16712. First Second National Bank (Pittsburg, PA)

View Charter #252 on SPMC

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
252
Charter Number
252
Start Date
July 7, 1913
Location
Pittsburg, Pennsylvania (40.441, -79.996)

Metadata

Model
gpt-5-mini
Short Digest
1ff23a01d35d20c7

Response Measures

None

Receivership Details

Date receivership started
1913-07-07
Date receivership terminated
1914-04-25
OCC cause of failure
Losses

Description

The First-Second National Bank of Pittsburg was closed by order of the Acting/Deputy Comptroller of the Currency on 1913-07-07 (placed in receivership). This was a government-ordered suspension due to impaired capital/assets and discrepancies found by examiners. The bank remained in receivership but was reorganized and reopened in late April 1914. Although newspapers report runs on other local institutions (e.g., Pittsburg Bank for Savings, First National of McKeesport), the First-Second itself was closed by government action rather than described as suffering a depositor 'run' prior to suspension.

Events (6)
1. February 13, 1864 Chartered
Source
historical_nic
2. July 7, 1913 Receivership
Source
historical_nic
3. July 7, 1913 Receivership
Newspaper Excerpt
When application was made ... Judge C. P. Orr ... appointed C. C. Murray receiver. ... the bank was ordered closed and placed in the hands of receivers/treasury officials took charge of the First-Second National bank of Pittsburg today because its directors ... expressed their inability to make good an impairment of its capital and decided ... the acting comptroller to take the situation in hand. (Secretary McAdoo statement).
Source
newspapers
4. July 7, 1913 Suspension
Cause
Government Action
Cause Details
Closed by order of the Acting/Deputy Comptroller of the Currency (T. P. Kane) due to impaired capital, disputed valuation of assets, and failure to meet legal reserve requirements.
Newspaper Excerpt
Differences of long standing with the Treasury Department ... culminated this morning in the closing of the institution by order of T. P. Kane, deputy controller of the currency.
Source
newspapers
5. April 25, 1914 Restored To Solvency
Source
historical_nic
6. April 27, 1914 Reopening
Newspaper Excerpt
The First-Second National Bank of Pittsburgh ... will reopen tomorrow morning with a new management and a new board of directors ... capital $4,000,000, surplus $950,000. The government is today redepositing in the bank ... more than $12,700,000.
Source
newspapers

Newspaper Articles (25)
1. July 7, 1913 Evening Star Washington, DC
Article from Evening Star, July 7, 1913

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of First-Second National Pittsburgh in Dispute Over Assets. ALLY AT McKEESPORT ALSO DISCONTINUES President of Pittsburgh Institution Head of Business Interests in Eighty Cities. PITTSBURGH, Pa.. July 7.-Differences of long standing with the Treasury Department concerning the character and value of certain assets of the former First National Bank of Pittsburg. which was merged with the Second National Bank last March, un der the title of the First-Second No tional Bank of Pittsburgh. culminated this morning in the closing of the institution by order of T. P. Kane, deputy controller of the currency Unable to Adjust Differences. Directors and officers of the Institu. tion were in session all day yesterday and most of last night with special bank examiners sent here to investigate the bank. and at an early hour this morning notices were posted on the bank doors that it had been ordered closed. The Pittsburgh Clearing House Association has taken charge of the situation generally and announces that no further trouble is expected. A statement will be issued by it later in the day. None of the officials of the bank would make a statement this morning. announcing that affairs were in the nands of the government officials. The First National Bank of McKees po.t, an allied insulution of the FirstSecond National Bank of Pittsourgh, closed its doors later in the day, posung this notice: "On account of the First-Second Na 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 notice was unsigned. Last Statement of Condition. The last statement of the First-Second National Bank's condition, made up on ca.1 of the controlier at the close of busi. ness June 4, was as follows: Resources: Loans and discounts, $15,704,801.16. Overdrafts, secured and unsecured, sa. 571.76 United States bonds to secure circuistion, $1,900,000. United States bonds to secure United States deposits, $171,000. United States bonds on hand. $16.000. Premiums on United States bonds, $10, 121.26. Bonds. securities, etc., $8,549,236.93 Banking house, furniture and fixtures, $176,755.04 Other real estate owned, $4,541,977.65 Due from national banks (not reserve agents). $1,178,987.06 Due from state banks and bankers, $1,316,820.23 Due from approved reserve agents, $4,216,447.75. Checks and other cash items, $160.076.23. Exchanges for clearing house, $692,230.42. Notes of other national banks, $360.000. Fractional paper currency, nickele and cents, $13,237.88. Lawful money reserve in bank. viz. specie and legal tender notes, $1,881,023. Redemption fund with United States Treasury (5 per cent of circulation), $93,000 Due from United States Treasurer, other than 5 per cent redemption fund, $87.500. Total, $38,103,886.39. Other Side of Ledger. Liabilities: Capital stock paid in. $3,400.00. Surplus fund. $1,700,000. Undivided profits, less expenses and taxes paid. $250,068.45 National bank notes outstanding, S1.882,900 Due to other national banks. $9.239. 871.82 Due to state banks and bankers, 1. 148,118.71 Due to trust companies and savings banks, Due to $3,712,210.31. approved reserve agents, $232. 535.41 Dividends unpaid. $1.630. Individual deposits subject to check, $15,105,144.50 Demand certificates of deposit, 8385 936.05 Time certificates of deposit. $16,090.30 Certified checks, $472,869.10 Cashier's checks outstanding, $76. 218.30. United States deposits, $149,814.18. Postal savings deposits, $10,458.86 Total, $38,103,886.39 Receivers Appointed. Attorneys this afternoon appeared beJudge C. P. Orr in the federal court fore asked for receivers for the American and Water Works and Guarantee Company. and also for the firm of J. S & W S Kuhn. Inc. these were appointed For the former Juhn, J H. Purdy. J. S. Kuhn. W. S. company. and manager of the this general Samuel Bailey, jr. a bank official of city the Kuhn company was appointed comFor who is treasurer of the pany J. K. Duff, Bonds of $50,000 were ordered filed for each receiver. S. Kuhn. incorporated, known J. S. & W. as the Kuhn interests $500,000. are bankers, incorporate in Delaware James with a Kunn cap. ital stock of board of directors. is chairman of the W. S Kuhn vice S. is and his brother. also president of Water president. James Works and Guar with a the American capital of $20,000.00 and Kuhn W. S. tee Company is vice president of this company. interests have centered The Kuhn in irrigation projects in largely of late also control the West Penn the west. Traction They and Water Power Com-

2. July 7, 1913 The Washington Times Washington, DC
Article from The Washington Times, July 7, 1913

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Receivership To Be Requested, Is Report PITTSBURGH July 7.-Following the closing of the First-Second National Bank. it is rumored here this afternoon that a receivership is to be asked for the American Waterworks and Guarantee Company. W. S. Kuhn is president and J. S. Kuhn vice president of this company, as well as principal owners. The company controls bituminous coal mines. water and irrigation works in many Western States, and is capitalized at $20,000,000.

3. July 7, 1913 The Fairmont West Virginian Fairmont, WV
Article from The Fairmont West Virginian, July 7, 1913

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U.S. AND BANK FAILED TO AGREE CLOSES DOORS TEMPORARY HALT OF FIRST-SECOND OF PITTSBURGH ORDER. ED BY COMPTROLLER. DISPUTED VALUATION OF CER. TAIN ASSETS CAUSES FEDER. AL EXAMINERS TO PROBE. CLEARING HOUSE GIVES ASSUR. ING REPORTS OF INSTITU. TION'S COMPLETE SOLVENCY. --(BY ASSOCIATED PRESS) PITTSBURGH, Pa., July 7.-Differences of long standing with the Treasury Department concerning the character and value of certain assets of the former First National Bank of Pittsburgh which was merged last March with the Second National under title of First-Second National bank of Pittsburgh, culminated today in (13. ing of the institution by orders of Deputy Comptroller of Curency T. P. Kane. Directors and officers of the institution were in session all day yesterday and most of last night with special bank examiners sent here to investigate the bank and at an early hour this morning notices of the closure were posted on the bank doors. The Pittsburgh Clearing House Association has taken charge of the financial situation and gives out assu:ances that everything is well in hand and no further trouble is expected. A statement will be issued later in the day. None of the bank officials would make a statement saying the bank's affairs were in hands of the government. Excitement Is High. The suspension of the First-Second National bank of Pittsburgh and the First National Bank of McKeesport caused considerable excitement in the down town district. Shortly before noon the following letter was posted on the door of the First-Second bank: "Payment of all Items maturing here will be received. C. C. Murray. receiver." Starts Run. As word of , the suspension of the bank became generally known the (Continued on

4. July 7, 1913 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, July 7, 1913

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CLOSING OF BANK INVOLVES40 MILLIONS One of the Oldest Institutions in Pittsburg Ordered by U. S. Comptroller to Suspend. PITTSBURG, July 7.-The FirstSecond National Bank of Pittsburg, one of the city's oldest banking institutions, closed its doors to-day by direction of the Acting Comptroller of the Currency. The amount involved is said to be between $24,000,000 and $40,000,000. One report is that the amount will reach $200,000,000. The Pittsburg Clearing House had a special meeting last night to consider the impending failure and today another conference was held. Hundreds of depositors, many of them foreigners employed in the great steel mills, flocked to the bank early to-day but a squad of police kept every one moving. The First and Second National, Banks combined last March and OCcupied a new 25-story building. A typewritten notice on the doors stated the institution was in the hands of National Bank Examiner Samuel M. Hann and Sheriff Smith. A director of the bank to-day made the following statement: "The officers and directors are a unit in maintaining that a great injustice has been done and that the bank is solvent at this moment. We are also convinced that all claims will be paid in full. If the Treasury Department, operating through the Comptroller of the Currency, had not interfered and had not subjected the bank to a rigid examination by special examiners who were not able to judge values of property and securities in this community, we would have been able to work out to success our problems."

5. July 8, 1913 Amarillo Daily News Amarillo, TX
Article from Amarillo Daily News, July 8, 1913

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ALLIED BANK CLOSED, AND WATERWORKS CO. GOES INTO RECEIVERSHIP DISPUTE WITH TREASURY Closing of These Great Institutions Said to Be Climax to Long Quarrel as to Value of Assets By Associated Press. PITTSBURG, Pa., July 7.-FirstSecond National Bank, a consolidated institution, and one of the largest in the country, was closed today by order of the comptroller of currency. The First National Bank of McKeesport, Pa., an allied institution also closed. W. S. Kuhn and J. S. Kuhn brothers. own the controlling interest in bot banks, also the American waterworks and Guarantee company, which owns forty waterworks plants in various parts of the country. Late this afternoon, attorneys asked appointment of a receiver by the Federal Court for the waterworks company, also for the firm of J. S. and W. S. Kuhn, incorporated. The receivers appointed for the waterworks company: J. 8. Kuhn, W. S. Kuhn, J. H. Purdy, Samuel Bailey Jr. and for the Kuhn Company: J. K. Duff. The First-Second National Bank has deposits of $30,000,000, the capital stock is $3,400,000. The closing comes as the climax of a long quarrel with the treasury over the value of assets. On June 4. the reserve was more than $2,000,000 below the legal requirement. A run began today on the Pittsburg bank for savings, of which J. S. Kuhn is president.

6. July 8, 1913 The Wheeling Intelligencer Wheeling, WV
Article from The Wheeling Intelligencer, July 8, 1913

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B. KS CLOSE HEIR DOORS AT PITTSBURG FIRST-SECOND NATIONAL CLOSED BY ORDER OF GOVERNMENT. Bank Is Owned By Kuhn Interests and Other Banks Not Affected. Statements Issued. The PITTSBURGH, Pa., July First-Second National bank. of Pitts burgh, the First National bank. of Me. Keesport. a neighboring city: the American Water Works and Guarantee company and the banking house of J. S. and W S. Kuhn, Inc., of this city, were forced into the hands of receive ers today. through the failure of the first named institution to open its doors this morning The closing of the First-Second National bank was ordered his the deputy comptroller of the currency T. P Kane, after every effort had been made to meet the government require ments as to the legal reserve The Kuhn banking house has extengive interests in irrigation projects throughout the west. and mines and street traction systems throughout western Pennsylvania, besides being a dominant factor in the American Water Works and Guarantee company W S. Kuhn was president of the First-Second National bank, vice. president and director of the American Water Works and Guarantee com pan besides being a director of the McKeesport bank J S. Kuhn was a director of then First Second National bank president and director of the American Water Works: and Guarantee company prest dent and director of the McKeesport bank and chairman of the board of directors of the banking house When is was learned that the banks suspend business steps taken to protect the America Water Works and Guarantee pany and the Kuhns banking house and application was made in the incleral court this aft ernoon for receivers (or both Institutions Throughout the a statement . bank and affected companies of. fairs was awaited with feverish enx. lety. but none was forthcoming until tonight when Mr Kuhn made R formal statement of the the bank was obtainable issued June the last bank of the comptroller. Kane's Statement. Tonight Mr Kane issued the follow the dirtetors the National if bank the recent Investi xaminers Impair that arrange the for learning in dine and to night issued of the Na and for the and the Bank Bank of Continued on Page Eight."

7. July 8, 1913 South Bend News-Times South Bend, IN
Article from South Bend News-Times, July 8, 1913

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bank last March, the merged institution taking the name of the two banks. Monday upon the closing of the merged institution, a 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 director as saying the government was responsible for the merger of the two banks, because it was sanctioned by Lawrence Murray, then comptroller of the currency. The statement was almost immediately recalled by the distributors of the report, but the recall in many cases 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 rumors that this bank too had closed its doors. The reports was unfounded, however, for the Kuhns disposed of their interests and resigned from all connection with the bank some months ago. Kuhns in Charge. When application was made in the federal court Monday afternoon for receivers for the two Kuhn concerns, Judge C. P. Orr appointed for the J. S. and W. S. Kuhn Co., inc., the two Kuhns and J. K. Duff, treasurer of the banking house. For the American Water Works and Guarantee Co. were appointed J. S. and W. S. Kuhn, J. H. Purdy, general manager of the company, with a fourth to be appointed, Judge Orr being of the opinion that one of the receivers should be one having no financial interest in the company. The receivers are required to furnish $50,000 bonds. The affairs of the First-Second National Monday are in the hands of C. C. Murray, who has been appointed receiver. Bank men are taking some reassurance 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.

8. July 8, 1913 The Richmond Virginian Richmond, VA
Article from The Richmond Virginian, July 8, 1913

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SECRE TARY M'ADOO MAKES STATEMENT DEFUNCT BANK A SORE SPOT HANDED DOWN FROM LAST ADMINISTRATION. SITUATION IS GOOD MERELY SPORADIC CASE OF UNSOUND BANKING AND NO FURTHER TROUBLE IN PITTSBURG EXPECTED. WASHINGTON, July 7.-Secretary of the Treasury McAdoo late today issued the following statement on the closing of the First-Second National bank of Pittsburg, and the First National bank of McKeesport: "The acting comptroller of the currency took charge of the First-Second National bank of Pittsburg today because its directors in a meeting held at Pittsburg yesterday expressed their inability to make good an impairment of its capital and decided that the wise thing for all interests was for the acting comptroller to take the situation in hand. The Pittsburg Clearing House association, which has had the matter under consideration for sev. eral days, had in the meantime also decided that it was inexpedient to furrish the amount of assistance required to keep the bank going. Sore Spot For Some Time. "This bank. which was handed down from the last administration. has for some time been a sore spot in the local situation and its liquidation became Inevitable. "The general banking situation In Pittsburg is sound and no further trouble with banks is expected. "The acting comptroller has no alternative in the circumstances but to take charge of the First-Second National bank in order to prevent the withdrawal of large accounts which has already begun and to secure for the small depositors equal treatment with the lenge -- maill

9. July 8, 1913 East Oregonian : E.O Pendleton, OR
Article from East Oregonian : E.O, July 8, 1913

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BANKING CONDITION OF COUNTRY SOUND DECLARES M'ADOO Pittsburg, July 8.-Despite the announcement by treasury officials and financiers that banking conditions are sound, the run which started yesterday on a Pittsburg bank for savings continued today. The institution is controlled by the Kuhn interests, the owners of the majority of the stock in the First-Second National which closed yesterday. Washington, July 8.-Secretary McAdoo, in a statement last night declared that the general banking condition in Pittsburg as well as in the entire country was strong and sound and that he expected no further trouble as a result of the failure of the Pittsburg First-Second National bank. "The failure of the Pittsburg bank simply a sporadic case of unsound banking and has no other significance." the secretary said. He added that the receivership for this institution removed a long standing "sore spot" in the Pittsburg situation leaving the condition in that city sound. Will Make Investigation. The secretary will make a sweeping investigation of the causes of the failure and probably will call upon the department of justice to assist the treasury in unearthing any possible irregularities in connection with the collapse. It developed that one fact which drew the critical attention and suspicion of the treasury department to the bank's condition was a discrepancy of nearly $2.000,000 between the sworn statement of the comptroller of the currency as to the bank's condition on July 4 and what should have been a true copy of this report published by the bank in the newspapers of Pittsburg. Reports to the department indicate that one-third of the $3,400,000 capital stock of the bank has been impaired and that the surplus and profits have been wiped out. While details are lacking, estimates based upon the last report to the comptroller of the currency indicate that at this rate the losses migh reach $3,000,000.

10. July 9, 1913 The Daily Ardmoreite Ardmore, OK
Article from The Daily Ardmoreite, July 9, 1913

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THOSE SEEKING THEIR DEPOS. ITS THIS MORNING FEWER THAN USUAL. STATEMENT OF KANE Says First National Bank of Pittsburg Should Have Been Closed at the Time of its Merger With the Second National Bank. Pittsburg, Pa., July 9.-When the Pittsburg Bank for Savings opened for business this morning the run, which started Monday upon the closing of the First-Second National bank was resumed but not in such a volume as on the two preceding days. Those who came to deposit found difficulty in being waited on quickly and there were complaints from these. President W. T. Jones, who was elected yesterday, said that it was a demonstration of confidence in the bank.

11. July 9, 1913 The Daily Telegram Clarksburg, WV
Article from The Daily Telegram, July 9, 1913

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By the Department of Justice Declares Secretary of the Treasury. DEPOSITOR'S ACTION In Withdrawing a Large Amount of Money Cause of Closing Bank. (BY ASSOCIATED PRESS) (BY ASSOCIATED PRESS) WASHINGTON, D. C., July 9Secretary McAdoo before the close of the day expects to ask Attorney General McReynolds to investigate alleged irregularities in connection with the closing of the First-Second National Bank of Pittsburg and determine whether the national bank act had been violated. Sufficient facts have been collected by the treasury department it is said, to warrant immediate intervention by the Department of Justice. Thomas P. Kane, acting comptroller of the currency, who returned today from Pittsburg, where he closed the First-Second National Bank, declared that the First National Bank of that city should have been closed at the time of its merger with the Second National Bank several months ago. The merger was authorized by L. O. Murray, former comptroller of the currency. At that time Mr. Kane declared today the First National's capital was badly impaired and the bank was notified last December that its impaired capital must be restored. The comptroller added that the condition of the bank had been long well known in banking circles in Pittsburg, New York and elsewhere. "The closing of the bank clears the banking and financial atmosphere of Pittsburg. Outside of this institution the banking conditions there are excellent and there is no cause for any further anxiety," said he. The First National Bank of McKeesport, which suspended a few hours after the First-Second National Bank was closed, is arranging for resumption of business in a few days. The bank is in a good condition and there was no reason why it should have closed other than because of the run that started on it by reason of the Kuhn connection with the bank. The board of directors of this bank will be reorganized and the Kuhn interests eliminated before it is reopened. United States Attorney Jordan, of Pittsburg, already has made inquiries of Receiver Murray of the closed bank as to when he should begin an inquiry. Details of the causes which inducedithe treasury department to close the bank Monday morning became known today with the return of Comptroller Kane. He declared that information of the government surveilance of the bank leaked out and one big depositor withdrew $200,000 last Saturday. Government officials then learned that other big depositors contemplated making heavy withdrawals Monday. To prevent the large depositors from gaining the advantage of saving their deposits at the expense of little depositors who were not aware of the circumstances, the government refused to let the bank open.

12. July 9, 1913 East Oregonian : E.O Pendleton, OR
Article from East Oregonian : E.O, July 9, 1913

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DEPOSITORS TO BE PAID FULLY HOPEFUL VIEW IS TAKEN Financial Situation Seems Brighter Following Failure of Pittsburg First-Second National Bank-Directors Reorganize-Kuhn Interests Eliminated. PITTSBURG, July 9.-A more hopeful view was taken of the financial situation, following the failure of the First-Second National bank. It is now expected the depositors will be paid in full. The board of directors of the bank are reorganized and the Kuhn interests will be eliminated before the bank is reopened. Agents of the treasury department are investigating charges that dummy loans were made. W. S. Kuhn, president of the institution, is expected to arrive some time today to assist in straightening out affairs. An application for receivers was made in the federal court for the six subsidiaries of the American Waterworks and Guaranty company.

13. July 10, 1913 Pine Bluff Daily Graphic Pine Bluff, AR
Article from Pine Bluff Daily Graphic, July 10, 1913

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WILL PROSECUTE BANK OFFICIALS Startling Evidence Before McAdoo Concerning Recent Bank Failure. WAS MISMANAGED Clerks and Others in the Pittsburgh Bank Were Given Big Loans. Washington, July 9.-Startling evidence of mismanagement of the FirstSecond National Bank of Pittsburgh is believed to have been brought here today by Comptroller of the Currency T. T. Kane. as the result of a personal investigation of the bank's affairs. Mr. Kane laid before Secretary of the Theasury McAdoo facts which, it is reported, shows conclusively that many large loans were made to clerks, stenographers and bookkeepers in the bank and other dummies. The Secretary refused to make these facts public, but immediately communicated some of the more serious ones to the Department of Justice. Treasurery officials seem confident that criminal prosecution will soon be begun, but whether W. S. and J. S. Kuhn, president and director respectively of the wrecked institution, will depend upon further developments. National bank examiners are still at work on the books and until they report fully no criminal proceedings will be started. Attorney General MacReynold's agents are, however, already trying to place the responsibility for the conditions which have been brought to his attention. That the Kuhns must withdraw their interests from the First National Bank of McKeesport, Pa., before it can be reopened, is the determination already reached by Treasury officials. The run on this institution was caused solely, it is said, by the connection of the Kuhns with it.

14. July 10, 1913 The Richmond Virginian Richmond, VA
Article from The Richmond Virginian, July 10, 1913

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PITTSBURG'S BANK SITUATION SHOWS BIG IMPROVEMENT Run on Bank for Savings Heavy in Forenoon But Checked PUBLIC CONFIDENCE MAY BE RESTORED Optimistic Statement of Treasury Officials Seem to Bear Fruit---Kuhn Refuses to Talk PITTSBURG, July 9.-Pittsburg's bank situation tonight is on the mend. This much is admitted on all sides by men who are familiar with the local financial situation. Whether public confidence can be restored with the optimistic statements which are being daily issued by the clearing house, banking officials, and the government officials, remains to be seen. That little confidence had been placed in these optimistic forecasts over night was evident when the Pittsburg Bank for Savings opened its doors this morning. As early as 8 o'clock depositors began to gather around the bank. As the morning grew on, the hordes of eager, anxious depositors, began to grow, and the lines to lengthen. When the big heavy bronze doors of the bank were thrown open there was a fearful crush and for a time the police were kept busy. Clerks Kept Busy. Inside the high domed room a double force of clerks were working like beavers, counting out the sums of money, great and small, as the depositors stopped at the grated windows and then passed slowly out of the bank. By 1 o'clock the waiting lines outside the bank had been shortened and an hour later had entirely disappeared. Although the clerks were kept busy paying out money until 3 o'clock the closing hour, it was evident that the run had been materially checked, if not altogether abandoned. Met by anxious inquiries from all sides, W. S. Kuhn, who arrived here at 8 o'clock this morning, from his summer residence in Massachusetts, quickly sought his home and remained there all day. He refused to talk about the present financial difficulties which have involved his firm, several banks. and many big enterprises, 80 deeply. Soon after the arrival of Mr. Kuhn an application was filed in the United States District court for receivers for six big coal companies, all subsidiaries of the American Waterworks and Gas company. Among these was the United Coal company. a $4,000,000 corporation. Regarding the information received here from Washington forecasting an investigation by the department of justice into the failure of First-Second National bank, United States Attorney John H. Jordan said today that he had not been consulted as yet by the department of justice. Capital Wiped Out. It was admitted today by the bank's examiners, who are at work on the accounts of the bank, that the capital and surplus, which approximates $5,500,000, had been wiped out, and while the denesitora will probably be

15. July 10, 1913 Semi-Weekly Herald Durango, CO
Article from Semi-Weekly Herald, July 10, 1913

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BANKING OUTLOOK IS BETTER United Press PITTSBURG, July 9.-The bank situation is clearing. W. S. Kuhn has returned from the east and is assisting in the straightening out of affairs. It is expected that all depositors will be paid in full. The board of directors of the First-Second National bank will be reorganized and Kuhn's interest eliminated. The government is investigating the charges of "dummy" loans made. A receivership is asked by the Federal Court for six subsidaries of the American Water Works and Guaranty Company.

16. July 10, 1913 The Hattiesburg News Hattiesburg, MS
Article from The Hattiesburg News, July 10, 1913

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M'ADOO AWAITS HAHN'S REPORT WILL THEN TAKE UP WITH M'REYNOLDS QUESTION OF INVESTIGATING BANK FAILURE. Washington, July 10.-Secretary McAdoo last night decided to await the report of the National Bank Examiner, Samuel Hann, who has been investigating the failed First-Second National Bank of Pittsburg, before calling upon Attorney General McReynolds to take up the question of whether the national bank act was violated in any of the operations of the institution. Immediate reference of the situation to the Department of Justice was considered by the Treasury Department early in the day, but this plan was changed to conform to the usual procedure. Examiner Hann expected to leave Pittsburg Saturday night for Baltimore-his regular station-to prepare a report to Thomas P. Kane, acting Comptroller of the Currency, on the results of the inspection of the books of the banks made by himself and Examiner Smith. A copy of this report will be furnished according to present plans, to Attorney General McReynolds and United States Attorney Jordan of Pittsburg. Chairman McKnight, of the Pittsburg clearing house association, advised Mr. Kane late yesterday that the banking conditions in Pittsburg were clearing up satisfactorily. He said the run on the Pittsburg Bank for Savings has practically subsided and that some of the money withdrawn was coming back. National Bank Examiner Williams, in charge of the First National Bank of McKeesport, which closed its doors simultaneously with the Pittsburg bank, reported that arrangements were being made to resume business within a week.

17. July 11, 1913 The Odanah Star Ashland, WI
Article from The Odanah Star, July 11, 1913

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U. S. MAY PROBE BANK FAILURES First-Second National of Pittsburgh Suspends. REPORT SHOWS DISCREPANCY Receivers Are Appointed for $73,000,000 Waterworks Company Controlled by the Kuhns McAdoo Reassures Financiers. Pittsburgh, Pa., July 9.-As a result of the suspension of the First-Second National bank of Pittsburgh Monday, one of the largest institutions in the country, of which W. S. Kuhn is president, the government may start criminal prosecution. The bank had more than $30,000,000 in deposits. The circumstances on which the probable prosecutions are based is the discrepancy of nearly $2,000,000 between the sworn report to the comptroller of the currency as to the bank's condition on June 4 and what should have been a true copy of this report published in the Pittsburgh newspapers. The report to the comptroller showed assets and liabilities aggregating $39,997,347.10 each, while as given to the Pittsburgh newspapers for publication the report placed these totals at $38,103,886.39, the $1,893,460.71 difference representing rediscounts or borrowed money. Officials declare that this was illegal. The closing of the First-Second bank was followed by action in rapid series against various other interests with which the Kuhns are identified. During the day there was a run on the Pittsburgh Bank for Savings, a large institution, of which J. S. Kuhn is president. Then came the closing of the First National bank of McKeesport, an adjacent city, which is closely allied to the First-Second of Pittsburgh. Soon afterwards a receiver was appointed for the banking house of J. S. & W. S. Kuhn, incorporated. Greatest of all disasters in this tremendous financial crash, however, was the receivership for the American Waterworks and Guarantee company, the largest concern of its kind in the country, of which J. S. Kuhn is president. This corporation controls waterworks plants in about eighty cities and towns in the United States, and the capital stock of the various controlled companies approximates $73,000,000. The one consoling feature of the situation was a reassuring statement sent out from Washington by Secretary of the Treasury McAdoo, in which he declared that the general banking condition in Pitsburgh, as well as in the entire country, was strong and sound, and that he expected no further trouble as a result of the failure. The secretary will, it is said, make a 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 unearthing any possible irregularities in connection with the collapse. The closing of the First-Second National 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.

18. July 14, 1913 The Richmond Virginian Richmond, VA
Article from The Richmond Virginian, July 14, 1913

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THINKS PITTSBURG BANK MISMANAGED ACTING CONTROLLER OF OURRENOY KANE SAYS REPORT IS BEING FRAMED. ACTION MAY BE TAKEN FORMER CONTROLLER MURRAY SAYS CARE WAS USED IN APPROVING PLANS FOR MERGER. WASHINGTON, July 13.-The report of special examiners as to indications of criminal violations of law found in the First-Second National bank is now in the course of preparation by them, according to ActIng Controller of the Currency Kane. It will be referred to the department of justice as soon as completed. "Until this is done no one has authority to say what prosecutions may be undertaken. Such information would come from the department of justice rather than from this office," said Mr. Kane. Responsibility Not Fixed. That the bank was grossly mismanaged. he says, is beyond a doubt. No attempt to pass upon the conduct of President James S. Kuhn and Vice-President W. S. Kuhn, he states. or of any other official or director of the wrecked institution has been made by the office of the controller of the currency. Nor has it been attempted to fix responsibility for the failure of the bank before the complete records have been received. "While the First National bank of Pittsburg was known to have been in an unsatisfactory condition," continued Mr. Kane, "the action of the former controller in approving its consolidation with the Second National bank gave color to the presumption that its trouble had been cleaned up, and under the circumstances this office did not feel justified in refusing to approve the FirstSecond National bank as reserve agent for other banks. "It was for the purpose of determining what the true condition was that the examination of the FirstSecond National bank by Examiners Mann and Smith was ordered by me. and the extent of the losses and the inability of the directors and shareholders to make them good did not become known to me until a conference was had with the examiners and directors of the bank in Pittsburg a week ago. In Criminal Cases. "Examiners and receivers of national banks and instructed. whenever they find conditions indicating criminal acts on the part of officers or employes of banking institutions, to make a special report of such indications to the controller of the currencq. Wherever the facts disclose close conditions of such character as to warrant immediate action they are required to furnish the ditrict attorney for the district in which the bank is located with a copy of this report in order that the department of justice may take such action as it deems proper under the circumstances. "In the event that exaxminers' reports do not furnish a complete case against the suspected officer, director or employe. the department of justice assigns a special agent to make a further investigation and report. The department of justice acts upon the finding of such agent. "It is not within the province of the

19. July 24, 1913 Evening Star Washington, DC
Article from Evening Star, July 24, 1913

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# Fisher Here in Bank's Interests. Walter L. Fisher of Chicago, former Secretary of the Interior, arrived in Washington today. He said at the Shoreham Hotel, where he is staying, that he came on business connected with the First-Second National Bbank of Pittsburgh, which recently went into the hands of a receiver. Mr. Fisher represents one of the stockholders of the bank.

20. October 29, 1913 The Evening World New York, NY
Article from The Evening World, October 29, 1913

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# Chase Bank Sued for $100,000. Suit has been entered in the United States District Court against the Chase National Bank by Receiver Murray of the First-Second National Bank of Pittsburgh to recover $100,000. In his complaint Murray charges that the Chase Bank entered into a conspiracy with the Westinghouse Electric and Manufacturing Company to evade payment of $100,000, which, according to the plaintiff, is due to the Pittsburgh bank on a note transaction.

21. November 11, 1913 The Twin Falls Times Twin Falls, ID
Article from The Twin Falls Times, November 11, 1913

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KUHNS' BANK READY TO OPEN Plans Practically Approved and All Conditions Favorable. Everything is now favorable in connection with the financial condition of the American Water Works & Guaranty company, and it is expected that the receivership will be lifted soon. The above is the statement made Thursday evening by D. C. MacWatters, vice president and general manager of the Kuhn interests in Idaho, while in the city from Milner. Mr. MacWatters said that the reports he had received from the east were encouraging. The plan proposed by Bank Commissioner Murray of Pennsvlvania for the reopening of the First-Second National bank of Pittsburg has been approved by the board of directors and Comptroller of the Currency Kane. Tt will be necessary to secure the consent of 1500 stockholders. Ninety por cent of the number have androved the plan to date and no objections have been met thus far. It is fully expected that all the stockholders will approve the plan and that the bank will be opened in 30 days.-Statesman.

22. January 5, 1914 The Washington Times Washington, DC
Article from The Washington Times, January 5, 1914

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Application will be made soon to the Treasury Department by the First-Second National Bank of Pittsburgh for permission to resume business. Stockholders have subscribed to enough stock to bring about the rehabilitation of the institution which will begin operation with a capital of $4,000,000 and a surplus of $1,000,000. This bank, in which, the Kuhns of Pittsburgh were the largest shareholders, when it closed Its doors. forced the receivership for the American Water Works and Guarantee Company.

23. January 9, 1914 The Twin Falls Times Twin Falls, ID
Article from The Twin Falls Times, January 9, 1914

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of the American Guaranty & Water company when the First-Second National bank of Pittsburg was closed by the comptroller of the currency. "The work which was started by the Kuhns on new irrigation projects in Idaho prior to the receivership is being completed. The Crane Creek project and the Sunnyside project, both in the vicinity of Weiser, are being pushed to completion at this time. The bonds upon these two projects were taken by Missouri and Kansas bankers who visited the land and were favorably impressed with the irrigation possibilities."-Statesman.

24. April 11, 1914 Evening Star Washington, DC
Article from Evening Star, April 11, 1914

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WANT TO REOPEN BANK. Representatives of First-Second National, Pittsburgh, Present Request. Representatives of the First-Second National Bank of Pittsburgh, put in a receiver's hands last July, conferred yesterday with M. C. Elliott, attorney for the controller of the currency, in charge of insolvent national banks, with a view to obtaining consent to reopen that institution. No decision was reached at the conference, but it was predicted that the FirstSecond will be permitted to reopen shortly. There has been a long-continued effort on the part of Pittsburghers interested to reopen the bank, but heretofore it has been prevented. Charles Starek, national bank examiner in the New York city district, recently was sent to Pittsburgh by Controller Williams to try to straighten out the tangle.

25. April 26, 1914 The Washington Herald Washington, DC
Article from The Washington Herald, April 26, 1914

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PITTSBURGH BANK REOPENS. First-Second National, Refinanced, Resumes Business Tomorrow. The Comptroller of the Currency announced today that the plans for the reorganization of the First-Second National Bank of Pittsburgh have been perfected: that approximately $4,750,000 of new capital and surplus have been provided and that the receiver is today turning over to the reorganized bank all of the assets and property of every kind which have been in his charge. The government is today redepositing in the bank, the balance of funds collected for its account since it closed its doors in July last amounting to more than $12,700,000. The bank will reopen tomorrow morning with a new management and a new board of directors, including well known and responsible business men of Pitts burgh. The capital of the reorganized bank is $4,000,000, with a surplus of $950,000. The First-Second National Bank of Pittsburgh in the matter of deposits and total liabilities was the largest national bank which had failed since the organization of the national banking system in 1863.