New-York tribune., 1907-12-20
d gESTINGHOUSE ASSETS
AUDITED AT S87,482, ,S84.
ronuection scith General Electric
Com panu Confirmed.

/ ~,s report Of Haskins & Sells of their audit of
- hoois aaG accounts of the Westinghouse Elec-
=. and Manufacturing Company vas made public
E~-sr5sy by the receivers Of Tie company. The
- sheet a. Of October q. 1907 shows the
- of thc property and pisrI as s2l.5ls sc: In
4 ,,,erts so I94. .45S; working assets SI79l2 066
! =. asSets Sle5I7.6I3; other accounts and nctes
fssysbIe S5274.9g3 and contingent assets g aSs-
H.. making The total assets @7.4S2SSL The liablli-
- o-e stated as S-7.sSSl00 capital stock 81 IsigJO
- se5:. x60aaoal : per cent collateral notes.
rs per cent collateral notes. Sl3 Sol 352 cur
=. ua.Ttie>, S.5595I5 subscriptions. s2ll $50 re
=. far ,5Ussihle shortages IN inventories. and
B = eos sss contingent liabilities. the addition Of
- ana loss surplus OF sli.ss4,0o2 bringing the
-, liz hitles 70 balance with the total assets
- i-eYn Of Patents S5S9S SIS under the head
= .I,ro,s.rty and Plant the accountants report
81 = reuresents the cost to the company Of pat
.s which have been purchased outright All pat
4 :, x,,enses ana ali legal expenses in connection
rsb patents are charged against operating ex-
- rs is also the cost Of all patents developed
: e.. eornpany's plants Confirmation Of the gen
Il IMPRESSION that close relations exist between
a. Vesunshouse company and the General Elec-
-. ronpany is found in the following paragraph
/ q. tie report:
The patent agreement between the company and
nt General Electric Company provides THAI each
~ .Se Ivo companies shall be licensed under the
patents q me otneT; GTo psGriS!oH Is mace 'o %
~ Tvo com paias and for the adjustment Of royal
heF
eee S-ctfve uses u the patents subject TO the
sgreement
pssJ estate and buildings OF the company
.-r5ed OF the cost Ss44S $50. less certain
minor charges specifically made for deprecia ton
~hs charges which have been made to operating
.v,s-ses for maintenance of the buildings and
sounds fo- alterations and repairs o. buildings
s,6 for 6epreciacion have during the five years
ended March s.. 1871 amounted 70 more than per
cpt On the average book value. rate which the
,esorntants deem liberal
MACHINERY. tools and fixtures are carried at cost
81 So Investments in capital stock OF sub
es;sry manufacturing companies in the United
sstes 2re carried AZ 81 24 727. capital stocks and
|sshenrures Ct foreign Westinghouse companies are
rsrsd a cost SIC 4s7 sss and miscellaneous invest
nsnts al S. 81 $50. among the latter being stocks
,,s bo1ds carried AZ S401Sz which the report says.
s-eurssert principally securities which have been
,spep in settlement OF accounts and notes reoelV-
abs"
IN many eases the accounts and notes SO settled
bas bes, 6zprec3ated to z nominal valuation and
,be onosrs Of the company say that in their opin-
h., The amount al which these stocks and bonds
sr now carried is conservative and VIII practically
Be realized from
rhe assets. Raw Materials and Supplies s429S,-
rs" and Finished Parts and Completed Ap-
ns-stus. S,az sss'' the accountants say CONSIDER
,,e ths oompany as going concern, are conserve
tfvsly vsIueT and properly stated in the balance
sheez As 10 the item. Work in Progress in Fac
,o-.s ss u 1ee" they say that view Of the ac-
,x,oe n m es of raw materials and supplies
rhich the company bought during the period De-
rVeen Aprl / 1905 when the last inventory was
taken and z month OF so ago q discrepancy OF
from 10 re- cent might be developed II an IN
r.ntory of work in progress were TO be taken now
rber therefo>e recommend an increase in the re-
serve for possible shortages in inventories from
ye e5s 10 Sss7 $50 which would be per cent OF the
book value Of the account They advise the recelV-
-s rhei IN their opinion the latter would be 3ust-
sed IN taking over into their accounts all OF the
EorliDe asses al the book values without IN
,urrine the delay and expense which would be
,ccastored BY the taking OF physical inventory
+ these accounts provided the reserve agalnst The
york in progress account be Increased as sng-
eSted.
a. amounts due from the Westinghouse Ma
stne Company and the Westinghouse Lamp Com
snv the report says. VIII ultimately be realized
! fun as viii the notes Of the Nernst Lamp Com
,snx n is estimated that the company will lcse
.s-y,s.n q and 20 per cent Of the due from
'o1her companies In the hands Of receivers, sl5o2
no accounts receivable not Immediately coIlecti-
ae in liquidation, etc, s1S3 0g7. The accountants
n give 10 information, they say. as 70 the value
Z tbe notes Of the Security Investment Company
r TIE European Westinghouse companies
The consolidated and condensed income account
# the Nestinghouse Electric and Manufacturing
,ar,nsnv and subsidiary concerns IN the United
ststes during the seven years and seven months
nded October s.. 1861. shows average annual sales
4 So sss557: operating expenses sz0561S4s' net
.srnines SSseI575, and net income apPhcapIe 70
interest and dividends. s.. 1915.
The SURPLUS accoUnI shows payment Of s-noD