The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-09-27
BURKE In A BAD LIGHT.
EVIDENCE oE HIS wRoNGDoING
ACCUMULATING

Judge stansberry Tells Of Negotiating
Loans for the Major on Bonds Which
Have Since Been Proven Fraudu-
lent Substitution Disclosed for
Bonds Deposited by an Insurance
Company.
New ORLEANS, Sept. 26.-The staten ent
of Marsh Stoddard, cashier of the state
treasury during Maj. Burke's term, that he
called Maj. Burke's attention in 1856 to the
fact that coupons had been presented of
bonds supposed to have been destroyed,
was cabled to Maj. Burke in London. In
reply Maj. Burke says it is impossible to
attempt any explanation respecting publi-
cations Of this character of which he is
ignorant, touching matters Of years ago.
HOW DISCREPANCIES MIGHT EXIST.
He then shows how apparent discrepan-
ciss might exist in the payment of coupons
which are not always presented when due.
In conclusion he says: "If ! abandon my
business here, l will lose the results Of a six
months struggle. The day the papers are
signed releasing me from the trusts of
others, | will sail for Louisiana. l hold
myself solely and individually responsible
for every act of the office. and no person
should for an instant be permitted to bear
shadow of criticism on its account"
BURKE NOT SURPRISED.
Attorney General Rogers being inter-
viewed, said lie did not think that Mai.
Burke was surprised by the disclosures.
When the affairs Of his office we're examined
by the legislative committee, and his books
reported TO be correct, Maj. Burke natu-
rally felt relieved. He must have known,
Al,,A
there, but that the defalcation of his office
must eventually become known. He
further stated tia a state warrant which
had been paid long ago was recently pre-
sented for payment again, and it was found
that Maj. Burke had himself given the
warrant TO a ba K as collateral for loan.
INSURANCE. BONDS.
The attorney general further stated that
he had information that during Mai.
Burke's occupancy Of the treasurer's office
an insurance company which had deposited
number of state bonds for the security of
local policy holders as required by law,
after Mr.. Pipes became treasurer, desired
to go out of business aud demanded the re-
turn of the bonds. Mr.. Pipes turned over
package Llaced in the vaults to the credit
Of the corporation by his predecessor, but
the company refused to receive it on the
ground tha it did not contain the bonds
deposited by it.
BURKE MADE GOOD THE DIFFERENCE.
Their bonds were of denomination of 81 900
and those in the packages returned were
$l00 bonds. There was q difference in the
value Of the securities, and the company
naturally wanted its own bonds The mat
ter was called to the attention Of Mai.
Burke and he made good the difference By
giving his check for SIG. Judge
Rogers said that brokers and other hold
ers of fraudulent bonds were averse to
giving any information as TO where they
got them. This was all wrong, he said, for
1t was the duty of every one to assist in
clearing up the matter to protect the inno-
cent and to bring the guilty to punishment.
He thought all OF those who refused to talk
now would be induced to speak when Judi
c1al Investigation was instituted.
TO GO BEFORE THE GRAND JURY.
1t is stated that Judge Mari will charge
the grand jury when his court opens next
Tuesday, to investigate the fraudulent issue
of bonds, and TO bring indictments against
those whom it finds were gagged in placing
the invalid securities on the market.
BURKE AS A BORROWER.
Judge W. B. Stsns5erry, who was for
some time engaged with ex-Treasurer Burke
In business capacity, makes a statement
showing thaV some years ago, no negotiated
for Maj Burke at different times loans
amounting to thousands Of dollars, always
depositinz as collateral state bonds handed
to him by Maj. Burke for that purpose. In
the first transactions made in 1884 and 1885
the numbers Of the bonds were kept.
MANY OF THEM FRAUDULENT.
Comparing them With the numbers now
published by Treasurer Pipes as fraudulent
be finds that among the bonds handled by
him there were nearly S20,0e0 fraudulent.
After the first few transactions he did not
Keep the numbers, because Maj. Burke told
MIN 1t was not necessary as he (Burke) had
them. To many of these bonds over due
coupons we're attached.
WHO ADVANCED THE MONEY.
Few leans Of small amounts were made
oY some Of the brokers, and in two or three
Instances by cotton firms in the city. Trans
acuons with the banks were with the heads
of the institutions The bonds were in
every inst nee accepted without question,
no word being uttered to excite suspicion
That they were not regularly issued and
valid obligations of the state. As such l
negotiated them, and | had no doubt of
tnelr validity until the recent disclosures. y
Judge Stansberry's statement was made
On the advice Of his attorney. 1t shows
tnaU Treasurer Burke as far back as 1884
was using bonds then in his keeping as state
treasurer as cola eral in borrowing money