The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1907-11-13
WESTINGHOUSE SUsPENDS
Three Great Electric Concerns Put
in the Hands of Receivers.
Temporary Closing Of Pittsburg Stock
Exchange Preccdcs Action by Fed
craI Court-Work to Go On.
Pittsburg.--The financial disturb.

lie uIldlCiGi ulSIutU
| 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 S100. 100000. 1t is
understood q 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 q fear that wild
and premature rumor5 regarding the
Westinghouse trouble might extend
to the other local corporations and
banks.
For fear that e~xaggeration Of the
Westinghouse difficulty might work
further injury, Pittsburg banks
thought it wise to prepare for any
future emergencies. Through Sena-
tor P. G.. Knox, himself q Pittsburg
banker, they obtained assurance from
Secretary Cortelyou, by means of long
distance telephone communication
with New York. OF a substantial de-
post at once of United States funds
in Government repositories.
TrJoa Nathaniel EWipp in thh TTDi-
ted States Circuit Court, appointed
T. Hart Given, president Of the Farm
ers' Deposit Bank; H. S. A. Stewart,
real estate nan and fnancier, and E.
M. Herr, vic%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, vice-president OF
the machine company, were made re-
ceivers for the Westinghouse Machine
Company. The Fidelity Title and
Trust Company, of Pittsburg, was ap-
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. Inc
court made al 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.
It is explained that the Securities
Investment Company was purely a
Westinghouse concern, being practi-
cally owned by George Westinghouse,
and that the company has been ad-
vancing money to the two industrial
companies until it's resources had be-
come exhausted. The receivers were
ordered to give bond in the sum OF
100000 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 a 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 ii n 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 addl-
ton to capacity has been continued
without close attention to the imam
cial situation.
The quick assets of the Westing-
house Electric and Manufacturing
Company are given out by banking
interests at $29,000,0OO, and &C.
counts and bills payable as ~SlS,O0O,-
600. The Securities Investment Com
pany has 100000 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 it's stock ls
owned entirely by the Westinghouse
Machine Company. The Westlng-
house Machine Company has S6,000,'
600 capital and $~7,500,O00 surplus.
The Westinghouse Electric n Man,
ufacturing Company has ~$3,99S'1Oo
first preferred and $2o,996'35o Sec
ond preferred stock.
The statement Of the Westinghouse
Electric Company for the six months
ending September 80 showed a sur
plus equal to seven per cent, or at