New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-09-21

Gov. Tildeu's explanation of his Income Tax is at
last furnished. 1t is in the form OF statement
by Judge James T.. Snnott of the Marine Court, who
was in Gov. Tilden's law office during the entire
period of the alleged delinquencies and the
Governors confidential law clerk. Mr.. Hewitt, as
Chairman of the National Committee, applied to
Judge Snnott for this statement and introduces it
to the public in a card, of which the following is
the substance:
Treasury for certified copies Of the income returns OF
Gov ridden and OF GOV Hayes ana on the second day OF
September mHde such an application. The copies APP
piled for have not been furnished, indeed has my
letter received the poor courtesy of an acknowledgment
Meanwhile The adversaries Of Gov. Tiden have appar-
emily had free TO these returns, and have
SUITED their PURPOSES submit this fact 10 the American
people without comment. Meanwhile receiving no reply
umens their custody as held in trust the Repui
can party and not tor the whole people, address,d
note 70 Judge James slnnott. who was the cOnden-
tial law clerk OF Gov. Tden during the whole
fUrce asking him examine the pretended account OF
Gov Tildens income during the year 1862 and furnish
with such explanations in regard thereto his
sary familiarity with the details would enable him to
supply.
that cut Of thirteen pretended items OF income amount
ing 10 $4,000 eleven items amounting 10 $SlOOO are
wholly fictitious, while OF the other two only one OF
$1,000 is entirely true and the second of $4,000 only
partially true.
return not Just and accurate statement Of
tine net income of Gov Tidcn, aer making such deduc-
II exception be taken 10 Judge slnnotts letter On the
ground IL does not cOutsn detailed statement Of
tine several items which the return of 1862 was
G ~ p9eT n9 10 Sf sc IS eSeG G io
ana very few professional men made such statements or
could now recall items, have kept the memoranda
upon which tEer returns were made.
II GOV. Tiden were not in nomination for the Prea
whose mere statement OF a fact would nave been
generally accepted rs the TRUTH ana fail to see why the
eminent position in wnch NJ mas been placed ny large
bOdy OF s eiOwcIzeus should be held To deract IRON
the sancti;y Of his OatB.
Over one-half of Judge Siunotts statement is oc-
cupcd with a detailed Tefutation of the charges
that in the year 1862 Gov. Tillen had received thir
teen seycraIly enumerated items OF income, mainly
fees from railroads. amounting ia all 10 $lOs,0OO.
These items in &c SnnGtt examines in detail pro-
nounce8 some of them utterly and wholly fictitious,
no such service having been rendered aad Gov.
Tlden not even having been in the employ Of tho
railroads at any time, THO service in Others having
been rendered years before TIE income tax was
levied and in still other having been rendered
without fees. As The TRIBUNE has never pub
lshed these charges la of which seemed 20 it some
what reckless and questionable, nor given them
editorial sanction there is ns reason for wcarying
readers with Judge Sinnotts reply. Omittug these,
the essential part of his letter is the following
Mr., Tden became counsel for The holders OF various
classes OF bonds secured upon the Pittsburgh Fort
Wayne and Chicago kar9ad which was ana - u n,'m
sections b. three different corporation WREN were
aficrward Consolidated. When Ny iiideh became tOnu
sci for the bomdhOders in 1889 IL had stand us nine
different classes 81 bonds upon an oi Whlcn d,at ~
been made, and its affairs IN genera were IN apparently
hopeless bankruptcy ana confusion 10 ftstHe 'hlH
enterprise Mr. 1Ildcn labOrod continually and much
more labOriousy than lawyer ordiunriy uoC5 ~ rtsi
any particular case from lsJ5 20 tle Sly FAR
1862 The labor was particularly aIdnous during tbc
suits Of foreclosure were Instituted early in each Of the
States, and these had 80 far progressed ny june, io"i
that DEGREES of foreclosure and sae were then Cu,fg
no
aud possession taken under the sale % cO,ir-9 tpl7
cud moi be accomplished until all the CONFLICTING nicr-
cstbe nine ain rent classes Of bGndhodcls, the
cured creditors the unsecured cred OlS ana thc so u
holders had been harmonized and satisfied nor unlii
legislative acts adequate To meet ease such Is hdd
never before arisen either here or in England hah been
devised, prepared ana successfully p'ssi ~ lTa
ent states. All this accomplished Lincipally under
TIC advice and with the labor Of Mr. Iiidcn before the
tins railroad during tnat whole period were constant ad
service ms q whoeIt was not itemized or apporioned
Ihc Tax law went into effect ON TIE lst OF Jan
uary 1862, aud the incomes falling under Us opcrlao
were those accruing from AID aer tue rd III Gay oi
January. 1862. Income which had accrued before That
time was exempt from ITS OPERATION g.,
uo ilo d,,nU the Legal spccs of tbs income ques
ton or in sustaining the right OF citizen 10 receive ana
ready earned by lis labor in years when no income
Inc je ON this subject was early declared and promu
gated by the ln6srnai Revenue Department tse and
IN fun accord with these views , a., So, o.
missioner OF Internal Revenue, prepared GlnU@ , 20
the Direct and Excise Tax SYSTEM which MI secretary
In. of a.
Under date of Nav 1868 this Manual contains (pp
273 Pa the following decision by tho COMMISSIONER
meTehSns return OF income should the business Of
the yssr ms and syrs hoi Include actual receipts for
services Icnder IN 1852 together with NJ estimate OF IN
Ina view of these decisions ana Official iistfncnhs Ol
the Internal Revenue Department. MI, lqyas ihcong ,
return foI 1862 was made up 80 tns, even
View nd since been authoriityey hcid ana @
Mr. Tilden would sand completely Jnslh1d bnt theie
is no authority for any Inherent view
linden Sinpott next proposes TO deal with the
original income tax charge, namely, That white III
the year 1862 Gov Tilden returned an income
subject TO taxation of s., lie has since sworn III
answer 10 another suit to receipt IN that year
from tine first and second mortgage bondholders OF
the ST. Louis, Alton and Terre Haute Railroad OF
500 900, $4,000 having been paid by the bond
holders of each class. Taking up first the charge Oh
a receipt of So 900 from the second mortgage oohd-
holders Judge SinnOtt says:
II Won will turn 10 page 81 folio li5 OF The Answer
On fCn,fv filed by the defendants, 81 whom MI liu'h
Ia one OF fOnr in suit brought by the ST LOUIS Aion
and Tcrre Haute Railroad Company yoH WIZ hhu 'oS'
That for such services defendant Tden made Gh2TS rye
Of against saa o on bs Of SAID sscGnd mortgage
bondhoiders on the I'm Of october 49, out q iand Coz
ment bet gesn themselves dat,d Nov l. 1852 en-.
Now then tine gnes3n ssenS iSse; made wh and When
were they renderodi Go ascertain TINS we hseu t
frther saw touching the statements In bill OF c9lnph
az 10 the services OF tho Defendant, Sahuei ~ lis'
that IG had long prior to and NJ the time OF Ihe com
OF TIE foreclosure gut IN the said m 0t com
plant mentioned, been the counsel Tor the secObu mort
gage bondhOlderS iu whose behalf seh SUIT was s.
tteJ and that nc was counsel also for the trustees OF
The said second mortgage DOndIOldcrs anu hu oco io'
SoY ann,Ts therefore that this money paid for
services runnrg through five years anterior 10 l9o%,
earned In that year The decree fixing ana coiirhns
tie rights OF the second mortgage DGnGoic' NoS I
isself took place a. carly March, lsoZ NO ap9icu