John Thomas North
Encyclopedia
John Thomas North was a British
investor and businessman. North was born in Leeds
, Yorkshire
, the son of a coal merchant and a churchwarden. At the age of fifteen he was apprenticed to millwrights and engineers before working for several years as a mechanic
. He moved to Chile
in South America
where his first occupation was as a boiler riveter in Huasco
. He later moved to the Peru
vian town of Iquique
where he worked as a waterworks operator, importer and ship owner. The War of the Pacific
(1879–1883) provided North with an opportunity to purchase large numbers of bonds in the Peruvian nitrate
industry. When Chile annexed Iquique and the surrounding province of Tarapacá
the Chilean government transferred ownership of the nitrate fields to the bondholders. North was thus able to take a monopoly share of the lucrative Chilean nitrate industry for a very small initial investment, becoming known as "The King of Nitrates".
North built upon his nitrates business by expanding into further monopolies in waterworks and freight railways, but also owned several iron and coal fields. North maintained his monopolies by employing lawyers to block competing entrepreneurs both in court and the Chilean National Congress
. This was allowed by Chilean president Domingo Santa María
, but María's successor, José Manuel Balmaceda
, became concerned that Tarapacá was starting to resemble a "state within a state" and resolved to break North's monopoly. Balmaceda had to force competition reforms through against opposition in congress, amongst a series of disputes which would eventually escalate into the Chilean Civil War
of 1891 between the president and the congress.
North also had investments in the Anglo-Belgian India Rubber Company which operated a concession
in the Congo Free State
. This company was involved in the extraction and export of rubber from the state, another highly profitable business, but later became involved in abuses of human rights against those under its power. However North's finances were eventually depleted and when he died his business empire had collapsed.
, Yorkshire
on 30 January 1842, the son of a coal merchant and a churchwarden. At the age of fifteen he was apprenticed to millwrights and engineers before working for several years as a mechanic
. He moved to Chile
in South America
at the age of 23 where his first occupation was as a boiler rivet
er in Huasco
. He moved from Huasca to Iquique
in the province of Tarapacá
, which was then part of Peru
. Here North established what later became a large business empire, working as a waterworks operator, importer and ship owner.
triggered the War of the Pacific
in 1879 with Chile invading and occupying Peruvian and Bolivian land. In the course of the war, North suffered damage to his waterworks, and one of his ships was sunk. However he also befriended the Chilean Admiral
Patricio Lynch
who later supported him in his business ventures. During the war, North was assisted by two British men: Robert Harvey
, who had worked for the Peruvian government in the nitrates (saltpetre
) industry, and John Dawson, a banker. North was able to use Harvey's knowledge of the nitrates business and credit provided by Dawson to purchase nitrates bond certificates at low prices from investors who were panicked by Peru's poor military performance during the war. After the war, the Chilean government annexed Tarapacá and allowed the bond holders to take possession of the title deeds to the nitrate fields, perhaps influenced by appeals from North's friends. North thus managed to secure a large share of the Chilean nitrate industry for a very small initial investment in almost worthless bonds. The reason that the Chilean government allowed this is that it would have cost them GBP£
4 million to buy the bonds from the mainly British nitrate speculators. By allowing the speculators to start mining the Chilean government could take a share of profits via export duties without having to provide the initial capital costs to begin production of nitrates.
North left Chile and returned to the United Kingdom in order to raise credit to provide for machinery, transport and employment costs. It was there, in February 1883—still eight months before Peru officially ceded the nitrate fields to Chile—that he established the Liverpool Nitrate Company. North dispatched Robert Harvey to Chile with equipment and engineers to begin construction of the mines whilst North remained in Britain to manage the financial side of the enterprise. The mines were operation by 1884 and producing 3,000 short ton
s of nitrates per month. The company turned large profits and was able to pay dividends in excess of 20% each year until 1886 when it was liquidated by North and his partners in order to found other companies. As a result of his fantastic profits North became known as "The King Of Nitrates" and was a well known public figure in England.
Nitrates were an important source of income for the Chilean government and an increase in export duty from CLP
4 pesos per ton in 1878 to CLP 22 in 1882 resulted in revenue from nitrates increasing from CLP 6 to 25 million. This allowed the government to make cuts in both income and land tax. The reliance of Chile upon its nitrate income caused conflict between the government and the nitrate production cartel. The cartel wanted to maximise the price of nitrates by cutting production whilst the government wanted to maximise their duty income by maximising exports. The nature of the trade meant that the Chilean economy was also totally dependent on imports and exports to and from Britain. The periodic downturns in nitrate revenue caused by the cartel cutting production eventually forced the Chilean government to print more money, causing inflation to increase and the peso to devalue.
. He also owned several coal and iron fields along the Biobío River and a gasworks
at Iquique. In Britain he set up North's Navigation Collieries (1889) Ltd. in Glamorgan, south Wales, a venture which turned out to be one of his most successful. By 1920 his Welsh company employed over 6,000 miners and produced over one million tons of coal per year. The development of North's Navigation Collieries Ltd. was largely responsible for the rapid growth of Maesteg and the Llynfi Valley during the years 1890 to 1910. In addition, his nitrate business was the primary cause of the development of the towns of Iquique and Pisagua. To maintain his monopolies, North employed lawyers to block competing entrepreneurs both in court and the Chilean National Congress
. Under president Domingo Santa María
, North's monopolies went unchallenged, and Santa María's successor in 1886, José Manuel Balmaceda
, initially allowed the situation to continue. However, Balmaceda became concerned that the situation in Tarapacá was starting to resemble a "state within a state" and decided to break North's monopoly. Congress was not supportive and Balmaceda had to force through reforms to restore competition in the province. Increasing disputes between Balmaceda and Congress resulted in the outbreak of the Chilean Civil War
in 1891.
In the meantime North enjoyed the status of a famous high society
gentleman in Britain and was worth US$
10 million in 1889. He was a friend of the Prince of Wales
, later to become Edward VII
, and was described, by The New York Times
as a "lion" of the London social season. He was the owner of a 600 acres (2.4 km²) estate with extensive stables and a mansion, Avery Hill, near to Eltham in Kent
. North owned several racing horses and won several British racing trophies. North visited the United States
in July 1889 where he was described as a member of the nouveau riche
and a "Chilean Monte Cristo" because of his recent rise to fame and fortune. He became known as Colonel North as he was appointed Honorary Colonel of the Tower Hamlets Regiment of Volunteer Engineers on 25 March 1885. He regularly allowed the regiment of 250 men to camp in the gardens of his estate for three days at a time. During this time he would hold festivals for the men and the local villagers and at one of these events he challenged the Lieutenant-Colonel to a footrace and won.
North was approached by King Leopold II of Belgium
at a horse racing event to provide funds to establish a concession company
to extract rubber from the Congo Free State
. North agreed and provided GBP£
40,000 of the BEF
250,000 initial investment to set up the Anglo-Belgian India Rubber Company (ABIR) at Antwerp on 6 August 1892. ABIR had exclusive rights to all forest products from the Maringa
-Lopori
basin for 30 years and had police powers within the limits of the concession to enforce the collection of rubber as a tax. The company was initially very successful but by 1898, two years after North's death, his heirs had sold his shares in the company. The company later became infamous for human rights abuses of the inhabitants of its concession and fell into financial troubles.
Despite his varied investments across the world North's finances eventually dwindled, his decline was accelerated by the Chilean Civil War. By the time he died on 5 May 1896 his business empire had collapsed. His death occurred within half an hour of eating some oyster
s and the shells were sent for analysis but it was suspected that heart problems were the cause of death. In his will he donated his house, Kirkstall Abbey
, to the city of Leeds and made donations to Leeds Infirmary and the Yorkshire College of Science, which later became the University of Leeds
.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
investor and businessman. North was born in Leeds
Leeds
Leeds is a city and metropolitan borough in West Yorkshire, England. In 2001 Leeds' main urban subdivision had a population of 443,247, while the entire city has a population of 798,800 , making it the 30th-most populous city in the European Union.Leeds is the cultural, financial and commercial...
, Yorkshire
Yorkshire
Yorkshire is a historic county of northern England and the largest in the United Kingdom. Because of its great size in comparison to other English counties, functions have been increasingly undertaken over time by its subdivisions, which have also been subject to periodic reform...
, the son of a coal merchant and a churchwarden. At the age of fifteen he was apprenticed to millwrights and engineers before working for several years as a mechanic
Mechanic
A mechanic is a craftsman or technician who uses tools to build or repair machinery.Many mechanics are specialized in a particular field such as auto mechanics, bicycle mechanics, motorcycle mechanics, boiler mechanics, general mechanics, industrial maintenance mechanics , air conditioning and...
. He moved to Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
in South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
where his first occupation was as a boiler riveter in Huasco
Huasco, Chile
Huasco is a Chilean city and commune, in the Huasco Province, Atacama Region.The port city of Huasco is located 50 km west of Vallenar and close to the town of Huasco Bajo, which lies on the southern bank of the Huasco River and only a few km from its mouth...
. He later moved to the Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
vian town of Iquique
Iquique
Iquique is a port city and commune in northern Chile, capital of both the Iquique Province and Tarapacá Region. It lies on the Pacific coast, west of the Atacama Desert and the Pampa del Tamarugal. It had a population of 216,419 as of the 2002 census...
where he worked as a waterworks operator, importer and ship owner. The War of the Pacific
War of the Pacific
The War of the Pacific took place in western South America from 1879 through 1883. Chile fought against Bolivia and Peru. Despite cooperation among the three nations in the war against Spain, disputes soon arose over the mineral-rich Peruvian provinces of Tarapaca, Tacna, and Arica, and the...
(1879–1883) provided North with an opportunity to purchase large numbers of bonds in the Peruvian nitrate
Sodium nitrate
Sodium nitrate is the chemical compound with the formula NaNO3. This salt, also known as Chile saltpeter or Peru saltpeter to distinguish it from ordinary saltpeter, potassium nitrate, is a white solid which is very soluble in water...
industry. When Chile annexed Iquique and the surrounding province of Tarapacá
Tarapacá
Tarapacá may refer to:*Tarapacá Province, Chile, a former province, now divided into**Tarapacá Region**Arica-Parinacota Region*Tarapacá Department , a former department of Peru...
the Chilean government transferred ownership of the nitrate fields to the bondholders. North was thus able to take a monopoly share of the lucrative Chilean nitrate industry for a very small initial investment, becoming known as "The King of Nitrates".
North built upon his nitrates business by expanding into further monopolies in waterworks and freight railways, but also owned several iron and coal fields. North maintained his monopolies by employing lawyers to block competing entrepreneurs both in court and the Chilean National Congress
National Congress of Chile
The National Congress is the legislative branch of the government of the Republic of Chile.The National Congress of Chile was founded on July 4, 1811...
. This was allowed by Chilean president Domingo Santa María
Domingo Santa María
Domingo Santa María González was a Chilean political figure. He served as the president of Chile between 1881 and 1886.-Early life:...
, but María's successor, José Manuel Balmaceda
José Manuel Balmaceda
José Manuel Emiliano Balmaceda Fernández was the 11th President of Chile from September 18, 1886 to August 29, 1891. Balmaceda was part of the Castilian-Basque aristocracy in Chile...
, became concerned that Tarapacá was starting to resemble a "state within a state" and resolved to break North's monopoly. Balmaceda had to force competition reforms through against opposition in congress, amongst a series of disputes which would eventually escalate into the Chilean Civil War
Chilean Civil War
The Chilean Civil War of 1891 was an armed conflict between forces supporting Congress and forces supporting the sitting President, José Manuel Balmaceda. The war saw a confrontation between the Chilean Army and the Chilean Navy, which had sided with the president and the congress, respectively...
of 1891 between the president and the congress.
North also had investments in the Anglo-Belgian India Rubber Company which operated a concession
Concession (territory)
In international law, a concession is a territory within a country that is administered by an entity other than the state which holds sovereignty over it. This is usually a colonizing power, or at least mandated by one, as in the case of colonial chartered companies.Usually, it is conceded, that...
in the Congo Free State
Congo Free State
The Congo Free State was a large area in Central Africa which was privately controlled by Leopold II, King of the Belgians. Its origins lay in Leopold's attracting scientific, and humanitarian backing for a non-governmental organization, the Association internationale africaine...
. This company was involved in the extraction and export of rubber from the state, another highly profitable business, but later became involved in abuses of human rights against those under its power. However North's finances were eventually depleted and when he died his business empire had collapsed.
Early life
North was born in LeedsLeeds
Leeds is a city and metropolitan borough in West Yorkshire, England. In 2001 Leeds' main urban subdivision had a population of 443,247, while the entire city has a population of 798,800 , making it the 30th-most populous city in the European Union.Leeds is the cultural, financial and commercial...
, Yorkshire
Yorkshire
Yorkshire is a historic county of northern England and the largest in the United Kingdom. Because of its great size in comparison to other English counties, functions have been increasingly undertaken over time by its subdivisions, which have also been subject to periodic reform...
on 30 January 1842, the son of a coal merchant and a churchwarden. At the age of fifteen he was apprenticed to millwrights and engineers before working for several years as a mechanic
Mechanic
A mechanic is a craftsman or technician who uses tools to build or repair machinery.Many mechanics are specialized in a particular field such as auto mechanics, bicycle mechanics, motorcycle mechanics, boiler mechanics, general mechanics, industrial maintenance mechanics , air conditioning and...
. He moved to Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
in South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
at the age of 23 where his first occupation was as a boiler rivet
Rivet
A rivet is a permanent mechanical fastener. Before being installed a rivet consists of a smooth cylindrical shaft with a head on one end. The end opposite the head is called the buck-tail. On installation the rivet is placed in a punched or pre-drilled hole, and the tail is upset, or bucked A rivet...
er in Huasco
Huasco, Chile
Huasco is a Chilean city and commune, in the Huasco Province, Atacama Region.The port city of Huasco is located 50 km west of Vallenar and close to the town of Huasco Bajo, which lies on the southern bank of the Huasco River and only a few km from its mouth...
. He moved from Huasca to Iquique
Iquique
Iquique is a port city and commune in northern Chile, capital of both the Iquique Province and Tarapacá Region. It lies on the Pacific coast, west of the Atacama Desert and the Pampa del Tamarugal. It had a population of 216,419 as of the 2002 census...
in the province of Tarapacá
Tarapacá
Tarapacá may refer to:*Tarapacá Province, Chile, a former province, now divided into**Tarapacá Region**Arica-Parinacota Region*Tarapacá Department , a former department of Peru...
, which was then part of Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
. Here North established what later became a large business empire, working as a waterworks operator, importer and ship owner.
War of the Pacific
Territorial disputes between Chile, Peru and BoliviaBolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
triggered the War of the Pacific
War of the Pacific
The War of the Pacific took place in western South America from 1879 through 1883. Chile fought against Bolivia and Peru. Despite cooperation among the three nations in the war against Spain, disputes soon arose over the mineral-rich Peruvian provinces of Tarapaca, Tacna, and Arica, and the...
in 1879 with Chile invading and occupying Peruvian and Bolivian land. In the course of the war, North suffered damage to his waterworks, and one of his ships was sunk. However he also befriended the Chilean Admiral
Admiral
Admiral is the rank, or part of the name of the ranks, of the highest naval officers. It is usually considered a full admiral and above vice admiral and below admiral of the fleet . It is usually abbreviated to "Adm" or "ADM"...
Patricio Lynch
Patricio Lynch
Patricio Javier de los Dolores Lynch y Solo de Zaldívar was a Lieutenant in the Royal Navy and a Rear Admiral in the Chilean navy, and one of the principal figures of the later stages of the War of the Pacific...
who later supported him in his business ventures. During the war, North was assisted by two British men: Robert Harvey
Robert Harvey (businessman)
Sir Robert Harvey was a prominent British saltpetre producer in Bolivia, Peru and Chile during the late 19th Century.Harvey was born in Cornwall to Samuel Harvey, a tailor. The younger Harvey entered the foundery trade. In 1872 he went to Bolivia to work in the Tocopilla Copper Mines...
, who had worked for the Peruvian government in the nitrates (saltpetre
Sodium nitrate
Sodium nitrate is the chemical compound with the formula NaNO3. This salt, also known as Chile saltpeter or Peru saltpeter to distinguish it from ordinary saltpeter, potassium nitrate, is a white solid which is very soluble in water...
) industry, and John Dawson, a banker. North was able to use Harvey's knowledge of the nitrates business and credit provided by Dawson to purchase nitrates bond certificates at low prices from investors who were panicked by Peru's poor military performance during the war. After the war, the Chilean government annexed Tarapacá and allowed the bond holders to take possession of the title deeds to the nitrate fields, perhaps influenced by appeals from North's friends. North thus managed to secure a large share of the Chilean nitrate industry for a very small initial investment in almost worthless bonds. The reason that the Chilean government allowed this is that it would have cost them GBP£
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
4 million to buy the bonds from the mainly British nitrate speculators. By allowing the speculators to start mining the Chilean government could take a share of profits via export duties without having to provide the initial capital costs to begin production of nitrates.
North left Chile and returned to the United Kingdom in order to raise credit to provide for machinery, transport and employment costs. It was there, in February 1883—still eight months before Peru officially ceded the nitrate fields to Chile—that he established the Liverpool Nitrate Company. North dispatched Robert Harvey to Chile with equipment and engineers to begin construction of the mines whilst North remained in Britain to manage the financial side of the enterprise. The mines were operation by 1884 and producing 3,000 short ton
Short ton
The short ton is a unit of mass equal to . In the United States it is often called simply ton without distinguishing it from the metric ton or the long ton ; rather, the other two are specifically noted. There are, however, some U.S...
s of nitrates per month. The company turned large profits and was able to pay dividends in excess of 20% each year until 1886 when it was liquidated by North and his partners in order to found other companies. As a result of his fantastic profits North became known as "The King Of Nitrates" and was a well known public figure in England.
Nitrates were an important source of income for the Chilean government and an increase in export duty from CLP
Chilean peso
The peso is the currency of Chile. The current peso has circulated since 1975, with a previous version circulating between 1817 and 1960. The symbol used locally for it is $. The ISO 4217 code for the present peso is CLP. It is subdivided into 100 centavos, although no centavo denominated coins...
4 pesos per ton in 1878 to CLP 22 in 1882 resulted in revenue from nitrates increasing from CLP 6 to 25 million. This allowed the government to make cuts in both income and land tax. The reliance of Chile upon its nitrate income caused conflict between the government and the nitrate production cartel. The cartel wanted to maximise the price of nitrates by cutting production whilst the government wanted to maximise their duty income by maximising exports. The nature of the trade meant that the Chilean economy was also totally dependent on imports and exports to and from Britain. The periodic downturns in nitrate revenue caused by the cartel cutting production eventually forced the Chilean government to print more money, causing inflation to increase and the peso to devalue.
North's monopolies
In the meantime North continued to invest in Chile and founded the Nitrate Railway Company which held a monopoly on nitrate rail transport in Tarapacá and also held a monopoly on the water supply in IquiqueIquique
Iquique is a port city and commune in northern Chile, capital of both the Iquique Province and Tarapacá Region. It lies on the Pacific coast, west of the Atacama Desert and the Pampa del Tamarugal. It had a population of 216,419 as of the 2002 census...
. He also owned several coal and iron fields along the Biobío River and a gasworks
Gasworks
A gasworks or gas house is a factory for the manufacture of gas. The use of natural gas has made many redundant in the developed world, however they are often still used for storage.- Early gasworks :...
at Iquique. In Britain he set up North's Navigation Collieries (1889) Ltd. in Glamorgan, south Wales, a venture which turned out to be one of his most successful. By 1920 his Welsh company employed over 6,000 miners and produced over one million tons of coal per year. The development of North's Navigation Collieries Ltd. was largely responsible for the rapid growth of Maesteg and the Llynfi Valley during the years 1890 to 1910. In addition, his nitrate business was the primary cause of the development of the towns of Iquique and Pisagua. To maintain his monopolies, North employed lawyers to block competing entrepreneurs both in court and the Chilean National Congress
National Congress of Chile
The National Congress is the legislative branch of the government of the Republic of Chile.The National Congress of Chile was founded on July 4, 1811...
. Under president Domingo Santa María
Domingo Santa María
Domingo Santa María González was a Chilean political figure. He served as the president of Chile between 1881 and 1886.-Early life:...
, North's monopolies went unchallenged, and Santa María's successor in 1886, José Manuel Balmaceda
José Manuel Balmaceda
José Manuel Emiliano Balmaceda Fernández was the 11th President of Chile from September 18, 1886 to August 29, 1891. Balmaceda was part of the Castilian-Basque aristocracy in Chile...
, initially allowed the situation to continue. However, Balmaceda became concerned that the situation in Tarapacá was starting to resemble a "state within a state" and decided to break North's monopoly. Congress was not supportive and Balmaceda had to force through reforms to restore competition in the province. Increasing disputes between Balmaceda and Congress resulted in the outbreak of the Chilean Civil War
Chilean Civil War
The Chilean Civil War of 1891 was an armed conflict between forces supporting Congress and forces supporting the sitting President, José Manuel Balmaceda. The war saw a confrontation between the Chilean Army and the Chilean Navy, which had sided with the president and the congress, respectively...
in 1891.
In the meantime North enjoyed the status of a famous high society
Upper class
In social science, the "upper class" is the group of people at the top of a social hierarchy. Members of an upper class may have great power over the allocation of resources and governmental policy in their area.- Historical meaning :...
gentleman in Britain and was worth US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
10 million in 1889. He was a friend of the Prince of Wales
Prince of Wales
Prince of Wales is a title traditionally granted to the heir apparent to the reigning monarch of the United Kingdom of Great Britain and Northern Ireland and the 15 other independent Commonwealth realms...
, later to become Edward VII
Edward VII of the United Kingdom
Edward VII was King of the United Kingdom and the British Dominions and Emperor of India from 22 January 1901 until his death in 1910...
, and was described, by The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
as a "lion" of the London social season. He was the owner of a 600 acres (2.4 km²) estate with extensive stables and a mansion, Avery Hill, near to Eltham in Kent
Kent
Kent is a county in southeast England, and is one of the home counties. It borders East Sussex, Surrey and Greater London and has a defined boundary with Essex in the middle of the Thames Estuary. The ceremonial county boundaries of Kent include the shire county of Kent and the unitary borough of...
. North owned several racing horses and won several British racing trophies. North visited the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
in July 1889 where he was described as a member of the nouveau riche
Nouveau riche
The nouveau riche , or new money, comprise those who have acquired considerable wealth within their own generation...
and a "Chilean Monte Cristo" because of his recent rise to fame and fortune. He became known as Colonel North as he was appointed Honorary Colonel of the Tower Hamlets Regiment of Volunteer Engineers on 25 March 1885. He regularly allowed the regiment of 250 men to camp in the gardens of his estate for three days at a time. During this time he would hold festivals for the men and the local villagers and at one of these events he challenged the Lieutenant-Colonel to a footrace and won.
Financial decline
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
at a horse racing event to provide funds to establish a concession company
Concession (territory)
In international law, a concession is a territory within a country that is administered by an entity other than the state which holds sovereignty over it. This is usually a colonizing power, or at least mandated by one, as in the case of colonial chartered companies.Usually, it is conceded, that...
to extract rubber from the Congo Free State
Congo Free State
The Congo Free State was a large area in Central Africa which was privately controlled by Leopold II, King of the Belgians. Its origins lay in Leopold's attracting scientific, and humanitarian backing for a non-governmental organization, the Association internationale africaine...
. North agreed and provided GBP£
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
40,000 of the BEF
Belgian franc
The franc was the currency of Belgium until 2002 when the euro was introduced into circulation. It was subdivided into centimes , 100 centiem or Centime .-History:...
250,000 initial investment to set up the Anglo-Belgian India Rubber Company (ABIR) at Antwerp on 6 August 1892. ABIR had exclusive rights to all forest products from the Maringa
Maringa River
The Maringa river is a river in the Democratic Republic of the Congo. The Maringa, and the Lopori River to the north, join near Basankusu to form the Lulonga River, a tributary of the Congo River....
-Lopori
Lopori River
The Lopori river is a river in the Democratic Republic of the Congo. The Lopori, and the Maringa River to the south, join near Basankusu to form the Lulonga River, a tributary of the Congo River....
basin for 30 years and had police powers within the limits of the concession to enforce the collection of rubber as a tax. The company was initially very successful but by 1898, two years after North's death, his heirs had sold his shares in the company. The company later became infamous for human rights abuses of the inhabitants of its concession and fell into financial troubles.
Despite his varied investments across the world North's finances eventually dwindled, his decline was accelerated by the Chilean Civil War. By the time he died on 5 May 1896 his business empire had collapsed. His death occurred within half an hour of eating some oyster
Oyster
The word oyster is used as a common name for a number of distinct groups of bivalve molluscs which live in marine or brackish habitats. The valves are highly calcified....
s and the shells were sent for analysis but it was suspected that heart problems were the cause of death. In his will he donated his house, Kirkstall Abbey
Kirkstall Abbey
Kirkstall Abbey is a ruined Cistercian monastery in Kirkstall north-west of Leeds city centre in West Yorkshire. It is set in a public park on the north bank of the River Aire. It was founded c.1152. It was disestablished during the Dissolution of the Monasteries under the auspices of Henry...
, to the city of Leeds and made donations to Leeds Infirmary and the Yorkshire College of Science, which later became the University of Leeds
University of Leeds
The University of Leeds is a British Redbrick university located in the city of Leeds, West Yorkshire, England...
.