The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-09
THE COTTON LEAK" SCANDAL
HOLMES THE WAN WHO GAVE OUT
,DyANCE INFORMATION.


WASHINGTON. July s.-The cotton scandal
,,,o,, was made public this morning
tI,,,r on the report Secretary Wilson has
.,.ri..ed Edwin S. Holmes. DR.. assistant
a,,,is,iciar of the Bureau of Statistics, De-
,ortnor. of Agriculture, and has an
,o,rcci that there will be a general re-
orr,rl2a-ion of TIL Bureau. John HYDE
Cbief d, the Bureau is not involved in the
obarge- ard he comes out of the lnvesti-
ro,ion with a clean bill of health.
broadly speaking, the charges OF leaks :
,.or, 1--WE n,lraau of statistics made by Sec
ra,arv Chcatham Of the Southern Cotton
Is,ocia,ion are sustained by the report OF
the inreS'IIa'ors'
Victor n Olnsted has been appointed
ossocis,e -tatistician in place OF Mr.. Holmes
rar,oycd He has for some time held the
,n..ion Of chief Of the division OF domestic
o-o, reporta in the Bureau of Statistics
ras also formerly assistant stotistician
- ,he Department, and Is widely known
II connection with his work as assistant
riroc,or Of the censuses OF Cuba and the
pbuirnines He was for many years Stats
,,csl expert In the labor bureau and has
Rod varied and extensive statistical ex-
nerience In other bran ches Of the public
service
summary OF tho Report.
The report of the investigation into the
cotton scandal was summarized In tho
following statement by Secretary Wilson
this morning
Some weeks ago Mr.. Richard Cheatham.
secretary Of the Cotton Planters Associa-
,ion, called at the Department Of Agricul-
trre and charged backing the charge by
evidence, that certain information had been
given to cotton brokers in New York by,
some rerson or persons employed In the Blu
rea,I Of Statistics OF the Department Of Agri-
culture. relative to the acreage, condition,
&C.. Of the cotton crop Of the United
States prior to the official publication Of
such information and that the figures Of the
cotton crop report had been tempered with
IN the Department in the interests of certain
cotton Spectators. at once called in the
officers OF the United States Secret Ser vice.
gave them the evidence which had been
furnished and put them in touch with Mr.
Chatham, directing that they use every
possible effort to ascertain whether or not
there had been leak in the Department
on the official report, and II they found
there had been a leak to furnish me with
the name Of every person responsible there
for. The report Of the Secret Sc rvice
operative has been received aud Is sub
start ally as follows:
ADVANCE INFORMATION GIVEN OUT.
MIR. William NJ. Judd OF New York,
formerly in the employ OF Mr.. l.. c. Van
Ripper, broker of New York. was examined
and stated that he had received advance In
formation on the cotton crop report, and
had been informed that this information
came through one Haas of New York city
and from Mr.. Edwin s. Holmes, associate
statistcian OF the Department OF Agricul-
ture He stated that he had afterward
become convinced that not only was
advance Information being given out,
but that the figures "a received from the
crop correspondents and agents OF the De-
partment we're being distorted in the in
terests OF certain spectators, and that
on this account he had persuaded Mr.. L..
c. Van Ripper to tell OF his connection with
the affair and that he (Mr. judd had
written to Mr.. Cheatham, secretary OF the
Cotton Planters Association. calling atten-
ton to the matter.
Mr.. L. c. Van Riper, a broker OF New
York city. under examination, stated that
he became acquainted with Mr.. Edwin 8.
Holmes associate statistician OF the De-
partment of Agriculture. in New York city
in August, 1904. through a mutual friend.
Mr.. Holmes told Mr.. Van Ripper that he could
get information concerning the Government
crop report before the report was published
principally through the report Of the general
agent and the reports OF the State agents.
HOLMES THE cULpRIT.
MIR. Van Ripper stated that Mr.. Holmes
furnished him with information from time
to time for several months in advance Of the
publication of the official figures and that
the information furnished by Mr.. Holmes
correspondent exactly with the figures
which were afterward published as the OFF,
cial crop reports. Mr.. Van Ripper stated
that Mr. Haas Of New York city acted as
8 go-between for Mr.. Holmes and himself,
and he was given to understand that Mr..
Hass was securing information for Mr..
Theodore Price, a cotton broker OF New
York
Mr. Van Ripper stated that he was induced
to communicate the fact that this advance
IIIolHldllOn WAS DelIlR given OUT ny WI
Holmes on account of the fact that he had
heard that Mr. Holmes and his associates
intended to try to manipulate the June
cotton report of 1905; that he met Mr.. Haas
on one occasion at the. Hotel Waldorf in
New York city and was told by him that
the report for June 1905. would be rs per
cent. on condition and l2E per cent. or 10
per cent on acreage, which was as bearish
as they could make it, that he was going
to sec Mr.. Price. would have an interview
with him and wanted to see Mr.. Van Ripper
after he saw MIR. Price and that in about
an hour and half after the interview at
the Hotel Waldorf Mr.. Haas called him up
In his rooms at the Waldorf and made an
appointment for a meeting. Mr.. Van Riper
met Mr.. Haas and was told that, at the re-
quest Of Mr.. Price, Mr. Haas was going
down to Washington to SEQ il they could not
get the percentage little higher and acre
age made little smaller, to make the re-
port more bearsh. Mr.. Van Ripper SAYS
mat the official report was more bearish
than the figures previously given him, and
mat he took this to mean that the effort to
Influence the report had succeeded.
HOLINESS ADMISSIONS.
Under examination, MIR. Edwin s. Holmes
admitted that he had written two letters,
one dated Aug. 10, 1904, postmarked WASH
inRtnn, d. c. and the other dated Aug.
q, lao+, postmarked the same date These
letters read as follows
Aua Is, 1904.
DEAF MIR VAN RIPPER: Other parties have
chahged plans slightly. and think II ad-