The Washington herald., 1913-07-08
PITTSbURGHBANK'
ORDERED CLOSED.
Frst-Second National aad AL
lied Institution IN McKees-
port Suspend Business.
OUTLOOK Is OPTIMISTIC
Little Excitement Shown, and Clearing
House Association Looks for Best.
Receivers for Kuhn Interests.

Pittsburgh, July with the CLOSING
of two banks and the appointment OF
receivers for the Kuhn interests, repre-
senting $500, 900. 900. Pittsburgh today en-
tered upon financial crisis the outcome
OF which is not yet assured. The banks
we're the First-Second National Of Pitts
burgh and the First National Of Mckees-
port, both controlled by the Kuhn inter-
ests. j. S. Kuhn went into court this
afternoon and had receivers appointed
for j. S. and W. S. Kuhn. Inc, and the
American Water Works and Guaranty
Company, t.. latter being engaged in ir-
rigation projects in the West amounting
to s24.O00,OOo
Except for the anticipated visits to the
various banks in Pittsburgh by depos-
itors, following the closing of the banks,
and the temporary drawing out of small
accounts in some of the institutions, par
ticularly banks in which the Kuhns are
interested, the failures caused little ex-
citement. There were no runs anywhere.
All day small crowds were gathered
about the Kuhn banks, which were
guarded by policemen, but there was no
demonstration. Assurance has been
given depositors that in all likelihood
every cent will be paid, and soon
The Pittsburgh Clearing House Asso-
citation gave out a statement this even
ing of the banks would have no seri-
Gus effect and the association had the
situation well in hand. A meeting of
the association was held in the aft
,ernoon.
Closing Not Unexpected.
In financial and governmental circles
the closing of the First-Second Ma
tional was not unexpected. 1t was no
secret that there were serious diff
sculties between the United States
Comptroller's office and the officials Of
the bank as to the conduct of its af-
fairs, and officials of the bank have
been heard to complain of too much
governmental regulation"
After the meeting of the Pittsburgh
Clearing House Association this aft
ernoon this statement was made
through its officers:
The closing OF the First-Second Nation
al Bank by the Deputy Comptroller of the
Currency was not entirely unexpected by
this association, and it was, therefore.
prepared for the crisis. The members of
the clearing house are stili.in good con-
dition, and believe that the banks and
trust companies in the city of Pittsburgh.
as a whole, are prepared for any emer-
gency. 1t will take several days to ar
range for the transfer CT accounts and
proper and careful handling of checks
made on the First-Second National Bank.
We, therefore. ask the indulgence of the
public and request that they will help
in every way possible TO assist in the
solution of the problem which confronts
the clearing house committee and the
Banks" -..--
Bankers Are Optimistic.
All the bankers who attended the meet
ing of the association Were decidedly Opt
mistic, and the Situation was declared TO
be much better than many had expected
II to be.
The long-standing differences between
the Treasury Department OF the United
States and the officials of the bank con-
corning the value of certain securities of
the First National Bank of Pittsburgh.
rSyw merged with the Second National
Bank, under the title of First-Second
National of Pittsburgh, led to the closing
by order of Deputy Comptroller of the
Currency T. P. Kane.
Application was made before Judge
Charles P. Orr, of the United States Dis
trict Court, for receiver for the Amer
lean Water Works and Guarantee Com
pany of New Jersey this afternoon.
The following were appointed receivers
for the American Water Works and
Guarantee Company: ]. S. Kuhn. W. S.
Kuhn, and ]. F. Purdy. A fourth name
will be added later. receivership was
asked for the firm of ]. S. & W. S. Kuhn
Co. ]. X. Duff, treasurer of the COM
pany. was appointed, with a bond of
$4,000.