19367. Second National Bank (Pittsburg, PA)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 776
Charter Number: 776
Start Date: July 7, 1913
Location: Pittsburg, Pennsylvania (40.441, -79.996)

Metadata

Model: gpt-5-mini
Short Digest: f3f7e729

Response Measures

Full suspension, Books examined

Other: Receivers appointed for associated companies and bank; Comptroller directed closure after special examiners' review.

Description

Depositors flocked to the bank and there were runs/large withdrawals beginning July 7–8, 1913. The comptroller ordered the First and Second National Banks closed and special examiners and receivers were appointed; the failures are described as lasting and receiverships were assigned to related companies. Spelling of city (Pittsburg) follows newspaper usage; bank clearly a national bank.

Events (5)

1. February 2, 1865 Chartered

Source: historical_nic

2. July 7, 1913 Receivership

Newspaper Excerpt: The officers posted a typewritten notice on the doors today stating that the institution was in the hands of National Bank Examiner Samuel Mann and Sheriff Smith. ... receivers were appointed for the American Water Works Company and the Kuhn banking interests . . . receivers were appointed.The First and Second National banks of this city ... closed their doors today on orders from the comptroller of the currency, and receivers were appointed.
Source: newspapers

3. July 7, 1913 Run

Cause: Bank Specific Adverse Info
Cause Details: Examination by special government examiners revealed impaired capital and depreciated collateral (waterworks and other securities) tied to Kuhn interests, prompting depositor withdrawals.
Measures: Officers posted notices and made reassuring statements; other local banks sent securities to New York and obtained cash to meet withdrawals.
Newspaper Excerpt: Hundreds of depositors, many of them foreigners employed in the great steel mills, flocked to the bank early today.
Source: newspapers

4. July 7, 1913 Suspension

Cause: Government Action
Cause Details: Closed by order of the comptroller/assistant controller of the currency following a three-week examination by special government examiners; receivers were appointed.
Newspaper Excerpt: Second National Bank of Pittsburg ... closed its doors today by direction of the acting comptroller of the currency.
Source: newspapers

5. July 24, 1931 Voluntary Liquidation

Source: historical_nic

Newspaper Articles (13)

1. July 7, 1913 The Richmond Palladium and Sun-Telegram Richmond, IN

Article from The Richmond Palladium and Sun-Telegram, July 7, 1913

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Second National Bank of Pittsburg, one of the city's oldest banking institutions, closed its doors today by direction of the acting comptroller of the currency. The amount involved is said to be between $24,000,000 and $40,000,000. The Pittsburg clearing house held 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 today. but a squad of police kept every one moving. Combined Last March. The First and Second National banks combined last March and occupied a new twenty-five-story building. The officers posted a typewritten notice on the doors today stating that the institution was in the hands of National Bank Examiner Samuel Mann and Sheriff Smith. A persistent rumor places the amount involved between $40,000,000 and $200,000,000. A director of the bank today made the following statement: Statement by Director. "The officers and directors are a unit in maintaining that a great injustice has been done, and that the bank is sound 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, because of their failure to judge values of property and securities of this company, we would have been able to work out to a successful conclusion the problems that, while existing, were not of our making. The absorption of the First National by the Second National bank was conducted under the direction and with the approval of the comptroller of the currency. His representatives in this district, acting for the department, made an examination of both institutions last March and served as arbitrator of the value of our loans and securities. Not only did the comptroller approve the merger, but promised any assistance within his power. "However, the change in administration put a new influence in the treasury department, and for some reason unknown to us, two special examiners appeared a month ago and remained three weeks. The action of the comptroller of the currency, taken less than ninety days after approving the transaction, is unknown to us, for there has been no change in the bank's condition, except for improvement. "The department insisted upon the directorate complying with conditions which we considered unjust and unnecessary, and therefore, we had no other alternative than to submit to an order of suspension." Acting Comptroller of the Currency Thomas Paine today refused to make (Continued on Last Page)

2. July 7, 1913 The Tacoma Times Tacoma, WA

Article from The Tacoma Times, July 7, 1913

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PITTSBURG BANK FORCED TO CLOSE UP PITTSBURG, July 7.-Deposits aggregating $30,000,000 were tied up by an order of assistant controller of currency closing the First and Second National bank, the second largest in the city. The first and Second National banks were recently consolidated, the majority of stock held by the J. S. and W. S. Kuhn interests. Representatives of the Kuhn interests announced that a receiver will be appointed for the American Water Works company, a $24,000,000 concern operating in many cities. The Kuhn interests are heavily interested in water power, water rights and other industrial enterprises. Several banks and trust companies in neighboring towns and cities are associated with the bank. The institutions closing followed a three weeks' examination by special government examiners. The failure caused much excitement among foreign depositors. Reassuring statements to the effect depositors will be protected when the bank's affairs are straightened, were issued. NEW YORK, July 7.-Failure of the First and Second National Pittsburg banks did not disturb Wall street. It is regarded as an isolated case, having no bearing on the general banking situation. The Kuhns of Pittsburg are not connected with the banking firm of Kuhn-Loeb company of New York. The stock tickers carried the following regarding the failure: "Failure of the First and Second National banks has been expected for some time and is not regarded as important. The failare was to loans on collateral that was greatly depreciated in value, including the Wabash, Water Works and other issues." Do L.L. my

3. July 7, 1913 Rock Island Argus Rock Island, IL

Article from Rock Island Argus, July 7, 1913

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Second National bank of Pittsburgh, posted the following unsigned notice: "On account of the First-Second National bank of Pittsburgh asking for a receiver it is thought best for all our depositors to close this bank for the present." LARGEST OF KIND. New York, July 7.-Officers of the First-Second National bank of Pittsburgh are: W. S. Kuhn, president; J. M. Young, William McConway and Oscar Telling, vice presidents. Young is also cashier. W. S. Kuhn is also vice president of the American Waterworks and Guaranty company, of which J. S. Kuhn is president. The company controls waterworks plants in about 80 cities and towns of the United States. The capital stock of the various controlled companies is about $73,000,000. The American Waterworks / and Guarantee Company is the largest operating waterworks company in the United States, controlling more than forty plants in this country. The concern is also largely interested in irrigation projects, electric interurbans and electric lighting enterprises. It was chartered in Pennsylvania in 1882 and has outstanding capital stock of $5,000,000. Since 1889 the stock has paid an annual dividend of 6 per cent and in June last year a stock dividend of 150 per cent was declared from the surplus. This called for a disbursement of more than $5,000,000. Washington, D. C., July 7.-The First National bank of McKeesport, Pa., has closed its doors. Secretary McAdoo was so advised today. John S. Kuhn, president of the First-Second National bank of Pittsburgh is also president of the McKeesport bank, whose capital is $300,000 and surplus $500,000. Examination such as national officers have been able to make of the First-Second National bank's condition indicated at least one-third of the capital is impaired. Former Controller Murray authorized consolidation of the First and Second National bank of Pittsburgh before goi 3 out of office.

4. July 8, 1913 Brownsville Herald Brownsville, TX

Article from Brownsville Herald, July 8, 1913

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NOT MUCH AFFECTED BY FAILURE OF BIG BANKS IN PITTSBURG AND AT McKEES PORT. (By Associated Press.) Pittsburg, July 8.-Financial Pittsburg today showed little evidence of the crash yesterday when the First and Secont National Bank of Pittsburg and the First National bank of McKeesport failed. and receivers were appointed for the American Waterworks Company and the Kuhn banking interests. The run on the Pittsburg bank for savings continued today, but it is believed the measures adopted will enable the bank to weather the storm. The Kuhns today resigned as officers of the savings bank.

5. July 9, 1913 The Alaska Daily Empire Juneau, AK

Article from The Alaska Daily Empire, July 9, 1913

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BIG BANKS FAIL AT PITTSBURG o PITTSBURGH, July 8.-The First and Second National Banks of this city, with deposits aggregating $30,000,000, closed their doors today on orders from the comptroller of the currency, and receivers were appointed. Also the First National Bank of McKeesport, which is allied with the other banks. The bank failures resulted in the appointment of receivers for J. S. and W. H. Kupen, Incorporlated, and the American Water Works and Guarantee Company. The latter owns 2,000,000 acres of irrigated lands in the Pacific Coast States. The Kupens were the principal owners of the banks that went under.

6. July 9, 1913 St. Croix Avis Christiansted, Charlotte Amalie, VI

Article from St. Croix Avis, July 9, 1913

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been definitely restored, and the mobs are regathering. The Hussars drove back the disorderly natives into a compound. The railway trains and train cars have stopped running, as the WS will not work. Only a single newspaper is allowed to be publis| ed and that with evlourless reports and no comment. When the terms of the settlement were announced to the Unionists they shouted "what about the dead" and "you have been bought." AD anàrehistic sentiment is discernible, many showing red colours. The Amalgamated Engineers have accepted the settlement with the reservation that there will be another strike after a month if the details prove unsatisfactory. A telegram from Stockholm states that the French amateur Bouin ran eleven miles and 1,442 yards in one hour, displäcing the record held by Shrubb. The "Daily Telegraph's" correspondent at Belgrade states that the losses of the Bulgarians and Servians are heart breaking. The Servians have already lost more than in all the previous campaigning, and Bulgarian communiqués indicate a preparation for painful disclosures. The Servian casualties are estimated at 15,000 and the Bülgarian at 20,000. The fighting is mostly band to hand, with night attacks, and IS contested desperately with cold steel. The Greeks claim a victory at Salonica, but admit 8,000 casualties, while the Bulgarians claim to have scattered 80,000 Greeks. The various reports disagree, except regarding the great losses sustained. The Roumanian mobilization will be completed this week. Advices from Berlin state that the Kaiser is prepared to arbitrate the differences between Bulgaria and Roumania. Despatches from Vienna state that Austria suggests that Bulgaria should take Salonica in compensation for territorial concessions to Roumania. New York, July 8th--Advices from Washington state that the controller of the currency has closed the first and second national banks of Pittsburg. Their capital is impaired, and their reserves deficient th ough non liquid investments. Their securities include many waterworks throughout the United States, and their liabilities are estimated at 38,103,886 dollars. Copenhagen, July 8th-Major-General C. H. Arendrup, formerly Governor of the Danish West Indies, died here to-day. Lula Sani

7. July 9, 1913 Brownsville Herald Brownsville, TX

Article from Brownsville Herald, July 9, 1913

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TO INVESTIGATE BANK FAILURE HINTHD THAT DEPOSITORS BEGAN TO WITHDRAW MONEY SECRETLY BEFORE DOORS WERE CLOSED. $200,000 WITHDRAWN. TARIFF BILL READY FOR PRINTER TONIGHT.-REPORTED TOMORROW. PROBABLY NO DEBATE ON MEASURE BEFORE MONDAY. (By Associated Press.) Washington, D. C., July 9.-Sufficient evidence has been developed by the treasury department it was said today to warrant the investigation of the failures of First and Second National Banks of Pittsburg, and Secretary McAdoo is expected to ask Attorney General MeReynolds to take action by tonight. Deputy Cmptroller of the Currency Kane of that bank was locked out, and one large depositor Saturday withdrew two hundred thousand dollars. Others contemplated large withdrawals and the government promptly closed the bank to protect small depostor who had no knowledge of the conditions. Chairman Simmons today announced that he hoped to have the tariff bill ready for the printer tonight and if possible will report the bill to the sen ate tomorrow. The debate probably will not begin until next week however.

8. July 9, 1913 Valdez Daily Prospector Valdez, AK

Article from Valdez Daily Prospector, July 9, 1913

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START RUN ON SAVINGS BANK Kuhn Brother's Saving Institute of Pittsburg, is Not Effected By Crash. Pittsburg July 9.--The government is prepared to take criminal action against the officers of the First and Second National Banks of this city, which closed yesterday, by orders of the bank examiners. The Department of Justice and the experts from the banking department, are now working on the case and may present the facts to the next grand jury. The Kuhn Savings Bank of this city was not closed yesterday, and has SO far weathered the storm, although a line of depositors have been in line for the past 24 hours and the tellers have been busy paying out deposits. The run so far has not weakened the bank as the officers have been able to secure enough ready cash for securities held by them in the vaults and all depositors are paid in full. All the banks in the city have sent securities to New York and have received thousands of dollars in cash with which to pay the depositors, should a run be started.

9. July 10, 1913 The Daily Telegram Clarksburg, WV

Article from The Daily Telegram, July 10, 1913

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Second National Bank alone, not con sidering the closing of the allied First National Bank of McKeesport nor the receiverships for the bankers and utility company, is said to be one of the largest, if not the record size, failure for a national bank The First-Second National has total liabilities of close to $40,000,000, with $3,400,000 capital; $2,011,169 surplus and undivided profits and $82,029,695 deposits. The First National Bank of McKeesport has liabilities of $4,541,000, with a capital of $800,000, a surplus of $569,454 and deposits of $3,387,283. Controls Many Companies. The American Water Works and Guarantee Company, the largest company in the country engaged in constructing and operating other water works companies, gas, electric light, heat and power concerns, irrigation plants and electric interurban lines, controls over forty such companies whose securities aggregate $110,718, 800, of which $73,128,800 consists of stocks of the subsidiaries held by the controlling company." The subsidiaries have a funded debt of $37,589,000 The, controlling company itself has a capital stock of $10,000,000 common and $10,000,000 six per cent preferred. Announcement of the suspension of the big Pittsburg bank was not altogether a surprise. The receivership for J. S. & W. S. Kuhn, the chief sponsors for the bank, caused no astonishment. Bank's History Spelled Trouble. The history of the bank in the last three years spelled trouble that would soner or later come to a crisis, bankersdeclare. W. S. Kuhn, who became president after the merger, and J. S. Kuhn are the leaders in the public utility house of J. S. & W. S. Kuhn and Company, which was incorporated about eight years ago. Their principal activity has been in the American Water Works and Guarantee Company. which they dominate. They are wide advertisers and have sold their public utility stocks broadly over the country, in rural as well as city communities. The partnership was formed in 1882. They are incorporated in Deleware with a capital stock of $500,000. James S. Kuhn is chairman of the board of directors and his brother, W. S. Kuhn, is vice president. They went into the irrigation projects with great enthusiasm when irrigation schemes were first heard of. The largest was the Sacramento Valley Irrigation Company, with a capital stock of $10,000,000 and a funded debt of $7,249,000. All in One Big Company. This irrigation company and others are now a part of the American Water Works and Guarantee Company. This holds over forty companies, the chief of which are the West Penn Traction and Water Power Company of Pennsylvania, a $27,000,000 concern; the St. Joseph Water Company, Missourl; the City Water Company of East St. Louis and Granite City, the South Pittsburg Water Company and the Birmingham Water Works Company of Alabama. The American Water Works and Guarantee Company in its statement of May 1 last showed an excellent

10. July 14, 1913 The Alaska Citizen Fairbanks, AK

Article from The Alaska Citizen, July 14, 1913

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ENERAL NEWS BY TELEGRAPH THREE BANKS FAIL TTSBURG. July The First Second National banks of Pitts and the First National bank of Reesport closed their doors today warning to their deposit who have in the aggregate. more $40,000,000 at stake. banks are controlled by the interests and it is generally here that the suspensions temporary. BANKS ORDERED CLOSED. ASHINGTON July The clos of the First and Second National of Pittsburg today was direct by the Wilson administrati n in to protect the small stock whose interests. it is be are endangered. It is under that as soon as the controll interests comply with certain reements of the government. the will be permitted to reoper business. KUHN'S WIFE IS ILL. EVERLEY. July 7. William president of one of the stockholders in the Pittsbanks is in the city at the of his wife. who is seriously FEDERALS DEFEATED AGLE PASS. Tex., July 7.-Ad from across the Mexican line that the federals have been deby the constitutionalists at ELKS IN SESSION. OCHESTER. N. Y., July 7.- The y-ninth annual convention of will open in this city tonight a large representation of the branches of he order thr ugh the country Governor Sulzer deliver the address of welcome NORWEGIAN HOSPITAL EATTLE July T-The Norwe residents of this city. headed Mrs. Gunar Lund. are planning establishment of a hospital modeled after those of the old Under the direction of Mrs the movement has gained conrable headway. and the carrying of the plan is practically as HOOTCH FACTORY BURNED. EORIA. III.. July The disbelonging to the Clark com is being destroyed by fire this the flaames having gained headway that there is little of saving any part of the plant. The distillery. which largest in the world.is valued $1,500,000. WAS "APPROACHED." ASHINGTON, July 7. Edward terbach. member of the New law firm of Hoadley. Lauter & Johnson. admitted to the lotal probe committee that he had "approached" Lewis yard. counsel for J. P. Morgan. the statement that he represent Speaker Champ Clark. Lauter said Le had used the name of speaker without the authority of latter. the deception being necessary to accomplish a object which he had in view. auterbach is a Republican. JACK LONDON ILL. AKLAND. July 7.-Jack London. author. was taken seriously il with an attack of appendici He has been taken 1 Merritt and if his condition does improve tonight he will be opupon tomorrow. DIGGING UP GRAFT. LOUIS. July 7.-A federal jury, summoned for the pur of investigating reports of among officials of the muni-

11. July 14, 1913 The Alaska Citizen Fairbanks, AK

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THREE BANKS FAIL. PITTSBURG. July The First and Second National banks of Pittsburg and the First National bank of McKeesport closed their doors today without warning to their depositors who have. in the aggregate. more than $40,000,000 at stake. The banks are controlled by the Kuhn interests and it is generally believed here that the suspensions are only temporary.

12. July 15, 1913 The Chitina Leader Chitina, AK

Article from The Chitina Leader, July 15, 1913

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pudiated his confession of seven murders committed in Ohio. WASHINGTON, July 8.-Mrs. May Jorgensen, sister-in-law of Senator Poindexter and General Charles Morton, was attacked by a negro after she had retired. CHICAGO, July 8.-J. Henry Scott, of San Francisco, formerly engaged in mining at Nome, Alaska, committed suicide at a local hotel last night, by blowing out his brains in his room. No cause is assigned for the rash act. WASHINGTON, July 8.-Secretary of the Treasury McAdoo declared that the banking conditions at Pittsburg and throughout the entire country were good and the failure of the First and Second National banks of the former city were simply a sporadic case of unsound banking. WASHINGTON, July 8.-Fortyseven senators have agreed to vote for the Underwood tariff bill as agreed upon in caucus. Senators Hitchcock and Culbertson are absent from the city, but are known to favor the bill, thus giving a majority of one. LONDON, July 8.-The will of the late Sir John Murray, giving $5,000,000 to Lady Sacville, has been sustained. WASHINGTON, July- 8. - The President today appointed Frederick C. Penfield, of Pennsylvania, ambassador to Austria. LONDON, July 8-The suffragettes burned in effigy, Sir William Lever, a noted physician and founder of Port Sunlight. HOUSTON, July 8.-Lieutenant Loren H. Call, an army aviator, was instantly killed by the collapse and fall of an aeroplane. WASHINGTON, July 8.-"If Mr. Fisk does not resign as postmaster at San Francisco, he will be removed," declared Postmaster General Burleson in discussing Fisk's refusal to vacate office after having been requested to do so by the department. SAN FRANCISCO, July 8.-The west slope of Tamalpais is afire and Muir woods are also in danger of being destroyed by the flames. SAN FRANCISCO, July 8.-A thousand soldiers, civilians and firemen saved Muir woods and the National Sequoia Park from destruction by the forest fires. SEATTLE, July 8.-After declaring that he was too good for servile labor and reproaching the nation for not making life easy for him, J. D. Wilhite, a Spanish-American soldier, committed suicide. KETCHIKAN, July 8.-That the steamship Curacao, of the Pacific Coast Steamship Co., which was wrecked near Warm Chuck, on the west coast of Prince of Wales Island recently, may be raised, is the opinion of shipping men. The vessel is reported as resting on an even keel near shore, with about 15 feet of water covering her decks at low tide. Eleven large steel can buoys have just been received by the lighthouse inspector to be used to marke some of the most dangerous of the numerous uncharted rocks which abound in this vicinity. It is largely owing to the untiring efforts of Ray L. Hankinson, inspector in charge of the 16th district, say shipping men, that a neglectful government is induced to give even the few aids to navigation with which the dangerous waters of Alaska are marked. Ever since his appointment to the office in the North, Hankinson has lost no opportunity to impress on the government the necessity of numerous buoys and lighthouses to guide the navigator through the hazardous places along the entire Alaskan coast. Since the wreck of the steamships Yukon and Curacao, both of which, it is asserted by steamhip men, might yet be afloat had the coast of Alaska been properly surveyed and buoyed, it is expected that the federal government will awaken to the needs of the territory. Although the Yukon was steaming over a course but little used, yet the route is traveled enough to merit the protection of ships by buoys and lighthouses. The west coast of Prince of Wales Island, is for the most part not even surveyed by the government. Most of the charts in use by the government have been prepared by the captains of the numerous vessels which ply those waters.

13. March 13, 1914 Las Vegas Optic Las Vegas, NM

Article from Las Vegas Optic, March 13, 1914

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BIG CONCERN FAILS Pittsburgh, Pa., March 13.-Application was made in the United States district court here by J. M. Shields, attorney for the receivers of the American Water Works and Guarantee company for an order to sell the company's property. A decision was not expected until early next week. The American Water Works and Guarantee company is a $20,000,000 corporation and owns water plants in a number of western and southern cities. It was placed in the hands of receivers soon after the Second National bank of Pittsburg was closed last July, being one of the important companies controlled by W. S. and J.S. Kuhn,