The sun., 1878-12-01
PRICE THREE CENTS.
MIR. TILDEN'S INCOME TAX.
DECISION IN NEW YORK AND THAT
RENDERED IN MICHIGAN
ALLEGATIONS with Regard 20 Mr. TiIden'. Coua-
sci Fees-His Letter on the Currency 4,
1885 Extensive Railroad Operatfoas.

| Judge ChOato decided In favor OF the Gov
ernmont yesterday. In the Tiden tax case, on
motion to open tho packages OF dcpositions
takon at Chicago. Boston. and Marauetto.
These deposltions contain avcrments that Mr..
| Tilden received large sums OF money for which
he was liable to pay an income tax. but which
was not duly returned according to law. Mr..
Tildens lawyers fought stubbornly against
opening the depositions, alleging. among othes
things. that they contained scandalous natter
which might be published to tho injury OF Mr..
Tilden. Tho papers were opened and fled
| In tho Marquette deposition there IL n lettss
| from Mr.. Tilden to William L. Wetmore dated
Oct. g. 1865. Mr.. Tilden said =" cannot AZ
this moment calculate with certainty tho course
OF financial and political events. On tho one
hand. the public anticipation Of the speedy clos
ing up OF tho war may create an indsposition
to buy. except from hand to mouth. and the inn
aginatlon Of the people may fancy immediats
peace and return toward specie payments and
tho reduction OF values to a gold standard. On
| the other hand. peace may not be 40 near az
Ia hoped for. II II came II would take q
long while to rctract tho present immense
paper circulation. unless II should be Increased
to explosion. Tho Government Is now spend
ing more and borrowing more every day than
before. The next thirty or fifty days will de-
velop important events concerning all business.
Within that time we shall know whether
there IL 10 be n further issue of lee
gal tenders. which I deem probable We
shall need all your faculties to guide the busl-
noss wisely. You must fully advise mo about
the n. Y. and keep mo advised. We mus,
Judge as soon as possible whether II is best tG
to divide the risk OF the future by making sales
OF part OF our productions even n we have
to do so At fixed prices provided we arc ablo at
the same tlme to FIX the cost of producing IT,.
throw out ihcse Views that you may be consid.
ering the whole case and we may be- both rcady
TO act, Give me the present IDEAS which prevail
us 10 the demand for ores IN tho spring What
90 yom say to buying. II we can the Excelsior
Mr.. wetmorc testified in the Marquette dcpo.
sitions that Mr.. Tdcn had received large sums
for his interest in the New York Iron Mine
Tho Governmcpt AYERS that Mr., Tllen made
no Ireturn OF these amounts. Mr. Tildon as.
anything.
ON tho subject ~ wetmorc's tcstinonv Mr.
Harland said With regard to tho depositIor
Of Metmore. who was mining agent OF the New
York Iron Mine. Of which Mr.. Tilden was Prcsi.
dent and principal stock owner I will say. liz
January. 1877. Wetmoro came down to New
leSk, sept Tor ihc secretary Of the company
Of notes and other paper signel IN the name :.
tho company; that he had sold them and APP
pT3pria,ed ne ne proceeds for his own pcrsolA
Tiien. refused TO conceal the fraud and i'm.
medately removed Mr.. Metmorc., The iatteI
witness against the company 10 charge IL with
the loss Of his fraudulent papers. He also be.
deavor To charge Mr.. Tiidcn with nominal and
unroallzcd profits pretended 10 be earned bJ
never ablc TO declare dividend until after the
income tax was rcpealcd. had never realized
Pron,so Sn21pgh to pay its aehis prior to 1871
hold That profits are not taxable until they are
reTti,i5ed W., so that they may he divide
decided q suit brought against the Iron Com.
pany on i9e fraudulent paper u wetmorc The
sign notes in tho name Of the company. and
sets aside the Judgment agninst the company
procured by Wctmore's testimony in the court
The Boston deposition ia simply the testi-
mony that Mr.. rildcn received foe of t2j OO9
for professional services To the Union Pacific
l,allroad. This was paid in 1872. but tho Gov
dored in years when the tax was due and
should nave been returned as earnings of thoss
years: On Mr. TildSn's part is said that the
and, therefore. the money could not have been
coiected 50 rs t3 have hecn liablo to income tax.
>, Tx, q, ChIGaGo deposition is an effort to show
HAT Mr.. Tidcn made large sum Of money bJ
the consolidation Of the penlnsular Railroad
with the Chicago and Northwestern Railroad
for his profess lonal services II is claimed thai
inGG9mG tax Is quo from this source.
The Pittsburgh deposition is with regard "a
the payment Of i5O,OOO 10 Mr. Tiidon. This, hs
gambling the p,ttshGrgh INA Fort Wayne isaii.
road Company. When the work was finished
ne ne ireci9rs 80 81 lhe company met aud voted MIN
income 10 be assessed. and no AYERS that lie IL
not liable iot more. as he paid all that was dc.
mAndcd ny the revenue officers.
These depositions have not yet been rccoivoe
IN evidence, and Will be offered when the cause
~ trled-probably in February next.
Epp he Ctio,yi rn.,
MARQUETTE Mich. NOV. 2G--Thc supreme
Court Of Michigan has lust scored onc more
point FOR the statesman Of Gramcrcy Park ir
one oi the numerous suits which have beeI
brought against him as principal owner Of ths
New York Iron Mine. Tho facts ara briefly "a
The New York Iron Mine is a corporation or
Gani11d "a 1850, BY samuel J. Tidcn and VIII
Marquette County. Two-thrls of the stock wal
owned by Tilden and the other third 10y Wet
I'LL, i,, WIZ, WaS n liio geneial ngent mere haNnl
9hnrge oi th9 comrany's affairs at the mine
Tllden attending to the finances in New York
and acting as President and Treasurer. Wet
drafts on Tildcn. but for the last six years Of hid
connection with the mine he generally drew al
in The treasury since is72;'.
II,: In isI5: it Is c;Tniiped. Weimorc, without ths
promissory notes in tho name of tho mine rails.
ing money thereon for his own individual nur.
poses, taking care Of tho notes himself whom
ihcy matured This continued until June is75'
whon Metmore tound himself unah 10 TO caro- foI
Ihe i notes 20 80 male ani ne h9,ders brought sun
discovered that Wctmoro Lad made i70uOO oi
such notes. Tor which the mno had received NJ
Of 5000 600 IN the company = treasury; but az
Notmorc had In thc mcqn time gone into bank
claimed To- be innocent holders, and brought
suit against the IN no. as stated.
The first case was that Of the First National
Bank Of Negauncr. which held slG 900 Of tins
paper. tho trial being had IN the Circuit Court
Of January last The trial last,d eight days,
being hoty contested. and resulted In a ycrliH
in favor Of tho plainuf, Tho mining company
took the case To the supreme Court wherc i
was argued in October last. That court has
lust decided that Wotmorc had no power 10
mnke the notes in question: Coy, Tlden haa
been grossly mlsreprrscntod In this suit by tha
Republican papers, but he had never held out
Mctmore ~ having any authority to make
promissory notes in the name O; the mine az
mere was no necessity for making tlcm. and
the banks that loaned the money 10 Wctmors
upon them knew that the mine was owned
principally by rildrn, and they should hava
known that having charge Of tho finances he
would not authorize Wctmore 20 pay ten per
cont. interest when he could borrow money in
New York nj much less rate. If the mins
needed to borrow ht all.
The case was stuhbornly contested through
out. and has excited a great deal ~ interest in
TINS section, aud among mino owners and cOr-
R9rhllons generally throughout tho country.
Tho decision Is regarded ns u righteous one,
The Supreme Court Of Michigan is Justly re-
garled NJ ono ~ the abcst Tribunals In the
land and tlGuHl uuuuimtus uslv bua