Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1913-07-11
BANKS ARE FORCED
TO SHUT UP DOORS
Large Institutions Are Now
in Receivers Hands.
COURT WOULD PROTECT FIRMS
Deputy Controller of Currency Says
He Made Move In Order to Pro-
tect Depositors and All
Other Interests.

Pittsburgh, Pa.-The First-Second
National bank of Pittsburgh, the
First National bank of McKeesport, a
neighboring city, the American Water
Works & Guarantee Co., and the
banking house of j. S. and w. s.
Kuhn, incorporated, of this city, were
forced into the hands of receivers
by the failure of the first named In
stitution to open its doors Monday
morning The closing of the First
Second National bank was ordered by
the deputy controller of the currency,
T. p. Kane, after every effort had
been made to meet government re-
Quirements as to legal reserve.
The Kuhn banking house has ex-
tensive interests in irrigation projects
throughout the west and mines and
traction systems throughout western
Pennsylvania, besides being domi-
nant factor in the American Water
Works & Guarantee Co.
w. S. Kuhn was president Of the
First-Second National bank, vice
president and director in the banking
house, and vice president and director
o. american Water Works &c
Guarantee Co., besides being direc-
tor of the McKeesport bank.
Would Save Big Firms.
j. S. Kuhn was a director of the
First-Second National bank, president
and director of the American Water
Works & Guarantee Co., president and
Al. Ia a,,1y nd
chairman of the board of directors of
the banking house.
When it was learned that the banks
would have to suspend business steps
were taken to protect the American
Water Works e Guarantee Co., and
the Kuhns' banking house, and ap-
plication was made in the federal
court in the afternoon for receivers
for both institutions.
Throughout the day a statement OF
the banks and affected companies
affairs was awaited with anxiety, but
none was forthcoming until at night.
when Mr. Kane issued the following
formal statement:
AT a meeting of the directors OF
the First-Second National bank held
on Sunday, the condition of the bank
and the results of the recent investi-
cation of the bank examiners were
discussed. After full consideration the
directors declared their inability to
make good the banks impaired cap
Nal and without dissent decided that
it would be best for the protection Of
depositors and all other interests to
have the controller of the currency
take charge and to arrange for the
liquidation of the bank. The Pitts
burg clearing house committee, which
has been engaged for the past four
days in going over the affairs of the
bank with the examiners and in max
ing a careful investigation as to it's
condition. refused to furnish funds
sufficient to justify the bank in keep
ing its doors open and agreed under
the circumstances there was no alter
native to the course recommended by
the banks directors. The officers of
the bank have expressed to the de-
partment the belief that tnere will
ultimately be but little if any loss to
ton of the bank and the distribution
of it's assets will proceed as expedi.
tiously as possible.
Run on Bank.
In the early hours of the day a
run was made on the Pittsburg
Bank for Savings, another Kuhn in
stitution, because of the climax in
the affairs of the First-Second Ma
tional. All demands up to $50 were
paid without question and notice for
larger amounts were asked running
80, 60 and 90 days. according to the
amount demanded by the depositors
This institution also made a state
ment that it had $5,00O,00O in cash anG
quick assets and was prepared fol
any emergency.
The run was over before the clos
ing of the banking hours.
The former First-National bank
which was accredited as one of the
strongest banks in the country, was
merged with the Second Nationa
bank in March, the merged institu
ton taking the names of the two
banks. All that time Oscar Telling
formerly of the controllers depart
ment, who was president of the
First National, was made vice presi
dent, and W. S. Kuhn then of the
Second National bank, was made
president.
The affairs of the First-Second Ma
tional are in the hands of C. c. Muir
ray, who has been appointed receiver
Naval Prisoner Gets Away.