The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-05-05
TREASURY TRICKS.
THOSE CoNTRA ACTS.
REPORT OF THE COMMITTEE.

.i REPORT OF THE COMMITTEE.
SAWYER AND BANFIELD CATCH
IT-BoUTwELL NOT PASSED OVER IN SILENCE
LOOSE MANAGEMENT OF THE TREASURY
CONTRADICTIONS AND DIsAGREEMENTs OF
HIGH oFFICIALS-PRECAUTIONS TO BE
TAKEN.
WASHING TON, May Ain the House of Repre-
sentatives to-day, Charles Foster, of Ohio, from
the committee on ways aud meang, submitted a
report in the matter of the Sanborn contracts.
The committee, in the first place. state that
they have examined, so far as they know, all
the parties in any way connected with the ex-
ecut,on of the law under which the Sanborn
contracts were made, and that they annex to the
report statement of the testimony. They then
proceed as follows: The Forty second Congress,
a its second session, reps aled all the laws
to informers, far related TO internal revenue
taxes, but in the last House of the same
there was engrafted on the legislative, executive
and judicial appropriation bills provision
of security of so slight significance as to have
been added as the last half of sentence in one
of the usual paragraphs relating to the internal
revenue bureau, wis rein provisions have been
The provision is here quoted. Under the pro-
visions OF this law contracts were made with w.
H. Kelsev, Malcolm Campbell, ]. Nichol-
SON Albert, John Clark, and John d.
Sanborn, The commissioner gives a history OF
the Sanborn contract and shows that he had
added to ii large number of names of persons
alleged to have been guilty of with holding taxes
and legacy and succession taxes On the Ist Of
July, loi3 SanbOrn again asked to amend his
contract and Richardson, then secretary of the
treasury, on the 9Th OF July follow ing, added TO
his contract the names OF go railroad companies
taxes upon dividends and interest paid on
the bonds. The commissioner finds that
the Information furnished by paid oficer
! of the government on which the collections
were made was placed at the disposal OF Sanborn
who. ava ling himself OF the information paid
farl fhGaf Ina
| the collection OF the very claims thus brought
| to light and found to be due the government.
| 1t further appears from the testimony of San
born that when he applied for this railroad con-
tract, he furnished list of railroads taken from
| railroad manuel or guide,comprising the names
OF 592 railroad companies being substantially
the entire list of railroads in the United States.
That while he acknowledged The delinquency OF
only from loo to l50 of them. he had no knowl-
edge whatever of a delinquency on the part of
the remaining 400 or $50. 1t also appears that
when he so represented IL to the officers of the
| treasury department. he was there told that ait
didn't make any difference" and to "put them
| all in" Whereupon he made an affidavit that
| the entire 592 railroad companies were delin-
quent, and were indebted to the government.
| They were accordingly added TO his contract.
the officers of the treasury department. inclu-
ding the secretary of the treasury himself, seem
/ to have no recollection OF this tact sworn to
| before the committee by Sanborn in reference 70
THE LIST OF RAILROADS rohi.
included in his contract. Here follows a copy
well and Kelsey. The committee calls attention
to the fact that the law provides for the employ
ment fthree persons to assist the proper officers
in discovering and collecting, while the con-
tracts provide that the contrscs ors may proceed
j 10 collect, thus totally ignoring the internal
revenue officers, while Ii should have been stip-
uiated that they should assist the officers. Sec
reary Boutwell,. on The sth of June, 1872. by the
| Il st order OF the treasury department
issued I'm relation TO the employment OF
persons under this act, directed that parties
applying for contracts should u his satisfaction,
set forth In written statement under oath TO be
held in his Office, the character In detail o the
claim, the name OF the pei son, firm or corpora
/ uJn Withholding money. the laws by violation
of which the money had been withheld, and
/ the evidence by Which the claim was 10 be sup
ported; upon doing which written contract
| will be made upon such laws aud conditions as
/ he should deem best for the Interests of the
United States. The committee believes that
! this requirement of Secretary Boutwell, was in
ex-c' conformity to the law, but the members
are unable Ia find in any that
the conditions as set for by the secretary were
| G implied with. 1t Is evident that the proper
offct RS OF the government referred to in the law
could only have been taken 10 mean the Of
| ficets OF the int rnal revenue. The committee
cannot ascertain thar the commissioner OF In
tern reNen ne. OF any fjer officer of his depart
mrnt, was CONSULTED b f. AT the time, or since
the contrscie were made ar hat he was adj
| vtsed as 10 the makingo the clntracts or of the
character of the claims which were intended
thereby 10 be collected. In fact, 1t is SHOWN
that the commissioner wrote q letter against
the manner OF these collections, TO the
| secretary, which has never been answered. In
deed, this very important officer, to whom be
longs exclusively the collection OF these taxes,
appears to have been studiously ignored by the
secretary OF the treasury and the officers In the
office Of the secretary, and without the knowl
| direci ed to assist these contractors and in no
| ease can the committee ind that the contractors
assisted this oficer. The whole power Of the in