New-York tribune., 1908-09-06
TWO BANKS CLOSED
PITTSBURG INSTITUTIONS.
Cosmopolitan National FoHoaced by
Smaller Trust Company.

Pittsburg, Sept 5.-Two financial institutions,
the Cosmopolitan National Bank and the Mount
Washington Savings and Trust Company. were
closed here to-day by orders from the federal
and state banking authorities. While the Cos
mopolitan National Bank a fair sized in
stitution, the trust company a small con-
Germ, and there little or no excitement when
the failures became known
The national bank was closed few minutes
after o'clock this morning and the trust COM
pany at 11:30 a. m, but the latter suspension
could not be confirmed until late this after
noon.
The order closing the Cosmopolitan Bank was
brought forth by the refusal, it is said, of Bank
Examiner John B. Cunningham to approve some
of the paper and other securities OF the bank
for loans aggregating, it is alleged, over 81
100000. However. the officials OF the bank deny
that worthless or insufficient securities have
been accepted for loans. They say all the paper
and other collateral held by the Cosmopolitan
is collectbe and that the bank is solvent anu
able to pay all its liabilities.
Further than to state that the bank is fnsol-
vent neither Examiner Cunningham nor Judge
Oldham, of the legal department of the Con-
troller of the Currency. who arrived here from
Washington early to-day. would commit HIM
self
liabilities were 81 S61. $50 9G The banks oft1-
Gals seemed to be very indignant that the gov
ernment should close the institution, ana the
cashier D. J. Richardson stated that none OF
them had any inti1nation that the bank was III
trouble until Examiner Cunningham closed the
doors He declared that the available cash on
hand was nearly 80 per cent of the total de-
posits Included in the deposits are federal and
state deposits of 100000 each secured by bond
Robert Lyons. who is the receiver for the Allie
gheny National Bank which recently failed
here, appointed receiver of the Cosn1o-
poitan. John McClurg is the banks president
The reason for closing the Mount Washington
Savings and Trust Company has not yet de-
veloped. 1t is believed, however, that the
trouble of the Cosmopolitan Bank was the cause
The vice president of the trust company is
also a director of the national bank. The capital
stock of the trust company is S125,000. It's de-
posits were 100000, with loans and discounts of
S141.OOO and assets said to aggregate 100000.
State Bank Examiner James NJ. Cover said the
institution closed by Banking Commissioner
Berkey because of apparent irregularities.
While he knew little of the condition of the
bank, he believed it would be possible to adjust
the Irregularities so that the doors could be
opened for business next Tuesday morning as
usual
Il understand, said he, that there is nothing
materially wrong ard that the funds of the bank
intact"
Harrisburg Penn. Sept. 5-The State OF Pennsxl-
vania had 100000 of sinking fund money on deposit
in the Cosmopolitan National Bank OF Pittsburg.
The state is protected by bonds aggregating S750O
State Treasurer Sheath is in touch with the bank
ing people at Pittsburg and will take the usual
course to recover the money.