The New York herald., 1877-02-17
FRAUD IN PHILADELPHIA.

STEAL OF A MILLION YEAR-sE1IoCs
CHARGES AGAINST THE MERCANTILE TAX
APPRAIsERs-wHAT BECAME OF THE MONEY
FROM HOTEL LIcENsEs-A LUCRATIVE clN-
TENNIAL BUSINESS.
PHILADELPHIA Feb. 10, 1877.
scandaous revelations beginning como TO
light showing that through the manner IN
which the Mercantile Tax Appraisers In this
city have oecn conducting sneir affairs, the State
Treasury has been swndicd OF about
81, 0oo, 600 per annum- The medium through which
these discoveries are being brought to light the
State Nunicipa Reform Comm.s .ssion, rccentlv ap.
pointed by Governor Hartrann 10 inquire into tho
government Of the cities OF the Commonwealth rh,s
body has been sitting IN private session IN this city,
and have made such inquiries INTO the practices
Of she Mercantile Tax Appraisers and other
officers tina, 10 said tha, when they
conclude their ,abors they will present report
showing maladministration OF tho most
character rhcre can be no possible doub. that
ling revelations will DO made, as II Is known that
evidence has been taken by the comm proving
conclus,vey that 10 the once Of tho Mercantile Tax
Appraisers irregularities" have occurred, showing
that the State has lost very large sum OF money
assessed as mercantile taxes and still larger sum
through tho bad management OF those appointed 10
assess and collect these taxes
FOR INsrASck
Acco riding 10 tho testimony OF persons lately
ahmed there were las, year 1000 hotels and
similar places IN Philadelphia that should have paid
state tax OF 500 each Yet In only two cases,
Ear as the commission have discovered, has an
amount exceeding $50 ocen paid into the treasury for
any one II mas been shown that the proprletors OF
somo OF these hotels paid an amount approximating
the $780, these cases only $50 ever reached the
CITY treasury out OF the sum collected In each.
The testimony has also revealed that mercantile
m In tnulu -
place, have been exempted payment OF $40,
sderation OF certain amounts paid 10 outside parties
10 ''hx things" Sometimes whole blocks In the busi.
Less centres OF the city have been relieved OF their
legal assessments IN this shameful manner, tho irac
ton OF tho tax upon them actually paid into tho treas
ury being mere song. II has been calculated. as
stated above that tho loss to the State from this
has been ST. 600 900 year.
The manuer in winch this stupendous steal has been
conducted will be best ur dcrsood by extract from
the evidence taken at tho meeting OF She commission
on "Wednesday last where the method by which the
hotel licenses werc arranged was Investigated IL Is
the experience OF tho Hotel Aubry an establishment
built tor Centennial business AS Centennial hotels
almost innumcrablo in TINS city during the Exh-
bition and as the same practice was probably resored
10 with them all. some idea Of tho amount OF money
stolen eau bc imagined.
THE HOTEL AUBRy.
In May last at the time OF the Exhibition, tho Hotel
Aubry Company was informed that the license hang.
ting up IN the barroom must be pad tor The Treas
urcr, Mr.. James ". Packer twho tho witness
Appraisers office and inquired as to the amount be
paid. The clerk sad The license would cost $275. Mr.
Packer drew blank check and told the clerk 10 l II
UP This he did, making u payable 10 cash." and
then threw It In drawer. saying II was 'all right
1T may be all right Tor you, but not tor me-"
claimed the business-lke Treasurer. al don't gener-
ally pay away money IN that style want receipt
~ couldn't give you receipt Tor IT," the clerk
swcrcd apd before Mr. Packer could respond the clerk
hurried into the front room and held consultation
with certain parties Returning thence he said TO Mr.
Packer, ''You'I have to go 10 the Continental Hotel
with me- Before dong however, the Treasurer
tanned his check the way nc learned that chief
bartender Of tho Continental Hotel Mr. Donahue to
Packer lett tho check, promising 10 stopat the Office in
n lew days aud settle the account When tho Treas.
urcr went 10 tho Hotel Aubry, in the afternoon he
found the clerk in waiting, and was then informed
that he could get receipt Tor his check. Mr..
Packer not ready TO settle just then,
Ondhc following day he visited tho City rrcasurer's
Office and discovered that SCI 25 had been paid In
the license. Alta meeting Of tho Board OF Directors Of
the hotel few days subsequently, a resolution was
passcd forbiddnE the superIn ntenGent Mr. St0rcr,
any or the clerks paying tho license. The clerk
OF tho Mercantile Appraisers called In short
time for an alleged amount due OF sra
He thercupon took the license away There some
talk OF SUIT being entered against the company but
when Treasurer Packer and the President OF the
pany visited the city treasury they were assured that
the Office records could be used as evidence that the
license had been paid AS the clerk Of the appraisers
had told Mr.. Packer that Mr.. Donahuc had paid tho
money Mr.. Packcr called on that gentleman Tor
planation.
at does not mako any difference to you whether
you pay tho money TO Mr.. Tittermany in the CITY
Treasurer's Office" replied Mr. Donanuc.
~ am n property holder, said Mr. Packer, ''and
won allow one to receive that money except the
city, and the license Is not returned will expose
whole transaction. am willing 10 pay SCI 20, but
$275"
When Mr. Packer returned to the hotel the Ap-
prniser's clerk was in waiting with the license. III
took the SOL %, and gave the receipt.
These facts were vouchcd for by member OF the
commission to-day.