The Birmingham age-herald., 1913-07-09
PITTSDURG ENJOYS
FINANCIAL QUIET,
THANKS TO NJ 'ADOO
Normal Conditions Restored
Following Decisive
Statement
TO INVESTIGATE
CLOSING OF BANKS
Interest Now Centers on Action OF
GOvernment-Tens Situation of
Yesterday Almost Wholly
as Relieved

Relieved
Pittsburg. July s.-Te the decisive
statement of Secretary of the Treas
ury MeAdoo. issued last night, is at
tributed the restoration of almost nor
NAL conditions IN financial Pittsbnrg
tonight. despite the closing Of the
doors of the First Second National bank
yesterday. an institution which had
been accredited one Of the strongest
in the country. While the situation
was tense in the financial world yes
terday and little Information as to pos
sible developments was obtainable, the
flat statement of facts of the Sec
retary served to develop an overnigh
optimism that grew as today advanced.
The closing of the First-Second was
naturally followed by suspension of its
affiliated bank, the First National of
McKeesport, and the appointment OF
receiverships for the banking house of
j. S. and w. S. Kuhn. Inc, whose prin-
cipals We're the majority stockholders
of both institutions and like action
with the American Waterworks and
Guarantee company, an enterprise
fathered by the Kuhn interests.
Run Abating
Another Kuhn interest which was
affected, the Pittsburg Bank for Saw
ings. suffered somewhat from the COM
plication. "A run being started on 1t
yesterday, chiefly by small depositors.
This continued somewhat increased to-
day, but it appeared to abate as the
day wore on. Crowds assembled about
the bank building, and the sidewalk
about the building was roped off, with
mounted police prancing their horses
within the lines on the sidewalk The
people were forced outside the ropes
into the middle OF the street The
crowds We're made up mostly of curious
spectators. The small groups of de-
positors that entered the bank were
promptly paid $50 upon demand. as
yesterday, and required to give the
legal 30, so or 80 days notice
to withdraw other amounts above
stated figuress qesteroSy S57, ,00o was
Withdrawn from the bank while the
deposits We're $4,000. Today's figures
in this relation were not obtainable
hui Il is assured the withdrawals to-
day we're u1afer yssterdays figure
There were reports that SL00O.001
had been shipped = the Pfttsburn Bank
for Savings today from philadelphia,
but this was not verified, and was dis
credited by clearing house members
who verify the statement of the bank
made yesterday that this bank has s5.-
100000 In cash and 100000 in quick
assets, enabling 1t to meet any stress
or emergency.
Kuhn Resigns
About noon the announcement was
made that j. S. Kuhn, the president, and
w. s. Kuhn, the vice president, had re-
signed and that w. J. Jones, the former
secretary and treasurer of the bank, had
been made president with A. N Voeghtly,
former assistant to Mr.. Jones as secretary
and treasurer, while l.. M. Plummer, a
was made vice president From
the time of this announcement during
the rest of the banking hours the run per-
ceptibly abated and the crowd disap-
peared. until at closing time the streets
near the bank differed from no other busi-
ness thoroughfares.
Expected statements as to the American
Waterworks and Guarantee company
were not Forthcoming today, the delay be-
ing attributed to the delay in the ap-
pointment Of the fourth receiver which
Federal Judge Orr announced should be
a man having no business interests with
tht i>ullIS. SEVERAL business men nave
refused the appointment.
No developments were announced from
the First-Second National bank today
and none was expected until the receiver
G. c. Murray, has had an opportunity
to assemble the assets of the bank and
has been enabled to ascertain its liabili-
ties. 1t is expected that within a few
days call will be sent out to depositors
to present their books for balancing to-
ward the end that an accurate amount
of the banks indebtedness may be
learned.
Interest in Investigation
Chief interest now centers in the steps
that may be taken by the government
in an investigation into criminal liability
in connection with the bank failure Uni
ted States District Attorney John II Jor-
dan, through whom the first steps in this
direction would be taken, said today he
had received no notice from Washington
along this line, but that 1t was possibly
a little early for the officials to have
had opportunity to decide upon any course
of action.
Around the First-Second National bank
crowds of aliens, depositors in the foreign
department, continued to assemble today.
but gave no cause for activity of police
who have kept the crowd moving for the
past two days. These aliens contented
themselves with copying the notices post
ed in their various languages and by late
afternoon had left the vicinity.
So secure did the members of the clear
ing house feel in the stability OF condi-
tions generally that a meeting which had
been scheduled for this afternoon. to con
slider the financial situation generally.
was called off and offers of assistance
from New York. Chicago and st. Louis
were declined.
Considers Investigation
Washington. July S-Seeretary McAdoo
today was still considering the question
of calling upon the department of ms
tice to Investigate the failure of The
First-Second National bank of Pittsburg.
Officials are now giving particular at
tention TO the discrepancy between the
sworn report of the bank to the comp
troler of the currency on June and the
financial statement it published in the
Pittsburg newspapers.
The report to the comptroller showed
nearly $2.00O,oo0 in rediscounts or bor-
,rowed money, but that article was
omitted from the published statement,
The national bank act requires the pub
lication of the statement in the shane
submitted to the comptroller Treasury
officials reiterated ti:eir ccaadeace that
the general banking condition in Pitts
burg and the entire country was sound
and stable. and that the failure of the
First-Second National bank was simply
the collapse of a weak spot due as they