, 1891-06-07
~SARFORD'S SCHEMES.
History of the Downfall of
the Barring Brothers.
A Yankee Drummer at the
Bottom of IL.
Corruption and Bribery in the
Argentine Republic.

NEW loRE, June CAS- soon as the
collapse of Barring Brothers was an
nounced the New York World sent a
staff correspondent to Argentine Repub-
lie to inquire into the investments which
precipitated the failure. The correspon-
dent made a thorough investigation and
lowing how Charles IL. Sanford, a
liukee drummer tor the sale of pills and
tilct preparations, first secured a mem
bershIp in the American firm Of S. b.
Hale & Co. in Buenos Ayres, and after
m,kILg 1000, 900 by a 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. Twenty FIVE years ago
Sanford was on the east coast of South
Africa aud Travelled as a drum mer for a
New York firm dealing in drugs and
chemicals. The firm filled and be turned
his attention to the firm OF s. b. Hale x
Co, whose members were about to retire.
He used the maternal love of Mrs. Pear
son, the daughter of Samuel Hale and
wife of John X. Pearson, as a lever to
iurther his interests.
lie argued that the glories of the old
house of Hale & Co. might be revived
aud in the operations there was a brilliant
iuture for Mrs Pearson's sons. The am
bilious hopes thus instIlled in the lady's
mind found cooperation In the minds of
other feminine members of the family
l and, although Pearson demonstrated. the
house was continued, with Sanford as one
\ Of the partners. He obtained full control
and engaged in foJlhardy enterprises
|, which would have ended In ruin but for
the private fortunes of Hale & Pearson.
Then came the stroke of the Yankees
I lie.
After the revolution the provincial COY
erament found it necessary to consolidate
the debt, In order to accomplish this
purpose, outstanding loans had to he
taken up. including the popular loan"
held by Hale & Go. The real ability
which Sanford possessed now became APP
parent. He intrigued with the govern.
ment 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
AAN government III IdptTt huu tue salts
OF Hale 4 Co. were cleared of crrtificates
which had est the firm many anxious
moments and slcepless nights The Eu-
ropean loans we're repaid in gold and the
profit which ensued solely by reason of
good luck and the parity OF gold and
paper turned in a profit OF upward OF
$1,000. 900.
Shortly after Sanford went to London
where he besieged Lord Revelstoke. the
head OF the firm of Barring Brothers.
Sanford talked to Revelstoke about the
extraordinary resources of Argentine and
the unbounded prospects of the country.
When Sanford departed from London
carrying with him the confidence and adj
mjratiOn OF Lord RevelAtokc, and with
the millions Of the Barring bank behind
him to spend aud invest, a universe of
chances was revealed to his triumphant
vision.
The correspondent relates in detail the
story of the Investment OF the Barring
gold by Sanford. First he was Obliged to
subsidize the government officials to obtain
a great water works contract. The estim,
ated cost OF the entire works, on which
intel est was to he allowed, was $50 5OO.-
900 in gold. The price OF the concession
10 Barring Bros through Hale x Co, was
S2l 900, 900 in enid, payable 10 the min.
lster OF tlnance IN three installments.
This was the public price, but nothing is
conceded from the government 10 Ar
genuine without a price. Officials, from
the president down to ~jlnitOrs in public
Offices, expect a consideration, and a
greater coup was never accomplished in
this delecrable capital, where bribery. cor.
rupiion and fraud thrive as they rarely dc
elsewhere.
In order to secure the great contract,
Sanford was compelled TO bid high and
the success he attained placed him on a
pinnacle, toward the apex OF which the less
fortunate operators gazed with ewes
Taught with admiration. Juarez Celmau
Was the chief executive OF Argentine He
received upward of $500, 900 for his fee
In granting the concession. An additions.
sum of 500, 900 vas also paid to the presi
dent, if the statements of the same
responsible men are accurate. Minister
Of the Interior Wild received $40O, OO0
for his share. 1t proved a difficult task
Tor the correspondent to trace the entire
disposition of the Barring corruption fund,
but the belief is current that nearly 49,
WO,OO0 was spent in ''prelimiuaries.
Sanford is popularity credited with Sc
curing personal commissions" which
put him high above water. The govern.
lients liability to Barring Bros. on this
single enterprise is nearly $50, 600. 900
Their losses from this water works invest,
nent will not be as great, pro~poTtinnately,
IS In purchases Of bonds aud other nlouey
s%curlties. There are extensive invest
nentS of their money here which no on,
outside the confidential circles of tn,
louse's employees ami those Of theil
AGENTS can describe.
Notwithstanding the difficulties mel