The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1891-06-12
Sequel of the Earrings Failure,

NEW YORK, June S.-As soon as the
collapse of Barring Bros. was announced
the New York World sent staff cor
respondent to the Argentine Republic
to inquire into the investments which
precipitated the failure. The cores
pondent, after thorough investigation,
made remarkable story, showing how
Charles II. SANFORD, a Yankee drummer
for the sale of pills and toilet prepare
tiOns, first secured a membership in
the American firm of S. B. Hale & Co.
in BeunOs Ayres, and after making
s., 100000 by single financial coup,
went to London, won the confidence of
Lord Revelstoke, head of the Barring
firm, thence returning to the Argentine
/ he invested several millions of the Bar
ings' gold in doubtful enterprises and
securities.
! Twenty-Five years ago Sanford was on
the east coast of South America and
travelled as a drummer for New York
firm, dealing in drugs and chemicals.
This firm failed and he turned his at
tention to the firm of S. B. Hale & Co.,
whose members were about to retire.
He used the maternal love of Mrs.
Pearson, daughter of Samuel Hale. and
wife of John Z. Pearson, as lever to
further his interests, and finally the
house of Samuel B. Hale & Co. was con-
tinued with the quondam pill drum
mer, Sanford, as one of the partners.
Sanford obtained full control and en-
gagged in fool hardy enterprises which
would have ended in ruin, but for the
private fortunes of Hale & Pearson.
Then came the stroke of the Yam
lynn he Al
provincial government found it neces-
sary to consolidate its debt. In order
to accomplish this purpose, outstanding
loans had to be taken I'D, including the
popular" loan held by Hale & Co.
Sanford intrigued with the govern
ment in behalf of the popular loan"
and it is current here that he ''subsi-
died" certain officials whose favor was
useful to the realization of his hopes.
Gold and paper were now at par. The
loan was taken up by the government
in paper and the safes OF Hale & Co.
were cleared of certificates which cost
the firm many anxious moments. The
European loans wsre repaid in gold and
the profit which ensued solely by reason
of good luck and parity of gold turned
in a profit sof upward of 81, 200, 600 |
Shortly after Sanford went to England. |
besieged Lord RevelstOke of the firm of !
Barring Bros. and won him over. When |
Sanford departed from London he car
ried with him the confidence an admir- !
alton OF Lord RevelstOke. and with 81
800, 900 of the Earrings bank behind him |
to spend and invest in chances.
The correspondent then relates in de-
tail the story of the investment of Bar
tngs' gold by Sanford. First, he was
obliged to subsidiZe the government |
officials to obtain the great water works |
contract. The estimated cost of the
works on which:the interest to be al
lowed was S36,500.OO0 in gold. The
price OF concessions to Barring Bros. |
through S. B. Hale !, Co., was S21. OOO,-
100 in gold payable to the minister of /
finance in three installments, This
vas the public price, but there is
another side to the business and it
orms dark chapter in the record of
Barring Bros. bank. Nothing is con-
;eded from the government in Argen-
line without the price, from the presi-
lent down to the ianitors in public