The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-08
Fifty Dollars Most Savings
Bank DepOsitOrs Get.
Must Wait Thirty to Ninety
Days for Larger Sums.
SAY WILL PAY ALL IN Time
FirSt-SecOnd National BanE
Notice in Is Languages.
Clearance House Association
Holds Special Meeting.

Washington, d. c., July s.
John Shelton Williams, assistant sec
rotary of the treasury, who represent
ed Secretary McAdoo at the closing of
the Pittsburg First-Second National
bank today, declared that the institIi-
ton had been seriously mismanaged
and the extent of the mismanagement
would be determined by the department
of justice"
Government Offered $4,000, 900.
It developed today that the treasury
department yesterday offered the SOL
vent Pittsburg banks $5,OO0,00o of gov
erament deposits to meet any ener-
gency. but that the offer was declined
because the banks were in a position
to meet the situation The entire CAPT
tai and surplus of the First-Second,
amounting to $4,000, 900, has probably
been wiped out, but officers of the bank
have assured the government that de-
positors will be paid in full or nearly
in full. Members Of the clearing house
committee of Pittsburg," said Mr..
Williams, ''have assured the depart
nent that the banking situation is now
well in hand, and that they believe that
the Clearing House association will DE
able to prevent any further trouble.
Officials Resign.
Pittsburg, July 81. S. AMI w. S.
Kuhn this morning resigned as presi-
dent and vice president, respectively,
OF the Pittsburg Bank for Savings, at
which a run is being directed
The following officers were elected
to take charge of the bank: w. ].
Jones, president; L. NJ. Pluner, vice
president; A N. Vogetley, secretary
and treasurer.
In the United States district court
today Judge Charles P. Orr appointed
Fred G. Kay as the fourth receiver
for the American Waterworks and
Guarantee company. w. J. Jones, for
merly treasurer of the Pfttsburg
Bank for Savings but today made
president of the institution, said after
his election:
THE Kuhns have entirely with
drawn from the bank. AS it was they
were only the nominal heads of the
organization"
Bank Run Continues.
Pittsburg, July S.-Financial Pitts
today of yesterdays crash in banking
circles involving the failure of the
F'irst-Second National bank, with $32,-
100000 Of deposits, the First National
bank of McKeesport, an allied institu-
ton and the appointment of receivers
for the American WaterWorks and
Guarantee company, the largest con-
Germ of it's kind in the country and for
the banking house of J. S. and w. S.
Kuhn, incorporated No unusual incidents
the city with the exception Of the
Pittsburg Bank for Savings, another
bank controlled by J. S. Kuhn and w.
S. Kuhn. who controlled the majority
of stock in the two banks that sus-
pended yesterday. The run on the saw
ings institution that was started by the
failure yesterday was resumed this
morning possibly in somewhat larger
magnitude, but the same method as
adopted yesterday was pursued today.
All depositors were paid $50. at once,
and notice of thirty, sixty and ninety
days for larger amounts were re-
Quired.
With the assurance of several mil
lions in cash and quick assets on hand,
the run on this bank is not looked
upon as likely to result seriously. In
fact, bankers with no immediate con-
nections with the Kuhn institutions
assert that the Pittsburg Bank for Saw
ings will weather the situation and
make all payments as demanded under
the conditions imposed, with the result
that at the expiration of the time of
notice for withdrawal of the larger
amounts. the public confidence will be
restored.
About the First-second National
bank this morning large groups of
foreigners were gathered, copying from
the doors of the foreign banking de-
partment the notice of the closing by
the government which has been posted
in 16 different languages.
A meeting of the Clearing house as
ISOLATION is called for later in the day
at which every member has been urged
to be present No intimation has been
given Of the purpose of the meeting
but some statement is expected regard
ing the closing of the First-Second
bank
Comptroller Orders Bank Closed.
McKeesport, Pa, July S.-The First
National bank of McKeesport, con-
trolled by J.. S. and w. S. Kuhn, which
was closed by the directors yesterday,
today was formally closed by order of
the comptroller of the currency at
Washington.