The Portland daily press., 1874-01-27
Washington News and Gossip.
GEN. BUTLER's SCHEME.


The arrest of Mr.. Sanborn and Supervisor
Hawlay in New York, for Withholding moneys
due the government, has in connection with the
investigation in progress by the Committee on
Ways and Means, brought to light matter
the discovery of which, has caused much ex-
element in the Treasury Department, and
among parties in its interest outside. When
the law abolishing moieties was passed,
one to take its place ! was passed, mainly
through the exertions of Gen. Butler Under
the law which was repealed, the internal rev.
enue office limited the fees which could be re-
ceived in any case to $4,000. Under the law
which Mr.. Butler worked into its place, and
contracts made under it, those who were fortu-
nate received fifty per cent. of all sums collect
ed. The history of the case is this: A proyis
ion was tackled on to the legislative and execu
tive appropriation bill of May, 1872, authoriz-
ing the Secretary of the Treasury to employ not
more than three persons to assist the proper
officers of the government in discovering and
collecting any money belonging to the United
States, whenever some is withheld by persons
or corporations, upou such terms and conditions
as he shall deem best for the interests of the
United States, the compensation to be paid to
such persons out of the money or property Sc
cured to the United States. Contracts were
awarded to do this kind of business to a Mr..
Sanboru, next friend of Gen. Butler; to Pres
by Smith and Greene of this district, and to
Representative Kelsey of New York, or his
next friend. The business proved exceedingly
pTontabe. MI. Sanborn having already collect
ed nearly 100000, half of which he received
Dack under his contract One strange matter
connected with the high rate allowed by these
contracts is, that in nearly all cases where reye-
nue. agents are used to DrOSecutA do1pcuacts
and get half of the money collected, it goes to
those holding contracts the moment the money
reaches the Treasury. Investigation also shows
that the average cost of collecting such arrear-
ages by special agents has been about two per
cent. on the amount collected. Proceedings
against Sanborn and the Deputy Collector and
the suspension in Brooklyn was ordered from
the department of justice, which had no
of these contracts with the Treas
ury Department and now finds that it will be
necessary to dismiss the case.
DR.. KELLEY IN A CORNER.
The Saturday afternoon session of the House
for debate was unusually lively. Besides the
speeches of Robbins of North Carolina and
Cain of South Carolina on civil rights, there
were quite number of financial speeches. Late
in the afternoon Kelley of Pennsylvania got the
floor, and gave the House another dose of his
nuddled views on the financial situation. He
stated, among other things, that there were
$3.50, OOO, 900 of Currency in the country to-day
wing ready to be invested in the proposed
, 65-1OO bonds. He was then asked by Mr..
Hawley of Connecticut, why there was any ne
,essty for more money If there was so much to
De had now. Mr.. Kelley did not manifest a |
disposition to grapple with this poser, where
upon MI. Dawes, who was sitting near him,