I'm not familiar with S124 towing capacities. I guess that depends on the definition of "decent size trailer"

Here's an old thread by a fellow member with a 1.25" hitch on his sedan (diesel)

http://www.peachparts.com/shopforum/diesel-discussion/323832-91-124-hitch-options-how.html

E-Trailer states the same Curt hitch model ID# 11816:

http://www.etrailer.com/hitch-1989_Mercedes-Benz_E-Class.htm?style=300+Series+Sedan,+including+4Matic

Thank you! They are not original, but instead are aftermarket 15" bundt wheels like Ashedd stated:

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