Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-01-16
A RECOURSE TO LAW
By Three of the Creditors of Various
Westinghouse Interests.
HOW SUITS CANE TO BE BROUGHT.
Checks Returned by the Advisory Com
mittee Caused the Distrust.
SOME OF THE TALK ABOUT THE AFFAIR

DUMB VI I'M IAbh AbUUT 1HE AFFAIR
1t has been known for over month that
the Westinghouse interests have been in a
bad way financially, but every effort has
been made to avoid adding to the embarrass-
ment by undue publicity and to allow the
companies time in which to get on their
feet.
For this reason no action was taken against
the companies until yesterday, when the
following suits were entered:
The Keystone National Bank Of Erie. against
the Westinghouse Electric and Manufacturing
Company, suit on note for s., 00O. 81 81 pro-
test fees and interest from January s, 1891. The
note was originally given TO the North Amer
ican Construction Company. on December S
1890 1. passed into the hands of the Erie Citv
Iron Works, and then to the bank. Cassidy &
Richardson are the attorneys for the bank.
The second suit was entered by Park Brothers
& Co., limited, against the Westinghouse Elec-
trio and Construction Company for SSH G7 with
interest from January l. 1891, a suit on an &C.
count. D. I. Watson is she attorney for the
plaintiffs. The third SUIT was entered by R. d.
Nuttali & Co. against the Westinghouse EIec-
tric and Manufacturing Company for 81 S96 g.
with interest from January !. 1891, suit on an
account running from August 20 to December
81. O. S. Richardson is the attorney for the
plaintiff.
Cause of a Recourse to the Courts.
The suits were doubtless precipitated by the
announcement yesterday of a statement that
Chairman John Walker, of the committee hav-
ing in charge the fund of S546, 600 raised to as
sist in tidng the company over the difficulties.
had returned the checks unused. considering it
trNr frl,ro oh
an amount at the company's disposal. Many of
the creditors are of the opinion that this ac-
ton was bas;y, inasmuch as Mr.. Westing.
house is i'll New York. and has been for two
days trying TO get assistance from that quarter
The majority of the local creditors are very
lenient. in order that these vast interests may
be retained in Pittsburg. 1t was mainly for
this reason that matters concerning the real
condition of the companies were kept very
quiet and. though there was always discussion
IN financial circles, il was kept from the gaze of
the outside world. Their Pittsburg creditors
had combined and were working together in
the interest of the different companies as well
a. in their own interests.
At meeting committee was appointed
which IS composed of the following gentlemen:
W. B. Mclean J. b. Hanes. Jr. and w. j.
crawford meeting has been called for to-
morrow afternoon. at which all the local credi-
tors OF the company are expected to be present
This committee will In the mean time iuyesti-
gate the affairs of the company as far as posi-
bic, and make a report at the meeting. They
EldA also on eE a Dlan DIV winch the creditors
may get their money, or to help the company
along for the present.
Some were surprised that anyone should
enter suit against any of the company lust for
ths present, and although there was a general
dismClinatIon to talk on the subject, one of the
creditors said Yesterday afternoon: THAT is
madness, as II will cause more trouble than we
would otherwise have had. After such action
has been taken. it would not be surprising il
an assignment would be made and we would
then all have TO take our chances. That is GER
1Nr fhsn n0frrc 41aarT I
man would pursue under the circumstances
Had the Advisory Committee but held off a
lew days longer, the whole matter might have
been fixed up, as we were getting along nicely"
This same gentleman declared that 1t is only
the Westinghouse Electric and Manufacturing
Company that is in bad condition and all the
other companies are all right
Guarding Against Future Accidents.
In the Philadelphia Company there was some
discussion caused by the allegation that certain
officers of the company were speculating in its
stocks. and that others had been interested in
contracts with the company. To get around
this matter the following section has been
added TO the new bylaws, which, it is believed
Will be adopted at to-day's meeting of stock
holders:
"AlI persons whose compensation consists of
a fixed salary, shall devote their whole time
and attention to the interests of the company.
unless exempted theTefrom by the President or
the Board of Directors
No officer, agent or employe OF the company
receiving regular compensation, aud en-
plOyed IN the procurement inspection of
supplies of materials for the company's use or
in supeTintending OF inspecting any work for
the company shall be contractor, or inter-
ested IN any contract arrangement, or engage
ment for furnishing such supplies and ma
terials for doing such work.
Nv hlle the purchase of the company's shares
for investment. by persons connected with the
company, will be regarded with favor specula-
lions in the shares of the company will not be
tolerated.
No officer or agent shall be entitled to re-
ceIve compensation until his appointment is
confirmed by the Board of Directors OF Execu-
tive Committee"
Mr.. " Nestinghouse is expected 10 return in
time to attend the meeting of the Philadelphia
Company to-day
Changes in the Company's Officers
The changes in the by laws of the Phlladel-
phia Company will also necessltate some
changes in the present offices. In the absence
OF The Secretary the Assistant Treasurer will
act as Secretary The Office of General Aren't
will be merged into that of General Contract
ing Agent. Mr.. a. Cummings has been slated
for the new Office of Land Agent. The present
IncumDents of the other offices will remain as
at present Secretary w. D. Uptergratf was
asked yesterday the meaning of the paragraph
in the new bylaws prohibiting agents or Others
interested in the company acting as contractors
IN furnishing supplies.
oh, that was put in to guard against any
L Stockholders
are merely looking out for all such thincsn
was answered.
But, Mr.. UptergrafT, has there been such
business going on as the bylaws would imply?'
There have been some rumors around the
building to that effect" and with this answer
Mr. Uptergraf would talk no more about the
matter.
Mr. Bannister declared he was in no position
TO speak on the affairs of the company or what
would be the plans for the future.
The committee of stockholders appointed to
arrange for the selling of some of the treas
ury stock OF the Allegheny County Light Com
pany met yesterday in the company's rooms in
the Westinghouse building. The company was
authorized short time ago to issue $500 OcO
,, worth OF stock but up to yesterday none of it
had oeen sold The company wishes to
sell SlO0OUO or $50 600 worth of the stock to pay
of debts.
Some of the Stock Subscribed For.
Mr.. I. Sproul, who was seen shortly after the
meeting yesterday. SAID that the YEARLY net
earnings of the company are $4,000. and it was
thought that by selling 500, 600 worth of stock
the debt could be paid of. He was asked what
part Of the Sl0O,cO0 had been subscribed, and
replied: "A considerable portion"
Another stockholder who came ont of ths
meeting room was heard to say to his friend. |
The question is whether that amount will tide |
them over or no" showing thattnere was some
discussion on the matter.
- stated above. there was general disncli- |
nation to be quoted, but there was through the |
day much talk on all sides about the situation.
From one of the most conservative of city |
bankers who well posted and still hoped to |
see the industries 60 on upon more secure /
basis, the following view was obtained: 80 |
long as there was chance that the present sit |
uatlon might be tided over. there has been /
very little criticism of the details cf the organ
lzauon and management OF the electric COM
pany Everybody has been hoping that 1t |
might pull through, buG the full Investigation |
o. lss analrs gave no warrant to the advisory |