The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-10-21
BANK CLOSES.
Federal National, of Pittsburg,
in Hands of Receiver.
Had $4,000 of United States
Money on Deposit.
BUT THREE YEARS OLD
Capital of So 100000 and Cir.
cuIation of 100000.
Deposits Amounted to Nearly
Two Million Dollars.

Pittsburg, Pa, Oct. 21.-The doors of
the Federal National bank were not
opened for business this morning. The
following notice was posted in expla-
nation:
CLOSED by the authority of the comp
troller of the currency. John B. Cum
ningham, receiver.''
Some such action has been within the
possibilities for the past two days, fore
casted by the determined raid MADE up
on the institutions stock on the
Plttsburg stock exchange. The positive
statement, however. of the president, ].
A Langfitt. to the effect that the bank
was not in need of money, and that its
losses would not affect it's capital or sur
plus did much toward allaying the dis
trust on the part of its depositors thus
preventing a run. The closing of the
bank was decided upon at a meeting Of
the directors last night which did not
break up until 2 o'clock this morning
At that hour none of the officials would
make statement and locally the ouc-
come of the meeting was not general
ly known until the receivers notice was
posted at o'clock.
The bank is United States deposi-
tory and reported on hand September
OenOSItS.
The stock of the company has been sub
1ected to sharp declines on the Pitts
burg exchange this week. On Monday
the stock sold down from 115 TO S5, but
was forced up again to 1O1 All day
yesterday it sagged and the closing QUO
tations were so bid and IS asked, a num-
per OF transactions having been made ac
so.
The course of the stock has attracted
much attention, and numerous adverse
HoDOTtS in
were promptly and fully denied by Pres
Ident Langf1tt. He stated yesterday ev-
en1ng that the bank had suffered only
one possible loss, that of $4,000 for
which 1t held notes of the Eastern Tube
company of Dayton, O. That COMPANY
is in the hands of d receiver and a pIan
of reorganization is being worked ont
he said, and the banks loss on that ac-
count may be small.
The closing of the FTrs4ersI National
bank had apparently but little effect on
the local stock exchange Trading was
light but firm at about yesterdays
closing quotations. No dealings in any
of the local bank stocks were recorded
during the first hours trading and no
unusual action is looked for today
In a general way banking officials of
the city feel confident that the Federal
National banks troubles will be con-
fined to itself and will not disturb any
other financial institution
Receiver Cunningham thinks IT may
be two or three days before ne can
make a statement of the banks condi-
ton. A statement as to the cause of the
failure has not yet been made public.
Robert S. Smith. president of the
Union National bank and president OF
the Pittsburg clearing house associa-
ton, said:
II was assured last night by President
Langfitt that every depositor would get
every dollar due. 1t is possible that
some small country banks which do
business through the Federal National
may be temporarily embarrassed. but
even at that it will be only temporary
]. A. Langfitt. president of the Fed
eral National bank in signed state
ment says:
1.-The Federal National bank has
of it's stockholders and depositors and
has closed its doors until arrangements
can be made to discharge all depositors
claims. The question of reopening will
then be decided.
when the business depression came
on, the stockholders. from necessity or
fear began throwing the stock upon
the market. The stock issue was large
and the market weak. On groundless
rumors our splendid list of depositors
took fright and the rapid Withdraw wal
of moneys began and increased until
despite our best efforts. the bank could
not longer meet the demands upon it,
Last night the directors believing such
course to be the proper one under the
circumstances ordered the bank to be
closed temporarily and requested the