New-York tribune., 1874-04-11

SECRETARY BOUTwKIL'S CONNECTION WITH lie
CONTRACTS.
IBY rrIEaRAPB TO THE rRrBUNE.l
WisHrNGToN April l0.-The Sanborn investiga-
ton is drawing to q close. Nothing that can De de-
veloped in the future can add to the enormity oil
the proceedings under the notorious contracts,
and no testimony for the defense can change
the character of the decision. which must be
overwhelming. not only to the Treasury Depart
ment but to the contractors and their defendants.
Only two witnesses were examined to-day, WarricK
Martin of New-York and Mr.. Madge Supervising
Special Agent of the Treasury Department. The
former seems to have come here for the purpose Oh
arguing in favor of Sanborn. for he WAS not sum-
moned by the Committee, but urged repeatedly to
be granted the privilege Of being heard HIS
statement was dreaTy and commonplace enough and
had such little reference To the subject that Mr..
Dawes repeatedly admonished him to be as brief as
possible. He began at a period during OF Just at the
close of the war and gave very stupid and un-
profitable recital of events long before the law I'M
der consideration went into effect. His object was
to show that there Was and is necessity for the
law under which the contracts with Sanborn were
made owing to the large deficiencies in the whisky
taxes. the railroad taxes, the cotton taxes, the
legacy and succession taxes and others. lie SAID
there are due the Government on whisky alone De
tween $50 100000 and $50,OO0,000.
A. G. Fay of Newly York. one of the eminent conn
sci of SanbOrn, and il NAV be said one Of the Uys-
terious men" he has so often alluded to- turned up
again in the testimony Of Mr. Martin The further the
inquiry goes the il appears certain that there
must have been organization or a combination to
effect the passage of the act of May 1872. In 1871
Martin became acquainted through Fay with San
bOm and ever since then there has been some busi-
ness interest between them Martin had informa-
gttaV,u
and it was this that was the bond of sympathy
between him and SanbOrn. 1t will be recol-
lected that the first contract between Sanborn
and the Treasury Department was for the col
lection of whisky taxes withheld. 1t was
also shown by the testimony to-day that San
born saddled Martin, his own employe, on to
the Government, while he tSanborp) was SPECIAL
Agent at the rate of about $1,000 year, he giving
SanbOm receipt the official form. All this time
both Sauborn and his Assistant, Martin, were work
ing on the contracts whose rates were 80 per cent
and no questions asked. Martins object in seeking
Sanborn was as stated. TO find man of sufficient
political influence to collect Government taxes, to
enable Martin to get his percentages. 1t seemed to
him that this was necessary, and so it was, as ap-
pears from later testimony. Martin testified that he
had, before he applied TO Sanborn, furnished So
lcitor Banield and the District Attorney of New
asked that the taxes might be collected, that he
might get his moietes
Mr.. Madge was the frankest witness the Treasury
Department has vet furnished. He acknowledged
openly that he did things which perhaps the law did
not sanction and he employed special agents whose
names never appear in the Blue Book, and whose
duties are wholly of private character. To mako
their and locations known would be to defeat
public ends and materially interfere with the public
service He seemed perfectly willing to demonstrate
how this was possible and desirable, but he was
not pressed. He acknowledged that Fay was sent
to Europe at expense of about $1,000 for two or
three months service, and expenses and he did not
deny that Fay had been, at the same time, IN the
service If Sanborn He said, however that cases
have been made up from the information obtained
by Fay in Europe which would amount to about
$S00000. These being ready for the courts, OF
course Sanborn viii get his fifty per cent on them.
Madge said that Secretary Boutwell, approved Mar
tins bill for $1,000, knowing all the facts.
There are those of the Committee who are begin
ming to think that Secretary Boutwell, Las been un-
necessarily sheltered during this Investigations and
that he is more responsible for the Sanborn infamy
than any officer of the Department. The Committee
will continue the investigation on Monday, and
have summoned the following witnesses: Mr. Odell,
Treasurer of the Delaware and Lackawanna Rail
road Company Supervisor Hawley of NewYork,
Supervisor Totten of Philadelphia, ex-COngressman
Kelsey OF New-York who had the first contract
under the law, and Judge Pendery, who applied for
contract for the Kansas Pacific Railroad, and
failed to getit.
tsEMEOFFICIAL DETAILS.
lGEsERAL PRESS DIsPATCH.I
WASHINGTON, April 10.-Mr. Warrick Martin,
lawyer OF Eew-York, appeared before the Committee
Ways and Means this morning a volunteer witness
in the Sanborn lie made a statement in a very
prosy manner from which Il appeared that had de-
voted himself for several years sort Of amateur
detective, to discovering and working whisky frauds
in New-York that early 1871 he had made the
acquaintance of Mr. SanbOrn and had furnished him
with the information which he had thus acquired. He
Rad previously fled the came information with
DstricAttorney Pierrepont and the Solicitor of
the Treasury, Mr Banhed, but notice
had been taken OF IT. He had entered into Mr. San
bOrns employment and remained In 1t Til 1873, drawing
up legal papers, preparing brefe &c. He had received
about s200 from Mr. SanbOrn which had been credited
10 M sanoorn at the Treasury Department 1t puzzled
the Committee to understand, 1t puzzled the
10 explain, now it happened that he had into
necton with Mr. sanborn such matter year before
the passage of tho law under which the SanbOrn
was made. The result OF the examination 10 leave
| the matter IN a muddle
Mr. Madge chief of the special agents In the Treasury
Department was examined, and stated sanborns con
necton with tho Department his duties as special
| agent Those duties were IN his capacity An
empoy6 of Adams Express Company, to detect and
give information OF of smuggling that were cou-
| stantly going between Canada and Boston. Mr..
Madge admitted that he had allowed the $200O paid
the preceding witness but he unable to satisfy
Committee of the legality of paying out of the custom
fund the expenses OF private contract to
for his own benefit in detecting frauds the internal
revenue The only explanation Of it that he did not