Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-10-31
Tilden's Income Tax.


The.followng are the letters in the report OF Dis
trict Attorney Bliss in relation TO Gov. 1llden's
| income tax.
OFFICE OF THE DISTRICT Attorney OF THE
UNITED STATES FOR THE SOUTHERN DISTRICT
OF New YORK. y. y, Ocr. p, 1876.
| The Ten GREE; RAW, Co,en'r Iq'eraa' Psye-
| nue..
| SIR. Il Is proper that should report TO you
some recent occurrences in the course of the prep
| lratiOns have been making to carry out your
| instructions to commence an action against sam
| uel J. Tilden to recover unpaid income tax.
| learned with great detail and in manner that
satisfies me of the substantial accuracy of the in
formation that on or about the year 1862 $4,000
were paid to MIR. Iilden by the PittsbuIgh, Font
| Wayne and Chicago Railroad Company or on It's
| behalf; and that the entry Of that payment APP
peared upon the books of that company and was
| .ubstantiated by Mr.. Tilden's voucher, which was
| among the papers of that company. As Mr.. Til
| den for the year lSG9 paid a tax upon only Sl7,-
600 thought it at once essential and just to YER
| itv the information. | therefore requested a rev
enue agent TO 90 to Pittsburgh and procure ac
cess to the books aud papers of the company, new
| or for one moment doubling that the officers Of
great corporation would gladly render all the as
| ,istauce in their power to the Government. On
| arriving at Pittsburgh the revenue agent learned
that since publication of the allegations to Mr..
| Tilden's income tax the books and papers Of the
| company had been more directly transferred to
| the control of an officer of the company who Is
| a strong political friend of Mr.. Tildcu. That
| gentleman peremptO riy refused 10 permit access
| TO the book, and papers, and referred me to the
| President Of the COMPANY Mr.. l.. III. Never OF
this city. should add that, before leaving PITTS
| hurgh, the revenue agent obtained additional
proof OF the substantial accuracy of NV informa-
| lion, with evidence that the payment was made to
| Mr. 1ilden at time when the subordidates of the
| company were suffering for want of their just
| dues.
| Aatin fl,a ,pf,-r c,pat N
| oct. J, addressed him a letter requesting that he
| would give instructions to allow the books to be
| examined, and, IN reply, he promptly informed
| me that he had referred the matter to the direct
| Ols who were summoned to meet on the l2th. On
the 1th Mr.. Never wrote me TO know "unler what
| authority 0f law claimed the night" to examine
| the books of the company. On the l0th replied
that, while believed there was efficient autnori
| " in the law to compel the production Of the in
iormato on desired. | had not intended to place the
matter ~ on that footing hut only upon the foot
ing Of a request of the officers of great corpor-
| alton TO aid the Government in its forts TO re-
| cover taxes of which it had been deprived, by CIV
| ing it information a. TO matters which could not
| prejudice them, nor indeed any one except the
person, if any, who had escaped the payment Of
his just dues. Thoulh the directors meeting was
called for the 18th. received no reply until after
| a renewed application on my part Mr.. Meyer,
on the 23d, sent me a letter declining to give the
information and placing himself and the corhpa-
nv upon his and ia air legal rights, they claim
to believe them TO be. That letter l. a. follows &:
New York, Oct. %. 1876
GEORGE BLISS 4. S. district attorney, city.
| SIR Your note of tle DIST brought in to
me by your messenger this day only. In reply to
your inquiry beg leave to say that am advised
bv counsel that the Commissioner of the Internal
Revenue has no executive right to examine into
| Fort Wayne books for the purpose Indicated in
| your letter of oct .. Your own subsequent letter lot
Oct 20 in reply to mine asking for reference to
, thorizing statute confirms me in that view. Be-
.aIl ninr.s .ttntr for
| of oct. 20, you will need understand that | can
not act on a different opinion of the law. To do
| so would be a bad precedent for any company.
| What the law requires clearly shall certainly
| do; but if any uncertainty arises | shall take
advice and of course be governed by it. In CIV
ing this reply beg leave TO add that no dsrespect
is meant to you or any OF the Government officers
| If YOU consider you have the right and means To
| enforce, can only meet il by appeal TO the courts
| but of course what is done will be done on some
| body's responsibility, and that somebody will |
| think, be held to account Yours very respectful
, ly, &C.,
l.. II. MEYER, President pro TEN.
Pittsburgh, Fort Wayne and Chicago X. X Co.
1t is of course clear that at the proper time the
, Government and will compel the production
of the information desired. The refusal is only
5 of importance because it comes from a board oil
directors of whom Mr.. Tllden Is one and the mere
fact of refusal seems to me to confirm the truth
f Of the information had received. 1t can hardly
be believed that if the books and vouchers did no
| confirm the statements there would have beer
| anv hesitation in allowing access to them. | may
further add that find that for the year
1869, Mr.. Tden rendered services for which he
, charged, and received sixteen thousand dollar:
, from the Union Pacific Railroad Company
This is in addition to nine thousand dollars 49,
000) charged the same company for services ii
1867, 1868, and 1870, and which were paid TO and
receipted for by Mr.. Tilden. There is besides
s., 500 paid on March y, 1863 BY the same com
pany which Is receipted for on account of pro-
iessional services, the receipt being signed Sam
e uel j. Tilden, per james Z. Sinnot;" but ! pre-
| sumo there is no doubt Of Mr.. Sinnotts authority
to act for Mr.. Tilden. Mr. Tilden's account Il
, the L. Z. II. II. Company shows that he at thu
time covered by these charges rendered considera
| BILE services 10 the notorious Credit Mob
= Her such as advising with reference to bills il
equity prepared in its behalf, drawing a contrac
, | between the Credit MobIlier and Cakes Ames anC
| others, consulting as to the suit of McComl
against the Credit Mobilier (which suit led to the
disclosure of the operations of that concern), al
of which services may have been covered by the
| charge against the L. Il. II. X. Company, though
l have information which leads me to the opinion
that Mr.. Tilden also received considerable SUN.
| from the Credit Mobilier
/ have gathered good deal of information a:
| to charge, for services made by Mr.. Iilden anc
payments made to him for services to other cor
porations and persons during the period covered
| by the income tax. They all 90 to show that hs
escaped taxation on very large amount of in
come. | am still pursuing my examination, fo
, | though there is abundant ground for the immedi
ate commencement of action, it seems to m,
there reasons why delay is advisable, especial
ly brief delay now will not postpone the fina
trial of the cause, while il gives opportunity for
more careful and accurate preparation.
Your obedient servant
GEORGE BLISS, U. s. Attorney.