The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-06-20

y ls ssss IS t Ssssiss SO SO
is5 fss ssS q la aIfs & & 81 81
For three years 6io,7so,aT s. aolIs76 4s Oss
Total .............. ssss7so,6o0 IS 75sl79l Y Oas
NorK-Ihe percentage column shows the fractional
penalties aud torteitures on the whole amount OF Gus
toms In the wears omitted the percentage SO small as
to be insignificant
Is anything more needed to prove that the dis
honest importer. with his false Invoices mis- branch
on the other side to undervalue his goods his
false appliances to deceive the customs officers
has quite driven the honest merchants out OF the
business and LETT 1t in hands such as these
THE EXPERIMENT TO BE TRIED.
Men OF the House OF Representatives, 1T is to
shield such as these that we have voted to take on
the penalties imposed upon defrauders OF the rev.
enue by false invoices and smuggling importers
Let me not be misunderstood. This experiment
must be tried before the people win understand
how greatly they are defrauded and wronged
no not Sys odn its A snnua n aas
begun my opposition earlier. The result VIII
be that you will find great diminution of your
upon TO pass laws to raise more revenue at the
next session, and have no doubt that the COM
mttee will recommend to put the tax on tea and
coffee and on friction matches, and the comforts
and necessities OF the people. Instead OF that II
am here, shall ask you SO to adjust the penalties
stringent, and so sustain and reward the officers
who fearlessly do their duty, that upon the SILKS,
jewels and the velvets, and the plate glass aud the
luxurles OF the rlch such tariff may he honestly
collected as will pay the expenses Of the admins.
your Treasury.
sANBoRN's OPERATIONS.
General Butler then proceeded to speak OF the
collection OF delinquent taxes by John d. SanbOrn
and instanced among other things, that MI. san
born collected from the Delaware and Lackawanna
years. standing Of 500, 6s5 "a; and the Committee
on WAYS and Means gravely report collision with
somebody in the Treasury in order to do that
Because the Alter check from the
railroad company's Offlce was sent Mr.. Sanborn
wrote TO the Treasury to announce that fact and
tinued Now your committee ask how could
Mr.. sanoorn have. known that unless he
Treasury Because Mr.. O'Del, the Treasurer OF the
railroad swears nobody knew the amount OF that
his clerkss What wise and penetrating commit
teel AS only three persons knew OF the check
aud therefore fourth person must have told
about 1t Now, 1t so happens, as l am informed
that this very clerk was the man who gave San
born the information as to the delinquency OF this
railroad in taxes and the man, OF course who
told him Of the check which he, as q clerk, had
written. Any one who examines the testimony
will come to the conclusion that this great amount
been for nearly four years overdue, II 1t had not
been for the moiety system under which Sanborn
was operating.
THE .'HoNEsTn MERCHANT AGAIN.
But there IS one very curious mct about this de-
linquent tax OF this railroad OF nearly 100000
which shows how the fraud runs in line through
some men. 1t is said, 'If you scratch Russian
you VIII find a Tartar underneath" and it SO
happens. if yon scratch one OF the firm OF Phelps,
Dodge 4 CO. you win always find a deirauder OF
the revenue, Tor It turns out that the Chairman of
the finance Committee OF this railroad which was
Dodge, OF the firm OF Phelps Dodge Co., the
Christian gentleman" and the ''honest mer-
chant" whose firm imports as American works Of
art eaden statues or the Goddess OF Liberty, even
at the risk OF having her nose bruised when she is
thrown into the melting pot to come out as lead
pipe.
THE OFFICERS OF THE LAW THE scAPEGoATs
But 1t Is not my purpose at this hour OF rhe
am exan,nation nf this system Of coectios Of de.
linquent taxes. 1t has been long In practice. IL
has commended itself to the administrative officers
here before. Ii has It's uses 1t has its defects and
its disadvantages, and although some four to six
millions, which, In my belief never will be got
the house has chosen TO repeal it and as it only
deals with past debts and delinquent taxes, IL
especially as the whole internal revenues in the
future do not depend in any degree upon it, as
our customs revenues upon the other part
experiment OF repeating this law and finding out
whether the Commissioner OF Internal Revenue
can make the collections. Nor is 1t my duty or
purpose to defend Mr.. sanborn, whether he did
well or Ill. That is his affair. dd not promote
s msn In ey Sm the law 10 an u"ws S one
let 1t be repealed, and IN that have neither more
nor less interest or wish than every other member
not brave manly in those gentlemen who
passed the law to make scapegoats OF the officers
VINO execute the law. lie SOulHlLtcc on ways
and Means have spent several months and q
large amount OF money IN seeming examination
OF the question OF the proprety OF the law, and II
that time and money were spent in good faitn to
ascertain whether the law of May s., 1872, giving
the moiety contracts to those who should collect
old debts ought to be repealed, 1t may have been
well spent. II, on the contrary. this apparent
purpose OF investigation has only been to cloak
another and different carried on Tor political
ana personal purposes only tnen the committee
and the House may find that they have been made
in TINS matter simply instruments to pander to the
rity and hat an m pf noi in
stead OF carrying on great work OF necessary
legislation. have some evidence showing that
the whole SanbOrn contract investigation was
gotten up not exactly for those objects and those
designs which wise LEGISLATORS and grave states
men would willingly avow.
BETRAYAL OF THE ADMINISTRATION BY REPUB-
LTCAN OFFICEHoLDER.
The first the country heard anything ABOUT these
Sanborn contracts was that Mr.. Sanborn was being
indicted In Brooklyn by the District Attorney OF
that district, one Tenney about the LIST of Feb
ruary last. As soon as that was done and duly
trumpeted in the opposition newspapers, Mr..
Tenney. an ofIlceholder under republican adj
mnistration, and claiming to be a republican him.
self sent his Assistant District Attorney here to
member OF the Committee on Ways and Means,
leading democratic member OF the House, to have
'front.' Ienney having furnished MIN with the
Brooklyn democratic papers, which gave flaming
deavors as they termed them, to ferret out
great fraud on the government. One item OF evil
dence that have OF this fact Is letter OF direc-
ton written by Tenney TO his Assistant, which
send TO she Clerk TO be read.
The Clerk read As iolows:-
Law OFFICES or TESSEy 4 Hour Us BROADWAY,
NEW 1oRK Fen. 8, 1874 I
FRIEND HUGHKs-Do not fail TO see Hon James B Beck.
He Is a democratic member from kentucky. lie Is
member also. of the Ommttee Ways and Means
have to-day sent him the onion and the Ege. He Is
powerful me nber OF the democratic party, and viii
bring tnis san5orn matter TO the 'front.' think no news
specially Yours, &c, TENNEY.
THE PERSONAL TACTICS DISCLOSED.
Mr. BuTLER-Now, II republican oIiceholders
Will put ammunition INTO the hands democratic
members on the Committee on Ways and Means
with which TO attack aud break down the repubii-
can administration, FAR be 1t rom 20 say one
word In animadverslon upon the conduct OF that
democratic member OF the House who should make
the best use he can OF that Information Tor that
object. He Should "bring 1t 70 the lront' and
charge upon the administration and attempt TO
show ts great corruption and wrongdongs. He
anQht IL he Is permItted go 10 DO. drive ilnk Of