The daily citizen. [volume] (Asheville, N.C.) 1889-1890, 1889-09-27
LOUISIANA'S BONDS.
MYSTERY STILL HANGS ALL
ABOUT THEM.
Statements Made by Prominent
Men which Look BADLY for ex-
Treasurer Burke, Though his
Cables Read all Right.


Treasurer Burke, Though his
Cables Read all Right.
NEW ORLEANS, September 26.-The
statement of Marsh StOddart, cashier OF
the State treasury during Major Burke S
term, that he had called Burke's atter-
ton in 1886 to the fact that coupons
had been presented Of bonds supposed to
have been DESTROYED, was Cabled to Mai.
Burke in London. In reply, Burke says
il is impossible to attempt any eXplana
ton respecting publications of this char
acter of which he is ignorant touching
matters of years ago. He then shows
how apparent discrepancies might exist
in the payment Of coupons which are not
always presented when due. In concu-
sion he says: 'lf abandon my business
here, | will lose the results of six months
struggle The day papers are sighed releas-
ing me from the trusts of Others will
sail for Louisiana. | hold myself solely
and Individually responsible for every act
of the Office, and no person should for an
instant he permitted to bear shadow OF
criticism on its account.
Attorney General Rogers, being inter
viewed said he did not think that Maj.
Burke was surprised by disclosures when
the affairs OF his Office were examined by
the legislative committee, and his books
reported to be correct. Bul Ike naturally
felt relieved. He must have known, how
ever, that the matter would not end
there, but that the dctllcation in his Of
fee must eventually become known. He
further stated that State warrant
which had been paid long ago was re-
Gently presented for payment again, and
it was found that Burke had himself
given the warrant to the bank as a col
lateral for loan.
The Attorney General further stated
that he had information that during
Burkc's occupancy of the treasurer S
Office an insurance company which had
deposited a number of state bonds foi
the security of local policy holders as re-
quired by law, after Pipes became
treasurer desired to go out of the bust
ness and demanded Il return of the
bonds. Pipes turned over the package
placed in the vaults to the credit of he
corporation by his predecessor, but the
company refused to receive it on the
ground that it did not contain the bonds
deposited by it. Their bonds were Of the
denomination of 1000 and those in the
packages returned were 100 bonds
There was difference in the value OF the
securities and the company naturally
wanted it's own bonds. The matter was
callefto the attention of Maj. Burke and
he made good the difference by giving his
check for SIG.
Judge Rogers said that Burke and other
holders of fraudulent bonds were averSc
to giving any information as to where
they got them. This was all wrong, he
said, as it was the duty of every one to
assist in clearing up the matter to pro-
tect the innocent and to bring the guilty
tn punishment. He thought all those
who refused to talk now would be in
duced to speak when judicial investiga-
ton was instituted.
1t is stated that Judge Mari will charge
the grand jury when his court opens next
Tuesday to investigate the fraudulent is
sue of bonds, and to bring in indictments
against those whom it finds were ell
gagged in placing invalid securities on the
market
Judge w. b. Stansberry, who was
for some time engaged with eX-
Treasurer Burke in a business capacity,
made a statement showing that some
years ago he negotiated loans for Mai
Burke at different times amounting to
thousands OF dollars, always depositing
as collateral State bonds handed to him
by Mai. Burke for that purpose. In the
first transactions, made in 1884 and
1885, the numbers of the bonds were
kept Comparing them with the num-
bers now published by treasurer Pipes
as fraudulent, he finds that among the
bonds handled by him there were nearly
10000 fraudulent. After the first few
transactions he did not keep the
numbers because Burke told him
it was not necessary as he (Burkel had
them. To many of these bonds overdue
coupons were attached. A few loans Of
small amounts were made by some OF
the brokers, and in two or three instances
by cotton firms in the city. Transactions
with the banks were with the heads of the
institutions. The bonds were i'll every
instance accepted without question, no
word being uttered to excite suspicion
that they were not regularly issued and
valid obligations OF the State. AS such
| negotiated them, and | had no doubt
of their validity until the recent distlos-
ureS.
Stansberry's statement was made on
the advice OF his attorney. 1t shows that
treasurer Burke, as far back as 1854,
was using bonds then i'll lis keeping as
State treasurer as collateral III borrow
ing money for his own usc.