Remarks by the Editor.--Lorenzo writes to George Q. Cannon.--Makes
suggestions concerning the illegal assessment.--Letter two.--What
Lawyer Sutherland says.--Letter three.--A description of Scrip.--How
used.--Affidavits.--Correspondence.--Joseph F. Smith writes.--Lorenzo
responds.
In connection with the raid heretofore described, the diabolical
swindle of O. J. Hollister, United States assessor and collector of
internal revenue, by levying an assessment of $10,200 on the scrip
used by the association as a circulating medium in their business
departments, burst, like a thunderbolt, on the Brigham City Mercantile
and Manufacturing Association.
Hon. George Q. Cannon, Delegate, in Washington, to whom the following
letters were addressed, generously tendered his services in behalf
of the association. The following letters, copied from my brother's
journal, explain:
Brigham City, December 23, 1878.
_Hon. George Q. Cannon, Washington, D. C_.:
Dear Brother.--Yesterday I was informed by Mr. Webber, secretary of Z.
C. M. I., that you had telegraphed to the effect that United States
Commissioner Raum had about decided that "bills" under consideration
were taxable; and that two lawyers, Shellabarger and Wilson, in
Washington, had proposed to undertake the case of Zion's Co-operative
Institution for four hundred dollars, and, provided they win, one
thousand in addition; and that they would undertake our case for
two hundred dollars, and, if successful, an additional five hundred
dollars. I understand Zion's Co-operative has decided to accept the
proposition, and I write to say that if you see the least shadow
of prospect, please employ those lawyers in our behalf, and on you
communicating to me by letter or telegram, I will forward you a draft
of two hundred dollars, forthwith; and, if they succeed in our case,
will be responsible for the additional five hundred dollars.
Can you get payment of our assessment deferred till a decision is
reached? And how soon shall we be obliged to pay, on receiving notice,
etc.?
God bless you, my dear friend and brother,
Lorenzo Snow.
Brigham City, January 7TH, 1879.
_Hon. George Q. Cannon, Washington, D. C_.:
Dear Brother.--To-morrow I will mail you a brief, sworn to by the
president and directors of our association, and some affidavits for the
benefits of our counsel, and will send others as soon as they can be
obtained.
We have consulted Lawyer Sutherland, of Salt Lake--giving him a view
of our case. He expressed himself sanguine of winning, could he have
had the entire management; said he was acquainted with our counsel in
Washington; spoke highly of their abilities, and said if they failed
in our case, which is a peculiar one, the failure would occur through
lack of time and proper attention, and not thoroughly looking into the
real merits of the subject, sufficiently to make a just, true and full
presentation, and should, by no means, be mixed up with any other case,
as it embraced features entirely distinct, and of a weighty character,
in our favor, etc., and that our counsel should demand sufficient time
to get in all our testimony and affidavits, if it took the whole year;
and they should send copies of the affidavits against us, that we might
get up rebutting testimony.
I wish our counsel would inform us immediately what information and
affidavits they require--also send copies of affidavits made against us
that require rebutting testimony.
We feel that we have a right, and we claim it, to have a fair, full and
impartial investigation, which, if allowed, we fully believe, will give
a decision in our favor, and if not allowed, will prove ruinous to our
association.
Should we ask our counsel if they think it would be advantageous to
employ Lawyer Sutherland to work up our case here for them, they,
perhaps, would answer in the affirmative, as it might save them
time and trouble, which would almost commit us to the necessity of
gratifying their interest. Please suggest the idea, and let us know,
from you, their opinion. We would have to pay Lawyer Sutherland
one hundred dollars to begin with, and if circumstances required a
continuation of his labors, an increase of pay would be demanded.
Do those lawyers want further information? Do they want more
affidavits, and on what points? Please have them send immediately a
statement of what they want, and demand time for a fair, truthful and
impartial investigation. This is all we wish, and this we insist upon
and claim as our right; and if not allowed will do us a most serious
injury.
Respectfully,
Lorenzo Snow.
Brigham City, January 13TH, 1879.
_Hon. George Q. Cannon, Washington, D. C_.:
Dear Brother.--I write you now with a view of furnishing such
information as I apprehend may be useful to our counsel, in reference
to the general character and object of our association and our manner
of business, so far as concerns our "bills" and their circulation. We
aim in our brief and affidavits to establish two points:
First--That our currency has been limited in its circulation to our
association--that the officers and agents of the association have never
been authorized to pay it out to other parties.
Second--That it does not represent cash or legal money, and has
never been paid or received as cash, or in lieu thereof, and has no
authorized cash value.
There is possibly another point I ought to suggest for the
consideration of counsel. I think the law requires the assessor to make
returns at stated times--I think once in six months. Mr. Hollister made
no call upon us for report till last October, and a few days after
called personally at our office, examined our books, and in making out
his assessment list went back as far as 1875. Has he a legal right to
collect back taxes?
There may be other points that our attorneys will wish to argue, and
would like information, testimony or affidavits relative to, which, if
they will inform us, we will endeavor to furnish.
Respecting the first point, the limitation of scrip circulation,
the law makes bills taxable if "paid out"--that is, if a bank or
corporation pay its bills "out" to other parties, it thus renders
itself liable. But the peculiarities of our association--its aim and
policy--did not pay "out," but, as seen and fully expressed upon all
of our home department bills, being over nine-tenths of the amount
reported for assessment, instead of being "paid out," has been "paid
_in_," and its circulation confined within itself--within its own body
or person.
Our association is, in its organized business capacity, a person,
and, as such, it simply uses the scrip as a medium of exchange within
itself, for such articles only as it produces.
Our main object in making our bills payable only to employees and
stockholders, was this: We commenced with but little capital, the
people being, with scarcely an exception, very poor, some of them
almost destitute of means of living. We succeeded, after many years
of toil and perseverance to establish a tannery, boot and shoe shop,
woolen factory, and afterwards various additional minor branches of
industry were added, and have been fourteen years reaching our present
financial condition. It required nearly as much outlay of cash to
operate those main branches of industry as all the other departments
together, which made their products much nearer cash value than those
from the other departments. We have not been able to make leather for
sale, but are obliged to purchase more or less of imported, to supply
our shoe department. From these departments we have produced but very
little more than is required by the members and employees of our
association, who number nearly fifteen hundred.
Before the tax law was so amended as to affect co-operations, we issued
to employees and stockholders unrestricted bills, but found serious
trouble by persons not interested in our institution receiving them,
and requiring payment in the articles that were nearest to cash, and
which we could scarcely supply ourselves. People abroad knew that
Brigham City Mercantile and Manufacturing Association had a tannery,
boot and shoe shop, and woolen factory, and innocently imagined that
when they had a demand on our institution it meant payment in any
articles from any one of those departments they wished; and thought
they were greatly wronged if they were refused. To remedy this
difficulty we called in all that class of bills--determined in future
to keep them at home; therefore, when we commenced the new issue we
printed upon the face, "Good only to employees and stockholders." These
bills are, among us, called "Home D." _i. e., good for articles made in
our home departments_.
There are forty of these departments, each having a foreman, who
reports the time of the employees, weekly, to the secretary, who pays
them in these Home Ds. for five-sixths of their labor, and one-sixth in
the scrip representing merchandise, samples of which we enclose; and
refer you, also, to the petition presented to the commissioner.
The secretary, superintendent and every officer and agent of the
association are strictly forbidden to dispose of these Home D. bills
to any other than employees and stockholders, or to receive them from
any other party. I think this rule has been observed as to paying
out, but in some isolated cases, when persons, through ignorance
or misrepresentation, have been imposed upon, in taking our bills,
they have been received and redeemed, but only through protest and
compromise.
Again, our employees are almost exclusively stockholders or members
of a family whose head is a stockholder. You will see in our petition
that the object of our association was to furnish employment and
opportunities for learning trades and for reasonable remuneration for
labor, which, up to the present, is about all we have been able to
accomplish.
Mr. Hollister will probably endeavor to prove by affidavits, that we
"pay out" our bills to other than stockholders and employees; and he
may find some such who have had our bills; but I think no one will
testify under oath that he received them from any authorized agent, or
that they were redeemed without protest and injunction not to take them
again, etc.
Our store scrip is not limited in circulation by specification on its
face, though in fact it does not circulate outside our institution--it
is used to pay employees, and is good only for just what it calls for;
it comprises little less than one-tenth of the bills reported for
assessment.
A great distinction exists between these two classes of bills. The
store bills being good for any imported article in our store, while
the Home D. is not presentable at this department, and in no instance
has it ever been redeemed in such articles. In one respect, however,
these two classes are similar, to wit: neither of them is ever paid
or redeemed in cash or legal money, by any officer or agent of the
association. We pay and redeem in the kind designated upon the face of
the bills, and in nothing else.
We have done business to a considerable amount with outside
parties--the Utah Northern Railroad Company, the superintendent of the
_Ogden Junction_ printing office, the _Deseret News_ and _Salt Lake
Herald_, etc., and could get affidavits from those parties showing we
have never paid them our bills, but have given them direct orders to
draw on departments agreed upon.
If our counsel cannot relieve us of assessment on both classes of
bills, they may think it policy to separate them, and only claim
abatement on the "Home D." bills which, if allowed, would probably save
over $8,000.
The counsel will notice that the "Home D." bills are characteristically
different from bills issued by any other co-operation.
Yours affectionately,
Lorenzo Snow.
We copy the two following affidavits as specimens of many others that
were forwarded to Washington:
Territory of Utah,
Box Elder County,
_ss_.
January 28th, 1879.
Robert L. Fishburn, of Brigham City, in said county and Territory,
being duly sworn according to law, deposes and says that he has
occupied the position of chief clerk in the mercantile department of
Brigham City Mercantile and Manufacturing Association, during several
years last past, and that he has never received, nor known any other
clerk, secretary, superintendent, officer or agent of said Brigham City
Mercantile and Manufacturing Association to have received, by way of
exchange, or by way of payment for cash, or any legal tender, the scrip
used by said association.
Robert L. Fishburn.
Sworn and subscribed to before me, this 28th day of January, 1879.
John D. Burt,
Probate Judge, Box Elder County.
Territory of Utah,
Box Elder County,
_ss_.
James Pett, superintendent woolen factory; Charles Kelley,
superintendent boot and shoe department; I. C. Nielson, superintendent
cabinet department; O. W. Stohl, superintendent tailors' clothing
department; all of Brigham City Mercantile and Manufacturing
Association, of Brigham City, county and Territory aforesaid, being
duly sworn according to law, depose and say that we are, and have been
for a number of years last past, the salesmen of the articles made in
our respective departments, and that we have exchanged the greater part
of said articles for the scrip used by said association, which scrip we
have never recognized as possessing a cash value, and have never known
an instance in which said scrip has been received for cash or redeemed
in cash.
James Pett,
Charles Kelley,
I. C. Nielson,
O. W. Stohl.
Sworn and subscribed to before me, this 28th day of January, 1879.
John D. Burt,
Probate Judge, Box Elder County, Utah.
All efforts proved futile; "the powers that be" are opposed to union
and progress, and justice was not to be obtained by legal process.
Those people were forced to borrow ten thousand two hundred dollars
to meet an illegal, oppressive tax (which they paid under protest)
which, in reality, was nothing but a swindle, concocted and enforced by
heartless, unprincipled demagogues.
The note following is the honest expression of a broad and generous
heart, and worthy of preservation as a memorial of brotherly love:
Salt Lake City, OCTOBER 21ST, 1879.
_Elder Lorenzo Snow_:
My Dear Brother.--I have always felt, since the burning of your
factory, very sorry for your misfortune, and have often thought that
it would only take a few dollars from each of the many friends of home
industries to make you whole. The accompanying ten dollars does not
begin to express the extent of my sorrow, but I trust you will accept
it as a free-will offering from the not over abundant cash resources of
Your brother in the Gospel,
Joseph F. Smith.
Response:
Brigham City, October 23d, 1879.
_Dear Brother Joseph_:
I received your kind letter of the 21st inst. this morning, with the
enclosed ten dollars as a donation to Brigham City Association, in view
of our misfortunes. This token (so unexpected) given as manifestation
of your interest and sympathy, made me feel as though I wanted to
relieve my heart with a good, old fashioned cry; however, I retired
to my private room, where "prayer is wont to be made," and, with your
letter open in my hand, I poured out from the depths of my soul my
feelings of gratitude and thanksgiving to our Father in heaven for the
faith and encouragement which your expression of interest and sympathy
had awakened in my bosom.
I feel strong within me that your blessing and interest, like the
"widow's oil," will multiply your "ten dollars" into thousands until we
are relieved of our embarrassments.
Respectfully yours, in the Everlasting Covenant,
Lorenzo Snow.