New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-03-28
THE SANBORN CONTRACTS.

FxAMINATIoN--IHE CONSTRUCTION OF THE CON
TRACT LAW BY, TREASURY oFFIcTADs-No AT
TEMPT MADE TO LEARN IF THE INTERNAL REV
KNUR BUREAU HAD ANY RECORDS IN THE SAN
born cAsEs-sANBoRNs ASSISTANTS GIVEN
LARGE POWERS BY LETTERS FROM TREASURY
oFFICKRs-AIL TIE PAPERS IN THE CASE Noi
YET FURNISHED.
Almost n complete report is given below Oh tne eA'
animation of =. c. Banfeld Solicitor of the Treas
ury last "Wednesday, by Mr. Beck, IN the lhvestlgs-
t,or NV the House Committee on Ways and Means
into the Sanborn contract business: --
ogcab Won tell this Committee why 10 was that. In
vonf combinations about these contracts you failed 70
csilin the Commission Of internal Revenue who'
ought TO know moro about these msters tnan
anybody elsei Was there any reason for omtlng the
ofcers presenoe A SO far as was aware, there was
no special reason for IT whatever don't know that 1t
was ever particularly spoken OF or alluded to In any
way: can only in general terms that this act In
terms specifically imposed the duty Of making these ap-
pointmens and contracts upon the Secretary OF the
Treasury and then the law related TO debts withheld;
there was special reference the terms OF the act TO
internal revenue matters anything ese IL related 70
debts withheld" and the Secretary suppose consid-
ered that that was a power aud duty specifically Inn.
posed upon him. and he exercised 1t according 10 the
best his Judgment; he responsible for the en-
foroemeni Of the act. ... . ..H.L 81
O. The fact was however, that the Commissioner Of
Internal Revenue was not called In Tor consultation
A. Idou't know that he - bad.
a Wa n. mot necessarily, from the position he occu-
pied tosbest informed officer IN the Department rs 70
Internal revenue taxes, their mode of collection and all
matters to which the sanborn contract rolateji A or
course is supposed that he couversant with
all matters OF internal revenue.
O find here letter Of j. W. Douglass Commissioner,
dated oct l. 1873, asking for Information. and stating
the laws the rights and duties OF his officers, which
Is respectfully referred to the solicitor OF the Treasury
for his opinion to the proper answer to be made 10
this letter." and find answer to that letter any
where. VIII you explain why it remained unanswered
or tit answered, why have not been furnished
with the answeri A. The letter never answered by
me No sll.
WHY MIR. BANFIELD DID NOT ANSWER COMMISSIONER
DoUGLASss LETTER.
O. VIII you give the reason why when letter Of that
sent TO you, attention was paid TO itf A.
The letter game office reference in the ordi
nary of business, coming from the Secretary 8
Office. 1t was put my table. so that could
have had personal knowledge OF H. but 1t was referred
the OF 10 the clerk who was supposed
most naturally TO have charge OF those matters Per-
sonay did not know until long time afterward that
there was any such letter there. then went and
spoke the Secretary about II. aud told him that 1t
eeomed to that that letter for him TO answer:
that n for to il, or to give reasons
why no had adopted the he had In relation to
these contracts He said he would think 1t over, and
from time to time the matter neglected, until
finally. one day Mr. Douglass came down into my Office
for the purpose Of making some explanation growing
out early public talk in reference to these matters,
and ~ once explained to him my about this whole
thing He then said that he had desire to have the
letter answered at all. made personal explanation
TO him. and that satisfactory. Mr. Douglass came
down apparently little disturbed, lest IL might seem
that be had instigated inquiry into this matter,
because OF hostility toward the Treasury Department
or Richardson. i
suspicion Of that kind, and then went Oh and made
this explanation.
@ after he had been questioned in this Com
mttee relative TO It'll A. 1t may have BEEN
q Did he not say to you that the members OF this
Committee had called upon him to know why he had
taken part In this matter, and that after that he
had written the etteri A. don't know. l can't state.
1 have doubt 1t was about that tmo. II after
attention had been called TO the matter, but can't give
the date
IHR TREAsURYs CONSTRUCTION OF THE CONTRACT
LAW.
@ In that letter OF the Commissioner. he says: "The
copy the letter referred to in above copy OF Mr. Todd
letter referring to Collector Todd Of St. Paul. MIMI
having been written by Mr.. Presbrey reads: The So
hcitor Of the Treasury under date OF July 49, writes me-
"The OF collecting the differences found is not by
assessment through the Commissioners office. The
payment must be made by check draft, made TO the
order OF Secretary Of the Treasury which guar
sntee 10 the that the amount to the Treas
ury."'" NC. Was that your letteri A. / don't know
Sir. II wrote such letter At in the nature Of
private letter TO DIR. Presbrey. II did 1t not
Official letter. know be ofentimes came in and made
personal inquiry about these points. and 1t is all
unlikely that summed it up by puttingt in the form
of letter
@ Now, will you tell the Committee IL you did write
this letter. stating that the of collecting the
differences found is not by through the
Com missioner's Office" by what authority of law you
made That Al A
general understanding Of the operation Of the Internal
Revenue laws at the time this thing established by
the Department.
Did you know that by the 4st section OF the act OF
June 1854 is made the duty Of collectors "to col
lect ali the imposed by law. however the
may be designated and to prosecute for the recovery OF
any sums which may DO forfeited by law" &c. A.
presume did.
@ Then. IL IL their duty make all collections
what authority had you the Secretary TO that the
collections Of the differences found should not be by
assessment through the Commissioners offcef A We
made 10 upon our construction OF this contract law
which Congress saw it to pass.
That law which Congress saw at 70 pass authorized
the employment OF not than three persons 10
proper officers OF the Government In discovering
and collecting any money belonging 10 the United
states upon such terms and conditions deemed
best for the interests Of the United sate Do find
anything In that law that authorized any Of these
employed to mako any collections otherwise than
through the officers Of the United States appointed by
law TO doit A. The assumption and the claim in all
these was that these debts that with
held from the Government The theory. as understood
that they old taxes and old debts which the
regular officers Of the Government had lost sight Of and
the contracts intended 10 relate exclusively TO that
class Of debts and taxes Withheld.
Q. Admit all that. Now what clause in that law
authorizes man that may be employed under it to
mako any collections otherwise than through the regular
an4t naC yy.fl