The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-25
THE SANBORN MONSTROSITY.

LOOK place.
THE SANBORN MONSTROSITY.
MIR. Coughiin's Testimony-The Secretary
Of the Treasury Rejects a Bid for the
Collecting Contract Thirty-ive per
Cent Lower than the One Accepted
Sources OF Information.
WASHINGTON, March "a, 1874.
The Committee OF Ways and Means held ses-
sion Ais morning to give hearing in the Sanborn
contract matter
Mr.. Sanborn himself was present, attended by
Mr.. Woodbridge, an eX-Representative for Vermont,
as counsel. On being notified that the committee
was prepared to hear whatever lie had to submit,
Mr.. Sanborn suggested that he had two witnesses
present who could not remain another day in
Washington, and whom he requested that the COM
mittee would first hear.
The committee acceded to this request and gave
hearing to Mr.. John ID. Coughn, OF New York,
MEMBER Of the New York Legislature, who had
formerly been Assistant Assessor Of Internal Rev.
enue in the city OF New York; and is now acting
under an agreement with Mr.. Sanborn. MIR.
COughlin related infinitely all the details OF the
work OF collecting the legacy and succession tax.
which was his specially, ana in regard to
which he claimed to be an expert. 1t was
he who called on Mr.. w. w. Phelps and
made the final collection OF about $4,000 as the
tax on the personal property OF Mr.. John ].
Phelps, deceased, and he gave it as his belief that
that tax never would have been paid through the
regular course because Mr.. Phelps seemed to be
under the impression that the law repeating the
legacy and succession tax applied to his case,
wnlle on The contrary the law only applied to the
future and not to the past
NO RECORD OF UNPAID TAXES KEPT.
He stated tnat there was no record kept in the
Internal Revenue Department. OF taxes due, but
/ w
the efforts OF an expert like himself, who, by CON-
pairing the Information to be derived IRON the Sur
Collectors Offices, ascertalned where the delin-
Quencles existed, that such delinquent taxes could
to his share the sns re as
covered under the Sanborn con racts he at
first declined to give the information But,
Mr.. Woodbridge having intInated the willingness
OF his client to have the information given, Cough
lin SAID ne had an agreement with Sanborn
under which he received twelve and half per cent
OF the gross amount collected. He denied that he
had impaired TO Sanborn any information
stated that Sanborn had fled in the District
Attorneys once list of persons from whom
anything TO do with him, his share OF the business
being confined exclusively to the ascertalnment
OF the amounts due Tor legacy and succession
taxes
He was questioned by Mr.. Foster as follows:--
TOUCHING INNOCENCE.
Mr.. Foster-Has anybody paid you anything as
Mr.. Coughlin-In the sphere that have been
brought up in that is word that do not clearly
understand. If you viii explain the precise
meaning OF it VIII answer your question:
MIR. FOster-I do not think IL WORTH while to ex-
plain to New York expert the meaning Of The
Mr. corshlin-If you will explain to me exactly
what hush money Is l VIII tell you all know
Mr. F0ster-You cannot tell without an expla-
natiOnf
Mr. Coughlin-No sir, I cannot.
MI. Foster-Aave you received any money from
any one in settlement of matters which you have
not reported?
Mr. COughlin-No sir.
Mr.. Foster-Has anybody proposed any such
Mr.. Coughlin--No, sir; never received q dollar
at al outside the Sanborn contract
Mr.. Foster-But you know you could have re-
ceived money as hush money?
Mr.. COughlin-PrObably could; but, to the credit
Of the people who dealt with me, they never
Mr.. Foster-Did you pay Mr.. Bliss, the District
Attorney, out OF your twelve and a-hall per cent
never had any money dealings with aim
FIFTEEN PER CENT REFUSED AND FIFTY PER CENT
In reply to questions by Mr. Beck Couchlin stated
that In March, 1875 some months before the date
OF the Sanborn contracts, he had written to the
delinquent legacy and succession taxes IN the
county OF New York at commission OF fifteen per
cent. although the same work was a.. afterwards
Mr.. Beck-And you really did all the work IN
these legacy and succession matterss
Mr.. COughlin--Yes.
Mir. Beck-Sanborn did not work up anything in
person.
Mr.. Coughiin-No, although he had lodged the
Information beforehand.
MIR. Beck-He got that information, did he not.
from somebody VINO had once been III the Internal
Revenue Oflicep
Mr.. Coughlin-I do not know whether he had
been or not
Mr.. beck-Givc us his name.
Mr.. Coughlin-llis name Is Waddell. / do not
know his first name.
Mr.. SanDorn-Hls name Is william Waddel; he
never was in the Internal Revenue Department.
HOW THE REVENUE Is COLLECTED IN PHILADEL.
PHIA.
John F. Bestering. of Philadelphia, was also ex-
ahmed. He stated that, having been special as
sstant assessor oil legacy and succession taxes IN
Philadelphia for nearly two years, and having be-
come familiar with the records In the 0lce OF the
Register OF Wills, he was employed alter leaving
that office by Mr. BarrOws, as the agent OF Mr..
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 any internal revenue other government
officer and without paying penny TO any such
person. Information as to three or four estates
was submitted to District Attorney McMicnael
but no collections had been made up to this tinie
because OF a difference with the Supervisor, Mr..
Fulton, az to what constitutes record in such
cases.
In answer to a question by Mr.. Foster Mr.. Bel
sterling said that ne did not consider Mr. Fulton
vlgllant in the interest of the government, and
thought that II Supervisors Ilawley and summons,
In New YORK and New England, mad done as Mr.
Fulton did In Philadelphia, the Sanborn collections