New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-04-17
VOL. XXXlV... No. 300
WASHINGTON.
oey OF THE sANBORN INQUIRY.

r,nsE OF THE sANBORN INQUIRY.
,,,o,,,v ,,,poRTANT ACKNOWLEDGEMENTS VI
THE TREASURY OFFICIALS, MEssRs' BOUTWELL,
p,cuARpsoN AND BANFIELD-JUDGE PENDERf OF
,-s,s THE VICTIM OF MISPLACED CONFIDENCE
STATEMENT BY REPRESENTATIVE PHELPS.
lBY TELEGRAPH TO THE TRIBUNfl
WASHINGTON. April 16-If there was any doubt OF
The dishonesty partialty, and trickery OF eX-oecre
,ary Boutwell, Secretary Richardson, and Sonei'or
Bantield Of the Treasury Department IN relation 10
the administration of the law of May O. lS'@ the
testimony before the Ways aud Means Commit'ee
TODAY would dispel it, and the Sanborn contracts
vould stand ont in more disgaceful light than
ever At first Sanborn and his agents were 'ne
only ones blamed for the manner in which the law
hal been executed but the peculiar md nexpncaoie
oopre Of the Treasury officials, when the inquiry
hogan nspired grave suspicious on the part OF tle
oubc. TO be soon followed with absolute conVlction
chat the officers were guilty of improper CONDUCT
Tho testimony was closed by the Committee to-day
bnt lest there might still be some douOt as 10 inc
course of Secretary Richardson and Solicitor Ban
Geld. IL happens that the last witness was the
nost important, rs showing the duphclty Oh inc
Department.
Judge Pendery. q lawyer of LeavenwoTtb, Kan
AS. who was examined by the Committee TO-DAY,
seems TO have had the first ideas upon the SUBJECT %
the contracts which have since become so notorious
and he NAV fairly claim to be the patentee of the
system II was he who drew the Joint resolution IT,
nting 10 the derect property in the Southern
stats Int if was so amended that when 1t
passed it was Of no value to him. Inc
aaesaOe Of the law now in operation early
in 1872 covered the cases desired to be col
,ectod by Mr.. Pendery for his client. lie was
,he first 10 apply for a contract, which he did DAY
,r two after the passage Of the law, in regular FORM
He was put of from day to day, now under one eX-
Fuse now under another, and he could Obtain no
,atiSfaetIon Mr.. Boutwell, was the gentleman VINO
did this and be did it without any reason whatever,
unless his friendship for Sanborn was sufficient.
This is the only reasonable and least offensive way
70 account for his course Mr.. Pendery waited about
Washington, day after day, week after
week month after month, seeing the Secre-
tary very frequently. but always meeting with
promises or excuses. He was finally driven to ms
home where he continued, by writing, to inform the
Secretary that he had not obtained the contract
AT last in December seven months after the pas
sage Of the law. MIR. Pendery again came to Wash
mcton and began his opportunities. lie was met
with objections as to the legal right to make such
contract as he desired but he at last far succeeded
A. 10 induce Mr.. Boutwell, to send for
Solicitor Banfeld and discuss the terms OF
the contract. Mr.. Pcndery wanted 80 per cent
Of the amount collected Mr.. Banheld
tboneht that was too much and suggested gradu-
aed scale of 80 per cent for the first 100000 and
Is per cent for all amounts over that sum. Mr..
Pendery and his client conceded the point, and Mr.
Pendery was permitted TO draw contract, which
he left with Mr. Banfeld few days atterward
MI Pendery called, but Mr.. Banield had rot had
Time TO examine the contract, and the same con-
temptible trickery was Tesumed-frst this excuse,
oil Vpqr
clnging to the promises and accepting the
excuses that were given in good faith. lie
wrote to Ms Banfeld on Feb. 49, 1873, but no salts
faction came Of it. Finally, when hope was still
high Mr. Baniield said 10 him: =" We can't do this.
The moment we do what you desire the railroad III
Huence is so great that shall have members Of
Congress and Senators fOcking in upon us and max
iDgi so hot for rs that shall have TO get out OF
the way, or You will" Mr. Pendery had APP
Piled for contract in connection with the
Kansas Pacific Road. Some lively talk fol
lowed in which Mr.. Pendery expressed his regret
that he had not been informed of this to start WITH
instead of being allowed to hang around Washing
ton on expense Nh. Pendery then went to the
President. They had some family communicating.
Without telling the President what he desired. Mr..
Pendery said it was something important, and Gen.
Grant said ne would meet him at the Secretary's
II.
Secretary He told Mr. Pendery that he understood
the ease perfectly, and said that he and the PTes-
dent would consider the matter. This was
garded as an invitation to leave, and so he
left the Office leaving the two distinguished gentle
men together. Mr.. Pendery does not think that Mr..
Richardson ever referred the subject to the Presi
dent At any rate, nothing was ever done about it,
and This is the cause that viii strike most people
the correct one. Mr. Pendery did not get bis con-
tract because John ID. SanbOrn was in the way. 1t
should be noted that MIR. Pendery applied formally
and that he was kept waiting for more than year
afterward. This fact is the most important one The
Kansas Pacific Road had been made part of the
contract of Sanborn, July by order of Secretary
Richardson aud Solicitor Banfed. Somebody sug.
gested to Mr. Pendery that he had better see Gen.
Butler and Senator Sawyer as they had great inlu-
in the contract business. He therefore sought
Mr.. Butler, but the latter could not help him. In
addition to his being member Of Congress and
inhibited from such acts, the amount was too large
He told Mr. Pcndery that if the sum was 100000 he
could get it so quick that il would make his head
swim"
As the testimony stands, ii looks very bad for the
three gentlemen Messrs Boutwell,, Richardson, and
Banfeld. The Committee will now proceed to con-
slider the evidence aud draw a report but will hear
any all of the three gentlemen named if they de-
sire to make statements
Before the close Of the session, Representative
Phelps of New-Jersey requested to be heard with
reference TO the previous testimony of John d.
COughin formerly Assistant Assessor for the coec-
tion of legacy and succession taxes. Mr.. Phelps
brought with him certain letters Of Mr. Coughlin,
which had been preserved, and he was thus enabled
to oorToborate every important allegation made by
him in the House. For example, Mr. Coughlin had