The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-06-07
THE RUIN OF Barring.
Brought About by a Smart
American Drummer.
CORRUPT ARGENTINE RULERS.
An Expert Briber OF the Government
Induced Engiishmsn to Invest
Enormous Sums.

lapse of Barring Bros. was announced, the
New York World sent stan correspond
ent to the Argentine Republic to INQUIRE
into the investments which precipitated
the failure. The correspondent made a
thorough investigation, and his report
makes remarkable story, showing how
Charles n. Sanford, Yankee drummer
for the sale of pills and toilet preparations,
first secured membership in the American
firm of s. B. Hale & Co., in Buenos Ayres,
and after making 81 900 by financial
coup. went to London and won the conf
dence of Reyelstoke, head of the Barring
firm, thence returning to Argentine and
investing untold millions of British gold
iu doubtful enterprises.
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. The
firm failed, and he turned his attention to
the firm of s. B. Hale Il Co., whose men,
bers were about to retire. He used the
maternal love of Mrs. Pearson, daughter
of Samuel Hale and wife Of John r. Pear
son, as lever to further his interests He
argued that the glories of the old house of
Hale d Co. might be revived and in its
operation there was brilliant future for
Mrs. Pearson's sons. The ambitious
hopes thus instilled in the lady's mind
found cooperation in the minds of the
other feminine members of the family,
and although Pearson demonstrated,
the house was continued with San
ford as one of the partners.
He obtained full control and engaged in
foolhardy enterprise which would have
ended in ruin but for the private fortunes
of Hale and Pearson. Then came the
stroke of the Yankees life. After the
revolution the provincial government
found it necessary to consolidate the debt.
In order to accomplish this purpose the
outstanding loans had to be taken up, in
Guiding the popular loan" held by Hale
& Co. The real ability which San
ford possessed now became apparent.
He intrigued with the government
in behalf of the popular loan,"
and it is current here that he
subsidized certain officials. 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 GER
tifcates which had cost the firm MANY
anxious moments and sleepless nights.
The European loans were repaid in gold,
and the profit which ensued, solely by
reason Of good luck and the parity of gold
and paper, turned in profit of upward of
Zoo, 900.
Shortly after Sanford went to London.
where he besieged Lord Revelstoke, head
of the firm of Barring Bros. Sanford
talked to Reyelstoke about the extraor-
binary resources OF Argentine and the un-
bounded prospects Of the country, When
Sanford departed from London, carrying
with him the confidence and admiration
Of Revelstoke, and with the millions OF the
Barring bank behind him to spend and in
vest, the greatest Of chances was revealed
to his triumphant vision.
The correspondent relates in detail the
story Of the investment Of Barring gold by
Sanford. First he was obliged to subsi-l
die government officials to obtain the
great water-works contract. The estis
mated cost of the entire works on which
interest was to be allowed was $365, 000, 900
in gold. The price of the concession to
Barring Bros, through Hale & Co., was
$21, 600 600 in gold, payable to the minister
of finance in three installments. This was
the public price, but nothing is conceded
from the government in Argen tine without
price. The officials, from president down
to the janitors of the public offices, expect
consideration, and a greater coup was
never accomplished in this delectable
capital where bribery, corruption and
frauds thrive as they rarely do elsewhere.
In order to secure the great contract San
ford was compelled to bid high, and the
success he attained placed him on pima
Gle toward the apex of which less fortu-
nate operators gazed with eyes fraught
with admiration.
JuareZ Celman was chief executive of
Argentine. He received reward of
100000 for his "fee" in granting the con-
cession. An additional sum of 100000
was also paid to the president, if the state
naents of some responsible men are accu-
rate. Minister of the Interior Wild re-
ceived 100000 for his share. 1t proved a
difficult task for the correspondent to
trace the entire disposition of the
Barring corruption fund, but belief is
current that nearly sS,o0o.0oo was spent
In 'prellminaries." Sanford is popularity
credited with securing personal com
missions" which put him high above
water. The governments liability to the
Barring Bros. on this single enterprise
Is nearly $30,000.000. Their losses from
this water-works investment will not be as
great proportionately as in the purchase
of bonds and other money securi.
ties. There are extensive investments
OF their money which no one
outside confidential circles of the house,s
employees and those of their agents can
describe. Notwithstanding the difficulties
met with, the correspondent learned that
amounts ranging from S. OOe, 900 tn twice
or three times that amount were obtained
by the various provinces for .'internal i'm.
provements. One of the loans to Cordoba.
the correspondent says, is larger than the
entire province is worth. The Barinss
have large investments in railroad bonds.
but these will yield fair return In time.