Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-07-07
FNst-Second National
Of Pittsburgh and
McKeesport First
National Fail.
RECEIVER APPOINTED FOR
A $73,OOO,O 900 COMPANY
Run Is Made Upon Savings
Bank When Depositors Hear
of Closing of Great Institu-
ton Nearby.

PITTSBURGH. Pa. July THE
First-Second National Bank, of
Pittsburgh, the second largest in the
city, and one of the largest in the
country, was closed today by order
of the comptroller of the currency.
The First National Bank, of Nc
Keesport, Pa, an allied institution,
also closed its DOORS
w. S. Kuhn and j. S. Kuhn own
the controlling interests in both
banks. and their closing led TO the
persistent rumor that a receiver
would be asked for the American
Water Works and Guarantee Com
pany, the largest concern of it's kind
in the country, with which the Kuhns
are prominently identified
This concern controls over forty
water works plants in the United
States.
Differences between the officials of
the First-Second Bank and the treas
ury department over the character of
the banks assets are said to have led
to the order closing its doors No de-
tails of the differences had been an
nounced by the treasury department
this afternoon The First-Second
National Bank is a recent consolida-
ton of the First and Second National
banks of Pittsburgh, and has de-
posits of more than 100000 000
The suspension of the institution
precipitated a run on the Pittsburgh
Bank for Savings, of which ]. S. Kuhn
is president.
Attorneys this afternoon appeared
before Judge C. P. Orr in the Federal
Court and asked for receivers for the
American Water Works and Guaran-
tee Company and also for the firm of
J. S. and w S. Kuhn, Inc. For the
former these were appointed: ]. S.
Kuhn, w. s. Kuhn, J. H. Purdy, gem
eral manager of the company, and
Samuel Bailey. jr., a bank official of
this city.
For the Kuhn Company was ap-
pointed j. K. Duff, who is treasurer
of the company. Bonds of $4,000
were ordered filed for each receiver.
The legal reserve of the First-Sec-
ond National Bank of Pittsburgh was
deficient by s2,145,000 on June 4, the
date of the last call by the comp
troller Of the currency. This brought
the situation to climax.
Suspensions Cause Excitement.
The suspension of the First-Second
National Bank, of Pittsburgh, and
First National Bank, of McKeesport,
caused considerable excitement in the
downtown district Shortly before
noon the following notice was post
ed en- the doors of the First-Second
Bank;
Payment of all items maturing
here will be received.
(Signed)
&C. C. MURRAY, Receiver"
AS word of the suspension of the
First-Second National Bank became
generally known depositors of the
Pittsburgh Bank for Saving, located
a few blocks away, started a run on
that institution. ]. S. Kuhn is presi-
dent of this bank
Several thousand persons congre-
gated about the First-Second Ma
tional Bank at. noon. A squad of
police was necessary to keep the
great. monday crowd on the move.
Later 1t was said that such an ex-
animation as national officers had
been able to make of the First Second
Nationals condition indicated that at
least one-third of its $34o0,OO capital
was impaired.
The officers of the First Second Ma
tional Bank. of Pittsburgh. are: w.
S. Kuhn, president, and j. NJ. Young,
William McConway and Oscar L.
Telling, vice-presidents. Mr. Young
is also cashier.
Has Plants in Eighty Cities.
w. S. Kuhn is also vice-president
OF the American Water Works and
Guarantee Company of which j. S.
Kuhn is president. The company
CONTROLS water works plants in about
eighty cities and towns in the United
States. The capital stock of the
various controlled companies is about
S73 900. 5000.
The First National Bank of Nc
Keesport, today posted this notice:
'On account of the First-Second Ma
tional Bank of Pittsburgh asking
for a receiver it is thought best for
all of our depositors to close this
bank for the present"
The last statement of the bank S
condition made upon call of the
comptroller as of close of business
June 4:
Resources-Loans and discounts
SIS, ,704. .901.16: overdrafts. secured and
unsecured, $2.571.76; U. S. bonds to
secure circulation, $1,900,000; U. S.
bonds to secure U. S, deposits. s171,-
600; u. S. bonds on hand, $4,000;
premiums on U. S. bonds, $40,12126;
bonds. securities, etc. $S,549, 1853;
banking house. furniture and fixtures,
s176755.04; other real estate owned,
$1.541.977.65: due from national banks
(not reserve agents., s1.17s, ,9S706; due
from State banks and bankers, ST.
S16, ,S20.23: due from approved reserve
agents, s.,216, 6,447.75.
Tie Kuhn interests have centred
lorgcly of la!e in irrigation projects
n the West. Tney also control the
West Penn Traction and Water
Power Company, n combination of
trolley line interests ia-western Penn
~ ,y,vania and the operations of a
group of bituminous mines in this
State especially the United Coal
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