The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-06-07
FINANCE EXTRAORDINARY.
marvellous Manner In which Barring Bros
Lost Millions In Argentine.

Lost Millions In Argentine.
New YoRK, June Gas soon as the COL
lapse of Barring Brothers was announced,
the New York World sent a staff corre-
spondent to the Argentine Republic to in
quire into Investments which precipitated
the failure. The correspondent made n
thorough investigation and his report makes
u remarkable story, showing how Charles
IL. Stanford II Yankee drummer for tho
sale of pills and toilet preparations, first
secured membership in the American firm
of Il. b. Hale d. Co.. in Beunos Ayres, and
after making s1,000,0O0 by financial coup,
went to London and won the confidence OF
Revelstoke, head Of the Barring firm, thence
returning to Argentine and invested
untold millions of gold in doubtful
enterprises and securities. Twenty five
years ago Sanford was on the east coast of
South America, and travelled as Il 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 ~
Co., whose members were about to retire.
lie used the maternal love of Mrs. Pearson,
daughter of Samuel Hale and wife of John
Is. Pearson, us lever to further his inter
ests He argued that the glories Of the old
house of Hale d. Go. might be revived. and
in its operations there was brilliant future
hopes thus instilled in the lndy's mind
found cooperation in the minds of
other feminine members of the family
and although Pearson demonstrated, the
house was continued with Sanford as one
OF the partners. He obtained full control
and engaged III foolhardy enterprises which
would have ended in ruin but for the pri-
vate fortunes of Hale and Pearson. Then
came the stroke of the Yankees life. Af-
ter the revolution the provincial govern
ment found it, necessary to consolidate its
debt. In order to accomplish this purpose
Guiding the popular loan.'' held by Hale g.
Go. The real ability which Sanford pos
sessed now became apparent. He intrigued
with the government III 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
| the certificates which had cost the firm
| many anxious moments and sleepless nights.
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 $l,0OO,000.
Shortly after Sanford went to London,
where he beseiged Lord Revelstoke, head
| of the firm of Barring Brothers. Sanford
| talked to Revelstoke about the extraord
nry resources of Argentine and the
unbounded prospects of the country.
When Sanford departed from Lon
| dence and admiration of Lord Revel-
stoke. and with the millions of the Barring
! bank behind him to spend and invest, a
universe of chances was revealed to his
triumphant vision. The correspondent re-
| lates in detail the story of the investment
| of Barring gold by Sanford. First, he was
Obliged to subsidize government officials to
obtain great waterworks contract. The
estimated cost of the entire work on which
interest was to be allowed was 1886, 500, OOC
in gold. The pr ice of the concession to
Barring Bros, through Hale d. Co.. was
of finance in three installments. This
was the public price. but nothing is
fsbns'sdsd from the, government in Areen-
bae without a price. Officials. from presi--
dent down to janitors in public offices, ex-
pect a consideration. and greater coup
was never accomplished III 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 sue
cess he attained placed him on the pima
Gle, toward the apex Of which less FORUM
ate operators gazed with eyes fraught with
admiration.
| Juarez Celman WAS chief executive of ar
gentine. He received a reward of 100000
| for his fee in granting the concession.
An additional sum of 100000 was
also paid to the president, if the
statements Of some responsible men are
| accurate. Minister of the Interior Wild
| received 100000 for his share. 1t proved
| a difficult task for the CORRESPONDENT to trace
the entire disposition of the Barring corrup-
ton fund, but belief is current that nearly
100000 was spent in 'preliminaries. :"
Sanford is credited with securing personal
Commissions which put him high above
the water. The governments liability to
Barring Brothers on this single enterprise is
nearly $3O,O0OO0O. Their losses from
this waterworks investment will not
be as great proportionately, as in
purchases of bonds and other money
securities. There are reextensive investments
of their money which no one outside the
confidential circles of the houses of en-
ployes and those of their agents can de-.
scribe. Notwithstanding the difficulties
met with the correspondent learned that
amounts ranging from $5,0oo,CO) to twice
| or three times that amount were obtained
by various provinces for ''internal improve
ments." One OF these loans 'to Cordoba,
the correspondent says, is larger than the
entire province is worth. The Barings also
have large investments in railroad bonds.
II thnSa fuir ,at,