New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-22
PlTISBuRG BANK CLOSED
THE ACTION EXPECTED.
Stock Vas Dumped on Market and
Started Run

Pittsburg Oct 21-Tbe aoo-s 90 .ro 1-,y7.-o,
National Bark was not opened for business
TINS morning The following notice was nosted
in explanation:
Closed by the authority of tn c,,.,.uo,,o- g
me currency John b. Cunningham Receiver
some such action as this has been more or
less expected for the last two dsvs foracas,ad
oy the determined raid made on tho inetitu
Ilon STOCK on the Pittsburg Stock Exchange
Inc positive statements however Of the r,rasi
dent J. A Langftt 70 the effect that the hank
"''S mo- III heeo u money and that its losses
OU'1 ~ ""e0' us capital or surplu. did much
toward aHaying dist-ust on the mart Of its
depositors' thus preventing a run. The closing
Of the bank decided an ~ q r-aa+i,,. g
the directors last night which did not break
up until TWO O'Clock this morning The hank
y ohl'eu states depository and reported on
hand September $4,000 of T-nite5 states
deposits
me STOCK OF the company has been sub
Jected TO sharp declines on the Pittsburg ex-
change this week On Monday il sold down
rom 10 TO ~. but was forced I'D again TO
IVl' All Gay yesterday It sagged. and clos
ING quotations were 80 bid and "a asked
number OF transactions having been made at
80. The course OF the stock has attracted much
attention. and numerous adverse reports were
in circulation, but they were promptly and
fully denied by President J. \ Laughtt He
stated yesterday evening that the bank had
suffered only one possible loss. that of $140.Vo.
for which II held notes % the Eastern Tube
Company. Of GAINESVILLE Ohio. That company
was in the hands Of a receiver and plan OF
reorganization was being worked out he said
and the banks loss on that account might be
small
The closing Of the Federal National had little
OF h.
and brokers are of the opinion that the closing
Of the bank until its affairs cs7 be adjusted
was the best thing to do under the oircum-
stances The talk about the banks affairs has
been a drag on the market and the belief is that
the action Of the directors viii have q good
effect on the general situation rs the- than an in
furious one.
Receiver Cunningham thinks il may be two or
three days before he can make a statement of
the banks condition.
Robert S. Smith. president Of the Union Ma
tional Bank and president of the PittsburE
Clearing House Association. said:
There is not the slightest reason for any
alarm. and if people viii only keep cool there
VIII be no trouble. l assured last night b.
President Largftt that every depositor would
get every dollar due. and I believe the state
ment. The bank has some excellent assets and
there seems 70 De no reason why depositors
should not get all coming to them. II is posi-
bic that some small country banks which do
business through the Federal National may be
temporarily embarrassed, but even at that it
viii be only temporary.
Following is the statement Of J. A Langftt,
president Of the bank:
The Federal National Bank has finally yielded
70 the combined assaults Of its stockholders and
depOsitOrs and has closed its doors until
engagements he made 20 discharge all de-
positors' claims The question OF reOpening will
then be decided. When the business depression
came on the stockholders. from necessity
kcr The stock issue large and the market
weak ThereupCH disquieting runQrs spraug
into birth, ErOundless. baseless and perhaps in
some cases malicious These increased the
weakness Of the stock and the weakness in
creased the rumors until splendid list Of
depostors took fright. and the rapid withdrawal
Of moneys began. and increased in volume daily
until. despite our best efforts call in loans
and provide funds the bank could no longer
meet the demands upon II, and drastic measures
teca me necessary.
Last night the directors, believing such course
70 be the proper one under the circumstances.
ordered the bank 10 be closed temporarily and
requested the Controller OF the Currency 20 take
81 600 600 and until yesterday. when the floods
came" We had maintained our full legal re-
serve We have had actual losses. and. with
one exception our combined probable losses up
TO date would not aggregate One-haf OF l per
cent Of our capital II could be paid In full out
touching either our capital Of S2.OO.Oo or sur
plus Of 100000.
When our doors closed had approximately
81 900 900 Of deposits. 70 secure which We had on
hand in cash. time and demand loans and other
good securities about 81 100000 There IS not
now and never was moment when our deposit
ore were in the slightest danger Of losing
penny.