Los Angeles herald. [volume] (Los Angeles [Calif.]) 1890-1893, 1891-11-08
A BERLIN SENSATION
Another Big Banking Insti-
tuition Collapses.
The Leading Partner and His
Son Suicide.
Tremendous Excitement Caused by
the Tragic Incident.
The HirschfeId-W Wolff Failure Caused by
Herr sWolfrs Extravagance-The
Kaiser's Social Purity
Crusade.
Associated Press Dispatches.

BERLIN, Nov. IA sensation was
caused in financial and social circles to-
day by the collapse of the banking insti
tuition of Freidlander & Somnerfeid
The usual scenes OF excitement among
creditors occurred around the offices
and the effect may be imagined when il
was announced that the leading partner
in the concern, together with his son,
had committed suicide. The failure is
associated with the recent suspension Of
Hirschfeld & Wolff. AZ
The fact that Freidlander & Sommer-
field were financially embarrassed and
would find difficulty in meeting their
obligations was known to some of the
/ operators in 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 general and heavy
fall in pieces, but the business of the
day was over before the tragic incidents
closing the career of the bankers became
generally known.
DEATH RATHER THAN DISGRACE.
AS the facts in the case developed, it
appeared that the father and son met in
their Office, in the bank, early this
morning and discussed the crisis in their
affairs. After talking over the matter
pro and con, they concluded that as
they were hopelessly embarrassed they
would die. 1t is understood this resolu-
tion to take their own lives was in
great measure due to the fact that their
arrest was pending, as Felix Sommer-
field. the son, had became 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 disgrace, both
the father and the 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 stsll
alive. They were conveyed to hospital
in dying condition.
HISTORY OF THE FAILURE.
The firm had been in existence long
time, and held good position in the
financial world. Since the Hirschfeld
q Wolff failure, many of the principal
coming alarmed regarding the stability
of private banking houses, made heavy
Withdrawals of deposits. Herr Sommer-
field tried to meet the difficulty bv at
tempting to realize on investments.
These, however, were locked up in in
dustrial and other stocks which were
not readily marketable, and eventually
il was found impossible for the firm to
meet its engagements.
The best informed members of the
bourse say they do not expect the fall
ure to precipitate a period of general
disaster, though it is certain to greatly
increase alarm among the investing
classes.
This evening large crowd assembled
in front OF the bank and threatened
to carry the building by storm to re-
cover their securities. The police had
great difficulty in restraining the mob
from carrying their threats into execu-
ton.
Freidlander, the senior and surviving
partner, is staying at Mentone. A tele-
gram has been sent him summoning
him to return to Berlin.
THE HIRsCHFIELD-woLEF FAILURE.
Inquiry into the affairs of Hirsch6eld
& Wolff realizes the worst anticipations.
The firm has been in business sixty-four
years, and had as its chief Herr Wolff,
who occupied several other posi-
tions of trust. He was promi-
nent society man, who lived a
life OF ostentatlous wealth, his
household expenses running to 100000
marks year. He did little in the
speculative line until recent years, when
his private extravaganza and losses at
the gaming table led to his embarrass-
ment. He tried to recoup his losses
through dealings on the Paris and Berlin
bourses. AS matter of fact, the firm
has been insolvent since 1878. For
number of years Wolff has been living
by selling and pawning securities OF
deposltors, working in connection with
Banker Joseph Leipsiger. It is asserted
that Wolff, with ali the facts being
known to Leipsiger, foated spurious
drafts through Leipsiger, and pawned
securities of depositors amounting in.
value to 3,500,000 marks. Leipsiger
finally went to the wall, and his failure
hastened the downfall of Hirschfeld and
Wolf.
Among the numerous aristocratic
creditors Of the firm are Prince Henry
OF Prussia, who loses 100000 marks
Prince Gunther of Schleswig- Holstein
brother of the empress of Germany,
100000 marks, and Count Lutticbon, a
prominent leader in German society,
900 marks. Other members Of the
aristocracy are severely bitten.
woLFF's FAST LIFE.
Wolff is in prison. He says he is un-
able to make any estimate of his lia-
bilities. He has number OF heavy
gambling debts. Wolff was president
OF the Resource club, an organization
composed of wealthy parvenues and
tnanciers who are adicted to reckless
playing. 1t is recorded that upon the
eve OF the failure OF the firm, Wolff re-
fused to pick up couple thousand
marks in bills, which had accidently
dropped at the gambling table. He left
the money on the floor for the walters.
THE KAIsER's SOCIAL PURITY CRUSADE.
The emperor designs to cleanse high
1 az we'll az low s0cipfv. and his oood IN