Anti-Moiety Acts

The public outcry over the Sanborn incident caused the Grant administration to abolish the practice of appointing special treasury agents to collect commissions or moieties on delinquent taxes.

The Revenue Act restricted the U.S. Treasury Department to contract to no more than three informers to collect taxes from delinquent taxpayers or businesses.

The law was initially designed to prevent or reduce the number of false accusations and blackmail by the informers appointed by the Secretary of Treasury to collect taxes.

In August 1872 acting Secretary of Treasury William A. Richardson contracted informer collector John D. Sanborn who would receive 50% commissions from delinquent taxes collected from railroads, distillers, and others.

Sanborn immediately began to collect taxes by intimidation, receiving upwards of $420,000 in profit commissions which he split with unknown partners.