Los Angeles herald., 1891-06-07
A Pill Peddler's Coup in
South America.
How Smart Yankee Worked
a Gigantic Scheme.
Backed by British Gold He Secured
Tremendous Pull.
Inside History of the Transactions That
Broke Barring Bros. and Shook
the Financial World.
Associated Press Dispatches.

nounced the New York World sent a
staff correspondent to the Argentine
Republic to inquire into the invest
ments which precipitated the failure.
The correspondent made thorough in
vestigation, and his report makes re-
markable story, showing how Charles
III. Sanford, Yankee drummer for the
sale of pills and toilet preparations,
first secured membership in the Ameri-
can firm of S. B. Hale & Co., in Buenos
Ayres, and after making $1,000,000 by a
financial coup, went to London and won
the confidence of Lord Revelstok, head
of the Barring firm; then returning to
Argentine and investing untold millions
of British gold in doubtful ente rprises
and securities.
TWENTY-FIVE YEARS AGO
Sanford was on the east coast of South
America and travelled as drummer for
a New York firm, dealing in drugs and
chemicals. The firm failed and he turn
ed 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 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 in its opera
tions 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 other
feminine members of the family, and
although Pearson demonstrated, the
house was continued, and with Sanford
as one of the partners. He obtained
full control and engaged in foolhardy en-
terprises 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 con-
solidate the public debt. In order to
accomplish this purpose, outstanding
loans had to be taken up, including the
popular loan' held by Hale & Co.
The real ability which Sanford 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 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,
amounted to upwards of 81 900, 900.
Shortly after this Sanford went to
London, where he besieged Lord Revel-
stok, head of the firm of Barring Bros.
Sanford talked to Revelstok about the
extraordinary resources of Argentine
and the unbounded prospects of the
country. When Sanford departed from
London, carrying with him the conf
dence and admiration of Lord Revelstok,
and millions of the Barring bank behind
him to spend and invest,
UNIVERSE 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
subsidize government officials to obtain
a great water works contract. The esti-
mated cost of the entire works, on which
interest was to DE allowed, was So ,500,-
900 gold. The price of the concession to
Barring Bros, through Hale & Co., was
$21 ,000, 900 gold, payable to the minister
of finance in three installments. This
was the public price, but nothing is con-
ceded from the government of Argentine
without a secret price. The officials
from the president down to
the janitors of the public offices,
expect consideration, and
A GREATER CoUPwA NEVER MADE
in this delectable capital, where corrup-
tion and fraud thrive as they rarely do
elsewhere. In order to secure the great
contract Sanford was compelled to bid
high, and the success he attained placed
him on pinnacle toward the apex of
which less fortunate operators gazed
with eyes fraught with admiration.
Juarez Celman was chief executive of
Argentine. He received upward of $780,
600 for his "fee" in granting the conces-
sions. The additional sum of 100000
was also paid to the president, if the
statements of some responsible men are
accurate. Minister of the Interior Weld
received 100000 for his share. 1t
proved difficult task for the correspon-
dent to trace the entire disposition OF the
Barring corruption fund, but the belief
is current that nearly 100000 was
spent in preliminary" work. Sanford
is popularity credited with securing per-
sonal commissions" which
PUT HIM ABOVE HIGH WATER.
The governments liability to Barring
Brothers on this single enterprise is
nearly $30,OO0,OO0. Their losses from
this water works investment will not be
as great, prcportionately as in the pur-
chase of bonds and other money securi-
ties. There are extensive investments
of their money here, which no one out
side the confidential circles OF the
houses employees and those OF their
agents can describe. Notwithstanding
the difficulties met with, the cores
pondent learned that an amount rang
ing from $5.O00,000 to twice or three
times that amount, was obtained from
various provinces, for internal i'm
One of these loans to
the correspondent says, is
larger than the entire province is worth.
The Barings also have large investments
in railroad bonds, but these will yield
fair returns in time.