Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-06-07
BARINGS AND DOODLE.
How Speculation in the Argentine
Wrought the Firms Ruin.
AYANKEEDRUMMER THEIR AGENT.
Brides of Hundreds of Thousands to the
President and others
GIVEN FOR GOVERNMENT CONTRACTS

the New York World sent staff correspond
entf to the Argentine Republic to inquire
into the investments which precipitated the
failure. The correspondent made through
investigation, and his report makes re-
markable story, showing how Charles II.
Sanford, a 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 ,0O0. 900 by single financial coup,
went to London and won the confidence of
Lord Revelstoke, head of the Barring firm,
thence returning to Argentine and investing
untold millions of Barring gold in doubtful
enterprises and securities.
Sanford's Career as Drummer.
Twenty-Five years ago Sanford was on the
east coast of South America, and travelled
as drummer for New York firm dealing
in drugs and chemicals. This firm failed,
and he turned his attention 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
the wife of John R. Pearson, as a lever to
further his interests. He argued that the
glories of the old house of Hale & Co. might
be revived, and that in its operations there
was a brilliant future for Mrs, Pearson's
sons. Ambitious hopes, thus instilled in
the lady's mind, found cooperation in the
minds of the other feminine members of the
family, and although Mr.. Pearson remon-
strated, the house Of Samuel B. Hale & Co.
was continued, with Lanman & Kemp's
quondam pill drummer, Sanford, as one of
the partners.
Sanford obtained control and engaged in
foolhardy enterprises which would have
ended in ruin but for the private fortunes of
Hale and Pearson. Then came the stroke of
the Yankees life, thus described:
Sanford Finds His Opportunity.
After the revolution the Provincial Gov
ernment found it necessary to consolidate
the debt. In order to accomplish this pur-
pose the outstanding loans had to be taken
up, including the popular loan held by
Hale & Co. The ability which Sanford
possessed now became apparent. Sanford
counted 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 behalf of the popular loan,'' and it is
current here that he Subsidized certain
officials, whose favor was useful to the reali-
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
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 81, ,oo0, 900.
He Wins Lord ReveIstoke's Confidence.
Shortly after Sanford went to London,
where he beseiged Lord Revelstoke, head of
the firm of Barring Bros. Sanford talked
to Revelstoke about the extraordinary re-
sources Of the. Argentine. Soon the head
Barring was heard to say that Mr. Sanford
was the cleverest man he had ever met.
When Sanford departed from London,
carrying with him the confidence and ad-
miration 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.
The correspondent then relates in detail
the story Of the investment of Barring gold
by Sanford. First he was obliged to subsi-
dize- Government officials to obtain the
great water works contract. The estimated
cost of the entire works on which interest
was to be allowed was S36, SOC, 900 in gold.
The price of the concession to Barring Bros. .
and Trusbale & Co. was S21, 900, 900 gold,
payable to the Minister of Finance in three
instalments.
The Reign Of Doodle in the Argentine.
This was the public price, but there is an
other side to the business. Nothing is Con-
ceded from the Government in Argentine
without price. As has been described in
the correspondence, the officials, from the
President down to the janitors in the public
Offices, expect consideration for their serv-
ices in addition to their, regular stipend.
The procural of the concession was OBJ
tanned, as was previously mentioned, by
Charles III. Sanford, and greater coup was
never accomplished in this delectable cap
ital, where bribery, corruption and fraud
thrive as they rarely do elsewhere. In
order to secure the great contract, Sanford
was compelled to bid high, and the success
that he obtained placed him on a pinnacle.
j Juarez Celman was the Chief Executive of
the Argentine Republic. He was ripe for
Doodle before he had warmed the Presi-
dents chair, and at the time the concession
was granted Barring Bros, through Sanford,
his need of money was great
Minister of the Interior Also Corrupt.
DR.. Wild, another of the gang of sharpers
who formed the Doodle ring of the Argen-
tine, was Minister of the Interior. To these
worthless Sanford addressed himself, and |
their favor securedto him the price Celman /
received upward of $500,O0O for his '1fee''
in granting the concession. The additional |
sum of $100, 900 was also paid to the Presi- |
dent, if the statements of some of the most !
are accurate. The Minister of |
the Interior received $500, 900 for his share
of the deal. ~ ~
1t proved difficult task for this cor
to trace the entire disposition of I
the Barring corruption, fund used in the |
water works deal The belief is current |
here that nearly $3,O00, 900 was spent in. the
"preliminaries, :" as the, expression runs in
Buenos Ayres. Sanford is popularity cred- |
tied with securing personal cDmInissions |
which put him high above water in his
course down the financial stream.
Millions In sanford's Hands.
Having secured this contract, Barring |
Bros forwarded to Sanford two install. |
ments of 81 ,O0O, 900 each, and third of like |
amount will fall due this summer. Other |
sums were advanced at various times, until |
now the correspondent estimates the Gov
liability to Barring Bros, ON
this single enterprise at nearly $50, ,000, 900.
The losses of the Barings from their
water works investment will not be as great
as in their purchases of
bonds and other money securities. There
are extensive investments of their money
here which no one, outside the confidential
circles of the house employees and those of
their agents, can describe. Notwithstand- /
ing these difficulties the correspondent
learns that amounts ranging from IS, ,O00, 900
TO twice or three times that amount. were
obtained by various prices for internal inn