Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-07-09
Secretary McAdoo Expects to
Ask Attorney General
to Investigate.
DECLARE Intervention
Is WARRANTED BY FACTS
Department Of Justice Probably Will
Determine if National Bank
Act Was Violated.

secretary McAdoo before the close OF
the day expects to ask Attorney Gen.
eral McReynolds to investigate alleged
irregularities In connection with the clos
ing Of the First-Second National Bank
OF Pittsburgh and determine whether the
national bank act has been violated.
Sufficient facts have been collected by
the Treasury Department. IL Is said. to
warrant immediate Intervention by the
Department of Justice.
Thomas p. Kane. acting controller of
the currency, who returned today from
pittsburgh. where he closed the First
Second National Bank. declared that
the First National Bank OF that city
should have been Cleaned up or closed
up at the time OF it's merger with the
Second National Bank several months
ago. The merger was authorized by
Lawrence 0. Murray. former controller
of the currency. At that time. Mr..
Kane declared today, the First Ma
tionars capital was badly impaired,
and the bank was notified last Decem-
ber that its impaired capital must be
restored. The controller added that the
condition Of the bank had been long
we'll known in banking circles In
Pittsburgh. New York and elsewhere.
Other Banks Solvent, He Says.
"The closing of the bank clears the
l UdHhIuS dHu HhdhCAdA dShOcPiaSAO -
Pittsburgh. Outside of this institution
the banking conditions there are ex-
ce1lent and there Is no cause for any
further anxiety" said he.
1.-The First National Bank of McKees
port. which suspended a few hours aftel
the F,irst-Second National Bank wal
closed, is arranging for resumption OF
business in q few days. The bank Is II
good condition and there was no reason
why it should have closed other than pe
cause Of the run that started on 1t D.
reason Of the Kuhn connection with tn
bank. The board of directors OF thii
bank will be reorganized and the kuni
interest eliminated before 1t Is reopened.
| Secretary McAdoo today continued prep
arations to refer the question Of alleged
irregularities in the First-Second Nationa
Bank to Attorney General McReynolds TO
investigation. United States Attorne!
Jordan of Pittsburgh already had mad
INQUIRIES OF Receiver Murray of the close,
bank as to when he should begin an IN
Quiry.
Heavy Withdrawals Contemplated.
Details of the causes which induced tn,
Treasury Department to close the banl
Monday morning became known today
with the return Of Controller Kane.
| He declared that information concern
| ing the governments surveillance of thu
| Dank leaked OUT, anu one UlS ucpOSltOl
| Withdrew 100000 last Saturday. Gov
/ ernment officials then learned that Othel
| big depositors contemplated making
1 heavy withdrawals Monday. To prevent
the large depositors from gaining the ad
vantage of saving their deposits at the
/ expense of little depositors, who were
| not aware of the circumstances, the gov
4 eminent refused to let the bank open.
| Assistant Secretary Williams. who re-
| turned last night from Pittsburgh, ex-
/ pressed the opinion that banking condi-
/ tions generally in Pittsburgh are sound.
Statement by Mr.. Williams.
Mr.. Williams issued this statement soon
after his arrival in Washington:
Members of the clearing house com
| mittee of Pittsburgh have assured the
department that the banking situation Is
now well in hand, and that they be-
lieye that the clearing house association
will be able to prevent any further
| trouble
iThe Secretary of the Treasury ex-
pressed a willingness to deposit $5.0O0.O0
Of government funds with the Pittsburgh
banks IL it should be needed. Apprecia-
| ton was expressed for the government s
readiness to help. but the Secretary was
advised that the money was not now
| needed"