Sanborn Incident
Encyclopedia
The Sanborn incident or Sanborn contract was an American
political scandal which occurred in 1874.
William Adams Richardson
, Ulysses S. Grant
’s Secretary of the Treasury, hired a private citizen, John D. Sanborn, to collect $427,000 in unpaid taxes. Richardson agreed Sanborn could keep half of what he collected. Sanborn kept $213,000, of which $156,000 went to his various assistants.
On January 10, 1874, Sanborn and two others were indicted for revenue fraud. Sanborn's defense was that he was under contract from the government due to a rider in a 1872 appropriations bill created by congressman William H. Kelsey
. This bill allowed the Secretary of the Treasury to hire three persons to "discover and collect" unknown taxes to the United States government. If they collected they would receive 50% commission. What Sanborn did instead was take already existing tax cases, and put them on his contract, so when they came in, he would collect 50%. When the charges came, and congress investigated the documents. In the following testimony, Richardson said he didn't read the contracts, he resigned few months later. Sanborn was acquitted of the charges because he was under contract to collect those taxes, but a scandal still rocked the country from January to May 1874.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
political scandal which occurred in 1874.
William Adams Richardson
William Adams Richardson
William Adams Richardson was an American judge and politician.Born in Tyngsborough, Massachusetts, he graduated from Pinkerton Academy, Lawrence Academy at Groton, and attended Harvard University, graduating in 1843....
, Ulysses S. Grant
Ulysses S. Grant
Ulysses S. Grant was the 18th President of the United States as well as military commander during the Civil War and post-war Reconstruction periods. Under Grant's command, the Union Army defeated the Confederate military and ended the Confederate States of America...
’s Secretary of the Treasury, hired a private citizen, John D. Sanborn, to collect $427,000 in unpaid taxes. Richardson agreed Sanborn could keep half of what he collected. Sanborn kept $213,000, of which $156,000 went to his various assistants.
On January 10, 1874, Sanborn and two others were indicted for revenue fraud. Sanborn's defense was that he was under contract from the government due to a rider in a 1872 appropriations bill created by congressman William H. Kelsey
William H. Kelsey
William Henry Kelsey was a U.S. Representative from New York.Born in Smyrna, New York, Kelsey attended the common schools.He studied law.He was admitted to the bar in 1843 and commenced practice in Geneseo, New York....
. This bill allowed the Secretary of the Treasury to hire three persons to "discover and collect" unknown taxes to the United States government. If they collected they would receive 50% commission. What Sanborn did instead was take already existing tax cases, and put them on his contract, so when they came in, he would collect 50%. When the charges came, and congress investigated the documents. In the following testimony, Richardson said he didn't read the contracts, he resigned few months later. Sanborn was acquitted of the charges because he was under contract to collect those taxes, but a scandal still rocked the country from January to May 1874.