The Portland daily press., 1874-04-10
WASHINGTON.
The Sanborn Affair.

The SanbOrn Affair
The Figures of the MysteriOu
Man.
WASHINGTON, April 9.-The Sanborn inquir
was continued.
Sanborn produced the statement of expendi.
lures under his contract, which he had previ
his counsel, Woodbridge of Vermont that The
demand was a violation of the private consti
tutional rights of the citizens which no cour
could enforce.
Total amount collected, $427, O36; Govern
ment's share, 213, 518; Sanborn's share. $213,
518; rent of office in New York, $500; Secre
tary, $4,000. Secretary, private, $1,000; to thu
Waddells for services in securing legacy infOr
nation, $2S7S; w. j. Morrison for obtaining
information in Loudon, Paris, and Europe gen,
orally, $43,S75; District Attorney Bliss of New
York, 1920; ). D. Coughlin for assistance il
New York, $6120; j. Courtenay of Brooklyn
$4,000; lawyer Prescott of Boston for legal ser
vices. $4,000; personal expenses, $4,000
Presberry and Green, agents of Sanborn, $23.
$50; amount paid FOR railroad information and
and unpaid on account of information, $500
total expenses, $156, 483,
The large expenses in Brooklyn, and in con-
nection with coming to Washington, are moi
included in these amounts Sauborn has YET
realized nothing from the large expenditures
in Europe, for the purpose of collecting arrears
of income tax due from wealthy Americans
residents abroad. Sanborn believed that from
the information thus received, but not yet util
lied, he could collect for the government five
millions. Sanborn's private secretary was one
Steiner of the New York Herald, who has
charge of the Custom House business for that
paper. Whenever Sanborn wanted Steiner he
was accustomed to send to the office of one
Peiffer in the New York Custom House, where
Steiner was accustomed to stay. Peiffer was
an old staff officer of Gen. Butler Fay, who
took Sanborn's information in regard to Eu-
rope, was special agent of the treasury, tc
whom Sanborn paid nothing. No officer Of the
Treasury has any hare in any of this money
Sanborn did not do business that way. Fay's
services were friendly and gratuitious. Ship
man of Brooklyn, who defended Sanborn il
New York, was the attorney OF the Erie Rail
way, although Sanborn had not known it al
the time s. VI. Barlow had been first recon-
mended. but he never knew that either oil
them had relations with the Erie road. San.
born had no knowledge that Prescott had any
agency from the Treasury Department. He
had engaged him because of his knowledge in
internal revenue matters. Sanborn, 'now that
he has the information, would agree to collect
the five millions uncollected for fifteen pei
cent.
A. b. Davis Called.
A. B. Davis, Assistant U. S. District Attor.
ney in New York. under Noah Davis, was then
called. He had been counsel for parties OF
whom attempts had been made to collect taxes
under the SanbOrn contract Davies had in.
formed his client and Sanborn's agent that leg
acy aud succession taxes were not due the law,
and that he should contest the mater in the
Sapreme Court Of the United States Mhpps &c
his clients. When Davies was in the United
States District Attorneys office there no suit in
Internal Revenue cases was brought except by
direct order of the Commissioner of Internal
Revenue. He considered that nothing was
clearer than that the law prohibited bringing
suit. except at direction of the Commissioner.
He believed the Sanborn contract not in con-
formity with the act by " hich it was author
lied. Davies, when asked why the District
Attorneys Office, with which he was connec
ted, did not collect the taxes, when in fact they
were due, made very unsatisfactory answer
The law took away the machinery of colec.
ton even as to taxes properly due. Upon be-
ing cross examined by Mr.. Dawes, Davies was
obliged to acknowledge that the Supreme
Court had decided that a tax due the Govern
ment was debt which could be collected at
any time, whether the assessment machinery
was abolished or not.
The District Investigation.
WASHINGTON, April 9.-At the investigation
of the district affairs to-day, Mr.. Mcclellan ties
titled that he paid one Crittenden of Chicago
S97, 900 to secure the contract for wooden pave
ments.
Joseph S. Cook, who was book-keeper aud
conducted the business for De Golger & McLel
Ian in this city, testified that in the general
course of the firm the $4,000 transaction was
mentioned to him. He charged it on the books
to an account called transit" did this because
he did not know where the notes were. He
also charged the $4,000 draft cash payment
made to Crittenden to the transit account. He
understood $4,000 of this amount was paid tc
man named Brown but not s. P. Brown of
the Board of Public Works.
John Collins testified that his partner, Zeph-
aniah Jones, handed him contract for paving
two streets, one morning. He was surprised
because he never made application for the Con-
tracts. Jones told him that Mr.. Murtagh, pro
prietor of the National Republican, had given
them to him. Murtagh claimed one half the
project, and asked him if he proposed to fur
nsh any means He said he did not. Jones &
Collins built the new Republican building
Murtagh based his claim for an interest in the
contract because he alleged he had used his in
fluence in securing-it. No work was done un
der the contract because Collins refused to re-
cognize the claim of Murtagh.
Ex-Gov. Cooke enthusiastically that in
the summer of 1872 he was informed by Hal
lett Killburn that he intended to make some
purchases, for customers, in real estate, and
wanted his firm, Jay Cooke & Co., to join In
the purchase, which they did to the extent Of
S25,0OO. There was no argument as to location
in purchasing There had been no settlement
of the matter. There might have been but for
the suspension of the firm, with which the wit
the other persons were who were in the pools ,
He had unbounded faith in the growth o.
Washington, and had invested his money here
His impression was that the pool was to be be-
tween $50, 900 and $4,000. Witness individ
ual interest was about $3000 He had had nc
particular conversation with Kllb0rne In refer
ence to the subject. He left the money will
him to dispose of iu accordance with his judg
ment.
The President has nominated Benjamin 2
Avery of California, Envoy Extraordinary an.
Minister Plenipotentary to China, vice F.
Low, resigned
Palestine Explorations.
The House Committee on Military Affair
will report favorably the resolution au vhorizins
the Secretary of War to detail an officer t
command the second expedition of the Pales
tine Exploring Society to explore $4,000 squar
miles laying east of the Jordan. Nearly $40,
900 have been so far pledged by individuals an
Sunday School Societies.
Another Investigation.
NEW YORK. April 9.-It is stated that tn
Committee on Ways and Means is to investl
gate the removal of Commissioner Hane
from the Office of Commissioner of Customs
owing to the reports of corruption in connec
ton with the rulings of the Treasury Depart
ment upon the law relative to the duty or
fruits. 1t is alleged that Commissioner Halne
decided different from the Secretary OF tn
Treasury and declined to approve the refun6
ing of certain duties which if they are refund
ed will dep.ete the treasury over $2,0OO.0OC
The Heralds Washington despatch states tina
! Mr.. Haines had been removed because he wa
in the way of ring of fruit dealers who al
said TO be in connection with officials.
Treasury Balances.
The following are the Treasury balances te
day:-Currency, So, ,916; special deposit
legal tenders for redemption of certificates
deposit, $52, 665 900; coin, $685. ST., 467, ncludln
coin certificates S37, 345,0O0; outstanding legs
tenders, $685., 100000.
Indian Raid ON Cattle.
GALVESTON, April "a despatch from ga
Antonio says that on the 29th ult, near kicRs
poo Springs, Is Indians attacked herd OF ~
cattle and seventy horses about 200 yards fTol
the station. They succeeded in stampedln
the cattle but the horses were secured in co
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