New-York tribune., 1874-03-25
WASHINGTON.
TIE sANBoRN CONTRACTS.


IN AN UNENvIABLE POSITION
tpy TELEGRAPH THE TRIBUSEI
w,surNrroN March 4-The Ways and Means
Committee did not examine Mr.. Sanborn to-uay
9TH reference to his remarkable contracts ana the
manner in which he divided the taxes with the
Goyernment. A very good preliminary day. nov"
aver was spent in examining two assistants OF NE
namely John d. Coughlin of New-York and John r
pels.erhpe of Philadelphia. 1t is doubtful II MT
sanborn himself could have made worse showing
sor the system under which he has 30 long
eoecad the Government of taxes. under
,over of a law which, in majority OF cases, has
hoen openly violated. The persons examined were
=, one time Assistant Assessors signed to special
aptv in the cities named. in connection with legacy
and succession taxes collected through the Office OF
the Attorney After leaving their o1ces they
hseame associated with John ID. Sanborn as sub-con
tractor uuder the second section OF the act OF May
6 ts72 Whether they took with them certain lnfor-
oation from the Government files is not yet proved
lthouob il is believed that such was the fact, and
shat this information was the bond of sympathy
between the two men and Mr.. Sanborn
Roth men devoted considerable time to-day TO the
effort of convincing the Committee of the great dlt
6culty expense, and trouble involved In the collec
ton of the legacy and succession taxes and Cough
lin said he did not think that 80 per cent was too
He was very positive on this point. He was asked
If he ever applied for contract under the section OF
the law referred to. He seemed at first little
uncertain but finally admitted that he believed
he did say something with reference TO the ques-
tion He was then shown a sworn application
signed by him and dated New-YOrk, March 25, 1873.
In this application which is directed to the Secre-
tary of the Treasury Cougbln saws he has been ln-
formed that a contract has been made between the
Secretary and one Mr.. John ID. Sanborn of Massa-
ebusettsr to pay the latter 25 per cent upon all
legacy and succession taxes collected upon
information furnished by the said SanbOTn. Cough
bn thereafter offers to enter into an agreement for
the same purpose at Is per cent The production OF
copy of this application was received by the wit
ness with evident astOnishment, for he had before
said that 50 per cent was not too high
rate TO pay, and yet he had offered to
polect the taxes for Is per cent. How he OBJ
taned the information that Sanborn received 25 per
cent was not developed. but it is possible he may
have been deceived by Sanborn himself, who was in
reality getting 80 per cent. The question was asked
Coughln what was the rate he obtained from San
born but he refused to answer The committee
room at once cleared, and it was proposed to
consider the refusal of the witness but he thought
better Of his action and SAID that he received 123
per cent on the amount collected.
The application TO Secretary Richardson on the
part of Coughn offering to make collections for Is
per cent, and the fact that no contract was ever
made with him by the Department. leaves Secretary
Richardson in rather serious position. Coughlin
said to-day that he could obtain no satisfaction
from the Treasury Department, and no answer
10 his letter made. The Govern
ment was paying Sanborn so per cent
for the same service that Coughlin, under oath,
offered TO perform for Is per cent, at saving of
B per cent to the Department. The position Of the
Secretary is not improved when it is considered that
Coughlin subsequently arranged with SanborD at o
still less rate. Coughlin's familiarity with
Che business and his knowledge of the
names etc, made his services particularly valu-
able and the same was the case with Belsterling
As the collections had to be made through the DIS
tict-Attoney's office that officer received five per
rent, and Mr.. Sanborn, without any trouble or
anxiety, pOcketed about 27l per cent of all cOllec
hOns. This was clear Of expenses, except what he
might be required TO pay distinguished lawyers in
case be got into trouble.
How much money COughlin collected is not
known, but Belsterng's way in Philadelphia was
not joyous one. The Supervisor was not disposed
to render the cheerful obedience that was accorded
to the name of Sanborn in other places, and he
would not admit that there were any taxes he could
not himself collect. He was not disposed to
assist in matters of that kind. Such cases
were matters Of record, and therefore there could
be no discovering" them. This was not pleasant
hight in which to view the subject in the mind of
Besterling, and he did not collect anything. He
was closely pressed with questions from all sides,
md was at last driven TO a corner, where he was
forced to make an acknowledgment that is
Dne of the most damaging to the
Sanborn- Butler Ring aud the Administration Office
holders. He finally admitted that if Simmons, Su-
pervisor at Boston, and Hawley. Supervisor at New
York, had exercised the same consideration for the
Government as Tuition did in Philadelphia, the Gov
eminent would have obtained the taxes without
Sanborns assistance and saved the Treasury 80 per
cent of the taxes collected.
member of the Committee says that at some
time during Coughns efforts he signed his name
officially as United States Special Assessor of
Legacy and Succession Taxes" which of itself is
contrary to law. Mr.. Sanborn was present during
the examination Of the two men to-day, and Will
himself take the stand tomorrow. AS matter OF
pTecaution the Committee obtained Of the House
permission to send for persons and papers, and au
thority to examine witnesses under oath. Tins was
rendered necessary in view of the possible refusal of
some Of witnesses to give testimony in the future
PLACEMENTS BY TWO or sANBoRN's AGENTs-How
LEGACY AND SUCCESSION TAXES WERE COLI
LECTED.
GENERAL PRESS DIsPAIcH.l
WASHINGTON, March A-The Committee on
ways ana Means held session this morning to give
hearing In the sanborn contracts matter MI sanborn
himself was present, attended by Mr.. Woodbridge an
eHRepresentative for Vermont, as counsel On being
notified that the Committee prepared to hear what
ever he had TO submit Mr.. sanborn suggested that be
had two witnesses present, who could not remain
another day IN Washington and whom he that
the Committee would first hear. The Committee ac-
heded 70 this rennesf and Raye hearing t Mr. Inhn ID