The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-07-08
FINANCIAL CRASH
BRINGS DISASTER
10 THREE BANKS
LContlnued From First rage.

Due TO othGr national banks 50
| 2S9,S7ISl W.
s1.iiS,11S.71
banks. S3.712.210.Sl
Due TO approved reserve ar.rt.
Sc52,535.4l.
Dividends unpaid, $3.50.
individual deposits subject to cheek.
| $lo. los, 1850.
| Demand certiticat.s ne d.no.i, s,S.
s56.o5. '''''
Time certificates of deposit. s,s.-
| o90.5Q. Wv
Certified checks. s472,S6slo
Cashiers checks outstanding. si6.-
| 2ls.3O. W.
United States deposits sl49.sl4.1S.
POSTAL savings deposits, Slu,45SS6.
| Total, S3S.l03SS6.3s.
MIR. kane's Statement.
Tonight Mr.. Kane issued the fol-
lowing statement:
~ meeting OF the directors of the
flrst- Second National Bank held on
sunday the condition of the bank and
me results or the recent Investigation
OIL the bank examiners were discussed
| After full consideration, the directors
declared their inability to make rood
the banks impaired capital, and with
Out dissent, decided that It would be
ana all other interests to have the
Comptroller OF the Currency take
charge and to arrange for the liouida
| ton of tho bank
The Pittsburgh Clearing House
committee. which has been engaged in
gong over the affairs OF the bank with
me examiners. and in making a care
iui investigation as 10 its condition
refused to furnish funds sufficient TO
hn,,lr
open. and agreed under the circum-
stances there was no alternative to the
course recommended by the banks di-
rectors.
The officers OF the bank have ex
pressed TO the department the belie1
that there will ultimately be but littl,
II any loss to the banks depositors.
Inc LIQUIDATION of the bank and the
distribution of its assets will proceed
ds eXpeditiously as possible"
Closing Not Unexpected.
After protracted meeting of the
pittsburgh Clearing House Association.
I thls institution tonight, issued the
following:
The closing of the First Second Ma
uonai Bank by the deputy COMPTROLLER
OF the curren;y was not entirely un-
| expected by this association, and it
was therefore prepared for the crisis
-
al III good condition, and we believe
mat the banks and trust companies in
the city OF Pittsburgh. as whole.
are prepared for any emergency II
VIII take several days 10 arrange for
the transfer OF accounts and the prom
err careful handling OF checks made
upon the First-Sccond National Bank.
we, therefore. ask the indulgence OF
the public, and request that they helm
10
solution OF the problem confronting
ne clearing house committee and the
banks
During the early hours of to-day n
run was made on the Pittsburgh Bank
Tor savings another Kuhn institution.
because OF the climax in the affairs OF
the First-Second National All demands
up TO $50 were paid without question
ana notice for larger amounts was
asked running thirty, sixty and ninety
Gays according to the amount demand
ed by the depositor. This institution
also made statement that IT had
S1,ocO,0OO in cash and quick assets and
was prepared for any emergency. The
run was over before the close of bank
ing hours. and il is not thought any
anxiety over this institution need be
felt
The former First National Bank.
which was accredited as one of tho
merged with the Second National Bank
last March, the merged institution
taxing the name of the two banks
Press Agents Statement
TO-DAY, upon the closing Of the
merged banks, statement was sent
Kuhn interests. in which n director Of
the bank. whose name could not be
used. was quoted as saying the gov
crhmcnt was unjust and was treating
the bank unfairly. The statements
quoted the unnamed director as saying
the government was responsible for
the merging Of the two banks because
1t was sanctioned by Lawrence O. Muir
ray. then Comptroller of tho Currency
The statement was almost immediatciv
recalled by the distributors of the re-
port' put the recall in many places was
ignored.
When application was made in the
Federal court this afternoon for re-
ceivers for the two Kuhn concerns
Judge {. l.. Orr appointed for the J.
>. W. > Kuhn Co. Inc. the two
kuhns and j. X Duff. treasurer of
me banking house. For the Water
WORKS and Guarantee Company were
appointed j. $. and w. S. Kuhn and
j. >. Purdy. general manager of the
company. with a fourth to be appoint
cd. The receivers are required 10 fur
nish $4,000 bonds.
Hc hHflIS OF the FIRST Second Ma
tional are tonight in the hands Of c.
| Z. Murray, who has been appointed
receiver. Bank men are taking some
| reinsurance in this appointment be-
cause of Mr.. Murray's successful wind
ing up of the affairs of the defunct
Allegheny National and Fort Pitt Ma
| tional Banks several years ago Mr.
Murray was a former bank examiner.
Said 10 be Temporary
Financial difficulty confronting Tho
kuhn interests Of Pittsburgh was the
cause OF the trouble. 1t Is said the trouble
rs only temporary. and that there is no
Immediate cause for alarm Heavy in
Ncstmcnt In water works preparations
coal and timber lands and intcrtirban
railway companies. together with the
financing Of an Office building, are
given as some of the causes leading up
10 to-day's suspensions An alleged
deficiency Of S2,l45.000 III the legal re-
serve OF the First-Second National Bank
an" the subsequent examination
brought matters to n climax
j. : and w :. Kuhn. Inc bankers.
known as the Kuhn interests are I'm