The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-07-08
MANY MILLIONS
ARE. INVOLVED

NEW YORK. July An amount
totaAlins between Sl56. 0o6. Geo and
sI75. Geo. 600 IN hank resources bonds
and stocks Of over forty public util-
nY companies and the finances Of a
private banking house js involved in
che failure Of the Ruins Of ritisburc,
through tire suspension of the two
national banks they controlled. and
the receiversh!pS for their private
banking firms and the Great American
Water Works and Guarantee com
pany. one IF tire MOST hugely api-
talzed concerns i'm the country, which
the kuhns controlled.
The size of the amounts of money
al stake astounded Wall street on
announcement of the failure TODAY. In
the memory Of banking mon here. the
suspension Of she FIRST Second Ma
tional bank alone, not considering the
closing Of the allied First National
bank, Of MCkeesport. NOR the receiver
ships for Bankers and t'tl5ty com
pany. was said Ia he ono OF tho 1arr-
est, IL not the record size failure for
a national bank,
It has liabilities Of close TO $40.
100000 with $3,4G0 GOO capital, 81.
o1i.ls9 surpIus and undivided profits.
and So, o2e. 6a6, deposits. The First
National bank, Of Mckecsport, has
liabilities of s4.541,ooe. with "A capt
tai Of s300. 600. n surplus of $3.50
asa, and deposits Of $33ST2S3
Huge Capitalization.
The american Water Works and
Guarantee company, tho largest com
panv IN :he country engaged in con-
structing and operating other water
works compa MES, gas. electric light
hest and power concerns. irrigation
plants and electric lnterurhan lines.
controls ever forty such companies
whose securities aggregate the ennr-
nous sum Of $lt0.1Is 500. of which
s7S,l2s 500 consists Of stocks ~ the
subsidiaries held by the controlling
company. The subsidiaries have n
funded debt of s3T.5sa 600 The con-
trolling company itself has capital
stock Of 100000 common. and
$4,000, 900 8 per cent preferred.
Despite the huge amounts Of
capital and security values involved in
the combined failures of banks and
companies. bankers here said that
New York institutions would he in "a
sTac.E degree affected by possible
loss.
Little Effect In New York.
The First Second National bank.
OF PittsburC. and the First National.
OF Mckesport. has a large number
of correspondents among the banks
OF this city. The heads Of these
banks were unanimous in saying that
New York banks would not he al
fected by the suspensions.
Announcement of the suspension
of the hiS Pittshurg bank was not al
together & surprise. The history Of
the bank In the last three years
spelled trouble that would sooner or
later come TO a crisis, said bankers
here today.
About three years ago Lawrence O,
Murray, then. and untll recently.
comptroller Of the currency. was Of
fered The presidency Of the First Ma
tional bank. 1t was then in bad con-
dition.
Negro Wife Is Ostrmcised.
Mr.. Murray refused the presidency.
Oscar L. Telling, an examiner. who had
been closely associated with MIR. Murray
in the department, however was offered
the job and accepted. with the arrival
Of Mr.. Telling, the AFFAIRS Of the bank
furore in PittsburE society through
having married a negro woman who
had heen his stenographer She was
NOT accepted tn pittsburg society and
the affair WAS reflected in the business
of the bank
Intudieious loans were made. Comp
troller Murray nursed the bank along
and finally iust before leaving office
approved 81 the merger with the Sec
ond National solely rs a means OF pull
ing up the conditions of the First ard
making combined Institution about
which there would Toe no question.
Oscar Telling. the president OF the
First National. who had gone from the
comptrolier's office, ceased Ia he presi
DENT after the merger. He became a
vice. president and was dropped from
this office on July LIST.
Kane and Murray at Outs.
II Is understood that Acting Comp
troiler Kane. who closed the bank to-
day and former Comptroller Murray.
who permitted the bank TO run during
his administration. have not been on
the most friendly ternls since Mr.. Muir
ray was elevated into the comptroll ar y
office over Afr kane's head by Presi s.
dent Roosevelt