Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-03-25
WASHINGTON.
More of the Sanborn Contracts.
r Haf-+ - 81
How the Government Gsve HIM SO
Per Cent. fer Rsfk that Others OF.
fered 90 DO for I5 Per Cent.

II
tee ON WAYS and Aieans this morning gave
a hearing inthe Sanborn contract matter
Sanborn was present, attended by ex-Rep-
counsel, and stated that he had two wit
nesses present who could not remain an
other day in Washington and requested
tie committee first 70 hear them. Tie
committee then heard john ID. Coughiin,
a member of the NV y ork Legislature,
who had been formerly Assistant Assessor
Of Internal Revenue in the city of New
Yofk, and is now acting under an agree
infinitely all the details of all the work of
collecting the legacy and succession tax,
which was his speciality and in regard TO
| which he claimed to be an expert. 1t was
| he who called on w. W. Phelps and made
the final collection Of about $l5, 900 as tax
on the personal property of John y. Phelps,
deceased, and he gave it as his belief that
that the tax never would have been paid
through the regular course, because Phelps
seemed under the impression that the law
repealing the legacy tax applied TO his case,
while on the contrary the law only applied
to the future and not to the past. He stated
| there was no record kept In the Internal
Revenue Department of taxes due, only of
taxes paid, and i was only through the eff
| forts of experts like himself, who, BY COM
pairing information derived from the records
of the Office with the received taxes paid in
the collectors Office, ascertained where the
delinquences were, that such delinquent
taxes could ever be recovered. ,vr- -
On being questioned as to his personal
share in the sums received he declined to
give information. But Woodbridge having
| intimated the willingness. of his client to
have.the information given, Coughlin said
lie received from Sanborn 125 per cent of
| the gross amount collected. He denied he
had impaired to Sanborn any information
l-acquired as Assistant Treasurer, and stated
SanbOrn had filed in the District Attorneys
office list of persons from whom taxes
were to be collected before he (Coughlin)
had anything 70 do with him. saslal
Mr. Foster asked Coughlin if be had
ever been paid hush money, and he replied
| he didn't understand the, meaning Of the
term, but had never received money from
| one in settlement of matters which he had
not reported. In reply TO questions by Mr..
| Beck, Coughlin stated that in March, 1873,
some months before the date of the San
born contracts, be had written to the Sec
rotary of the Treasury, proposing to collect
| delinquent legacy and succession taxes in
the county of New York, at a commission
of 10 per cent, although the same work
was afterward given to Sanborn at a COM
mission of so per cent.
Mr.. Beck-And you really did all the
work in these legacy and succession mat
ters?
Coughlin-Yes. $50
Mr.. Beck-Mr. Sanboin did not work up
anything in person?
Coughlin-No; although he had
lodged the information beforehand.
Mr.. Beck-He get that information, did
he not, from somebody who had once been
in the Internal Revenue Office? ~ p 81 i,
Coughlin-I don't know whether he
had been or not -- Sr9
Mr.. Beck-Give US his name 1- r4- Z
Coughiin-His name is Waddell. 1
don't know his first name. -
Sanborn-His name is WIN. Waddell.
He never was in the Internal Revenue De-
pai tment, -r
Jno. Beisterling, of Philadelphia, was
also examined. He stated that having been
special Assistant Assessor Of the legacy
and succession taxes in Philadelphia for
nearly two years, and that having become
familiar with the office of Register of
4
Office by BaTTows, as the agent of Sanborn,
to procure information as to unpaid legacy
and succession taxes. The information he
said was obtained only by q great deal OF
hard labor, and without COLLISION Of any
kind or degree with Internal Revenue or
other Government officers, and without pay
ing penny to any such person.
The District.
| The District Investigating Committee
this morning examined ThMn'on Smith,
one of the unsuect ssfui bidder for concrete
paving contracts. He testified that the
pavement laid by {. E. Evans at Pennsyl-
vania avenue and Madison place was in
ferior to that from the Arlington hotel, the
latter being the required standard, although
| paid for at the same rate Frankler Mace,
of Maryland, testified that Evans had not
paid him the royalty claimed by him as
owner of the Scharf pavement patent and
that the pavement laid by the company was
composed of inferior material. Louis
Clephan was examined by counsel for the
memorialists TO show that he went on
various contractors bonds for amounts
larger than the total value of his property
| al the time. He testified that he was
worth not exceeding $4,000 and supposed
he had signed bonds amounting to $780,
900 in the aggregate. The committee took
recess.
On the reassembling Of the committee,
the counsel for the memorialists offered as
evidence extracts from the published re-
port of the assets of Jay Cooke & Co.,
showing the extent of the interest of thai
firm in the Maryland Freestone and Min
j | ing Company. John c. Evans was then
examined in reference to the transactions
of the various paving associations with
which he has been connected. There was
never any secret or other arrangement be
tween witness and the Board of Public
Works, by which he or his partners were to
obtain contracts. There was no truth in
the statement that witness was ever IA
vOred over other contractors by the Board
Witness never paid nor agreed TO pay to
any member of the Board of Public Works
any money to secure a contract; never di-
vided or proposed to divide profits with
any of them. --' s '=
Funeral of Judge Dent.
There was no session of the Cabinet to-
day on account of the funeral OF the late
Judge Dent, which takes place at his late
residence this afternoon, after which the
remains will be taken West.
Deficiencies.
The House Committee on Appropr1a
tions to-day agreed to insert an item o.
$4,000 in the deficiency appropriation bill,
TO be used in carrying on the work Of fish
, propagation. The committee also had
under consideration and viii probably
Grant the estimates of the Interior Depart
ment for appropriations needed TO supply
deficiencies in the amounts appropriated
last wear for the Indian service in Arizons
and New Mexico.
Collection District.
The Secretary of the Treasury has estab
, lished the 17Sth special agency district, EN-
bracing all the parts within the collection
district of New Orleans north of Paducah
XIV. and Nashville, Tenn, and including
those parts, with headquarters at Cinein-
, natl. Special Agent, James b. Morris, has
been assigned in charge of the district.
The outstanding legal tenders are $751;
100000.
The Howard Court Of Inquiry to-day
continued the hearing of Gen. Babcock
, witness forthe prosecution. The testimou,
principally reiated to the method of payin:
l bounties to colored soldiers. Witness test.
| fed. that no very general rules had beer