The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-07-13

HOW ADOLF SCHWAB WRECKED
THE LEIPZIGER BANK.
Fascinating Promoter who Seemed to
Have Little Trouble i'm Securing
Millions of Marks.

BERLIN, July 12-The ruin OF the Leip-
ziger bank that failed about a year ago
for nearly 20O,000O0O marks. was wrought
by the fascinating personality of Adolf
Schmidt. according TO testimony given at
the three-weeks trial of the banks direc-
tors, now nearing its end at Leipzig.
Schmidt, who was managing director of
the fredericksburg GRAIN drying COM
pany), of Cassel, a concern exploiting on an
enormous scale a process of drying beer
dregs and cattle feed. pursuaded the bank
to advance during number of years sums
Of money aggregating 100000 marks.
The accused directors, who were success
lively examined before the jury were unable
to give lucid explanation of their reasons
for consenting to make these extraordinary
loans. Every member of the apparently
well-meaning board admitted that this CO.
lossal business mistake was indefensible
upon sound commercial principle Never
theless, they consented because Schmidt
made them believe in the amazing posi-
bilities and profits of the process.
Schmidt also had an invention for dis
tilling wood alcohol by which he repre-
scented that he would obtain the monopoly
Of the wood alcohol of the world. His
eyes were upon the American field as well
as the European, and he opened negotia-
tions with American companies for the for
nation of a world trust and established
sub-companies in every continental coun-
try The alcohol invention contributed to
the dazzling of the Leipzig directors who.
however, made it clear that they did not
know how much the bank had really loaned
to Schmidt. Although they were backing
Schmidts schemes they were deceived by
the banks manager. EXner, who KEPT
secret accounts. Why Exner acted in the
manner in which he did is equally a mys-
terry, for neither he nor the other directors
appear to have made any money person
ally out of the scheme. Schmidt is de-
scribed as having a quiet manner and a
simple way of expressing himself in un
ornate language. He talks with a calm all
Of conviction and seems 10 have believed
completely in himself He is in jai
showed that he was led on step by steI
hoping to save the banks millions as the
cutting off OF Schmidt's credit would wreck
the fredericksburg Company and result
in total loss to the bank of the sums
loaned.
The reputation in Germany of Herr AL
bert Balm. director general of the Ham
burg-American line, has been immensely
increased by the alliance with j. Pierpont
Morgan. The marks of Emperor William S
favor have brought him into social and
even political prominence. One of the
latest stories is that the imperial chancel-
lor, Count Won Buelow, when conversing
with Emperor William about Herr Balm.
remarked: There is stuff in him for a
minister" The Emperor, tapping Count
Won Buelow on the arm, is said TO have
will
/ q CHANCELLOR
This may be one of those small inventions
with which the air is thick. The loyal
! Grenzbote declares the prevalence OF un-
! kind gossip about the Emperor in official
| and aristOcratic circles. This periodical
! thinks ii undermines the reverence and re-
spect which are due TO their lord. But
the VOrwaerts, Socialist, sees therein 1.-THE
natural growth of the byzantine syco-
phancy surrounding the Emperor adding
'Courtiers crawl before him and behind
his back invent impudent insults, while
stupid wretches who blab insulting words
about the Emperor go 70 Jail
XXX
During his Majesty's recent trip to Bonn
he made a speech to the Borussia, his old
college fraternity, against excuses in
drinking and the students have suggested
changes in the drinking code so as to abol-
! ish compulsory swilling as a penalty. The
! Crown Prince Frederick William, who is a
student at Bonn and visiting member oil
Borussia, has since then refused to con-
/ form to the drinking requirements of the
corps.
A movement is on foot to raise a national
! fund to maintain the Bayreuth Opera after
the copyright of "ParsifaT' and other
works expire. The musical world has not
received the idea with much favor because
the Bayreuth management regularly
/ qla ad he ti,,o
usually to about $1,000 marks, though last
/ year the profits were almost nothing be-
/ cause OF the restaging of the Ring. The
! anagement complains that the expend-
/ ftures are increasing. owing to the high
| salaries paid by American and English
! opera managers. The Bayreuth manage
ment pays its soloists $1,000 marks for the
/ last six weeks season and. the orchestra
/ and chorus were paid 10000 marks
Xxx
The year book of the German Shak-
| speare Society shows that there were S7G
Shakespeare performances in Germany dur
ing 1901, "Othello" leading with 134, the
/ Merchant of Venice" coming next with
/ us, Romeo and Juliet was third with SO
| "A Midsummer Nights Dream" was
/ fourth with 79, and Hamlet" fifth with 70
| Councillor Goldberger, after about eight
months stay in the United States. will be-
gin on July 1 the publication of series
of articles in Die Woghe on American
| economic affairs under the title of 1.-The
| Land of Unlimited Possibilities" EN-
| peror William has conferred on Herr Gold
| berger the crown order of the second class
in recognition of his reports on his Ameri-
| can trip.
! Ernst RUNNER. the psychist, has invented
a system of wireless telephony. His ex-
| periments have been successful over a
/ distance of three miles. The invention acts
on the principle of the transformation OF
| light waves TO sound waves by using a