Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1876-09-29
NUMBER IA.
Mr.. Illden's Income Tax.

by the Times as going to make up an in
come Of some $50, 900 for the year 1862, and
pronounces them false-with one excep-
ton
As to the item for services to the bond
holders of the St. Louis, Alton and Terre
Haute railroad, Mr.. Sinnott says that the
services were rendered in 1858, 1859, 1860
and 1861, and no considerable part Of these
services belong to the year 1862. The foreelo-
sure proceedings in which they were rendered
had already reached decree in August,
1861, and the road was actually sold in
March, 1862; so there must have been at
least nine months of the year 1862 which
could not have called for these services.
In respect to the allegation that, after
| two years Of the income tax, Mr.. Tilden
made no return, but left his tax to be
assessed under the law, Mr. Sinnott says
"the statute gave the taxpayer the option
to take that course, and good reasons ex-
isted why scrupulous man should accept
that option. Mr.. Tilden received no favor
from the Government officers, and sought
none He did nothing but pay all they im-
posed on him. Nearly all his income from
investments paid the tax through the corpo-
rations, whose bonds and stocks he held,
without allowance for the lawful deductions.
On the residue, after the lawful deductions
were made, he believed at the time that, in
stead of paying less. he oftener paid more
than would have been the result of a full,
bat troublesome accounting"
We quote the principal portion of the
Times reply;
Our charges against Gov. Tilden have been
threefold FrSf-That on Dec. 26, 1868,
he swore to the correctness OF a return OF
his income in 1862 which was not only false
and fraudulent, when tested by notorious
facts in regard to Mr. Tilden's professional
earnings in that year, bat which was proved
to be so BY another statement made under
cath by Mr.. Tilden in 1876. Second-That
Mr.. Tilden made another obviously false re-
turn of his income for 1868 on May 20,
1861. IHrd-That in all the subse-
quent years, save one, during which
the income tax was levied, Mr. Tiden
failed to make any return of income as
required by law, but allowed himself to be
assessed on an amount very much below his
actual earnings, and that in so doing he |
adopted course which was both unpatri- |
otic and dishonest.
The second OF these charges Mr.. Sinnott |
does not take up at all, and the third he
attempts to answer by some statements evil |
IDENTIFY made by the authority, if not in the |
very words, of Gov. Tilden, which are de-
liberately and wilfully false. To the first
charge Mr.. Sinnott deyotes all of his specific |
assertions Let US see where they leave the |
case.
ErS-As to the items of services render |
ed in connection with the Pittsburg, Fort
Wayne and Chicago Railroad reconstruction,
the Times quoted the titles Of certain instru-
ments contained in ''tne manuel of docu-
ments" of the Pittsburg, Fort Wayne and
Chicago Railway, and by afiixing to each
certain charges believed to have been ap-
proximately correct, it showed how S2i 900
could have been earned from the bondhold-
ers in that year. Mr.. Sinnott, on behalf of
Mr.. Tilden, denies that the second of these
instruments was drawn by Mr.. Tilden, and
that item must, accordingly, be withdrawn.
lie does not deny that Mr.. Tilten drew the
others, but he states tnat no itemized ac-
count was ever rendered for them, that they
merely formed part of services extending
over series Of years, and the most impor
tant of these services were rendered prior to
1862. That answer Is simply deliberate
evasion of the main issue. which i. that
Mr.. Tilden learned at least S25 600 for
services rendered to this corporation in
1862. We promise to show, from records of
the court, and from the books OF the Pitts
burg, Fort Wayne and Chicago Railroad,
that the Times has very greatly understated
the amount earned by Mr. Tilden from this |
source in 1852
Thnd-In regard to the two fees of Sl0,-
600 each received for services rendered to
the bondholders Of the St. Louis, Alton and |
Terre llaute Railroad, Mr.. Tilden is. of
course, unable to get behind his oath. But, |
with his wonted short-sighted cunning, he
attempts to cover up the facts under cloud
of words. In all those there are but two
definite statements. and these are eyasive. |
|. That of the SO 900 received on October
l.. 1862, mo appreciable part, if any, can
be apportioned To the year 1862. :. That
of the $40 900 received on November :, mo |
considerable part of these services belong to
the year lS62." And yet, sixty-three pages,
or more than half OF Mr.. Tilden's answer to
the suit of the injured stockholders, are
taken up with the citation Of legal instru-
meuts purpOrting to have been made in lS6!.
1t was in March, ls62, that the railroad
was sold at public auction to Samuel j. Til
den and others, nominated as Purchasing
Committee it was in June Of the same year
tina; the formal conveyance Of the Trustee
] and Master Commissioners was effected II
Was in June that the certificate of incorpo-
ration Of the new company was fled and Its
| Directors appointed 1t was in June that the
new board, of which Mr.. Tilden was a men,
ber, held its first meeting and referred GER
tain important resolutions to its counsel,
| Samuel j. Tlden, and it was at various
dates in the same year that the final deeds OF
trust were executed. the distribution of new
/ bonds effected and the reconstruction" job
wound up, very much to the profit OF Samuel
| j. Tilden. On the whole, until a more pos
tive statement is forthcoming, we must ad
here TO our charge that $4,000 was
earned from the St. Louis. Alton and
Terre uaute corporation in 1852.
Foufh-It is explicitly denied that Mr..
Tilden received any fees. compensation. or
payments" from the Chicago and North
western Company in the Year 1862. 1t is
not denied, however, that he earned" such
an amount in 1862, and was paid for it IN
subsequent year. Mr.. Tilden must not CON-
fine his attention to receipts in one part
of his answer and TO earnings in another.
lie must take some one construction Of the
law and abide by it. For the present this
charge must be allowed to remain.
FTih-lt is asserted that the Toledo and
Wabash Railroad Company never was
client of Mr. Tilden, and that neither in
1862 nor at any other time did he receive
any fees from it. That We must accept as
conclusive. Proof of our charge was prom
ised from authorities in which we had conf
dence, but in its absence that item must be
Withdrawn.
SIth-lt is denied that S25 600 in bonds
was received in 1862 for services rendered
to the Chicago and Alton Railroad Company.
We never said that il was. On September
9th, we stated the amount of the bonds to
be S25, 900, but next day he made the fol-
lowing correction and added the following
facts On April 18th, 1868. Mr.. Tilden re-
ceived twenty bonds Of the Chicago and Al
ton Railroad, numbered from . PSI to 2,270,
both inclusive, for services rendered to that
Corporation in 1862. To answer this speci-
tic allegation, which can be proved by refer
ence to the books Of the company, MIR. Til
den presents this choice piece of pe,tifog-
ging:
| ''No bonds Eere retained rsesired for such
tices in 1867, large amount over received
including expenses and disbursements. Services
were rendered, and no doubt they were taken into
account in computing the groes earnings OF that
year"
Here we have the " receipt theory again
adopted because it suits better than that Of
:. earnings :" and here we have also pal
pable quibble preferred to plain statement
when there could be no possible difficulty in
meeting the charge as squarely as the pre-
ceding one. We must reiterate this charge
with renewed emphasis.