The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-24
TO INDICT FOR COTTON LEAK.
GRAND JURY WILL TAKE UP CASE
IN WASHINGTON TO-DAY.
New York Brokers subpGnaed-Investi
cation the President Ordered Brings
Out More Sensational Evidence
Holmes 10 Kept Under Surveillance.

cation the President Ordered Brings
Out More Sensational Evidence
Holmes 10 Kept Under Surveillance.
WASHINGTON, July 23.-The investigation
OF the cotton leak scandal, which, by Presi-
dent Roosevelt's order was placed In the
hands OF the Department Of Justice two
weeks ago, has been concluded. The OBJ
ject OF this second inquiry. which the
President said should he made even after
Secretary Of Agriculture Wilson had de-
clared that the sensational incident was
closed was to determine whether persons
connected with the cotton scandal, both
within and without the Agricultural De-
partment, could be prosecuted on criminal
grounds.
The success Of the investigation up to
this time may be inferred from the fact
that the District OF Columbia Grand Jury
has been summoned to meet tomorrow.
The announcement was made tonight by
District Attorney Morgan H. Beach, who
has had the investigation in charge, as
follows:
"The Grand Jury of the District of CO.
lumbia In pursuance Of a call issued by the
District Attorney on the 10th inst, Will
meet tomorrow. Monday, the cath inst,
at II o'clock A. NJ, to consider among other
things certain criminal practises said to
exist and to have existed in one of the
executive departments.
Mr.. Beach declined tonight to add any
thing to this statement, or to discuss the
cotton scandal in any way. There is no
doubt, however, that the District Attorney
hopes to secure the indictment OF not fewer
| than two or three persons, at least one OF
whom Ia now, or was formerly, an official
of the Department Of Agriculture.
When the first investigation was con-
/ Guided Secretary Of Agriculture Wilson
gave out a statement that, according to
legal advice received by him. there was no
statute under which the persons guilty
Of giving out and receiving advance in
formation Of the Governments cotton
crop statistics could be prosecuted GRIM
inally.
Before the second investigation was
begun officials Of the Department of Justice
we're convinced that this was an error. The
law officers Of the Government believe
there are two possible grounds upon which
Edwin s. Holmes, Jr., the dismissed asso-
ciate statistician Of the Agricultural Depart
ment, and persons associated with him in
the cotton scandal can be indicted for
criminal conduct. One of these is bribery
and the other is conspiracy.
During the last two weeks District At
torney Beach, assisted by special gents OF
the Agricultural Department and detectives
of the Secret Service, has devoted his
whole time to the investigation Of the cotton
scandal. He has questioned many per-
sons, and dragnet method Of inquiry was
employed which, it Is believed, has involved
several persons to an extent which may
lead to their indictment by the Grand Jury.
Subp9nas have been served on at least
half dozen persons. including two or
three New York brokers. Although the
District Attorneys Office is silent on this
subject, there Is no doubt that l.. C.
Van Riper, William NJ. Judd, F. A. Peck
ham and Moses Haas will be compelled tc
appear before the Grand Jury within the
next few days. E. s. Holmes, Jr., the
former associate statistician of the Agri'
cultural Department, has left Washington
but his whereabouts are known, and hi
ia under close surveillance. He will not b.
permitted to leave the country. The samt
NAV be said Of two or three brokers who's
names have been mixed up in the cottoI
, scandal.
Although the indictment and ultimate
conviction under the criminal statutes o
persons concerned in the cotton leak
NAV be a matter of question, it is Ger
tainty that the investigation conducted
nv the Department OF Justice has brough
: to lght q great mass Of information, som
, NJ which Ia far more sensational than any
thing that has been made public up to thi
time, The schemes for making none
out OF the Governments crop reports, b.
usinp the information in advance OF 1t
publication, we're much more elaborat
than was suspected at the time the frs
investigation OF the scandal was made
The giving and receiving Of contraban
information was not haphazard affair
but was systematically planned an
promptly and accurately carried out.
X, Furthermore, the persons concerne
= in the matter had all the machinery know
a to modern brokerage methods which wa
| necessary to make the most OF the infol
0 nation for their own profit. Information
r Of which this Is a most general statemen
Q "a possessed in great detail by the Officer
If the Government who have been NAL
!. ing the investigation.
r The Grand Jury which will meet to-mol
row will be no respecter OF persons, Il
. It is proposed to summon before it, anon
!. others, every officer and clerk OF the D'
Q partment Of Agriculture who could po
n sibly know anything about the cotto
!, L. leaks, from Secretary James Wilson dow
q The purpose Of the District Attorney
8 to indict all guilty persons, If possible. b.
It is also expected that the Grand Jury wi
r be able to elicit certain information needle
= for the completion Of the Government
u an advantage which the District Attorne
:, did not possess during the preliminal
4 investigation, and that is the power
a examine persons under. oath. The Distri
" Attorney will insist that all persons. wi
q refuse to answer questions be pumsht
for contempt