Evening star., 1907-10-23

necessary for the Westinghouse company
to look for business, so much was offered
Under these conditions the capital of the
company has been taxed to its utmost.
New money has been scarce. The West
inghouse company has merely overreached
tself-tried to do too much business on
it's available capital. The matter will work
out all right, and, while II is liable to
cause a scare, there is no need for a
fright. 1t might be said that the COM
pany is suffering from over-prosperity."
Westinghouse Officers Statement.
An officer of the Westinghouse Electric
Company said:
They talk about our laying off men,
but l assure you that the output and
shipments of the company for this month
to date are 100000 ahead of the same
period of last year We have plenty Of
orders and business"
The severe decline in Westinghouse
Electric and Manufacturing second pre-
ferred from 54ss on Monday morning to
36 yesterday, forecasted some important
developments. 1t had been known for
several months that the electric company
was in need of funds. The failure of the
stockholders to take up the $5OO0.O0o new
stock at $75 per share a few months ago
naturally disarranged the plans OF the
management for financing its require
ments. 1t had been expected to pay Off
maturing ltans with the proceeds and
the exigencies of the situation in New
York prevented the company from MAX
ing such loans that would carry it over
a period of several months. The situa-
tion became acute within the past few
days. and 1t Is understood that large
loans were called. which, when unpaid,
were liquidated yesterday.
Clearing House Meeting.
Following the close of the Pittsburg
stock exchange the Pittsburg clearing
house association held meeting for the
purpose of making full investigation of
the financial affairs of the Westinghouse
companies to ascertain whether or not
the local banks are warranted in coming
to their assistance. When the meeting ad-
journed at noon Chairman Andrew Long.
cashier of the Exchange National Bank,
made the following statement:
so far developments indicate no trou-
bic in the situation here. We have re-
ceived no application for assistance, but
the members of the association have
agreed to stand together for mutual pro-
lection. The committee has been au-
thorized to take any action deemed neces-
sary. There has been no development
which would indicate that any action is
necessary beyond that Already taken.
We realize that the Westinghouse
Electric and Manufacturing Company, the
W eSClnRnOuSe Mdcnfne company, tUe
Nernst Lamp Company and the Securities
Investment Company will Likely go into
the hands of a receiver. For that rea-
son l believed it the better part of wis
dom to advise the suspension of trading
or the Plttsburg stock exchange.
The Westinghouse Air Brake Company
and the Union Switch and Signal Com
pany are not affected by the present diff
ticulties, nor are the personal affairs of
Mr.. George Westinghouse"
Satisfied With the Outlook.
At the conclusion of the meeting of the
clearing house committee the members
seemed fully satisfied with the outlook
and expressed the belief that the worst
was over. The committee consists of
Long. president of the Exchange
National Bank: F.. H.. Shedding, president
Of the First National Bank; Robert
Wardrop, president of the Peoples Ma
tional Bank: Charles Mcknight, president
of the National Bank OF Western Penn
sylvania; T. H. Given, president of the
Farmers Deposit National Bank; r. b.
Mehon vice president of the Mellon Ma
tional Bank, and w. w. Ramsey, cashier
of the German National Bank.
The assurances given by the commit
tee that there had been no requests for
assistance, and that they were empowered
to take any action necessary to strength
en- weak spots, had favorable effect on
sen ntiment.