Jasper County Democrat, Volume 10, Number 30, Rensselaer, Jasper County, 26 October 1907 — FLURRY COMES WEST [ARTICLE]

FLURRY COMES WEST

Stringency Having About Played Out at New York Goes to Pittsburg. WESTINGHOUSE FIRMS ARI HIT Receiver* Are Appointed, but the Concerns AU Declared Solvent Just Coupld’t Meet Their Obligations with Cash That Couldn’t Be Had—Situation at New York Is Better. Pittsburg, Oct. 24.—A flurry in local financial circles, caused by the etnibarrassnieut of four concerns of the Westinghouse interests, was quickly ended here by the prompt action of the Pittsburg. Clearing House association and the Pittsburg Stock Exchange. At night the Westinghouse Electric and Manufacturing company, the Westinghouse company and the Security Investment company, a holding company for the Westinghouse Interests, were in the hands of receivers appointed by Judge Ewing, of the (United States circuit court A fourth concern, the Nernst Lamp company, was turned over to receivers this morning. Financial Situation Sound. The PittsburgStock Exchange, which was closed promptly when Informed of the situation by the Pittsburg Clearing House association will likely remain closed today. This action is taken for the purpose of preventing an unnecessary sacrifice of values by a heavy liquidation of stocks. Statements issued late In the day by Geo. Westinghouse, prominent bankers, officers of the Stock Exchange and the Clearing House committee, show conclusively that the financial situation here is sound, and that there Is no danger. That Stringency in Money Again. The severe stringency of the money market Is alone responsible for the Westinghouse difficulties. The solvency of the embarrassed companies Is not questioned. The concerns at present are enjoying the largest amount of business known in their career. The inability to secure funds. to pfly off maturing loans caused the embarrassment. 'Hie local situation is believed n >w to bo in better condition than It has been for some time. , Plenty of It In the Banks. That the local banks are in good condition was shown when it became public that the Diamond National bank had sent SIOO,OOO in gold to New York Institutions Tuesday. Several other local banks took similar action. The embarrassment of the Westinghouse companies was wholly unexpected ’ and came as a surprise. The suspension of the Stock Exchange caused more alarm than the situation warranted, but almost immediately statements of a reassuring character were Issued and from all sides the action taken was given hearty indorsement. GOTHAM CRISIS 13 PASSED ’ > ..1 ■■ .11 Trust Companies and Uncle Sam Bans ish the “Flurry.” New York, Oct. 24.—The crisis in New York financial circles was safely passed last night. After prolonged conferences at J. P. Morgan’s office an organization of the presidents of the New lork trust com pa dies was affected not different In principle from the Clearing House association. It is in the nature of a protective combination. All of the leading and admittedly conservative trust companies participated. John A. Stewart, chairman of the board of the United States Trust company, preshled, and was elected chairman of a committee whose duties are to lie analogous to those of the ClearInfe House committee. A resolution was unanimously adopted providing for an examination of the various trust companies by the conn mittee and report of its findings and recommendations to the association. Following this organization, which was regarded as one of the most important adjustments ever successfully carried through in New York financial circles, a report was made to the committee respecting the Investigation into the affairs of the Trust Company of America. This report was carefully considered in a prolonged conference of the committee, and It was apparent that the trust company* had ample securities to warrant continued advances. As a result the committee representing all of the trust companies of New York unanimously agreed to come to the aid of the Trust Company of America by provldingsuch funds as It needs. There Is no reason to doubt, therefore, that the Trust Company of America will be able to meet all demands made upon it At the same time—and even more Important—the secretary of the treasury, having satisfied himself as to the condition of the New York banks, authorized an announcement that he bad directed that government deposits be * placed in the banks of the jlty to the extent of $25,000,000 today. These two measures are admittedly adequate for All the needs elite banking and trust

corporations of New York fit the present emergency. Joseph 8, Auerbach, of counsel for the Knickerbocker Trust company, announces that negotiations are under way looking to an early resumption of business by the Knickerbocker. Attoral General Jackson also spoke In an optimistic vein. *T have not taken steps looking to the appointment of a receiver,” he said, “for I have considerable hope that such action will not be necessary. The situation Is looking decidedly brighter.”