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

The true story of the SanbOrn contract which
we publish to-day is not inferior in startling
incidents and forcible suggestions to the ex-
traordinary developments respecting the selz-
IRE bureau of the CustOm-hOuse which we gave
to the public last week. Stripped OF all dis
guises the story is just this. Mr.. Benjamin f.
Butler, who seems to be running the Unlted
States now a-days, caused Congress to insert
q clause in one of the appropriation bills an-
thorizing the Secretary of the Treasury TO farm
out the collection of the internal revenue taxes
to three private citizens, paying them any per-
centage he saw it. and giving them the use OF
all the machinery of the Government for the
execution of their undertaking. The contract
was awarded accordingly to Malcolm Campbell,
who soon threw it up; to John Clark OF
philadelphia and TO John ID. Sanborn, one
of "Butler's men, who has enjoyed virtual
monopoly of the business for about year and
| a half Armed with an order from the Secre-
tary of the Treasury commanding collectors
and assessors to render the necessary assist
"ance,n SanbOrn now visited the revenue offices
and obtained from the books long lists of de-
linuuents. These he forwarded to Washington,
with an application for contract to collect
the amounts due the Government for share
of the proceeds. The contracts were immed-
ately awarded at the rate of fifty per cent, and
then Mr.. Sanborn - did what Why, in
"structedn the regular officers of the revenue
to collect the taxes, the nOn-payment OF which
he had learned from their books, and to give
the money to him. Half of it he kept; the
other half he paid to the United States 1t
does not appear that no ever discovered a
single case Of delinquency. 1t does not
appear that he ever rendered the Government
| the slightest service. The officers OF the In
ternal revenue bureau knew of these deln-
uuencies; it was they who reported them; 1t
was they who did all the work of collection
when the agency of the law was needed the
District Attorneys of the United States were
instructed to prosecute; and the very same
bill which authorized the Sanborn contracts
appropriated nearly $5,OOO0OO for the very
work which Sanborni was allowed to pretend
to do for half the proceeds. The contracts
already awarded cover more than 5000 cases.
The sum total of the taxes collected under
them, according to the Secretary's report, Is
thus far $427, 900, of which Sanborns share
is S213,500 But this is only the beginning.
II is estimated that the total of the whole
5000 or $500 cases. if they all yield in the
ratio of the few that have been disposed OF,
will be certainly no less than $15,0o0,O0O.
No reasonable man can listen to this amazing
story without feeling of absolute certainty
that the bargain was cOnsummated in fraud
and is carried out in iniquity. 1t Is utterly
impossible to account for the law without
surprising corruption on the part of the men
who pushed it through Congress- and it is
not easy to understand the plan of operations
without the theory of collision in the local
revenue offices. Certainly no one will be
credulous enough to believe that the Con-
gress of the United States passed a section of
an appropriation bill for the purpose of
| enabling John d. SanbOrn to fitch colossal
| fortune out of the national revenue nor can
any sensible man be persuaded that this
obscure farmer of the revenue is allowed to
| keep for his own exclusive benefit the millions
he is so scandalously accommodating. Behind this
law and these delusive contracts there is one
of the most stupendous schemes OF public
robbery ever conceived in our plundered
country We call upon the Republican mem
bers of Congress, as they value the honor of
their native land and the past glory and pos
sible future usefulness of their party, to search
out this disgracetul affair and tell us who
are the thieves.