The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-26
BURKE GOT $4,000
PROFIT FROM CANAL
%Commissary Head Witness for
U. s. in Panama Graft
Case.
GOETHALS ON THE STAND

Tn seal Of secrecy was lifted yestsr-
day by the Federal Government from
he story OF alleged grating In the
comm,ssary department In the Panama
Canal Zone. John T. Burke. char ged
with conspiracy IN several cases, ad-
mitted on the witness stand before
Judge Hunt in the Criminal Branch OF
the Federal District Court that he re-
ceived a pront OF more than $4,000
from the sale OF tobacco TO the commits
sary department. Of which he was tho
From his testimony II was gathered
that tho total profits made by three
men In six years by the sale Of 5000. 900
worth OF cross cut French tobacco for
the laborers on the ana was about
$4,000. He said that an agreement
was made by himself. one Ricardo Ber-
mudez. an important man In Central
America. and Jacob L. ala The lat
ter Is now on trial before Judge Hunt.
accused of conspiring to defraud the
United States Government.
Burke's testimony, given In aid of the
Governments prosecution OF the case
against Salas. is OF Importance to the
Government. for the possibility Is that
Burke. indicted In Ave different cases
growing out Of alleged grating. may
furnish testimony In all those instances:
that he has already gone over the mat
ters with the Government officials. In
View OF the fact that the alleged graft
ing In the commissary department in
TIM ~ nAt TAna l. sstll ,,nA.s a,ol-.
tion 1t Is possible that there may be
other revelations.
Admits Getting $4,000.
While Burke has admitted getting
moro than s22, 900 in profits from the
tobacco business on the Isthmus. he Is
accused In four other instances Of hav-
ing received sl2.75o from other con-
cornS that supplied articles for tho 18TH
nian comm.ssary department II was
clear from Burke's testimony in regard
10 the tobacco business that he regarded
the whole transaction as legitimate.
When Assistant United States Attor-
ney Carstarphen called Burke TO tho
stand ne was asked II ne was willing
to testify concerning tho facts material
10 this case freely and Voluntarily"
He said he was. and when asked II he
had been promised immunity. he an
nounctd In "A clear voice 7 have
neither asked nor been promised i'm
munity."
In answer to questions Burke said ne
knew Rermudez and that he had met
Salas, the defendant. IN a store In Cris-
tobal In 1907. but he only talked to him
once. and then through an Interpreter.
Early IN 1905" ne said, y had q
talk In the Imperial Hotel in Colon with
Bermudez. We, the comnissary depart
ment. were In the market for tobacco
for the laborers. Bermudez said he
knew where he could get tho tobacco.
Salas and he. he said. had money they
were ready 10 put into the business and
by 40 doing could supply the tobacco
cheap. that II an arrangement could
be made and the tobacco sold ] would
get one-third OF the profits OF the ven
ture, ! told him that I would make
the arrangement with the provision that
the tobacco should be sold as cheap as
anybody else could purchase Il and I
consented 20 the arrangement"
a letter signed by Burke In which he
ordered Salas 70 furnish tobacco to che
commissary department az prices not
named was put IN evidence. Burke tes-
TILED that Bernudez had submitted a
verbal bid. Tina order. which was 20
supply nifty cases OF tobacco every. two
weeks. stood until February. 1914
Burke said he approved the vouchers for
the payment OF the tobacco.
Next the drafts ny which Burke got
his share of the profits wer. introduced.
There were eleven of them and none OF
them bore Burke's name, Many Of them
wer" made by the International Banking
Corporation through is agency in Colon
on the home office. Two were drawn
by j J.. Salas himself on rrited states
firms and turned over 20 Burke.
Gen. GocthRIs T%~stiac..
These drafts were sent 20 dirorcr.
places some TO Spencer Trask 4 Co. TO
be deposited 10 Burke's account: one
10 Winnipeg. Canada several 10 In
d'anapolis, to Burke's attorney, and
Others 10 he deposited IN the security
Trust Company of Indianapolis. Burke
said he received the drafts as a re-
suit o. his agreement with Bermudez.
The drafts. each and all OF them"
he said. were my profits from ,he
tobacco business in pursuance TO an
between me and Berrnudez."
h dra:is were as follows June 80,
1908, f,5S4.l4; July IS. 1908. $3.50:
November 10. 1905. $40: February
$1,000. si,7os; May 20, 1909. $4,000;
Angus, "a, 1909. $4,000 June "a. 1910,
$500; August ?, 1910. $500: July
q, 1911, $1,000; May II. 1919. $4,000:
July ~, 1873, 1920. The exact total
was s92,1s256.
The prosecution promised 70 produce .
20 show that every draft
went Into an account OF Burkes. Burke
was asked Why his name did not an
pear on any OF The drafts. Al first he
sad ut may have been duo to my
state or mind. ! may not have wanted
name to ppear on tho draft"
Judge Hunt would not permit that an
swer. and finally Burke, after med,ta-
ton. said Then III put II absolutely
that that was the reason"
Burke testified that he rec.,v~d tho
last drat In the Modern Drug Store.
bottle Alley. Colon, A letter was intro
duced 10 show that the drug store was
by J. l., Salas & 60.
In the morning Gen. Goe'hai. testified
8. length about tho organization OF Tho
commissary department Hs admitted
mat II was under the Panama Railroad
company, which tho defence argues ,s
u prlvat" corporation and against which
TO OFFENCE has been committed He
that the use of The comm,ssarv
department under tho Panama Railroad
a freer use OF money for
purchases and receipts than would b,ve
heen possible II the money had IA 90
through the hands OF the United states
Treasury In every transaction.
The case viii go on this mor,,,s
~1Hn0H1/