Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1907-10-26
WESTINGHOUSE FEELS SQUEEZE


The panic that has been threaten ing
New York for week or more broke in
all furry last Wednesday Many prom
inent banking houses have closed their
| doors and others are on the verge of
bankruptcy. Judging from the follow
ing dispatch the Westinghouse people
are among the concerns who have gone
TO the wall:
Pittsburg, Oct. 23.-The Pittsburg
Stock exchange did not open this morn
ing, the members deeming it advisable
that the exchange remain closed tenn
porarily owing to the demoralized feel
ing of the Westinghouse Electric.
Pittsburg financial circles were thrown
into an uproar at the opening of bust
ness today when Secretary c, j. Hol-
man made the following announce.
ment:
At the request of the Pittsburg clear
ing house and at the suggestion of the
members and board of directors the
Pittsburg Stock Exchange has been clos
ed for the day.
Immediately following this President
r. c. Hall issued a statement reading as
follows:
The Security Investment company
finds itselfinyolved. This will necessi-
tate temporary suspension or receiver
ship of the Westinghouse Electric com
pany and the Westinghouse Machine
company and the Nerhst Lamp company.
The manufacturing companies are in an
absolutely solvent condition. The con-
dition of the Security Investment Co.
will in no way affect the Union Switch
and Signal company and the Westing-
house Airbrake company would like it
understood that it was at the request of
the Pittsburg clearing house that we
haye suspended trading temporarily.
The petition for receiver of the
concerns named, it is said, will be made
today. Bankers interested here express
no doubt of pulling the companies out
successfully. The embarrassment of
the concerns is attributed to inability to
secure funds on account of the string
ency in the money market. The
amount involved will run up into the
millions.
The following statement was given out
by George Westinghouse
<"When the Pttsburg clearing house
committee, after full investigation and
conference with me, concluded that,
although the Westinghouse Electric aud
Manufacturing company and the West
vent, receiverships were advisable as
the best means Of protecting the inter
ests of all concerned, it was clearly our
duty to follow their friendly advice.
"The necessity for the receiverships
is duo so!o.y &c :hc ac:c:! financial
stringency and consequent inability to
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 COM
pany is earning liberal dividends on its
stock and has quick assets substantially
equal to its liabilities.
IL most confidently believe that every
creditor Of each company will 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 stock kholders.
The loans to the Security Investment
company and myself are secured by the
stocks of the Westinghouse Manufactur-
ing companies, chiefly stock of the
electric and machine companies, the
sudden decline in the market yalce of
which on Monday and Tuesday of this
week has made it impossible for us to
margin our loans. | strongly advise all
stockholders of such loans to hold their
collateral, the value of which | am
confident will IN time be sufficient to
paw the loans. The sacrifice of the
collateral in the present condition
of the market can benefit no one. A
policy of patience and forbearance, ID
" hst the situation requires"