The Blackfoot optimist. [volume] (Blackfoot, Idaho) 1907-1918, 1913-07-10
First-Second National Closed BY Or
der Of Comptroller Of Currency o.
Account Of Impaired Reserves.

Plttsburg, July THE Frst-SecOnd
National bank Of Pittsburg, the First
National bank Of McKeesport. a neigh
boring city, the American Waterworks
and Guarantee company and the bank.
ing house Of J. S. and w. S. Kuhn,
incorporated, of this city, were forced
into the hands of receivers today
through the failure of the first-named
Institution to open its doors this
morning.
The closing of the First-Second Ma.
tlonal bank was ordered by the deputy
comptroller of the currency, T. p.
Kane, after every effort had been
made to meet the government require
ments as to the legal reserve.
The Kuhn banking house has extern
sive interests in irrigation projects
throughout the west, and mines and
street traction systems through west
ern Pennsylvania, besides being a do
minant factor in the American Water
works and Guarantee company.
Both Dominant Factors
w. S. Kuhn was president of the
First-Second National bank, vice
president and director in the banking
house, and vice president and director
Of the American Waterworks and
Guarantee company, besides being a
director of the McKeesport bank
j. S. 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.
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 Kuhns banking house, an.
application was made in the federal
court this afternoon for receivers for
both institutions.
throughout the day statement of
the banks and affected companies at
fairs was awaited with feverish
anxiety, but none was Forthcoming un-
til tonight, when Mr.. Kane made q
formal statement
Sporadic Case Of Unsound Banking
Washington, July 7.-Secretary Nc
AdOo, in statement tonight, declar-
ed that the general banking condition
In Plttsburg, as well as in the entire
country, was strong and sound, and
that he expected no further trouble as
a result of the failure of the Pitts
burg First-Second National bank.
"Ihe failure of the Pittsburg bank
Is simply a sporadic case of unsound
banking and has no other significance
the secretary said He added that tn.
receivership for this institution re
moved long-standing "sore spot" in
the Pittsburg situation, leaving the
general condition in that city sound
The secretary will make a sweeping
investigation of the causes of the ia i,
ure and probably will call upon
department of justice to assist the
treasury in unearthing any possible ir-
regularities in connection with the
collapse.
Discrepancy Found
1t developed tonight that one fact
which drew the critical attention and
Of the treasury department
to the banks condition was q discre-
pancy Of nearly $4,000, 900 between the
sworn statement to the comptroller of |
the currency as to the banks condition
on June 4 and what should have been
a true copy of this report published
by the bank in the newspapers of Pit
burg. The law requires every bank to
publish its reports to the comptrolle. /
Of the currency to his call in local !
newspapers, SO the public may know
The facts.
The report to the comptroller show