The daily banner. (Cambridge, Md.) 1897-2008, 1907-10-24
P|TTSDUAC SHOCKED
Westinghouse Electric Crippled
For Want of Cash.
COURT APPOINTS RECEIVERS

Company, Said to Be Solvent Can
not Secure Cash to Pay OFF Matur-
ing Leans-Steek Exchange Closed
to Prevent Sacrifice of Securities.
Pit;sburg. Oct PA furry in local
financial circles, caused by the en-.
barrassment OF foar concerns OF the
Westinghouse interests, was quickly
ended here by the prompt action OF
the Pittsburg Clearing House Associa-
ton and the Pittsburg Stock Elk
change.
The Westinghouse Electric and Man
ufacturing company. the WESTINGHOUSE
Machine company and the Security
Investment company, a holding COM
pany for the Westinghouse interests,
are in the hands of receivers appoint
ed by Judge Ewing. OF the United
States circuit court. A fourth concern.
the Nernst Lamp company, viii be
turned over to receivers.
The Pittsburs Stock Exchange.
which was closed promptly when In
formed of the situation by the Pitts
burg Clearing House Association, will
likely remain closed. This action is
taken for the purpose Of preventing
an unnecessary sacrifice Of values by
q heavy liquidation of stocks.
Statements issued by George West
inghouse, prominent bankers, officers
Of the Stock Exchange and the Clear
ing House committee show conclusive
ly that tho financial situation here is
sound and there 10 no danger.
The severe stringency Of the money
market Is alone responsible for the
westinghouse difficulties. The sol,
vency of the embarrassed companies
is not questioned. The concerns at
present are enjoying the largest
amount of business in their career
Inability to secure funds to pay off
maturing loans caused the embarrass
ment.
The capitalization Of the Westing
house Electric company is: First pre-
ferred stock, $4,00O,0o0; second pre-
ferred, authorized, $46.OOO.000; out
standing. $21,689.65O; debenture per
cent. bonds 1918. authorized $780,
900; outstanding. $2.27S.O00; converti-
BILE sinking fund 5 per cent bonds
1881, convertible into stock after 1910,
authorized. s25.O00.00O; outstanding,
$15,000.O00.
Senator Knox. of Pennsylvania, in
a telephone conversation from Wash
ington with Secretary of the Treas
ury Cortelyou at New York, requested
that the government deposits in Pitts
burg national banks be increased. Ad-
vices were received here that the sec
rotary had arranged to place addi
tional funds in local institutions. The
amount, however. is not known.
That the local banks are in good
condition was shown when it became
public the Diamond National bank had
sent Tuesday 100000 in gold to New
York institutions. Several other 10
cal banks took similar action.
The embarrassment of the WestinS
house companies was wholly une&
pected and came az a surprise
Receivers For Pittsburg Trust Co.
Pittsburg. Oct. 24-In United States
court, H. S. A. Stewart and William L.
Abbott were appointed receivers for
the Iron City Trust company. The pa
pers filed in court represent the COM
pany as having assets exceeding $4.-
900, 900, and liabilities to depositors of
about $1,700.000. Attorneys for the
the trust company said: "There seems
to be no doubt of the solvency of the
company and of its ability to pay de-
positors in full This action was pre-
cipitated by the appointment of re-
ceivers for the various Westinghouse
interests, and was decided upon by the
board Of directors as the best methods
Of preserving the interests OF deposit
tors and stockholders"
Colorado Bank Fails
Reno. New, Oct. "a. - The State
Bank 4 Trust company, with head
quarters ut Carson and branches at
Goldfeld Tonopah. Manhattan and
Blair, closed its doors. A state bank
Examiner is IN charge, The difficulty
was due to inability to realize on
stocks placed as security for $500
900 loan made to the Sullivan Trust
company last year. A statement, is
sued by the State Bank & Trust com
pany, assigns labor troubles and drain
on deposits as reasons for the suspen-
sion. and declares that depositors will
be paid dollar for dollar.
Body Cut In Two BY Trolley Car.
Chester. Pa Oct 24.-Solomon
Freidkin, a, meat dealer. OF this city,
was struck by trolley car and in
stantly killed. Freidkin was crossing
the West Seventh street line at Little
Market street. when the car struck
his wagon. overturning the vehicle
FreidlSin was thrown from the wagon
and landed directly in front of the car
which passed over him. His body was
severed in twain.