The Portland daily press., 1874-03-11

for giving out such contract The object was
to ascertain cases of delinquent taxes due
from railroads from whiskey dealers and from
the heirs OF rich SUGGESTIONS. Among other
things the Erie Railroad had been brought to
book for half million of back taxes.
Mr. Foster of o., asked Butler how much
had been collected from the Erie Railroad
Company Butler replied that none of it had
been collected yet because the Erie Railroad
Company had set the newspapers on SanbOrn
in order to get the law repealed to get up row
in Congress over it till the time for collecting
these delinquent taxes had ran out.
Mr. Beck of KY, asked Butler whether he
supposed he (Beck) had referred to him in con-
nection with the Sanborn contract.
=, NE BUTTERFLY no means; on the contrary
tnanK the gentleman from Kentucky for giving
,n n. ti,e opportunity of stating what l could
not otherwise have stated
MI Beck certainly have never connected
the gentleman from Massachusetts with such
contracts, for if there is anything on earth that
is apparent, 1t is that these contracts from
their inception to the present are buoyant with
corruption.
Mr.. Butler-Precise'y as corrupt as sum-
pose tine Secretary of the Treasury was fraudu-
say corrupt If you show me any body who
has been called upon to pay taxes that he did
not owe, l will beg his pardon and beg the par
don of the gentleman from Kentucky, that
will be hard enough, Uaughter.) l stand
here not to be frightened by hard words on this
matter. If any man can cOntrovert one single
word OF what have said, l will be ready to
meet him anywhere under any responsibility.
Mr., Eldridge of Wis, asked whether it
would not have been more IN consonance with
Republican institutions and Republican adj
mlnlstratlOn to have removed the officers who
failed to do their duty and put in their st ad
good men, would bave executed the law so as
not to necessitate any snch proceedings.
Mr. Butler replied that the question IN effect
whether it would not be better for everybody to
do his own duty. He agreed it was but these
dlrellcit taxes had been cancelled and never
would have been collected but for the efforts of
the contractor.
Mr. Foster of Ohio, a member of the Com
mittee of Ways and Means, said he had offer
| ed the resolution under which the report about
| the Sanborn contract had been made He was
| also authorized by the Committee of Ways and
| Mems to report bill to repeal that law. He
undertook to say that three-fOurths OF all the
collections made under these contracts would
have been made by the ordinary internal reve-
| nue. officers
Mr.. Hawley of Conn, related the case of
Geo. w. Williams & Co., of Hartford ,lwho had
under the pressure paid back taxes under the
Sanborn contract, although the Collector aud
Commissioner of internal revenue had decided
both before and after that they were not liable
for those taxes. The law might be just but
the execution of it was infamous. 1t was
| Matchmaking
Mr.. Butler was glad to nave one case speci-
| fed and what was il? 1t was case of pa
| tent medicine vender who had not paid his
taxes, but who after having had time to take
counsel paid them uader these contracts 1t
had not been charged that any penalties had
that? He (Butler) failed to see it If the tax
| had been wrongfully paid.
| It could have been returned to the Secretary
of the Treasury, but this firm had never ap-
| piled for it. He supposed they had not cot
| over their scare.
| Mr.. Dawes protested against this discussion
now. Voices. Let it go on,
Mr.. Foster said the effect of the law had
| had been that instead of those contractors as
slsting the revenue officers in the discovery of
back taxes the revenue officers had been assist.
| ing them, for which they (the contradictory had
received $2l3OOO, A large amount of the taxes
| Mr.. Simmons the then Supervisor for Massa-
chusstts and the other Mr.. Hawley of New
| York. One of these gentlemen had been since
| indicted and would probably go to the peniten-
| tiary while the other had been promoted to the
colectorship Of Boston. Uaughter)
Mr.. Butler expressed the hope that 500 San
| borns could be let out on the rascals who had
| been defrauding the government and then
| Congress would not be obliged to tax the poor
| mans tea and coffee and matches. There were
still $15,00O.0 900 Of these derect taxes uncol
lected, and Sanborn only wanted to be let loose
| upon them.
| Mr.. Foster made some further remarks in
| Sanboru.
MIR. Butler denied that he was Sanborn's at
| torney. He had never been retained in a case
| by him, but he had hoped to be- and he should
| give his best service very cheap in helping to
| get taxes of railroad companies
Mr.. Hale of Maine, denounced the whole
| system OF spies and informers, and special
agents. 1t looked to him as though the Treas
ury Department was run for their benefit, in
| stead of their acting for the benefit of the
| Treasury Department. He bid the Commit
| tee on Ways and Means God speed in their eff
| forts to repeal the law.
Mr. Dawes regarded the whole discussion as
| premature and expressed amazement that his
colleague (Butler) had rushed INTO the debgte
| and had insisted on discussing the merits of the
Sanborn contract when his name had been in no
manner connected with it, except by the public
press; and his colleague had proclaimed that
he had no regard for the public press. He sup
posed he would have been willing to wait till
the matter came regularly before the House.
He denouncec the policy of farming out the
| revenues; the effect of it was corruption.
Mr. Roberts of New York, another member
OF the Committee on Ways and Means, ex-
! pressed himself to the same effect. The couu-
| try, he said, did not want such blood money"
Mr. Hawley of Connecticut, denounced the
the Sanborn contracts as Giscreditable to the
| government
Mr.. Garfield expressed astonishment that
MI Beck OF Kentucky, had connected his
ed to give history of the law under which
the contracts were made 1t was this: A prom
osition had been made to the Committee on APP
| pioPidCionS W auu 10 tue legislative apprOpria-
ton bill clause empowering the Secretary of
the Treasury to make contracts for the collec-
ton OF unpaid taxes. He had taken that clause
himself to Mr.. Boutwell, and asked whether he
desired to have it put into the law. Mr. Bout
we'll had dissented from it, and expressed mis-
disbelief ia the policy of it. On reporting that
fact to the committee the clause was unaui-
mously rejected and the bill passed the House
not containing it. The bill came back from tine
Senate with that clause in it, and the Commit
Tee ON Appropriations recommended it to be
! struck out, and it was struck out. Subseouent-
| ~ III the conference committee the Senate con-
teieeS were strong and decided in the deter
mlnatlon to keep that clause in. Finding the
Senate conferees would not YIELD the House
conferees had undertaken to obviate its objects
by pdtting into the law that no contract should
be given to collect taxes under that arrange
ment unless statement was first filed under
| oath setting forth the companies, corporations
| or individuals who owed the taxes, ETC. That
was the only condition which the House
conferees would agree to the clause. He knew
| OF no act or part of an act that had been more
perslstently insisted on by one body and oppos
| ed by the otter, that it was gross Injustice to
say he had engineered the measure, or that any
member OF the Appropriation Committee bad
| engineered it.
MIR. Garfield then proceeded to reply to Mr..
Beck on the subject of estimates and appropri-
| atoms, and as to whether the sinking fund was
| or was not included in certain figures he as
sorting one position and Mr. Beck insisting on
the opposite pc stion.
The committee rose at $50 and the House
adjourned.
THE WAR ON Rum.