16470. Pasquale Pati & Son (New York, NY)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
private
Start Date
March 24, 1908
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
a243cdfb

Response Measures

Full suspension

Description

Multiple contemporaneous articles (Mar 24–25, 1908) report a run of depositors on Pasquale Pati & Son engineered by the Black Hand after Pati killed an extortionist; Pati fled and posted a notice suspending payments for two weeks. Subsequent articles (Apr 11, 1908) show a receiver qualified and the bank looted; bankruptcy petition dated March 25, 1908 and later trustee appointment confirm permanent closure. Cause characterized as 'other' (extortion/Black Hand intimidation) rather than insolvency or mere rumor.

Events (4)
1. March 24, 1908 Run
Cause Details
Run said to be engineered by the 'Black Hand' as revenge/retaliation after Pati killed a Black Hand agent; violent threats and extortion letters prompted panic.
Measures
Owners/relatives closed doors and posted a notice of suspension (I will suspend payment for two weeks...)
Newspaper Excerpt
A run of depositors and the suspension of the bank of Pasquale Pati... Three thousand depositors clamored loudly at the Pati bank today
Source
newspapers
2. March 24, 1908 Suspension
Cause Details
Owners posted notice and suspended payments after threats, violent incidents, and an escalating depositor run; owner fled the city fearing for his life.
Newspaper Excerpt
I will suspend payment for two weeks. I am compelled to leave town... I will resume in two weeks. (notice pasted on window after bank closed its doors)
Source
newspapers
3. March 25, 1908 Other
Newspaper Excerpt
A petition in bankruptcy was filed against them on March 25, 1908. Liabilities were $278,000 and there were 2,500 creditors.
Source
newspapers
4. April 11, 1908 Receivership
Newspaper Excerpt
Achille Starace qualified as receiver for Pasquale Pati & Son and took possession. ...the bank had been looted. The safes were open and empty.
Source
newspapers

Newspaper Articles (8)
1. March 25, 1908 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, March 25, 1908

Click image to open full size in new tab

Article Text

A MALEVOLENT PLOT BLACK HAND CAUSES BANK TO SUSPEND. Pasquale Pati, Fearing Death, Locked Doors of His Bank, Posted Notice on Door and Fled From City. New York, March 24.-A malevolent plot, relentlessly worked out by members of the Black Hand, declare the police. in deflance of the authorities pressing hard upon their track, ended dramatically today in a run of depositors and the suspension of the bank of Pasquale Pati, an Italian banker, on Elizabeth Street, and his flight from the city in fear of death, threatened by the black hand because he recently shot and killed Francesco Palletro, one of their alleged members, who had demanded money under the pain of killing the banker and his family. Three thousand depositors clamored loudly at the Pati bank today for their savings and in the interim. a run was started on the bank of Faoritelli and Son, across the street from the suspended institution and compelled it to shut its doors. The two banks were small private institutions. The run on the Pati bank, the police charge. was engineered by the black hand as a revenge on Pati, who was yesterday acquitted by the coroner's jury of having killed Pellatro. When the run was at its height police reserves. were rushed to the district to quell the fast rising disorder. Plastered on the window of Pati's bank was the most remarkable notice of a suspension probably ever posted, and was read by hundreds after the bank closed its doors. It read: "I will suspend payment for two weeks. I am compelled to leave town, as I have received threatening letters and people have attempted to take my life. There are no fears of your losing your deposits. Besides cash I own sixty-five houses in New York, and have them insured for $100.000 and can pay everybody. I will resume in two weeks. "Pasquale Pati & Son, "Salvatore." The close of Pati's bank and his sudden departure from the city is the sequel to a scheme, so say the police, of extortion and black mail of the black hand that had its inception several years ago. Pati was said to be the richest banker in the Italian quarter on the East Side.

2. March 25, 1908 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, March 25, 1908

Click image to open full size in new tab

Article Text

BANK SUSPENDS WHILE OWNER FLIES FOR LIFE vesterday acquitted by the coroner's jury New York, March 24.-A malevolent plot of having killed Palletro. When the run relentlessly worked out by members of was at its height police reserves were the "Black Hand," declare the police, in rashed to the district to quell the fast defiance of the authorities pressing hard rising disorder. Plastered on the window of Pati's bank, upon their track, ended dramatically tothe most remarkable notice of a suspenday in a run of depositors and the sussion probably ever posted, was read by pension of the Bank of Pasquale Pati, hundreds after the bank closed its doors. an Italian banker, on Elizabeth street, It read: and his flight from the city in fear of "I will suspend payment for two weeks. I am compelled to leave town, as I have death, threatened by the "Black Hand" received threatening letters and people because he recently shot and killed Franpave attempted 10 take my life. There cesco Palletro, one of their alleged memare no fears of your losing your debers, who had demanded money under posits, Bésides cash I own 65 houses in New York and have them insured for the protection of killing the banker and $100,000 and can pay everybody. I will his family. Three thousand depositors resume in two weeks. clamored loudly at the Pati bank today "PASQUALE PATI & SON." for their savings and in the excitement Salvatore. a run was started on the bank of FaoriThe close of Pati's bank and his sudtelli & Son, across the street from the den departure from the city is the sequel suspended institution, and caused it to to a scheme, so say the police, of exshut its doors. The two banks were small tortion and blackmail of the "Black rivate institutions. Hand" that had its inception several The run on the Pati bank, the police years ago. Pati was said to be the richest charge, was engineered by the "Black banker in the Italian quarter on the east side. Hand" as a revenge on Pati, who was

3. March 25, 1908 The Morning Journal-Courier New Haven, CT
Article from The Morning Journal-Courier, March 25, 1908

Click image to open full size in new tab

Article Text

Run of 3,000 Italian Depositors Precipitated to Avenge Killing of Band Member. BANKER FLEES FOR LIFE Latest Attack the Culmination of a Series of Extortion and Blackmailing Schemes Against Banker. New York, March 24.-A malevolent plot relentlessly worked out by members of the Black Hand, in defiance of the authorities pressing hard upon their trail ,the police declare, ended dramatically to-day in a,run of deposItors on and the suspension of the bank of Pasquale Pati, an Italian banker on Elizabeth street and his flight from the city in fear of death by the Black Hand because he recently shot and killed Francesco Pelletro one of their alleged members, who had demanded money under the pain of killing the banker and family. Three thousand depositors clamored loudly at the Pati bank to-day for their savings, and in the excitement a run was started on the bank of F. Acritelli & Son, across the street from the suspended institution, and caused It to shut its doore. The two banks were small private institutions. The run on the Piti bank, the police charge was engineered by the Black Hand as a coroner acquitted revenge by on the Pati who was of yesterday having killed Pelletro. When the run was at its height, police reserves were rushed to the district to quell the fast rising disorder. Plastered on the window of Pati's bank the most remarkable notice of a suspension probably ever posted was read by hundreds to-day after the bank closed its doors It read: I "I will suspend for two weeks. I am compelled to leave town. as have received threatening letters and people have attempted to take my life. There are no fears of your losing your deposits. Besides cash I own 65 houses in New York and have them Insured for $100.000 and can pay everybody. I will resume in two weeks. (Signed) "PASQUALE PATI & SON. "SALVATORE." The closing of Pati's bank and his sudden departure from the city is the sequel to a schéme so say the police, of extortion and blackmail of the black hand that had its inception several years ago. Fati was said to be the richest banker in the densely populated Italian quarter on the east side, where the banker believed he had no enemies. Letters came demanding money. How much money Pati parted with to stay the threats the police have been unable to learn. It was Pati's custom to keep large piles of American and Italian money in the front window of the bank to reassure depositors and six weeks ago one blustery day a dynamite bomb exploded near the tempting window. The window was shattered and thousands of dollars in paper was scattered about the street. Pati succeeded in recovering all of it. Three weeks ago Francesco Pelletro entered Pati's bank with drawn revolver and demanded money. after threatening to kill the banker, his wife and their son Salvatore, who were in the bank. Pati and his son drew revolvers and in the fusilade bullets Pelletro fell dying. of Black and not The cease flood yesterday Hand three threatened letters strange did men entered the bank and not.only to kill Pati and his family but to burn and destroy his business. The men darted out of the bank before Pati could summon the police. Late last night a servant at the Pati home in Brooklyn discovered several men prowling around the house and a of oil rags placed the quantity against building soaked in several places. A small run on the Pati bank start ed yesterday. when rumors began to circulate about Pati. There were 203 depositors in line when the bank opened to-day and within half an hour the line of depositors grew to 3.000. Pati's relatives quickly decided upon suspension, and the doors were closed and the notice of suspension posted. The whereabouts of Pati is not known.

4. March 25, 1908 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, March 25, 1908

Click image to open full size in new tab

Article Text

CLOSE UP A BANK Black Hand Engineers Run Upon Italian Institution at New York. OWNER KILLED BLACKMAILER Organization Thereupon Deliberately Sets Out to Bring About Financial Ruin. New York, March 25.-In pursuance of a ruthless Black Hand plot the bank of Pasquale Pati & Son at 240 Elizabeth street was yesterday forced to suspend payment after a run of depositors, of whom 5,000 gathered outside the establishment, uttering threats and many of them brandishing weapons in their excitement. The police declare that the run was engineered by the Black Hand because Pasquale Pati killed an Italian who demanded money and threatened to kill the banker and his family if refused. Pati has fled the city in fear of death. Regarded as Strong. The bank was regarded as one of the strongest of its kind in this city. In fact, it was known as the "Italian J. P. Morgan bank." A few weeks ago a bomb was exI ploded under the front window of the S bank, scattering $40,000 in currency on the sidewalks. Last Monday Pasquale Pati was acquitted by a coroner's jury, which declared he was e justified in killing Francesco Pelletro, the Black Hand agent who visited him three weeks ago. Since the acquittal of Pati he has been receiving Black Hand letters, threatening the lives of himself and his family. Unnerved by the strain, Pati decided to leave the city to seek S recreation in the south. Tried to Fire House. d Monday night, while he was como pleting arrangements for his departS ure in his home at 144 Ocean Parkway, Brooklyn, three men attempted d to set his house on fire. Albert ParIt cono, a servant in the Pati home, e found oil-soaked rags on the steps a leading to the cellar. He called other iservants and they drove away three imen found loitering about the house. 1. Yesterday morning when the bank p opened Pati and his son did not ap: pear as usual. This, it is said, was at

5. March 25, 1908 The Marion Daily Mirror Marion, OH
Article from The Marion Daily Mirror, March 25, 1908

Click image to open full size in new tab

Article Text

run was at its height police reserves were rushed to the district to quell the fast rising disorder. Plastered on the window of Pati's bank the most remarkable notice of a suspension probably ever posted was read by hundreds after the bank closed its doors. It read: "I will suspend payment for two weeks. I am compelled to leave town, as I have received threatening letters and people have attempted to take my life. There are no fears of your losing your deposits. Besides cash, I own 65 houses in New York and can have them insured for $100,000 and can pay evverybody. I will resume in two weeks. (Signed) ''PASQUALE PATI & SON, "Salvatore." The closing of Pati's bank and his sudden departure from the city is the sequel to a scheme, so say the police, of extortion and blackmail of the Black Hand that had its inception several years ago. Pati was said to be the richest banker in the Italian quarter on the East Side.

6. March 25, 1908 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, March 25, 1908

Click image to open full size in new tab

Article Text

BANK CLOSED BY THE BLACK HAND Remarkable Occurrence in the Metropolis of the Country. BANKER FORCED TO LEAVE SEQUEL TO THE KILLING OF FRANCESCO PELLETRO. New York, March 24.-A malevolent plot, relentlessly worked out by members of the Black, Hand, declare the police, in defiance of the authorities pressing hard upon their track, ended dramatically today in a run of depositors and the suspension of the bank of Pasquale Pati, an Italian banker on Elizabeth street, and his flight from the city in fear of death, threatened by the Black Hand because he recently shot and killed Francesco Pelletro, one of their alleged members. who had demanded money under the pain of killing the banker and his family. Police Rushed to the District. Three thousand depositors clamored loudly at the Pati bank today for their savings and, in the ex itement a run was started on the bank of F. Acritelli & Son, across the street from the suspended institution, and caused it to shut its doors. The two banks were small private institutions. The run en the Pati bank, the police charge, was engineered by the Black Hand as a revenge on Pati, who was yesterday acquitted by the coroner's jury of having killed Pelletro. When the run was at its height police reserves were rushed to the district to quell the fast rising disorder. Notice on the Window. Plastered on the window of Pati's bank the most remarkable notice of a suspension probably ever posted was read by hundreds after the bank closed its doors. It read: "I will suspend pay nent for two weeks. I am compelled to leave town. as I have received threatening letters and people have attempted to take my life. There are no fears of your losing your deposits. Beside cash, I own sixty-five houses in New York, and have them insured for $100,000, and can pay everybody. I will resume in two weeks (Signed) "PASQUALE PATI & SON." Dynamited Six Weeks Ago. Six weeks agoa dynamite bomb shattered the front of the Pati bank Three weeks ago Francesco Pelletro entered Pati's bank with drawn revolver and demanded money after threatening to kill the banker and his son, Salvatore, who were in the bank. Pati and his son drew revolvers and, in the fusilade of bullets, Pelletro fell dying. The flood of Black Hand letters did not cease. Yesterday three strange men entered the bank and threatened not only to kill Pati and his family, but to burn his home and destroy his business. The men darted out of the bank before Pati could summon the police. Late last night a servant at the Pati home in Brooklyn discovered several men prowling around the house, and a quantity of oil-soaked rags were found placed against the building in several places. A small run on the Pati bank was started yesterday when rumors began to circulate about Pati. There were 200 depositors in line when the bank opened today, and within an hour the line of depositors grew to 3,000. Pati's relatives quickly decided upon suspension, and the doors were closed and the notice of suspension posted. The whereabouts of Pati is not known.

7. April 12, 1908 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, April 12, 1908

Click image to open full size in new tab

Article Text

ONE CENT FOUND IN PATI'S LOOTED BANK Nothing Left for Receiver - The Banker Fled with Cash and Didn't Even Lock $ Safes NEW YORK, April 11.-One cent that had been dropped on the floor, a fragment of a $1 bill and a few Italian copper coins were all that Pasquale Pati, his sons and sons-in-law left in their private bank in Elizabeth street when they locked the door at midnight recently, loaded satchels into their automobiles and left for parts unknown. Achille Starace qualified as receiver for Pasquale Pati & Son and took possession. Five minutes after he and his counsel, Sidney Rosenbaum, had opened the massive door the truth so fateful to thousands of the east side poor was known. Everywhere was evidence that the bank had been looterd. The safes were open and empty. In the haste to escape the trusted friend of the poor had slammed the outer doors, SO that the safes looked secure from the street, but did not stop even to turn the combination locks. All the books and papers, so far as the first day's examination showed. were left in the bank, but facts discovered yesterday by the World indicate that there is little hope for the banker's clients to receive any part of the $1,500,000 which Pati's representatives declared was on deposit. Enough had e been learned of Pati's false representtions, before the receiver had entered, to reveal a monumental swindler. Already the receiver has discovered grounds for asking Pati's arrest on criminal charges. S "The question is not so much 'Where r is the money?" as it is Where is the t man?' said Receiver Starace as he o left the bank last night and pushed his f way through throngs of excited M Italians. Neither the police nor the Italian consul got any trace of Pati's if whereabouts yesterday. t Pati advertised on his money order W receipts that he had $100,000 reserve, p deposited as follows: $50,000 with the jt Farmers Loan and Trust company, f $30,000 with the Windsor Trust and $20 C 000 with the Lincoln Trust. This was S false. He had a small account with W the Farmers, but withdrew it las fall. D In the Windsor Trust he had a few o thousand dollars-never $80,000-which to he withdrew after the panic. The Linf coln Trust refused information coneerning Pati's account there. Deposits of a few thousand dollars with the German Exchange, the Bowery, the State da and the Northern of New York were V withdrawn a few days before he sold or a mortgaged his real estate and fled. Pati's life insurance, which he adverth tised in such a way as to mislead his da uninformed clients to believe it inSO sured their deposits, was said by him to amount to $100,000. It is known that th he did carry $35,000 in the Equitable. He advertised that the insurance was th "registered in the tax offices of Manof hattan and Brooklyn exclusively for th clients." He also stated that his forty. five real estate holdings were so reglstered, but before flight he transferred la several of them, and his clients have ha found no protection through their ownPa ership.

8. December 15, 1915 The Sun New York, NY
Article from The Sun, December 15, 1915

Click image to open full size in new tab

Article Text

BUSINESS TROUBLES. # Bankruptcy Petitions. ARTHUR RICH, clothing dealer, 58 Canal street, with a store at Allentown, Pa., made an assignment to Benjamin Lesser of Lesser Bros., 299 Broadway. A petition in bankruptcy was also filed against him by S. Phillips & Son, $563; Gaston Benoit, $128, and Max Hurwitz, $264. The assignee said that liabilities are between $18,000 and $20,000 and assets $7,000 to $8,000. KRAUS HAND & POWELL, INC., manufacturer of dresses at 12 West Thirty-first street. Petitioning creditors: E. Ross, $1,000; J. E. McGuirk, $500, and R. A. Cullen, $300. Liabilities said to be $20,000. HENRY GLASSMAN, druggist, 508 West 162d street, has filed a petition with liabilities $9,444. He formerly had a drug store at 2068 Amsterdam avenue, which has been sold on foreclosure of a chattel mortgage. JACOB GOLDSTEIN, barkeeper, 216 West Twenty-first street. Liabilities, $3,548; no assets. WILLIAM H. CASPARY, clerk, 368 St. Anne's avenue. Liabilities, $1,527; no assets. # Trustee Appointed. PASQUALE PATI & SON-John W. S. Bischoff has been appointed trustee for Pasquale Pati & Son, bankers, 240 Elizabeth street, bond of $5.000, by Referee Macgrane Coxe. A petition in bankruptcy was filled against them on March 25, 1908. Liabilities were $278,000 and there were 2,500 creditors. # Adjudicated Bankrupt. AMERICAN 5c. AND 10c. STORES-Judge A. N. Hand has adjudicated as a bankrupt the American 5c. and 10c. Stores, 815 Fifth avenue, with twelve stores in various cities, in which Nicholas Murray Butler, president of Columbia University, was a director, after a six months fight to keep it from being liquidated through bankruptcy, and the Judge sent the case to Wm. Allen of 67 Wall street as referee. Liabilities are about $273,000. The company asked an extension in July and a petition in bankruptcy was filed against it in August. # Composition Confirmed. CHARLES ROTHMAN-Judge Learned Hand has confirmed a composition of Charles Rothman, wholesale dealer in woollen and cotton goods at 87 Eldridge street, with creditors at 22½ cents on the dollar. # Receiver Appointed. CHAMBERS BROS.-Judge Learned Hand has appointed J. Heinz Bielstein receiver for Chambers Bros., manufacturers of furs at 40 West Twenty-seventh street, at the request of thirty-nine creditors representing claims of $67,467, and on consent of the assignee. His bond was fixed at $17,000. He is to continue business for thirty days and to serve without compensation. He is secretary for the Fur Merchants Credit Association. Liabilities are $72,443 and assets $25,000 to $40,000. Among the creditors are G. Gaudig & Blum, $10,400; Theo Thorer Company, $6,614; Otto Erler, $6,564; George Engel & Co., $5,443, and Joseph Ullman, $4,978. # Schedules Filed. JULIUS SHERMAN, dealer in dress goods at 226 East 102d street, has filed bankruptcy schedules showing liabilities, $5,859, and assets, $2,256, consisting of stock, $2,000; fixtures, $250, and cash in bank, $1. WILLIAM STERN, jobber in furs at 84 West Twenty-eighth street, has filed assignment schedules showing liabilities 16,876; nominal assets, $2,684 and actual assets $1,550. BACH BROS., INC., manufacturer of architectural bronze work at 419 West Forty-second street, has filed assignment schedules showing liabilities, $18,523; nominal assets, $13,538, and actual assets, $1,096. # Assignments. HENRY BURSTEIN, INC, manufacturer of cloaks and suits at 110 West Twenty-sixth street, has made an assignment to Henry Zacks. POLLACK & GREENBERG, composed of Jennie Pollack and Barnet Greenberg, dealers in cloaks and suits at 24 Division street, have made an assignment to Herman Smith. MAX GROSSMAN, dealer in underwear, hosiery, &c, at 3587 Broadway, has made an assignment to Samuel I. Goldberg. HENRY AND WILLIAM J. GREENBERG, partners, dealers in jewelry at 2 Maldon lane, have made an assignment to Joseph W. Gottlieb,