Louise Wolf was my grandmother's aunt. Her murder is still a somewhat taboo topic in our family. I really appreciate the work you've all done and the research/photos you've posted here. While it doesn't bring anything new to light, it does color the stories I've been told with details.
I would like to share what I know with all of you in the hopes that it may help put some pieces together. Please bear in mind, however, that I have not read any of the research or seen any primary documents/evidence. Everything that I know is family lore. Also, these stories were imparted to me through my mother and my great-aunts (some of them very very old now or were at the time they told the stories) so its been diluted and, unfortunately, my retelling of it may be flawed as well due to lapses in my own memory or outright misunderstanding.
About the Lesbian Love Triangle theory: I can neither prove nor disprove it. I will say this about it: Louise was one of many children (her brother John is my Great Grandfather, he was older and fairly wealthy which may explain the $10,000 reward). Something terrible happened to Louise's parents (they died unexpectedly, I know not how) and the children including Louise were sent to family members or put up for adoption (explaining the article about the sibling finding out the murdered woman was her sister). John still lived in the area but had a wife and a LOT of kids himself so he couldn't board Louise. It is my understanding that due to her circumstances, she was forced to make her way herself and was unable to obtain a desirable marriage. This may explain why she was rooming with another woman at the age of 38 (also keep in mind, back then it became increasingly difficult for a woman to marry after the age of 23-24 and the male population had taken a dive in the wake of WWI and the Spanish Flu). So, while she could have been a lesbian, the fact that she was unmarried and living with another woman is not enough evidence to support that. I would also submit that even if she had been a lesbian, the likelihood that the murder would be as physically demanding as bludgeoning by another jealous lover is pretty low (especially considering that most women then had very little physical training and wore terrible shoes- I would vote stabbing or shooting more likely). If another party (KKK etc) had wanted to make a statement about morality, they would have made that known- it would have been obvious.
I talked with my mother and few family members that were alive at the time about this, and we all came to the conclusion that it is possible she could have been a lesbian but even if she were, that most likely had no bearing on the murder. Also, no one has ever said anything that remotely supports this theory (or the embezzlement theory).
The accepted theory within the family about the murders is that there was a nearby monastery known at the time for housing the mentally insane as monks. There were reports of men dressed like monks traveling on foot nearby at the time of the murder. It was believed that this may have been a robbery/rape attempt by the monks that escalated into murder. (I have not been able to confirm that a monastery really existed in that area at the time. This may be entirely made up).
After a few years, the murder (and the fact that it remained unsolved) became something too painful to talk about. My grandmother and her sisters would occasionally recall things if pressed, but these stories were the reflections of people who were children/teenagers at the time. Who knows what else the adults knew that is now lost to history? (i.e. the embezzlement/lesbian theories).
Whatever happened, this murder had reverberating effects on my family. Even now, nearly 100 years later, we would still like closure. Even if the family no longer talked about it, it was never far from their minds; my mother, for instance, was named in memory of Louise. I think it's remarkable that an unsolved murder can affect generations of a family.