Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1913-07-08
FINANCE CRISIS
IN PITTSBURGH
ONE on LARGEST BNNkS N nm
COZ NTKN CLOSED Bl GOV
ERNNtENT YESTERDAY.
Other COMPANIES INVOLVED


PITTSRCKGH, Pa, July 4 The
! First Second National Bank Of PITTS
hureh, the First National Bank of
McKeesport, n neighboring city tn"
American Water Works and Guar
aIty company and the banking house
OF j. II. and W 5. Kuhn, Incorporate
60 of this city were forced into the
hands of receivers today through the
loiluro of the first named institution
! a. open its doors this morning The
closing OF the First Second National
bank was ordered by the deputy
q mptrollcr of the currency r. +.
Kane after every effort had been
made To- meet the government require
rents ms 10 the legal reserve.
The Kuhn banking house has eX-
tonsive interests in irrigation projects
Throughout the west and in mines and
street traction systems throughout
Western Pennsylvania besides being a
dominant factor in the American
Water Works and Guaranty company
W. 5. Kuhn was president of the
l'irst-Second National bank vice
president and director in the banking
house Of !. $. and W $ Kuhn, in.
corporatcd and vice president ana di-
rector of the american WatI Works
and Guaranty company besides being
o. director of the McKeesport bank
j. II. Kuhn was "A director of the
/ First second National bank. prcsidem
and director of the Water Works and
Guaranty company, president ana di-
7, ctor of the MCKccsport bank and
| chairman of the board of directors
of the Kuhn banking house,
Protect Other Companies.
When II was learned that the banks
would have to suspend business, steps
were taken to protect the American
Water Works and Guaranty company
and the Kuhns banking house and ap-
plicatiOn WAS made In the federal
court this afternoon for receivers for
both institutions,
Throughout the day statement of
tho banks and the affairs Of the af-
frctcd companies was awaited with
Ncrish anxiety but none was forth
coming NIlll lbIllEill w NI'.ll WI Nbll'
made a foymaI statement No con
d'tion of the bank was obtainable
subsequent to the one issued June
oo the last bank can of the comp
trollor
Tonight MIR Kane issued state
uont In which he said the directors
r the bank. the examiners and the
Pittsburgh clearing house committee
had agreed under the circumstances
there was no alternative to the course
recommended by the banks directors
The officers Of the banks" ne
continued, "have expressed to the de
Jartmcnt the belief that there Will
ultimately be but little II any loss to
tie bank depcsitors. The LIQUIDATION
OF the banks and the distribution Of
ia assets will proceed as eXpeditiously
IS possible"
Clearing House Statement
After "A protracted meeting Of the
Pittsburgh ,lcaring house association.
the institution tonight issued the fol-
lpWng:
"The closing of the First Second
National bank by the deputy comp
nCllcr of the currency was not en-
urely unexpected by this association
ana II was therefore prepared for tho
Clss Tn members Of the clearing
h"use are an In good condition and
wc believe that the banks and trust
companies I'm the city Of Pittsburgh
a.' a whole, are prepared for any rm-
ciScncy."
During the early hours Of today
run was made on the Pittsburgh
pank for Savings. another kuhn in
stitution because Of the climax in the
affairs of the First Second National
All demands up to $50 We're paid
vithout Qu stion and notices or
4; rger amounts were asked. Tim m
stitution also made statement that
II had $4,000 600 In cash and quick
assets and was prepared for any
emergency. The run was over before
The closing OF tho banking hours and
III 9 not thought any anxiety over
this institution need be felt
The former First National bank
which was accredited as one OF the
ST. iongest banks IN the country. was
merged with the Second National
hank last March, the merged instltu-
ton takirs the name OF the two
bnnks. At the time Oscar 7. Telling,
formerly Of the comptroilers depart
mcnt and who was president Of the
Fist National was made vice presi-
tfnl VI int tbiIlblU'u NAllht hUu W
!. Huhn then Of the Second National
hank waa made president.
Today upon the closing of t.c
merged b8 nls e statement was gent
broadcast 10y the press agents IN which
the bank director WHOSE name cam
rot be used" was quoted az saving
The government was unjust and was
treating the bank unfairly. The
statement further quoted the unnam-
cl director as saying the government
was responsible for the merger OF
the two banks. because ID was sane
toned by Lawrence O. Murray. then
comptroller OF the currency. The
statement WAS almost Immediately re-
called by the distributors Of the re-
port but the recall in many places
was ignored
Previous to the bank merger the
Trhns were identified with the First
National Bank Of Allegheny on the
rurth side OF the city This fact
caused many rumors that this bank.
toe had closed its doors The REPORTS
were unfounded. however for the
huhns disposed of their interests and
resigned from all connection with that
bnnk some months ago.