The New York herald., 1878-11-08
TILDEN's INCOME TAX.

ARGUMENT BEFORE JUDGE CHoATE TO SECURE
THE DISTRICT COURT OF THIS DIsTRIcT-CAN
IT BE DONE?
In obedience to . subpoena duces tecum issued to
Mr. Martin L. Sykes, secretary and treasurer of the
Chicago and Northwestern Railway Company. from
the United States District Court in this district
qring him to produce certain books. that gentleman
appeared in court yesterday. He was. however. un-
accompanied by any books and motion followed for
an attachment against him. The books required by
the subpoena were ledgers and two of common
stock and edgers and two of preferred stock of
the Chicago and Northwestern Railway Company;
also the stock register OF the Peninsular Railroad OF
Michigan. and other documents. They are to be used
in the same suit as the hooks Ileged to have been
spirited away from Michigan about month since
during examination in the suit of the United States
against Mr.. Tilden. OF the last named book and
documents their whereabouts Mr.. Sykes protested
they in the main Office Of the company in Chi
cago under the control Of the president OF the COM
pany. and not under his control
)" EXCHANGE OF TELEGRAMs.
Since receiving the subpoena he had autographed to
Chicago on the subject as follows:-
To B. G. Cook, Chicago and Northwestern Railway Com
Assistant United States District Attorney Sherman
makes the astonishing statement to Judge Choae
son s 1Sks % ssn s ss to
and would be sent on my request a. any time . rhsrs will
NJ. L. SYKES. Vice President.
To the foregoing the following reply was received
CHICAGO, Nov. 8, 1873
MI syxEs, New York ~. ...,ou.,, :
70 any Books o IN
gave him permission TO examine them fully IN the once
books sent to New York He was permitted examine
ia'' any ''0A' - '''' ''A'' '1'' - B. G. COOK
He witness) knew that if the solicitor advised the
president Of the company not to send the books they
would not be sent. long cross-examination OF Mr..
Sykes followed, in which District Attorney Woodford
and his assistant Mr. Sherman. took part while the
other side represented by Mr.. A. J. Vanderpoel
and Mr. j. s. Lawrence The substance of the
witness answers was that he never knew OF such y
request being previously made to the officers Of the
he had entire charge OF the Office and books in New
York. the stock register was kept here until filled up
and then sent to Chicago; the stock book is in the
immediate charge Of bookkeeper the books called
for written before he assumed his present re-
latons the New York oce he did not believe they
would send the books II he sent on request to that
effect
compelled to exhaust every means he has to produce
the books II he Is unable to do 80 they would seek
elsewhere for them.
HAS HE AUTHORITY?
Mr. j. s. Lawrence cited the statute of Illinois
quiring the company to keep stock books in its gen.
Judge Choate said it seemed to him the question
whether it could be legally assumed that the po-
siton of the witness in the company gave him unre-
stricted control Of the books.
Mr.. Sherman read provision Of the bylaws Of the
company the effect that the Secretary shall keep
all books and documents apperaining to his office, SO
ut all times to show the real condition Of the COM
pany's affairs. He shall keep books upon which
transfers of stocks shall be made by stockhoder
his attorney.
Mr. Lawrence maintained that If he undertook to
bring the books to this city he would have to assume
a responsibility not pertaining to his office.
General Woodford-The practical point is this. All
books of the company in New York in this gentle
mans physical custody. When he sends them away
they still in his legal custody.
Mr.. Sherman-The physical custody Is in Chicago;
but the legal custody Is in Mr.. Sykes
This concluded the discussion and Judge Choate
ordered the case to stand over until Monday, when
the witness must appear and the Of the United
States against Samuel J. Tilden. it is said, will be
called.
TILDEN's COUNSEL MYsTrFIED.
Counsel for Mr.. Tilden expressed themselves at
loss to know what the object of this application IN
this State could be, the government counsel had
had much opportunity as they requested to ex-
anime the books in Chicago
On behalf Of the government, Mr.. Sherman stated
that the object in procuring these particular books
to show the transfer of stock Of the Chicago and
Northwestern Railway to Mr.. Tilden in exchange for
stock Of the Peninsular Railway Of Mic higan.
The object Of this suit is already stated in the
HERALD to from Mr.. Tilden several hundred
thousand dollars alleged to bo due the government
for income