Edward A. Burke
Encyclopedia
Edward Austin Burke or Burk (September 13, 1839 – September 24, 1928) was the Democratic
State Treasurer
of Louisiana
from 1878 to 1888. Burke was the first Democrat to hold the office of Louisiana Treasurer following Reconstruction. Burke later fled to Honduras
after it was discovered that there were misappropriations of state treasury funds. While in Honduras Burke became a major land owner and held government positions within Honduras’ nationalized railway systems. Burke remained an exile till his death nearly four decades later.
. Burke’s initial career started with the railroads. At the age of thirteen he was employed as a railroad telegraph operator in Urbana, Illinois
. By seventeen he had been promoted to a division superintendent. The outbreak of the Civil War
found Burke working for a railroad in Texas
. On October 7, 1861 he was commissioned as a Confederate
officer into Debray’s Mounted Battalion. His knowledge of transportation logistics gained through his years of railroad experience resulted in his temporary transfer to Texas’ Office of Field Transportation in March 1863. By December of that year the transfer was permanent. By war’s end Burke had reached the rank of major with a duty assignment as Quartermaster and Chief Inspector of Field Transportation, District of Texas. After the war Burke’s business career wavered. In Galveston he initially found work as telegraph operator and then as a manager of a cotton factorage. He later teamed up with another former Confederate officer, H. B. Stoddart, and formed the import export firm, Stoddart & Burk. The firm primarily exported cotton and imported liquor. In January 1869 the firm faced tax evasion charges from failure to pay federal taxes due on the imported alcohol. The charges against Burke were eventually dismissed, but the litigation left the firm and Burke in bankruptcy. Burke tried to revitalize his fortunes by being elected the Chief Engineer of Galveston's volunteer fire department.
In his newly adopted city Burke developed a friendship with Louis A. Wiltz
, at the time, a politically ambitious banker. Burke became deeply involved within Democratic Conservative political circles in New Orleans. In 1872 Burke ran as the Democratic nominee for the city council position of Administrator of Improvements. The nomination of an independent candidate split the conservative vote allowing a Republican
win. The 1872 election was not a total loss for Burke, his political mentor, Wiltz, was elected mayor of New Orleans. Over the next decade Burke would become a crucial operative in the rise of the New Orleans Democratic machine. In September 1874 Burke was one of the key figures in the minor coup d'état
, known as the Battle of Liberty Place
. During the coup most of the Republican state leaders were routed from office. Burke was appointed State Registrar of Voters by the insurgency leadership. The insurgency only lasted three days. The arrival of federal troops restored the previous administration. Nevertheless tensions within the city of New Orleans remained high for weeks. In October, at a New Orleans intersection, Burke attempted to assault, the then, Governor William Pitt Kellogg. The altercation escalated into an exchange of pistol fire between the two. Although no one was injured, the attack resulted in the arrest of Burke. At the governor’s request, as a sign of peace, Burke was eventually released. In November of that same year Burke again ran for Administrator of Improvements. This time he won. Two years later Burke guided Francis T. Nicholls
in his election campaign for governor. The results of this election were in dispute, with both sides claiming victory and accusing the other side of voter fraud. Overshadowing this election was the disputed presidential election of 1876. Burke then went to Washington
to take part in the so-called Compromise of 1877
; which confirmed a win for the Republican presidential candidate, a win for Louisiana’s Democratic governor candidate, and guaranteed removal of federal troops from Louisiana. The Compromise also ratified Burke’s friend, Wiltz, as the Lieutenant Governor
. This accomplishment earned Burke much political clout. As a reward Burke was appointed State Tax Collector, considered one of the most lucrative offices within the state government.
In 1878 Burke ran for the office of State Treasurer and had an easy victory. It became apparent to both Burke and Wiltz that Governor Nicholls aims did not coincide with theirs. The two then began to influence party delegates towards their goals. Because of the rift, Nicholls decided not to seek a second term. Delegates were also persuaded to extend the current term of the State Treasurer’s office from four to six years and to give the Louisiana Lottery
a state charter for 25 years. The Democratic convention ended with Wiltz being the nominee for governor. In the election of 1879 voters elected Wiltz governor, ratified the extended term of the State Treasurer’s office, and confirmed the 25-year state charter for the Louisiana Lottery. The Louisiana Lottery would prove to be a lightning rod for controversy in the coming years.
”. The organization called on New Orleans and other southern cities to bid for the honor of hosting the event. The proposal was not well received by southern cities still recovering from the aftermath of the Civil War. In order to stir up more publicity for the idea the National Cotton Planters Association in 1883 succeeded in having Senator Augustus Hill Garland
of Arkansas introduce a bill in the US Senate to encourage the holding of a World's Industrial and Cotton Centennial Exposition in 1884. This bill was approved by both houses of Congress. With public sentiment improving, a committee was formed. Commissioners and alternate commissioners from several states were to be appointed by the President. A governing body of thirteen directors was provided, six of whom were named by the President on the recommendation of the association and seven by him on that of a majority of the subscribers in the city in which the event was sponsored. With the future of the event becoming more of a reality, funding within the city of New Orleans started to grow. Burke’s newspaper, the Times-Democrat was the first to pledge $5,000 towards the exposition. When $325,000 in pledges had been achieved the committee directors offered Burke the position of the exposition’s director-general with a salary of $25,000. Burke initially refused, stating that his duties as both a newspaper editor and state treasurer would not allow enough time. Burke finally accepted when the committee directors appealed to his southern pride by hinting that they might have to include in their search — a Northerner. He refused the salary of $25,000, but accepted a salary of only $10,000 a year, which he directed should be invested in exhibition stock, to be later presented to the Agricultural and Mechanical College of Louisiana
. Burke, once in command, proceeded to expand the idea of a merely local or even national exhibition into one which should embrace the entire world. With less than the needed funding, he began the erection of a building costing $325,000. While meeting much opposition to his plans, Burke, nevertheless forged ahead. Franklin C. Morehead, the perennial president of the National Cotton Planters Association and editor-publisher of its official chronicle, the Planters Journal, was appointed to travel and interest state governments, manufacturing firms and foreign countries. Burke went to Washington in May, 1884, and succeeded in having a bill in Congress passed loaning $1,000,000, to be paid from the receipts of the exposition, if there were any surplus over expenses. The sum of $100,000 was also granted to the exposition fund by the Louisiana Legislature, for Congress had tied up its loan by a restrictive clause making the fund available only when $500,000 had been raised from other sources. Finally by August, 1884, a total of one million and a half was in sight. Of this amount $5,000 was to be given to each state and territory to be expended under the direction of its governor by a commission nominated by him and appointed by the President of the United States. These state exhibits thus came to be the strongest feature of the entire exhibition. The space allotted in advance for these state exhibits was soon found to be inadequate for the elaborate displays which resulted from the momentum given to this feature by the $5,000 appropriation, and it became necessary to erect a second building as large as the first. The publicity from the exposition propelled Burke into a second term as state treasurer in the election of 1884. With great fanfare the exposition opened on December 16, 1884. Despite the generous donation from Congress, cost overruns and an aura of funding misappropriations contributed to the financial failure of the exposition. Burke, foreseeing the inevitable, resigned his directorship three weeks before the enterprise was forced to an early closing on June 2, 1885.
was one of three Central America
n countries to exhibit at the exposition. While their display was modest in comparison to others, their exhibit was highlighted by a personal visit to the exposition by Honduran President Luis Bográn
. During this visit Bográn’s host was Burke. Bográn was impressed by Burke’s personality. The two became fast friends. Bográn was looking for someone to market the wealth of natural resources Honduras had to offer the world. Burke envisioned New Orleans as being the primary importing port for all of Central America’s exports. In 1886 as an inducement to Burke, Bográn offered two large mining concessions along the Jalán
and Guayape
rivers in return for Burke’s promise to help build an industrial school in Tegucigalpa
, Honduras’ capital city. Burke accepted and visited Honduras at least twice between 1886 and 1888. In 1888 a reform-minded opposition succeeded in defeating Burke. The time Burke had used in connection with his position as State Treasurer was now applied to develop his mining ventures. In 1889 Burke undertook a trip to London to secure financing for a modern mining operation. While in London his successor, William Henry Pipes, discovered significant discrepancies in amount of funds available in the state treasury. Burke was considered a primary suspect of this embezzlement. From London, Burke denied these allegations and stated he intended to return to New Orleans to confront his accusers. After reviewing the evidence on hand, a grand jury handed down nineteen indictments against Burke. The evidence indicated that Burke had failed to destroy state bonds which had been redeemed and issued additional baby bonds without authorization. Sources place the amount of missing treasury funds anywhere from $64,000 to $2 million. In early December, Burke decided not to return to New Orleans and was later personally welcomed by President Bográn to Tegucigalpa, Honduras. Burke did not come empty-handed; he had succeeded in acquiring financing of $8 million for his mining venture. Arresting Burke was not an issue, because Honduras had not yet formalized a set of extradition treaties with the U.S.
Burke’s financial fortunes did not appear to fare well in Honduras. Burke had to contend with a number of financial panics in both London and Paris which caused investors to back out. He was also challenged with inclement weather and regime changes. In November 1893 Burke supported the losing side in a series of military skirmishes against Policarpo Bonilla
. Burke and Domingo Vásquez
had to flee to neighboring El Salvador
. Eventually Burke came to terms with Bonilla and returned. During this same period of political upheaval, the opponents of the Louisiana Lottery succeeded in getting Congress to outlaw the interstate transportation of lottery tickets or lottery advertisements. The U.S. Supreme Court then affirmed that position. Instead of shutting down, the Louisiana Lottery decided to transfer its operations from New Orleans to Honduras. Very little is known, if Burke had any influence in steering the Louisiana Lottery to move to Honduras.
In June 1904, Burke accepted a position as the assistant superintendent and auditor of the Honduras Interoceanic Railway, one of the government’s nationalized railroads. He held this position till August 1906. From 1912 to 1926, Burke held various positions within the National Railway of Honduras, also known as El Ferrocarril Nacional de Honduras, another nationalized railroad. In February 1926 Burke’s associates back in New Orleans succeeded in nullifying all of his indictments. Even though Burke was vindicated, he decided to remain in Honduras. In 1928, Burke was on hand to greet Charles Lindbergh
who was on a goodwill flight through Central America. This was not Burke’s first encounter with a famous aviator. In 1919, Burke had unknowingly hired local Lisandro Garay as a driver. Garay would later become famous as an aviator in his own right, picking up the moniker — the “Honduran Lindbergh.”
more than two decades before Burke. In 1895, Lindsey had volunteered for service in the Force Publique
in the Congo Free State, where he was commissioned as a lieutenant. About a year later, he was killed when he and three other officers were leading a contingent of fifty men to suppress an uprising of African natives. The men scattered, when natives ambushed their party; Lindsey, with the other three officers, fought until they were hacked down and slashed to pieces. Burke bequeathed half of his property to the government of Honduras, the remainder to relatives in the U.S. Because of measures taken by the Honduran government, Burke’s heirs in the U.S. received nothing.
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
State Treasurer
State Treasurer
In the state governments of the United States, 49 of the 50 states have the executive position of treasurer. Texas abolished the position of Texas State Treasurer in 1996....
of Louisiana
Louisiana
Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties...
from 1878 to 1888. Burke was the first Democrat to hold the office of Louisiana Treasurer following Reconstruction. Burke later fled to Honduras
Honduras
Honduras is a republic in Central America. It was previously known as Spanish Honduras to differentiate it from British Honduras, which became the modern-day state of Belize...
after it was discovered that there were misappropriations of state treasury funds. While in Honduras Burke became a major land owner and held government positions within Honduras’ nationalized railway systems. Burke remained an exile till his death nearly four decades later.
Early life and career
Burke, by his own account, was of Irish descent and born in Louisville, KentuckyLouisville, Kentucky
Louisville is the largest city in the U.S. state of Kentucky, and the county seat of Jefferson County. Since 2003, the city's borders have been coterminous with those of the county because of a city-county merger. The city's population at the 2010 census was 741,096...
. Burke’s initial career started with the railroads. At the age of thirteen he was employed as a railroad telegraph operator in Urbana, Illinois
Urbana, Illinois
Urbana is the county seat of Champaign County, Illinois, United States. As of the 2010 census, the population was 41,250. Urbana is the tenth-most populous city in Illinois outside of the Chicago metropolitan area....
. By seventeen he had been promoted to a division superintendent. The outbreak of the Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
found Burke working for a railroad in Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
. On October 7, 1861 he was commissioned as a Confederate
Confederate States Army
The Confederate States Army was the army of the Confederate States of America while the Confederacy existed during the American Civil War. On February 8, 1861, delegates from the seven Deep South states which had already declared their secession from the United States of America adopted the...
officer into Debray’s Mounted Battalion. His knowledge of transportation logistics gained through his years of railroad experience resulted in his temporary transfer to Texas’ Office of Field Transportation in March 1863. By December of that year the transfer was permanent. By war’s end Burke had reached the rank of major with a duty assignment as Quartermaster and Chief Inspector of Field Transportation, District of Texas. After the war Burke’s business career wavered. In Galveston he initially found work as telegraph operator and then as a manager of a cotton factorage. He later teamed up with another former Confederate officer, H. B. Stoddart, and formed the import export firm, Stoddart & Burk. The firm primarily exported cotton and imported liquor. In January 1869 the firm faced tax evasion charges from failure to pay federal taxes due on the imported alcohol. The charges against Burke were eventually dismissed, but the litigation left the firm and Burke in bankruptcy. Burke tried to revitalize his fortunes by being elected the Chief Engineer of Galveston's volunteer fire department.
New Orleans
Burke next appears in New Orleans in May 1869. At this point Burke added an “e” to his last name; prior to his arrival in New Orleans, Burke signed his name without an “e”. Burke may have been trying to establish a new life in New Orleans and the minor name change may have helped him avoid Galveston creditors and distance himself from the alcohol tax scandal. Throughout his life, Burke also quoted different years of birth. Burke arrived in New Orleans during a commercial convention. He informed local New Orleanians, that he was in town to attend the convention and he was from the engineering firm of Stoddart & Burke. Burke, at first, found odd jobs in New Orleans, but eventually landed a position as a freight agent with the New Orleans, Jackson & Great Northern Railroad. In December 1869, Burke cut all his ties with Galveston, by tendering his resignation as chief engineer of the Galveston Fire Department. In 1874 the New Orleans, Jackson & Great Northern Railroad was reorganized as the New Orleans, St. Louis & Chicago Railroad.In his newly adopted city Burke developed a friendship with Louis A. Wiltz
Louis A. Wiltz
Louis Alfred Wiltz was an American politician from the state of Louisiana. He served as 29th Governor of Louisiana from 1880 to 1881 and before that time was mayor of New Orleans, lieutenant governor of Louisiana, and a member of the Louisiana House of Representatives.Wiltz was born in New Orleans...
, at the time, a politically ambitious banker. Burke became deeply involved within Democratic Conservative political circles in New Orleans. In 1872 Burke ran as the Democratic nominee for the city council position of Administrator of Improvements. The nomination of an independent candidate split the conservative vote allowing a Republican
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
win. The 1872 election was not a total loss for Burke, his political mentor, Wiltz, was elected mayor of New Orleans. Over the next decade Burke would become a crucial operative in the rise of the New Orleans Democratic machine. In September 1874 Burke was one of the key figures in the minor coup d'état
Coup d'état
A coup d'état state, literally: strike/blow of state)—also known as a coup, putsch, and overthrow—is the sudden, extrajudicial deposition of a government, usually by a small group of the existing state establishment—typically the military—to replace the deposed government with another body; either...
, known as the Battle of Liberty Place
Battle of Liberty Place
The Battle of Liberty Place was an attempted insurrection by the Crescent City White League against the legal Reconstruction state government on September 14, 1874 in New Orleans, Louisiana, where it was then based....
. During the coup most of the Republican state leaders were routed from office. Burke was appointed State Registrar of Voters by the insurgency leadership. The insurgency only lasted three days. The arrival of federal troops restored the previous administration. Nevertheless tensions within the city of New Orleans remained high for weeks. In October, at a New Orleans intersection, Burke attempted to assault, the then, Governor William Pitt Kellogg. The altercation escalated into an exchange of pistol fire between the two. Although no one was injured, the attack resulted in the arrest of Burke. At the governor’s request, as a sign of peace, Burke was eventually released. In November of that same year Burke again ran for Administrator of Improvements. This time he won. Two years later Burke guided Francis T. Nicholls
Francis T. Nicholls
Francis Redding Tillou Nicholls was an American attorney, politician, judge, and a brigadier general in the Confederate States Army during the American Civil War...
in his election campaign for governor. The results of this election were in dispute, with both sides claiming victory and accusing the other side of voter fraud. Overshadowing this election was the disputed presidential election of 1876. Burke then went to Washington
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
to take part in the so-called Compromise of 1877
Compromise of 1877
The Compromise of 1877, also known as the Corrupt Bargain, refers to a purported informal, unwritten deal that settled the disputed 1876 U.S. Presidential election and ended Congressional Reconstruction. Through it, Republican Rutherford B. Hayes was awarded the White House over Democrat Samuel J...
; which confirmed a win for the Republican presidential candidate, a win for Louisiana’s Democratic governor candidate, and guaranteed removal of federal troops from Louisiana. The Compromise also ratified Burke’s friend, Wiltz, as the Lieutenant Governor
Lieutenant Governor of Louisiana
The Office of Lieutenant Governor of Louisiana is the second highest state office in Louisiana. The current Lieutenant Governor is Jay Dardenne, a Republican...
. This accomplishment earned Burke much political clout. As a reward Burke was appointed State Tax Collector, considered one of the most lucrative offices within the state government.
In 1878 Burke ran for the office of State Treasurer and had an easy victory. It became apparent to both Burke and Wiltz that Governor Nicholls aims did not coincide with theirs. The two then began to influence party delegates towards their goals. Because of the rift, Nicholls decided not to seek a second term. Delegates were also persuaded to extend the current term of the State Treasurer’s office from four to six years and to give the Louisiana Lottery
Louisiana State Lottery Company
The Louisiana State Lottery Company was a private corporation that in the mid-19th century ran the Louisiana lottery. It was for a time the only legal lottery in the United States, and for much of that time had a very foul reputation as a swindle of the state and citizens and a repository of...
a state charter for 25 years. The Democratic convention ended with Wiltz being the nominee for governor. In the election of 1879 voters elected Wiltz governor, ratified the extended term of the State Treasurer’s office, and confirmed the 25-year state charter for the Louisiana Lottery. The Louisiana Lottery would prove to be a lightning rod for controversy in the coming years.
Politics, journalism, and defending honor
One of the major critics of the Louisiana Lottery was Henry J. Hearsey, the editor of the New Orleans Democrat. Burke and Charles T. Howard, spokesperson and the ipso facto power within the Louisiana Lottery, conspired to financially undermine the Democrat. At the time the Democrat had an abundance of state scrip, earned through state printing contracts. For the most part, the Democrat used this scrip as cash to pay its bills and suppliers. In 1879 Howard brought suit in federal court questioning the use of state scrip in payment of state debts. The court ruled that the scrip had no legal value. The Democrat, unable to satisfy its creditors and facing bankruptcy, was sold to a consortium, consisting of Burke, Howard, and others. Hearsey left the Democrat to become the editor-publisher of the New Orleans Daily States. After the purchase was finalized a second judicial ruling reversed the first decision restoring the value of state scrip. Burke later assumed control of the Democrat as its managing editor. Bad blood between both Burke and Hearsey resulted in a challenge to a duel from Hearsey. On January 25, 1880 both men faced off and exchanged pistol fire. At the conclusion of the duel, neither man was wounded and both considered their honor to be intact. In 1881 Burke bought out his partners and became the sole owner of the Democrat. On December 4 of that same year, Burke bought the New Orleans Times. He then combined the two newspapers into the Times-Democrat. Burke’s newspaper was used to advocate his view of the New South. The Daily Picayune was also highly critical of Burke and his cronies. One stinging article in 1882 accused Burke of improprieties with the treasury funds. Incensed, Burke challenged the editor of the Daily Picayune, C. Harrison Parker, to a duel. Since Parker was challenged, dueling etiquette allowed Parker to select the dueling weapon of choice; Parker chose rifles, but on the actual day of the duel he rethought his decision and chose pistols. Parker was a better shot than Burke’s previous opponent and succeeded in seriously wounding Burke in his right thigh.Cotton Centennial
In 1882 the National Cotton Planters Association proposed the idea of a “World Cotton CentennialWorld Cotton Centennial
The 1884 World's Fair was held in New Orleans, Louisiana. At a time when nearly one third of all cotton produced in the United States was handled in New Orleans and the city was home to the Cotton Exchange, the idea for the fair was first advanced by the Cotton Planters Association...
”. The organization called on New Orleans and other southern cities to bid for the honor of hosting the event. The proposal was not well received by southern cities still recovering from the aftermath of the Civil War. In order to stir up more publicity for the idea the National Cotton Planters Association in 1883 succeeded in having Senator Augustus Hill Garland
Augustus Hill Garland
Augustus Hill Garland was an Arkansas lawyer and politician. He was a senator in both the United States and the Confederate States, served as 11th Governor of Arkansas and as Attorney General of the United States in the first administration of Grover Cleveland.-Early life and law career:Garland...
of Arkansas introduce a bill in the US Senate to encourage the holding of a World's Industrial and Cotton Centennial Exposition in 1884. This bill was approved by both houses of Congress. With public sentiment improving, a committee was formed. Commissioners and alternate commissioners from several states were to be appointed by the President. A governing body of thirteen directors was provided, six of whom were named by the President on the recommendation of the association and seven by him on that of a majority of the subscribers in the city in which the event was sponsored. With the future of the event becoming more of a reality, funding within the city of New Orleans started to grow. Burke’s newspaper, the Times-Democrat was the first to pledge $5,000 towards the exposition. When $325,000 in pledges had been achieved the committee directors offered Burke the position of the exposition’s director-general with a salary of $25,000. Burke initially refused, stating that his duties as both a newspaper editor and state treasurer would not allow enough time. Burke finally accepted when the committee directors appealed to his southern pride by hinting that they might have to include in their search — a Northerner. He refused the salary of $25,000, but accepted a salary of only $10,000 a year, which he directed should be invested in exhibition stock, to be later presented to the Agricultural and Mechanical College of Louisiana
Louisiana State University
Louisiana State University and Agricultural and Mechanical College, most often referred to as Louisiana State University, or LSU, is a public coeducational university located in Baton Rouge, Louisiana. The University was founded in 1853 in what is now known as Pineville, Louisiana, under the name...
. Burke, once in command, proceeded to expand the idea of a merely local or even national exhibition into one which should embrace the entire world. With less than the needed funding, he began the erection of a building costing $325,000. While meeting much opposition to his plans, Burke, nevertheless forged ahead. Franklin C. Morehead, the perennial president of the National Cotton Planters Association and editor-publisher of its official chronicle, the Planters Journal, was appointed to travel and interest state governments, manufacturing firms and foreign countries. Burke went to Washington in May, 1884, and succeeded in having a bill in Congress passed loaning $1,000,000, to be paid from the receipts of the exposition, if there were any surplus over expenses. The sum of $100,000 was also granted to the exposition fund by the Louisiana Legislature, for Congress had tied up its loan by a restrictive clause making the fund available only when $500,000 had been raised from other sources. Finally by August, 1884, a total of one million and a half was in sight. Of this amount $5,000 was to be given to each state and territory to be expended under the direction of its governor by a commission nominated by him and appointed by the President of the United States. These state exhibits thus came to be the strongest feature of the entire exhibition. The space allotted in advance for these state exhibits was soon found to be inadequate for the elaborate displays which resulted from the momentum given to this feature by the $5,000 appropriation, and it became necessary to erect a second building as large as the first. The publicity from the exposition propelled Burke into a second term as state treasurer in the election of 1884. With great fanfare the exposition opened on December 16, 1884. Despite the generous donation from Congress, cost overruns and an aura of funding misappropriations contributed to the financial failure of the exposition. Burke, foreseeing the inevitable, resigned his directorship three weeks before the enterprise was forced to an early closing on June 2, 1885.
Honduras and treasury scandal
HondurasHonduras
Honduras is a republic in Central America. It was previously known as Spanish Honduras to differentiate it from British Honduras, which became the modern-day state of Belize...
was one of three Central America
Central America
Central America is the central geographic region of the Americas. It is the southernmost, isthmian portion of the North American continent, which connects with South America on the southeast. When considered part of the unified continental model, it is considered a subcontinent...
n countries to exhibit at the exposition. While their display was modest in comparison to others, their exhibit was highlighted by a personal visit to the exposition by Honduran President Luis Bográn
Luis Bográn
Luis Bográn Barahona was a President of Honduras, who served two consecutive presidential terms from 30 November 1883 to 30 November 1891. He was born in the northern Honduran department of Santa Bárbara on 3 June 1849 to Saturnino Bográn Bonilla and Gertrudis Barahona Leiva. He was a member of a...
. During this visit Bográn’s host was Burke. Bográn was impressed by Burke’s personality. The two became fast friends. Bográn was looking for someone to market the wealth of natural resources Honduras had to offer the world. Burke envisioned New Orleans as being the primary importing port for all of Central America’s exports. In 1886 as an inducement to Burke, Bográn offered two large mining concessions along the Jalán
Jalan River
-References:*Rand McNally, The New International Atlas, 1993.*CIA map: :Image:Honduras rel 1985.jpg*UN map: :Image:Un-honduras.png*...
and Guayape
Guayape River
The Guayape River is a major river that drains much of the Department of Olancho and central Honduras. The largest tributary to the Guayape is the Río Jalán, which joins it at El Plomo, not far from the city of Juticalpa. From there the river passes many small towns, including El Esquilinchuche...
rivers in return for Burke’s promise to help build an industrial school in Tegucigalpa
Tegucigalpa
Tegucigalpa , and commonly referred as Tegus , is the capital of Honduras and seat of government of the Republic, along with its twin sister Comayagüela. Founded on September 29, 1578 by the Spanish, it became the country's capital on October 30, 1880 under President Marco Aurelio Soto...
, Honduras’ capital city. Burke accepted and visited Honduras at least twice between 1886 and 1888. In 1888 a reform-minded opposition succeeded in defeating Burke. The time Burke had used in connection with his position as State Treasurer was now applied to develop his mining ventures. In 1889 Burke undertook a trip to London to secure financing for a modern mining operation. While in London his successor, William Henry Pipes, discovered significant discrepancies in amount of funds available in the state treasury. Burke was considered a primary suspect of this embezzlement. From London, Burke denied these allegations and stated he intended to return to New Orleans to confront his accusers. After reviewing the evidence on hand, a grand jury handed down nineteen indictments against Burke. The evidence indicated that Burke had failed to destroy state bonds which had been redeemed and issued additional baby bonds without authorization. Sources place the amount of missing treasury funds anywhere from $64,000 to $2 million. In early December, Burke decided not to return to New Orleans and was later personally welcomed by President Bográn to Tegucigalpa, Honduras. Burke did not come empty-handed; he had succeeded in acquiring financing of $8 million for his mining venture. Arresting Burke was not an issue, because Honduras had not yet formalized a set of extradition treaties with the U.S.
Burke’s financial fortunes did not appear to fare well in Honduras. Burke had to contend with a number of financial panics in both London and Paris which caused investors to back out. He was also challenged with inclement weather and regime changes. In November 1893 Burke supported the losing side in a series of military skirmishes against Policarpo Bonilla
Policarpo Bonilla
José Policarpo Bonilla Vasquez was President of Honduras between 22 February 1894 until 1 February 1899.-Biography:He was born on 17 March 1858 in Tegucigalpa, Honduras, his parents were Inocete Bonilla and Juana Vasquez. He became a lawyer on 17 March 1878, held posts in the government of Marco...
. Burke and Domingo Vásquez
Domingo Vásquez
Domingo Vásquez was President of Honduras 7 August 1893 - 22 February 1894. He lost power as a result of Honduras being defeated in a war with Nicaragua and was replaced by Policarpo Bonilla.-Sources:*...
had to flee to neighboring El Salvador
El Salvador
El Salvador or simply Salvador is the smallest and the most densely populated country in Central America. The country's capital city and largest city is San Salvador; Santa Ana and San Miguel are also important cultural and commercial centers in the country and in all of Central America...
. Eventually Burke came to terms with Bonilla and returned. During this same period of political upheaval, the opponents of the Louisiana Lottery succeeded in getting Congress to outlaw the interstate transportation of lottery tickets or lottery advertisements. The U.S. Supreme Court then affirmed that position. Instead of shutting down, the Louisiana Lottery decided to transfer its operations from New Orleans to Honduras. Very little is known, if Burke had any influence in steering the Louisiana Lottery to move to Honduras.
In June 1904, Burke accepted a position as the assistant superintendent and auditor of the Honduras Interoceanic Railway, one of the government’s nationalized railroads. He held this position till August 1906. From 1912 to 1926, Burke held various positions within the National Railway of Honduras, also known as El Ferrocarril Nacional de Honduras, another nationalized railroad. In February 1926 Burke’s associates back in New Orleans succeeded in nullifying all of his indictments. Even though Burke was vindicated, he decided to remain in Honduras. In 1928, Burke was on hand to greet Charles Lindbergh
Charles Lindbergh
Charles Augustus Lindbergh was an American aviator, author, inventor, explorer, and social activist.Lindbergh, a 25-year-old U.S...
who was on a goodwill flight through Central America. This was not Burke’s first encounter with a famous aviator. In 1919, Burke had unknowingly hired local Lisandro Garay as a driver. Garay would later become famous as an aviator in his own right, picking up the moniker — the “Honduran Lindbergh.”
Death and division of estate
Burke died on September 24, 1928 at the Hotel Ritz in Tegucigalpa. He was predeceased by his wife Susan Elizabeth (Gaines) by more than a decade. She died July 21, 1916. Burke’s only son, and only child, Lindsey, died in the Congo Free StateCongo Free State
The Congo Free State was a large area in Central Africa which was privately controlled by Leopold II, King of the Belgians. Its origins lay in Leopold's attracting scientific, and humanitarian backing for a non-governmental organization, the Association internationale africaine...
more than two decades before Burke. In 1895, Lindsey had volunteered for service in the Force Publique
Force Publique
The Force Publique , French for "Public Force", was both a gendarmerie and a military force in what is now the Democratic Republic of the Congo from 1885, , through the period of direct Belgian colonial rule...
in the Congo Free State, where he was commissioned as a lieutenant. About a year later, he was killed when he and three other officers were leading a contingent of fifty men to suppress an uprising of African natives. The men scattered, when natives ambushed their party; Lindsey, with the other three officers, fought until they were hacked down and slashed to pieces. Burke bequeathed half of his property to the government of Honduras, the remainder to relatives in the U.S. Because of measures taken by the Honduran government, Burke’s heirs in the U.S. received nothing.