J. S. & W. S. Kuhn (Pittsburg, PA)

Episode Information

Episode UID
8113667191363
Episode Type
Suspension → Closure
Bank Type
private
Bank ID
811366719 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
d79121115382008c

Response Measures

None

Description

Newspapers use the historical spelling 'Pittsburg'.

Events (2)
1. July 7, 1913 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Appointed receivers after failure/suspension of affiliated First-Second National and discovery of mismanagement/deficient legal reserve
Newspaper Excerpt
the banking house of J. S. and W. S. Kuhn, Inc., of Pittsburgh, were forced into the hands of receivers today
Source
newspapers
2. July 8, 1913 Run
Cause
Local Banks
Cause Details
Run on the Pittsburgh Bank for Savings (another Kuhn interest) sparked by failures of First-Second National and affiliated institutions
Measures
Paid small depositors $50 immediately; required 30/60/90 days' notice for larger withdrawals
Newspaper Excerpt
The run on the Savings institution ... All depositors were paid $50 at once and notice of thirty, sixty and ninety days for larger amounts were required.
Source
newspapers

Newspaper Articles (11)
1. July 8, 1913 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, July 8, 1913

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

2. July 8, 1913 Albuquerque Evening Herald Albuquerque, NM
Article from Albuquerque Evening Herald, July 8, 1913

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FINANCIAL CIRCLES SHOW LITTLE EFFECT OF CRASH (By Leased Wire to awaring Herald. Pittsburgh, July 8.-Finnelal Pittsburgh showed little outward evidence today of yesterday's crash in banking circles involving the failure of the First-Second National with $32,000,000 of deposits, the First National bank of McKeesport, an allied institution, and the appointment of receivers for the American Waterworks and Guarantee Co., the largest concern of its kind in the country and for the banking house of J. S. and W. S. Kuhn, Inc. Nothing unusual was observed about the 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 wo banks that suspended yesterdday. The run on the Savings institution that was started by the failures yesterday was resumed today but the same method as adopted yesterday was persued today. All depositors were paid $50 at once and notice of thirty, sixty and ninety days for largor amounts were required. J. S. and W. 8. Kuhn today resigned as president and vice president of the Pittsburgh Bank of Savings. The following officers were elected: W. J. Jones, president: L. M. Plummer, vice president: A. N. Voegtiey, secretary and treasurer.

3. July 8, 1913 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, July 8, 1913

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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,

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

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Said to be Temporary Financial difficulty confronting the Kuhn interests of Pittsburgh was the cause of the trouble. It is said the trouble is only temporary. and that there is no immediate cause for alarm. Heavy investment in water works preparations, coal and timber lands and interurban railway companies, together with the financing of an office building, are given as some of the causes leading up to to-day's suspensions. An alleged deficiency of $2,145,000 in the legal reserve of the First-Second National Bank and the subsequent examination brought matters to a climax. J. S. and W S. Kuhn, Inc., bankers, known as the Kuhn interests, are incorporated in Delaware with a capital stock of $500,000. James S. Kuhn Is chairman of the board of directors, and his brother. W. S. Kuhn, is vice-president. James S. also is president of the American Water Works and Guarantee Company, with a capital of $20,000,000. and W. S. Kuhn is vice-president of this company.

5. July 9, 1913 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, July 9, 1913

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Flurry Over Pittsburg Bank Failure Is All Over, "Seriously Mismanaged" Is Report of Asst. Sec. of Treas. The Depositors Will Lose Little or Roining--Owners' Loss Is Heavy. Pittsburg, July 8.-To the decisivé and sharp eut statement of Secretary of the Treasury McAdoo, issued, last night, is attributed the restoration of almost normal conditions in financial Pittsburg, tonight, despite the closing of the First-Second National Bank, yesterday, an institution that had been accredited one of the strongest in the country, 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. & W. S. Kuhn, Inc., whose principals were the majority stockholders of both institutions, and a like action with the American Water Works and Guarantee Co., an enterprise fathered by the Kuhn interests. Another Kuhn interest that was affected, the Pittsburg Bank of Savings, suffered somewhat from the complication, a run being started on it, yesterday, chiefly by small depositors. This was continued in somewhat greater magnitude, early today. Yesterday, $57,000 was withdrawn from the bank, while the deposit's were $20,000. It is assured the withdrawals, today, were under yesterday's figures. About noon, the announcement was made that J. S. Kuhn, president, and W. S. Kuhn, vice president, had resigned, and that W. J. Jones, the former secretary and treasurer of the bank, had been made president, with A. N. Voegtly, former assistant to Mr. Jones, as secretary and treasurer, while L. M. Plummer, a director, was made vice president. Chief interest now centers in the steps that may be taken by the government in an investigation into criminal liability in connection with the bank falure. United States District Attorney John H. Jordan, through whom the first steps in this direction would be taken. said, today, he had received no notice from Washington. So secure did the members of the Clearing House feel in the stability of conditions generally that a meeting that had been scheduled for this afternoon, to consider the financial situa+ tion generally, was called off and offers of assistance from New York, Chicago and St. Louis were refused.

6. July 9, 1913 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, July 9, 1913

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CONDITIONS IN PITTSBURG ARE , One-day Flurry in Financial Circles Is Followed by a Calm; No Further Trouble Expected. KUHNS RESIGN FROM THE SAVINGS BANK Assistant Secretary of Treasury Says That Mismanagement Was the Cause of the Failure. PITTSBURG, 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 Pittsburg tonight, despite the closing of the doors of the First-Second National bank yesterday, an institution that had been accredited one of the strongest in the country. 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, Incorporated, and a like action with the American Waterworks and Guarantee company.

7. July 9, 1913 The Wheeling Intelligencer Wheeling, WV
Article from The Wheeling Intelligencer, July 9, 1913

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BANK CONDITIONS NOW NORMAL PITTSBURGH BANKERS OPTIMISTIC AS RESULT OF STATEMENT OF SECRETARY M'ADOO. Situation Has Clarified to the Extent That Offers of Assistsistance Have All Been Declined. PITTSBURGH, Pa., July 8.-To the decisive and sharp-cut statement of Secretary of the Treasury McAdoo, issued last night, is attributed the res. toration of almost normal conditions in financial Pittsburgh to-night, despite the closng of the doors of the First Second National Bank yesterday, an institution that had been accredited one of the strongest in the country. While the situation was tense in the financial world yesterday, and little information as to possible developments was obtainable. the flat state ment of facts of the Secretary of the Treasury served to develop an overnight optimism that grew in magnitude as to-day advanced. The closing of the First-Second was naturally followed by suspension of its affiliated banks. the First National of McKeesport and the appointment of receiverships for the banking house of J. S & W S. Kuhn, Inc. whose principals were the majority stock. holders of both institutions and a like action with the American Water Works & Guarantee Company, an enterprise fathered by the Kuhn interests. Another Kuhn interest that was atfected, the Pittsburgh Bank for Savings suffered somewhat from the complication. a run being started on it yesterday, chiefly by small depositors This was continued to somewhat greater magnitude early today but it appeared to abate as the day wore on. Crowds assembled about the bank building, and the sidewalk about the building was roped off. with mounted police prancing their horses within the lines of the sidewalk The crowds were forced outside the ropes into the middle of the street, where they soon filtered away to be replaced by others, most of whom event. ually proved to be the curious specta(Continued on Page Eight.)

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

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Second National Bank alone, not con sidering the closing of the allied First National Bank of McKeesport nor the receiverships for the bankers and utility company, is said to be one of the largest, if not the record size, failure for a national bank The First-Second National has total liabilities of close to $40,000,000, with $3,400,000 capital; $2,011,169 surplus and undivided profits and $82,029,695 deposits. The First National Bank of McKeesport has liabilities of $4,541,000, with a capital of $800,000, a surplus of $569,454 and deposits of $3,387,283. Controls Many Companies. The American Water Works and Guarantee Company, the largest company in the country engaged in constructing and operating other water works companies, gas, electric light, heat and power concerns, irrigation plants and electric interurban lines, controls over forty such companies whose securities aggregate $110,718, 800, of which $73,128,800 consists of stocks of the subsidiaries held by the controlling company." The subsidiaries have a funded debt of $37,589,000 The, controlling company itself has a capital stock of $10,000,000 common and $10,000,000 six per cent preferred. Announcement of the suspension of the big Pittsburg bank was not altogether a surprise. The receivership for J. S. & W. S. Kuhn, the chief sponsors for the bank, caused no astonishment. Bank's History Spelled Trouble. The history of the bank in the last three years spelled trouble that would soner or later come to a crisis, bankersdeclare. W. S. Kuhn, who became president after the merger, and J. S. Kuhn are the leaders in the public utility house of J. S. & W. S. Kuhn and Company, which was incorporated about eight years ago. Their principal activity has been in the American Water Works and Guarantee Company. which they dominate. They are wide advertisers and have sold their public utility stocks broadly over the country, in rural as well as city communities. The partnership was formed in 1882. They are incorporated in Deleware with a capital stock of $500,000. James S. Kuhn is chairman of the board of directors and his brother, W. S. Kuhn, is vice president. They went into the irrigation projects with great enthusiasm when irrigation schemes were first heard of. The largest was the Sacramento Valley Irrigation Company, with a capital stock of $10,000,000 and a funded debt of $7,249,000. All in One Big Company. This irrigation company and others are now a part of the American Water Works and Guarantee Company. This holds over forty companies, the chief of which are the West Penn Traction and Water Power Company of Pennsylvania, a $27,000,000 concern; the St. Joseph Water Company, Missourl; the City Water Company of East St. Louis and Granite City, the South Pittsburg Water Company and the Birmingham Water Works Company of Alabama. The American Water Works and Guarantee Company in its statement of May 1 last showed an excellent

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

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

10. July 16, 1913 The Manning Times Manning, SC
Article from The Manning Times, July 16, 1913

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M'ADOO DISPELLS FEARS OVER FAILURE OF BANK CONDITIONS ARE NORMAL Practically No Excitement Following Sensational Failure of Kuhn Group of Institutions Whose Losses May Reach Total of $5,500,000-Large Investigation to Follow. To the decisive statement of Secretary McAdoo of the treasury department, issued Tuesday night, is attributed the restoration of almost normal conditions in financial Pittsburgh despite the closing Monday of the doors of the First-Second National bank, an institution which had been accredited one of the strongest in the country. While the situation was tense in the financial world and little information as to possible developments was obtainable, the flat statement of facts of the secretary seemed to develop an overnight optimism that grew as the day advanced. .The closing of the First-Second was naturally followed by suspension of its affiliated bank, the First National of McKeesport, and the appointmen of receivers for the banking house of J. S. & W. S. Kuhn, inc., whose principals were the majority stockholders of both institutions and a like action with the American Waterwork and Guarantee company, an enterprise lathered by the Kuhn interests. Another Kuhn interest which was affected, the Pittsburgh Bank for Savings, uffered somewhat from the complication, a run being started on it Monday, chiefly by small depositors. This continued somewhat increased early Tuesday, but it appeared to abate as the day wore on. Crowds assembled near the bank building and the sidewalk about the building were roped off with mounted police prancing their horses within the lines on the sidewalk. The people were forced outside the ropes into the middle of the street. The crowds were made up mostly of curious spectators. The small groups of depositors that entered the bank were promptly paid $500 on demand, and required to give the legal notice of 30, 60 or 90 days to withdraw other amounts above stated figures. Fifty-seven thousand dollars was withdrawn from the bank while the deposits were $27,000. Chief interest now centres in the steps that may be taken by the government in an investigation into criminal liability in connection with the bank failure. United States District Attorney John H. Jordan. through whom the first steps in this direction would be taken, said he had received no notice from Washington along this line but that it was possibly a little early for the officials to have had opportunity to decide upon any course of action. According to a dispatch from Washington Secretary McAdoo will ask Attorney General McReynolds within a few days to investigate alleged irregularities in the conduct of the First-Second National Bank of Pittsburgh. which closed its doors Monday. The secretary definitely decided to refer the situation to the department of justice and is now engaged in the collection of all the facts connected with the management of the big bank to prepare the attorney general for an inquiry designed to develop whether there was any violation of law in connection with the failure. John Skelton Williams, assistant secretary of the treasury, returned from Pittsburgh, where he superintended the closing of the bank, and reported that the institution had been "freely mismanaged", necessitating a reference of the conditions to the department of justice. The latest reports to the treasury department indicate that the losses of the First-Second may reach $5.500,000 because the entire capital and surplus of the bank now seem to have been wiped out. These advices were accompanied by assurances from officers of the bank that the depositors, whose claims total about $38,000,000, probably would be paid in full or nearly in full through realization of the bank's assets.

11. July 18, 1913 Carroll County Democrat Huntingdon, TN
Article from Carroll County Democrat, July 18, 1913

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UNCLE SAM COMES TO THE RESCUE McADOO'S ANNOUNCE!.ENT ESTAB LISHES CONDITION. RUN ON BANK IS STOPPED Pittsburgh Bank for Savings Withstands Attack-Treasury Official, Who Superintended Closing, Says Bank's Affairs Mismanaged. Pittsburgh.-To the decisive statement of Secretary of the Treasury McAdoo, issued Monday night, is attributed the restoration of almost normal conditions in financial Pittsburgh, despite the closing of the doors of the First-Second National Bank, an institution which had been accredited one of the strongest in the country. While the situation was tense in the financial world, and little information as to possible developments was obtainable, the flat statement of facts of the secretary served to develop an overnight optimism that grew as Tuesday advanced. The closing of the First-Second was naturally followed by suspension of its affiliated bank, the First National of McKeesport, and the appointment of receiverships for the banking house of J. S. & W. S. Kuhn, Ine., whose principals were the majority stockholders of both institutions, and a like action with the American Waterworks & Guarantee Company, an enterprise fathered by the Kuhn interests. Another Kuhn interest which was aifected, the Pittsburgh Bank for Savings, suffered somewhat from the complication, a run being started on it, chiefly by small depositors. This continued, somewhat increased, but it appeared to abate as the day wore on. Crowds assembled about the bank building and the sidewalk about the building was roped off, with mounted police prancing their horses within the lines on the sidewalk. The people were forced outside the ropes into the middle of the street. The crowds were made up mostly of curious spectators. The small groups of depositors that entered the bank were promptly paid $50 upon demand, and required to give the legal notice of 30, 60 and 90 days to withdraw other amounts above stated figures. Fifty-seven thousand dollars was withdrawn from the bank, while deposits were $27,000. John Skelton Williams, assistant secretary of the treasury, returned to Washington from Pittsburgh, where he superintended the closing of the bank, and reported that the institution had been "freely mismanaged," necessitating a reference of the conditions to the de partment of justice.