16966. Bank of Staten Island (Staten Island, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 31, 1903
Location
Staten Island, New York (40.583, -74.150)

Metadata

Model
gpt-5-mini
Short Digest
d3f6ba50

Response Measures

None

Description

The bank closed immediately after cashier/owner Otto Ahlmann's suicide on Dec 31, 1903; subsequent articles describe appointment of a receiver and permanent liquidation/dividends. The cause of the suspension was bank-specific adverse information: Ahlmann's speculative misuse of funds and resulting large shortage. No evidence that a depositor-driven run (independent of the suspension) kept the bank open — the bank was closed and placed in receivership.

Events (4)
1. December 31, 1903 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Cashier/owner Otto Ahlmann committed suicide after speculating with bank funds; examination revealed large shortages and irregular affairs leading to closure.
Newspaper Excerpt
The news reached the Bank of Staten Island forty-five minutes after it opened for business yesterday ... and it was at once closed.
Source
newspapers
2. January 13, 1904 Receivership
Newspaper Excerpt
the examination into the affairs of the institution was about completed and that it was ready to go into the hands of a receiver. ... The bank closed its doors after the suicide of its owner and cashier, Otto Ahlmann.
Source
newspapers
3. January 15, 1904 Other
Newspaper Excerpt
There was a meeting ... said that so far as could be learned there was about $400,000 due to depositors of the bank, and that as the accounts were about $152,000 short there would be a loss of about 40 per cent.
Source
newspapers
4. February 2, 1904 Other
Newspaper Excerpt
The committee ... approved the appointment of Joseph C. Mayer, of Buffalo, as permanent receiver. He is now acting receiver. ... the net shortage ... would be ... $157,000.
Source
newspapers

Newspaper Articles (14)
1. January 1, 1904 New-York Tribune New York, NY
Article from New-York Tribune, January 1, 1904

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Article Text

BANK CASHIER SUICIDE. HIS AFFAIRS IRREGULAR. Otto Ahimann. Shoots Self at the A Ibemarle. Otto Ahlmann ca shier and practical owner of the Bank of St item Island, and one of the best known men of amond Borough, committed suicide yesterda; at the Hotel Albemarle Bank Examiner Judso n, after an inspection of the institution's books apnounced last night that its affairs were irre gular. In the afternoon It was ruinored that th are was a shortage of $200,000, but it is believed this was an exaggeration. Mr. Ahimann's body was found in a bathroom in the hotel, at Twenty-fourth-st. and Broadway. He had sh ot himself in the head. He had registered on We dnesday night, signing himself "O. F. Ahepelett, of Albany." He appeared perfectly sober He asked especially that a call for 8:30 a. m. should not be forgotten. Edward P. Doyle, secretary of the Manor Park Land Company, Staten Island, identified the body Mr. Doyle ad been asked, in a letter from Mr. Ahlmann, ma iled on Wednesday night, to take charge of the body. In It the cashier is said to have expressed bimself as being weary of living and having decided to end it all. in the satchel were another revolver. fully londed. and a box of cartridges. BANK AT ONCE CLOSED. The news reached the Bank of Staten Island forty-five :ninutes after it opened for business yesterday ;norning, and it was at once closed. Bank Exan dner Judson said last night: "As far as the e xamination has gone it is apparent the affairs of the hank are irregular. I do not care to nat 1e any amount as the probable shortage, and will not until Saturday, when there will be a meeting of the directors, after which a statement will probably be made." August Preritice, the president, said: "I realize there is trouble, but do not think it right to speak one way or the other at this time." A close friend of Mr. Ahlmann said he knew Mr. Ahimann had speculated in steel and in cotton, and had been caught in the latter. Much comment was caused when it became known that the Richmond County Savings Bank and the Staten Island Savings Bank, both of which deposited in the Bank of Staten Island, and usually kept a balance of between $5,000 and $10,000 each, had last week withdrawn their accounts with the Bank of Staten Island. About 8 dozen depositors in the savings banks became panicky yesterday and drew out their accounts, thereby losing by a few hours six months' interest. The Bank of Staten Island had the highest rating given country banks in the New-York Clearing House. It had a capital of $25,000 and a surplus of $80,000. Its deposits are said to have averaged between $175,000 and $250,000. The city has considerable amounts in the bank, but cannot lose, as it has less than $100,000 for which the bank is bonded. The State is also secured by bonds for more than is likely to be in the bank now. For years it was a common saying to approve a man's business standing that "he was as solid as the Bank of Staten Island." MR. AHLMANN'S PROMINENCE. Mr. Ahlmann was about fifty-five years old. He came to this country from Kiel, Germany, where his father is a banker and owner of the "Kiel Tageblatt." He is said to be one of the richest men in Germany. Mr. Ahlmann was not married and was not much in the company of women, although occasionally he would take one driving. A rumor that he had recently been unfortunate in a love affair is doubted on Staten Island. From early last spring until the close of the hunting season Mr. Ahlmann kept apartments at the Richmond County Country Club, at Dongan Hills. He was fond of cross-country riding on a horse, and seldom, if ever, missed a run of the Staten Island hounds. He owned a number of fine horses. A week ago Mr. Ahlmann sold his stable at what is said to have been a fraction of its value. This is believed to have been an effort to gain money to tide over his troubles He was well known in society on Staten Island, and was a contributor to every charity maintained permanently on the island. He was generally considered to be worth something close to $1,000,000. A few years ago he bought a 50-foot sailboat. He loved the sport, but met a couple of mishaps within a short period, and then sold the boat. Mr. Ahimann was extremely methodical in his movements. He arrived at the bank in his carriage at 8:55 a. m. daily, and was at his desk at the hour. It is said that not once in his eighteen years of connection with the bank was he late. Mr. Ahlmann founded the bank when he first moved to Staten Island, about eighteen years ago, and kept for himself practically all the stock. The bank was a city depositary, and through it the city employes on Staten Island were usually paid. Yesterday the pay checks for the month,

2. January 9, 1904 Perth Amboy Evening News Perth Amboy, NJ
Article from Perth Amboy Evening News, January 9, 1904

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PETITION FOR RECEIVER. Stapleton National Bank Wants J. W. Whittecomb Appointed. Petitions are being circulated in Stapleton, Tottenville and nearby places by the Stapleton National Bank among the depositors of the Bank of Staten Island. asking them to sign and return them. The petition advises the appointment of John W. Whitecomb, a prominent lawyer of Stapleton, as receiver of the bank.

3. January 13, 1904 New-York Tribune New York, NY
Article from New-York Tribune, January 13, 1904

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Article Text

EXAMINATION OF AHLMANN'S BANK. End Near—Appointment of a Receiver Expected To-day. George A. Wood, assistant cashier of the Bank of Staten Island, said yesterday that the examination into the affairs of the institution was about completed and that it was ready to go into the hands of a receiver. He said it was probable that a receiver would be appointed to-day by the State Attorney General. The bank closed its doors after the suicide of its owner and cashier, Otto Ahlmann.

4. January 15, 1904 New-York Tribune New York, NY
Article from New-York Tribune, January 15, 1904

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Article Text

AHLMANN'S BANK DEPOSITORS MEET. Appoint Committee to Investigate-Want Cashier G. A. Wood for Receiver. There was a meeting last night of the depositors of the Bank of Staten Island, which closed its doors when its cashier and practical owner, Otto Ahlmann, committed suicide in Manhattan. About 175 were present. It was said that so far as could be learned there was about $400,000 due to depositors of the bank. and that as the accunts were about $152,000 short there would be a loss of about 40 per cent. A committee of fifteen was appointed to learn from the bank examiners the exact condition of the bank; choose a man who should be recommended to the State Attorney General for appointment as receiver; investigate the liabilities of the Bank of Commerce in Manhattan, the Clearing House agent of the Bank of Staten Island, for paying out some $70,000 of the funds of the bank after it had closed its doors, and determine what, If any, liability attached to the directors of the bank for the statement they issued on December 12, which said that the bank was in good standing. After considerable discussion it was decided that If it were possible for George A. Wood. the cashier of the wrecked bank. to act, he would be the choice of the depositors for receiver.

5. February 2, 1904 New-York Tribune New York, NY
Article from New-York Tribune, February 2, 1904

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Article Text

APPROVE RECEIVER OF BANK. The committee of fifteen which is looking after the interests of depositors of the wrecked Bank of Staten Island last night approved the appointment of Joseph C. Mayer. of Buffalo, as permanent receiver. He is now acting receiver. A Wall Street banking house sent a letter offering to finance a new bank if the committee would assure them the depositors. The matter was referred to a committee. It was learned from Bank Examiner Judson that the net shortage, as it now appeared, would be a few dollars more than $157,000. It was also ascertained that the last report of the bank, upon which It was thought the directors might be held, was drawn and signed and sworn to by Otto Ahlmann, the cashier and practical owner, and plainly states that the president of the bank was not present.

6. October 1, 1904 New-York Tribune New York, NY
Article from New-York Tribune, October 1, 1904

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DEPOSITORS OF BANK OF S. I. ANGRY. Get Twenty Per Cent on Their DepositsTwenty Per Cent More Later. There was anger yesterday among many of the depositors of the defunct Bank of Staten Island, which closed its doors on December 31. 1908, when they received 20 per cent of the sums they had in the bank when it failed. The checks paid the depositors were drawn on the Fourth National Bank of Buffalo by J.B. Mayer, receiver for the Bank of Statea Island. A number of the depositors said they had expected that the first payment would be at least 30 per cent. The Bank of Staten Island closed its doors on the day that Otto Ahlmann, its president and cashier, and the owner of a controlling interest, was found dead by his own hand in a New-York hotel. Assist brought by Receiver Mayer is pending in the Supreme Court. He seeks to recover $201,000 in securities and notes and $85,000 in cash and $85,000 damages. Last night it was announced at the bank that another dividend of 20 per cent would be declared soon. and that a final dividend would be made when the receiver's suit is decided.

7. February 10, 1905 Perth Amboy Evening News Perth Amboy, NJ
Article from Perth Amboy Evening News, February 10, 1905

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ANOTHER DIVIDEND. J. B. Mayer, receiver of the Bank of Staten Island, yesterday applied to the court for an order permitting him to declare another dividend of 10 per cent. to the depositors in the defunct bank. This will be 30 per cent. so far paid.

8. April 3, 1905 Perth Amboy Evening News Perth Amboy, NJ
Article from Perth Amboy Evening News, April 3, 1905

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WANT NEW RECEIVER. Petition Filed by People Objecting to the Present Receiver. A petition is being circulated among the people of Staten Island, to be presented asking for the removal of :Mr. A.: A. Meyer as receiver of the defunct Bank of Staten Island. The objection to Mr. Mayer are that he is a non-resident of Staten Island and, though receiver for over one year, has not been on Staten Island more than three times and all business must be transacted by mail, which is a long and tedious way of doing business. A resident receiver is asked for, so that the affairs of the defunct bank may be closed up soon and the depositors get all that is due them. So far they have received but 30 per cent.

9. May 19, 1905 The Sun New York, NY
Article from The Sun, May 19, 1905

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$12,000 FROM THE AHLMANNS. Have Made Good So Much of Cashier Ahimann's Shortage. The advisory committee of fifteen which has been acting with Receiver Joseph Mayer of the Bank of Staten Island in trying to straighten out its tangled affairs met at Tilley's Hotel. St. George, last night. Mr. Mayer exhibited a draft for $12,000 which he received yesterday from relatives of Otto Ahlmann. the cashier and practical controller of the bank, who used its funds in Wall Street and then committed suicide when he and the bank were hopelessly involved and before anybody but himself knew of the trouble. Mr. Mayer has been trying to induce Ahlmann's relatives, who are said to be very wealthy, to make good Ahlmann's shortage. He sought to obtain something like $100,000 from them. Yesterday he received the draft for $12,000. The relatives were not, of course, compelled to pay, and the draft is a voluntary contribution.

10. June 1, 1905 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, June 1, 1905

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# SELL HISTORIC HOUSE. Action to Foreclose on a Place Where President Tyler Lived. New York Tribune. Action has been brought by William M. Evarts against Mrs. Margaret J. Cornell and J. B. Mayer to foreclose a mortgage on the old Tyler property, in Clove Road and Broadway, West New Brighton, Staten Island, at one time the home of President John Tyler. The property in 1835 was bought by Mrs. Eliza Racey, of New York, who in 1837 built the house known as the Tyler mansion. When Mrs. Racey died the property was sold to Charles E. and William H. Racey. and subsequently to Mrs. Juliana Gardiner, mother of Mrs. Julla Gardiner Tyler, wife of President John Tyler. Mrs. Gardiner willed the property to Mrs. Tyler. Her brother, John L. Gardiner, contested the will, but in 1868 sold his interest to Mrs. Tyler. The cost of contesting the will had so depleted Mrs. Tyler's resources that in 1878 the place was sold to William M. Evarts, a relative of Mrs. Tyler. Mrs. Tyler and her family soon moved away, and the house became the home of the Russian Consul General. In 1897 the property was purchased by Otto Ahlman, cashier of the Bank of Staten Island, who committed suicide on December 31, 1903, and who was subsequently found to be a defaulter of $200,000. At the time of the purchase of the property Ahlman was involved in financial difficulties and asked Mrs. Cornell to take title to the property, which she did. Later Mrs. Cornell offered to buy the property outright, and although she paid more than one-half of the purchase price, she may now lose all that she paid. The receiver of the bank is made a party to the suit, to cover any legal entanglement that may arise in the courts. The defendants, Mrs. Cornell and Receiver Mayer, will contest the appointment of a referee to sell the property, since if the property is sold under a foreclosure they will be wiped out and any equity either has in the property will be lost.

11. June 7, 1906 Perth Amboy Evening News Perth Amboy, NJ
Article from Perth Amboy Evening News, June 7, 1906

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TOTTENVILLE. CASE MUST BE TRIED. Judge George H. Fitts, Monday, denied the motion made May 21 by Counsellor John G. Clark and Arthur O. Townsend, on behalf of a number of creditors of the defunct bank of Staten Island, to remove the receiver, Joseph B. Mayer, of Buffalo. Before the motion to remove was argued, the receiver made a tender of $30,000 cash to settle the suit against the directors of the Bank of Staten Island for their negligence in permitting the bank to be run as it was. This offer was oposed by Clark and Townsend, who claimed to represent $275,000 worth of the creditors. The court held that if so, many creditors objected to the acceptance of the offer, the case must be tried and will probably be brought before the courts very shortly.

12. December 31, 1906 Perth Amboy Evening News Perth Amboy, NJ
Article from Perth Amboy Evening News, December 31, 1906

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IMPORTANT DECISION. Judge Alton B. Parker, as referee, has just handed down an important decision in a test suit brought by Receiver John S. Davenport, of the defunct bank of Staten Island against the National Bank of Commerce to compel that bank to pay him, as receiver, the amount of checks, aggregating. something like $65,000, that the National Bank of Commerce paid to the National Park Bank as clearing house agent for the Stapleton National Bank, after the Bank of Staten Island had failed. The referee sustains the action of the Bank of Commerce.

13. April 10, 1907 New-York Tribune New York, NY
Article from New-York Tribune, April 10, 1907

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RECEIVER SUES PRENTICE ESTATE. Wants Staten Island Bank Losses Paid Out of Former President's Property. John S. Davenport, receiver for the Bank of Staten Island, which failed several years ago, has begun suit in the Supreme Court of Richmond, before Justice Scudder, against the estate of August Prentice, former president of the bank, for the sum of $220,000, which was misappropriated by Otto Ahlmann, who was the cashier. The bank, which was known as a "one man" institution, was practically owned by Ahlmann, who held 70 per cent of the stock, while Prentice held only 10 per cent. Ahlmann killed himself at the Hotel Manhattan in December of 1903. Prentice died six months ago. After Ahlmann's death an investigation showed that he had speculated with the bank's money in Wall Street and had lost between $222,000 and $230,000. The bank was capitalized for $25,000, and the deposits amounted to $600,000. The ground on which the receiver based his complaint was that Prentice, as president of the bank. should be held responsible for its losses. The estate is valued at $500,000. The depositors have received 30 per cent of their money.

14. June 27, 1907 New-York Tribune New York, NY
Article from New-York Tribune, June 27, 1907

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BUSINESS TROUBLES. The following petitions in bankruptcy were filed yesterday with the clerk of the United States District Court: An involuntary petition against the FleigelmanReiss Company, dealers in playing cards, poker chips, dice boxes, etc., No. 34 East 4th street, by creditors with claims as follows: Reichard Brothers, $98; A. B. Newman, $375, and Julius Adler, $245. Insolvency is admitted. Marshall S. Hagar was appointed receiver. Isaac Schoenberger, bookkeeper, No 43 East 128th street, voluntary petition, showing liabilities of $2,839 and assets of $200. The principal creditors are the New York Life Insurance Company, $340, and the Twelfth Ward Bank, $373. The /petitioner schedules as part of his debts six tallors' bills, aggregating $298, and $38 for cab hire. Schedules of Roth & Weisburger show debts of $13,039 and assets of $2,380. The principal creditors are the India Wharf Brewing Company, $2,512; B. Friedman, $1,500, and H. Koehler & Co., $2,100. A transcript of judgment from Richmond County was filed in the County Clerk's office yesterday against Annie C. B. Foster, an administratrix of the estate of Augustus Prentice, in favor of John S. Davenport, receiver of the Bank of Staten Island, for $187,994 81.