gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
adb1d6f73232d04a
Response Measures
Accommodated withdrawals, Full suspension, Books examined
Other: Reorganization measures: Kuhn interests were forced to withdraw, officers resigned and the McKeesport bank was to be reorganized (board reconstituted) before reopening.
Clearinghouse involved: Yes
(loan, examination, or other measures)
Description
Closure followed government intervention related to the Kuhn scandal; bank reorganized and expected to reopen shortly.
Events (4)
1.February 10, 1875Chartered
Source
historical_nic
2.July 7, 1913Run
Cause
Bank Specific Adverse Info
Cause Details
Depositor withdrawals triggered by revelations/connection to the Kuhn interests and alleged mismanagement at affiliated Pittsburgh bank.
Measures
Directors to reorganize and eliminate Kuhn interests; require notices for larger withdrawals (30/60/90 days) and pay small depositors immediately.
Newspaper Excerpt
The suspension of the First-Second National bank precipitated a run on the Pittsburgh bank for savings... The First National bank of McKeesport, Pa., closed its doors, Secretary McAdoo advised today
Source
newspapers
3.July 7, 1913Suspension
Cause
Government Action
Cause Details
Comptroller/treasury officials declined to permit reopening amid investigation of affiliated First-Second National and Kuhn connections.
Newspaper Excerpt
The First National bank of McKeesport, Pa., closed its doors ... The government refused to let the bank open.
Source
newspapers
4.July 13, 1913Reopening
Newspaper Excerpt
the suspended First National Bank of McKeesport ... would reopen for business on next Wednesday.
Source
newspapers
Newspaper Articles (24)
1.July 7, 1913The Fargo Forum and Daily RepublicanFargo, ND
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CULMINATES SERIES OF DIFFERENCES Bank Ordered Closed by Acting Comptroller Kane Assistant Secretary Williams of Treasury Also Acted Character of Assets Was Not Tolerated by Department Pittsburgh, Pa., July 7.-The First and Second National bank here was ordered closed by the acting comptroller of currency and was not open for business this morning. This marked the culmination of differences of long standing with the treasury department concerning the character of certain assets of the former First National bank of Pittsburgh, which merged with the Second National bank last March, under the title of the First and Second National bank of Pittsburgh. The Pittsburgh closing house association has taken charge of the situation generally and announces that no further trouble is expected. The First and Second National bank is the second largest in the city and one of the largest in the country. W. S. Kuhn and J. S. Kuhn , Bros., own the controlling interest in that and the First National bank of McKeesport, Pa., which also has closed its doors. The closing lead to the presistent reports that a receiver would be asked for the American Water Works & Guarantee Co., the largest operating water works company in the United States, controlling over forty such plants throughout the country, with which the Kuhns are prominently identified. The suspension of the First and Second National bank precipitated a run on the Pittsburgh bank for savings, of which J. S. Kuhn is president. Application for a receivership for the American Water Works & Guarantee Co. was filed in the federal court at 1:55 this afternoon. Statement by Williams. Washington, July 7.-The treasury officials after a conference over the closing of the First and Second National bank of Pittsburgh, announced an official statement to be issued this afternoon defining the situation. The legal reserve of the bank was deficient by $2,045,000 on June 4, the date of the last call by the comptroller of currency. This brought the situation to a climax. John Skelton Williams, assistant secretary of the treasury and acting comptroller of currency for Kane, is in Pittsburgh. The First National bank of McKeesport, Pa., closed its doors, Secretary McAdoo advised today James S. Kuhn, brother of W. S. Kuhn, president of the closed First-Second National bank of Pittsburgh, president of the McKeesport bank, whose capital is $300,000 and surplus $500,000, according to the last reports of the comptroller of currency. The receivers were also asked for the firm of J. S. and W. S. Kuhn Inc. the receivers were appointed and bonds of $50,000 ordered filed for each,
2.July 7, 1913The Fairmont West VirginianFairmont, WV
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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
3.July 7, 1913Las Vegas OpticLas Vegas, NM
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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.
4.July 8, 1913The San Francisco CallSan Francisco, CA
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Allied Houses Into Receiverships-Subsidiary Concern, Also Closed, Holds Heavy Interests in West "SPORADIC CASE" IS McADOO'S COMMENT Another Firm, Under Same Control, Sustains Severe Run and Claims Solvency - - Consolidation Which Produced the Crash Is Charged to Taft Regime PITTSBURG, July 7.-The FirstSecond National bank of Pittsburg, the First National bank of McKeesport, a neighboring city, the American Waterworks and Guarantee company and the banking house of J. S. & W. S. Kuhn. incorporated, of this city, 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 the deputy comptroller 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 Waterworks and Guarantee company RELIEF MEASURE ASKED 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 Waterwarks and Guarantee company, besides being a director of the McKeesport bank. J. S. Kuhn was a director of the First-Second National bank and president and director of the American Waterworks and Guarantee company, besides being a 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 Kuhn's banking house; and application was made in the federal court this afternoon for receivers for both institutions. OFFICIAL STATEMENT MADE Throughout the day a statement of the banks and affected companies' affairs was awaited with feverish anxlety, 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 June 4 on the last bank call of the comptroller. Mr. Kane issued the following: "At a meeting of the directors of the First-Second National - Sunday the condition of the bank and the results of the recent investigation of the bank and the results of the recent investigation the bank examiner were discr full consideration the see director Pill their inability to make goos the bank's impaired capital and without dissent it was décided that it would be best for protection of depositors and all other interests to have the comptroller of the current take charge and to arrange for the liquidation of the bank. NO OTHER COURSE "The Pittsburg Clearing House committee, which has been engaged for the last four days in going over the affairs of the bank with the examiners and in making a careful investigation as to its condition. refused to furnish funds sufficient to justify the bank in keeping its doors open, and agreed under the circumstances there was no alterna-
5.July 8, 1913Brownsville HeraldBrownsville, TX
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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.
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, 1913South Bend News-TimesSouth Bend, IN
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Both the Officials of the Defunct Bank and the Clearing House Association Issue Statements. FOUR INSTITUTIONS IN HANDS OF RECEIVERS Press Agent is Responsible For Charge That Government is to Blame But it is Quickly Recalled. PITTSBURGH, July 8. The FirstSecond National bank of Pittsburgh, the First National bank of McKeesport, a neighboring city, the American Water Works and Guarantee Co. and the banking house of J. S. and W. S. Kuhn, inc., of this city, 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 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 Co. 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 Water Works and Guarantee Co., 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 Co., 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 Co. and the Kuhn's banking house and application was made in the federal court Monday 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 Monday night when Mr. Kane 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. Issue Statement. Monday night Mr. Kane issued the following: 'At a meeting of the directors of the First-Second National bank held on Sunday, the condition of the bank and the results of the recent investigation of the bank examiners were discussed. After full consideration, the directors declared their inability to make good the bank's impaired capital 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 to take charge and to arrange for the liquidation of the bank. "The Pittsburgh clearing house committee, which has been engaged for the past four days in going over the affairs of the bank with the examiners and, in making a careful investigation as to its condition, refused to furnish funds sufficient to justify the bank in keeping its doors open, and agreed under the circumstances there was no alternative to the course 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 bank's depositors. of the bank, distribution The liquidation of and the its assets will proceed as expeditiously as possible. a clearing house Pittsburgh After protracted meeting association of the this institution Monday night issued this statement: Was Not Unexpected. "The closing of the First-Second National bank by the deputy comptroller of the currency was not tirely unexpected by this association enand it was therefore prepared for the crisis. The members of the clearing house are all in good condition and we believe that the banks and trust companies in the city of a are emergency. as whole, prepared Pittsburgh, for any It will take several days to arrange for the transfer of accounts and the proper and careful handling of checks made on the First-Second National bank. We therefore ask the indulgence of the public and will help in to assist in the of that possible they every solution request way the problem which confronts the banks." clearing house committee and the During the early hours of the day, a Bank run was made on the Pittsburgh for Savings, another Kuhn infairs stitution. because of the climax of afof the First-Second up to $50 All without demands question, and notice were National. paid larger amounts were asked. running for 30. 60 and 90 days, according to the This amount demanded by the depositor. institution also made a ment that it had $5,000,000 in stateThe and any quick emergency. assets and was prepared cash for before the closing of run the was banking over hours, and it is not thought iety over this institution need any be anx- felt. which The former Two Banks First Merged. National bank, was accredited as one of the strongest banks in the country was
8.July 8, 1913Las Vegas OpticLas Vegas, NM
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RUN ON KUHN BANK CONTINUES TREASURY OFFICIALS SAY KUHN REFUSED TO ACCEPT GOVERNMENT ASSISTANCE BANKS WERE MISMANAGED ANOTHER RECEIVER FOR AMERICAN WATERWORKS COMPANY APPOINTED Pittsburgh, July 8.-Pittsburgh's one day flurry in financial circles caused by the bank failures of yesterday, apparently was a matter of history at noon today. The failure of the First-Second National Bank of Pittsburgh and the First National of McKeesport with the subsequent receiverships for the American Waterworks and Guarantee company and the banking firm of J. S. 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 abate shortly after the announcement that J. S. and W. S. Kuhn had resigned from the presidency and vice presidency of the bank. Contemplated meetings of the clearing house association were called off about midday when it definitely decided that all its member banks were in desirable condition and in need of no assistance which if required, was forthcoming from New York, Chicago and St. Louis. The following officers of the Pittsburg Bank and Savings were elected: W. J. Jones, president; L. M. Plumer. vice president; A. N. Voegtley, secretary and treasurer. In the United States district court, today Judge Charles P. Orr appointed Fred G. Kay as the fourth receiver for the American Waterworks and Guarantee company. W. J. Jones, formerly treasurer of the Pittsburgh Bank for Savings, but today made president of the institution, said after his election: "The Kuhns have entirely withdrawn from the bank. As it was they were only nominal heads of the organization. There is no question about out bank. We are backed by many Pittsburgh banks and we have support of the clearing house."
BANK CRASH HAS SMALL EFFECT ON FINANCIAL PITTSBURG Failure of First-Second National With $32,000,000 Deposits and Subsidiary Houses Makes Small Stir. TREASURY OFFICIAL SAYS MISMANAGEMENT Pittsburgh, July 8.-Pittsburgh's one-day flurry in financial circles caused by the bank failures of yesterday apparently was a matter of history at noon today. The failure of the First-Second National Bank of Pittsburgh and the First National of McKeesport, with the subsequent receiverships for the American Waterworks and Guarantee company and the banking firm of J. 8. and W. 8. Kuhn company. who were dominant factors in the former institutions, it was established by noon would have no deleterious effect upon other financial Institutions. The run on the Pitsburgh s Bank for Savings, a Kuhn Institution. which started yesterday, seemed to abate shortly after the announcement that J. S. and W. 8. Kuhn had resigned from the presidency and vice prestdency of the bank. Contemplated meetings of the Clearing House association were called off about midday when it definitely decided that all its member banks were in desirable condition and in need of no assistance which, If required. was fortheoming from New York, Chicago and St. Louis. In the United States district court today Judge Charles P. Orr appointed Fred G. Kay as the fourth receiver for the American Waterworks and Guarantee company. W. J. Jones, formerly treasurer of the Pittsburgh Bank for Savings, but today made president of the institution, said after his election: "The Kuhna have entirely withdrawn from the bank. As it was they were only the nominal heads of the organization. "There is no question about our bank. We are backed by many Pittsburgh banks and we s have the support of the clearing . house
Pittsburgh Banks Will Pay Depositors Pittsburgh, July 8-Financial Pitteburgh shows little effects of yesterday's crash in banking circles involving the failure of the First-Second National bank, with $32,000,000 of deposits, the First National Bank of McKeesport, an allied institution, and the appointment of receivers for the American Water Works and Guarantee company, the largest concern of its kind in the country, and for the banking house of J. S. & W. S. Kuhn, Inc. No unusual scenes were observed about other banks in the city with the exception of Pittsburgh Bank For Savings. The run on the Savings Bank, started by the failures yesterday, was resumed today. All depositors were paid $50 at once and notice of 30, 60 and 90 days for larger amounts was required. John Skelton Williams, assistant secretary of the treasury, who represented Secretary McAdoo at the closing of the Pittsburgh First-National Bank,
11.July 8, 1913The Chronicle=newsTrinidad, CO
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PITTSBURGH FLURRY SUBSIDES Pittsburgh, Pa.. July 8.-Pittsburgh's one day flurry in financial circles caused by the bank failures of yesterday apparently was a malter of history at noon today. The the First-Second and the bank failure of of Pittsburgh First national naof McKeesport with receiverships for o sequent tional the the Ameri- com- subcan Waterworks and Guarantee pany and the banking firm of J. S. d and W. S. Kuhn company who were s dominant factors in the former in stitutions. established by noon t today would here no deleterious of 1. feet upon other financial instituo tions. The run on the Pittsburgh for savC Ings. N Kuhn Institution which star ted yesterday. seemed to abate ahortly after the announcement that .1. 8. and W. S. Kuhn had resigned from the presidency and vice presidency : of the bank. e Contemplated meetings of the : clearing house association were called off about midday when It definN Itely decided that all its member's banks were in destrable condition. K and in need of no assistance which o If required was forthcoming from o New York. Chicago and St. Louis o In the United States district court : today Judke Charles P. Orr appointR ed Frad G. Kay as the fourth receiv: er for the American Waterworks and N Guaranter company. W. J. Jones formerly treasurer of the Pittsburgh bank for savings. bu: : today made president of the institu. o tion. maid after his election: d The Kuhna have entirely with drawn form the bank As it was they were only the nominal heads of the organization. There is no question about our d bank. We are backed by many of y. the Pittsburgh banks and we have the support of the clearing house. Pittsburgh. Pa., July -Financial Pittsburgh showed little outward evidence today of yesterday's crash et circles involving the IN First-Second are in banking of the National fail ⑆ Bank with $32,000,000 of deposits. the First National Bank of McKen et allied Institution. and the to of receivers appointment port. an Guarantes for the American Waterworks et company. the largest concern of Its TM kind in the country. and for the to banking house of J. 8. and W. S Kuhn. Incorporated Nothing unusual was observed about other banks of the city except she Pittsburgh Bank of Savings. an dother bank controlled by J. S. and et W. 8. Kuhn. who controlled the me1. Jority of stock in the two banks that " yesterday as institution suspended the Savings The that run was on he the failures yesterday was pt but the same renumed started by today method to as adopted yesterday was pursued he day All depositors were paid $50 as of once and notice of 20. GO and 90 in days for larger amounts were re c. quired. x. IC J. S. and W 8. Kuhn today re1. signed as president and vice presi⑉ dent of the Pittsburgh Bank of Say TC Ingr The following officers were elected: " w 8. Jones. president 1. M n vice president: A. Vock! Plumer. N. ley. secretary and treasurer The treasury department yester day offered the solvent Pittsburg" banks $5,000,000 of government de he posits to meet any emergency. but n. the offer was declined because the e. banks were in a position to meet the situation as he The entire capital and surplus of d. the First. Second bank. amounting to re $5,500,000. has probably been wiped of out but officers of the bank have assured the government that depos Id iters will be paid in full or nearly din full. ke of McKeesport. Pa. July S The ⑉ First National Bank of McKeesport controlled by J. S. and W. S. Kuhn.
DEPOSITORS STOP RUN ON THE BANK Secretary McAdoo Hurrying Investigation of Affairs of Pittsburgh Institution. a Pittsburgh, July 9-When the Pittsburgh Bank for Savings opened for business today the run that was started on Monday on the closing of the doors of the First-Scened National Bank was resumed, but in less volume than on the two preceeding days. All the tellers' windows were thrown open for the convenience of those desiring to withdraw deposits from the bank. Those who came to deposit found much difficulty in being waited on quickly, and complaints from these, laid with J. J. Jones, who was yesterday elected president, was a demonstration of the confidence in the bank. He reiterated that the bank was prepared to meet the most exacting situation. Secretary McAdoo today continued preparations to refer the question of alleged irregularities in the FirstSecond National Bank to Attorney General McReynolds for investigation. Comptroller Kane declared today that information concerning the government's surveillance 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 small depositois who were not aware of the circumstances the government refused to let the bank open. The First National Bank of McKeesport, which suspended a few hours after the First-Second National Bank was closed, is arranging for resumption of it's re-opening. The directors of this bank will be reorganized and the Kuhn interest eliminated before it is re-opened.
13.July 10, 1913New-York TribuneNew York, NY
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Small Depositors Aided. Information concerning the government's surveillance 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 on 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. "The First National Bank of McKeesport, which suspended a few hours after the First-Second National Bank was closed," said Mr. Kane, "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 connections with the bank. The board of directors of this bank will be reorganized and the Kuhn interest eliminated before the bank is reopened."
14.July 10, 1913The Salt Lake TribuneSalt Lake City, UT
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PITTSBURG BANK SITUATION NORMAL July 9. -Conditions in PITTSBURG, financial circles at the closing hour today to all appearances reached normal The run on the Pittsburg Bank for Savings, which was started by the closing of the First-Second National on Monday. had subsided early in the afternoon. after a resumption of the run this morning had caused some slight anxiety. Further developments in the affairs of the First-Second National were not looked for until Receiver C. C. Murray had opportunity to organize his force necessary in the liquidation of the institution. It was not expected that depositors would receive any dividend before the expiration of two months The First National bank of McKeesport is expected to reopen within a week, after a reorganization of its officers and directorate with the elimination of the Kuhn interests, which held the majority of the stock of the First-Second bank Application was granted by Federal Judge C. P. Orr today for receivers for six subsidiary companies of the American Waterworks & Guaranty company, The companies are the United Coal. the Somerset Smokeless Coal. the Naomi Coal. the Merchants Coal of Pennsylvania, the Isabella-Connellsville Coke and the Pittsburg & Baltimore Coal company Three receivers were appointed for each company, with the exception of the United Coal, for which four will act. The receiverships are made up of these men Samuel A. Gilmore, James D. O'Neil, William K. Johnson, Thurston Wright and Robert P. Watt. each serving for several of the companies. The application was made by Lucien Hill, whose residence Is given as Mary~ land. and in the petition for the IsabellaConnellsville Coke company, Hill is joined by the company itself. The petitions set forth that receiverships were advisable to protect the properties and assets of the companies on account of debits due. Bankers, on the whole, feel that the tension has been relaxed in the financial situation, and that it is greatly relieved.
Conditions Normal. PITTSBURGH July 9.-Conditions in financial circles at the closing hour today had. to all appearances, reached normal. The run on the Pittsburgh bank for savings, which was started by the closing of the First-Second National on Monday, had entirely sub sided early in the afternoon. after a resumption of the run this morning had caused some slight anxiety. Further developments of affairs of the First-Second National were not looked for until Receiver C. C. Murray had had an opportunity to organize his force necessary in the liquidation of the institution. It was not expected that depositors would receive any dividend before the expiration of two months The First National Bank of McKeesport is expected to reopen within a week after a reorganization of its officers and directorate with the elimination of the Kuhn interests. which held the majority of the stock of the First-Second National bank. Other Receiverships. Application was granted by Federal Judge C. P. Orr to-day for receiver ships for six subsidiary companies of the American Water Works and Guarantee Company The companies are the United Coal. The Somerset (Continued on Page Nine.)
16.July 10, 1913Pine Bluff Daily GraphicPine Bluff, AR
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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.
17.July 10, 1913The Prescott Daily NewsPrescott, AR
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EVIDENCE WARRANTS IMMEDIATE INTERVENTION IN PITTSBURG AFFAIRS. MERGER CAUSE OF CRITICISM Acting Comptroller Says First National's Capital Was Impaired at Time of Consolidation With Second National. Washington, July 10.-Secretary McAdoo has asked 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 has 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 has returned from Pittsburg, declared the First National bank of that city should have been "cleaned up or closed up" at the time of its merger with the Second National several months ago. The merger was authorized by Lawrence O. Murray, former comptroller of the currency. At that time, Kane declared 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 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," said Kane. "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 by reason of the Kuhn connection with the bank. The board of directors of this bank will be reorganized and the Kuhn interest eliminated before it is reopened." Kane said information concerning the government's surveillance of the First-Second National 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. "But why do you operate now, doctor?" "He is recovering SO rapidly we can't afford to wait."--Life.
18.July 10, 1913The Times DispatchRichmond, VA
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Startling Disclosures, [Special to The Times-Dispatch.] Washington, July 9.-Startling evidence of criminal mismanagement of the First-Second National Bank of Pittsburgh is believed to have been brought here to-day by Comptroller of the Currency T. R. Kane as the result of a personal investigation of the bank's affairs. Mr. Kane laid before Secretary of the Treasury McAdoo facts which, It is reported, show 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. Treasury officials seem confident that criminal prosecutions will soon be begun, but whether against 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 McReynolds's agents are, however, already trying to trace the responsibility for the conditions which have been brought to his attention. After a conference with Comptroller Kane, Secretary McAdoo said: "There is every reason to believe that many large loans were made by the First-Second National Bank to dummies in the office, and the Department of Justice is informed of certain facts, It is for the Attorney-General to say whether any of these irregularities are criminal. "Mr. Kane assures me that the situation in Pittsburgh is clearing up rapidly. The failure is regarded by many financial men of that city as a sort of blessing in disguise, because it has put an end to conditions which had threatened for months to become serious and create panicky conditions." "The First-Second National Bank should have been closed instead of mergal last spring." was a startling statement made by Comptrolled Kane on his return here. He gave no reasons further than to refer to the condition of the bank for the past two years. 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.
19.July 10, 1913Gilpin ObserverCentral City, CO
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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.
20.July 11, 1913The Marshall RepublicanMarshall, MO
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PITTSBURG QUIET PITTSBURG, Pa., July 3.-Pittsurg's one-day flurry in financial cirles caused by the bank failures of esterday apparently was a matter of istory at noon today. The failure of the First-Second National Bank of Pittsburg and the First National of McKeesport, with the ubsequent receiverships for the American Waterworks and Guaranse Company, and the banking firm of J. S. & W. S. Kuhn Company, who vere dominant factors in the former nstitutions, it was established by 10on today would have no deleterious effect on other financial instutions. The run on the Pittsburg bank for savings, a Kuhn institution, which tarted yésterday, seemed materially o abate shortly after the announcenent that J. S. and W. S. Kuhn had resigned from the presidency and vice-presidency of the bank. Contemplated meetings of the Clearing-House Association were called off about midday, when it was deinitely decided that all its member banks were in desirable condition and in need of no assistance, which, if required, was forthcoming from New York, Chicago and St. Louis. United States District Attorney Jordan said he had had no communiation from Washington regarding any phase of the financial situation or in connection with any financial or ndustrial institution. Expected statements from J. S. Kuhn on any phase of the situation vere not forthcoming during the day.
21.July 11, 1913The Colorado StatesmanDenver, CO
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GENERAL. Independence, La., a town of 1,000 inhabitants, practically was wiped off the map by fire, entailing a loss estimated as exceeding $200,000. No persons were seriously hurt. 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. Manuel Turner, a veteran of the Civil war, residing at Santa Monica, Calif., who celebrated his 107th birthday anniversary, thanks his judgment in remaining single for his long life and apparent good health at this advanced age. 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. "Fresh air, exercise, simple food, a tranquil mind and a friend or two will keep one young," is the doctrine preached and practiced by John D. Rockefeller, who in simple style celebrated the seventhy-fourth anniversary of his birth at Cleveland, Ohio. Wind attaining a velocity of sixtymiles an hour, blinding sheets of rain and hail combined in a storm which swept northern Illinois, southern Wisconsin and parts of Indiana and killed three persons, and injured scores of others. Roofs were blown from scores of buildings.
22.July 12, 1913The Watchman and SouthronSumter, SC
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PITTSBURGH FINANCES NORMAL. Bankers Believe Tension Has Relaxed and Situation Clarified. Pittsburg, July 9.-Conditions in financial circules at the closing hour today, to all appearances, had reached normal. The run on the Pittsburg Bank for savings, which was started by the closing of the First-Second National Bank, Monday, had entirely subsided early in the afternoon, after a resumption of the run this morning had caused some slight anxiety. further developments in the affairs of First-Second National were not looked for until Receiver C. C. Murray had had opportunity to organize his forces necessary in the liquidation of the institution. It was not expected that depositors would receive any dividend before the expiration of two months. The First National Bank, of McKeesport, is expected to reopen within a week after a reorganization of its officers and directors with the ilimination of the Kuhn interests, which held the majority of the stock of the First-Second National. Application was granted by Federal Judge C. P. Orr today for receiverships for six subsidiary companies of the American Water Works and Guarantee Company. The companies are the United Coal, the Somerset Smokeless Coal, the Naomi Coal, the Merchants Coal of Pennsylvania, the Isabella-Connesville Coke, and the Pittsburg and Baltimore Coal Company. Three rceivers were appointed for each company, with the exception of the United Coal, for which four will act. The receiverships are made up of these men: Samuel A. Gilmore, James O. Neil, William K. Johnson, Thurston Wright and Robert P. Watt, each serving for several of the companies. The application was made by Lucien Hill, whose residence is given as Maryland and in the petition for the Isabella-Connesville Coke Company, Hill is joined by the company itself. The petitions set forth that receiverships are advisable to protect the property and assets of the company on account of debts due. W. S. Kuhn, who was president of the First-Second National Bank, and who was at the bedside of his wife, ill in New England, when the crash came Monday, arrived home today. He was closeted with his brother, J. S. Kuhn, all day and announcement was made that he would have no statement to make for several days. Bankers generally feel that the tension has been relaxed and the local financial situation greatly clarified.
23.July 13, 1913New-York TribuneNew York, NY
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STOCK MARKET REVIEW Small Volume of Trading, but Prices Firm at the Close. In view of the light volume of business reported on Friday as the result of the trading on the New York Stock Exchange, recording the smallest day's operations si ce 1836, it was not reasonably to be expected that activity would follow yesterday in a half day's session, oppressed as the market was by the probable labor troubles resulting from the trainmen's and conductors' meeting. which was expected to ratify the strike vote on the Eastern railroads. Only a small attendance on the floor yesterday contributed to the dulness of the session, and such movements 8 we e recorde were confined to the professional element, and the final result of the price changes carried little significance as defining the real market temperament. The exhibition, such as it was, however, presented an element of strength, and net changes at the end of the session were chiefly on the side of an advance. The publication of the late J. Pierpont Morgan's security holdings in The Tribune yesterday morning revealed a collection of some odds and ends which afforded a topic of conversation among the brokers and the few who gathered in the commission houses: especially the report of only one share of United States Steel preferred, which was a surprise to the Street generally and called forth bits of persiflage among the traders, who regarded the showing more as a joke than a record to be taken seriously. Had all the conditions been favorable for a decided improvement in this market foreign sentiment would have been helpful, as cheerfulness was exhibited on the foreign bourses as the result of a better outlook in the Balkans. Naturally, this tone of improvement abroad had some stimulating effect on the opening here, and in American Can, Brooklyn Rapid Transit, Amalgamated Copper, Reading and United States Steel common initial transactions displayed good fractional gains. After the first impulse of strength there was a slight reaction, following the first half hour, and the market became dull, but a firm tone set in which to the close. Canadian Pacontinued list and cific was the strongest of the the feature of the session. but Union Pacific and Southern Pacific assumed strong positions, contrary to the expectations of some traders who had been bearish, particularly on Southern Pacific. New York, New Haven & Hartford was one of the strongest stocks on the list, although the trading was of nc importance from the standpoint of the aggregate number of shares. Among the items of news of the day was an announcement that the suspended First National Bank of McKeesport, which closed its doors as a result of the failure of the First-Second National Bank of Pittsburgh, would reopen for business on next Wednesday. This was accepted as an indication that the worst had been realized in connection with the Pittsburgh failure and that the banking situation would not be further affected outside of the institution itself, as had been already reported.
24.March 4, 1933The Daily CourierConnellsville, PA
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GOVERNOR ORDERS TWO-DAY HOLIDAY FOR STATE BANKS
By International Nows Service. PHILADELPHIA, March 4.-Governor Gifford Pinchot. from his temporary residence at Washington, D. C., today proclaimed mandatory twoday hollday for all Pennsylvania banks. The proclamation issued at 8:30 this morning through Dr. William D. Gordon, State Secretary of Banking, directs all banks in the Commonwealth to remain closed Saturday and Monday. George W. Norris, governor of the Federal Reserve Bank in Philadelphia at whose behest leading Philadelphia financiers assembled in the early Lours the morning to consider decisive action, said the step was made necessary by the growing list state bank holidays. Although it was believed Penneylvania banks could have remained open under the emergency legislation passed by the Legislature last Monday, of holidays by the governors of New York and Illinois and several other states early today precipitated the crisis, Norris explained. "Because of the declaration of bank holiday in New York, Illinois and other states similar action in Pennsylvania has become unavoidable," the Governor declared in his "Were our banks to remain open the demands on them would impose an impossible burden." "Therefore, on the specific recommendation of Governor George W. Norris of the Philadelphia Reserve Bank, hereby declare bank hollday throughout for Saturday, March 5, and Monday, March 6," the proclamation concluded.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
