Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-10-24
SHARP FURRY in PITTSBURC
-Four Westinghouse Corporations GO
Into Hands of Receiver.
ALL ARE PERFECTLY SOLVENT
Suspension Due TO Inability 60 RE-
new LOans---stOck Exchange
is Closed for the
Day.

PITTsBURG, Pa. oct. PA furry in
local financial circles, caused by the en-
barrassment Of four concerns of the West
lnghouse interests, was quickly ended here
today by the prompt action of the Pitts
burg Clearing House association and the
Pittsburg Stock exchange.
Tonight the Westinghouse Electric and
Manufacturing company, the Westinghouse
Machine company and the Security Invest
ment company. a holding company for the
Westinghouse interests are in the hands
of a receiver. appointed by Judge Ewing
of the United States circuit court. a
fourth concern, the Nernst Lamp company,
will be turned over to receivers in the
morning.
The Pittsburg Stock exchange, which was
closed promptly this morning when in
formed of the situation by the Pittsburg
Clearing House association. will likely re-
main closed tomorrow. This action is
taken for the purpose of preventing an
unnecessary sacrifice Of values by a heavy
! liquidation of stocks.
The stringency of the money market is
alone responsible for the Westinghouse
difficulties The solvency of the embar-
concerns at present are enjoying the larg-
est amount of business known in their
career The inability to secure funds to
pay off maturing loans caused the en-
barrassment.
That the local banks are in good CON
dition was shown today when 10 became
public that the Diamond National bank
had sent yesterday 100000 in gold TO New
York institutions Several other local
banks took similar action.
stock Exchange CLOSED.
The greatest sensation in local financial
circles in years and one wholly unexpected.
occurred today when the Pittsburg Stock
exchange suspended operations for the day,
announcing that the Security Investment
company. a concern formed for the pur
pose of handling the affairs of the West
inghouse interests, was slightly embar
rassed on account OF the money market
stringency.
Statements issued by the president and
secretary OF the Pittsburg Stock exchange
and the chairman OF the clearing house
association at noon made light of the mat
ter and expressed confidence in the local
| financial situation.
Following a meeting of several hours the
]
in Pittsburg was in trouble. None had
asked for any assistance and should any
institution request aid. It would be rem
d4red Immediately.
The Security Investment company's en-
barrassament win AFFECT temporarily at
least the following Westinghouse con-
Germs: The Westinghouse Electric and
Manufacturing company, the Westinghouse
Machine company and Nernst Lamp com
| pany.
J The trouble of the involved companies is
attributed wholly to insufficient capital to
carry on rapidly increasing business.
! VT is reported that the Westinghouse COM
panies involved will ask that receiver be
appointed for three concerns concerned.
The Westinghouse Air Brake company
and the Union Switch and Signal company
i are in on way involved in the trouble.
The personal interests OF MI. George
! Westinghouse are also not affected.
/ A second reassuTing statement was issued
this afternoon by the Clearing House asso-
citation.
Pittsburg I'm UprOhr.
Pittsburg financial circles were thrown
into an uproar at the opening Of business
today when Secretary c. J. Holman mado
/ the following announcement:
At the request of the Pittsburg clearing
house and at the suggestion of the MEM
! bers and board Of directors the Pittsburg
Stock exchange has been closed for the
day.
Immediately following this President r.
c. Hall issued a statement reading as fol-
lows:
: The Security Investment company finds
= itself involved. THIS will necessitate tenn
porary suspension or receivership of the
Westinghouse Electric company and the
Westinghouse Machine company and the
/ ba ma
| ing companies are in an absolutely solvent
| condition. The condition of the Security
! Investment company will I'm no way affect
| the Union Switch and Signal company and
! the Westinghouse Airbrake company would
4 like IL explicitly understood that Il was at
that We have suspended trading tempo
! rarily.