New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-05-28
TAFT LETTER READ
IN TRIAL OF SALAS
War Secretary Regarded
Panama r. r. CommiSSary
as Government Employc.
SHONTS AIDS DEFENCE
IN CANAL ZONE GRAF I
Prosecution. However, COnsid-
ers Note and Reply Damaging
TO Tobacco Mans Case.

What the prosecution considered
highly important evidence was in-
troduced yesterday at the trial OF
Jacob !. Salas. the tobacco mer-
chant, now under indictment with
others for conspiracy ~ connection
with the Panama Cana, Zone graft,
before Judge Hunt IN the niteG
States District Court. This consisted
of two letters, one written by cN-Ires-
idont Taft. when he was Secretary OF
War in 9Os. 20 Edward A. Drake. vice
president Of the Panama Railroad
Company. and the other the reply re
ceived by the Cabinet officer.
Frank f. Carstarphen, who is con
Quoting the case against Sslas, said
he considered the letters important ~
rebutting the claim of the defence that
the road commissary was totally d.
vOrced from the government. and that
IN hribing John Burke, the former
manager who turned states evidence,
the defendant had not tempered with
q government emplOye.
This the defence sought TO show
earlier In the day. when Theodore T.
Shonts, now president of the Inter
borough, who was Major General
Goethalss predecessor as head Of the
Panama Canal Commission, was called
to the stand. He was witness for
the defence. and was examined by
William Rand. IT,, It's trial lawyer.
He told how he had operated the
road as private chartered corpora
ton, after II had been decided with
Secretary Taft TO maintain 1t as an
independent proposition.
Did Nh Taft tell you That you
should operate it under its own char
teri" he was asked. "Yes," Mr.. Shonts
replied.
"You also operated it as an instru
ment in the building of tho canal
didn't you p" Mr.. Carstarphen later
asked. The witness answered that
there had been no desire 20 interrupt
the markets of the world which had
used the road as a gateway, and that
the commercial business had proved
profitable He added that the Canal
Zone had been added 10 the road
commissaries as more flexible plan.
Mr.. Drake was then called. He said
that the road had paid Burke from its
own funds and that none of the com
rnissarv DEPARTMENT managers pay had
come from the United States Treasury.
Mr.. Taft. early in June, 1908, he tes-
tilted. had determined 10 take the com
missary department our Of the control
of the road and place il with the zone
department under an army officer L
was while he was telling this part Of
the Canal Zone history that the Assist
ant District Attorney got the letters
read into the record.
Mr.. Taft's note emphasized the fact
that however the road comm,ssary
might be regarded thereafter, it would
be under government control. u am
convinced" il said in part, that 1t Is
coed administration TO put the commits
sary under the head Of the Department
of Labor and Quarters and Subsist-
ence."
The reply sent by Mr.. Drake said;
at is my understanding that Major
Devol who had presented Mr. Tafts
letter. will report to you the result OF
our interview. which was the develop
ment of a purpose to work energetical-
" together to the end that your IN
structions in regard to the commlssary
department may be intclligcntly and
effectively carried out. II is my under
standing that il Is now no longer nee
essary to even nominally retain the
commissary within the railroad