, 1874-03-16

hhNbUdN-nUul"GL " GLL-6u1IEAs
Tho contracts Of tho Treusury Department with
Banborn, tho friend and associate Of Ben Butler.
by which ho WAS authorized to "dlsoovor aud
oolloot" unpaid informal reyonuo taxos on
Bharos, is at last attracting tho attention Of tho
country, especially to It's criminal features. 1n
tho winter Of 1879. the Senate Committee on Ap-
propriationB Of which Senator Sawyer, Of South
Carolina. was mombor, reported m amendment
to tho Appropriation bill authorizing tho Secretary
Of the Treasury to employ not moro than throo
porsons to assist tho revenue officers OF tho Gov-
ernment to discover ana collect any monov be-
any person or corporation. 1t was adopted
By tho Senate. Tho Houso rejected It, aB
d nero cover for spies and blackmatlors. Arr.
Butler champtoned It Justify. Tho Senate Com
mittee OF Conference, Of which Sawyer waa one,
refused to Yield, aud, though tho House rejected
it four or lvo times, tho Senate Committee In
slated upon it, and 1ually compelled the House
TO adopt it.
This section thus forced through Congtoss
reads as follows:
from anl after tho pasaage this act tho Secretary
Of tho Treasury 1al hRyo roWor to employ not moro
than thrco porsons to assist the proptr officers Of tho
Government in discorcring md collecting any money
belonging to tho United s.atoa wtcntvor tho sa1no
shll be withhold by my person corporation upon
such terms and conditions he ahall deem host for
tho interest Of tho United statcH But couponHa-
ton shall bo pad to such persona except out Of tho
! money and property secured.
In duo timo q contract WIS mndo with John D,
sanborn. and also in duo time Alr. Sawyer re-
tired from tho Senate aud BECAME Assissant-Soc-
retary Of tho Treasury. Mr. sanhorn was for
some considerable titno unable to "discover"
any money belonging to tho United States with
held by any person or corporation. Tho law
authorized lib employment to "assist" the
proper o0lcera Of the Treasury IN discovering
and collecting what they were unable to discover
and collect. So at last he appealed to the Treas.
uy Department; aud Secretary Boutwell,, on
leotore OF internal revenue tho following e1traor-
dnary letter:
| You arc requested to assist JOHN D. santorn In
the examination Of official records in reference to such
Of alleged violation Of tho Internal Revenue lava
| a. ho may ask for Jour cooperation.
Mr. sanborn ia nctng under III appointment from
me- and may need aomo information from tho oflcca
OF Collectors aud Asaessors for the purpose Of verify
/ Ing his claims.
Armed with this 1ettor, sanborn at once en-
| tered the Offices Of internal revenue examined
| tho booka, and asoertained what taxos were duo
and unpaid. Ho discovered" nothing that was
not known to The proper officers. In some cases,
| by the corrupt conniyanco Of tho local officers,
various taxes falling due wcro recorded ID col
iccted by sanborn; in other casos, where he
found that taxes had baon paid in largo amounts
he presented Ills claim for having discovered aud
collected them, and In every such case tho Trcas
ury Department paid him his contract price,
which was 80 per cont, or ono-halt Of all sums
collected. Under this contract, Mr. Sanbornt IN
tho course Of 1875 Was credited with having col
lecsed $400, 900. ono-half Of which was patd to
him. The Solicitor Of tho Treasury atatos
that sanhorns contract related to claims
which were not Of record in tho Col
lcctors' Offices, but the collections made by
him wore OF taxea Of record in those Offices,
and known to tho Collectors and to tho Depart
mont, He had, by yirtuo Of III. Doutwell's let
ter, required tho local oflcers to give him from
~tA"@@
used the ordinary machinery Of the office TO col
leot them and had claimed and been paid one-
half the money.
In tho case Of tue, Delaware, Lackawanna 1
Woatern Railroad, which paid ta1os for num-
bor OF ita lonaea lines, there waH + difference
among tho officers OF the Government AZ to the
exact amount Of tnxeB due. A correspondence
with the Department delayed the matter. The
Company never refused to pay the tax, but
waited until tho exact amount was ascestained
On the 9Th Of January, 1874, the Supervisor OF
the Revenue informed the Company TINT tue
Government +had fixed the tax at $99.085,
and the Company paid the amount directly to the
Treasury. On Jan. 8, sanboru wrote to the
Secretary that he had been instrumental In col
locting that money, and accordingly one-half the
sum WIS paid to him Tho President Of tile Rail
road Company declares that he mover heard OF
sauborn; that whatever delay tlero was in tht
payment Of tho tax was due Bolely to the inahil.
ty Of the officers Of tho Government to stRtt
tho amount
Another case WAS that OF tho Phelps estats
|
quently another part foil duo, but, owing tt
suits ~ to tho distribution, the precise amount
to bo paid uould not be llxed. But. ponding till
mattor, Mr. Phelps WAS informed by tue Govern
ment officers that the Government was &C
much iu need Of money that they would allow
him to fix the amount OF tax he thought ought
to be paid, aud aettlo with him. 1Io did 80, ant
paid the tax to tho Collector. It turned ou
af.orward that ona-half tho money wont to San
born. The most Of Sanborn's Jobs wore exc
outed in the offlco Of Luoon r. uawloy,
Supervisor Of tho Revenue. Mr. Tenney, the
United States Attorney for tho Brooklyu Dis.
trict, satisfied Of the rascality Of aome Of the
proceedings, wrote to tho Secretary Of tho Treas.
sury for aome ofloial papers to 10y before tho
Grand Jury. This WAS on Dec. ST. 1878.
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