The Tiffin tribune. (Tiffin, Ohio) 1868-1887, 1874-06-04

C8ll allenIiO1 70 the TACT L1AI IQl
law provides that no person shall b,
} employed who shall not have fully
set forth, In written statement un.
, der cath, the character of the claim
out OF which he proposes to recover
J or assist in recovering ths money fol
the United States, the laws by thl
violation of which the same have been
withheld, and the name OF the person,
firm, or corporation having with
held such moneys. Under this
provision Secretary Boutwell, on
the Sth of June, 1872, issued the first
order of the Treasury Department in
relation to the employment of persons
under this act, which directed that
parties applying for contracts shall, 20
his satisfaction, set forth in writing,
under oath, to be filed in his Office, the
character in detail of the claim, the
name of the person, firm, or corpora
ton withholding the money, the
laws by the violation of which the
money has been withheld, and the ev-
licences by which the claim is to be
supported; upon doing which 3 writ
ten contract will be made upon such
terms and conditions as he shall deem
best for the interests of the United
States.
This requirement Of the Secretary
was undoubtedly in conformity with
the law, but in no case from first to
last was the law or the conditions as
set forth by the Secretary complied
with.
AT this point, Mr.. Speaker, permit
me to call the attention of the House
to the fact that no power was given
beyond the authorization of the EN-
ployment Of three persons by the
Secretary to assist the proper officers
of the Government" &C., on certain
well-defined and restricted conditions
and as a matter of course under the
| laws then in force. There Is not sin
/ gle thing that the three persons can
do but what can be done and was be-
ing done by the Internal Revenue De-
partment when these contracts were
made.
As the taxes to be collected under
the SanbOrn contracts were imposed
under the internal revenue laws, and
as this class OF taxes are only collect
ed by the Internal Revenue Bureau,
Except the tax on banks 1t clearly
follows that this department was
meant when the words "proper OFF,
| cersn were used.
The Secretary of the Treasury being
the nominal head of the Internal Rev
enue Department, 1t was proper that
he should be empowered to employ
the "three persons" but it was never
contemplated that the power given
him was intended to exclude this Bu-
reau fr )m any and all participation In
making the contracts or in collecting
the taxes so contracted to be collected.
Now, Mr.. Speaker, neither the Com
missioner, nor any officer under him,
was consulted al the time or since the
contracts were made, or was he or
they ever advised as to the making Of
the contracts, or of the character of
the claims to be collected.
No communication passed from the
Secretary's Office to that of the Com
missioner; no consultation with the
Commissioner of Internal Revenue,
on the part of the Secretary, was ever
sought or had; no order on the subject
was issued through the Commission
er's Office, nor was any report Of the
collections or action of his subordin-
ates reported to him until after action
was taken in this House calling upon
the Secretary for information in rela-
ton to the collections. In fact the
first knowledge of these contracts
came from his subOrdinates in the
country, who were faithful to their
duty TO him and the Government
whose sworn officers they were; and
when at last the true nature Of the
msnner of executing the law was
made known to him through his faith
full subordinatOs, he wrote letter Ida
ted October /, 1873, to the Secretary,
protesting against the manner in
which the collections were being made
which has never been answered.
The fact is, Mr.. Speaker, this very
important officer to whom belongs
exclusively the collection of these
very taxes appears to have been in
tentiOnally ignored by the officers Of
the Treasury Department, and with
out the knowledge of the Commission
er his subordinates were directed to
assist these contractors, and were even
without his knowledge, directed not
to collect taxes from parties embraced
in SanbOrn's contract. And in no.case,
or anywhere, or in any way, have the
proper officers of the Government been
assisted by Sanborn or any Of the con-
tractors.
The whole outside power of the in
ternal Revenue Bureau as well as the
entire machinery of the Government t
for the collection of taxes were placed
at the disposal of Sanborn, as the fol-
lowing proofs, as interpreted by Super
visores Hawley and Simmons, eonelu-
sively show:
TREASURY DEPARTMENT
Feb. 3, l573
To Supervisors and Collectors Of Internal
Il eUenue.
STR:-You are requested to assist John D.
Sanborn, Esq, of Boston, In the examination
OF official records, in reference to such cases
OF alleged violation of the internal-reYenue
laws as he may ask for your cooperation.
Mr.. SanbOrn is acting under an appoint
ment from me, and may needsome inforna-
ton from the offices of collectors and asses
sors for the purpose Of verifying his claims.
Very respectfully,
GEORGE 8. BOUTWELL,,
Secretary Of the IreGsIiTy.
TREASURY DEPARTMENT,
Oct. Is, 1873. !
To Supervisors aud Collectors Of Internal
ReUenue.
You are requested TO assist John ID. San
born, OF Boston, in the examination of such
cases of alleged violations of the Internal