The Birmingham age-herald., 1913-07-08
National Bank of Pittsburg
and First National of
McKeespOrt Close
Doors
BIG WATERWORKS
co. AND THE KUHN
BANKERS ALSO FAIL
Stirring Scene in Pittsburg Following
Financial Disturbance--Many
Sections of South
Affected

pittsbnrg, July 7.-rhe First-second
National bank of Pittsburg. the First
National hank of McIxeesport. neigh
boring city. the American Waterworks
and Guarantee company, and the bank
Inc. of this city. were forced into the
hands of receivers today through the
failure of the hrst named institution to
open ats doors this morning.
The closing OF the First-Second Ma
tional bank was ordered by the deputy
comptroller of the cul IS. T. r. Kane,
after every effort had been made to
meet the government requirements as
to the legal reserve.
The Kuhn banking house has extern
sive interests in irrigation projects
throughout the west and in mines and
street traction systems throughout
western Pennsylvania. besides being a
dominant factor IN the American Wa
terworks and Guarantee company.
W. s. Kuhn was president of the
F'irst-seeond National bank, vice pres
ident and director in the banking house
and vice president and director OF the
American waterworls and Guarantee
company. besides being a director OF
the McI<eesport bank.
J. S. Kuhn was a director of the
First Second National bank. president
and director of the American Water
works and Guarantee company. presi-
dent and director OF the McKeesport
bank and chairman of the board of
directors Of the banking house.
Apply for Receivers
When IT was learned that the banks
would have to suspend business steps
were taken to protect the American
WaterworiSs and Guarantee company
and the Kuhns banking house and ap-
pliensios, was lDade in the federal court
this afternoon FOR receivers for both
ingtitutioas. Thlous hout tie day a
statement Of the banks and affected
companies affairs was awaited with
feversh anxiety but none was forth
coming tonight when Mr.. Kane made
formal statement. No statement of
the condition Of the bank was obtain
able subsequent to the one issued June
on the last bank call of the comp
troller
During the early hours OF today run
was made on the Pittsburg Bark for saw
ings. another Kuhn institution. because
of the climax in the affairs of the FIRST
Second National. All demands up to $50
were paid without question and notices for
larger amounts were asked, running 30. 60
and 30 days, according to the amount de-
manded by the depositor. This institution
also made statement that II had $780,
900 in cash and quick assets and was pre-
pared for any emergency. The run was
over before the closing of banking hours
and it is not thought and anxiety over
this institution need be felt.
The former First National bank, which
was accredited as one of the strongest
banks In the country, was merged with
The Second National bank last March.
the merged institution taking the name of
the two banks. At that time Oscar Tell
ing, formerly of the comptroller's depart
ment and who was president of the First
National, was made vice president of the
combined bank and w. s. Kuhn. then OF
the Second National bank, was made
president.
Government Unjust
Today upon the closing of the merged
banks statement was sent broadcast
by a press agent for the Kuhn interests
in which a director of the bank whose
name could not be used was quoted as
saying the government was unjust and
was treating the bank unfairly. The
statement further quoted the unnamed di
rector as saying the government was re-
sponsible for the merger of the two banks
because 1t was sanctioned by Lawrence
C.. Murray, then comptroller of the cur
rency. The statement was almost imme-
diately recalled by the distributors of
the report, but the recall III many places
was ignored.
Previous to the bank merger the Kuhns
were identified with the First National
bank of Allegheny, on the north side OF
the city. This fact caused many rum
<ors that this bank. too. had closed its
doors The reports were unfounded, how
ever for the kuhns disposed of their in
terests and resigned from all connection
with that bank some months ago,
Receivers Named
When application was made in the fed
eral court this afternoon for receivers for
the two Kuhn concerns. Judge C.~P. Orr
appointed for the ]. $. and w. S. Kuhn
company, Inc, the two kuhns and j. K.
Duff treasurer of the banking house For
the American Waterworks and Guarantee
company were appointed j. s. and W. s.
Kuhn and j. Fl. Purdy, general manager
Of the company, with fourth to be APP
pointed, Judge Orr being of the opinion
that one of the receivers should be one
having no financial interest in the COM
pany. The receivers are required to fur
nish $4,000 bonds.
The affairs of the First-Seeond National
are tonight in the hands of c. G. Murray,
who has been appointed receiver. Bank
men are taking some reinsurance in this
appointment because of Mr.. Murray's
successful winding up of the affairs of the
defunct Allegheny National and Fort Pitt
National banks several years ago. Mr..
Murray was a former bank examiner.
w. S. Kuhn has not been in Pittsburg
for some days, having been called to the