The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-27
DENIES CANAL
PROFITS WERE GRAFT.
Admits Getting a Third on
Sales to %Commissary De-
partment.
INSISTS HE DID NO WRONG

John Burke. formerly manager of the
Canal Zone. appeared yesterday before
Judge Hunt In the Federal court as a
man who had become a Federal witness
but who kept on insisting he had done
no wrong and had harmed nobody by
taking n third of the profits derived
from the sale OF n certain tobacco TO the
commissary department.
AS IA witness for the Government at
the trial of j.. T.. Salas. who was in
dicted Jointly with Burke and Ricardo
Bermudez, Burke told of the agre- ment
he made with them to accep; one-third
OF the profits in n tobacco deal. He in
sisted. however. that he vas not n Fed
eral employee but worked for the
Panama Railroad Company and that he
had lone no wrong. He said that Gen.
Goe;hals told him that he. Burke, was
not n Government employee but was
working for the railroad company.
After william Rand. Jr.. counsel for
the defendant Salas. had cross-examined
the witness and got from him admissions
that were helpful TO the defence. Frank
T.. Carstarphen. the Assistant United
states Attorney trying the case. asked
him:
Would you have made that award to
Salas IL you had not received an offer Of
a share OF the profits from Bermudez ."
Burke insisted that he would.
In answer TO questions Burke said
that he asked the American Tobacco
Company four times 20 give him a bid
on French crossCut tobacco and that
the quality of the tobacco offered was
inferior and the price was higher than
that offered by Salas. He said he had
asked several other firms TO furnish bids.
some OF those firms being now under
indictment In connection with alleged
grating In the Canal Zone.
Mr.. Carstarphen further asked uues-
tions concerning the prices paid hy the
commissary for French crosscu, and
American crosscut. The tobacco sup
piled by Salas was called Infants of
the Seas but Salas changed the name
to Phoenix. Burke admitted tina the
Phoenix tobacco made a prof, Of 80 I
per cent. for the commissary, while the
American crosscut made a profit of
SAB per cent that the tobacco I'm
which he was interested was sold for
seven cents "A package. while the rival
tobacco was sold at S cents until las,
year.
Burke further admitted that all per
sons who supplied articles TO the COM
missary department or who imported
the goods from different countries re-
celved n brokerage commission of :
per cent. Then Judge Hunt wanted TO
know II Salas received that ; per cent
commission. Burke said he did and the
Judge wanted to know IL Burke also
got n proportion OF the commission.
Burke nodded his head and said he
believed he did because he was sup
posed 10 get one-third of the profits
in the tobacco business.
Rank officials from indianapolis were
called to trace the roundabout; methods
OF the drafts which Burke sent 10 this
country TO be deposited hut which never
bore his signature II came out that
Burke was buying land in Canada and
In indianapolis. a sharp argument
arose be'ween Mr.. Ram and Mr.. Car
starphen as to whether the final act Of
the LEGGED conspiracy was performed
when the drafts We're deposited in In
dlanapolis or when those drafts arrived
in this city for final collection. That
point is important 20 the case because
the defendants contention is tina; the
local court has no jurisdiction over him.
The case will he continued to-day.