19397. American Waterworks and Guarantee Company (Pittsburgh, PA)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
b8328cbc

Response Measures

None

Description

Articles report that after the failure/closing of the First-Second National Bank (July 7, 1913) application was made and receivers were appointed for the American Waterworks and Guarantee Company. This is a corporate concern (waterworks company) placed in receivership by court/government action rather than a depositor run on the company itself.

Events (2)
1. July 7, 1913 Other
Newspaper Excerpt
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.
Source
newspapers
2. July 7, 1913 Receivership
Newspaper Excerpt
application was made in the federal court this afternoon for receivers for both institutions... the appointment of receiverships for ... the American Waterworks and Guarantee Company, an enterprise fathered by the Kuhn interests.
Source
newspapers

Newspaper Articles (10)
1. July 7, 1913 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, July 7, 1913

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Comptroller Takes Charge First-Second National. Deposits Amount to Over Thirty Million Dollars. AM. WATERWORKS RECEIVERS Biggest Waterworks Company in Country Involved. Controls Eighty Plants-Some in Kansas Towns. RUN IS MADE ON THIRD BANK All Embarrassed Institutions Are Closely Allied. Former Department Men Hold Positions in Bank. Pittsburg, July 7.-The First-Second the secNational bank of Pittsburg, of the largest in the city and one closed tolargest ond in the country, was of by order of the comptroller bank day currency. The First National the of McKeesport, Pa., an allied institualso closed its doors. tion S. Kuhn and J. S. Kuhn own banks the controlling W. interests in both retheir closing led to persistent asked and that a receiver would be and ports the American Waterworks for Guaranty company, the largest with conof its kind in the country. which cern the Kuhns are prominently soon identifield, and the reports were more out. This concern controls the borne than forty waterworks plants in \ United Differences States. between the officials of First-Second bank and the treas- of the department over the character have sed the ury bank's assets are said to to the order closing its doors. No details of the differences have debeen announced by the treasury Firstpartment this afternoon. The conNational bank is a recent solidation Second of the First and Second Na- debanks of Pittsburg and has The tional posits of more than $30,000,000. suspension of the institution precip- for itated a run on the Pittsburg Pank Savings, of which J. S. Kuhn is president. Difficulty Long Standing. Differences of long standing with the treasury department concerning the s character and value of certain assets of of the former First National bank Pittsburg which was merged with the Second National bank last March unthe title of the First-Second Nader bank of Pittsburg, culminated intional morning in the closing of the this by order of Deputy Comptrolstitution ler of the Currency, T. P. Kane. and officers of the instituDirectors were in session all day yesterday tion most of last night with special bank and examiners sent here to investi- hour the bank. and at an early on gate morning notices were posted this the bank doors that it had been ordered closed. The Pittsburg clearing house association has taken charge of the situagenerally, and announces will no be tion further trouble. A statement issued by it later in the day. None of the officials of the bank make a statement this morning the would announcing that affairs were in of the government officials. hands The officers of the First-Second W. S. Nabank, of Pittsburg are: Young, tional Kuhn, president. and J. M. L. TellWilliam McConway, and Oscar is ing, vice presidents. Mr. Young also cashier. W. S. Kuhn also is vice president of American Waterworks and Guarthe anty company. of which J. S. Kuhn controls is president. The company waterworks plants in about States. eighty cities and towns in the United concapital stock of the various trolled The companies is about $73,000,000. McKeesport Bank Closes. First National bank of McKees- FirstThe an allied institution of the port, Second National bank of Pittsburg, closed its doors later in the day, posting this account notice: of the First-Second Na"On bank of Pittsburg asking for of a receiver, tional it is thought best for bank all for depositors to close his unsigned. our present." The notice was Ask the American Waterworks Receivers. the Application for a receiver for Waterworks and Guarantee court company American was filed in the federal 1:55 this afternoon. at The American Waterworks and Guarcompany is the largest operating United antee waterworks company in the 40 such States, controlling more than plants throughout the country. The concern is also largely interestin irrigation projects, electric interurban ed and electric lighting enterprises. the companies controlled by Among American Waterworks and Guarantee the company are: The St. Joseph, Kan. Mo. Water company; the Wichita, Water company; Louisiana, Mo., Water Arkansas Water company Ark., and Joplin Waterworks company, Little company; Rock, Joplin, Mo. Extensive Interests. J. S. and W. S. Kuhn, incorporated interests, bankers, known as the Kuhn a S. are incorporated in Delaware with capital stock of $500,000. James of is chairman of the board diJames Kuhn rectors and his brother, W. S. Kuhn Kuhn, is is vice president president. of the American Wateralso works and Guarantee company, with S. capital of $20,000,000. The and Kuhn W. inKuhn a is vice president. centered largely of late terests irrigation have projects in the west. They in control the West Pennsylvania also Traction and Water Power company,

2. July 8, 1913 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, July 8, 1913

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Bank's Capital Much Impaired PITTSBURG INSTITUTION ORDERED CLOSED. IN RECEIVERS' HANDS McKeesport Bank and Other Enterprises Affected-"A Sporadic Case of Unsound Banking," Says McAdoo. Pittsburgh, Pa., July 7.-The FirstSecond National Bank of Pittsburgh, the First National Bank of McKeesport, a neighboring city, the American Waterworks and Guarantee Company W. and the Banking house of J. S. and forced S. Kuhn, Inc., of this city, were .today into the hands of receivers through the failure of the first named morninstitution to open its doors this Closing ing. Ordered By Deputy Comptroller The closing of the First-Second National Bank was ordered by the deputy P. comptroller of the currency, T. made after every effort had been the government Kuhn the legal reserve. in banking house projects has throughout the and mines and throughout western systems to Kane, west, as meet irrigation to extensive street dominant requirements The Pennsyl- interests traction facbesides being a and vania, in the American Waterworks was Guarantee tor Company. W. S. Kuhn, Nationof the First-Second in president vice-president and director al Bank, banking house, and vice-president Waterthe director of the American besides and and Guarantee Company works being a director of the McKeesport bank. Kuhn was a director of the First-Second J. S. National Bank, president Waterdirector of the American presiand and Guarantee Company; works director of the McKeesport of dent and and chairman of the board bank, directors of the banking house. No Statement until Night. it was learned that the banks steps When have to suspend business American would taken to protect the Company Waterworks were and Guarantee and made and the Kuhn's Banking in house, the federal application court this afternoon was for receivers for both institutions. the day a statement of Throughout banks and affected companies anxi- affthe awaited with feverish until airs was but none was forthcoming formal ety, when Mr. Kane made the a condito-night No statement of subtion to the one the bank was 4, on statement. of issued obtainable comptroller. June the sequent last bank call of the Unable To Make Good Impaired Capital. To-night Mr. Kane issued the following: meeting of the directors held of the on First-Second "At a National of Bank the bank and Sunday of the recent the bank examiners the directors results the condition were investigation discussed. good of the full consideration make After their inability to and withdeclared impaired capital would be the bank's decided that it depositors out dissent the protection of have the best all for other interests to take charge the bank. and comptroller and arrange of for the the currency liquidation of Little Loss to Depositors. Pittsburgh clearing house for com- the mittee "The which has been engaged over the aff:past four days in with going the examiners airs and in of making the bank a careful refused investigation to furnish as to its condition the bank in keeping the enough doors to open justify and agreed was no under alterna tive to the its circumstances course there recommended by the banks directors. of the bank have ex"The officers the department the but belief little pressed to will ultimately be depositors. that there loss to the bank's bank, and the if The any liquidation of its of assets the will proceed as distribution expeditiously as possible." Prepared. House Was of the Clearing a protracted house meeting association that institution Pittsburgh After clearing to-night issued this statement: "The closing of the the deputy First-Second Na- comptroller entirely unof tional expected the Bank currency by this by association was for not the crisis. and it all was The in therefore prepared clearing house are that the members of the and we believe the good and trust are as a will take of banks Pittsburgh condition companies whole, It in prepared transfer seve- city for any emergency. for the careful ral days to and arrange the proper and theFirstof accounts of checks made We on therefore National of the public Second indulgence help in every ask the that they will the solution the handling assist Bank. in and request possible to confronts banks." clearing way of the problem house which committee and the

3. July 8, 1913 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, July 8, 1913

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Concerns Them Several Big in and Near City, NO DEPOSITORS TO LOSE, SAY OFFICIALS Investments in Irrigation and Waterworks Enterprises Led to Embarrassment for Ready Money (BY MORNING JOURNAL SPECIAL LEAGED WIRE Pittsburgh, July 7.-The First-Second National Bank of Pittsburgh, the First National Bank of McKeesport, a bank of a neighboring city, the AmerIcan Waterworks and Guarantee company, and the banking house of J. S. and W. S. Kuhn, Inc., of this city, were forced into the hands of receivers today, through the failure of the its first named institution to open doors this morning The closing of the First-Second No tional bank was ordered by the deputy P comptroller of the currency, T. Kane, after every effort had been made to meet the government requirements as to the legal reserve. The Kunn 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 Waterworks and Guarantee company. W. S. Kuhn was president of the First-Second National bank vice president and director in the banking house. and vice president and director of the American Waterworks and a Guarantee company. besides being 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 effected companies affairs was awaited with feverish anx lety, but none was forthcoming until tonight. when Mr Kane mad a for the mal statement. No statement of condition of the bank was obtainable subsequent to the one issued June 4 on the last bank call of the comptrol ler. Tonight, Mr. Kane issued the following: "At a meeting of the directors of First-Second National bank held on Sunday, the condition of the bank and the results of the recent invest gation of the bank examiner were dis cussed After full consideration the directors declared their inability to make good the bank's impaired cap. Ital and without dissent decided that it would be best for the protection of depositors and all other interests to have the comptroller of the currency take charge and to arrange for th liquidation of the bank "The Pittsburgh clearing house committee, which has been engaged for the last four days In going over the affairs of the bank with the ex1 aminers and in making n cireful estigation as to 11s condition, refused o furnish funds maffident to institu the bank in keeping its door open and agreed under the circumstances there was no alternative to the cours recommended by the bank's directors The officers of the bank have expressed to the department the belief that there will ultimately be but little if any loss to the Lank's depositors The liquidation of the bank. and the Distribution of its assets will proceed is expeditiously as possible," After a protracted meeting of the Pittsburgh clearing house association his institution tonight issued this statement: "The closing of the First-Second National bank by the deputy comproller of the currency, was not entirely unexpected by this association nd it was therefore prepared for the risis. The members of the clearing house are all in good condition and ve believe that the banks and trust companies in the city of Pittsburgh, is a whole, are prepared for any emergency. It will take several days o arrange for the transfer of accounts and the proper and careful handling of checks made upon the First-Second National bank. We herefore ask the indulgence of the public and request that they will help in every way possible to assist in the solution of the problem which confronts the clearing house commitee and the banks. During the arly hours of the day, run was made on the Pittsburgh Bank of Savings, another Kuhn instiution, because of the climax in the ffairs of the First-Second National. 11 demands up to $50 were paid ithout question and notice for largr amounts was asked, running thir: sixty and ninety days, according 0 the amount demanded by the de-

4. July 8, 1913 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, July 8, 1913

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Go Into Hands of Receivers After Investigation by the Government American Water Works Company Go Down With the Institutions Secretary McAdoo Declares General Conditions Are Sound and Safe Pittsburgh, Pa., July 7.-The Sec ond National bank of Pittsburgh, the First National bank of McKeesport, a neighboring city; the American Waterworks and Guarantee company, and the banking house of J. S. and W. S. Kuhn, Inc., of Pittsburgh, were forced into the hands of receivers 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 by Deputy Comptroller of Currency T. P. Kane, after efforts had been made to meet the government's requirements regarding their degal 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 Waterworks and Guarantee company. W. S. Kuhn, president of the FirstSecond National bank and prominently associated with other institutions, was forced into a receivership. J. Kuhn is president and director of the McKeesport bank, and also closely allied with other interests involved in the receivership appointments. When it was learned that the banks had suspended business steps were taken to protect the American Waterworks and Guarantee company and Kuhn's banking house. and application was made in the federal this afternoon for receivers for both institutions. The former First National bank was accredited one of the strongest banks in the country and merged with the Second National last March, the energed institution taking the name of the two banks. The receivers were appointed this afternoon. General Condition Safe. Washington, July 7.-Secretary McAdoo in a statement tonight declared the general banking condition in Pittsburgh as well as in the entire country was strong and sound, and he expected no further trouble as a result of the failure of the Pittsburgh FirstSecond National bank. He will make a sweeping investigation of the failure of the bank. It developed tonight that one fact that drew the suspicion of the treasury department to the bank's condiion was the discrepancy of nearly two million between the sworn statement on June 4 and what should have bee a true copy of this report published by the bank in the newspapers of Pittsburgh, The critical eyes of the government have been focused on the consolidation of the First-Second National since the amalgamation in March, and on the First National for several years.

5. July 8, 1913 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, July 8, 1913

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Banking Circles Unaffected. Pittsburgh, July 8.-Financial Pittsburgh showed little outward evidence today of yesterday's crash in banking circles involving the failure of the First-Second National Bank, with $32,000,000 deposits, the First National Bank of McKeesport, an allied institution, and the appointment of receivers for the American Waterworks and Guarantee Company, and for the banking house of J. S. and W. S. Kuhn, incorporated. Nothing unusual was observed about other banks of the city except the Pittsburgh Bank of Savings, another bank controlled by J. S. and W. S. Kuhn. who controlled the majority of stock in the two banks that suspended yesterday. The run on the savings institution. that was started by the failures yesterday, was resumed today, but the same method as adopted yesterday was pursued today. All depositors were paid $50 at once and notice of thirty, sixty and ninety days for larger amounts were required. No Serious Result Anticipated. With the assurance of several millions in cash and quick assets in hand the run on this bank is not looked upon as likely to result seriously, in fact bankers with no connection with the Kuhn interests assert that the bank of savings will weather the situation and make all payments demanded under the conditions imposed, with the result that at the expiration of the time for withdrawal of larger amounts the public's confidence will be restored. About the First-Second bank today large groups of foreigners were gathered, copying from the doors of the foreign banking department the notice posted by the government, which was in sixteen different languages. A meeting for the clearing house association was called for later in the day when a statement is expected regarding the closing of the First-Second National bank. New Officers Elected. J. S. and W. S. Kuhn, today resigned as president and vice president of the Pittsburgh Bank of Savings at which a run is being directed. The followink officers were chosen: W. J. Jones, president; L. M. Plumer, vice president: A. N. Voegtley, secretary and treasurer. Run Subsides. The failure of the First-Second National Bank of Pittsburgh, and the First National Bank of McKeesport, with the subsequent receiverships for the American Waterworks and Guarantee Company and the banking firm of J. and W. S. Kuhn Company, who were dominant factors in the former institutions, it was established by noon today, would have no deleterious effect upon other financial institutions. The run on the Pittsburgh Bank for Savings, a Kuhn institution, which started yesterday, seemed to have abated shortly after the announcement that J. S. and W. S. Kuhn had resigned from the presidency and vice presidency of the bank. Contemplated meeting of the clear-

6. July 8, 1913 The Ocala Evening Star Ocala, FL
Article from The Ocala Evening Star, July 8, 1913

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NOT LIKELY TO SPREAD Pittsburg, July 8.-The FirstSecond National Bank of Pittsburg, the First National Bank of McKeesport, a neighboring city, American Waterworks and Guarantee Company and the banking house of J. S. and W. H. Kuhn, incorporated, of this city, were forced into the hands of receivers yesterday, through failure of the first named institution. Washington, July 8.-Secretary McAdoo says that the general banking condition in Pittsburg, as well as in the entire country, is strong and sound, and that he expects no further trouble as a result of the failure of the Pittsburg First-Second National Bank. "The failure of the Pittsburg bank is simply a sporadic case of unsound banking, and has no other significance," the secretary said.

7. July 9, 1913 New-York Tribune New York, NY
Article from New-York Tribune, July 9, 1913

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PITTSBURGH REGAINING FINANCIAL CONFIDENCE Clearing House Declines Offers of Assistance and Run on Bank Abates. Pittsburgh. July 8.-To the decisive statement of Secretary of the Treasury McAdoo, issued last night, is attributed the restoration of almost normal conditions in financial Pittsburgh to-night, despite the closing yesterday of the doors of the First-Second National Bank, àn institution that had been accredited one of the strongest in the country. While the situation was tense in the financial world yesterday, the flat statement of facts of the Secretary served to develop an overnight optimism that grew in magnitude as to-day advanced. The closing of the First-Second was naturally followed by suspension of its affiliated bank, the First National of McKeesport, and the appointment of receiverships for the banking house of J. S. and W. S. Kuhn, Inc., whose principals were the majority stockholders of both institutions, and a like action with the American Waterworks and Guarantee Company, an enterprise fathered by the Kuhn interests. Another Kuhn interest that was affected, the Pittsburgh Bank for Savings, suffered somewhat from the complication, a run being started on it yesterday, chiefly by small depositors. This was continued in somewhat greater magnitude early to-day, but it appeared to abate as the day wore on. The bank sidewalk was roped off and mounted police maintained order. Yesterday $57,000 was withdrawn from the bank, while the deposits were $20,000. To-day's figures were not obtainable, but It is said the withdrawals were under yesterday's figures. There were reports that $1,000,000 had been shipped to the Pittsburgh Bank for Savings to-day from Philadelphia, but this was not verified, and was discredited by clearing house members who verify the statement of the bank made yesterday that this bank has $5,000,000 in cash, and $6,000,000 in quick assets, enabling it to meet any stress or emergency. About noon the announcement was made that J. S. Kuhn, the president, and W. S. Kuhn, the vice-president, had resigned, and that W. J. Jones, the former secretary and treasurer of the bank

8. July 10, 1913 Gilpin Observer Central City, CO
Article from Gilpin Observer, July 10, 1913

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GENERAL. Bacheler criminals outnumber the married ones in New York in the ratio of nearly 3 to 1, as is shown in the annual report of the chief clerk of the district attorney's office. An unidentified negro who had attacked a young white girl at Bonifay, Fla., was taken by a mob from a train on which county officers were hurry. ing him to Pensacola and was hanged to a telegraph pole and then shot. That Attorney General McReynolds had full knowledge of the almost incredible depravity of the Caminetti Diggs white slave cases before he or dered the postponement of the trials and that he was implored by United States District Attorney McNab of San Francisco not to countenance delay is revealed by the records. Arrested on the charge of having passed a bad check at a seaside resort Simon P. Helfinstine, who is in jail here at Los Angeles, startled officials of the sheriff's office with a purported confession in which he detailed the series of eight murders in Ohio. These include the slaying of Pearl Bryant for whose death two medical students Jackson and Walling, were executed. The First-Second National Bank of Pittsburg, the First National Bank of McKeesport, a neighboring city, the American Waterworks and Guarntee Company and the banking house of J S. and W. S. Kuhn, incorporated, of Pittsburg, Pa., were forced into the hands of receivers through failure of the first-named institution to open its doors. The failure involves $150,000, 000. In a quiet ceremony, attended only by immediate relatives, Mrs. Barry Sullivan, of Denver, became the bride of Albrecht von Schroeder of Bostor at the summer home of the bride's father, Chester S. Morey, at Harbo Point, Mich. Officials of cae of the larger pack ing plants at the Chicago stockyards will not frown in future when an ex perienced stenographer announce her resignation and intention to mar ry. Instead, they will write out E check for $25 to be presented the daj after the wedding.

9. July 10, 1913 The Arvada Enterprise Arvada, Morrison, CO
Article from The Arvada Enterprise, July 10, 1913

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GENERAL. Bachelor criminals outnumber the married ones in New York in the ratio of nearly 3 to 1, as is shown in the annual report of the chief clerk of the district attorney's office. An unidentified negro who had attacked a young white girl at Bonifay, Fla., was taken by a mob from a train on which county officers were hurrying him to Pensacol and was hanged to a telegraph pole and then shot. That Attorney General McReynolds had full knowledge of the almost incredible depravity of the CaminettiDiggs white slave cases before he ordered the postponement of the trials and that he was implored by United States District Attorney McNab of San Francisco not to countenance delay is revealed by the records. With every available man from Mill Valley and the surrounding country, reinforced by troops from the Presidio at San Francisco and Fort Baker on the fire line, combatting with backfire the half-mile front of the forest blaze which swept down Mount Tam alpias, Calif., the authorities ex pressed confidence that they would be able to save Mill Valley and near by resort towns from destruction. The First-Second National Bank of Pittsburg, the First National Bank of McKeesport. a neighboring city, the American Waterworks and Guarntee Company and the banking house of J. S. and W. S. Kuhn, incorporated, of Pittsburg, Pa., were forced into the hands of receivers through failure of the first-named institution to open its doors. The failure involves $150,000,000. In a quiet ceremony, attended only by immediate relatives, Mrs. Barry Sullivan, of Denver, became the bride of Albrecht von Schroeder of Boston at the summer home of the bride's father, Chester S. Morey, at Harbor Point, Mich. Officials of one of the larger packing plants at the Chicago stockyards will not frown in future when an ex: perienced stenographer announces her resignation and intention to marry. Instead, they will write out a check for $25 to be presented the day after the wedding.

10. July 12, 1913 The Idaho Springs Siftings-News Idaho Springs, CO
Article from The Idaho Springs Siftings-News, July 12, 1913

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GENERAL. Bachelor criminals outnumber the married ones in New York in the ratio of nearly 3 to 1, as is shown in the annual report of the chief clerk of the district attorney's office. An unidentified negro who had attacked a young white girl at Bonifay, Fla., was taken.by a mob from a train on which county officers were hurrying him to Pensacola and was hanged to a telegraph pole and then shot. That Attorney General McReynolds had full knowledge of the almost incredible depravity of the CaminettiDiggs white slave cases before he ordered the postponement of the trials and that he was implored by United States District Attorney McNab of San Francisco not to countenance delay is revealed by the records. With every available man from Mill Valley and the surrounding country, reinforced by troops from the Presidio at San Francisco and Fort Baker on the fire line. combatting with back. fire the half-mile front of the forest blaze which swept down Mount Tamalpias, Calif., the authorities expressed confidence that they would be able to save Mill Valley and nearby resort towns from destruction. The First-Second National Bank of Pittsburg, the First National Bank of McKeesport, a neighboring city, the American Waterworks and Guarntee Company and the banking house of J. S. and W. S. Kuhn, incorporated, of Pittsburg, Pa., were forced into the hands of receivers through failure of the first-named institution to open its doors. The failure involves $150,000, 000. In a quiet ceremony, attended only by immediate relatives, Mrs. Barry Sullivan, of Denver, became the bride of Albrecht von Schroeder of Boston at the summer home of the bride's father, Chester S. Morey, at Harbor Point, Mich. Officials of one of the larger packing plants at the Chicago stockyards will not from in future when an experienced stenographer announces her resignation and intention to mar. ry. Instead, they will write out a check for $25 to be presented the day after the wedding.