The New York herald., 1876-09-21
Eleven Out Of Thirteen Of the Pretended
Items Purely Fictitious.
FACTS STATED IND ADSURDITIEO EXPOSED
The Governors Services to the Railroad
and What He Was Paid.
THE LAW AND HOW 1T WAS COMPLIED WITH.

Democratic Committee, in letter addressed 10 the
public under date OF the Goth inst, refers to the
charges which havc been made in one OF the leading
republican papers OF the city that Governor Tilden
made false Of his income tor 1852, and states
that he applied to the Secretary OF the Treasury Tor
certified copies Of the income returns OF Governor Til
den and Of Governor Hayes, which copies were not
furnished nor any acknowledgment given his letter.
Meanwhile says Mr. Hewitt, the adversarios of Gov
Tden hare apparently had free access to these,
and have even been permitted TO photo-lthosraph so
much Of them suited their purpose. Mr. Hewitt
then proceeds to say
addressed pote to Judge James p. Sinnott who
the confidential law CLERK OF Governor Tiden dur
ing the whole period winch tho law imposing an
Income in iOrce, asking him to examine the
pretended account OF Governor T:dens income during
the year 1862 published by the Times, and furnish me
with such explanations in regard thereto his neces
sary familiarity with the details would enable hm 10
supply. have this day received his reply presenting
. iuti aud entlrciy satisfactory reiutation OF the
charges oi the Times
HIS answer herewith submitted 70 the public shows
that out oi thi teen pretended items of income
amounting 10 $40. 900 eleven items, amounting to
$S4. 0OO, are who y fictitious, while OF the other two
Que OF 81 900 entirely true, and the second Of
$26, 900 Is only partially irue
REPLY OF JUDGE sxxorr.
NEw YoRK, sept 20, 1876.
Hon. ABRAM s HEWITT. Charman:-
My DEAR SIR have received your note, with the
copy OF the Times of September g. reference Mr.
Tiidens income return ior 1862 aud have taken tho
earliest time which my official engagements would
permit to send you The information you solicit.
was In Mr.. TIlden's law oice during the whole Pc
rod covered by the allegations OF tho Times and
more familiar than any other person-perhaps. even,
and with the earnings ol his ohco II being among my
duties 10 keep such record or memoranda ol them as
wac preserved
The charges TO which you specially refer are cpto-
mzed and p!acarded the front page Of the Times,
where, In parallel columns are displayed fac sim.ls
Of Mr. Tdens income tax return for the year 1862,
conirasted with pretended statement OF his real in
come tor that year.
nave examined this statement with care, and from
my personal knowledge IND to be false in every I'M
p0rtant particular.
The first thing IN this fabrication Of the Times which
arrested attention, the evden: intent msead
which characlerzes 1t purports to be made up Of
Items the wording Of which varied in order
TO give tho reader the that these items had been
taken directly from bills accounts which had been
rendered TO somo one or had been entered In some
For example, the first item roads, "February 49,
Fee Tor trustees and master mm ssioners' ueed,
feren. and resSsmrebrusry SS Fees and EXPENSES
with reference to deed" &c.; and the third Item put
IN still another and different mode OF EXPRESSION
thus:-"Aarcn l. For drafting, &c, first NOR gage
ceeL;' while in the fourth item the word ees'' and
this time without the "expenses'0 Is brought into
The intent of these contrivanees is to give
coor to these bogus items und the appearance OF being
eopicd from some real paper
The first SIX items OF tins statement relate matters
connected with tho Pittsbug, Fort Wayne and Chicago
Railway. and q right understanding or Mr. Tilden's
reatOns 10 that enterprise prior " and during tho
year 1852, ls important ut the outset
Now, the TACT is thut such accounts
tanned IN these items ever existed, and one Ut
these pretended items has been mado tho subject
Of specific charge oy MIR. Tilden against any ind
vdua or corporation whatever.
Mr. Tidcn became counsel the holders of various
classes OF bonus secured upon the Pittsburg, Fort
road running through iour different States, and
built IN secuons by three different corporations,
which were aftsrward consolidated. When Mr.
1Iden became counsel Tor the b0ndholders IN 1859.
had outstanding different classes OF p0nds
all Of whi.h default bad been made, and It's Affairs in
general were IN apparently hopeless bankruptcy aud
confusion. To rescue this enterprise Mr. Tden
labored continually. and much moro laboriously than
lawyer ordinarily does in regard 70 any particular
casc from 1859 TO The early part oil 1862 The labor
was particularly ardaous during the years 1850 and
HE Stales and these had lar progressed by June,
ls6l that DEGREES Of foreclosure aud sale were then
entered. The road Was actually sold on tho oath oil
OCTOBER 1S6l and possession taken under the sale.
Of course this could not De accomplished until all the
connicting interests, the nine different classes OF
creditors aud the stockholders had been harnonzed
and satisfied nor until legislative acts adequate 10
meet q case such as had never before arisen, either
here England, had been devised, prepared and
successfully passed In four different States All this
plished principally advice and with
the labor OF Mr. Tndcn before The close OF the year
1SGl HIS engagements on account or this railroad
during that whole period were constant and engrossng
Whatever pay he received Tor the entire tervce
awholc, 1t was not temized or apportioned
The Income Tax law went into OBJECT on the LIST OF
y
tion those accrung from and after the said lst
day OF January, 1862 Income which had accrued be-
fore that time exempt from its operation.
do not think 1t necessary TO occupy much time or
space discussing tho legal aspects OF this income
question or IN sustaining inc rant oil citizen 70 re-
he had already earned by bis own labor In years when
no income tax existed.
The rule this subject was early declared and pro-
mugatcd by the Internal Revenue Department itself
aud is in full accord with these vicwa
In 1868 Hon George 5. Boutwell,, then late Commits
Direct and Excise Tax SYSTEM which Mr. Secretary
Chase officially approved and authorized.
Under date o May, 1868, tho Manual contains (pp.
273, 274 the following decision by the Commissioner
oil Internal Revcnue:-
merchants income should cover tho business
oi,he year ise2, excluding previous years
services "snasrsa osher wS aa s:mss IF a
realized or continsent income due to that year
In view of these decisions Official instructions OF
the Internal Revenue Department Mr. Tilden's Income
return ior 1862 made up SO tna even II different
view had since been auhorativey held and expressed,
Mr. Tden would stand completely justified But there
Is no authority Tor any different view.
WIN these preliminary observations, Will proceed
TO examine the aoricasions OF the Times In dola The
following is q copy OF the Ttmes' satcment:-
'Tnk rALsk INCOME RETURN or SAMUEL TILDxS ron 1852
trss,ed with several items Of his income convincing
thush incompcte showing winch convicts Mr riIden Of
Some Item, !. Of shs I.Ilsssd true .,a,smsn.;m
sionsr Deed to the Purchasing Committee Of
rlt,sburx. Fort Wayne and Chicago Ksroad
rssru;ry and c.pcnse. with reference to
Deed ~ former railroad company, pursuant TO or
der Of Court fittsburg Fort Wayne and Chicago
March For drsisisx, c. first Mortgage Deed ci
reconstructed corporation. Pittsburg, Fort Wayne
%SEssr Deed p.Ors
For Wayne and chicago Railroad Company. $500
March l-Fces ,or, Third Mortgage Deed Pittsburg.
fort Wayne and Chicago Railroad Company $500
March Fees Tor hnai convey snce to Railway
Company subject To the mortgages. Pttsburg
Fort v Wmyns aud Chicago Railroad Company 5.OyO
June 14-Cumberland Coal and Iron Company 500
october 17-Servces to Second Mortynce bond.
holders Of ~. Louis. Alton and Tsrre Hnnts Rail.
road COMPANY ver affidavit 10000
ers oi So. Louis. All and ferre uaute RaiIroad
Company; ., per .aIasy,. 10000
Northwestern Railroad Company; ........... 10000
comp.ny 1900
connected with reconstruction OF Chicago and
Alton RAILROAD COMPANY. ........;......:... 2s,ooo
Dock Company. 1000