19396. American Water Works and Guarantee Company (Pittsburgh, PA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 7, 1913
Location
Pittsburgh, Pennsylvania (40.441, -79.996)

Metadata

Model
gpt-5-mini
Short Digest
22e6bed7

Response Measures

None

Description

Articles from July 7-11, 1913 report that receivers were appointed for the American Water Works and Guarantee Company after the failure/closure of the First-Second National Bank and related Kuhn interests. No run on this company is described; federal court receivership was sought and appointed, so the firm was closed and placed in receivership.

Events (1)
1. July 7, 1913 Receivership
Newspaper Excerpt
receivers were appointed for the American Water Works and Guarantee Company, one of the largest companies of its kind in the United States ... application was made in the Federal court this afternoon for receivers for both Institutions.
Source
newspapers

Newspaper Articles (10)
1. July 7, 1913 Las Vegas Optic Las Vegas, NM
Article from Las Vegas Optic, July 7, 1913

Click image to open full size in new tab

Article Text

LEGAL RESERVE WAS SHORT SHORTAGE OF $2,145,000 CAUSES GOVERNMENT TO TAKE IMMEDIATE ACTION ALLIED BANK ALSO CLOSES AMERICAN WATER WORKS, CON CONTROLLED BY BANKERS, GOES INTO RECEIVERSHIP Pittsburgh, Pa., July 7-A series of difficulties occupied Pittsburgh to day. The First-Second National bank, one of the largest banks in the country, failed to open its doors. Within a short time the First National bank of McKeesport, an adjoining city, closed and during the afternoon receivers were appointed for the Amer ican Water Works and Guarantee company, one of the largest companies of its kind in the United States and for the banking house of J.S. and W. S. Kuhn, incorporated. Also during the day a run was made on the Pittsburgh Bank for Savings, a large institution. The troubles were due to federal government confronting the Kuhn interests 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 interurban railway companies, together with the financing of a sky scraper bank and fice building, are given as some of the causes leading up to today's suspensions. The trouble first made its appearance in the First-Second National bank. It is said the government has been investigating conditions for the past month or since June 4 last, when the 'last statement was made. An alleged deficiency of $2,145,000 in the legal reserve of the bank and the subsequent examination brought matters to a climax. Several thousand persons congregated about the First-Second National bank at noon. A squad of police was necessary to keep the great crowd 19. moving. The Frist Second National Ban's of Pittsburgh, the second larg est in the city and one of the largest in the country, was closed today by order of the comptroiler 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 both banks and their closing led to persistent reports a receiver would be asked 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 80 water works plants in the United States. The legai reserve of the First-Second National Bank of Pittsburgh was deficient by $2,145,000 on June 4, the the last call by the comptroller date of 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 $30.The suspension 000,000. of the on insti- the tution precipitated a run Pittsburgh bank for savings of which J. S. Kuhn is president. 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 with the Second National bank last March under the title of the National culminated First-Second burgh, today Bank in the of Pitts closing of the bank by order of Deputy Comptroller of the Currency T. P Kane. The First National bank of Mc Keesport, Pa., has closed its doors Secretary McAdeo was so advised to day. J. Kuhn, a brother of W.

2. July 8, 1913 The Times Dispatch Richmond, VA
Article from The Times Dispatch, July 8, 1913

Click image to open full size in new tab

Article Text

First-Second National of Pittsburgh Forced to Close Doors. SOON FOLLOWED BY TWO OTHERS First National of McKeesport and Bank of J. S. & W. S. Kuhn, Inc., Are Caught-Receiver Appointed for American Water Works and Guarantee Company. Pittsburgh, July 7.-The First-Second National Bank of Pittaburgh, the First National Bank of McKeesport, a neighboring city: the American Water Works and Guarantee Company and the banking-house of J. S. & W. S. Kuhn, Incorporated, of this city, were forced into the hands of receivers to-day through the failure of the first named institution to open its doors this morning. The closing of the First-Second National Bank was ordered by the deputy comptroller of currency, T. P. Kane, after every effort had been made to meet the government requirements as to the legal reserve. The Kuhn banking-house has extensive interests in Irrigation projects throughout the West and in mines and street traction systems throughout Western Pennsylvania, besides being a dominant figure In the American Water Works and Guarantee Company. W. S. Kuhn is president of the FirstSecond National Bank, vice-president and director in the banking-house and vice-president and director of the American Water Works and Guarantee Company, besides a director of the McKeesport bank. J. S. Kuhn is a director of the FirstSecond National Bank, president and director of the American Water Works and Guarantee Company, president and director of the McKeesport bank and chairman of the board of directors of the banking-house. Receivers Asked For. When it was learned that the banks would have to suspend business, steps were taken to protect the American Water Works and Guarantee Company and the Kuhn's banking-house, and application was made in the Federal court this afternoon for receivers for both Institutions. Throughout the day a statement of the banks and affected companies' affairs was awaited with feverish anxiety, but none was forthcoming until tonight. when Mr. Kuhn made a formal statement. No statement of the condition of the bank was obtainable subsequent to the one issued June 4 on the last bank call of the comptroller. The June 4 statement was as follows: Resources: Loans and discounts. $15,704,901.16. Overdrafts, secured and unsecured. $2,571.76. United States bonds to secure circulation, $1,900,000. United States bonds to secure United States deposits, $171,000. United States bonds on hand, $16,000. Premium of united bonds, $10,121.26. Bonds, securities, etc., $8,549,236.95. Banking furniture and lixtures, $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, $693,230.42. Notes of other national banks, $360,000. Fractional paper currency, nickels and cents, $13,237.88. Lawful money reserve in bank, via.: Specie and legal tender notes, $1,S.1.023. Redemption fund with United States Treasury (5 per cent of circulation), 95 per cent. Due from United States treasurer other than 5 per cent redemption fund, $87,500. Total, $38,103,856.39. Other Side of Ledger. Liabilities: Capital stock paid in, $3,400,000. Surplus fund, $1,700,000. Undivided profits, less expenses and taxes paid, $250,068.45. National bank notes outstanding, (Continued on Second Page.)

3. July 8, 1913 New-York Tribune New York, NY
Article from New-York Tribune, July 8, 1913

Click image to open full size in new tab

Article Text

distribution of its assets will proceed as expeditiously as possible." During the early hours of the day a run was made on the Pittsburgh Bank for Savings, 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 thirty, sixty and ninety days, according to the amount demanded by the depositor. This institution made a statement that it had $5,000,000 in cash and quick assets and was prepared for any emergency. The run was over before the closing of banking hours, and it is not thought any anxiety over this institution need be felt. Merged in March Last. 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 Telling. formerly of the Controller's department and who was president of the First National, was made vice-president of the combined institution, and W. S. Kuhn, then of the Second National Bank, was made president. 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 were unfounded, however, for the Kuhns disposed of their interests and resigned from all connection with the bank several months ago. Receivers Appointed. When application was made in the federal court this afternoon for receivers for the two Kuhn concerns Judge C. P. Orr appointed for the J. S. & W. S. Kuhn Company, Inc., the two Kuhns and J. K. Duff, treasurer of the banking house. For the American Water Works and Guarantee Company were appointed J. S. and W. S. Kuhn and J. H. Purdy, general manager of the company. A fourth receiver is to be appointed later, Judge Orr being of the opinion that one of the receivers should be a person having no financial interest in the company. The receivers are required to furnish $50,000 bonds. The affairs of the First-Second National Bank are to-night 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 Allegheny National and Fort Pitt National banks several years ago. Mr. Murray was formerly a bank examiner. W. S. Kuhn, president of the FirstSecond Bank, has not been in Pittsburgh for several days, having been called to the bedside of his wife, who is ill at Pride's Crossing, Mass.

4. July 8, 1913 New-York Tribune New York, NY
Article from New-York Tribune, July 8, 1913

Click image to open full size in new tab

Article Text

RECEIVERS NAMED FOR FAILED BANK Placed, Also, Over First National of McKeesport and Other Kuhn Institutions. Pittsburgh, July 7.-The First-Second National Bank of Pittsburgh, the First National Bank of McKeesport, a neighboring city, the American Water Works and Guarantee Company, and the banking house of J. S. & W. S. Kuhn, Inc., of this city, were forced into the hands of receivers to-day, through the failure of the first named institution to open its doors this morning. The closing of the First-Second National Bank was ordered by the Deputy Controller of the Currency, T. P. Kane, after every effort had been made to meet the government requirements as to the legal reserve. The Kuhn banking house has extensive 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, vicepresident and director of the banking house, and vice-president and director of the American Water Works and Guarantee Company, besides being a director of the McKeesport bank. J. S. Kuhn was a director of the First-Second National Bank, president and director of the American Water Works and Guarantee Company, president and director of the McKeesport bank and chairman of the board of directors of the banking house. When it was learned that the banks would have to suspend business steps were taken to protect the American Waterworks and Guarantee Company and the Kuhns' banking house, and application was made in the federal court this afternoon for receivers for both institutions. Throughout the day a statement of the banks and affected companies' affairs was awaited with feverish anxiety, but none was forthcoming until tonight, when Mr. Kane made a formal statement. No statement of the condition of the bank was obtainable subsequent to the one issued on June 4, on the last bank call of the Controller, Bank's Last Statement. The last statement of the FirstSecond Bank's condition. made on the call of the Controller on June 4, was as follows: RESOURCES

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

Click image to open full size in new tab

Article Text

BANKS CLOSE (Continued from First Page.) tion taking the name of the two banks. At that time Oscar Telling, formerly of the comptroller's department, and who was president of the First Na tional, was made vice president of the combine, and W. S. Kuhn, then of the Second National Bank, was made president. Today upon the closing of the merger 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 un-named director as saying the government was responsibie for the merger of the two banks, because it was sanctioned by Law. rence Murray, then comptroller of the currency. The statement was almost imm diately recalled by the distributors of the report, but the recall in many places was ignored. Receivers Appointed. 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 were unfounded, however, for the Kuhns disposed of their interests and resigned from all connection with the bank some months ago. When application was made in the federal court this afternoon for receivers for the two Kuhn concerns, Judge C. P. Orr appointed for the J. S. and W. S. Kuhn company, Inc., the two Kuhns and J. K. Duff, treasurer of the banking house. The American Water Works and Guarantee company 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 financlal interest in the company. The receivers are required to furnish $50, 000 bonds. The affairs of the First-Second National are tonight 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. W. S. Kuhn, president of the First Ntional bank, has not been in Pittsburgh for some days, having been called to the bedside of his wife, who is ill at Prides Crossing, Mass.

6. July 9, 1913 The Daily Star-Mirror Moscow, ID
Article from The Daily Star-Mirror, July 9, 1913

Click image to open full size in new tab

Article Text

AGENTS INVESTIGATING DUMMY LOAN CHARGES Monday of the First-Second National July 9.-A more PITTSBURG, bank, an institution that had been achopeful view is being taken of the credited as one of the strongest in financial situation here following the the county. failure of the First-Second National The closing of the First-Second Nabank in this city Monday. It is now tional was followed naturally by the confidently expected. that all of the suspension of its affiliated bank, the depositors of the closed bank will be First National of McKeesport, and the paid in full. The board of directors appointment of receiverships for the of the bank is to be reorganized and banking house of J. S. & W. S. Kuhn, the Kuhn interests eliminated before incorporated, and a like action with the institution is reopened. Agents the American Water Works and of the treasury department are here Guarantee company. investigating the charges to the effect Another Kuhn interest affected, the that the institution had been making Pittsburg Bank for Savings, suffered dummy loans. a run Monday chiefly by small deFailure of Small Consequence. positors. Expected statements as to the PITTSBURG, July 9.-To the deAmerican Water Works and Guarancisive statement of Secretary of the tee company were not forthcoming Treasury McAdoo issued Monday night is attributed the restoration of almost yesterday ,the delay being attributed the normal conditions in financial Pitts- to the delay in the appointment of burg last night, despite the closing fourth receiver.

7. July 10, 1913 The Butler Weekly Times Butler, MO
Article from The Butler Weekly Times, July 10, 1913

Click image to open full size in new tab

Article Text

U. S. CLOSE BANKS, RECEIVERS NAMED IN POWER COMPANY Run on Third Pittsburg Savings Institution Follows Action Against the Kuhns. Pittsburg, Pa., July 7.-The FirstSecond National Bank of Pittsburg, the First National Bank of McKeesport, the American Water Worksand Guarantee Company, and the bankinghouse of J. S. and W. S. Kuhn, incorporated, were forced into the hands of receivers today through the failure of the first-named institution to open its doors. The closing of the First-Second National Bank was ordered by T. P. Kane, Deputy Comptroller of the Currency, after every effort had been made to meet the Government requirements as to the legal reserve. The Kuhn banking-house had extensive interest 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 in the bankinghouse, and vice president and director of the American Water Works and Guarantee Company, besides being a director of the McKeesport Bank. J. S. Kuhn was a director of the First-Second National Bank, president and director of the American Water Works and Guarantee Comyany, president and director of the McKeesport Bank and chairman of the Board of Directors of the banking-house. When it was learned that the banks would have to suspend business steps were taken to protect the American Water Works and Guarantee Company and the Kuhn banking-house, and application was made in the Federal court for receivers for both institutions. No statement of the condition of the bank was obtainable subsequent to the one issued June 4, last bank call of the Comptroller.

8. July 11, 1913 The United Opinion Bradford, VT
Article from The United Opinion, July 11, 1913

Click image to open full size in new tab

Article Text

MILLIONS INVOLVED IN BANK FAILURES Liabilities of One Institution Alone Reach $40,000,000 Pittsburg, July 8.-The First-Second National bank of Pittsburg, with $40,000,000 liabilities, the First National bank of McKeesport, a neighboring city, the American Water Works and Guarantee company and the banking house of J. S. & W. S. Kuhn, Inc., of this city, were forced into the hands of receivers through the failure of the first named institution to open its doors. The closing of the First-Second National bank was ordered by Deputy Comptroller of the Currency Kane, after every effort had been made to meet the government requirements as to the legal reserve. The Kuhn banking house has extensive 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.

9. July 12, 1913 Abbeville Progress Abbeville, LA
Article from Abbeville Progress, July 12, 1913

Click image to open full size in new tab

Article Text

Two Banks Forced Into Receivership. Pittsburg.-The First-Second National bank of Pittsburg, the First National bank of McKeesport, a neighboring city; the American Water Works and Guarantee Company, and the banking house of J. S. & W. S. Kuhn, Incorporated, of Pittsburg, were forced into the hands of receivers Monday through the failure of the first named institution to open its doors Monday morning. The closing of the First-Second National bank was ordered by the deputy comptroller of the currency, T. P. Kane, after every effort had been made to meet the government requirements as to the legal reserves. The Kuhn banking house has extensive 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 Water Works and Guarantee Company.

10. July 16, 1913 The Daily Telegram Clarksburg, WV
Article from The Daily Telegram, July 16, 1913

Click image to open full size in new tab

Article Text

Until Receivers are Appointed by Court as Result of Bank Failure. (BY ASSOCIATED PRESS) MORGANTOWN, July 16 Work on the hydro-electric power am on the Cheat river was stopped last night by the Gillespie Construction Company, of Pittsburg, the contractors. The dam was being built by a subsidiary company of the American Water Works and Guarantee Company, one of the Kuhn corporations of Pittsburg, and work was suspended until such time as the court proceedings made necessary by the appointment of receivers for the parent company could be taken. Information from Pittsburg today was to the effect that work would, be resumed in the very near future.