Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-04-01
What He Doesn't Know about
the Treasury, ks5s.t
Yast and varied Ignoranee.

Vast and Varied Ignorance.
WASHINGTON, March 31.-The Com
mittee on Ways and Means resumed this
morning the Sanborn investigation. Rich
arlson, Secretary of the Treasury, was first
examined. 1t was his most positive opin-
ion that the law under which the Sanborn
contracts were given should be absolutely
and Internationally repealed. He said he
had never given any special consideration
to the law itself or to the contracts which
had been given out under it, but he be-
lieyed that all laws of that character were
impolitie. He had never been consulted
by lis predecessor fBoutwell) in reference
to the law or contracts, but was aware that
Boutwell, had always had the same aversion
TO the law as he himself had. He had
spoken to Sanborn about his contracts and
had never been approached by any person
in Sanborn's behalf He knew absolutely
nothing of the matter. Any papers or doc
uments which he had signed were signed
in the ordinary routine of business without
giving them special attention.
He had no recollection of any interview
of Simmons in Boston, in which Simmons
said he had been instructed to aid Sanborn,
but he didn't question the correctness of
Simmons statement in that connection.
He was examined at some length by
members of the committee, but shed little
further light on the SanbOrn matter. Mr..
Beck, of the committee, remarked in the
subsequent proceedings that he had not
pressed the Secretary, because he was
ashamed of the ignorance which the Secre-
tary manifested.
Remarkable DEVELOPMENTS of Com.
missioner Douglas
Douglas, Commissioner of Internal Rev
enue, was next examined. He stated he
had never been consulted by the Secretary
or Solicitor of the Treasury in regard toths
law or contracts given under it and knew
nothing of the latter unless as they came
inclde .ntally to his knowledge in the course
OF r.roceedings. He stated the delinquent
i.Icome taxes and legacy and succession
, taxes and taxes ON railroad dividends. etc,
which are embraced in the Sanborn con-
tracts, were all being collected through the
regular officers of the Internal Revenue Bu-
reau when these contracts We're made and
when instructions were issued by Mr.. Ban
field, Solicitor of the Treasury, 10 Mr..
Bliss, United States District Attorney at
New \ ork, and to the Supervisors and Col
lectors of Internal Revenue, directing the
|
embraced within those contracts. These
instructions had not been Issued through
him, nor had they ever been communicated
to him unless as he learned about them
| casually. He had then on the 1st of Octo-
Der, 1873, written letter to the Secretary
| of the Treasury in regard to these instruc-
tions. That letter was referred by the Sec
retary to the Solicitor Cf the Treasury and
laan 81 brr f,a late
| The Solicitor had teld him subsequently,
that the letter had got into some pigeon
hole or been mislaid, or been referred TO
| sub, so that he (the SOlicitOr) had not at
tended TO il and had not answered it, and
! that he did not know how toanswer it.
| Douglass also stated that according to his
view of the law no suits could be brought
| for the recovery Of internal revenue taxes
except by his authority. He did not coll
| slider that the solicitor Ofthe Treasury had
any right 10 instruct Bliss to bring suits, as
1 he had done in regard to the matters under
| the Sanborn c0ntract. He (DOuglaSS) had
never given such authority and had no
knowledge of the suits having been begun
until this investigation had developed the
! fact. He was very positive in the belief
that there was no difficulty in having all
these derelict taxes collected in the regular
! course of business and as to ascertaining
unpaid legacy and succession taxes, he
handed the committee book in which the
assessors were required to keep the records
of all estates of deceased persons that were
liable 10 taxation. He knew nothing per-
sonally Of JnO. ID. Caughlin who had been
assistant assessor for the county of New
York, bat if that official had done his duty
faithfully and kept such book correctly,
all information in regard to unpaid legacy
| and succession taxes was in his hands and
| in the hands oftne internal revenue bureau.
and there was no difficulty about it. He
| didn't believe in the policy ofthe law under
which the Sanb0rn contracts were gwen
out. Il gave monopoly to persons and
thus
Intensified the Meanness
of the informer and spy system. He had
| never been consulted about or asked to
recommend the passage of such law. Al
I, though he had been under the impression
that he had been called upon by Sanborn
| and that Gen. Butler had recommended
him, still since having seen Sanborn lately
he did not appear to be the same persoI
| whom he had in his mind.
Mr.. Douglass was very frank and eX
plicit in his statement, and appeared Il
have made a very favorable impression oil
the committee.
An agent
Frank VI. Green, one of Sanborn's agents
who operates among the Western Railroad
Companies, positively denied the Statement
contained i'm letter from J. NJ. King, Act
ing Collector of indianapolis district, tha
he had represented himself there as a speci
al agent of the Treasury Department anC
had denied all knowledge of the SanborI
contracts. Green said he could not Iemem
Der that he had at one time stated that hi
letter from the Secretary of the Treasur,
was obtained by the influence of Gen
Butler.
The District.
In the District of Columbia investiga
tiOn, this forenoon, Samuel Strong testifieJ
in relation to his contracts under the BOarC
of Public Works. He signed all his con
tracts before the work was done, and wa!
not vet settled with for the work. Col
Ordway, Sergeant-at-ATIns of the House o
Representatives, testified that he had sod
ding done at twenty-five cents yard. Wit
ness stated he has always been engaged il
outside operations of considerable magni
tude. and is now one of the directors of tn,
Centre Market Co. of this city.
Internal revenue receipts for March, S773,
417,5j0.
RHODE ISLAND.