The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-06-07
A YANKEE FINANCIER
How the Earrings Came to Invest
in Argentine Securities.
C.H. SANFORD. A VENDOR OF PILLS
Got into Lord Revelstoke's Good Graces and
Was Furnished Money with Which to
Secure Contracts Bribery Used

lapse of Barring Bros. was announced the
New York World sent staff correspondent
to the Argentine Republic to inquire into
the investments which precipitated the
failure. The correspondent made thor
ough investigation and his report makes a
remarkable story, showing how Charles ii.
Sanford, Yankee drummer for the sale
Of pills and toilet preparations, first Sc
cured membership in the American nrm OF
3 Il. Hale * Co, in Buenos Ayres, and
after making 100000 by a financial
coup, went to London and won the conf
dence of Bevelstoke, the head of the Bar
ing firm, thence returning to the Argen-
tine Republic and investigating the untold
story of making gold in doubtful enter
prises and securities.
Twenty-Five years ago Sanford was on
the east coast OF South America and trav-
eled as drummer for a New York firm,
dealing in drugs and chemicals The firm
failed and he turned his attention 10 the
firm of ). Il. Hale u Co., whose members
were about to retire. He used the mater
nal love OF Mrs. Pearson, daughter OF
Samuel Hale, and wife OF John T. Pearson,
as lever 10 further his interests. He ar
.
Hale * Co. might be revived and in It's
operations there was a brilliant future
for Mrs. Pearson's sons. The ambitious
hopes thus instilled in the lady's mind
found CO. deportation in the minds OF other
feminine members of the family ana al
though Pearson demonstrated, the house
was continued with Sanford as one of the
partners. He obtained full control and en-
gagged IN foolhsrdy enterprises which would
have ended in ruin but for the private for
tunes Of Hall and Pearson. Then came the
stroke OF the Yankees life. After the re-
volution the provincial government
found it necessary to consol:-
date the deot In order TO accomplish
this purpose outstanding loans had 10 be
taken up. including the popular loan"
held by Hale x Co. the real ability which
Sanford possessed now became apparent.
He intrigued with the governmental behalf
of the popular loan' and il 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 the certificates which had cost
the firm many anxious moments
and sieepless 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 profits of upward of $1,000, 000
Shortly after Sanford went to London.
where he besieged Lord Revelstoke, head
OF the firm of Barring Bros. Sanford talked
TO Revelstoke about the extraordinary re-
sources of the Argentine republic AMI the
unbounGed prospects of the country. When
Sanford departed from London, carrying
with him the confidence and admiration of
Lord Revelstoke, and with the millions of
the Barring bank behind him TO
spend and invest, universe of
chances was revealed to his triumphant
vision.
Tue correspondent relates in detail the
story OF the investment of Baring's gold
by Sanford. First ne was obliged 10 sub
sidize the government officials to obtain
the great waterworks contract. 1t is esti-
mated the cost of the entire works on
which interest was to be allowed, was
$50, 500, 900 gold. The price of the concession
TO Barring Bros, through Hale * Co.. was
81 900, 600 gold, payable to the minister of
finance in three installments. This was
the public price. but nothing is conceded
from the government IN the Argentine
republic without price. The officials,
from the president down to the
ianitors of public offices, expect
and a greater coup was
never accomplished in this delectable CAPT
tai, where bribery, corruption and fraud
thrive as they rarely do elsewhere. In
was compelled to bid high. and the success
be attained placed him on a pinnacle, to-
ward the apex OF which less fortunate OPP
orators gaZed with eyes fraught with
JuareZ Celman was the chief
executive of the Argentine republic. He
received upwards of S5Oe,0OO for
his "fee'' in granting the conses-
sion. An additional sum of 800 900
was also paid 10 the president if the state
ments of some responsible men are accur-
ate Minister of the Interior Wild received
s30O, 0C0 for his share. 1t proved difficult
task for the correspondent to trace the en-
tire disposition OF the Barring corruption
fund, but a belief is current that nearly
s., OO0 900 was spent in ''preliminaries."
Sanford is popularity credited with secur-
ing personal commissions" which put him
high above water.
The governments liabilities to Barring
Bros. on this single enterprise is nearly
800 0O0, 600. Their losses from this water
works investment will not be as great, !
as in their purchases of
bonds and other securities. There are ex-
tensive investments of their money here,
which no one outside of the confidential
circles of the houses employees and those
Of their agents can describe. Notwith- |
standing the difficulties met with, |
the correspondent learned that
ranging from S5,0O0,000 to
twice or three times that amount were Oh
tainable by various provinces for internal
One of these loans to
Cordoba, the correspondent says, is larger
than the entire province is worth. Earrings
also have large investments IN railroad
bonds, but these will yield fair returns in
time.