South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-07-08
Both the Officials of the De-
funCt Bank and the Clearing
House Association Issue
Statements.
FOUR INSTITUTIONS IN
HANDS OF RECEIVERS
Press Agent is Responsible For
Charge That Government is
to Blame But it is Quickly
Recalled.

PITTSBURGH, July S.-The First
Second National bank of Pittsburgh,
the First National bank of McKees-
port. a neighboring city, the American
Water Works and Guarantee Co. and
the banking house of ]. S. and w. S.
Kuhn, inc, of this city. were forced
into the hands of receivers Monday.
through the failure of the first
named institution to open its doors
Monday morning.
The closing Of the First-Second
National bank was ordered by the
deputy comptroller of the currency,
/ T. p Kane, after every effort had
/ been made to meet the government
requirements as to the legal reserve.
| The Kuhn banking house has ex-
tensive interests in irrigation projects
throughout the west and mines and
street traction systems throughout
western Pennsylvania, besides being a
dominant factor in the American
Water Works and Guarantee Co.
w. S. Kuhn was president of the
First-Second National bank, vice
president and director in the bank
ing house, and vice president and di-
rector of the American Water Works
and Guarantee Co. besides being di-
rector of the McKeesport bank.
]. S. Kuhn was a director of the
First Second National bank, president
and director of the American Water
Works and Guarantee Co.. president
and director of the McKeesport bank
and chairman of the board of direct
ors of the banking house.
When it was learned that the banks
would have to suspend business
steps were taken to protect the Amer
,r1fr 10
and the Kuhn's banking house. and
application was made in the federal
court Monday afternoon for receivers
for both institutions.
Throughout the day a statement of
the banks and affected companies af-
fairs was awaited with feverish anx-
iety, but none was forthcoming until
Monday night when Mr.. Kane made
formal statement. No statement
of the condition of the bank was OBJ
tainable subsequent to the one issued
June 4. on the last bank call of the
comptroller.
Issue Statement.
Monday night Mr.. Kane issued the
following:
AT a meeting Of the directors of
| the First-SeCOnd National bank held
on Sunday, the condition of the bank
| and the results of the recent investi-
u
! discussed. After full consideration,
| the directors declared their inability
/ to make good the banks impaired
capital and without dissent decided
I that it would be best for the prOtec-
I tiOn of depositOrs and all other inter-
| ests TO have the comptroller of the
! currency to take charge and 10 ar
range for the liquidation of the bank.
The Pittsburgh clearing house
committee, which has been engaged
/ for the past four days in going over
\ the affairs of the bank with the ex-
aminers and, in making a careful in
/ veStigatiOn as TO its condition, re-
/ fused TO furnish funds sufficient to
/ justify the bank in keeping its doors
/ open. and agreed under the circum-
! stances there was no alternative 10
/ the course recommended by the
I banks directors.
The officers of the bank have ex-
I pressed to the department the belief
/ that there will ultimately be but little
/ if any loss to the banks depositors.
! The liquidation of the bank, and the
distribution Of its assets will proceed
/ as expeditiously as possible"
After a prOtracted meeting Of the
! Pittsburgh clearing house association
! this institution Monday night issued
4 this statement:
Was Not Unexpected.
THE closing of the First-Second
/ National bank by the deputy comp
I trOller of the currency was not en-
! tirely unexpected by this association
I and it was therefore prepared for the
/ crisis. The members of the clearing
/ house are all in good condition and
we believe that the banks and trust
! companies in the city OF Pittsburgh
/ as whole, are prepared for any
/ emergency. IL will take several days
| TO arrange for the transfer OF accounts
I and the proper and careful handling
/ of checks made on the First-Second
/ National bank. We therefore ask the
indulgence of the public and request
that they will help in every way
/ possible to assist in the solution OF
| the problem which cOnfronts the
clearing house committee and the
] banks"
During the early hours of the day.
! a run was made on the Pittsburgh
Bank Tor Savings, another Kuhn in
| stltuuon, because OF the climax OF af-
Ialrs OF the Ffrst-Second National.
All demands up 10 $50 were paid
/ without question. and notice for
| larger amounts were asked, running
| 80, 90 and 90 days, according TO the
amount demanded by the depositor.
This institution also made a state
ment that II had $1,000. 600 in cash
ana quick assets and was prepared for
| any emergency The run was over
before the closing OF the banking
hours, and il is not thought any anx-
iety over this institution need be felt.
Two 6anLs Merged.
The former First National bank.
which was accredited as one of the
strongest banks in the country was