Las Vegas optic. (East Las Vegas, N.M.) 1908-1921, 1913-07-07
LEGAL RESERVE WAS SHORT
SHORTAGE OF 50, ,145,ooo CAUSES
GOVERNMENT TO TAKE I'M
MEDIATE ACTION
ALLIED BANK ALSO CLOSES
AMERICAN WATER WORKS, CON-
CONTROLLED BY BANKERS,
GOES INTO REcEivERsHlP

Pittsburgh, Pa, July IA series
of difficulties occupied Pittsburgh to-
day. The First-Seeond National bank,
one OF the largest Danks in the coun-
try, failed to open its doors. Within
short time the First National bank |
Of McKeesport. an adjoining city,
closed and during the afternoon re-
ceiyers were appointed for the Amer
ican Water Works and Guarantee
company, one Of the largest compan-
les Of its kind in the United States
and for the banking house Of J. s.
and w s. Kuhn, Incorporated. Also
during the day run was made on
the Pittsburgh Bank for Savings,
large institution.
The troubles were due to federal
government confronting the Kuhn in
terests of this city It is said the
embarrassment is only temporary and
that there is no immediate cause for
alarm. Heavy investments in water
works propositions and lands and IN
terurban railway companies, together
with the financing Of sky scrapeg
basic ana office building, are given
as some Of the causes leading Up =
today's suspensions.
The trouble first made its appear
ance in the First-seeond National
bank It is said the government has
been investigating conditions for the
past month or since June last,
when the last statement was made.
An alleged deficiency Of $2,145.OOO in
the legal reserve of the bank and the
subsequent examination brought mat
ters to a climax
Several thousand persons congre-
gated about the First-Second National
bank at noon A squad Of police was
necessary to keep the great crowd
moving.
The First Second Natsona. Bank
Of Pittsburgh, the second larg-
est in the city ana ,1ne Of
the largest in the country was
closed today by order Of the comp
troiler Of the currency. The First
National bank Of McKeesport, Pa, an
allied institution, also closed its
doors.
w. S. Kuhn and j. S. Kuhn own
the controlling interests in botn
banks and their closing led to per
sistent reports a receiver would be
asktLl for for the American Water
Works and Guarantee company, the
largest concern Of its kind in the
country, with which the Kuhns are
prominently identified. This concern
controls over 50 water works p!an9s
in the United states.
The Legal reserve Of the FirstSec-
ond National Bank Of Pittsburgh was
deficient BY s2,145,OOt on June 4, the
date Of the last call by the comp
troller Of the currency. This brought
the situation to a climax
The First-second National bank is
a recent concern Of the First and
Second National banks of Pittsburgh
and had deposits OF more than $50,
100000 The suspension Of the insti
tuition precipitated a run on the
Pittsburgh bank for savings Of which
j. S. Kuhn is president.
Differences OF long standing wilt
the treasury department concerninl
the character and value Of certain
assets Of the former First Nationa
bank Of Pittsburgh, which was mere
ed with the Second National hanl
| last March under the title Of tn
First-second National Bank Of Pitts
burgh, eliminated today in the clo'
| ing Of the bank BY order Of Deput
/ Comptroller Of the Currency 2. I
Kane.
The First National bank Of M'
/ Keesport, Pa. has closed its door
Secretary McAdoo was 50 advised =
+ day. ]. S. Kuhn, d hro1ner of ". s