Atlantic Bank - Brooklyn, NY

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: May 26, 1869
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: a33bc824

Response Measures

Accommodated withdrawals, Books examined

Description

Discovery of a large deficiency in accounts after the death of President William C. Rushmore triggered a limited run in late May 1869. Directors pledged personal support and deposits were largely returned; no suspension or receivership is reported in the articles.

Events (1)

1. May 26, 1869 Run

Cause: Bank Specific Adverse Info
Cause Details: Discovery of a large deficiency ($100,000–$500,000 reported; articles commonly cite about $250,000) in the accounts of the late president William C. Rushmore and suspected mismanagement/defalcation.
Measures: Directors organized, appointed acting president, pledged themselves individually and collectively to carry the bank through the crisis and secure depositors; deposits were returned.
Newspaper Excerpt: A slight run on the bank was the consequence. Some drew out their deposits...the Directors drew up an agreement pledging themselves, individually and collectively, to carry the Bank through the crisis, and continue the business. ...many who drew their deposits again re-lodged them, and the run on the Bank is at an end.
Source: newspapers

Newspaper Articles (5)

1. May 26, 1869 New-York Tribune New York, NY

Article from New-York Tribune, May 26, 1869

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Article Text

RUN ON THE BROOKLYN ATLANTIC BANK-DEFICIENCY IN THE ACCOUNTS OF THE LATE PRESIDENT. A few days after the death of Mr. William C. Rushmore, late President of the Atlantic Bank of Brooklyn (who lost his life near Jamaica by an accident on the Long Island Railroad), the directors of the bank assembled and inquired into the condition of the bank on Tuesday after the death of Mr. Rushmore. Mr. George 8. Puffer, the acting President, discovered that certain discrepancies existed in the accounts, and found that there was a deficiency of the securities of from $100,000 to $500,000. Up to that time it was believed that the bank was in a highly prosperous condition; that the capital of $500,000 was secure, that a surplus of $78,000 was on hand, and that $35,000 of the earned money was available for the July dividend. When the discovery was made that the capital was reduced from a quarter to half the original amount, the fact could scarcely be realized. The more diligent and constant the scrutiny, however, the more certain it became that the bank had sustained a serious loss through the mismanagement of the ex-President. Ever since the first discovery the Directors have been engaged in probing the matter. but their final action was precipitated on Monday, on account of a rumor which had been circulated that the bank was in a rather critical condition. A slight run on the bank was the consequence. Some drew out their deposits, and great excitement was expected, yesterday, but for the prompt action of the Directors. At a meeting in the morning the Directors organized by appointing the President pro tem., Mr. George 8. Puffer, chairman. Among those present were Judge John A. Lott, the Hon. Henry C. Murphy, Peter G. Connell, Henry K. Sheldon, B. Valentine, John French, and William Hunter, jr. The state of affairs having been fully considered, the Direct. ors drew up an agreement pledging themselves, individually and collectively, to carry the Bank through the crisis, and continue the business. Perfectly assured by this statement, many who drew their deposits again relodged them. and the run on the Bank is at an end. It is understood that a large part of the deficit arises from advances made to a well-known contractor, on securities which the Bank Directors deem inadequate, but which the contractor insists are good for the amount. The same gentleman's account is stated to be largely overdrawn. Another source of the deficit is understood to be the purchase of real estate by Mr. Rushmore in his own name, the deeds being put away in the Bank and labeled by him, "To secure the Bank." Mr. Rushmore may have intended to preserve the Bank unharmed by these purchases, but as the facts stand, the property belongs to the Rushniore estate. and the money that paid for it is suspected to have belonged to the Bank.

2. May 26, 1869 The New York Herald New York, NY

Article from The New York Herald, May 26, 1869

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loss feet to an adjoining pier. botter The were thrown pecupilarily twenty is very small, as the tug and old. At about eleven coming yesterday up the bay, morning ran into the and steamer sunk the Russia, Austrian off while Bedioe's ship Island. Figlia Maggiore, All the crew which was of was the very latchored The cargo of the ship is estivaluable, ter were saved. and the loss on the cargo and ship mated at $400,000. was held yesterday on the body ward of An inquest Kiernan, the victim of the Eleventh corroboration William The testimony elicited was in and the jury murder. as published yesterday. John Purrendered of the reports a verdict against the prisoner, who was thereupon committed. cell, stated yesterday that the accounts National of WilIt was Rushmore, President of the Atlantic the recent Railroad slaughter, a liam Bank C. Island of Brooklyn, who was killed showed became by deficit public of Long $250,000. When this rumor deposinearly made on the bank by uneasy slight but run later was in the day their fears were to carry allayed tors, by the directors, who pledged themselves the business of the bank. Lippmann homicide inquest was concluded was occaThe the jury finding that death unyesterday, sioned by violence at the hands of some persons known. of the two women, Pearsall and Tombs O'Con- for The case by Judge Cardozo in the came up nor, confined of Court some three weeks ago, was waived contempt when an examination the course again yesterday, were admitted to bail. In and the proceedings women one of the lawyers who slashing volunof the support the court entered into a coundenunciation teered to of Mr. Townsend, the women's sel. James Budlong, a Brooklyn merchant. on a was charge arbefore Justice Dodge yesterday President of raigned by Mr. Clinton Gilbert, Vice representapreferred Savings Bank, of false Gilbert's the Greenwich of which he obtained Mr. and tions, by means to a promissory note for $35,000. Budlong endorsement latter was compelled to pay. default of which pleaded the not guilty, and was committed in of $70,000 centennial bail. anniversary of the dedication William and The North Reformed Dutch church on the by counFulton the streets was celebrated yesterday. libelled The steamer Quaker government City was in this city, yester- violate sel for the the Spanish ground that she intendded Cuban to insurday, on laws by giving aid to the Blatchford, Margents, the neutrality and, on an order of Judge shal Barlow Cunard seized steamer her. Australasian, Captain Cook, Her The sail to-day for Liverpool via Queenstown. twelve M. will close at the Post Office at mails will line steamship Dorian, Captain to-day small, for will leave The Anchor pier 20 North river at twelve M. Londonderry American and steamship Giasgow. Fulton, Captain pier 46 Jones, North The line, will leave to-day from Cowes and river, of Ruger's at two P. M., for Copenhagen, via Bremen. steamship Magnolia, Captain Crowell, M. to-day will sail The from pier No. 8 North river at three P. for Charleston, market S. c. yesterday was buoyantly in active the The stock announcement of the defalcation and until the Bank of Brooklyn, when a reaction recovering Atlantic ensued, prices eventually of the sharp decline but not to the best figures finally at 140% day. toward Gold the was close, dull, declining to 140 1/2 and closing Prominent N. Palmer, Arrivals of the United in the States City. Army, and General J. Commanders George P. Ryan at the St. Hotel. and R. Hooper, Lieutenant of the United States Navy, are Denis Secretary of State, Alabama; Beardsley, George C. A. Miller, of Philadelphia; Major W. c. St. Nicholas and W. Childs, E. P. Ross, of Auburn, are at the Hotel. Burroughs, of the United States Carpenter, Army; Colonel Major J. Bartlett, of Albany; Wadsworth, Rev. B. of Buffalo; of of Newburg; Judge George Rhode Island, and c. C. Cass, P. Pomeroy, Miss., of are at the Metropolitan P. Hotel. H. Jackson, McClure, of San Francisco; Lasher, are Hotel. of Dr. Elgin, A. J. III., and L. B. Morgan, of Ogdensburg, York, at Judge the and St. J. Charles W. E. R. Hulbert Douglas, and of Wm. Memphis, Musgrave, Tenn., of are New at the Maltby House. of New Hamburg; J. R. Osgood, are at of Boston, M. J. Freeman, and E. H. Bailey, of North Carolina, the Westminster S. Anderson, Hotel. of the British Army, Hotel. and Lieutenant of London, are at the Clarendon E. W. CornD. Mr. Powell, Knowles, of Manchester, England; New Haven, and H. N. ing, Slater, of Albany; of Norwich. W. B. Bristol, are at of the Fifth Avenue Hotel. Commander Theo. F. Jewell States and Navy; Pay- A. Lieutenant Browne, of the United of Great master J.T. of Albany; Captain J. Babee, of Lima, Van Vechten, A. S. Benton and J. Barnard, Barrington; House. W. and are at the Hoffman F. J. Vinton cunard arrived Liverpool. Miss B. Delmonico, yesterday Mrs. in the steamer Russia from Prominent Departures. P. N. Dennison, for Ohio: General Palmer, Governor Washington; W. General W. General J. Reese, for Banks, for H. C. Lord, for Cincinnati; for Albany. Robert General St. for Washington, Louis; and Colonel Anderson, B. English, United States States ConMajor and family; E. Robinson, Fred. United Schultz, United sul Army. at Hamburg, and Dr. gailed yesterday in the steamship States Consul Hammonia at Antwerp, for Plymouth and Hamburg. CAMBRIA AND THE QUEEN'S we CUP.- inadIn THE an article on yachting yesterday for the so-called vertently spoke held of a by race the New York Yacht this Cup, such a race were possible as our words should be make the Atlantic we Queen's season. Club, beyond Lest if hasten race misunder- to cannot stood positive statement that such a of the plain the this gummer. One which the cup is held on to be given six months take challenge rules place requires before due form the the off. No challenge in months race can been come sent, and thus the this six season. has yet out the contest from be welrule shuts Cambria come she will she Should and the will have plenty of sport, the cup. but As comed contest our possession of said a great cannot of the Cambria has we deal the owner of his desire to carry away this cup,

3. May 27, 1869 The Lincoln County Herald Troy, MO

Article from The Lincoln County Herald, May 27, 1869

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A Day's Record in Now York. A New York special to the Republican of the 25th gives the following fourteen chapters of city incidents for a single day: First-A steamboatsank in East river. Second-A tug boat exploded at the foot of Wall street, with the loss of three lives. Third-Murder and robbery of s man at Tarrytown. Fourth-Murder of a man in the Eleventh ward of this city. Fifth-Two persons killed by Broadway cars. Sixth-An oil refinery burnt at Hun. ter's Point, with loss of a million dollars. Seventh-Explosion of oil works at Bull's Ferry, with loss of several lives. Eighth-A ship at anchor cut down and sunk by the steamship Russia. Ninth-Attempted suicide by a prominent financier. Tenth-Another important warehouse defalcation, respecting which, however, no reliable particulars have transpired. Twelfth--The steamship Bienville on fire at sea. The flames extinguished. Thirtecuth-Gov. Hoffman, Augustus Schell and other prominent Democrats narrowly escape drowning. Fourteenth-Discovery of a deficiency of a quarter million dollars in the ac. counts of the late President of the At+ lantic Bank of Brooklyn, and run upon that institution:

4. June 2, 1869 Watertown Republican Watertown, WI

Article from Watertown Republican, June 2, 1869

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Deficit in a Brooklyn Bank. Only a little more than one month since Mr. William C. Rushmore, late President of the Atlantic Bank, died a fearful death. As was necessary, his successor was appointed to take charge of the affairs of the bank. Motives of delicacy prompted the directors to postpone the immediate appointment of another president, SO Mr. George S. Puffer was called upon to act pro tem. He went to his work expecting to find it an easy task. for great confidence had been placed upon the capacity of Mr. Rushmore as a shrewd business man, and upon hisunclouded integrity. But, as Mr. Puffer advanced step by step in his examination of books and papers, he became satisfied that grave errors had been committed somewhere. Instead of showing the bank's capital, $500,000, to be secure, he discovered a deficiency of some $250,000 in its securities, while a surplus of about $100,000 more, that was supposed to be in its strong vaults, was not on hand. A more thorough investigation by the directors only verified the statement of Mr. Puffer, and now realizing the brink to which they had been brought, they set to work to find where the leak had been. It was too easily traced to transactions of their late President, who, it was discovered, had made large advances to a contractor on securities that the directors had declared to be insufficient. Again, they found the deceased to have speculated largely in real estate, the transactions being in his own name, but the deeds placed in the bank to secure it, as would seem from a label on the package which is SO indorsed. Rumors reached the street some days since that the security of the institution was precarious, which led to a limited run on it. This, however, was quickly quelled by the action of the directors pledging thenselves to secure all depositors and for the general safety of the bank. This SO assured those who!had removed their deposits that they immediately returned them. Some of the largest concerns in the city have always deposited there; amongst others the Brooklyn City Gas Company, the Brooklyn Railroad Company, the Union Ferry Company, and the Board of Education. The directors were about to reorganize the bank under the State system, when the crisis occurred, but now that is over, it is expected that the change will be effected without delay.-N. Y. world, 26th inst.

5. June 12, 1869 American Citizen Canton, MS

Article from American Citizen, June 12, 1869

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A Lively Day in New York. << The past twenty-four hours have been unusually full of important 10cal incidents. A steamboat sink in East river. A tugboat exploded at foot of Wall street, with loss of three lives. Murder and robbery of a mint at Terrytown. Murder of a man in the Fifth ward of this city. Two persons killed by a Broadway car. An oil refinery burned at Hunter's Point, with a loss of a million dollars. Explosion of oil-works at Bull's Ferry, with loss of several lives. A ship at anchor cut and sunk by the steamship Russia. Attempted suicide by a prominent financier. Another important defalcation; no particulars have transpired. The steamship Bienville on fire at sea, but the flames extinguished. Gov. Hoffman, Augustus Schell, and other prominent Democrats narrowly escaped drowning. Discovery of a deficieitey of a quarter of a million dollars in the accounts of the late President of the Atlantic Bank of Brooklyn, and B, run upon it.-Special to Courier-Journal.