Evening star., 1907-10-23
SMOKY CITY
GETS A JOLT
Pittsburg Stock Exchange
Closes Unexpectedly.
FINANCIERS ARE EXCITED
Security Investment Company Re-
ported Embarrassed.
IN WESTINGHOUSE INTERESTS
Union Switch and Signal Company
and the Air Brake Company Not
NEUTRALITY-SUSPICIOUS.
IN WESTINGHOUSE INTERESTS

The greatest sensation in Pitts
burg financial circles in years, and
one wholly unexpected, occurred
today, when the stock exchange
suspended operations for the day,
announcing that the Security In
vestment Company, a concern
formed for the purpose OF handling
the affairs of the Westinghouse in
terests, was slightly embarrassed
on account of the money market
Stringency. Following meeting,
the clearing house announced that
not bank in Pittsburg was in
trouble. None had asked for anv
aid, and it was stated should any
institution request assistance it
would be rendered at once. The
Security Company's embarrass-
ment will affect. temporarily at
least, the following Westinghouse
concerns: The Westinghouse Elec-
trio and Manufacturing Co., the
Westinghouse Machine Co. and
the Nernst Lamp Co. The West
inghouse Air Brake Co. and the
Union Switch and Signal Co. are
in no way involved. The personal
interests of Mr.. George Westing-
house are also not affected.
PITTSBCRG. Pa, October 23-Finan-
cial circles In Pittsburg received a jolt
Temporarily. it is believed-shortiy after
the opening of the Pittsburg Stock Ex
change this morning when announcement
was made that owing to the embarrass-
ment of the Security Investment Com
pany II was thought advisable to close
the stock exchange until after meet
ing had been held by the members and
the situation had been carefully looked
into.
The action seemed entirely unexpected
and caused considerable excitement The
officers of the stock exchange took the
acton at the request of the Pittsburg
Clearing House Association.
The embarrassment of the Security In
vestment Company affects number of
the Westinghouse interests, and an appli-
cation will be made some time today for
Q receiver for the Westinghouse Electric
and Manufacturing Company. the West
inghouse Machine Company and the
Eernst Lamp Company
The Union Switch and Signal Company
and the Westinghouse Air Brake Com
pany are not involved.
The embarrassment of the Security In
vestment Company, ii is said is only
temporary and is attributed to the in
ability of the company to secure funds on
he rrin
market.
Amount Involves Millions.
The amount involved is not yet known.
but will be millions of dollars.
Secretary c. j. Holman of the Pitts
burg Stock Exchange made the follow
ing announcement when the exchange
opened this morning:
'At the request of the Pittsburg clear
ing house and at the suggestion of the
members and board of directors the Pitts
Stock Exchange has been closed for the
day"
Immediately following President r. c.
Hall issued statement reading as fol-
lows
'The Security Investment Company
nnds itself involved This will necessitate
a temporary suspension or receivership
of the Westinghouse Electric and Man
ufacturing Company, the Westinghouse
Machine Company and the Nernst Lamp
Company. The manufacturing companies
are in an absolutely solvent condition.
The condition of the Security Investment
Company will in no way affect the Union
Switch and Signal Company and the
Westinghouse Air Brake Company
would like it explicitly understood that
IL was at the request of the -Pittsburg
clearing house
trading temporarily
Petition for Receiver.
The petition for receiver of the con-
eern named, il is said. will be made today
Banking interests here express no doubt
of pulling the companies through success
fully.
The embarrassment of the concerns is
attributed to inability to secure funds on
market. The amount involved will run
ap into the millions
The capitalization of the Westinghouse
Electric Company is:
First preferred stock. 100000
6econd preferred. authorized $46 600 900
Outstanding. s2l. $50, $50.
Deoenture > per cent bonds 1913 au-
thorized, $4,000; outstanding 81 27s 600
Convertible sinking fund per cent
bonds. 1881. convertible into stock after
Sl0. authorized, S25O0,OOO; outstanding
y15,OD0OCO
More Orders Than It Can Fill,
The Westinghouse Electric and Manu-
featuring Company has more orders on
It's books than It can comfortably handle.
according 10 statements of officials and
bankers conversant with the affairs of
the corporation. So much business has
been offered that II did not have suf-
fce mt capital 10 handle II. Money has
been exceedingly tight. and all corpora
tions, railroad and industrial, have had
difficulty in securing sufficient capital To
handle the enormous business 1t is pos
sible to secure.
The president of one of the leading
banks said today:
The Westinghouse Electric Company