The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-10-23
TROUBLES; NONE in NEWARK
PITTSBURG
econtinued from First Pnge.o


Westinghouse Machine Company and
the Nernst Lamp Company. The manu-
featuring companies are in an abso-
lutely solvent condition. The condition
of the Security Investment Company
will in no a affect the Union Switch
and Signal Company and the Westing-
house Air Brake Company. l would
like it explicitly understood that it was
at the request of the Pittsburg Clear
ing House that we have suspended
trading temporarily
The petition for a receiver of the
concerns named, 1t is said, will be made
today. Bankers interested here express
no doubt of pulling the companies
through successfully. The embarrass-
ment of the concerns is attributed to
inability to secure funds on account
of the s~tringency, in the money market.
h amount involved will run up into
the millions.
The Westinghouse Electric and Man
d~facturing Company has more orders
on It's books than 1t can comfortably
handle, according to statements of off,
Gals and bankers conversant with the
affairs of the corporation. So much
business has been offered that 1t did
not have sufficient capital to handle it.
Money has been exceedingly tight, and
all corporations, railroads and ndus-
trial. have had difficulty in securing
sufficient capital to handle the enor-
nous business 1t is possible to secure.
The president of one of the leading
banks said today: THE Westinghouse
Electric Company has had the same
difficulty as that which other great
companies haye met. The business of
the country has been on an enormous
scale. 1t has been almost unnecessary
for the Westinghouse company to look
for business, SO much was offered. I'm
der these conditions he capital of the
country has been taxed to its utmost.
New money has been scarce. The West
inghouse company has merely over
reached itself; tried to do too much
business on its available capital. The
matter will work out all right, and
while it is liable to cause a are, there
is no need for a fright. 1t might be
said that the company is suffering from
pverprosperity."
An officer of the Westinghouse Elec-
trio Company said: "They talk about
our laying off men, but / assure you
that the output and shipments of the
company for this nor to date are
5000, 900 ahead of the same period of
last year. We nav plenty of orders
and business"
The severe decline in Westinghouse
Electric and Manufacturing second.
preferred from 54ss on Monday morn
ing to SO yesterday forecasted some i'm
portant developments. Tt had bsen
known for several months that the
electric company was in need of funds.
The failure of the stockholders to take
up the S. 600, 900 new stock at SIS per
share a few months ago naturally dis
arranged the plans of the management
for financing its requirements. 1t had
been expected to a or maturing
loans with the proceeds, and the ext
gencies of the situation in New York
prevented the company from making
such loans that would carry 1t over a
period of several mouths. The situa-
ton became acute within the past few
DAYS. and it is understood that large
loans were called which, when unpaid,
were ~liquidated yesterday.
Robert Hunter, manager OF the big plant
Of the Westinghouse Electric and Manu-
featuring Company In this city, was shown
a copy Of the first edition of the EVEN.
ING STAR this afternoon containing a dis
patch from Pittsburg to the effect that a
temporary receiver may be asked for the
concern because of the Inability to get
enough ready money for use in the busi-
ness.
After reading the story Mn Hunter re-
marked.
II guess all concerns are In trouble
about getting money now. We cannot say
anything here. Information can be given
only at the general Office in Pittsburg."
Clerks In the big plant who saw the re-
porter and other men in the place. asked
what the trouble was. When told, they
had nothing to say.