New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-03-02
THE SXNBORN FRAUDS.

LII IL OA ~ DUNN Ehh ODO.
THE GREATEST CONSPIRACY OF THE DAY.
BOUTWELL,, BUTLER, BLISS BANFIEID, SAWYER, SAN
BORN. AID RICHARDSON INVOLVED IN 1.-THE
MACHINERY OF THE GOVERNMENT TREASURY.
COURTS. AND REVENUE OFFICES WORKED IN THE
INTEREST OF CLIQUE TO DEPRIVE THE COUNTRY
OF HALF ITS TAxEs-IMPoRrANT EXTRACTS FROM
SECRETARY RICHARDSON'S REPORT.
The report of the Secretary Of the Treasury TO
Congress relative TO the famous Sanborn and other
contracts has of longth been printed IL furnishes
details hitherto unObtanable of what Is now recog
nzed rs the grOssest conspiracy to defraud the Go'
ernmcnt attempted. The official report does
not tell the whole story, but it supplies missing Inks
of what has been known for some time past, and the
shameful history may now be briefly aud clearly
told 10 the hight of these later revelations.
Into the Legislative. Executive and judiciary APP
preparation bill. approved by President Grant on
May 8, 1872 there was struggled clause authorizing
the Secretary Of the Treasury to employ not more
than three persons special agents to discover anu
collect any money, belonging to the United states
withheld by any person or corporation, upon such
terms and conditions the Secretary chose Inc
law ~ it stands gives him authority TO pay any per
ceptaae to the agent from ono TO one hundred per
cent "a he may choose. Tho yery.sam act and the
very same clause of it appropriated 4sOOOOO for the
nav of the regular Assessors and Collectors whose
duty it was to discover and collect these very same
MONEYS Frederick A. Sawyer, formerly OF Boston,
then in tho last year of his term as Senator from
South Carolina, conducted the swindle IN the SEN
ate; Gen. b. +. Butler smuggled 1t through the
House in spite Of serious opposition. sawyer Dc
came Assistant Secretary OF tho Treasury ana at-
tested the first contract made under the bill Butler
furnished the man to carry out the scheme OF
plumber.
.John d. Sanborn Of Massachusetts, had been a spy
for Gen. Butler during tho war. lie was hrSt
awarded q contract by George Boutwell, Though tne
document was signed by Richardson, then secretary
of the Treasury, by which agreement sanDorh was
10 receive 50 per cent of all moneys collected by hln
Mr.. Boutwell, gave him also written order IN nus
own hand On all the and collectors OF tne
country directing them to aid Sanborn IN MS WORK.
Sanborn obtained information from these Objects
and lodged it with the Secretary of the Treasury,
and from him obtained the exclusive right to collect
the money duo by the persons and corporations
named by him. SanbOrD, there Is the strongest
reason to believe, had copied every one of these
names from the books of the regular assessors-he
did not discover single case. Many of the cases
named in SanbOrn's contract were in this city ana
State and he requested George Bliss, jr, United
States District Attorney to aid him in collecting the
money by bringing suit against those who refused
to paw Bliss delayed until finally, he was directed
10 do 80 in an order signed. not by Mr.. boutwell,,
who seems to have disliked the responsibility but
bv f.. c. Banfeld Solicitor of tho Treasury. great
many suits have been threatened by Mr.. Bliss, but
none have been brought, as any SUIT III court "ouiu
have exposed the whole conspiracy.
Sanborn has lodged In this way information
AGAINST three classes of alleged denquents, all OF
whose taxes the regular Revenue Collectors were
reouired by their sworn duty 10 collect in the usual
way. First. Mr. Sanborn has named 2,4j2 estates
owing legacy and succession taxes, on 52 OF winch
hi, receipts thus far have been Sl73,lO3 q, with
1900 still 20 hear from. Secondly he has named ooo
railroads which have not paid taxes upon dividends
and interest paid upon bonds, and nineteen oil them
thus far have paid S2549 %. of which Sanboru
gets one half. Thirdly, he has obtained contract
for recovering taxes due from % distillers and II
rectilers of whisky in this city alone, the nforma-
ton against whom was originally lodged by
an inforner in the office of District-AttOrney
Bliss. and this informer by this con-
tract has been robbed of his moieties The collec-
lions which he has contracts for and for making
which he is to receive one-half, would have been
made in the ordinary course of business by the col
lectors of revenue without other cost than their
salaries IL will thus BIO seen that the whole ma
chinery of the Government has been put at the dis
nosal of Sanborn for the collection Of taxes of which
he can retain one-half.
The official report shows that he has thus far col
lected Si27O3O 49, of which ne retained S2l32O5 Is
THIS was the work of year and fortyeight days.
The report does not show what may yet prove to be
the ease that as much, or five times as much more.
has been collected and has not yet been turned into
tho Treasury.
Contracts were made with two other persons,
Malcolm Campbell and John Clark Of Philadelphia,
but the first resigned early and the second does not
appear to have been so successful as Mr.. Buffers
man, so that practically Sanborn has monopoly of
the business of collecting the back taxes due the
United States.
With this brief history of the conspiracy the fol-
lowing important extracts from the report will be
clearly understood.