The New York herald., 1879-10-30
THE TILDEN TAX SUIT.

OPENING OF THE EXAMINATION DE BENE EssE-
WITNESS WHO DECLINED TO ANSWER IN
THE ABSENCE OF HIS BOOKS.
The examination de bene esse in the suit of the
United States against Samuel j. Tilden for the
covery Of alleged unpaid income tax was formally
begun yesterday before United States Commissioners
Lyman 1t is claimed by the government that cer-s
large transactions in the stock of the Pttsburg
Fort Wayne and Chicago Railroad were made in the
early part of 1869 by the firm OF Trevor Colgate.
stock brokers. and that most of these purchases,
aggregating about twenty-three thousand shares.
were made the account of Mr.. Tilden. 1t is also
claimed that the profits on these purchases were
very large, and that upon this income he paid no
tax This transaction it is said, took place JUST
before the reorganization Of the road and its lease
to the PENNSYLVANIA Railroad Company. with which
Mr.. Tildcn connected.
James b. Colgate yesterday called as Q witness
in this connection. A. j. .Vanderpoel and Thomas
Harland appeared for Mr.. Tilden. William Allen
Butler for Mr.. Colgate and Assistant United Statea
Attorney Clark for the government. Mr.. Colgate
could not answer any of the questions put to him
during the first two hours Of the examination. He
admitted that the firm had transactions in the stock
named and ut the time mentioned, but he could not
say to what amount or to whose account. az ten
years had elapsed. The frm had some transactions,
on Mr.. Tidens account. some OF which might have
been in Fort Wayne stock. but to be certain he
would have to refer to his books. which in number
sufficient TO make a law library. Mr.. Colgate
said it was quite likely that Mr.. Tilden could tell
better than he what transactions there were his
account.
AN UNWILLING WITNESS. -
Mr.. Colgate here protested against the line OF
animation, he did not think 1t proper to in.
qure into the details of his private business
that of anybody else Again he was questioned
the best OF his recollection the subject aud
piled that he had no recollection whatever He
could not say whether the sales and purchases
amounted to 500. 1000. 5000 0000 shares. but
thought they were over 100 He thought the stocks
advanced in the market at about the time of these
transactions and about the time the lease made
to the Pennsylvania Railroad Company. The witt
whether very large part of the stoci
which was purchased was not purchased
for Mr.. Tilden in the name OF Trevos
x Colgate To another question to whether the
purchases OF stock in which Mr.. Tilden inter.
csed about the time the reported lease the
Pennsylvania Central or shortly before IL. the wit
chased any stock for him. but II they did it must
have been about that time Mr. Colgate declined to-
answer the question following. whether at about
that time he sold Fort Wayne stock at . profit
which shared by him with Mr.. Tilden. Mr..
Clark SAID he would take that question before the
Court to its admissbty. and Mr.. Colgate said
he would prefer to answer 1t in court.
Mr. Clark said he wished this evidence complete
before the witness went to Europe, and after some
further argument the matter taken before Judge
Choate, who then sitting in Chambers. He de.
cided that Mr.. Colgate must answer tho question.
and 1t repeated to him upon their return to the
Commissioners room. The witness then replied
examining his hooks. Mr. Clark persisted in the
question. and Mr.. Colgate finally said that il was his
impression that there were some transactions in
which Mr.. Tlden Interested, but he could not
AT this time the examination was adjourned until
this morning. at which time Mr.. Colgate was noti-
ned to bring with him all books relating to the pur.
chases and sales OF this stock during the months Of
March and April, 1869.