New-York tribune., 1874-01-13
LOCAL MISCELLANY.
THE ALLEGED REVENUE FRAUDS.

THE ALLEGED REVENUB FRAUDS.
REBATE ILLEGALLY DIVIDED THROUGHOUT THE
CoUNrRY-MIIIoNs INVOLVED IN THE BROOK
IYN TEST CAsEs, WHICH THREE OFFICIALS
HAVE BEEN INDlCTED-MR TENNEY RESOLVED TO
hold HIS GROUND.
III the Revenue laws are correctly inter-
preted by United states DisrictAttorney Tenney Of
Brooklyn, and II a Deputy Collector, Supervisor,
and agent have been indicted legally Brook
p is certain that in the various Internal 'Revenue
districts OF the United states where the plan pre-
vss as in Brooklyn large have been uulawfully
drawn from the United States Treasury and have passed
Into the possession Of individuals. These sums during
the past two years, have amounted 10 millions Inc
GLOWING statement will show the plan of action:
In 1863 Congress passed law taxing estates and cor
porations. The act dealt with what termed success
and legacy cases" 10 1871, this act was repeated
the Of its repeal there still remained uneo
seeted taxes estimated at s1ocooooo In 1871 suose
cuent act was passed 10 take effect In May OF 'ha' year
providing that in cases where the collectors shond DC
unable % collect the taxes DUE three speca agents
should De appointed TO make the eoectOns' ana ai'er
they had pad the full amounts into the Uh'eo S''os
Treasury they should be entitled TO rebate OF COM
mission OF 50 per cent for their labor II is claimed that
this act was passed provide places for certain persons
ana that its provisions neither economical nor
honest the existing law already PROVIDED lot
FIXTURES when the collectors experienced dlHcuIt! III
collecting their taxes which, II enforced, would result
IN ful payment, and that the appointment OF speea
agents was entirely unnecessary MI sanborn OF Boston
nas named rs one OF the agents, but whether 'he
other two were appointed has not been ascertaned by
Ienney and other United states Off
,ials who have made inquiry at Washington No eXcep-
however has been taken 10 the the drawing OF inc
rebate by the special agent in where he person
ally collected the amounts overdue But II has oeenthe
prevailing custom In most Of the Internal Revenue OIL
Gee 70 overstep the law and 90 beyond its provisions
netp United
Deputy Collectors, the Supervisors, and the spec"i
Agents SO that one half OF the amounts collected III the
Internal Revenue Offices have been made 70 revert 10
them. and the proceeds have been divided IL Is the
plearyened duty OF the Deputy collector 10 turn the
smonnrs over 10 the Collector, who is directed TO for
ward them 10 Washington. But the Deputy Col
eetor has been accustomed TO pass the money 10 the
superyisor, who has turned II TO the Special
Agent The latter pays II into the Treasury, repre-
,enting that he has personally collected the amount
where rebate made of one-haf the amount, which is
divided among the deputy collector the supervisor ana
agent stated that this practice prevails IN all the
principal Internal ReveDue districts OF the United
STATES and the credit Of discovering the fraud and
endesvoriug TO punish 1t is due United states District
Attorney Tenney, who perceived Its operations in Col
lectoT FreelaDds Office, and immediately presented the
facts the consideration Of the Grand Jury who at
once indicted the offenders. The amount OF which the
Government is supposed 10 have been deilduded In
Kings County is estimated at $4,000.
The same principle is said to prevail in New-York,
where il believed the GOV ernnent has been deprived
OF 100000 In Philadelphia, Boston, Baltimore, and
other large cities tae plan Is carried out and the
amount involved is estimated at millions. MI Tenney
realizes the opposition he Will have TO encounter ID
prosecuting offenders but declares that he will do
bis duty without regard for party considerations He
believes great fraud been perpetrated upon the
Government and he states that he will endeavor TO have
The repealed The which the Dstrict-Attorney
proposes TO make test has not been heretofore
clearly defined. 1t is as follows:
Alfred Vanderwercken, who ls deputy collector under
Collector FreeIsnd has collected large of money
OIL OF the legacy and succession taxes OF which
charge The law requires that persons employed
N the internal revenue service shall collect amounts
due for revenue requires that the Commissioner Of
Internal Revenue shall these taxes and refer
them back the tax collector Of the district, and also
thai shall be refunded through the internal Revenue
DEPARTMENT Vanderwercken finds ont when the sut-
doe and instead OF referring TO the Com
mIssioners of Internal Revenue be assessed, he
himself and Instead Of turning 1t into the
Internal Revenue Department gives 1t TO Supervisor
Hawley, who hands II to sanborn and then 1t goes to
the Treasury OF the United states ana 81 per
whole instead OF tue iul sum collected Super
visor Hswley, Mr. Tenney states has no right whatever
70 receive these mOneys; he is only Supervisor
The statute relating to the Supervisors duties IS de-
JsGs that shall be the duty OF every super
nnder the direction OF the Commissioner to see
that al ana regulations 10 tne cOltciOn
Of internal revenue taxes are faithfully eXacted and
compiled with, and 10 scrdnize the conduct OF ai Off
OF internal revenue and report any wrong, neglect,
or maeasanee 10 the eoDduct OF any internal revenue
Ctbeer
1t is claimed that il the lawful duty OF the Super
visor. instead OF assisting to defIaud the Government
tC report all irregularities 10 the Collector Hence he
been indicted and hcld for trial in s250O0 IL is
stated upon good authority that IN NewiOtk Mr. Bliss
receives cent OF the amount collected. Mr. TcDney
has been v1lanty engaged IN working up the for
the past two months and has traced the division of
bate clearly 20 the Deputy Collector ana the supervisor
He a clear OF fraud from which there
bo escape.