Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1874-04-08
The Sanborn Case.

ITtOuHf presents lnc law ana lne Inct
, in the moiety cases 30 plainly, tha
wo give IL without abbreviation.
When the House of Representative
last February called upon the Secro
tary of the Treasury for the docu
ments bearing upon tho contracts mad,
under this law, Mr.. Richardson strange
ly kept back some important paper
of which VIC have juste5tainod kuowl
edge. IL appears that a few days af
ter the passage Of the bill person
who had discovered that certain lane
grant railroad was indebted to th,
Government in the sum OF about So,
600 900, filed the required nflidavits
and applied for contract to collect
the money. But this person did no,
understand the game. His appica
ton was not granted, nor has the debt
ever been recovered. 1t was privately
arranged that this enormous monopo.
ly should be given TO Gen. Buffers
man Sanborn, although for short
time other persons-Kelscy, Ebert,
Clark, and Campbell-were allowed,
perhaps Tor the sake of appearances,
TO try their prentice hands. The un-
derstanding was that Sanborn should
''treeze out" the informers who had
already gone ON tho track of certain
frauds, and should then take posses.
sion of cases already in the hands of
the regular officers, act as the medium
for turning the money over TO the
Treasury, and retain for his services
fifty per cent. OF the gross proceeds.
Accordingly the law granting moieties
to inlormers in internal revenue cases
was repealed in juno, and few weeks
later Mr.. Sanborn made his first con.
tract with the Treasury. Informers,
with valuab. Q clues 10 their possession,
suddenly found themselves at the
mercy of Sanborn and Butler. The
fortunes upon which they had counted
vanished in the air. Tho money
which their hands were stretched out
TO grasp turned TO dead leaves. They
sold out for mere trife to the new
monopollst, who seemed to have no
diiliucty in getting from the Depart
ment any privilege ho asked for
Whenever he applied for contract
covering hundreds Of names of per.
sons and corporations, but giving no
particulars Of tho Indebtedness or the
evidence upon which no depended, il
was granted as a matter of course
II in any case there was the slightes,
hesitation or inquiry, the least effort
to determine whether the taxes he
proposed to collect were already in
the hands of the regular officers, no
trace thereof appears in the official
correspondence. On the contrary it
is clear that the tax lists were taken
out OF the hands of the collectors, and
coTuptly transferred, according to pre-
ivous secret understanding, to this
private farmer of the revenue.
1t will be remembered that the law
authorized the Secretary of the Treas
ury to employ private persons TO "as-
slst the proper officers" in "discover-
ing and collecting taxes wrongfully
withheld and it was urged by its ap
ologists in Congress that its object
was to recover money which the Gov
ernment could not reach by its ordina.
ry agencies The very first act of the
Treasury Department under the con.
tract exposed the dishonesty of this
protenso, and the fraudulent charactcg
OF the whole arrangement. Mr. Bout. |
well issued a general order TO super |
visors and collectors "to assist John
,. Sanborn," and to place the records
Of their offices at his disposal. From
these records Sanborn obtained the
names included in his contract. The
of the Treasury next instruct.
ed the District Attorneys to give no.
lice to the collectors "not TO receive
payment in cases embraced in Mr..
Sanborns contract and authorized
Them to institute suits at Mr.. Sanborn's
request. Sanborn was to pay their
ices out of bis moiety, and il has been
learned that the compensation of the
District Attorney under this bargain
was five per cent, though under the
aw he on y received two per cent.
Sanborn now proceeded to use the
'egular collectors and supervisors as
MS subordinates, causing them to col.
Get the taxes from the information in
heir own Offices, and to hand the
amount to him, when be paid halfinto
.he Treasury, and retained the rest.
In other words, he intercepted the
axes on their way TO Washington, and
.he Secretary Of the Treasury allowed
iim to charge fifty per cent. for that
very problcmatical servic. In several
'ases he is shown to have received
his commission upon payments with
which he had not even nominal on
connection; 10 the Phelps
,aso he induced the collector to insist
lpon tho payment Of a tax not yet
iue, SO that he could pocket half Of It;
md there is the graycst reason to be.
icvc that when taxes were voluntarily
,aid TO the Secretary without San.
,orn's knowlcdgn, somebody in the
Department Immediately sent him
word, so that he could write an official
etter, pretending TO enclose" the
heck which was already in tie Treas. ,
Try, and demanding his fifty per cent
We arc ashamed to say that tho do. ,
nand seems TO have been promptly ;
md invariably complied with.
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