The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-07-12
PITTSBURGH BANK FAILURE.
ONE OF BIGGEST BANKS IN RE
: CEIvERs HANDS.
Reported That DepOsitors Will be
Paid, Hut Stockholders VIII Lose
all They Had Invested. Failure the
Result of Unsound Methods.


can waterworks and Guarantee COM
pany and the banking house of j. 5.
and w. :. Kuhn, Inc, of this city were
forced into the hands OF receivers 20
day through the failure OF the first
named institution to open its doors
this morning. The closing of the
First-Second National bank waes or
dred by the deputy comptroller OF
currency, T. Il. Kane, after every eff.
fort had been made to meet the gov
eminent requirements as to the legal
reserve.
The Kuhn banking house has exten-
sive interests I'm irrigation projects
throughout the West, and i'm mines
and street traction syndicates through
out western Pennsylvania, besides be-
ing a dominant factor in the Ameri-
can Waterworks and Guarantee com
pany.
w. 3. Kuhn was president of the
First-Second National bank. vice pres
ident 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 n director of the
First-Seeond National bank was or
dent and director of the American
Waterworks and Guarantee company.
president and director OF the McKees-
port bank and chairman of the board
OF directors OK the banking house.
When IL 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 ana
application was made In the federal
court this afternoon for receivers for
both institutions.
Throughout the day statement Of
the banks and affected companies af-
fairs was awaited with feverish
anxiety. but none was Forthcoming
until tonight. when Mr.. Kane made "a
formal statement. No statement of
the condition OF the bank was obtain
able subsequent To the one issued
June 4, on the last bank call of the
comptroller.
The last statement of the banks
condition made up on call of the
comptroller at the close of business
June showed the resources were
$3s.iO3.Ss6. including loans and dis
counts $l5,7O4.9O1. and real estate
listed "a $1.71s.732.
Its liabilities include: Capital stock
paid In. $4,000. 900; surplus fund, ST.
100000. and undivided profits less ex-
penses and taxes paid. S25O,OGs.
Individual deposits subject to check
were $l5.lO6.i44 demand certificates
OF deposit s3s5,956; time certificates
of deposit. $4,000. and certified
checks. s472.SG9.
The bank held United States de-
posits OF S139.si4 and postal savings
deposits OF s1O.i5s.
Tonight Mr.. Kane issued the follow.
Ing statement:
AT n meeting of the directors OF
the First-Second National bank held
ON sunday the condition Of the bank
ana the resources of the investigation
OF the bank examiners were discussd.
After full consideration the directors
declared their inability To make good
the banks impaired capital and with
oct dissent decided that it would be
best for the protection of dcpositors
and all other interests To have the
comptroller Of the currency take
charge and To arrange for the lquida-
tiOn Of the bank.
The Pittsburgh clearing house
committee. which had been engaged
Iva going over the affairs of the bank
with the examiners and in making a
careful investigation as To it's con
dition refused To furnish funds SUI
hcient To Justify the bank la Keeping
'ts doors open. and agreed under the
circumstances there was no alternt-
tive to the course recommended by
the banks directors.
THE officers OF the bank have vx-
Pressed To- the department the belief
that there will intimately be- but lit
Ito II any loss To the banks deposi-
tors. The liquidation Of the bank dn /
the distribution of its assets viii pro.
ceed as expeditiously as possible"
After "A Protractcd meeting OF the
Pittsburgh clearing house association
this institution tonight issues the col
lowing:
The closing of the First Second
National Eauk hV the deputv comm