The French Broad hustler. [volume] (Hendersonville, N.C.) 1896-1912, 1907-10-31
WESTINGHOUSE sUsPENls
|. Three Great Electric Concerns pH
In the Hands Of Receivers.
Temporary Closing Of Pittsb6rg stock
Exchange Precedes Action by Fed
eral COnrt-Work I o Go On.

Err-@#a @H-aw arH-+g-E 1la.EH ~ -
Pittsburg.-The financial disturb.
Ance in New York was reflected in
Pfttsburg by the appointment OF, e
eeivers for three of the big companies
OF the Westinghouse interests. These
are the Westinghouse Electric ana
Manufacturing Company, the west
iRghouse Machine Company and the
Securities Investment Companya IN
volying perhaps $190, 900, 600. 1t IS
understood a receiver will be asked
for the NernsS Lamp Company, am
other Westinghouse concern. other
wise the financial situation In Pitts
burg is declared to be absolutely
sound.
At the request of the Pfttsbufg
Clearing House committee business
vas suspended on the Pittsburg Stock
Exchange, because of a fear that wild
n premature rumors regarding the
Westinghouse trouble might extend
to the other local corporations and
banks.
For fear that exaggeration OF the
Westinghouse dtffculty might work
further injury, Pittsburg banks
thought 1T wise to prepare for any
future emergencies. Through Sena-
tor p. C. Knox, himself a Pittsburg
banker, they obtained assurance from
Secretary CoFtelyou, by means of long
distance telephone communication
with New York, OF a substantial de-
posit at one of United States funds
in Government repositories.
Judge Nathaniel Ewing, in the UNI
ted States Circuit Court, appointed
7, Hart Given. president of the Farm
ers' Deposit Bank; II. s. A. Stewart,
real estate man and fnanefer, and f.
n Herr, vice-president of the COM
pany, Is receivers of the Westing-
house Electric and Manufacturing
Company. William MeConway, pres
ident of the McConway & Torley
Company; w. H. Donner, president
OF the Union Improvement Compass,
and E. e. Keller, v~tce-presider.t 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 stFingency in the
money market it was found impossiI
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-
dere, 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 an
thorized to purchase such material as
may be necessary to carry on their
business.
It is explained that the Securities
Investment Company was purely g.
Westinghouse concern, being practi-
eRlly owned by George Westinghouse,
and that the company has been adj
Vaneing 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
500, 600 for each company, and. the
American Surety Company went on,
the bond.
The r~eceivership. will permit the
operation of the immense plants,
where $4,000 men and women are
employed in full. The concerns en-
ploy about $4,000 when working to
full capacity. The primary cause OF
the ~reeeivefship 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 Pftteburg
which cost 100000. All this addi-
ton to capacity has been continued
without close attention to the hnan-
cial situation.
The quick assets of the Westing-
house Electric and Manufacturing
Company are given put by banking
interests at $29,OOO,0 900, and ac-
counts and bills payable as $4,000
600. The Securities Investment Com
pany has SO, 1000, 600 capital and sur
plus in excess of 100000. 1t is
owned by Mr.. Westinghouse person
ally. The Nernst Lamp Company has
81, 00e, 600 capital, and its stpekels
owned entirely by the Westinghouse
Machine Company. The Westlng-
house Machine Company has $6yOOOS-
600 capital and $7,500,0OO surplus.
The westinghouse Electric and Man
ufaeturing Company has $S,99S,7OO
frst preferred and $20,996,36O see
ond preferred stock.
The statement of the Westinghouse
Electric Company for the six months
ending September 80 showed a sur
Mus eoaal to seven per cent, or at
the RATE OF fifteen per cent. a year,