New-York tribune., 1907-10-24
FOUR WESTINGHOUSE
COMPANIES SUSPEND.
RECEIVERSHIPS SEQUEL
TO MONEY. STRINGENCY.
Closing Of Pittsburg StocIs Er-
change Precedes Action by
Federal TOnrf
Federal Court
GBy Telegraph to The Tribune. ]

GBy Telegraph 10 The Tribune.l
Pittsburg, Oct 23.-The financial disturbance
in New York was reflected in Pittsburg to-day
by the appointment of receivers for three of the
big companies of the Westinghouse interests.
These are the Westinghouse Electric and Man
ufacturing Company, the Westinghouse Ma
chine Company and the Securities Investment
Company, involving perhaps $lO0OO0,OOO. 1t is
understood a receiver will be asked for the
Nernst Lamp Company another Westinghouse
concern, tomorrow morning Otherwise the
financial situation in Pittssurg is declared to
be absolutely sound.
At the request of the Pittsburg Clearing
House committee business was suspended to-
day the Pttsburg Stock Exchange, because
of a fear that wild and premature rumors re-
gardng the Westinghouse trouble might extend
to the other local corporations and banks.
For fear that exaggeration of the Westing-
house difficulty might work further injury
Pittsburg banks thought it wise this afternoon
to prepare for any future emergencies. Through
Senator P. c. Knox, himself a Pittsburg banker
they obtained assurance from Secretary Cortel-
you. by means of long distance telephone com
muncation with New York, of a substantial
deposit at once of United States funds in gov
ernment repositories.
APPOINTMENT OF RECEIVERS.
Judge Nathaniel Ewing. in the United States
Circuit Court. this afternoon. appointed T. Hart
Given. president of the Farmers Deposit Bank:
H S. A. Stewart. real estate man and inancier.
and E. NJ. Herr. vice-president Of the company,
as receivers of the Westinghouse Electric and
Manufacturing Company. William McConway.
president Of the McConway & Torley Company;
W. H Donner. president of the Union Improve
ment Company. and f. z. Keller. vice president
OF the machine company were made receivers
for the Westinghouse MachiEe Company. The
Fidelity Title and Trust Company. of Pitts
burg. was appointed receiver for the Securities
Investment Company.
The petition for the appointment of a receiver
for the Nernst Lamp Company could not be
prepared in time for presentation in court this
afternoon. It will be presented early tomorrow
morning.
The bills were filed by Attorney George Cor
don. and Reed, Smith, Shaw & Beal In behalf
of H. H Westinghouse. of New York, brother
Of George Westinghouse. and the Atha Steel
Casting Company of New Jersey. As the ap-
plications were made by residents of other
states the United States Court had jurisdiction
The allegations in the bills were that owing to
the stringency in the money market it was
found impossible at the present time 70 OBJ
tain 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 orders. and that IL Is TO the
best interest TO all concerned that the contracts
now on hand be carried out. The court made
an order that the industrial companies be oper-
ated under the receivers, and that they be
authorized 10 purchase such material may
be necessary TO carry on their business.
It is explained that the Securities Investment
| Company was purely Westinghouse concern.
! being practically owned by George westing-
! house, and that the company has been ad-
vancing money to the two industrial companies
until its resources had become exhausted The
| receivers were ordered to give bond in the sum
! of 100000 for each company. and the American
| Surety Company went the bond
| STATEMENT BY MR.. WESTINGHOUSE.
George Westinghouse issued the following
| statement tonight:
Wher the Pittsburg Clearing House Commit
| tee. after a full investigation and conference
| with me. concluded that, although the Westing-
house Electric and Manufacturing Company,
! and the Westinghouse Machine Company were
solvent. reCeiverships were advisable as the best
| means Of protecting the interests of all con-
| cerned, it clearly our duty 10 follow their
! friendly advice. The necessity for the receiver
ships is due solely 10 the acute financial strin-
! gency. and consequent inability to renew our
| maturing paper.
| are solvent, and doing the largest and most
! satisfactory business in their history and each
|
! stock and has quick assets subsequently equal
! to its liabilities. l confidently believe that
| every creditor of each company VIII be palc IN
/ fuIl and that with wise management, under
the direction of the receivers appointed by the
| court the properties will soon be restored 10
! the stockholders.
| The loans to the Securities Investment Com
I pany and myself secured by the stocks OF
/ the Westinghouse manufacturing companies.
chiefly stocks of the electric and machine COM
| nanies the sudden decline in the market value
! of which on Monday and Tuesday OF this week
/ has made it impossible for US TO margin our
! loans l strongly advise all holders OF such
loans 10 hold their collateral the value OF which
! I am confident, Will in time be sufficient 10 pay
the loans The sacrifice of the collateral in the
1 present condition Of the market can benefit no
/ one policy of patience and forbearance Is
what the situation requires.
| CLOSING or STOCK EXCHANGE.
There was full membership Of the Pittsburg
| Stock Exchange on hand at 10 a. m, when the
! exchange was booked TO open for the days busi-
| ness All the members were called into execu-
! tive session by President Robert c. Hall, who
said:
| The Securities Investment Company finds IT.
! self involved through inability TO obtain money
| 10 meet maturing obligations and provide work
! ing capital. This makes necessary a temporary
/ s1Ispension for that company, the Westinghouse
| Electric Company, the Westinghouse Machine
! company and the Nernst Lamp Company.
The manufacturing companies are perfectly
| solvent. 1t is only dlhculty or obtaining
! ,eadv cash This embarrassment in no way aG-
/ fects the Westinghouse Airbrake Company or
the Union Switch and Signal Company which.
though Westinghouse concerns, are in no need
! Of assistance
Mr. Hall then suggested that business be tenn
norarily suspended the Stock Exchange and
| ,h,e nronosition was unanimously concurred in.