The New York herald., 1871-01-05


EXECUTIVE MANSION. Jan. 4, 1871.
Senator Sprague's Allesed Traffic with tho
Texas Rebels.
In response TO the Senate resolution OF December
Ia offered by Senator Sprague, the Secretary Of War
to-day transmitted that body copy OF report OF
the Judge Advocate General relative to ali alleged
Unlawful traffic with rebels in The State OF Texas dur
ling the late war, entered into by Mr. Hoyt, william
Sprague. Senator OF the United States, Byron
sprague. William II. Reynolds, and others; and
states that OF the papers therein referred TO,
nor any record OF them, can now be found In heWar
Department. 1t is, however, possible that certain
OF them may be On lie at the headquarters Of the
Department Of the East, in New York city, and
search Tor them VIII be made and the result here
after reported. The report o. the Judge Advocate
Genera al Is as follows ~ -;
BUREAU OF MILITARY JUSTICE, June Is, 1855.
To THE SECRETARY OF WAR--The following re-
port Is respectfully submitted respecting lne case
Of Illicit trade to Texas, mpicatlng Hoyt, spraeue
ment BY MAJOR General Dix. The papers herewith,
s2ns!sSlps q an anstraS. & statements M Of Byron
ees 81 VII William s sprsgue epee to General DIX papers
statement, which It is stated, Is only to be used 10
case H0yt IS made witness for the government,
have all been examined, and show IN substance
that h9yL residing IN Texas at the breaking
Sa where IN ne ,ne eOeGn a his Is Greeted msy S0r an
engagement with William Sprague for under
aSs an enterprise eoR 70 sst aoIn % H M
sprague Il Co., Reynolds q Co., Taft Il Co. and
Knight & co.-and al OF Providence, R.I each
and each was loaded with cargo Of machinery,
arms &c., and cleared ior foreign ports, but were
Mir. Hoyr proceeded tnitner upon one sf the vessels
carrying letters of Introduction from Governor
spragne commencing him to General Butler and
Aamilal Farragut. The papers enclosed do not
give an entirely clear account OF subsequent opera
tions, ana $50 some Of the evidence taken does not
the the detans. It is sufficient to remark that
and the proceeds were Invested in cotton,
part o. which appears to have been gotten out,
wnlie some portions were seized by our bocIading
cruisers. William Sprague has written several
letters 10 General Dix In regard to the case, in
Of which does he admit. and in one OF which he
the operation. such as Indicated by letters from
him Isund on Hoyt, who expressly declares william
the business and 70 have ADVISED ana aided il to the
utmost Of his power. II is stated by William
sprague that the object was TO aid Union citizens in
Texas and obtain information for the government;
but no one else connected with The venture seems to
have viewed 1t IN that light and Byron Sprague,
his partner AYERS, had special charge OF the specula
ton, and plainly describes 1t as undertaking
get out cotton. Major General Dix, In letter to
the Secretary OF War, dated March 90 says:-
was employed were Sessrs william sprssas United
his ss Mam
in business Providence l., enterprises
lie
Il ss5 Be- ss, % @
Of these gentlemen makes the OF great delicacy
:; s. y
sSn 0 s ws
crime under the constitution Of the States There
written proof Harris Hoyt and Charles Prescott
parties In interest willing to testify to all the facts
in the provided that their dong shall not insure their
conviction.
Ita appears that among the articles purchased in
New OCrk TO betaken 10 Texas were some arms and
ammunition, and the invoice Of the cargo with
which Hoyt went from Havana to Matamoros were
thousands OF cartridges and percussion caps. From
an examination Of all the papers TINS Bureau Is Of
the opinion that the persons who were engaged In
G may BE eGPgt s TO @
ammunition, 81 bt military Commission, IOr yolat-
cohrse with the enemy. 1t is Tor the Secretary of
War to declare whether in view Of all the clrcum-
]. BOLT, Advocate General.
Official copy. .ssssss~Sss-s', 80, 81,
The New York Central Railroad Company's
II ~ Scrip Dividend Case.
In response to the resolution offered by Senator
Nye and agreed TO December IA requesting the Sec
retary Of the Treasury to communicate to the Sem
ate the proceedings that have been had relative to
the collection Of the tax on s45ooo.ooo scrip dlvi-
Nend of the New York Central Railroad Company
and whether the said tax has been paid into the
Treasury of the United States' Secretary Boutwell,
to-day sent to the Senate copy of a communica-
ton addressed to him by the acting Commissioner
of Internal Revenue, under date of December II, In
which, after quoting the resolution the says
You request that this Office will furnish you with
any Information 1t may have on this subject In
reply have to state that the only instance in which
the liability OF the New York Central Railroad Com
pany TO tax on scrip dividend has been referred to
lts "A m
the question OF taxing as scrip dividend the sum
OF &25.oS6,0oo, the same representing tns issue by
the company on December 49, 1S6S, OF interest GER
cates to tie amount OF eighty per cent Of Its capi
tai stock The proceedings OF tins Office with refer.
cent upon said eighty per cent scrip issue have been
Supervisor syhs Of the Northern district isSsss q Kew
Central Railroad Company with special reference to
its Liability tax upon the aforesaid issue Of scrip
presented BY Mr.. Smythe Supervisor O'Donnell, hls
successor, was Instructed to cause an immediate u.s.
sessment Of Tax OF tive per cent on said scrip.
s2S,ose,ooo was made against this company, and
Bailey, Of the Fourteenth district Of New York.
TINS assessment was ordered at the time In
barre barred from the ASSESSMENT of % tax oo,ms n.
der the fifteen months limitation contained
in section 20 or act June &c. 1854 amended by
ton act July l3 1865. and to enable the question
OF liability to be determined upon the claim for
abatement or refunding, as the case may be- The
tax has not yet been collected. The collection has
been suspended at three dinerent times, snce by
telegram dated March 20. 1870, again by letter
dated April Q, 1870 and the last suspension
dered on the 22d November, when the collection was
stayed until January 1871. These had
been ordered at the urgent request OF the President
G. Vanderbilt and others In 1enalf OF the company,
In order that they nlght, as they claimed. have
ample opportunity to collect and forward evidence
in behalf Of the company It is proper to ada that
the seeming delay the part Of this Office In decid
ing 10 collect the said tax has arisen from what 1t
conceived to be not only the desrableness, but the
necessity OF having all the statements OF the
company ON their own behalf before determining so
OF the company in furnishing such statements. The
resolution herewith returned in accordance with
yeur request Very respectfully,
]. W. DOUGLAS, Acting Commissioner.
Pacific Railroad Bonds.
Representative Sargent to-day made a report on
the House resolution to secure indemnity to the