Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-10-24
WESTINGHOUSE
CONCERNS IN
DIFFICULTY
RECEIVERS NAMED FOR
PITTSBURG INDUSTRIALS S
Inability to Meet Maturing
Loans Cause Assigned for
Failure of Apparently Pros
porous Companies.

iby Morning journal Special Leased Wire
PittsburR Oct. ga furry in To-
cal circles, caused by the embarrass-
ment of four concerns of the West
inghouse interests was quickly ended
here today by the prompt action OF
the Pittsburg Clearing House associa-
ton and the Pittsburg stock exchange.
Tonight the Westinghouse Electric
and Manufacturing company, the
Westinghouse Machine company and
the Security Investment company, a
holding company for the Westing-
house company. are in the hands of
receiver appointed by Judge Ewing,
Of the United States circuit court A
fourth concern, the Nernst Lamp COM
pany. will be turned over to receiy-
ers in the morning.
The Pittsburg stock exchange,
which was closed promptly this
morning when informed of the situa-
ton by the Pittsburg Clearing House
association, will likely remain closed
tomorrow. This action is taken for
the purpose of preventing an unnec-
essary sacrifice of values by a heavy
liquidation of stocks.
The stringency of the money mar
ket Is alone responsible for the West
inghouse difficulties The sovency Of
the embarrassed companies is not
questioned. The corperns at present
are enjoying the largest amount of
business known in their careers. The
inability to secure funds to pay off
maturing loans caused the embar-
rassment
That the local banks are in good
condition was shown today when it
became public that the Diamond Ma
tional bank had sent yesterday S100,-
600 in gold to New York institutions,
Several other local banks took similar
action.
The following statement was given
TO the Associated Press by George
Westinghouse late today:
When the Pittsburg Clearing
House committee. after full investiga-
tiOn and conference with me, con-
cluded that although the Westing-
house Electric and Manufacturing
company and the Westinghouse Ma
chine company, were solvent, receiver
ships We're advisable as the best
means Of protecting the interests of
all concerned, il was clearly our duty
To follow their friendly advice.
THE necessity for the receiverships
is due solely to the acute financial
stringency and consequent inability 10
renew our maturing paper.
Both the electric company and the
machine company are solvent, and are
doing the largest and most satisfactory
business In their history, and each
company is earning liberal dividends
on its stock and has quick assets sub
stantiaily equal to its liabilities.
Il most confidently believe that
every creditor of each company VIII
be- paid in full, and that with wise
management under the direction OF
the receiver appointed by the court
the properties will be restored to the
stockholders.
THE loans to the Security Invest
mentscompany and myself are secured
by the stocks of the Westinghouse
Manufacturing companies, chietly
stock OF the Electric and Machine
companies, the sudden decline in The
market value OF which on Mono y
and Tuesday OF this week has made u
impossible for US to margin our loG s
/ strongly advise all stockholders ol
such loans to hold their collateral. tne
value of which. | am confident. viii IN
time be sufficient to pay the loans
The sacrifice OF the collateral In the
present condition Of the market can
benefit no one. 4 policy OF patience
and forbearance is what the situation
requires"