National Republican. (Washington City (D.C.)) 1872-1888, 1874-06-23
GIG,955 So

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And these are but small part of the SUM
behind, which are justly due the United States,
and are of the same kind Of taxes which honest
men have been obliged to pay. Now the ques
ton Is, whether it was well by moieties to col
lect these many millions of dollars which are
owed to the United States by the dishonest
men who have evaded and escaped taxes, either
those who have received legscies left by rich
relatives or by corporations which have not
made returns Of their dividends or surplui
profits, or by men who have received incomes
In this country and have refused to make the
returns thereof to the tax gstherer; or shall
we allow these vast sums to remain I'm.
collected and the Government to be defrauded
| Of them, or give portion, and large portion
perhaps, to somebody who will bear the ex
pense, give the labor, and bear the odlum Oh
enforcing their payment
Ssnborn was going on In good faith, as hs
testities, having expended the principal part o.
the very large sum Of money which ne re-
eeived Us nloiety, of the money which he did
collect in gathering up Information by which
these debts to the Government might be col
lected; and he would have collected some mil
lions If he had been allowed to pursue bis in
vestigations under the contract.
The Committee on Ways and Means have
taken some three hundred pages of testimony;
have examined everybody in every possible
form, and they have tailed to find any illegal
act done by Sanborn in collecting these taxes,
or that he ever attempted to collect any tax
that was not due, or return any to any one o.
the. revenue officers who offered to assist him
that was not due, or that he failed to return 70
the Treasury'any moneys collected. At least
the report ofthe committee does not show the
contrary. There are but few things objected
against him by the committee: First, that he
put in large number Of railroads In his con-
tract as defaulters when he had not examined
the books of all Of them. But he testiies thai
he had examined hundred and fifty of them
BY himself and his agents, and he found every
one Of them delinquent in taxes to the United
States, and he assumed that the others were
in like condition. At least he thought It safe
to swear that he believed they were, which
was all that the law required when he made
his affidavit to the Treasury Department.
Mr.. Sanborn collected from the Delaware
and Lsckawsuns Railroad Company the large
delinquent tax, of years standing, of 500 ,6S5 q
and the Committee on Ways and Means grayely
report collision with somebody In the Treasury
in order to do that, because the very cay after
the check from the railroad company officer
was sent Mr.. Sanborn wrote to the Treasury
that the check had been sent, aud gave the
number of the check. Now, your committee
ask, how could Mr.. Sanborn have known that
unless he had been in collision with somebody
In the Treasury, because Mr.. Odell, the treas
urer of the railroad, swears nobody knew the
amount of that check but the president of the
road, himself, and his clerk. What wise and
penetrating committee; as only three parsons
knew Of the check therefore, fourth person
must have told about It
Now It so happens, as am informed, thai
this very clerk was the very man who gave
Sanborn the Information as to the delinquency
course, who told him Of the check which he as
clerk had written. Any one who examines
the testimony will come to the conclusion that
this great amount never would have been col
lected, some Of Il having been for nearly four
years overdue, If It had not been for the moietY
system under which sanborn was operating.
But there Is one very curious fact about this
delinquent tax of this railroad of nearly one
hundred thousand dollars, which shows how
the fraud runs In line through some men.
II Is said: "If you scratch Russian you viii
find Tartar underneath;" and 1t so happens
IL you scratch one of the firm of Phelps.
Dodge & Co. you viii always find defraudef
Of the revenue, for 1t turns out that tho chair
man Of the finance committee of this railroad
which was delinquent IN this S100, 900 tax was
Mr.. William Z. Dodge, of the firm Of Phelps,
Dodge & Co., the "Christian gentleman" and
the "honest merchant, whose firm imports ae
American works Of art leaden statues of tha
Goddess Of Liberty, even at the risk of having
her nose bruised when she is thrown into the
melting pot 10 come out as lead pipe.
But 1t is not my purpose at this hour of the
evening, nor would It be OF advantage to 90
into examination Of this system of collection
of delinquent taxes. It has been long in prae-
tiee; 1t has commended itself TO administrative
officers heretofore. It has Its uses; it has it,
defects and disadvantages; and although some
four to six millions, which, In my belief, never
win be got without Il, might have been got
under II, yet as the House has chosen TO repeal
Il, and as It only deals with past debts and de.
linquent taxes, II passes out Of the line of my
duty as Legislator, especially As the whole
internal revenues IN the future do not depend
In any degree upon It, as do our customs
revenues upon the other part Of the moiety sys-
TEN. II Is well enough to try the experiment
OF repeating this law and finding out whether
the Commissioner Of Internal Revenue can
make the collections.
Nor Is it my duty or purpose to defend Mr..
Sanborn, whether he did well or Ill. That Is
bis affair. did not promote his getting the
contract had nothing to do with It's fulfill
ment By him. II the law Is an unwise one let
IL be repealed, and In that have neither more
norle interest or NishIt han every other men,
berof this House. But take leave to say
that Il Is not brave or manly In those gentle
men who passed the law 20 make seape-goats
Of the ofacsrs who execute the law they
passed. - 20 .'g q. = ila 5aa =,
The COMMITTEES on WAYS and Means have
spent several months and large amount Of
money In seeming examination OF the question
Of the propriety Of the law, and If that time
and money were spent IN good faith to ascer-
tain whether the law Of May 8, 1S72, giving
The moiety contracts to those who should col,
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