The New York herald., 1872-09-30

transfer the sale OF stamps to parties desgna ated
by the Internal Revenue Bureau, and leave them to
attend solely to the business prescribed by the act
creating these branches OF the United States Trea
sury. Johnson left for Cuba with only $4,000 He
anticipated the discontinuance of the sale of
stamps, and asked for a leave OF absence of two
weeks that he might have chance to leave the
country.
Collection Of the Revcnuc-COrrcspomd-
ence Of Hon. John A. Logan and the
Advisory Beard of the Civil Service.
The following correspondence has passed between
Senator Logan anu the Civil Service Commission
relative to the statement Of Senator Trumbull that
one-fourth OF the revenue was lost under Grants
administration =
TO THE CIVIL SERVICE COMMISSION, WASHINGTON,
ID. c.
GENTLEMEN-The charge has been publicly made
here by Senator Trunbull that twenty-five per cent,
or, as he states it, 9S6 - is lost to the gov
ernment annually from our revenues This state.
ment he attempts to support by reference TO your
report. The impress being made upon the pub
lie mind and evidently SO intended to be made is
that your report is evidence OF the fact that
much money ia plundered from the revenues when
collected and that this is the result OF corrupt ad
mmlstration of the laws by the present authorities
at Washington.
hope you will do me the favor to state precisely
what You do mean in yonr report by the statement
that twenty-five per cent OF the revenues are lost
to the government annually ys5E JOHN Sespef,GHS E GoGHS.
4,
DEAR SIR-Your letter would have received an
earlier answer but for the fact that al in
different parts Of the country when IT was received.
licy made by Senator Trumbull that twenty-five
per cent or as he states IT, $a5 s309s6 ~ is lost TO
the government annually from our revenues, ana
that he refers to our report of December Is, 1s7l
as evidence of the fact that so much money is
plundered from the revenues when collected. and
That this Is the result of q corrupt administration
OF the laws by the present authorities at Washing
ton You do not say that Senator Trumbull states
theft. although his remarks necessarily convey the
impression that the friends OF the administration
acknowledge II; nor indeed Is 1t conceivable that
any wcll-Informed man should believe it. But as
he makes the statement and quotes our report as
evidence, II IL proper that we should explain the
paragraph to which he alludes, and which is as fol-
lOws:-
tits not easy compute in figures the exact economi.
civil service M matter Of nerenee re and
e {" M ose
who have made careful study g. all the facts tina, one
lost the n tSS sTvss nd for asEs @ % a 0
sonably be held rcspon- iblc.
The calculation to which we alluded were made
under the administration OF Andrew Johnson.
when the evils of the 'spOs' system eliminated,
and we selected the facts OF Its worst condition as
the most forcibe illustration of the misches of
the system. The calculations are found In the re-
port OF the Commission for the Revision OF the
Revenue Laws in January 1865, and in the report
OF te sPeca n nS OF te KeVen%e ~ 9f he ~.
vered in New YORK in January, 1869, remarked
81 have said In discussions this bill that the pres
ent condition O the public service loses to the
people annually $100,00J0 900. When
say to you that have studied this matter for four
years. and taken the testimony OF hundreds OF
witnesses, find that none can trace any other
result. I have stated in the House Of
Representatives that by the due collection OF the
revenue by efficient revenue officers you can gain
one hundred millions annually" He proceeded
to quote the report Of the Special Commissioner in
evidence OF his statement; and pointing out the
effect, upon the payment of the public debt ana
upon the national credit of the gain he had men
toned he concludes, "that does not depend upon
my statement; 1t Is sanctioned by the support OF
the Secretary Of the Treasury" Mr.. McCuloch was
These are the calculations OF .'those who have
made careful study of the facts TO which we
alluded, and the character or the .'loss,' which
II did not arise from deialcaions so much as from
smuggling, undervaluati0ns and evasons OF every
Kind. Thus for some time the rate Of the tax upon
whiskey was not less than seven hnldred per cent
In excess or the net cost or productions so that the
fraudulent dister was fairly paid If he could sue
cessfnlly place out Of eight barrels OF whiskey
on the market without paying the tax. The actual
evasion upon this commodity amounted at one
time to not less than from four TO iiye six,
seven hundred per cent instead of the moderate
rate of TWENTY-FIVE per cent. The loss con
tempated by the calculations to which
lerred was due to official connivanoe OF inel
cheney. II was, however, not loss of money
Treasury, which is Mr. Trumbull's assertion but OF
money that under the law was due but never col.
lected. Greater honesty and efficiency in the
service would have saved much OF that indirect
loss, and therefore the report says ''for a large
part OF that loss q system or the service which il
fatally unsound may reasonably he held respoa-
sible.r
our object was to show the bad results OF an evil
system, which has been adopted by every admins
trat0l Of all parties for forty years and which tie
administrator of General Grant has been the hrst
pfooi % @ Had ~ Ne supposed It possible that for the
ineres: partisan purpose, Senator, Of the united
states would peryert to the Injury Of this agmni,-
tration a statement which was peculiarly inappli-
cable to It, we should have prevented the intended
injury by a more ample explanation.
How great the practical reform In the honesty
and economy OF administration has been during the
term OF General Grant a few facts show. Ofiiciai
figures of the Treasury Department relative to the
actual total OF defalcatOns and deficiencies under
the internal revenue law since 1t went into opera
tion indicate that they have amounted 10 S. 200 0JO
instead Of $50, 000 is often stated and that OF
this amount $500, 900 was under Lncoln's admins
tration, 81 100000 under Johnson's. and the remain
der, about 100000, under Grants. An exhaustive
statement OF the losses OF the government from
deialcatons in the Internal Revenue Bureau IL
In preparation Meanwhile Acting Secretary
Richardson states. In a letter dated June ~ 1s75
that the estimated ultimate loss to.the government
upon the receipts Of the internal revenue from
March B. 1869, to March 8, 1872, is less than one.
dollars In ten thousand dollars In the customs the
estimated ultimate loss from the 1st OF April, 1859,
to the 3lst OF December 1871, Is one wo-hundfcdth
part Of one per cent, or somewhat less than five
dollars IN one hundred thousand dollars. On the
basis OF constant average amount OF deposits the
ratio OF estimated annual loss to creditors rom the
insolvency OF the national banks from June l, 1882
to June L. 1872 has been l1s6 part OF one per cent
OF the deposits, or five dollars and three eighths of
dollar In one hundred thousand dollars ~,
IL Is in view OF such facts that senator Trumbuh
publicly states that General Grants friends confess
that quarter Of the revenue Is stolen every year
In consequence OF me corruRa'on on o. .e auths ha, G
processes TO believe what he tries to persuade his
hearers to believe; and we regret that, in our de-
VII ~asys4 s e cSSncss SaTisa as 'SosSSS, SossSe
we failed to explain this statement more in detail,