0F THE NEW BOARD TO RESIGN
In Order to Allow a Man Representing Mr.
Westinghouse Interests to Be
Elected Instead.
ONEOF THE NEW BOARD TO RESIGN
THE TROUBLE BETWEEN EAST AND WEST
Foreign Capitalists Say the Affairs Were Not Run OIL
Business PRINCIPLES.

nal Company has apparently narrowed
down to a division between the local and
Eastern stockholders, and the latter al
present are in the ascendencv. MIR. West
inghouse arrived home from the East YES
terday, but as usual was unapproachable,
and no interview could be secured. As a
result, the public must remain ignorant of
the probable action 10 be taken by him,
though it may be fully informed as to the
other side OF the affair
a typewriter statement was given out
on behalf of Mr.. Westinghouse, in which
be said that he was not prepared to say
more than that the protection of the prop
erty and business of the company and the
other interests of the stockholders are more
to himself and associates than any personal
consideration. He would say nothing more
concerning the trouble in connection with
the Union Switch and Signal Company, but
regarding the Electric Company matters said
have progressed to his entire satisfaction
and iu very short time everything will be
fixed up. He asks little patience on the
part OF those interested in the company.
Opinions of Local Stockholders.
The trouble in the affairs of the Union
Switch aud Signal Company furnishes
fruitful theme for conversation in business
circles and the local stockholders almost
unanimously condemn the action of Mr..
Rowand at the meeting. Brokers and stock
holders, as rule. are wary of discussing the
matter too publicly as they say it will do no
good and may do considerable harm.
William l. Muslin, of George B. Hill &
Co., brokers, however, stated that that firm
is a heavy stockholder in the COM
panv, and he has come in contact with
other stockholders since the trouble, all of
whom roundly condemn the action taken by
Mr.. Rowand. They consider it unfair, in
asmuch as Mr.. Westinghouse has built up
the business of the company, and has made
it what il is. He has put up his own per-
sonal securities to furnish mo ney with which
to run the business. and has in every way
worked for the best interests of the stock
holders both local and foreign.
Under such circumstances, il is argued
that it is not fair to strike a man a foul
blow, and it may result in damaging the
prospects of the company. So far the stock
has not been depressed, but stands quite
steady. Yesterday it opened at Q and closed
at 91s bid.
Eastern Men Justify Themselves.
The Eastern stockholders justify them
selves by saying that it was for the best in
terests of the company that the move was
taken. Extravaganza in the affairs
of the company is alleged, and it is
asserted that men are kept in the Offices
at Swissvale for doing nothing whatever
They say that the Union Switch and
Signal Works are run as a sort of a side
issue to the other Westinghouse interests. and
are kept down in consequence thereof. They
further say that several attempts have been
made to learn something OF the condition OF
the affairs of the company, but all to no avail,
and they took the action at the stockholders
meeting to protect themselves.
Sol Schoyer. Jr., attorney for the Boston cap
italists is authority for the statement that the
heavy end of the stock is owned in the East
and that the move was made in self-protection.
He says that great injustice is done MI Row.
and. That gentleman owns large block of
stock, and great majority of the proxies voted
by him were from Eastern capitalists, who
intended that he should vote them Just as he
did. It j. not explained, however. why Mr..
Rowand voted the stock which was intended
for Mr. Westingh ouse's interests as he did.
One of the men at the head of the movement to
change the management is John q Adams,
brother of Charles Francis Adams. who re-
Gently purchased 1000 shares of Westinghouse
Electric preferred stock.
Deny the Charge of Extravaganza.
The supporters of Mr. Westinghouse deny in
toto the charges of extravaganza, and declare
that the expenses have been greatly reduced
all around. Salaries in the offices have been
cut, and the works were removed to Swissvale
especially to keep down the running expenses
Mr.. Westinghouse has never drawn a cent as
President of the Union Switch and Signal Com
pany, and yet he has given its affairs valuable
time and attention. This it is argued, shows
he done tn
make the business success, and it was just
getting good financial basis when the
whole business was revolutionized by the action
of that meeting
Because of these facts Mr. Westinghouse
friends very bitterly opposed to the new
state of affairs, and they threaten to drag the
matter into court and have the election de-
clared Illegal 1t has been placed in the hands
of Dalzel, Scott d Gordon, Mr.. West
inghouses attorneys, to fully investigate il. Mr..
Schoyer says that the election was thoroughly
legal, and nothing can be done to overthrow
the new board. He says he don't think the
attorneys will try it, as they are fully &C
quainted with the law in that particular.
A New Man to Be Put on the Board.
The Eastern gentlemen are disposed to
Slightly compromise the matter, and PROPOSE
tion will be made to have Westinghouse man
elected on the board to take the place of one
of the Eastern men who will resign at the next
meeting in order to fix things up. The idea is
TO allow the opposition know how the affairs of
the company are going, so that there can be
trouble raised on that score. The Eastern men
say that they willing 20 DO everything in
their power to promote harmony, out are
bound to control affairs
The local people have so far had nothing to
say regarding the proposed compromise, but
it will doubtless not be accepted until
an attempt is made to secure a firm
hold on the board Mr.. Westing-
house is, of course, very anxious because he
stands responsible for all the liabilities of
tie company. The Electric Company is a
debtor to the Switch and Signal Company to
the extent of $50 000 and it is charged that a
part of Mr.. Rowand's scheme is to get control
of the other company by pushing that debt
That however, is such q small amount that
will not not be hard to find. and would
doubtless be subscribed by the deposed direc-
hoBand.
Changes to Be Made at Once.
There Will be a number of changes made in
the management of the company's affairs at
SwIssvale, and it is expected that the office
force will be considerably reduced. The watch
word OF the new management will be economy,
and they declare that the company will be made
to paw what II should.
The old management does not see how the
new one can economic on office people. Here
after the President Will draw salary and an
assistant treasurer Will be needed. 1t is also
asserted that the new board will not be as sue
cessful in q business way as the old one on ac-
count Of the influence of such men as Messrs
Westinghouse and Pitcairn.
Thus the matter stands. and it is very difficult
70 tell how il Will turn out 1t is discussed at
all times in financial circles, and nearly every
Pittsburger is in sympathy with the deposed
board no matter whether connected with the |
company or not There seems to be pride in
PittsbGrg for these immense interests. and
there is an objection to foreign capital control
ling anything in which an almost equal amount
of Pittsburg capital is interested. Mr.. West.
inghouse held consultation with number of