The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1876-09-29

tanned In these six items ever existed, and
no one OF these pretended items has ever
been made the subject of a specific charge
by Mr.. Tilden against any individual or cor
poration whatever. Mr. Tlden became counsel
for the holders of various classes II bonds
secured upon the Pittsburg. Fort Wayne
and Chicago Railroad, which was and is q
railroad running through four different States
and built in sections by three different cor
porations; which were afterwards consolidate
ed. When Mr.. Tilden became counsel for
the bondholders in 1859, it had outstanding
nine different classes Of bonds, upon all of
| which default had been made, and its affairs
| in general were in apparently hopeless bank
ruptcy and confusion. To rescue this enter
prise Mr.. Tllden labored continually, and
much moro laboriously than lawyer ordi-
narily does in regard to any one particular
case, from 1859 to the early part Of 1862.
| The labor was particularly arduous during
the years 17G0 and 1861. Suits Of foreclos-
ure were instituted early in each of the States,
and these had so far progressed by June,
1861, that decrees of foreclosure and sale
were then entered The road was actually
sold on the oath Of October, 1861, and pos
session taken under the sale. OF course,
| this could not be accomplished until all the
conflicting interests-the nine different classes
| of bondholders, the secured creditors, the
unsecured creditors, and the Stockholders
| had been harmonized and satisfied nor un-
| til legislative acts adequate to meet case
such as had never before arisen, either here
or in England, had been devised, prepared
and successfully passed in four different
States. All this was accomplished under the
advice and with the labor of Mr.. Tldeu be-
fore the close ofthe year 1861. His engage
ments on account of this railroad during
that whole period were constant and en-
crossing. Whatever pay he received was
for the entire service as II whole--it was not
itemzed or appOrtioned.
THE INCOME TAX LAW.
The income tax law went into effect on the
first of January, 1862, and the incomes fall.
ing under its operations were those accruing
from and after said first day of January,
1862. Income which had accrued before
that time was exempt from its operation. /
do not think it necessary to occupy much
time or space in discussing the legal aspects
of this income question, or in sustaining the
right Of q citizen to receive and retain free
from income tax moneys which he had al
ready earned by his own labor in years when
no income tax existed. The rule on this
subject was early declared and promulgated
by the Internal Revenue Department itself
and is in full accord with these views. In
1861 Hon. George S. Boutwell,, then late
Commissioner of Internal Revenue prepared
manual of the Direct and Excise Tax
System, (Which MrSecretary Chase officially
approved and authorized. Under date Of
May, 1868, this manual contains(pp. 273 PA
the following decision by the Commissioner
of Internal Revenue "a merchants re.
turn of income should cover the business oi
the year 1862, excluding previous years
Physicians and dpawyers should include actua
receipts for services rendered in 1862 to-
gether with an estimate:Jof unrealized oil
contingent income due to that year" In
view of these decisions and official instruc.
tions Of the Internal Revenue Department
made up so that even if q different view had
since been authOritatively held and expressed
Mr.. Tilden would stand completely justified
But there is no authority for any different
view.
THE CHARGES IN DETAIL.
with these preliminary observations,
will proceed to examine the fabrications O
the Times in detail. The following is
copy of the Times statement
"THB FALSE INCOME RETURN OF SAMUEL j
TILDEN FOR 1852"
A fac-simile of the Democratic cnnaidate's nni
dnvit, contrastcd with several items of his Ia
come-A convincing though incomplete show
ing, which convicis MIR. ridden Of perjury IN
of cheating the GovorHment.
Income of 1862.
Some items of the (alIeged) True Statement.
| Feb l9-Fee for Trustees and Master Commits
sloners deed to the Purchasing Committee
OFT OF rn,tntsburg, nsg FORT wayne a chicago Rail ~
February ~ 2,aFss1 and expenses with refer
Pursuant to order ?f court, Pitts purg, Fort
| Navnc ~ Chicago railroad Cn-lpany go
March For drafting, &C., First Mortgage
Deed OF reconstructed CORPORATION, Pitts
burg. Fort Wayne and Chicago Railroad
March l-Fees for second Mortgage Deed
i Pitts6nrg, Fort Wayne and Chicago Rail-
March Fees Tor Third Mortgage Deed Pitts
burg, Fort Wayne and Chicago Railroad
March 2~Fees for final conveyance TO Rail '''
way Company, subject TO the mortgages,
Pittshurg, Fort Wayne and Chicago Rail-
June i4-Cu nberland Coal and Iron Company so
October ll-serytces 10 Second Mortgage
Rondho ders OF st. Louis, Alton and Terre
Haute Railroad COMPANY as per anidavit 1000
November 1-SerglcGs % First Mortgage
! Bonhholders OF st, Louis, Alton ana Terre
Haute Rallroad Company as per ardavlt 1900
| and Northwestern Railroad Company 1000
| Fees during year from Toledo and Wabash
Railroad Company 1900
Share OF bonds retained tur services during
| year connected with reconstruction OF Chi
Gago and Alton Railroad Company $500
Dry Dock Company 100
Total sOsOa
For expenses Of ofl,ce, repairs and
| taxes $4,000
For fees received, but not earncdin In
| 1862 l0bOO 10 OO
Net income on Democratic inter -
pirtation Of law $685.
Net Income as sworn to by Mr. TIL
Professional income fraudulently
| Concealeu 81 Ss
| SUMMARY.
Amt Amt OF taS
| Income subject 10 fve per cent ts9,OOV s4,45O
| Interest returned subject TO
| three per cent. T,1ls 2i3 Z
Portion OF unpaid debt TO the
Government si,s9O 4
EXAMINATION OF ITEMS.
First item.-This is entered under date O
February 10, 1862, as "Fee for Trustee
and Master Commissioners Deed &c
$4,000" No such charge was ever made
rendered or collected by Mr.. Tilden or an
one on his behalf at the date mentioned o
at any otherlime. The instru n,ent itself wa
a simple trustees and masters deed, princi
| nalIv oonsiat,un of ,an;taIo oJantal 60 Al