New-York tribune., 1874-02-20
REVENUE DISCLOSURES.
.u,.,,>,vv loses TWO WITNESSES.

CONTRACTS.
T,ose who were most familiar with the pay
,ronts made in the legacy and succession c'S'' - d
visor uawlev and ID .puty Collector Nai''o' -, .,
upon whose testimony u s. DStrlc'-A'o'"'' ~ ,l,os.
p,b,,r mainly relied in his prosecution " '"o'
oioon' - har,o NJ conspiracy and fraud, were Two
nlox6s of the Internal Rovonue Department h''"o"
poacb and Alden. It now appears tua' hu''o'''VP
ottor the exposure Of the swinile bed'n WIS '
wsh,nrton Iy the authorities. ana was sent .''o ="
Ca,forpa and on Dec 9. lS7J Alden reSISne" S o''''
- 40. mot been seen since District Attorne! iehheF
was called upon yesterday by reporter VINO tuHuo
,..,os concerning the matter. Mr.. Tenney saiu he
,,. .crv ,nrrh 10 fad Messrs. Beach ana Alden
have most ccountaby disappeared ana tha' al
bis efr,rts to ascertain where theV are nave ooo"
rnsvaiipg H. SAID that he relied upon lheir 'eS''
10 rove his CHARGES aud that 1t might % inuspe"saoo
Tncv we're employees of the Revenue Department. "nu
,,i,od their know ledge OF the swinoe rom tner co-
''1,,,,, H., knew that they were fully couvers-
- ;,h enc details OF the swinde. He salu ne ala MOI
Lnov what inducements had been held ou' 10 Aueh u
resign He had boou told. he sald ny E'u'ioui'n p'
sntpody well informed. tnat Alden had Ieeei'ou S'O'o
The Distrct-Attorney expressed strong uesre W "0
tain where the man was
Col w r. Wood ex Chief OF the United states secret
sorviee was called upon by reporter OF The BROOKLYN
Eaoie aud questioned concerning the matter lie Saiu
that the nature of the swinde had not been fully eA
uI,ined He contnued "In 1871 Congress passed
law aboshing Treasury agents VINO hau co'leoou '"0
revenue during the previous egat years ana appp"
ting $780, OOO for the detection and conNcuOh VI P
guilty OF violating the Revenue laws. Aiyoouy n'u "0
right to work in this field whether an empoyo VI '"'
Department or not Immediately applied TO the oecre,
tarv of the Treasury TO learn what percentage "ou'u
receive for collecting under this act Tue Assistant
Secretary Mr. Richardson figured out on the oas' VI
the former law and informed Inc that per cent was al
that Woud no allowed refused 70 work at ttt r"te'
il would not pay me; and soon afterward seeureu
priya,e contract with Boutwell,, by which
s IN cot 10 per cent was the only outsider 10 the
limited states who off red his services for this work
collected $4,000 whilo the contract lasted Il wasn't
long before Boutwell, and Butler began 10 perceive the
amount OF money which might be made out OF the law
and they Immediately set TO work 70 secure II Tor
themselves. They had the act passed which has
been published in connection with this case, but
Mr. Boutwell, lacked the courage to tx the so per cent
fees of sanborn He left that legacy to Secretary Rich
ardson Before he left however, he sent private cir
cular letter each Of the collectors ordering them to
'assist Air sanborn in every way their power In
order TO gel rid Of he sent for me and Informed me that
all contracts made by him during his term Of office would
be annuilod when he vacated ms position. 1 went to
Mr. Richardson ard no refused 10 renew my contract
But when does not respect me have way Of
making him fear me- and Richardson soon very glad
to send for and make new contract with me at 10
per cent. What good it. hOweyeri In every Col
lector Of Internal Revenues office book is kept In
which inscribed every will that is offered for probate
In the Surogates Office OF the county with the maine In
column the date OF death in another the amount in
another the heirs names another the executors and
administrators &c. in Others and a blank space for
general remarks. Similar books are kept for incomes,
personal and otherwise, &c 1t is the duty of the en-
poy6s OF the Revenue Department to collect all the taxes
due these items. without percentage. That is what
they receive their salaries for. Acting the authority
fI,cl visIf
Collector Office and took full lists OF all delinQuents
from their books, and Fastening 20 Washington fled
them OATH and had them admitted into his con
tract. That declared me and everybody else from
doing anything. SanbOrn IS the principal man aud
Hawlcy and Vauderwerken merely dummies. He
did not bring single into the courts. Whenever
he wanted to go Tor man he notified Butler who i'm
mediately received his fee counsel and then the
unfortunate man was backmailed into compromise,
OF which Sanborn received 80 per cent. II man
and refused be backmailed they dropped him.
They did not dare TO bring single case TO trial 1t
would have exposed their little game" He added that
the Government robbed i'll this way out Of millions
OF dollars
DIstrct-At;orney Tenuey, who was called upon after
ward corroborated Mr. Woods statements. stating that
Secretary Boutwell, had circular letters to the Col
leotor ordering them facilitate Mr. SanbOrn's collec-
tOns MI Tenney said that the swlndle consisted in
the fact that the Collectors the strength Of the let
furnished stnOOrn with fu lists OF the denQuentb
her books. These lists filed at Washington and
admitted into saubOrn's contract The Revenue officials
should have collected the money themselves. sanborn
and the have dared 10 prosecute asnge case
Mr. Tenney then furnished the following bill OF paricu
lars which he upon the counsel for the defend
ants yesterday:
United States Circuit Court Eastern District OF New
York The United states agt. Alfred VdnderwerKen,
LucIen Hawley John d. Sanborn, al Bill or particu-
lars on the part OF the United States.
In compliance with order issued your motion by
the Hon. Charles L. Benedict. District Judge for the
EslerR District OF NewYork. the day OF Febru
AIRY, 1874. the following particulars hereby furnished
you OF the charges alleged against the Alfred
VdnderwerkeD, LucIeu Hawley, John d. Ssnborn. and
others. IN the indictment herein 10 wit-First: The
estates upon which legacy and succession taxes
discovered and stated IN the said indictment
were the following namely:
BENJAMIN ID. Phillips, Abraham Wood
Martina Dorian. Henrietta Barnes.
John c. Bergen, Richard II Ellis,
George w. Endicott, James Funck,
Charles Hietkamp,
Jasper " Hughes. Robert Hutchins,
Henry Augur, Samuel WhsrburtOn,
Jdbez Williams William CabDle
George ". David, Thomas C. Moore,
Margaret +. HObert. Joseph Petit aud
Daniel MossmaD.
Aud each and all other estates upon which the said
legacy aud succession were at time discoy-
cred collected by the said Alfred Vanderwerken.
within the First Internal Revenue District Of the State
OF New-YOrk and by the said John D. Sanborn trans
States
Second That the contract mentioned in the SAID In
dctment an Instrument In writing, and dated on or
about the 18TH day OF August 1872 and amended or ex
tended aud enlarged 10y another instrument IN writing
dated on Or about the 25h day OF october, l52 Jhat
the false aud fraudulent papers, writings, ana appl
snoes aud representations by which II was made 10 ap
pear falsely the said SecTetaryof the Treasury that
the said John d. SanbOrn mad discovered and Collected
or assisted In discovering and collecting, the aforesaid
taxes on egaces and successons were certain wlteh
statement, affidavit, certificate, mentioned ana
referred TO III said amended contract as having
oeen signed by sand John d. saDborn under
oatn' and as having been filed by him
~ e once OF the Secretary OF the Treasury OF the said
Sn'ea STATES aud certain schedule letter contain
hg among other things. list Of the above mention
1SVs' presented IN or about the month OF October,
oS .he eau John d. sanborn to the said Secretary
OF treasury and each ne said