St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-06-07
SOARING MIR. SANFORD
4 "Dead-Hot" Yankee Drum
mer and His Stupendous
Gall.
With Only His Face, He
Worked the Earrings for
Millions.
This Nan Was the Moving
Force in the Famous Firms
Collapse.
Truth Stranger Than Fiction
in This Tale of a Pill
Peddlep.

which precipitated the failures. Inc
correspondent made thorough investi-
CATION. and his report makes a remark
able story, showing how Charles IL.
Sanford, Yankee drummer for the
sale of pills and toilet preparations,
first secured membership in the Ameri-
can firm of S. B. Hale Il Co., in Buenos
Ayres, and, after making 100000 by
a single financial coup, went to London
and won the confidence of
Lord RevelStoke, head of the
Barring firm, thence returning
to Argentine and investing millions of
of Barring gold in doubtful enterprises
and securities. Twenty-Five years ago
Sanford was on the East coast of South
America, and travelling as drummer
for New York firm dealing in drugs
and chemicals. This firm failed, and he
turned his attention to the firm of S. Z.
Hale & Co., whose members were about
TO retire. Heused the maternal love of
Mrs. Pearson, daughter of Samuel Hale.
and the wife of John p. Pearson, TO fur
Their his interests. He argued that the
glories of the old house of Hale d Co.
might be revived, and that in its opera
tons there was brilliant future for
Mrs. PearSOn'S sons.
The Ambitious Hopes
thus instilled in the lady'ssmind found
cooperation in the minds of other FEM
mime members of the family and, al
though Mr.. Pearson demonstrated, the
house of Samuel B. Hale IL Co. was
continued, with Layman IL Kemp's
Quondam pill-drummer, Sanford, as one
Of the partners. Sanford obtained full
control. and engaged in foolhardy ell
terpriSes which would have ended in
ruin but for the private fortunes of
Hale IL Pearson. Then came the stroke
of the Yankees life. thus described:
After the revolution the provincial gov
eminent found il necessary to consol-
idate the debt. In order to ac-
complish this purpose the out
standing loans had to be taken
by Hale & Co. The real ability which
Sanford possessed now became APP
parent. Through no anticipatiOnS of
his own the loan had failed and the per-
Sonal resources of the Pearson family
alone saved the house. Sanford count
ed on an immediate sale of the bonds,
and the failure of the public to buy was
a crushing blow to his pride. Sanford
intrigued with the government in be-
half of the popular loan," and it is cur
rent here that he ''SubsidIZed" 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 govern
ment in paper, and the safes of Hale &
Co. were cleared of certificates which
cost the firm many anxious moments
and sleeplesS nights. The European
loans were repaid i'll gold, and the pro-
fit which enSued, solely by reason of
good luck and the parity of gold and
paper, turned in profit of upward of
81 100000. Shortly after Sanford went
TO London, where he besieged Lord
Revelstoke, head of the firm of Barring
Bros. Long, varied and panoramic"
was the tale the man poured
into RevelStoke's ear. Sanford
talked. to Revelstoke about the
extraordinary resources of Argent
inc and mbounded prospects of the
country. Soon the head Barring was
heard to say that Mr.. Sanford was the
eleverest man he had ever met. When
Sanford departed from London, carry
ing with him the confidence and admira-
ton of Lord RevelStoke, and with the
millions of the Barring bank behind him
to spend and invest, a universe of
vision. The correspondent then relates
in detail the story Of investment of Bar
ing gold by Sanford. First he was
obliged to subsidiZe government officials
to obtain the great water works con-
tract. This part of the story is told in
these words: 1.-The estimated cost of
the entire works, on which interest was
TO be allo we'd, was $50, 5000 600 gold. The
Price of the Concession
TO Barring Brothers, through S. B. Hale
* Co., was S2l, 100000 gold, payable to
the minister of finance in three install
ments. This was the public price, but
there is another side to the Barring
Brothers bank. Nothing is conceded
from the government in Argentine
without price. As has been described
in the correspondence, the officials,
from the president down to the jantors
in the public offices, expect considera-
tiOn for their services in addition to
their regular stipend. The procural of
The concession was obtained, as was
previously mentioned, by Charles II.
Sanford. And q greater coup was never
accomplished in this delectable capital
where bribery. corruption and fraud
thrive as they rarely do elsewhere. In
order to secure the great contract San
ford was compelled to bid high, and the
success that he attained placed him on
pinnacle toward the apex of which
the less fortunate operators of the spec
ulative market gaZed with eyes fraugh]
with admiration. JuareZ Gelman was
the chief executive of Argentine. He
was ripe for Doodle before he had
warmed the presidents chair, and at
the time the concession was granted
Barring Brothers through Sanford, his
nf Tlr
another of the
Gang of Sharpers
who formed the Doodle ring of Argen.
tine, was minister of the interior. TIC
these two worthless Sanford addressed
himself and their favor secured to him
the prize. Celman received upward OF
100000 for his fee in granting the
concession. The additional sum OF
100000 was also paid to the president
If the statements of some of the most
responsible here are accurate. The
minister of the interior received $500,
600 for his share of the deal. 1t proved
difficult task for the correspondent tC
trace the entire disposition of the Bar
ing corruption fund used in the
water works deal. The belief is
current here that nearly S3,0O0
600 was spent in the ''prelim
lnarieS," as the expression runs in
Buenos Ayres. Sanford is popularity
credited with securing personal 'com
missions, which put him high above
water in his course down the financial
stream among the brazen kettles anG
earthen pots. Having secured this con
tract, Barring Brothers forwarded t.
Sanford two installments of $1,000, 0O(
each, and third of like amount will
fall due this summer. Other sums were
advanced ut various times, until now
the correspondent estimates the govern
ments liability to Barring Brothers or
this single enterprise at nearly $4,000,
300. He continues: 1.-The
Losses of the Earrings
from their water works investment viii
not be as great proportionately as il
thoir purchases of bonds and Other
money securities. There are extensive
Investments of their money here which