Norwich bulletin., 1913-07-08
Bank s Capital
 Much Impaired
PlTTsBURG INSTITUTION ORDER
 ED CLOSED.
IN RECEIVERS HANDS
Mckeesport Bank and Other Enter prises Affected-"A Sporadic Case of Unsound Banking" Says McAdoo.

Pittsburgh, Pa, July 7.-The First second National Bank of Pittsburgh, the First National Bank of McKees- port, neighboring city, the American Waterworks and Guarantee Company and the Banking house of J. $. and w. s. Kuhn, Inc, of this city, were forced into the hands of receivers today through the failure of the first named institution to open its doors this mern- ing.
 Closing Ordered By Deputy Comptroller The closing of the First Second Nat 1ona1 Bank was ordered by the deputy comptroller of the currency, T. F. Kane, after every effort had been made to meet the government requirements as to the legal reserve. The Kuhn banking house has extensive interests in irrigation projects throughout the west, and mines and street traction systems throughout western Pennsyl- vania, besides being a dominant fac tor in the American Waterworks and Guarantee Company. w. s. Kuhn was president of the F'irst-Second Nation al Bank, ice-president and director in the banking house, and vice. president and director of the American Water works and Guarantee Company besides being director of the McKeesport bank.
 J. $. Kuhn was a director of the First-Second National Bank president and director of the American Water works and Guarantee Company; presi- dent and director of the McKeesport bank, and chairman of the board of directors of the banking house.
 No Statement until Night.
 When it was learned that the banks would have to suspend business steps were taken to protect the American Waterworks and Guarantee Company and the Kuhn's Banking house. and application was made in the federal court this afternoon for receivers for both institutions.
 Throughout the day a statement of the banks and affected companies aff- airs was awaited with feverish anxi- ety, but none was forthcoming until tonight when MT. Kane made a formal statement. No statement of the condi- tion of the bank was obtainable sub sequent to the one issued June 4, on the last bank call of the comptroller.
 Unable To Make Good Impaired
 Capital.
 Tonight MT. Kane issued the fol- lowing:
 At meeting of the directors of the Flrst-Second National Bank held on Sunday the condition of the bank and the results of the recent investigation of the bank examiners were discussed After full consideration the directors declared their inability to make good the banks impaired capital and with out dissent decided that it would be best for the protection of depositors and all other interests to have the comptroller of the currency take charge and arrange for the liquidation of the bank.
 Little Loss to Deposieors.
 The Pittsburgh clearing house com- mittee which has been engaged for the past four days in going over the aff- airs of the bank with the examiners and in making a careful investigation as to its condition refused to furnish enough to justify the bank in keeping It's doors open and agreed under the circumstances there was no aIterna- tive to the course recommended by the banks directors
 The officers of the bank have ex- pressed to the department the belief that there will ultimately be but little II any ICss to the banks depositors The liquidation of the bank, and the distribution of it's assets will proceed as expedltiously as possible"
 Clearing House Was Prepared,
 After a protracted meeting of the Pittsburgh clearing house association that institution tonight issued this statement:
 The closing of the First Second Ma lIoMIStl M bdnk Dy tne deputy comptroller or the currency was not entirely 11n- expected by this association 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 ot Pittsburgh as a whole, are prepared Tor any emergency. It will take seve- raj days to arrange for the transfer of accounts and the proper and careful handling of checks made on theFirst.- 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 clearing house committee and inc banks"