S. Isaac, Campbell & Company

• 1. Boot Making Origins

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  In 1838 Samuel Isaac opened a merchant store in Chatham, Kent. The shop sold military uniforms and belts to soldiers and sailors. By 1845 the business operated under the name S. Isaac, Campbell & Company at 71 High Street. This leather and clothing goods firm found early success making boots for the British Army. The company expanded its operations to include other supplies by 1848. A second office opened in London at 21 St. James Street that same year. In May 1858 the firm secured a large contract to supply boots to the entire British Army in the East.

• 2. Corruption Scandal Fallout

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  June 1858 brought a sudden end to the firm's relationship with the British government. A corruption scandal charged the company with bribery and malfeasance regarding inferior goods. The investigation revealed that the firm had been selling substandard items while charging premium prices. As a result of these findings, the company was barred from doing further business with the British military. The loss of this privilege forced them to turn their attention elsewhere. They began supplying British Volunteer Corps which did not have to meet rigid military standards. These units were also exempt from strict government inspections that applied to regular forces.

• 3. Confederate Purchasing Network

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  Major Caleb Huse arrived in Liverpool on the 10th of May 1861 aboard a ship bound for England. He moved directly to London where he took residence at Morley's hotel near Trafalgar Square. This location sat just across the street from the offices of S. Isaac, Campbell & Company. Huse represented the Confederate War Department as head purchasing agent for Europe. His orders included procuring 12,000 Pattern 1853 Enfield rifles without specific instructions. He operated without staff under considerable pressure to quickly arrange shipping back to neutral ports. The goal was to run Union blockades into southern ports via specially built blockade runners. Huse sought assistance from financiers like Sinclair, Hamilton and Company alongside the Isaac firm.

• 4. Financial Deception Tactics

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  The firm secretly maintained two sets of books while conducting business with the Confederacy. One ledger recorded the real price paid to suppliers while the other listed inflated prices quoted to Major Huse. When confronted over this practice, the company claimed it was necessary to protect against loss. Despite his good record with the South, the affair left Huse in a precarious position. An investigation headed by Colin J. McRae cleared Huse of any allegations regarding the scheme. However, McRae ended all Confederacy relations with S. Isaac, Campbell & Company. He suspected they were intentionally overcharging the Confederacy by substituting inferior arms. The firm charged commission fees from both parties while connecting Huse with various arms suppliers.

• 5. Bankruptcy and Ruin

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  By November 1862 the Confederacy owed $2,000,000 to S. Isaac, Campbell & Company. This massive debt stemmed from supplies shipped before the end of 1862 which exceeded $5,000,000. In July 1863 General Grant's victory at Vicksburg cut off access to cotton plantations along the Mississippi River. The value of cotton securities fell drastically following this military defeat. The firm received £150,000 in Erlanger bonds in late May 1863 to settle part of Caleb Huse's debt. These bonds were issued at 90% but canceled a debt of £135,000. By war's end 60% of southern cotton had gone to Britain yet the firm could not collect payments. The collapse forced the company into declaring bankruptcy in 1869.