Alfred Léonard Loewenstein (11 March 1877 – 4 July 1928) was a Belgian
financier
An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital the investor usually purchases some species of property. Types of in ...
. At his peak in the 1920s, Loewenstein was worth around £12 million in the currency of the time (equivalent to £ million in ), making him the third-richest person in the world at the time. His wealth came from investments in
electric power
Electric power is the rate of transfer of electrical energy within a electric circuit, circuit. Its SI unit is the watt, the general unit of power (physics), power, defined as one joule per second. Standard prefixes apply to watts as with oth ...
and
artificial silk businesses when those industries were in their infancy.
Loewenstein is remembered today for his mysterious disappearance and death in 1928.
Early life and business career
Alfred Loewenstein was born in
Brussels
Brussels, officially the Brussels-Capital Region, (All text and all but one graphic show the English name as Brussels-Capital Region.) is a Communities, regions and language areas of Belgium#Regions, region of Belgium comprising #Municipalit ...
, Belgium, to Bernard Loewenstein, a
German-Jewish
The history of the Jews in Germany goes back at least to the year 321 CE, and continued through the Early Middle Ages (5th to 10th centuries CE) and High Middle Ages (c. 1000–1299 CE) when Jewish immigrants founded the Ashkenazi Jewish commu ...
banker who converted to
Catholicism
The Catholic Church (), also known as the Roman Catholic Church, is the List of Christian denominations by number of members, largest Christian church, with 1.27 to 1.41 billion baptized Catholics Catholic Church by country, worldwid ...
,
and the daughter of Brussels stockbroker Chrétien Dansaert, a Catholic. Alfred established his own banking concern, and was a wealthy man by 1914.
In
World War I
World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...
, Loewenstein offered the
Belgian government at Sainte-Adresse
The De Broqueville government in Sainte-Adresse refers to two successive Belgium, Belgian governments, led by Charles de Broqueville, which served as governments in exile during the German occupation of Belgium during World War I, German occupati ...
US$50 million, interest-free, to stabilize the Belgian currency in return for the right to print
Belgian franc
The Belgian franc was the currency of the Kingdom of Belgium from 1832 until 2002 when the euro was introduced. It was subdivided into 100 subunits, each known as a in Dutch, or in French and German.
History
The ''gulden'' (guilder) of 20 ''st ...
s. The offer was refused. At war's end, he maintained a residence in England where he ran an investment business that made him one of Europe's most powerful financiers. He partnered with the investment house of
Canadian
Canadians () are people identified with the country of Canada. This connection may be residential, legal, historical or cultural. For most Canadians, many (or all) of these connections exist and are collectively the source of their being ''C ...
-born
Sir James Dunn
Sir James Hamet Dunn, 1st Baronet (29 October 1874 – 1 January 1956) was a Canadian financier and industrialist during the first half of the 20th century. He is recognized chiefly for his 1935 rescue and subsequent 20-year presidency and proprie ...
in several
business ventures, the duo emerging with more than £1,000,000
profit
Profit may refer to:
Business and law
* Profit (accounting), the difference between the purchase price and the costs of bringing to market
* Profit (economics), normal profit and economic profit
* Profit (real property), a nonpossessory inter ...
from their 1920s investment in
British Celanese
British Celanese was a chemical company based in England. Formed in 1916, it survived as an independent company until 1957 when it became a subsidiary of Courtaulds.
History
The origins of the company lie with two brothers, Henri and Camille ...
alone.
Loewenstein was an owner of a successful stable of
thoroughbred
The Thoroughbred is a list of horse breeds, horse breed developed for Thoroughbred racing, horse racing. Although the word ''thoroughbred'' is sometimes used to refer to any breed of purebred horse, it technically refers only to the Thorough ...
steeplechase race horses. His horses won the 1926 and 1928 runnings of the
Grand Steeple-Chase de Paris.
Business successes
Loewenstein made an enormous fortune providing
electric power
Electric power is the rate of transfer of electrical energy within a electric circuit, circuit. Its SI unit is the watt, the general unit of power (physics), power, defined as one joule per second. Standard prefixes apply to watts as with oth ...
facilities for developing countries worldwide through his Belgian-based company, ''Société Internationale d'Énergie Hydro-Électrique'' (SIDRO). By the mid-1920s, Loewenstein's reputation was such that he was consulted by heads of state from around the globe. The British government made Loewenstein a
Companion of The Most Honourable Order of the Bath
The Most Honourable Order of the Bath is a British order of chivalry founded by King George I on 18 May 1725. Recipients of the Order are usually senior military officers or senior civil servants, and the monarch awards it on the advice of His ...
.
In 1926, Loewenstein established "International Holdings and Investments Limited", which raised huge amounts of
capital
Capital and its variations may refer to:
Common uses
* Capital city, a municipality of primary status
** Capital region, a metropolitan region containing the capital
** List of national capitals
* Capital letter, an upper-case letter
Econom ...
from wealthy investors wishing to get aboard his bandwagon of success.
In 1926, he bought Villa Sacchino, a sumptuous house in
Biarritz
Biarritz ( , , , ; also spelled ; ) is a city on the Bay of Biscay, on the Atlantic coast in the Pyrénées-Atlantiques department in the French Basque Country in southwestern France. It is located from the border with Spain. It is a luxu ...
, in the
French Basque Country
The French Basque Country (; ; ), or Northern Basque Country (, or , ), is a region lying on the west of the French department of the Pyrénées-Atlantiques. Since 1 January 2017, it constitutes the Basque Municipal Community (; ) presided ...
, with a view on the
Bay of Biscay
The Bay of Biscay ( ) is a gulf of the northeast Atlantic Ocean located south of the Celtic Sea. It lies along the western coast of France from Point Penmarc'h to the Spanish border, and along the northern coast of Spain, extending westward ...
and the
Atlantic Ocean
The Atlantic Ocean is the second largest of the world's five borders of the oceans, oceanic divisions, with an area of about . It covers approximately 17% of Earth#Surface, Earth's surface and about 24% of its water surface area. During the ...
.
Disappearance
On the evening of 4 July 1928, Loewenstein left from
Croydon Airport
Croydon Airport was the UK's only international airport during the interwar period. It opened in 1920, located near Croydon, then part of Surrey. Built in a Neoclassical architecture, Neoclassical style, it was developed as Britain's main airp ...
to fly to
Brussels
Brussels, officially the Brussels-Capital Region, (All text and all but one graphic show the English name as Brussels-Capital Region.) is a Communities, regions and language areas of Belgium#Regions, region of Belgium comprising #Municipalit ...
on his private aircraft, a
Fokker F.VIIa/3m trimotor (G-EBYI), along with six other people. According to those on board, while the aircraft was crossing the
English Channel
The English Channel, also known as the Channel, is an arm of the Atlantic Ocean that separates Southern England from northern France. It links to the southern part of the North Sea by the Strait of Dover at its northeastern end. It is the busi ...
at an altitude of , Loewenstein went to the rear of the aircraft to use the
lavatory. In Loewenstein's aircraft, a door at the rear of the main passenger cabin opened on to a short passage with two doors: the one on the right led to the lavatory, while the one on the left was the aircraft's entrance door.
When Loewenstein had not reappeared after some time, his secretary went in search of him and discovered that the lavatory was empty, while the aircraft's entrance door was open and flapping in the slipstream. The employee (along with the others on the aircraft) asserted his belief that Loewenstein had fallen through the aircraft's rear door and plunged several thousand feet to his death in the English Channel. The aircraft landed first on the beach, before transferring to the airfield at
Saint-Inglevert
Saint-Inglevert (; ) is a commune in the Pas-de-Calais department in the Hauts-de-France region of France about north of Boulogne It is the site of the Saint-Inglevert Airfield.
Population
See also
*Communes of the Pas-de-Calais departme ...
,
Pas-de-Calais
The Pas-de-Calais (, ' strait of Calais'; ; ) is a department in northern France named after the French designation of the Strait of Dover, which it borders. It has the most communes of all the departments of France, with 890, and is the ...
, France.
[
]
News and investigation
News of Loewenstein's demise caused panic selling
Panic selling is a large-scale selling of an investment that causes a sharp decline in prices. Specifically, an investor wants to sell an investment with little regard to the price obtained. The sale is problematic because the investor is reacting ...
in his corporations' publicly traded shares
In financial markets, a share (sometimes referred to as stock or equity) is a unit of equity ownership in the capital stock of a corporation. It can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Sha ...
, which immediately plummeted in value by more than fifty percent.
On 12 July 1928, it was reported that tests had been conducted by the Accidents Branch of the British Air Ministry using Loewenstein's aircraft. It was stated that at an altitude of one of the Ministry men had thrown himself against the aircraft's entry door, which had opened about . However, he was immediately thrown back into the aircraft when the slipstream
A slipstream is a region behind a moving object in which a wake of fluid (typically air or water) is moving at velocities comparable to that of the moving object, relative to the ambient fluid through which the object is moving. The term slips ...
violently slammed the door shut. It was concluded that it would have been impossible for someone to accidentally open the door and fall out.
Loewenstein's body was discovered near Boulogne
Boulogne-sur-Mer (; ; ; or ''Bononia''), often called just Boulogne (, ), is a coastal city in Hauts-de-France, Northern France. It is a Subprefectures in France, sub-prefecture of the Departments of France, department of Pas-de-Calais. Boul ...
on 19 July 1928 and was taken by fishing boat to Calais
Calais ( , , traditionally , ) is a French port city in the Pas-de-Calais department, of which it is a subprefecture. Calais is the largest city in Pas-de-Calais. The population of the city proper is 67,544; that of the urban area is 144,6 ...
, where his identity was confirmed by means of his wristwatch; an autopsy
An autopsy (also referred to as post-mortem examination, obduction, necropsy, or autopsia cadaverum) is a surgical procedure that consists of a thorough examination of a corpse by dissection to determine the cause, mode, and manner of deat ...
was performed (at the request of his family), his brother-in-law stating that they did not suspect anyone of foul play, but that they did not want anyone to suggest after the burial that Loewenstein might have been poisoned or had died in the aircraft and then been thrown out. The autopsy revealed a partial fracture of Loewenstein's skull and several broken bones; it was concluded that he had been alive when he struck the water.
Loewenstein was buried in a cemetery outside Evere
Evere (; ) is one of the 19 municipalities of the Brussels-Capital Region (Belgium). , the municipality had a population of 43,608 inhabitants. The total area is , which gives a population density of . In common with all of Brussels' municipal ...
, in a tomb belonging to his wife's family, the Misonnes. However, his name was never carved on the slab covering his casket, so he was in effect buried in an unmarked grave.
Theories
Many theories have been put forward as to exactly what had happened to Loewenstein in the back of his aircraft; some suspected a criminal conspiracy in which his employees murdered him. ''The New York Times
''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of ...
'' hypothesised that a growing absent-mindedness, noted by many of Loewenstein's acquaintances, may have caused him to walk out the wrong door of the aircraft. Because he had left behind a tangled web of business ventures, many of which were highly leveraged
In finance, leverage, also known as gearing, is any technique involving borrowing funds to buy an investment.
Financial leverage is named after a lever in physics, which amplifies a small input force into a greater output force. Financial leverag ...
, others theorized that his business empire was on the verge of collapse. Some even asserted that corrupt business practices were about to be exposed and that Loewenstein, therefore, committed suicide
Suicide is the act of intentionally causing one's own death.
Risk factors for suicide include mental disorders, physical disorders, and substance abuse. Some suicides are impulsive acts driven by stress (such as from financial or ac ...
. None of these theories were ever proven.
In 1987, William Norris wrote Loewenstein's story in a book titled ''The Man Who Fell From the Sky'' (New York: Viking, 1987). Norris presents evidence in support of his case that, if Loewenstein's death was not a conspiracy by business rivals and associates, a certain opportunism existed regarding the death of the tycoon and his insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect ...
. He also shows that later events are frequently ignored, such as the fact that Loewenstein's son Robert shot one of the family servants under murky circumstances within a decade or so after the tragedy. The son was himself killed in an aviation accident in 1941 while serving with the Air Transport Auxiliary
The Air Transport Auxiliary (ATA) was a British civilian organisation set up at the start of the Second World War with headquarters at White Waltham Airfield in Berkshire. The ATA ferried new, repaired and damaged military aircraft between fac ...
. Norris concluded that Loewenstein had been thrown from the aircraft by the pilot, Donald Drew, at the behest of Madeleine Loewenstein, the motive being to gain control of his fortune. He suggested that the aircraft's rear door was completely removed while in the air, and a replacement later fitted on the beach at St. Pol.
Crime writers Robert and Carol Bridgestock have speculated that Loewenstein faked his own death and disappeared because of the financial irregularities in his businesses. This theory is supported by the facts that the body was buried in an unmarked grave, and that his wife did not attend the funeral.
Alleged drug deal with Arnold Rothstein
In his biography of gangster Arnold Rothstein
Arnold Rothstein (January 17, 1882 – November 6, 1928), nicknamed "The Brain", was an American racketeer, crime boss, businessman, and gambler who became a kingpin of the Jewish Mob in New York City. Rothstein was widely reputed to have orga ...
titled ''Rothstein: The Life, Times, and Murder of the Criminal Genius Who Fixed the 1919 World Series'', author David Pietrusza
David Pietrusza is an American author and historian, and is considered an expert on US Politics in the 1920s.
He has written a number of books, including ''Roosevelt Sweeps Nation: FDR's 1936 Landslide and the Triumph of the Liberal Ideal,'' w ...
alleged that Loewenstein became partners with Rothstein to fund a major drugs deal in spring 1928, and that his death would have cut off the necessary funding, causing Rothstein to dig deeper into his already stretched resources to prevent the deal collapsing.
In popular culture
* In 2010, Loewenstein's death was the subject of an episode of the History Channel
History (formerly and commonly known as the History Channel) is an American pay television television broadcaster, network and the flagship channel of A&E Networks, a joint venture between Hearst Communications and the Disney General Entertainme ...
's ''Vanishings!'' series.
*In 2014, Loewenstein's death was the subject of an episode of BBC Radio 4
BBC Radio 4 is a British national radio station owned and operated by the BBC. The station replaced the BBC Home Service on 30 September 1967 and broadcasts a wide variety of spoken-word programmes from the BBC's headquarters at Broadcasti ...
's ''Punt PI
''Punt PI'' is a fact-based comedy radio series on BBC Radio 4 in which Steve Punt investigates mysteries in Britain.
Format
Each episode is 30 minutes long and there are three or four episodes in each series.
Starting with series two, every ep ...
''.
*In 2021, Loewenstein's death was the subject of the final episode of ''Buzzfeed Unsolved: True Crime''.
See also
*J. P. Morgan
John Pierpont Morgan Sr. (April 17, 1837 – March 31, 1913) was an American financier and investment banker who dominated corporate finance on Wall Street throughout the Gilded Age and Progressive Era. As the head of the banking firm that ...
*Andrew Carnegie
Andrew Carnegie ( , ; November 25, 1835August 11, 1919) was a Scottish-American industrialist and philanthropist. Carnegie led the expansion of the History of the iron and steel industry in the United States, American steel industry in the late ...
*John D. Rockefeller
John Davison Rockefeller Sr. (July 8, 1839 – May 23, 1937) was an American businessman and philanthropist. He was one of the List of richest Americans in history, wealthiest Americans of all time and one of the richest people in modern hist ...
* William A. Clark
*William Jackson Palmer
William Jackson Palmer (September 18, 1836 – March 13, 1909) was an American civil engineer and veteran of the American Civil War. During the Civil War, he was promoted to brevet brigadier general and received a Medal of Honor for his actions. ...
*Joseph Pulitzer
Joseph Pulitzer ( ; born , ; April 10, 1847 – October 29, 1911) was a Hungarian-American politician and a newspaper publisher of the ''St. Louis Post-Dispatch'' and the ''New York World''. He became a leading national figure in the U.S. Democ ...
*Cornelius Vanderbilt
Cornelius Vanderbilt (May 27, 1794 – January 4, 1877), nicknamed "the Commodore", was an American business magnate who built his wealth in railroads and shipping. After working with his father's business, Vanderbilt worked his way into lead ...
*Henry Ford
Henry Ford (July 30, 1863 – April 7, 1947) was an American Technological and industrial history of the United States, industrialist and business magnate. As the founder of the Ford Motor Company, he is credited as a pioneer in making automob ...
*Marjorie Merriweather Post
Marjorie Merriweather Post (March 15, 1887 – September 12, 1973) was an American businesswoman, socialite, and philanthropist. She was the daughter of C. W. Post and the owner of General Foods, General Foods Corporation. For much of Post's l ...
*Marcus Daly
Marcus Daly (December 5, – November 12, 1900) was an Irish-born American businessman known as one of the four Copper Kings of Butte, Montana, United States.
Early life
Daly emigrated from County Cavan, Ireland, to the United States as a youn ...
*William Barstow Strong
William Barstow Strong (May 16, 1837 – August 3, 1914) served as president of the Atchison, Topeka and Santa Fe Railway from 1881 to 1889. He is often referred to as either William B. Strong or W. B. Strong.
Life and career
He was born i ...
*William Randolph Hearst
William Randolph Hearst (; April 29, 1863 – August 14, 1951) was an American newspaper publisher and politician who developed the nation's largest newspaper chain and media company, Hearst Communications. His extravagant methods of yellow jou ...
General
*List of unsolved deaths
This list of unsolved deaths includes notable cases where:
* The cause of death could not be officially determined following an investigation
* The person's identity could not be established after they were found dead
* The cause is known, but th ...
*List of people who disappeared mysteriously at sea
Nile Kinnick
Throughout history, people have mysteriously disappeared at sea. The following is a list of known individuals who have mysteriously vanished in open waters, and whose whereabouts remain unknown. In most ocean deaths, bodies are never r ...
Publications
* William Norris: ''The Man Who Fell From the Sky''. New York, Viking, 1987.
* Maurice Privat: ''La vie et la mort d'Alfred Loewenstein''. Paris, La nouvelle société d'édition, 1929
E. Phillips Oppenheim: ''Who Travels Alone. The Life and Death of Alfred Loewenstein'' Project Gutenberg Australia. (e-book, 2012). Accessed 23 Dec. 2015
References
External links
BBC audio with podcast link for Punt PI Series 7 Episode 1 The Mysterious Death of Flying Millionaire Alfred Loewenstein
*
{{DEFAULTSORT:Loewenstein, Alfred
1877 births
1920s missing person cases
1928 deaths
Belgian bankers
Belgian expatriates in the United Kingdom
Belgian financiers
Belgian investors
Belgian Jews
Belgian people of German-Jewish descent
Belgian Roman Catholics
Belgian soldiers
Businesspeople from Brussels
Converts to Roman Catholicism
Deaths by falling out of an aircraft
Formerly missing Belgian people
Honorary companions of the Order of the Bath
Recipients of the Legion of Honour
Racehorse owners and breeders
Unsolved deaths
Victims of aviation accidents or incidents in 1928