New-York tribune., 1907-10-24
WESTINGHOUSE CRISIS.
Continued from first page


prepared to take immediate action to protect ,ct
fbe interests Of the city and no alarm need oe
felt
Paul d Cravath of New York, attorney for
.he Westinghouse interests. formerly attorney
~orJP Morgan who came TO Pittsburg to-day
IN the interest Of tho Westinghouse Company,
said:
know the situation Of the Westinghouse
prlectric and Manufacturing E Company ana nave
NOT the slightest doubt that. whatever happens
the creditors Of every class WIZ De pala IN IN IN
Patience and forbearance on the part OF the
creditors viii insure the early restoration OF the
property TO the stockholders.
no OTHER FINANCIAL WEAKNESS,
H c. McEldowney, president Of the Union
Trust Company one Of the strongest financial
institutions in the country. said tonight regard
ing the situation:
7 absolutely know of other weakness of
any kind I'm Ptrsburg. outside Of the Westlng-
house interests, and one otiitf small company
Otherwise the financial situation. we believe, Is
absolutely sound. The Westinghouse interests
were doing q large part OF u1siT business IN New
York and therefore their trouble is traceable
more or less 70 the New York situation AS a
mere precautionary measure, the Secretary of
the Treasury has agreed to place funds with the
various depositaries Of Pittsburg
The most prominent ard conservative Pitts
hnrg bankers agree vith MI McEldowney that
beyond the Westinghouse recefverships there IS
M trouble 81. Pittsburg and that had this not
occurred Pletsburs would not have been affected
hy the New York disturbance They 90 not
Iook for further trouble but during numerous
meetings to-day they made every preparation 70
aandle the situation 50 that serious results viii
not follow
It is insisted that the Westinghouse receiver
thips are really not Pittsburg failures. prac-
tlcallv all of the debts are held in other parts
Of the country and that, so far Pttsburg Is
concerned II viii not be seriously affected. The
receiverslips VIII permit the continued opera
ton Of the great plants, where eighteen thou
sand men and women are now employed. The
concerns employ about thirty thousand when
working 10 full capacity
CAUSE OF THE TROUBLE.
The primary cause Of the receiverships was
the aggressive policy Of Mr.. Westinghouse in
irving 10 provide manufacturing capacity 10
meet the wonderful buying demand Of this and
other countries. The business Of the electric
and machine companies has grown heavily in
the last ten years. and in no one year I'm that
time have the companies failed 10 erect large
plants to take care Of increased orders Build
ings have just been completed at East Pitts
burg which cost more than SI000OO0, All
this addition capacity has been continued
without close attention 20 the financial situa-
ton, ard the Gght money market OF tle last
Few months has prevented the companies from
obtaining such loans as their increasing busi-
ness demanded.
Oblgations incurred months ago for new
bulldogs and improvements have been coming
due the last few weeks, and on Saturday it
was realized that radical action would he neces-
sary to preserve the properties for the stock
holders Affairs were placed in the hands Of
Judge James II. Reed. and the arrangements
for the receiverships were made by him. The
receivers took charge to-day. disinterested
bankers, to restore the situation 80 its normal
condition.
The quick assets of the Westinghouse Electric
and Manufacturing Company given out by
banking interests as s29000.o00 and accounts
and bills payable as s13,000,0G0. The Securities
Investment Company has 100000 capital and