The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-24
ARREST IN COTTON SCANDAL.
FRED A. PECkHAM CAUGHT AT
4 a SARATOGA HOTEL.

Il a SARATOGA HOTEL.
Bench Warrant Issued In Washingtor
After His indictment On . Charge
q Conspiracy TO Defraud tho Gov
crf,meut--Auother Arrest Expected
Frederick A. Peckham Of this city. whose
nAme has been prom inent In tho investiga-
lions Of the cotton report scandal was ar
rested yesterday In Saratoga, whore be
waA guest at the Grand Union Hotel.
The arrest was made on bench warrant
issuod by Chief Judge H. M. Claba ugh
of the Supreme Court Of the District Of
Columbia as result Of an indictment found
against him by tho United States Grand
Jury summoned specially to investigate
the leakages. Tho indictment charges
conspiracy to defraud tho Government.
Peokham couldn't furnish 81, 900 hail and
was looked up.
Prior to Peokham's arrest United States
District Attorney Beach came bore from
Washington and consulted for several
hours With Assistant United States District
Attorney Wise, who has charge Of the
District Attorneys Office for the Southern
District Of New York In the absence Of Con.
Burnett. Neither Mr.. Beach nor Mr.. Wise
would tell what they bad discussed. It
was taken for granted. however, that tho
topic was the cotton scandal and Mr.. Wise
did not deny this.
If / said just what brought MIR. Beach
here I might defeat the ends OF justice,
Mr.. Wise eaid. we don't want any per-
sons to light out before we can get them.
Ill
happen before the day Is over"
1t Is understood that at least one more
arrest will be made and that 1t will be made
In this district. This belief Is strengthened
by the knowledge that Peckham has been
connected with The leakages more as
go-between and agent than as principal.
When L. C. Van Ripper. a cotton broker
OF this city, put In the hands OF Richard
Chatham. secretary Of the Southern Cot
ton Growers Association, information
which Mr.. Cheafham forced upon the con-
sideration Of Secretary Wilson OF the De-
partment Of Agriculture it was stated that
the New York cotton brokers who were
alleged to have profited from advance
and manipulation OF the cotton
reports gained their information through
an Intermediary closely associated with
Associate Statstician Edwin 8. Holmes, Jr.
this Intermediary, 1t was alleged,
corresponds nee passed, and It was intimated
that the indiscretion Of this person in tax
ing brokers into the secret and broadening
he range Of his operations led to the fraud
disclosures.
This Intermediary, Il was also stated.
became so convinced Of the good faith Of
he parsons who were accommodating evil
1ence Of the condition Of affairs that he
,urned over to them. as an evidence Of his
good faith letters written by Holmes in
which the latter, 1t was alleged, agreed to
make thesestimates Of the June report much !
more bearish than the true crop conditions
warranted.
The same agent. II "a. said. arranged an
which took place in this city
between Holmes and cotton brokers OF this |
,ity. At this interview, it was said, Holmes !
md the Intermediary discoursed freely Of
heir operations with a certain broker In |
his city.
The United States Grand Jury took up
he investigation Of the scandal in the latter
,art Of July. After examining j. c. Van
tiper and william j. Judd, cotton brokers
4 this city. subpDnas were Issued for
'eckham and Moses Haas. They were
to Washington by Mark
liter, a lawyer Of this city, and also retained
ounsel In Washington On the advice Of
ounsel both refused to answer moro than
he preliminary questions. They were held
or contempt Of court, but their position
'as upheld by Judge Wright.
Haas said that he lived in Now York and
S-k~ - l. L. |
nd horse racing. Once, he continued he
ad lived in Washington and been en-
loyed by the Department Of Agriculture.
uestions concerning his relations with
eckham and Holmes he refused to an
wer. Peckham likewise refused to speak
his association with Holmes and Haas.
WASHINGTON. Aug. 23.-The statement
as made here tonight that Peckham
as arrested first because Of information
'ceived i,ere that there wss e possibility
lat Re might soon 60 to Canada. On
'ceipt Of this information, II Ia said, Dis
let Attorney Beach conferred with the
apartment OF Justice officials as to what
,urse he should pursue, and he was told to
" his own Judgment.
Accordingly, Peckham was taken into
lstody on a warrant issued by Judge
abaugh. Peckham was one OF five men
entioned In the cotton leakage report at
@ time E. g. Holmes. former associate
atistician, was dismissed in disgrace
70 men wore: L. C. Van Ripper, Moses
aas, F. A. Peckham, E. 8. Holmes and ]
,eodore Price,.
Van Ripper 10 credited with causing the
ton investigation by giving to the South I
D Cotton Association information relative Z
Holiness operations. Other arrests will !
made. but who the persons are against I
ION warrants have been issued 1t is i'm '
ssible to learn. y
The authorities hero are said to be fully
vised Is to the whereabouts Of Holmes.
d know that Haas is within reach OF the
thorities II he b needed.
MEN on A PICNIC.