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THE ARGENTINE BOOM.

MANIPULATED BY A YANKEE DRUMMER. Nkw York, June 6.—As soon as the collapao of Baring Brobhers was announced the New York World senb a staff correspondenb to the Argentine Republic to inquire into the investments which precipitated the failure. The correspondent made a thorough investigation, and his reporb makes a remarkable story, showing how Charles H. Sanford, a Yankee drummer for bhe sale of pills and toileb preparations, first secured membership in the American firm of S. B. Hale and Co. in Buenos Ayres, and after making §1,000,000 by a financial coup, wenb to London and won the confidence of Lord Revelsboke, head of bhe Baring firm, bhence returning to Argentine and investing untold millions of tho Barings' gold in doubtful enterprises and securities. " Twenby-five years ago Sanford was on the easb coaab of JSoubh America, and travelled as drummer for a New York firm dealing in drugs and chemicals. The firm failed, and he turned his attention to the firm of S. B. Hale and Co., whose members were aboub to retire. He used the maternal love of Mrs. Pearson, daughter of Samuel Hale and wife of John R. Pearson, a lever to furbher his interests. He argued thab the glories of bhe old house of Hale and Co. might be revived, and thab in iba operations there was a brillianb fubure for Mrs. Pearson's eon. Tho ambitious hopes thus instilled in the lady's mind found co-operation in bhe minds of obher feminine members of the family, and, although Pearson remonstrated, the house was continued, wibh Sanford as one of the partners. He obtained full conbrol, and engaged in foolhardy enterprises which would have ended in ruin bub for the ■ privabe forbunes of Hale and Pearson. Then came bhe sbroke of the Yankee's life. Afber the revolution bhe Provisional Governmenb found it necessary bo conaolidabe the debt. In order to accomplish this purpose, outstanding loans had to be taken up, including a " popular loan" held by Hale and Co. The real abiliby which Sanford possessed now became apparent. He intrigued with the Government in behalf of bhe " popular loan," and ib is currenb here thab he "subsidised" certain officials. Gold and paper were now at par. The loan was taken up by the Government in paper, and the safes of Hale and 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, turned in a profit of upward of $1,000,000. Shortly afber bhis Sanford wenb to London, where he besieged Lord Revelstoke, head of the firm of Baring Brobhers. Sanford talked to Revelsboke aboub the extraordinary resources of Argentine and the unbounded prospects of the counbry. When Sanford deparbed from London, carrying with him the confidence and admiration of Lord Revelstoke, and with bhe millions of the Barings' bank behind him to spend, and invest, a universe of chances was revealed to his triumphant vision. The correspondent relabes in debail the story of the investment of the Baring gold by Sanford. First he was obliged to sub sidise the Government officials to obtain a greab waberworks conbracb. The estimated cosb of the entire works on which inberesb was bo be allowed wae $36,500,000 in gold. The price of the concession to Baring Brothers, through Hale and Co., wa3 §21,000,000 in gold, payable to the Minister of Finance in three instalments. This was the public price, bub nobhing is conceded from the Government in Argentine wibhoub a price. The officials, from Presidenb down to janibors of public offices, expecb consideration, and a greater coup was never accomplished in this notorious capital, where bribery,.. corruption, and fraud bhrive as they rarely do elsewhere. In order to secure the greab conbracb Sanford was compelled to bid high, and the success he attained placed him on a pinnacle, toward the apex of which less fortunab9 operabors gazed wibh eyes fraught wibh admiration. Juarez Celman was chief executive of Argentine. He received upward of $500,000 for his "fee" in granting the concession. An additional sum of §100,000 was also paid bo the President, if the statements of some responsible men are accurabe. Minister of the Interior Wild received $300,000 for his share. It proved a difficult task for the correspondent to trace the entire disposition of the Baring corruption fund, bub belief is currenb thab nearly $3,000,000 was spent in "preliminaries." Sanford is popularly credited with securing personal commissions which pub him high above water. The Government's liability to the Baring Brothers on this single enterprise is nearly $30,000,000. Their losses from this waterworks investment will nob be as greab, proportionately, as in the purchases of bonds and other money securities. There are extensive invesbmenbs of their money here which no one outside the confidential circles of bhe house's employes and those of their agents can describe. Nobwibhsbanding bhe difficulties met wibh, the correspondenb learned thab amounts ranging from $5,000,000 to. twice or tlireo times thab amount were obtained by various provinces for "inbernal improvements." One of bhese loans to Cordoba, the correapondenb says, is larger than the entire province is worbh. The Barings also have large invesbmenbs in railroad bonds, bub bhese will yield fair reburns in time.

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https://paperspast.natlib.govt.nz/newspapers/NZH18910801.2.52.9

Bibliographic details

THE ARGENTINE BOOM., New Zealand Herald, Volume XXVIII, Issue 8634, 1 August 1891, Supplement

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888

THE ARGENTINE BOOM. New Zealand Herald, Volume XXVIII, Issue 8634, 1 August 1891, Supplement

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