National Republican. (Washington City (D.C.)) 1872-1888, 1874-04-08
TIE sANBORN CONTRACTS.

The investigation into the Sanborn con.
tracts. by the Comm. of Ways and
Means, has developed al rphase of the
war of the monopolists against the indus
tries of the country. A plain statement Of
the facts in the case will place the question
within the easy comprehension of the most
ordinary intellect. The original law pro-
viding for the assessment and collection OF
the internal revenue allowed not only mole
ties to informers in the collection of delin-
Quent taxes, but also condemned the delin-
quents to pay heavy penalties. Later on,
through the influence of the rich, this pro-
vision was modified by scaling down these
moieties into what were termed informers'
shares, which were less than moiety, and
graduated by inverse ratio, reducing the
percentage of shares as the sums delinquent
increased. This modification operated as a
premium to fraud, as the delinquents were
enabled to default with lmpunity, by offer
ing to dishonest officers and other inform
ers greater inducements to wink at frauds
than they were enabled to realize from in
formations laid against them.
Finally, after the income tax and that
upon lcgacies and SUGGESTIONS and interest
and dividends were repealed it was repre-
sented to the Treasury that large sums of
this class of taxes were owing to the Gov
eminent by reason of having never been
reported or hunted up by the revenue Off
GERS. Although no great importance was
attached to these representations, the Com.
missioner of Internal Revenue and the Sec
ratary of the Treasury, naturally thinking
that their operations had been very effective
because their revenues exceeded their esti-
mates and made good showing of aggregate
receipts, the law authorizing moiety contracts
was passed. The parties who were instru-
mental In securing the passage Of the law,
and who obtained the first contract, did not
meet with favorable success. They were
not familiar with the subject or were lack
ing in the nerve necessary to meet and con-
test the bravado of the delinquents, many
of whom were wealthy corporations and
rich estates
Mr.. Sanborn finally agreed to contract
for the collection of these delinquencies
upon the basis of moiety, the payments in
all cases to be made to the officers of the
Treasury upon his information. Of the
first one hundred and fifty railway corpora
tions that he examined he found every one
delinquent, although they affected 10 be
utterly innocent of any such shortcoming.
In the case of the Delaware, Lackawanna
and Western railway, from which 500, 900
was collected upon his information, that
corporation claimed that 1t had overpaid
the Government 800. This instance is
cited to show the efrontery of these mo-
nopolists in their efforts to evade the pay
ment of just taxes. The others, so far
as they have been examined. are found to
be in the same category. 1t is estimated
from fair and reliable data that there is now
delinquencles of this character, susceptible
of collection, to the enormous sum of $780,
600, 900.
Let it be remembered that this vast
amount is attempted to be wrenched from
the pockets of the honest taxpayers for the
benefit of the corporate and wealthy classes.
The poor laborer and mechanic and small
who pay their quota of tax
alton as consumers are delinquent in moth
ing They have paid to the last farthing.
1t is the wealthy classes who have kept
back part of the price. 1t is these wealthy
classes that Beck, Foster & Co. are seek
ing to protect. 1t is the moneyed monopo-
lists of the great cities of the country that
the metropolitan press are endeavoring to
screen by their Misrepresentation Of the
testimony taken before the committee.
1t is the invariable practice of the Gov
eminent, and has been so from time imme-
mortal, to pay for information Of the de-
linquency Of its taxpayers. 1t is the duty
of every honest man to give information to
compel delinquents to pay their just dues to
the Government. His own interest de-
mands that he should do it. Every time
that he screens, or assists in screening, one
of them he becomes an accessory to the
frard