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PITTSBURG BANK FAILURES. Two Institutions Close Their Doors in Smoky City. Pittsburg, Sept. 5.-The Mount Washington Savings and Trust company was closed today by the Pennsylvania banking commission. The Cosmopolitan National bank of Pittsburg suspended operations today, by order of the controller. It was a fair-sized institution, and the failure created considerable excitement. The liabilities and resources of the Cosmopolitan are nearly $2,000,000.
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TWO BANKS CLOSED PITTSBURG INSTITUTIONS. Cosmopolitan National Followed by Smaller Trust Company. Pittsburg, Sept. 5.-Two financial institutions, the Cosmopolitan National Bank and the Mount Washington Savings and Trust Company, were closed here to-day by orders from the federal and state banking authorities. While the Cosmopolitan National Bank was a fair sized institution, the trust company was a small concern, and there was little or no excitement when the failures became known. The national bank was closed a few minutes after 9 o'clock this morning and the trust company at 11:30 a. m., but the latter suspension could not be confirmed until late this afternoon. The order closing the Cosmopolitan Bank was brought forth by the refusal, it is said, of Bank Examiner John B. Cunningham to approve some of the paper and other securities of the bank for loans aggregating, it is alleged, over $1.000,000. However, the officials of the bank deny that worthless or insufficient securities have been accepted for loans. They say all the paper and other collateral held by the Cosmopolitan is collectible and that the bank is solvent and able to pay all its liabilities. Further than to state that the bank is insolvent neither Examiner Cunningham nor Judge Oldham, of the legal department of the Controller of the Currency, who arrived here from Washington early to-day, would commit himself. According to the bank's last statement its liabilities were $1,861,830.96. The bank's offlcials seemed to be very indignant that the government should close the institution, and the cashier, D. J. Richardson, stated that none of them had any intimation that the bank was in trouble until Examiner Cunningham closed the doors. He declared that the available cash on hand was nearly 50 per cent of the total deposits. Included in the deposits are federal and state deposits of $100,000. each secured by bond. Robert Lyons, who is the receiver for the Allegheny National Bank, which recently failed here, was appointed receiver of the Cosmopolitan. John McClurg is the bank's president. The reason for closing the Mount Washington Savings and Trust Company has not vet developed. It is believed, however, that the trouble of the Cosmopolitan Bank was the cause. The vice-president of the trust company is also a director of the national bank. The capital stock of the trust company is $125,000. Its deposits were $60,000, with loans and discounts of $141,000 and assets said to aggregate $200,000. State Bank Examiner James M. Cover said the institution was closed by Banking Commissioner Berkey because of apparent irregularities. While he knew little of the condition of the bank, he believed it would be possible to adjust the irregularities SO that the doors could be opened for business next Tuesday morning as usual. "I understand," said he, "that there is nothing materially wrong and that the funds of the bank are intact." Harrisburg, Penn., Sept. 5.-The State of Pennsylvania had $100,000 of sinking fund money on deposit in the Cosmopolitan National Bank of Pittsburg. The state is protected by bonds aggregating $175,000. State Treasurer Sheatz is in touch with the banking people at Pittsburg, and will take the usual course to recover the money.
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ONE FAILURE CAUSEO THE OTHER Refusal of Bank Examiner to Approve Certain Papers is Said to Have Brought on Trouble-Indignant Be. cause Government Saw Fit to Close Institution. (By Associated Press). PITOSBURG, PA., Sept., 5.-Two financial Institutions, the Cosmopolitan National Bank and the Mount Washington Savings and Trust Company were closed here today by orders from the federal and State bank authorities. While the Cosmopolitan National Bank was a fair sized institution, the trust company was a small concern and there was little or no excitement when the failures became known. The National Bank was closed a few minutes after 9 o'clock this morning. and the trust company at 11:30 a. m. The order closing the Cosmopolitan Bank was brought forth by the refusal, it is said, of Bank Examiner John B. Cunningham, to approve "some of the paper and other securities of the bank for loans, aggregating over $1,000,000. However, the officials of the bank deBy that worthless or insumedent securities have been accepted for loans. They say all the paper and other collateral held by the Cosmopolitan is collectable and that the bank is nolvent and able to pay all its liabilities. Further than the statement that the bank is insolvent, neither Examiner Cunningham or Judge Oldham, of the legal department of the comptroller of the currency, who arrived here from Washington early today, would not commit themselves. According to the bank's last statement. its liabilities were $1,861,830.96. The bank officials seemed to be very indignant that the government should close the institution and Cashier D. J. Richardson stated that none of them had any intimation that the bank was in trouble, until Examiner Cunningham closed the doors. He declared that the available cash on hand was nearly fifty por cent. of the total deposits. Included in the deposits are federal and State deposits of $100,000, each secured by bond. Robert Lyons, who is the receiver for the Alleghany National Bank, which recently failed here, was appointed receiver of 'the Cosmopolitan. The reason for the closing of the Mount Washington Savings and Trust Company has not yet developed. R is believed, however, that the trouble of the Cosmopolitan Bank was the cause. The vice president of the trust company'is also a director of the national bank. The capital stock of the trust company is $125,000, its deposits were $60,000 with loans and discounts of $141.000 and assets $200,000. State Bank Examiner James M. Cover said the Institution was closed by banking Commissioner Berkeley because of apparent irregularities. While he kms little of the condition of the bank, he believed it would be possible to adjust the Irregularities so that the doors could be opened for business next Tuesday morning as usual.
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TWO BANKS CLOSED PITTSBURG FINANCIAL INSTITUTIONS IN TROUBLE. Closing of Cosmopolitan National Was Brought Forth By Refusal of Bank Examiner to Approve Loan Securities. Pittsburg. Pa., Sept. 5. -Two financelal institutions, the Cosmopolitan National Bank and the Mount Washington Savings and Trust Company, were closed here today by orders from the Federal and State banking authorities. While the Cosmopolitan Bank was a fair sized institution. the Trust Company was a small concern and there was little or no excitement when the failures became known. The order closing the Cosmopolitan Bank was brought forth by the refusal, it Is said, of Bank Examiner John B. Cunningham to approve some of the papers and other securities of the bank for loans aggregating, it is said, over $1,000,000. However, the officials of the bank say all the paper and other collateral held by the Cosmopolitan is collectable and that the bank is solvent. Further than to state that the bank is insolvent, neither Examiner Cunningham. nor Judge Oldham, of the legal department, of the Comptroller of the Currency, who arrived here from Washington early today, would commit themselves. According to the bank's last statement, its liabilities were $1,861,830.96. The bank's officials seemied to be very indignant that the government should close the institution and Cashier D. J. Richardson stated that none of them had any Intimation that the bank was in trouble until Examiner Cunningham closed the doors. He declares that the available cash on hand was nearly fifty per cent of the total deposits. Included in the deposits are Federal and State deposits of $100,000, each secured by bonds. Robert Lyons. who is the receiver for the Allegheny National Bank, which recently failed here, was appointed receiver of the Cosmopolitan. The reason for the closing of the Mount Washington Savings and Trust Company has not yet been developed. It is believed, however, that trouble of the Cosmopolitan was the cause. The vice president of the trust company is a member of the board of directors of the national bank. The capital stock of the trust. company 13. $125,000. Its deposits were $60,000 with loans and discounts of $141,000 and assets said to aggregate $200,000. State Bank Examiner James M. Cover said the institution was closed by Banking Commissioner Burkey bécause of apparent irregularities. While he knew little of the condition of the bank, he believed it would be possible to adjust the irregularities in order that the doors could be opened for business next Tuesday.
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TWO PITTSBURG BANKS SUSPEND; ASSETS 'PAPER' SECURITIES OF BOTH FIRMS DECLARED WORTHLESS OVER MILLION DOLLARS LOANED ON FLIMSY COLLATERAL Investigation of Examiners Leads to Order Shutting Doors of Mount Washington Trust and Cosmopolitan Companies By Associated Press. ITTSBURG, Sept. 5.-Two financial institutions, the Cosmopolitan P National bank and the Mount Washington Savings and Trust company, were closed today by orders from the federal and state banking authorities. While the Cosmopolitan National bank was a fair-sized concern, the trust company was a small concern, and there was little excitement. The order closing the Cosmopolitan was brought forth by the refusal, it is said, of Bank Examiner John B. Cunningham to approve some of the paper and other securities of the bank for loans aggregating, it is said, over $1,000,000. The officials of the bank deny that worthless or insufficient securities have been accepted for loans. Declare Bank Solvent They say all the paper and other collateral held by the Cosmopolitan is collectable and that the bank is solvent. Further than to state that the bank is insolvent neither Examiner Cunningham nor Judge Oldham of the legal department would commit themselves. According to the bank's last statement its liabilities were $1,261,830.96. Included in the deposits are federal and state deposits of $100,000, each secured by bond. Robert Lyons, who is the receiver for the Allegheny National bank, which recently failed here, was appointed receiver of the Cosmopolitan. The vice president of the Mount Washington Savings and Trust company is also a director of the National bank.
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PITTSBURG BANKS FALL BY WAYSIDE One National and One State Institution Closed by Official Orders. DEPOSITORS LEFT TO MOURN THEIR MONEY FEDERAL AND STATE FUNDS IN THE NATIONAL BANK WAS UNDER GUARANTY Pittsburg, Pa., Sept. 5.-The Cosmopolitan National bank of this city suspended operations today. A notice posted on the doors reads: "Closed by the order of the comptroller. (Signed) "JOHN B. CUNNINGHAM, "Examiner in Charge." While not a large institution, it is a fair-sized one, and the suspension caused considerable excitement. A few moments after the notice was posted on the doors a large crowd collected in front of the bank. Officials "Surprised." John McClurg is president of the bank and D. J. Richardson is cashier. According to a report this morning, Mr. Richardson, in a telephone conversation with one of the largest depositors, said he knew of no reason why the bank should be closed, as the institution had from 40 to 45 per cent reserves on hand. The report of the condition of the bank made at the close of business July 15, 1908, shows the resources and liabilities are $1,912,520.38; capital stock paid in, $500,000; surplus fund $100,000, and undivided profits $55,582. The Mount Washington Savings & Trust company of this city was closed today by the Pennsylvania commissioner of banking. Worthless Securities. The order closing the Cosmopolitan bank was brought forth by the refusal, it is said, of Bank Examiner John B. Cunningham to approve some of the paper and other securities of the bank for loans, aggregating, it is said, over $1,000,000. The officials of the bank deny that worthless or insufficient securities have been accepted for loans. They say all the paper and other collateral held by the Cosmopolitan is collectible and that the bank is solvent. Further than to state that the bank is insolvent, neither Examiner Cunningham nor Judge Oldham of the legal department would commit themselves. According to the bank's last statement its liabilities were $1,261,830.96. The bank's officials seemed to be indignant that the government should close the institution. The cashier declared that the available cash on hand was nearly 50 per cent of the total deposits. Included in the deposits are federal and state deposits of $100,000 each, secured by bond. Lyons Made Receiver. Robert Lyons, who is the receiver of the Allegheny National bank which recently failed here, was appointed receiver of the Cosmopolitan. The vice president of the Mount Washington Savings & Trust company is also a director of the Cosmopolitan National bank. The capital stock of the trust company is $125,000. Its deposits were $60,000, with loans and discounts of $141,000, and assets said to aggregate $200,000. State Bank Examiner James M. Cover said the trust company was closed because of apparent irregularities.
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LIABILITIES ARE $1,861,830.96 Cosmopolitan National Bank is Said to Have Had Over One Million Dollars Worth of Loans on Paper That Authorities Wouldn't Approve. By Associated Press. Pittsburg, Sept. 5.-Two financial institutions, the Cosmopolitan National Bank, and Mount Washington Savings and Trust Company, were closed here today by orders from the federal and state authorities. While the Cosmopolitan was a fairsized institution, the trust company was a small concern and there was little or no excitement when the failures became known. The order closing the Cosmopolitan bank was brought forth by a refusal it is said, of Brank Examiner John B. Cunningham, to approve some of the paper and other securities of the bank for loans aggregating, it is alleged, over $1,000,000. However, the officials of the bank deny that worthless or insufficient, securities have been accepted for loans. According to the bank's last statement its liabilities were $1,861,830.96. Robert Lyons, who is receiver for the Allegheny National bank, which recently failed, was appointed receiver for the Cosmopolitan. The reason for closing the Mount Washington Savings and Trust Company have not yet developed. It is believed, however, that the trouble of the Cosmopolitan was the cause. The vice president of the trust company is a director of the national bank.
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BANK EXAMINER AT FAULT Condition Caused Pittsburg Bank Sensation. Two Big Banks Close on His Order, but Are Solvent, and Will Be Reopened, Pittsburg, Sept. 5.-Two bank sensations startled Pittsburg to-day. The Cosmopolitan National Bank was closed and the Mount Washington Savings and Trust Company had notices posted on its doors for fifteen minutes, which were taken down, and the examiner went away without any explanation of his action. The directors of the trust company will begin criminal prosecutions against James M. Cover, the State banking examiner. for the latter action. He closed the bank about 11 o'clock. and after holding a telephone conversation with the State department in Harrisburg, tore down the notices. The bank held more than 50 per cent of its deposits in reserve at the time After the closing of the Cosmopolitan National Bank serious charges were made against the bank examiner. John B. Cunningham, who made an examination of the bank. It is alleged by F. A. Kitzmiller, vice president. and Charles A. Muelhbronner, a director, that Examiner Cunningham was intoxicated when he closed the bank, and did not know what he was doing. Mr. Kitzmiller said he would make an affidavit and prove it by witnesses that Cunningham was under the influence of liquor when he entered the bank and posted the notice. The officials say the bank is perfectly solvent and that this will be proved. Robert Lyons was appointed receiver and took charge. He was joined by F. F. Oldham, attorney for the Comptroller of the Currency. Vice President Kitzmiller, in the absence of John McClurg, the president, said: "I can only account for the closing of the bank by the fact that Cunningham was drunk and had been drunk for some time. His condition was known to everyone. Every time he visited the bank he was under the influence of liquor. Cunnigham had every appearance of being under the influence of liquor." Mr. Kitzmiller's remarks were added to by others who witnessed the closing of the bank. Receiver Lyons. when asked as to the truth of the report that Examiner Cunningham was intoxicated when he closed the bank, said: "It is unfortunate that that became public."
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BANKERS INDIGNANT MOSMOPOLITANTO APPEAL Trust Company Will Reopen-Examiner Says He Was Not Drunk. [By Telegraph to The Tribune.) Sept. 6.-Officials of the Cosmopolitan yesterday by National Pittsburg. Bank, Controller which of was the closed Currency of the on recomB. Cunninga meeting would the an appeal for made ender mendation be beld him be announced of first to Bank the of to-night the Controller Examiner week, that at of John the which Currency to open as it is emission the bank. they declare A. of bank, glivent. E Kitzmiller, vice-president the Examiner in the reterated Conningham closing to-night institution. had overstepped of his the statement most his that authority To-day thirty-one prominent bankers were seen one stated that heard no at the Coshe of had Pittsburg reports and of each trouble they mopolitan Bank previous to the closing. This, is as usually know trouble was on for as is usually when claimed, calied most aid exists. unusual, bank prior is to None in the trouble. bankers closing, of the. Bankers banks when a genare over declare during banks erally the that case indignant discriminated the last few against months the closing by Pittsburg the and bank have been examiners. Regarding the rumors that he was under the of liquor when he closed the bank, Exseen, sent aminer influence Cunningham, who refused to be "I geny was Comword: The Mount Washington emphatically Savings that I and Trust drunk." a state was yespany, Examiner institution, J. M. which Cover, closed terday by according to statements issued by its officers to-night, will open for business as usual Tuesday morning, to-morrow being a legal holiday. The notice closing the bank was posted shortly before noon on Saturday, and remained up only 8 short time. but as banks close on Saturday afternoons DO further business was done yesterday. George M. Gordon, secretary and treasurer of the trust company. in a statement issued to-night says Examiner Cover called at the bank about 10 effect of Bank have on company, was ado'clock the would closing yesterday the the morning Cosmopolitan trust and asked National and what ised that while the Cosmopolitan was a reserve repository, the balance with it at present was only $4,000, and the closing would have no maarial effect. "About 11:30 o'clock he called again," the statement continues, "saying that he had instructions from Commissioner Berkey to close up: he put a notice on the door and drew down the blinds. He alled Mr. Berkey by telephone, and after a lengthy conversation with him ordered the sign taken down. He remained for a few minutes, and my presence told different persons that a misake had been made, and that we would be open usual on Tuesday morning. "He also authorized me to tell inquirers the same. He made no explanation to the crowd which milected after the notice was posted. "Our reserve funds at present are very much above legal requirements, and while I do not know what the action of the board will be I see no reason why business cannot be resumed as usual, unless we have suffered irreparable injury from the posting of the notice and the spreading of the rumor. Within the last ten days our bank was examined by State Bank Examiner White, who reported to us that we were in better condition than ever before." A. L. Richmond, jr., a director of the Cosmopolitan. is vice-president of the trust company.
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PITTSBURG BANK FLURRY. Mount Washington Savings Institution Likely to Reopen Tomorrow. PITTSBURG, September 7.-The Mount Washington Savings and Trust Company, a state Institution, which was closed Saturday by Examiner J. M. Cover, will, according to statements issued by its officers last night, open for business as usual Tuesday morning, today being a legal holiday. The notice closing the bank was posted shortly before noon Saturday and remained up but a short time, but as banks close Saturday afternoons, no further business was done that day. George M. Gordon, secretary and treasurer of the trust company, in a statement issued last night, says Examiner Cover called at the bank about 10 o'clock Saturday morning and asked what effect the closing of the Cosmopolitan National Bank would have upon the trust company. and was advised that while the Cosmopolitan was a reserve depository the balance with it at present was only $4,000, and the closing would have no material effect. "About 11:30 he called again," the statement continues, "saying that he had instructions from Commissioner Berkey to close us, put a notice on the door and drew down the blinds. He called Mr. Berkey by telephone, and after a lengthy conversation with him ordered the sign taken down. He remained for a few minutes and in my presence told different persons that a mistake had been made. and that we would be open as usual Tuesday morning. "He also authorized me to tell inquirers the same. He made no explanation to the crowd which collected after the notice was posted. "Our reserve funds at present are very much above legal requirements, and while I do not know what the action of the board will be I see no reason why business cannot be resumed as usual, unless we have suffered irreparable injury from the posting of the notice and the spreading of the rumor. Within the last ten days our bank was examined by State Bank Examiner White, who reported to us that we were in better condition than ever before." President H. W. Gleffer and Secretary George M. Gordon denounced the closing of the bank half an hour before regular closing time Saturday as an outrage. "If such a thing as this can be done legally." said Gordon, "it will be possible to bankrupt every bank in Pennsylvania. This 'accidental' closing might just as well happen to a large institution, causing a tremendous run, as on a small banking house like ours.' A. L. Richmond, jr., a director of the Cosmopolitan. is vice president of the trust company.
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DIRECTORS TO MEET. Officials of Cosmopolitan Bank Want Institution Reopened. Pittsburg. Sept. 7.-The directors of the Cosmopolitan Bank which was closed by oredar of the comptroller of the currency Satur&ay. will meet tomorrow morning and formulate a demand on the government officials at Washington that the bank be re-opened and allowed to continue business. They still insist that the institution is solvent and that the action of the comptroller was not warranted. Officials of the Mount Washington Savings and Trust Company, which was closed Saturday morning by State Examiner Cover, declare that the bank will resume business tomorrow morning. President Gleffer and Secretary Gordon denounce the closing of the bank half an hour before regular closing time on Saturday as an outrage. "If such a thing as this can be done legally," said Mr. Gordon, "It will be possible to bankrupt every bank in Pennsylvania. This 'accidental' closing might just as well happened to a large institution causing a tremendous run, as on a small baking house like ours"
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TROUBLE OVER BANK CLOSURE Examiner Canningham, Formerly of Nebraska, Denies He Was Intoxleated When Posted Notice. / PITTSBURG, Sept. 7.-The directors of the Cosmopolitan National bank, which was closed by order of the comptroller of the currency Saturday, will meet tomorrow and formulate a demand upon the government officials at Washington that the bank be reopened and allowed to continue business. They still insist that the institution is solvent and that the act of the comptroller was not warranted. National Bank Examiner John B. Cunningham, whose examination of the bank's books resulted in the comptroller's order that It be closed, denies that he was intoxicated when he made the examination or when he went to the bank Saturday morning and posted the notice that closed the institution, as alleged. Cunningham was accompanied to the bank Saturday morning by Judge F. F. Oldham, legal adviser to the comptroller of the currency, who came to Pittsburg to assist Cunningham in the examination of the Cosmopolitan. Receiver Robert Lyons and three government accountants began work on the bank accounts today. Officials of the Mount Washington Savings and Trust company, which was closed at 11:30 o'clock Saturday morning by the state bank examiner, declare that the bank will resume business tomorrow morning. President H. W. Gleffer and Secretary George M. orden of the bank denounce the closing of the bank half an hour before regular closing time of Saturday as an outrage. "If such a thing as this can be done legally," said Gordon. "it will be possible to bankrupt every bank in Pennsylvania. This 'accidental' closing might just as well have happened to a large institution, causing a tremendous run, as on a small banking house like ours."
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Bank to Reopen. Harrisonburg, Pa., Sept. 9.-The Mount Washington Savings and Trust Company of Pittsburg was today authorized to reopen its doors for the purpose of paying off its depositors, but not to receive deposits or transact any other business. This was after the officers of institution had agreed to comply with all the requirements of the banking department, including the payments of time deposits. The officers of the bank hid been summoned to appear before the attorney general today, but failed. Banking Commissioner Berkey was thereupon advised to appoint a temporary receiver, but re'rained from doing so when assured that the bank officials would comply with the department demands.
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Washington Savings and Trust, were closed today by orders from the federal and state banking authorities. The order closing the Cosmopolitan bank was brought forth by the refusal it is said, of Bank Examiner John B. Cunningham to approve some of the paper and other securities of the bank for loans aggregating, it is said, more than $1,000,000. The officials of the bank deny that worthless or insufficient securities have been accepted for loans. They say all the paper and other collatteral he.d by the Cosmopolitan is collectable, and that the bank is solvent. Further than to state that the bank is insolvent, Examiner Cunningham would not commit himself. According to the bank S last statement. it's liabilities were $1,861,830. The bank's officials are indignant that the government should close the institution. The cashier declared that the available cash on hand was nearly 50 per cent of the total deposits. Included in the deposits are fed eral and state deposits of $100,000, secured by bond. Robert Lyons who is the receiver for the Allegheny National bank. which recently failed here, was appointed receiver of the Cosmopolitan. The vice president of the Mount Washington Savings and Trust company is also a director of the National bank. The capital stock of the Trust company is $125,000. Its deposits were $60,000, with loans and discounts to aggregate $200,000. State Bank Examiner James K. Cover said the Trust company was closed because of apparent irregularities.
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BANK OPENED AGAIN, Suspended Mt. Washington Institution in Pittsburg Ready to Resume Business. PITTSBURG, Pa., Sept. 9.-The doors of the Mt. Washington Savings and Trust company were opened today, but no business was transacted this forenoon.
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PITTSBURG BANK REOPENS DOORS PITTSBURG, Pa., Sept. 20-The Mount Washington Savings & Trust Co., whose banking rooms have been closed for the past two weeks on orders of the state banking examiner, this morning opened its doors and called on all depositors, to withdraw their deposits, as it was going out of the banking business. Not more than one-third of the depositors responded, and many of those who did come, especially those who had time deposits, requested that they be allowed to retain them there. This was not allowed. The bank was in such good shape that only $25,000 had to be borrowed in order to pay off all depositors, including the time accounts. That the Cosmopolitan National Bank, which was closed about the time the Mount Washington institution was closed, will reopen its doors soon is asserted here today as two national banks with great resources sent word this afternoon to the receiver of the Cosmopolitan Bank that they were ready to advance any sum of money to put the bank on its feet. President Hugh Young of the Federal National Bank at Pittsburg, gave out an interview in effect that national bank examiners were not paid enough to enable them to do fair work.