New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-03-03

IRlANlk1 DEfAhl !
WASHINGTON. ID. C., Feb. 5. 1873. #
SIR. ron requested TO dSss' Jonn ~ Saneofn IN IN
caScs .f alleged violation Of revenue laws
he may ak for your cooperation
Mr. Sauborn acting under an appointment from me,
and may NEED some INFORMATION from he ocices Of cot
icciors and for the purpose OF verifying us
GEoRGE 5, BoUTwELL, Secretary OF the Treasury.
To Supervisors aud Collectors OF Internal Revenue.
EXTRACT PROM BNNFIELD'S LETTER
I"str"e"o collectors mol 70 sel ITsI r5Ie'
OFFICE OF rnE SOLICITOR oY THE TeEAsURr,{
WASHINGTON, d. G, March u, 1873; ,
SIR is proper nat notice shosd Dc g'rsn 70 20 Nc ne
collectors mol recevs payment IN cases fn9I%s9d IN Sr
sanborus contract beng me. ~ oc ord IN an Of the
collectors offices. , - >, -
am very respectfully o T.. !, bAIN nI,
Goo BIiss Ir.. United states Attorney. New-York.
The law as smugged through Congress, give the Sccre
tary power 20 employ whom he will and pay what he
chooses 70 persons assist the officers. Under
IL Richardson contracted pay sanborn Onehaf OF all
he discovered and collected Boutwell, instructed that
his empoy6 should be assisted by all the Supervisors
and Collectors in the country and this too without the
knowledge OF the Commissioner OF Internal Revenue.
tr Banded to further the fraud. directed the Collect
sra not to collect the taxes which sanborn claimed to
lave discovered No stronger proof of collision than
this could well be shown.
now TIE DIsTRICrATIoRSEYs ABErTED
Tho preose manner in which DstrlctAtiorneys Bliss
and McMichael aided the conspiracy has already been
dcscribed Bliss furnished much OF the evidence winch
sanborn lodged against the dislers and Others ana
ia known and he deny that he has received hVe
per cent OF sanborn's pickings and seaings one OF
the letters McNchael indicates that he too was au
thorzd to receive than the legal fee Of two per
cent aud shows the Solicitor OF the Treasury once more
ia the light Of using the law officers OF the Govern
ment In the Squeezing process" The contract Win
sanborn cd paragraph page II OF Repor distinctly says
that any legal proceedings are required 10 De
hsd in the premises the shall be conducted by the
proper United States attorneys but such proceedings
shall be taken tc,Ot the rren consent OF the Secretary
Of the Treasury being first obtained" But Banf9ld In
Bliss March 81 1873, page IS Of the ReporO au
thOriges United States Attorney, in plain viola
ton Of this contract, "to institute suit IN any case
presented to you by Mr. sanbOrn arising under
his contract when your (Bss opinion, the facts pre-
scented justify the institution Of suit" subsequently
law adviser OF the Treasury wrote the follow
ing remarkable letter to William McMichael, and thus
ordered him "put the screws" aud look to San
born for his extra compensation. Ii viii be found on
page 40 Of the Report, and is as follows:
DEPARTMENT OF JUSTICE.
OFFICE or THE SOLICITOR or THE TREASURY
WASHINGTON. d. c., Dec 90 1878.
SIR: am requested by Mr.. John d. Sanborn ito com
munIcate to You instructors similar to those eGmma
tue between the Secretary OF the Treasury
aud Mr. sanborn, for the collection Of moneys withheld
In accordance with this request. have TO say
I'm any case presented To YOU by Mr.. sanborn.
under ms contract when IN your opinion the facts
Second doubt the cxpedcncy Of enforcing the pay
Of penalties for failure to pay legacy ana success
Third Itsproper that notice should be given TO the
Collectors not 10 receive payments in embraced
Mr. SIubOrns contract II being understood that hls
contract relates to claims which are not ON record in
any OF the Collectors offices.
Fourth; the contract provides that payment shall
be of the entire amount collected to the Secretary
OF the Treasury who pays out of the same the amount
due TO Mr. sanbOrn. You will, therefore, hand over all
co@promso. or voluntary payment to Mr. ssnboPn, who
Is accountable TO the secretary OF the Treasury
all the expenses Of collection snail be borne by him You
are therefore. authorized from Mr.. sanborn
such compensation Tor your services as may be agreed
Solicitor of the Treasury.
William McMiehael. United states Attorney. Philadel
now REVENUE SUPERVISORS ASSISTED" sANBoRS.
William A. Simmons Buffers Collector OF the
Port OF Boston, formerly Supervisor of Internal
Revenue aud Lucien Hawey still is another Supervisor
with office in this city Both Of these officers Of
Revenue have repeadly aided saDborn. and the report
shows that they actually acted under his Instructions
careful calculation of the details Of the Al
returned by SanbOrn, and which Melted
him lSO5 is out of s42 $50 49, shows that fully four
Iiiths of whole amount collected BY the regular
officers OF Revenue and that practically per cent Of
the receipts Of Stubborn stolen from the Treasury
And that this with the knowledge and consent Of
Secretary Richardson is clear from the details OF the
cases as published In his report.
As an illustration OF this case No II may be cited
The estates of William Cabble JaDes Williams. and
others paid 81 900 &C. and Transmitting the TO
Treasury SanbOrn opp LOG aud O7 Of the report
that the the total tax acknowledged upon
detailed statements in possession of Supervisor Haw
ley" Case reports from sanbOrn the collection Of
s1.9)s Is Of Messrs. l.. Fougera Co. of New
York tax upon uustamped articles which
had been ascertaned to be due by Super
Hawley under my Instructions" Here is
clear OF the special Collector, employed under
law 70 assist the regular officer using the
official TO discover for the special agents bene
Mt The most mOnstrOus statement is to come. The
largest collection made by Sanborn, amounting to
sg96s5 a. is detailed in 20 page pa OF the report,
aud in he plainly says that tho details Of the indebted
ness tho railroad companies who paid the tax had
been ascertained and brought to shape by Mr. Lucan
Hswley. Supervisor Of Internal Revenue. at his San.
borns) request and under the instructions OF Boutwell,
The case IL thus detailed by ssnbOrn in his report:
CASE no. 80.
NEwYoRK, Jan. g. 1915
SIR: Referring to the contract made with the Hon.
George s. Boutwell, late Secretary OF the Treasury,
bearing date Aug 49, 1872 amended by the agreement
dated Oct 80 have the honor TO report that the
railroad corporations, owned leased
by the Delaware, Lackawsnna and Western Railroad
Company, parties named ia my schedule accompanying
said contract have paid to the Of s996s5 a.
being the full amount OF taxes having accrued and not
interest on stock and loans opposite the Names
OF the several corporations hereafter named here
rer of the Delaw are aud Western Railroad
Company has transmitted cheek NO 2SSS2 OF said cor
porstlon for the aforementioned amount, the 9Th
inst 10 the Secretary OF the Treasury direct and
therefore request that onehslf OF the same snail be
paid into The Treasury to the credit Secretary OF
The reasury and that the remaining half shall be paid
TO accordance with the terms of my said contract
The details OF the OF the above
have been ascertained aud brought to shape by Mr..
Lucieu Hawley, Supervisor Internal Revenue AT my |
request dated March g. 1873 subject TO the instructions
supervisors collectors and assessors. by the Hon.
George 3 Boutwell,, late Secretary OF tho Treasury
The Following il n detailed abatement as made by the