Arizona republican., 1913-07-08
One is Ordered Closed by Representative of Comp troller of Currency and Others Are Forced into Receivers Hands
ONE SHORT ON
 LEGAL RESERVE F.
Institutions Looked Upon as Among Strongest of Pennsylvania, But Clos ing Will Not Seriously Affect Financial World
ASSOCIATED PRESS DIsPATcHl

ASSOCIATED PRESS DISPATCH
 PITTSBCRG, July 7.-The First Second National Bank of Pittsburg, the First National Bank of McKees- port q neighboring city, the American WaterWOrks and Guarantee company. and the banking house of j. S and W. $. Kuhn, incorporated, of this city were forced into the hands of re- ceiVers today through the failure of the first named institution to open it's doors this morning.
 The closing of the First Second Na- tional Bank was ordered by Deputy Comptroller of Currency T. P Kane after every effort had been made to meet the government requirements as to legal reserve. The Kuhn bank ing house has extensive interest in irrigation projects throughout the west and mines and street traction systems throughout western PennsyI- vania, besides being the dominant fac tor of the American Waterworks and Guarantee company. w. S Kuhn was president of the First Second National and was vice president and director of his banking house and vice presi- dent and director of the American Waterworks guarantee company, be- side being a director of the McKees- port bank
 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, and application was made to the federal court in the afternoon for receivers for both institutions.
 Throughout the day the statement of the banks and the affected com panies' affairs were awaited with few erish anxiety but none were forth coming until tonight. when Kane made q formal statement. No statement of the condition was obtainable supse- quent to the one issued on June on the last bank call of the comptroller.
 Tonight Comptroller Kane issued the following:
 At meeting of the directors of the First Second National Bank held on Sunday the condition of the bank and the results of the recent investga- tion by the bank examiner were dis cussed. After full consideration the directors declared their inability to make good the banks impaired cap- ital, and without dissent they de- cided it would be best for the pro- tection of depositors and all other interests to have the comptroller take charge and arrange for the Hquida- tion of the bank
 The Pittsburg clearing house com mittee which has been engaged the last few days in going over the af- fairs of the bank with the examiners and making a careful investigation of it's condition refused to furnish funds sufficient to justify the bank keeping it's doors open, and agreed under the circumstances that no alternative course could be received as recom- mended by the banks directors.
 "Officers of the bank expressed to the department their belief that ul- timately there would be little if any loss to depositors. Liquidation of the bank and the distribution of it's as sets will proceed as expeditiously as possible
 After a protracted meeting of the Pittsburg Clearing House association today that institution tonight issued this statement:
 "The closing of the First Second Ma tional Bank by the deputy comptroller of currency was not entirely uneXpect- ed by this association which was there fore prepared for the crisis. The mem bers of the clearing house are all in good condition and believe in the banks and trust companies of Pittsburg as a whole, and are prepared for any emer- gency It will take several days to ar range the transfer of accounts and the proper and careful handling of checks made on the First Second National. Therefore We ask the indulgence of the public and request that they help us in every way possible to assist us to arrive at a solution of the problem which confrOnts the clearing house committee and banks.
 During the early hours of the day, run was made on the Pittsburg Bank for savings. another Kuhn institution because of the climax of the affairs of the First Second National Bank. With draWals up to fifty were paid without a question but notice for larger amounts was asked running from thir- ty to sixty and ninety days according ta the amount demanded by the deposi- tors This institution also made a statement that it had $5.000,O00 of cash in quick assets and was prepared for any emergency. The run was over before the closing of banking hours
 (Coptinued on TWol