The Washington herald., 1907-10-24

Pittsburg, Oct. 2.-In the United States
Circuit Court this afternoon Judge Ewing
appointed receivers to take charge of the
Westinghouse Electric and Manufactur-
ing Company the Westinghouse Machine
Company. and the Security Investment
Company.
The receivers were named after a num-
ber of conferences between bankers and
those directing the affairs of the COM
pany, and the temporary suspension OF
the Pittsburg Stock Exchange. at the re-
quest Of the clearing house committee.
Because Of the suingency Of the money
market and the fact that the companies
named above owe about S46,OOO0OO, it was
believed best by all concerned that receiv-
ers be appointed so that the immense or
ders may be filled and carried out and no
suspension of work at the plants occur.
After listening to the statements Judge
Ewing named the following receivers:
= Hart Given. president of the Farmers
Deposit National Bank; H. s A Stewart,
the well known real estate man and fnan-
cier, and Z. NJ. Herr, vice president Of the
company. were named 10 assume charge
Of the electric and manufacturing com
pauies.
other Receivers Named.
William McConway, president Of the
McConway < Torley Company; ". H.
Donner, president Of the Union Improve
ment Company, and +. E. Keller vice
president of the Machine Company were
appointed receivers for the Machine Com
pany. The Fidelity Trust Company of
PittSbUrE was named receiver for the
Security Company.
The petition for the appointment Of q
receiver for the Nernst Lamp Company
could not ne prepared In time for pres
entatiou I'm court during the afternoon. II
VIII De- presented early in tine morning
Neither the Farmers Deposit National
Bank nor any Of the receivers are cred
itors Of the company.
The court made an order that the com
panies be operated under receivers, and
material as might be necessary to carry
on the business Of the companies. Il was
explained that the Security Investment
Company was a purely Westinghouse
concern, being practically owned by
George Westinghouse, and that the com
pany has been advancing money to the
two industrial companies until its re-
sources had been exhausted.
Give Heavy Bond.
The receivers were ordered to give bond
in the sum Of 10000 each, and the
American Security Company went on the
bonds
Immediately upon the appointment Of
the receivers. George Westinghouse is
sued this statement:
when the Pittsburg Clearinghouse
committee, after fun investigation and
conference with me, concluded that, al
though the Westinghouse Electric and
Manufacturing Company and the West
inghouse Machine Company were solvent.
receiveTships were advisable as the best
means Of protecting the interests Of all
concerned, il was clearly our duty 10 fol-
low their friendly advice.
THE necessity for the receiverships is |
due solely 90 the acute financial strlI,-
gency and consequent inability to renew
our maturing papers. Both the electric
company and the machine company are
solvent and are doing the largest and
most satisfactory business in their his
tory, and each company is earning lib
eral dividends on its stock. and has quick
assets equal to its liabilities
I most confidently believe that every
creditor Of each company viii be paid
in full. and that with wise management
under the direction of the receivers aD-
pointed by the court, the properties Will
soon be restored to the stockholders"
Statement by Clearing House.
The clearinghouse committee Of the
Pittsburg clearing house at noon to-day
issued the following:
''The clearinghouse committee. on he
half Of the association, begs to announce
to the public that, owing to the heavy
liquidation of stocks. necessitating an
unnecessary sacrifice Of values, it has
requested that the stock exchange Sis
pend its operations for the present. The
committee also desires TO say that II has
received no application for aid from any
banking institution; but, should such ap-
plicatiOn be made. it is prepared to take
immediate action 10 protect the interests
OF the city, and no alarm need be felt"
Has Large Capital Stock.
The Westinghouse Electric and Manu-
featuring Company, the largest OF the
Westinghouse concerns, possesses a can
ital stock of $24.S96, 80, according To the
report of the board of directors for the
fiscal year ended March 81 last George
Westinghouse, of Pittsburg, is president.
z. NJ. Herr. vice president, and Bravton
Ives chairman of the board Of directors
The company was organized in Nav.
1892. and has paid annual dividends of 10
per cent on preferred and asserting stock
since 1904. The report of the board of
directors for the last fiscal year shows
that on March 81 the gross earnings. of
the company were S33. .000 600; the net earn
ings 4,1S0, 900; income from other sources
81. .256C00; interest, taxes, &c. 50 66S. goo
and profit and loss charge, $236. 600
Last year the Westinghouse Electric
and Manufacturing Company paid a divi-
dend of 100000 on preferred stock and
s.. 100. 600 on asserting stock. The sIIrnlus
for the year amount only to S32.e45.
At the time this report was made there
was outstanding about $l,000000 of nre-
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