Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1891-05-12
WESTINGHOUSE PLANS.
The Scheme He Has for Saving His E'ec-
trio Light Plant.


II now looks as though the financial
difficulty which has been threatening
the winding up by receiver OF the west
inghouse Electric and Manufacturing
Company. of Pittsburg, has been over
come. Ever since it arose, some months
ago. George Westinghouse, Sr., has been
hard at work with his attorneys, Messrs.
Cravath and Houston, endeavorlng 10
devise some plan which would save the
Company. Many private conferences
have been held, but not until last Thurs
day::was a conclusion reached. ms was
not made public until yesterday.
The proposed plan is the reorganiza-
ton of the Company by syndicate con
sisting of August Belmont, OF New
York: Charles Fairchild, of Boston, and
Brayton Ives, President of the Western
National Bank OF New York
Printed circulars have been prepared
and will be mailed to every stakeholder.
Under the plan the present capital,
$40. 900. 900, Is not to be increased.
The common stockholders are TO sur
render 40 per cent. OF their holdings
(aggregating 50, ,000), and this, Win
the treasury stock unsold, will make
total of S.. 900, 900 of unsold treasury
stock. This, together with the stock
retained by the holders is to be stamped
asserting stock in that no dividend on
the latter shall be paid until the former
has received 7 per cent.
One million dollars of the surrendered
stocks to be converted into preferred
stock. and this, with the 100000 au-
tborized but not issued, will make to-
tai of S4. 600, 900 preferred stock entitled
to 7 per cent. dividend and pro rata
share of all dividends after per cent.
dividends have been paid other out
standing stocks.
Three million dollars Of the preferred
stock is to be issued for money ana In
payment of the Company's debts, $780,
900 to be kept in the treasury for work
ing capital, and the remainder to buy
stock of the United States and the Con-
solidated Electric-Light Companies, If
deemed advisable.
The circular further states that pro-
yided the stockholders assent in the
plan proposed the syndicate and certain
creditors stand ready to take at par
So, 900, 900 of the preferred stock. Mar
cellus Hartley and Henry b. Hyde, OF
New York, and Charles Francis Adams,
of Boston, are also in the syndicate.
Mr.. Westinghouse has expressed him
self as confident OF the success OF the
plan. He left for PittSburg last night.
The advantages of the plan as set
forth in the circular are that the pro-
posed return of the stock will enable
the payment of larger dividends. 1t is
also provided that should the plan fail
the Reorganization Committee shall con-
tinue to act for as many as do assent.
The proposed plan has been executed in
triplicate. One of these with August
Belmont & Co., one at the Office of the
Westinghouse Company in Pittsburg
and the third with Lee, Higginson 81
Co., of Boston. The Mecantile Trust
Company will have charge OF the stock.
A special dispatch from Boston to the
World says: 1T is claimed on behalf OF
the directors and the Committee that if
this plan receives the prompt asg gen
eral support of the stockholders Ehd the
requisite amount of stock is subscribed
the financial difficulty Of the Company
will not only be ended, but its affairs
will be placed upon an exceptionally firm
basis and its business continued on
more extensive scale than heretofore.
Notwithstanding its recent financial diff
culties the Company has kept its factor
les in Pittsburg, Newark and New York
in constant operation, so that there
has been no interruption in the bus
mess. The sales of electrical apparatus
by the Company last year was $4,000
900, and it is expected that during the
coming year. now that the Company
has actively entered the field Of selling
street-car motors, the business will
greatly increase. Under the proposed
plan the Westinghouse Company will
have facilities equal to those of either OF
it's competitors; will be substantially
free from debt and will have an out
standing capital of about $4,000, 900.
The financial strength which the Com
pany will receive by reason OF its new
connections and the high standing OF the
gentlemen who are to enter its Board,
coupled with the exceptional record
which it has made in its mechanical and
electrical departments, should insure
great prosperity to its future opera
tiOns -