The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-11-09
CABLE NEWS FROM GERMANY
,rr,ry SHAKEN BY TEE coLLAPsE OF
TWo GREAT BANxUG FLRAGa

,rRIIy SHAKEN III TEE COLLAPsE OF
TWo GREAT BANxU9 FIRMS.
rs. Rvmors that ths Royal Family Has
rn.. Heavily Are Faise-lraay Lose
rA.,r All-casses OF the Ksilures-E.-
..ror w,liisa OKsrs Another ARfoat 20
IN. Newspspers-A.serisan Bacon.
prn,Iy. Nov. a-Nover since the 6trousberg
.neculatye crash OF twenty years ago has Ber-
N, heen 40 shaken as Il II to-day BY the col
,.rse Of Hirschfeld 4 Wolf. tho fall Of Herr
IeInzirer and tho consequent tragedy In the
MONA N the SommerfeldA In tho celebrated
~ mia succeeding the Franco Prussian war.how-
svsr the rampant speculation causing Il found
anna excuse In tho vast overflow OF the French
milusrds into the depleted treasures Of
th. emnire Now. however. the wreck among
the treat financial houses Of the city Is re-
oarded as symptom Of unpallisted and un-
nsrdonable generalization Of the men who
hold the purse strings Of the empire. A fow
men near the throne suffered In reputation and
nurse IN the formor crash; notably the Duke
OF Ratibor. and the Silesian nobility were
closely plucked BY the strousberg swindle;
nevertheless. the principal sufferers were the
publIc at large. who had invested their money
stock companies.
This limo the titled landlords Of tho gigantic
sststss in Russian Posen are the principal
yictima Count Won Zedlitz- Trntxschler and all
his high conservative clan. Baron Won Klitzing.
Count PosadowskL Count eur Lppe- Biester.
field. and score or moro OF other great mobiles
Of this one province have lost nearly all Of
their large fortunes Behind the exception.
Ally long limo Of titled victims stands .
small army of smaller investors in tho CON-
eervatiye classes-men on small salaries
In the departments. municipal offlcials.
and owners Of little estates In north.
ern and northeastern Germany. Finally
comes the usual contingent Of widows and
orphans whose money had been placed with the
wrecked house By trustees. While there are
several larger houses than Hirsohfeld &
VOLTS In Berlin. there Ii not another which.
By its collapse. could have spread suffering
and panic through 20 many classes OF society
here Tho implicit confidence Of all from the
Cabinet down. in the house OF Hirsohfeld &
Wolf was due 10 its long and continued his.
tory and It's consequent reputation for con-
servatism. The bank was founded in 1897.
The report that the imperial family has lost
heavily through tho failure is false. The chief
banker OF the HohenEollerns 10 Herr Cohen Of
Dsssau. who bears tho title Of Privy Councillor
Of Commerce. somewhat mysterious rank In
view Of the fact that there Is no Council Of
Commerce 10 which he can be PRIV. Cohen
nover has anything to do with metropolitan
corners or "booms." but joys along in the
traditional ruts. supposed In Germany to be
reserved for men OF his mysterious title and
influence ut court Emperor William L
commissioned this country banker to in
crease the modest fortune Of the reigning
HohenSollerns, and for this purpose gave
him tan million marks - nest egg. Cohen
departed for onoe from his habits OF slow
eonsevstsm % - to improve his opportunity
to win the favor Of the imperial family. He
devoted his whole energy for nine or ten years
toiAagsAsine he wseltA u his s0versiGn and
at tho Sad Of that period he returned to the
Empsror eighty millionA Cohen has retained
the prestige won b. this achievement and he
has bean wise enough NOT to risk . repetition
Of his ventures. He - - slow. safe. and nom
speculative - he was before he got his i'm.
perial commission. He has remained tho
although now and then. during the last years
Of Bismsrck's sscendancy. the Chancellor in
duosd the Emperor to transact little bust.
ness with Bleichroder.
Hlrschield q Wolf strove for many years TO
supplant Cohen In his connection with the
court. but without success. They never re-
ceived q single commission from Ho-
hensollern. In fact. the present EN-
peror gave special orders that mono Of
his family should bank with them.
Wolfrs son resented this imperial boycott.
and. to get revenge. spread on Change false
reports concerning the Emperor's health. to
the effect that Williams nerves were wrecked.
that the assesses near his ear were likely
to prove fatal. and chat he frequently
showed signs OF mental arrangement When
these reports reached the Emperor's ears he
ct once ordered an investigation Tho author
ship was traced directly to young WolfH and
at the Emperor's order he Was excluded from
the Bourss for some time The elder Wolf.
however. was never caught In such sensation
al proceedings. In fact. he carefully avoided
all appearance OF financial manoeuvring. so
as to keep firm the reputation OF his house for
conservative methods. His name was In the
directory lists for several large and wealthy
stock companies, and In fees alone no received
moro than 10000 marks annually.
Despite oil thia IL IL now suspected that
Hirsohdeld q Wolf have boon insolvsnt for
many years. Their liabilities exceed ten mil
lions Of marks; their nominal assets are but
three millions Of marks. and most Of this sum
10 In very doubtful securities
Tho cause Of the crash lies In the region Of
high International politics. II was the decline
Of the RussiAn loan In Paris Hirsohheld &
WOLF were the special secret agents In Berlin
Of the Russisn Government In this matter.
and they were deputed to do Finance
Minister Wyschnegradskis dirty work.
which for obvious reasons the Messrs.
Warschsusr. accredited Berlin agents Of
Russia. were unable to undertake. Tho COM
mission Of Hirsohneld l. Woln from tho
Russian Government was held by the Barfngs.
and they lost heavily ON It Thereupon the
Russian Finance Minister suggested that they
buy roubls rentes In anticipation Of the rise
consequent upon the phenomenal success Of
the loan In Paris Instead Of the rise came the
recent drop. and Hirschneld b Wolf were
crushed
That no detail Of the operations Of the
wrecked house will remain concealed Is as
sured BY the Emperors order that every bit Of
tho financial fraud and rottenness shall be ex-
posed wherever found. The inquiry 10 likely to
have AZ Injurious effect upon Russian So
ourities generally.
About 1000 dspositors with Sigmund Som-
merfeld and his son Felix. who attempted sui