The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1907-10-29
WESTINGHOUSE SUsPENDs 1
Three Great Electric Concerns Put
in the Hands of Receivers.
Temporary Closing of Pittsburg Stock
Exchange Precedes Action by Fed
eral Court--Work to Go On.


Pittsburg. Tho financial disturb
ance in New York was reflected in
Pittsburg by the appointment Of re-
ceivers for three of the big companies
of the Westinghouse interests. These
are the Westinghouse Electric and
Manufacturing Company, the West
inghouse Machine Company and the
Securities Investment Company, in
volving perhaps 100000, 900. 1t is
| understood a. receiver will be asked
for the Nernst Lamp Company, an
other Westinghouse concern. Other
wise the financial situation in Pitts
burg is declared to be absolutely
sound.
At the request of the Pittsburg
Clearing House committee business
was suspended on the Pittsburg Stock
Exchange, because of fear that wild
and premature rumors regarding the
Westinghouse trouble might extend
to the other local corporations and
banks.
For fear that exaggeration of the
Westinghouse difficulty might work
further injury, Pittsburg banks
| thought it wise to prepare for any
future emergencies. Through Sena-
tor p. c. Knox, himself Pittsburg
banker, they obtained assurance from
| Secretary Cortelyou, by means of long
| distance telephone communication
with New York, of a substantial de-
posit at once of United States funds
| in Government repositories
Judge Nathaniel Ewing, in the Uni
| ted States Circuit Court, appointed
T. Hart Given, president of the Farm
ers' Deposit Bank; II. s. A, Stewart,
real estate man and hnancier, and e.
M. Herr, e-president of the COM
pany, as receivers of the Westing-
house Electric and Manufacturing
Company William McConway, pres
| ident of the McConway & Torley
Company; w. H. Bonner, president
of the Union Improvement Company,
and e. E. Keller, Independent of
| the machine company, were made re-
ceivers for the Westinghouse Machine
Company The Fidelity Title and
Trust Company, Of Pittsburg, was APP
| pointed receiver for the Securities In
| vestment Company.
The allegations in the bills were
| that owing to the stringency in the
money market it was found impossi-
BILE at the present time to obtain the
money with which to carry on the
business of the Industrial companies.
| The bill set forth that each of the
industrial companies has large or
| ders, and that it is to the best inter-
est to all concerned that the contracts
now on hand be carried out. The
| court made an order that the indus
| trial companies be operated under
| the receivers, and that they be au-
! thorized to purchase such material as
may be necessary to carry on their
| business.
1t is explained that the Securities
| Investment Company was purely
Westinghouse concern, being practi-
cally owned by George Westinghouse,
and that the company has been adj
vancing money to the two industrial
companies until its resources had be-
come exhausted. The receivers were
ordered to give bond in the sum of
$500, 900 for each company, and the
American Surety Company went on
the bond.
The receivership will permit the
operation of the immense plants,
! where $4,000 men and women are
employed in full. The concerns en-
| ploy about 10000 when working to
full capacity. The primary cause of
| the receivership was the aggressive
| policy of Mr. Westinghouse to provide
manufacturing capacity to meet the
wonderful buying demand Of this and
other countries. The business of the
| electric and machine companies has
grown enormously in the last ten
| years, and not in any one year in that
| time have the companies failed to
build large plants to take care of in
creased orders. Buildings have just
been completed in East Pittsburg
which cost 100000. All this addi-
ton to capacity has been continued
! without close attention to the finan-
cial situation.
The quick assets of the Westing-
house Electric and Manufacturing
| Company are given out by banking
interests at $29,000,000. and ac-
counts and bills payable as $4,000
| 000 The Securities Investment Com
pany has $3,000,000 capital and sur
plus in excess Of $5,000,000. 1t is
owned by Mr. Westinghouse person
ally. The Nernst Lamp Company has
| 100000 capital, and its stock is
owned entirely by the Westinghouse
Machine Company. The Westing-
house Machine Company has $4,000
900 capital and $7,500,000 surplus.
The Westinghouse Electric and Man
ufacturing Company has $S,99S,700
first preferred and $40, 996,350 Sec
ond preferred stock.
The statement of the Westinghouse
Electric Company for the six months
ending September 80 showed sur
plus equal to seven per cent, or at
the rate of fifteen per cent. a year,