The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-11-08
Sensational Outcome of the Collapse Yesterday,
at Berlin, of the Banking Institution
of Friedlander & Sommerfeld.
How Herr Wolff Squandered the Hoard
ings of Royalty and Aristocracy.
Emperor William Determined to Rid His EN-
pire of the Disreputable of Both Sexes
Bakers Kept Busy Cooking Indian Meal.

BERLIN, Nov. IA sensation was caused
in financial and social circles here to-day
by the collapse of the banking institution
of Friedlander 81 Sommerfeld. The
usual scenes of excitement among depos-
itors anxious to secure their money. and
among those holding the notes and drafts Of
the institution, occurred among the offices
of the firm, and the effect upon the
creditors may be imagined when it was an
nouncod that the junior partner in the con-
Germ. together with his son, had committed
suicide. The failure is associated with the
recent suspension of the bankers Hirsch-
field g. Wolff. The fact that Friedlander
e. Sommerfeld were financially embar-
rassed, and that they would find diff
fculty In meeting their obliga-
tions was known to some of the
operators on the bourse here early In the
day. Large forced sales were made and
this action was vaguely attributed to local
financial troubles These sales caused q
general and heavy fall in pricos. but the
business of the day was over before the
tragic incidents closing the case of the
bankers became generally known.
As the facts In the case developed it ap-
peared that father and son met in their Of
flee in the bank early this morning and
discussed the crisis in their affairs. After
talking over the matter pro and con they
embarrassed. they would die. 1t Is
understood that this resolution to
take their own lives was in
q great measure due to the fact
sommerfeld the son. had become involved
in speculations which were more than
likely to lead to his arrest on criminal
charge. Having arrived at the decision
that death was preferable to arrest and dis
grace. both father and son shot themselves
in the head, using revolvers. When
the clerks in the office, alarmed at the re-
ports of the pistols. ran to the private
office they found father and son still alive.
They were conveyed to the hospital In dy-
ing condition. The firm has been in exist
ance for O long time and held q good posi-
ton IN the financial world. 1t had earned
q solid reputation as steady going house.
Its customers, who belonged chiefly to the
middle class, were scattered throughout
the empire.
Since the Hirschfeld & Wolff failure
many af the principal clients Of Fried
Lender IL Sommerfeld. who had become
alarmed regarding the stability of private
banking houses, made heavy Withdrawals
of deposits. Herr Sommerfeld tried to
meet the difficulty by attempting to realize
on his Investments. These. how:
and and other usS stocks Stocks Which WI h we've not
readily marketable and eventually 1T was
found impossible for the firm to meet it's
engagements. The police have taken
charge of the firms Office and havo placed
seals upon the safes. The intensity of the
excitement caused by the failure was such
that it was q cause for congratulation that
the fact of the suicides was not known un-
til after the close of business, as 1t
gives the public time to reflect before al
lowing themselves to become overcome by
panic. The best informed members of the
bourse say that they do not expect that
the failure will precipitate period Of
general disaster Though 1t Is certain to great
ly increase tho alarm among the investing
classes. This evening large crowd assem-
bled in front of the bank and threatened
to carry the building by storm and recover
their securities. The police had great diff
Guilty in rcstra ming the mob from carrying
their threats into execution. The many
artisans are infurated at the loss of their
deposits FrIedl2nder. the senior and sur
vIvIng partner. Is staying at Mentone.
telegram has been sent summOning him to
return to Berlin.
THE HIRSCHFELD-wOLFF FAILURE.
The inquiry into the affairs of Hlrschfeld
g. Wolff realizes the worst anticipations.
The firm had been in business for sixty
four years and had as its chief officer Herr
Wolff. who occupied several other positions
of trust. He was prominent society man
who lived q life of ostentatious wealth. his
household expenses running to 100000
marks year. He did little in the specu-
latiye line until recent years, when his pri-
vate extfavagances and losses at the gam
ing table led to his embarrassment He
on the Paris and Berlin bourses. AS
a matter of fact. the firm had been
insolvent since 1873. For q number of
years Wolff has been living by selling and
pawning the securities of depositors, work
ing in connection with the banker Joseph
Leipsiger. 1t is asserted that Wolff, with
all the facts being known to
Leipsiger. floated spurious drafts through
Leipsiger and pawned securities of
depositors amounting in value to $500, 900
marks. Leipsiger finally went to the wall.
and his failure hastened the downfall of
Hirschfeld 81 Wolf.
Among the numerous aristocratic cred
itors of the firm are Prince Henry, of Prus-
sia, who loses 500 900 marks; Prince Gun-
ther. of Schleswig- Holstein, brother
of the Empress of Germany. whose
loss also amounts to 100000 marks,
and Count Luttichon. promi-
nent leader in German society, who is
out 3O0. .0GO. Other members of the aristoc-
racy who are severely hit are Count Zed-
litz Treschler. Count Bredow Reichstager
Godschmidt and Count Gutenberg of the
chief of the imperial stables. A large mum.
ber of industrial companies lOse their de-
posits.
Wolff is confined in the Moabit prison.
He says he Is unable to make any estimate
of his liabilities. He has a number of heavy
gambling debts. On the Sunday before hls
arrest he had a party in his box at
the opera house. After the performance
the party visited DressePs restaurant
where o costly supper was served. 1t may
perhaps be unworthy OF note, but the bill
for this supper is still unpaid. Wolff was
president of the Resource Club, an or
ganizatIon composed of wealthy parvenus
and finaDciers who are addicted to
reckless playing. 1t Is recorded that upon
the evening of the failure of the firm Wolff
refused to pick up a couple of thousand
marks in bills which he had accidentally
dropped at the gambling table. He left
the money on the floor for the walters.
The Emperor designs TO cleanse high as
well as low society, and his good intentions
have received impetus from these disclos-
ures. The wolff clique Haunted demireps
in sumptnous raiment in the best
boxes Of the opera house, and
with their frail companions drove
in baroucbes through the Thiergar-
ten. The officers belonging to the Berlin
and other garrisons who are following
the same life as the Wolff crowd
have received caution through the
colonies of their regiments that the En-
peror will wipe them out OF the army
and will use his influence TO ostracise them
In society unless they mend their ways
forthwith. The police continue their efforts
to place check upon the social evil for
which Berlin is notorious. being prompted