The Detroit times., 1912-05-25
HOW FORMER PEASANT
BOY MADE COFFEE POT
YIELD VAST FORTUNE
Herman Sielcken Planned and
Executed Coup That Involved
Whole Nations
TOLL PUT AT $200,000,000
Writer Says Worlds Market Is
Now In Hands of the
Rothschilds

NEW 1Ohh, May zo.-SOme ~
years ago a German peasant boy left
his home on the edge of the Black
Forest and came to America. He
landed In New York almost penni-
less.
The. other day this same German
peasant boy. housed in a palatial suite
in the Waldorf-Astoria, was served
by the United States government in
pursuance of trust-busting suit.
Meanwhile this German peasant
boy had taken toll to the tune OF $780,
100000 from the American coffee pot.
Every American housewife who brew
ed coffee this morning paid two prices
for the berry, thanks to this same Ger
man peasant boy.
For this boy is Hermann Sielcken,
and his was the brain that carried out
the "Valorization Coffee Plan" that
has finally put the worlds coffee mar
ket wholly in the hands of the Roths-
childs, making it optional with few
European bankers whether we pay
two, three or four prices for our cof-
fee.
Has Romantic Life Story.
The story OF Hermann Sielcken,
and of hom he came to America a pen
niless boy and lived to have finger
in the purse of every American who
drinks coffee, reads like some fantas-
tic romance. Robert Sloss tells this
story for the first time in the current
issue of the Worlds. Work, published
today.
He tells how Seilcken landed here
without even trade, worked at odd
jobs from New York to San Francisco
and back, became a drummer for a
hardware firm, went TO South Amer.
lea to sell saws and presently became
member OF the firm. How that
firm. Crossman and Sielcken, as a re-
suit of what the latter saw ia Brazil,
entered the wholesale coffee market,
Ducked Arbuckle Brothers and won
out, aud how Sielcken, enormously
rich built hi ma great villa at Baden.
Baden and retired.
That was in the early nineties.
Then came the Brazilian coffee
boom. Sac Paulo planters, intoxicat-
ed with prosperity, dropped every
thing else and planted coffee trees
Presently the new trees came into
bearing and the market was glutted
The price fell from II cents to 5. The
planters muttered and blamed teh gov
ernment-threatened revolution If the
government didn't buy the surplus
coffee.
Then, in August, 1906, a Brazilian
commissioner having appealed fruit
lessly TO all the big European bankers,
including the Rothschilds, came 10 the
villa of Hermann Sielcken at Baden
Baden.
We'll, just what do you want me
TO do?" asked Sielcken.
we want you to finance for us FIVE
to eight million bags Of coffee" said
the commissioner.
Sielcken saw what II meant, that II
would lift half the worlds production
Of coffee out OF the market, that 1t
would boost the price OF coffee, nigh.
even double 1t. A fine adventure in
finance to crown an adventurous life.
He offered to take care of 80 per
cent on a value of cents per pound
Hard terms, but they were the best
the commissioner could get.
Sielcken went back to America and
lined up Arbuckle Brothers and the
other big coffee merchants and got
the backing Of ]. Pierpont Morgan
and the big New York banks. They
began withdrawing coffee from the
market They took 1857 900 bays in
1906-7, but were swamped by record
breaking crop of 20,000,000 bags. The
price hung at 8 cents. The next year
things were but little better.
Then the American merchants got
coul feet. They were afraid they had
bitten off more than they could chaw.
SO Sielcken got busy again. He per.
suaded the Rothschilds to guarantee
the whole deal. They did--on these
conditions:
That Brazil forbid the planting OF
coffee trees and hold Sac Paulo ex-
ports down TO not more than 10000
900 bags per year.
Which Brazil agreed to. Then
Sielcken organized what he called a
"valorization committee" which has
held and still holds the coffee busi-
ness of the world in its fingers. This
committee sees that Brazil carried
out its contract.
Also the committee takes charge OF
all coffee an importing ports and
when. the market shows signs OF going
down cargoes OF coffee are dumped
stiffen. That's why there are near
100000 bags of coffee in warehouse
In New York today.
This valorization committee con-
sists OF Hermann Sielcken. the New
York Dock Co, Bruno Schroeder. of
j. Henry Schroeder 4 Co., London,
Eduardo Bunge. OF Belgium, NJ Le
Visompte Des Touches, of Havne.
France; DR.. Paulo Da Silva, Pardo,
and Theodore Willie, OF Brazil, and the
Societe Generate OF Paris.