Otto Hermann Kahn: Fulfilling a Father’s Dream

Otto Hermann Kahn was a German-born American banker, philanthropist, and art collector. He was born on February 21, 1867 to Jewish parents. He grew up in Mannheim, Germany. When the revolution of 1848 was over, his father became a US refugee. His father returned to Germany after earning his US citizenship.

As a little boy, Kahn wanted to be a musician. Even before his graduation from a gymnasium in Mannheim, Kahn learned to play a number of musical instruments. However, his father set the career path of all his eight children.  He wanted Kahn to be a banker. When he was 17, Kahn had to work for three years as junior clerk at a Karlsruhe bank. He became thoroughly grounded in the intricate world of finances. Later, he served kaiser’s hussars for one year.

After his short stint with the hussars, Kahn worked with the London agency of Deutsche Bank for five years. There, he displayed exceptional talents and became the second in command at such a short time. The English social and political lifestyle appealed to him, and Kahn became a naturalized British subject.

Kahn went to the US in 1893 after he was invited to join Speyer and Company in New York City. He married Addie Wolff in January 1896. One year later, Kahn joined his father-in-law at Kuhn, Loeb & Co. Kahn gave up his British citizenship in 1917 to become a US citizen.

Kahn’s association with his father-in-law created many connections for him. One of the most prominent of them was railroad builder E.H. Harriman. Although Kahn and Harriman had many differences in methods and temperament, they were close as brothers. They reorganized the Union Pacific Railroad where Kahn demonstrated his ability to mathematically and scientifically analyze and solve problems.

Because of his keen business acumen, Kahn became known as the ablest railroad reorganizer in the US. He had associations with railroads such as Texas and Pacific Railroad, Chicago and Eastern Illinois Railroad, Wabash Railroad, Missouri Pacific Railroad and Baltimore and Ohio Railroad. He promptly and vigorously acted each time there is an imminent financial panic.

Kahn suffered from complications of arteriosclerosis. He died of heart attack on March 29, 1934 at 67.