Pittsburg Bank For Savings (Pittsburg, PA)

Episode Information

Episode UID
2506048691363
Episode Type
Run Only
Bank Type
savings
Bank ID
250604869 hash
Start Date
July 7, 1913
Location
Pittsburg, Pennsylvania (40.441, -79.996)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ff5b3d82638f75fc

Response Measures

None

Events (1)
1. July 7, 1913 Run
Cause
Local Banks
Cause Details
Run was precipitated by the closing/suspension of the nearby First-Second National Bank (and allied McKeesport bank) controlled by the Kuhns.
Measures
Paid small depositors $50 on demand; required 30/60/90 days' notice for larger withdrawals; management resignations and new officers appointed to reassure public.
Newspaper Excerpt
The suspension of the First-Second National bank precipitated a run on the Pittsburgh bank for savings
Source
newspapers

Newspaper Articles (13)
1. July 7, 1913 The Fargo Forum and Daily Republican Fargo, ND
Article from The Fargo Forum and Daily Republican, July 7, 1913

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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, 1913 Tonopah Daily Bonanza Tonopah, NV
Article from Tonopah Daily Bonanza, July 7, 1913

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PITTSBURG BANK IN TROUBLE CAPITAL IMPAIRED TO THE EXTENT OF OVER A MIL. LION DOLLARS By Associated Press) PITTSBURG, Ja., July 7.-Because of differences of long standing with the treasury department concerning the character and value of the assets of the former First National bank of Pittsburg, merged with the Second National bank last March, the title of the First-Second National bank of Pittsburg, the bank closed its doors today on order from Deputy Comptroller Kane. The Pittsburg clearing house has taken charge. No further trouble is expected. It is said that at least one-third of the $3,500,000 capital is impaired. W. S. Kuhn, president of the bank, also is vice president of the American Water / Works and Guarantee company which controls about 40 plants in various cities of the United States, and is largely interested in irrigation projects. The capital stock of various controlled companies is $73,000,000. Kuhn is president and director of the Sacramento Valley Irrigation company, and James S. Kuhn, his brother, is president and director of the D American Water Works and Guarantee, and many subsidiaries, including the California-Idaho company, owning land in Sacramento valley. He is president of the First National bank it of McKeesport, which also closed its d doors today, and of the Pittsburg of Bank for Savings, which suffered a o run today. The federal court late it today appointed receivers for the d American Water Works and for J.S. d and W. S. Kuhn, Inc. g SACRAMENTO, July 7.-One of the i. Kuhn projects in this state consists g of 225,000 acres in Glenn and Co is lusa counties.

3. July 7, 1913 Newark Evening Star and Newark Advertiser Newark, NJ
Article from Newark Evening Star and Newark Advertiser, July 7, 1913

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First-Second National of Pittsburgh and McKeesport First National Fail. RECEIVER APPOINTED FOR A $73,000,000 COMPANY Run Is Made Upon Savings Bank When Depositors Hear of Closing of Great Institution Nearby. PITTSBURGH, Pa. July 7.-The of First-Second National Bank, Pittsburgh, the second largest in the city, and one of the largest in the country, was closed today by order of the comptroller 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 the persistent rumor that a receiver would be asked 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 forty water works plants in the United States. Differences between the officials of the First-Second Bank and the treasury department over the character of the bank's assets are said to have led to the order closing its doors. No details of the differences had been announced by the treasury department this afternoon. The First-Second National Bank is a recent consolida tion of the First and Second National banks of Pittsburgh, and has deposits of more than $30,000,000. The suspension of the institution precipitated a run on the Pittsburgh Bank for Savings, of which J.S. Kuhn is president. Attorneys this afternoon appeared before Judge C. P. Orr in the Federal Court and asked for receivers for the American Water Works and Guarantee Company, and also for the firm of J. S. and W. S. Kuhn, Inc. For the former these were appointed J. S. Kuhn, W. S. Kuhn, J. H. Purdy, general manager of the company, and Samuel Bailey, jr., a bank official of this city. For the Kuhn Company was appointed J. K. Duff, who is treasurer of the company. Bonds of $50.000 were ordered filed for each receiver. The legal reserve of the First-Second National Bank of Pittsburgh was deficient by $2,145,000 on June 4, the date of the last call by the comp troller of the currency. This brought the situation to a climax. Suspensions Cause Excitement. The suspension of the First-Second National Bank, of Pittsburgh, and First National Bank, of McKeesport, caused considerable excitement in the downtown district. Shortly before noon the following notice was posted on the doors of the First-Second Bank: "Payment of all items maturing here will be received. (Signed) "C. C. MURRAY, Receiver." As word of the suspension of the First-Second National Bank became generally known depositors of the Pittsburgh Bank for Saving, located a few blocks away, started a run on that institution. J. S. Kuhn is president of this bank. Several thousand persons congrerated about the First-Second National Bank at noon. A squad of police was necessary to keep the great. noonday crowd on the move. Later it was said that such an examination as national officers had been able to make of the First-Second National's condition indicated that at least one-third of its $3,400,000 capital was impaired. The officers of the First-Second National Bank. of Pittsburgh, are: W. S. Kuhn, president, and J. M. Young, L. William McConway and Oscar Telling, vice-presidents. Mr. Young is also cashier. Has Plants in Eighty Cities W. S. Kuhn is also vice-president and the American Water Works J.S. Guarantee of Company of which company Kulan is president. The about controlls water works plants in United eighty cities and towns in the the States. The capital stock of about various controlled companies is $73,000,0000. The First National Bank, of McKeesport, today posted this notice: "On account of the First-Second asking Na Bank of Pittsburgh for tional receiver it is thought best this for all a of our depositors to close bank The for last the statement present. of the bank's the made upon call business of condition comptroller as of close of 4: June Resources- and discounts, and $15,704,901.16: overdrafts. secured bonds to $1,900,000; unsecured, $2,571.76: U. S. U.S. secure circulation. U. S. deposits, $171. bonds to secure on hand, $16,000; 000; U. S. bonds $40,121.26 premiums on U. S. etc., bonds, $8,549,236.95 bonds. securities, furniture and fixtures, banking house. estate owned, $176,755.04: other real banks due from national due $1,541,977.65: $1,178,987.06; reserve agents), $1, (not State banks and bankers, reserve from 316,820.23: due from approved $1,216,447.75 agents, Kuhn interests have centred The of late in irrigation projects the lorgely West. They also control in the Traction and Water West Penn Company. n combination Penn- of Power interests western a tro!ley line and the operations of this sylvania bituminous mines in Coal froup State, of especially the United (Continued on Page 2. Column T.)

4. July 8, 1913 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, July 8, 1913

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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 The liquidation of the bank and the distribution of its assets will proceed as expeditiously as possible." During the early hours of the day a run was made on the Pittsburg 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 notice for larger amounts were asked, running 30, 60 and 90 days according to the amount demanded by the depositor. 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. The affairs of the First-Second Nation. al 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 atfairs 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-Second Bank, has not been in Pittsburg for some days, having been called to the bedside of his wife who is ill at Pride's Crossing, Mass, Pittsburg, Pa., July 7.-Differences of long standing with the treasury department concerning the character and value of certain assets of the former First National Bank of Pittsburg, which was merged with the Second National Bank, last March, under the tiUe of the First-Second National Bank of Pittsburg, culminated, this morning, in the closing of the institution by order of Deputy Comptroller of the Currency 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 investicote the bank and en hour

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 Evening Star Washington, DC
Article from Evening Star, July 8, 1913

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BANKS DECLINE FEDERAL FUNDS Financial Pittsburgh Shows No Outward Evidence of Big Failure. SAVINGS INSTITUTIONS WILL WEATHER RUN Kuhns Resign as Officers-Inquiry Will Be Started-Bank Mismanaged. PITTSBURGH, July 8.-Financial Pittsburgh showed little outward evidence today of yesterday's crash in banking circles involving the failure of the FirstSecond 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, Incorporated. J. S. and W. S. Kuhn this morning resigned as president and vice president. respectively, of the Pittsburgh Bank for Savings. The following officers were elected to take charge of the bank: W. J. Jones. president: L. M. Plumer, vice president: A. N. Voegtley, secretary and treasurer.

7. July 9, 1913 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, July 9, 1913

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Run Starts On a Savings Bank SMALL DEPOSITORS PAID $50 ON DEMAND, PITTSBURG SITUATION Aside from This Run Financial Conditions There Are practically NormalBank Prepared for Any Emergency, Pittsburgh, July 8-To the decisive and sharp cut statement of Secretary of the Treasury McAdoo issued last night is attributed the restoration of almost normal conditions in financial Pittsburgh tonight despite the closing of the First-Second National bank yesterday, an institution that had been accredited one of the strongest in the country. While the situation inwas tense yesterday, and little formation as to posible developments was obtainable the flat statement of facts of the secretary served to develop an overnight optimism that grew in magnitude as today advanced. McKeesport Bank Suspends. 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. Run on Savings Bank. 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 appears to abate as the day wore on. apears to abate as the day wore on. Crowds assembled about the bank building and the sidewalk about the building was roped off. The small groups of depositors that entered the bank were promptly paid $50 upon demand as yesterday, and required to give the legal notice of 'thirty, sixty or ninety days, to withdraw other amounts above stated figures. Yesterday $57.00 Owas withdrawn from the bank, while the deposits were $20,000. It is assured the withdrawals were under yesterday's figures. Prepared For Any Emergency. There were reports that a million dollars had been shipped to the Pittsburgh Bank for Savings today 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, Resignation of the Kuhns. About noon the announcement was made that J. S. Kuans, president and W. S. Kuhns, vice president, had resigned and that W. J. Jones, the former secretary and treasurer of the bank had been made president, with A. N. Vegtly, former assistant to Mr. Jones, as secretary and treasurer while L. M, Plummer, a director, was made vice president. Several Decline Receivership. Expected statements as to the American Waterworks and Guarantee company were not forthcoming today, the delay being attributed to the delay in the appointment of the fourth receiver, which Judge Orr announced should be a man having no business interests with the Kuhns. Several business men have refused to accept the appointment of receiver.

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

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

9. July 9, 1913 Amarillo Daily News Amarillo, TX
Article from Amarillo Daily News, July 9, 1913

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BANK CONDITIONS ARE AGAIN NORMAL CLOSING CONDITIONS THE SAME AS ON ANY OTHER BUSINESS DAY. CONFIDENCE IS RESTORED McAdoo Made Decisive Statement Reassuring Public and Run on Bank Soon Was Discontinued. By Associated Press. PITTSBURG, Pa July 8.--Almost normal conditions exist in financial Pittsburg tonight, despite the failure of one of the supposed strongest banks in the country yesterday. The decisive statement of Secretary of Treasury McAdoo is largely responsible for restored confidence. The run by small depositors of the Pittsburg bank for savings ended when the Kuhns, president and vice president, resigned Closing conditions were not different from other business days.

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

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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.

11. July 9, 1913 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, July 9, 1913

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RUN ON BANK CONTINUES. PITTSBURG, July 9.-Another heavy run started to-day when the Pittsburg Bank for Savings opened its doors. Police held the crowd of at least 500 back, permitting one person at a time to enter the bank

12. July 9, 1913 The Fairmont West Virginian Fairmont, WV
Article from The Fairmont West Virginian, July 9, 1913

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Finance Blow In Pittsburgh Passes Over CONFIDENCE RESTORED WHEN SAVINGS BANK CUSTOMERS MAKE DEPOSITS. (BY ASSOCIATED PRESS) PITTSBURGH, Pa., July 9.-When the Pittsburgh Bank for Savings open ed for business this morning the run that was started on Monday upon the closing of the First-Second National bank was resumed but not in such volume as the two preceding days. Po. lice regulations continued to be maintained and all the receiving windows, were thrown open for the use of those desiring to withdraw money from the bank. Those who came to deposit found difficulty in being waited on quickly and no complaints were made which W. J. Jones, president, who was elected yesterday said this was a demonstration of the confidence in the bank. He further announced that all tellers were at the service of those desiring to withdraw and as little inconvenience as possible would be caused. He again reiterated the former declaration of the members of the bank's officials that the bank was prepared to meet the most exacting situation.

13. July 11, 1913 Northern Wisconsin Advertiser Wabeno, WI
Article from Northern Wisconsin Advertiser, July 11, 1913

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U. S. MAY PROBE BANK FAILURES First-Second National of Pittsburgh Suspends. REPORT SHOWS DISCREPANCY Receivers Are Appointed for $73,000,000 Waterworks Company Controlled by the Kuhns - McAdoo Reassures Financiers. Pittsburgh, Pa., July 9.-As a result of the suspension of the First-Second National bank of Pittsburgh Monday, one of the largest institutions in the country, of which W. S. Kuhn is president, the government may start criminal prosecution. The bank had more than $30,000,000 in deposits. The circumstances on which the probable prosecutions are based is the discrepancy of nearly $2,000,000 between the sworn report to the comptroller of the currency as to the bank's condition on June 4 and what should have been a true copy of this report published in the Pittsburgh newspapers. The report to the comptroller showed assets and liabilities aggregating $39,997,347.10 each, while as given to the Pittsburgh newspapers for publication the report placed these totals at $38,103,886.39. the $1,893,460.71 difference representir g rediscounts or borrowed money. Officials declare that this was illegal. The closing of the First-Second bank was followed by action in rapid series against various other interests with which the Kuhns are identified. During the day there was a run on the Pittsburgh Bank for Savings, a large institution, of which J. S. Kuhn is president. Then came the closing of the First National bank of McKeesport, an adjacent city, which is closely allied to the First-Second of Pittsburgh. Soon afterwards a receiver was appointed for the banking house of J. S. & W. S. Kuhn, incorporated. Greatest of all disasters in this tremendous financial crash, however, was the receivership for the American Waterworks and Guarantee company, the largest concern of its kind in the country. of which J. S. Kuhn is president. This corporation controls waterworks plants in about eighty cities and towns in the United States. and the capital stock of the various controlled companies approximates $73,000,000. The one consoling feature of the sitnation was a reassuring statement sent out from Washington by Secretary of the Treasury McAdoo, in which the declared that the general banking condition in Pitsburgh, as well as in the entire country, was strong and sound, and that he expected no further trouble as a result of the failure. The secretary will, it is said, make a sweeping investigation of the causes of the failure of the big bank and probably will call upon the department of justice to assist the treasury in unearthing any possible irregularities in connection with the collapse. The closing of the First-Second National bank was ordered by Deputy *Comptroller of the Currency T. P. Kane after every effort had been made to meet the government requirements 18 to legal reserve.