The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1913-07-10
D. S. MAY PROBE
BANK FAILURES
First-Second National Of Pitts
burgh Suspends.
REPORT SHOWS DISCREPANCY
Receivers Are Appointed TOR $4,000
GOO Waterworks Company Con-
tToiIed by the kuhns - Nc
Adoo Treasures Financiers.

Pittsburgh, Pa, July S.--CriminaT
prosecutions are expected as a result
of the suspension of the First-Second
National bank of Pittsburgh, one of
the largest financial institutions in the
country, of which w. S Kuhn is presi-
dent The bank had deposits Of more
than $30,OO0,OOO.
The circumstances on which the
probable prosecutions are based is the
discrepancy, of nearly 100000 be-
tween the sworn report to the comp
troller Of the currency as to the
banks condition on June 4 and what
should have been true copy OF this
report published In the Pittsburgh
newspapers.
The report to the comptroller
showed assets and liabilities aggregat-
ing $39,997, 347.10 each. while ae given
to the Pittsburgh newspapers for pub
LEGATION the report placed these totals
at $38,103,886.39 the 81 1893, 460.1 DIFF
ference representing rediscounts or
borrowed money Oficials declare that
this was illegal.
Other Failures Follow.
The closing of the F1rstSecond
bank was followed by action In rapid
series against various other interests
with which the Kuhns are Identified.
During the day there was run on the
Pittsburgh Bank for Savings, large
institution. of which J. s. Kuhn -
president Then came the closing OF
the First National bank Of Mckees-
port. an adjacent city, which IL closely
allied to the Frst-Second OF Pitts
burgh. Soon afterwards receiver
was appointed for the banking house
Of J. s. 4 w. 8. Kuhn, incorporated.
Greatest of all disasters in this tre-
mendous financial crash, however, was
the receivership for the American Wa
terworks and Guarantee company, the
largest concern Of its kind In the
country, of which J. 8. Kuhn is presi-
dent This corporation controls water
works plants in about eighty cities and
towns in the United States, and the
capital stock Of the various con-
trolled companies approximates $780,
900 900
The one consoling feature Of the sit
uation was reassuring statement
sent out from Washington by Secre
tary Of the Treasury McAdoo. in which
he declared that the general banking
condition in Pittsburgh, as well as in
the entire country was strong and
sound, and that he expected no fur
Their trouble as a result of the failure.
Investigation to Result.
The secretary will, it is said, make
sweeping investigation of the causes
Of the failure Of the big bank and
probably will call upon the department
of Justice to assist the treasury in un-
earthing any possible irregularities in
connection with the collapse
The closing Of the First-Second Ma
tional bank was ordered by Deputy
Comptroller of the Currency T. p.
Kane after every effort had been made
to meet the government requirements
as to legal reserve.
The Kuhn banking house has extern
sive interests in irrigation projects
throughout the west, and mines and
street traction systems throughout
western Pennsylvania, besides being
dominant factor in the American
Waterworks and Guarantee company.
When it was learned that the bank
would have to suspend business steps
were taken to protect the American
Waterworks and Guarantee company
and the Kuhn banking house, and ap-
plication was made In the federal
court for receivers for both institu-
tinpS