New-York tribune., 1874-05-05
THE SANBORN BUSINESS.
,oNC1UsIONs OF TIE COMMITTEE OF WAYS
AND MEANS.

' - -, rrx THE RESPONSIBILITY FOR THE
,rprGu1,R AND IMPROPER AwARDs-TREAsURf
orrtcI,Ls ARRMGNED FOR CONTRADICTIONS
AND DIsAGREENENTs ~ TEsuMoNY-RECoM-
MFNpArIoN THAT THE LAW BE REPEALED AND
THE CONTRACTS ANNUILED.
In the House of Representatives, yesterday
Mr Foster of Ohio in behalf of the Committee on ways
and Means presented the report OF that Committee III
the matter OF the sanborn contracts.
The Committee begin by saying that they "have ex-
amned so far as they hnow all parties in any way con
nected with the execution OF the law under which the
Sanborn contracts were made, ani that they annex 10
the report statement OF the testimony. The report
continues as follows;
THE LAW AND ITS HISTORY.
The Forty-secOnd Congress at It's second Session. re
peaed all laws which provided for the payment OF
moie to informers, far related to lh'erha reNo
nue taxs but in the last hours OF the same session. ana
by means OF a committee Of conference, there was III
grated on The legislative, Executive and Judicial Ap
preparation bi provision OF seamingy so sngat sgn
cauce as TO have been added the last hair OF sen
tence IN one of the usual paragrapns relating 70 'e & i
ternal Revenue Bureau, wherein appropr.lloh55 na,9
been annually made for the support OF SAID bureau
This provision is IN the following words: IT,.
after passage Of This c the Secreary of The Treas
ur bs power employ than three persons assist
the rfop5 OIL e' Of ie %oyno,n' Ia eoyenS ana T0s @ my
withheld by any persoa or coTioTton upon slsn E % It %
shall be pnd 10 such persons except out o tl
moae, sod PROPERTY 20 scared and & 9O person & ssfn po o bv
iy e iorA in written sneat oath addressed TO- to the
"a a e r'oS'Ps & mGDs 1Ss saiS5 iS nS have O 6sSa
w.hheu te name Of the person. fTm or CORPORATION
h,yaS thus ~seI 'u9 s, % to receive any money or
Oder consideration pg5, fun corporation alleged
s-ce Of c written ccc made in relation thereto Secretary
OF s 4 3 5 I.. @ BE- Be ae So, sP 3 Ran Pi 81 o65
80 -f.r to rel or both n the discretion any
of5s pS sae. having aIscoa the person 50 employed
sa. w s{'e 10 m'-e repSL' oi n po2ee,s, uIag % H. s T
THE FIRST CONTRACTS AWARDED.
Under the provisions this law contracts were made
which bears date the sth Of June, 1872, and
was made with W. H. Kelsey. late member Of Congress
from the state OF NewYOrk, who appears 10 be mainly
instrumental IN securing the passage of the law Kel-
scy made but little progress after soaring contract
and on the Of August, 1572 requested that his CON
tract revoked, and that Malcolm Campbell of Phlla
dephla should succeed nm Accordingly on the gIh OF
August, 1872. said Campbell obtained contract which
was virtually transfer OF Kelseys contract.
Campbell, making hut little progress surrendered MS
contract the 23d day of November following when
two days later, on the 25h OF the same month Kelsey
retaining an interest through the several SUGGESTIONS
Under date Of July o. 1875 John Clark OF Philadelphia
made application for and On the first OF September fO-
have been collected appears that the collections
under the foregoing contracts up 70 the date OF TINS n
two ldst-named contracts are stlll III force
siNBoRS GETS TO WORK.
John d SluOOrn, resident Of Massachusetts,, who is
represented rs having been personally acquainted with
Secretaries Boutwell, and RICHARDSON, the 18th OF
Juy. applied for, and on the 18Th OF August follow
ing obtained contract which is signed by w. A. Rich
ardson Acting Secretary of the Treasury for the ooec
uJn OF taxes Illegally Withheld by 80 dstlcr5 rectlners
ana purchasers OF WHISKY Al thl' tlme sanDoin was m
the eupi0y OF the General Government as special
agent Of the Treasury department, his service such
agent commencing IN tie year lo5I ana ending Nay J
Tie Committee find, by the Testimony Of Warwick
Martin of NrwNOrk, tnat SanDOrn employed him under
ms aaln"iN' anu MHIie ne AIhrtI was Sprc Agent OF
the Treasury, to work up certain whisky cases III the
year ISL, and for these services he gave SanbOrn
vouchers when were passed 10 ms creGlt ana pAd by
the Government, 10 inc extent OF about 5000 Ills
employment probably assisted in securing tue indict-
inent about the lst April 1872 OF large number Of
dlsticTs OF and dealers in whisky, in United States
w and paid of pubhc Treasury ana against
whom indictments were procured about the lst Of April
Foio@us tins, on the 25th OF October, 1872 sluborn
nnS % o % SG 70 and t9 ueone and o6
the 3Jth OF October five days later, these
added O. MS contract tho additional contract being also
tiued by W. \. ri harisgu Acting secretary OF the
Treasury. on the IJtn Of March, lo73 SanbOIn applied
Tor anI bad added, on the same DAY, to his
alleged also 70 have been guilty OF Withholding
taxes imposed noon le1aclcs. SUGGESTIONS and IL
comes a udng tue names OF $50 foreign residents On
Tie l~ .I Jly, lsj sInhOrn again asked TO amend ms
contract. aud Mr kIclTdson, then Secretary OF the
trtc the nancs o. 591 railroad companies alleged 70 he
indeotod TO tae Government oT taxes upon dividends
ANA interest paid upon JOHds'
The ioi owing Is Il transcript OF the proceedings from
f..c Z
l"idhd't id.O'O 'oItIdcl was dt'doHed " VAe oIIe
ua. contract: ,,,o-o
SIR la,c horror herewith to enclose lst Of railroad corpora
roas lous .-. ID ' t',l sJ-ts "Lla @ 'ls I1s @ 20 l 10Y
te7 lsv. heretofore withheld an r-u,ei to paw
l Is te eao,i LIST De added to ny said con.
d-,c AJs. lJ lS1-, sul as amended Oct 30 1872
Nery respectfully your 01ed4eA' sei'2u - G.,
Hsa william A. Richardson Secretary Of the Treasury.
s9sc M s.95a ICY me- & e5 & ,S S99oiSa pqt,r & Pqo& & i3
SAL WM. IL i sTiSsR, Ncay PuJAc ESQ.,
r.,D.e,,,r ., to al .ssPsaf'i1 s.e'eP Of Il. Treasury
W2 A RICHARDSON, secle'ar, Ct the TreaGry.
Ireoomusn that the within list be sdid to and made part Of M
eaaolfh. ,''"'e" l. y DANYsD Slgo5 O 'he IsssaIy
By yne testimony of Supervisor Hawley OF New-Y ork
81 shown that early as the month OF May 1873 he
acting upon the instructions of the Treasury Depart
MIN 6y supervisor simmons of New England, detailed
at request SanDOrn VINO at time was himself spe-
ante Steiner and Stowe TO make examination ofrailroads
alleged by Sanbou to have withheld taxes This exam
nOnIhs So IeaSt pIiOi ~ e s "a; se G S @ T'
one OF the Delaware, Llckawanna aud Western Rail-
road Company. steiner aud stowe were. during all this
time, PAID for their services By the Internal Revenue
Department
uOw THE LIST or DELINQUENT RAILROADS WAS
PREPARED.
The Committee find that the information furnished by
the paid officers OF the Government which collections
were made placed at the disposal OF Sanborn, who,
ayang himself Of information paid for by the Govern
men obtained contract for the collection OF the very
claims thus brought to light and found 10 be due the
Government. 10 further appears from the testi-
mODy Of sanDOrn that, when no applied for
TINS railroad contract, he furnished list Of
railroad taken from railroad manual or guide, COM
prsing the names Of 592 railroad companies being sub
etautialy the entire list or railroads within the United
States that while he had knowledge OF the delinquency
Of only 100 to $50 OF them he had no knowledge what
ever OF the delinquency Of tho remaining 400 l50
II also appears that when he so represented
n 70 b, the ss ,SaTs SeTs Of the M Treasury Depart
ence, and TO put them all in" whereupon he made ai-
daYit that the entire 500 corporations delinquent
aud indebted TO the Government. They were ac-
cordingly added to his contract. In this Connection n
add that the officers O