The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-07-13
SLEUTHS TO WORK
ON HOLMES CASE
A Detailed Legal Inquiry
by Beach.
THIS is THE PROGRAM
Department of Justice officials Believe
that Way will be Found to Pun
ish Those Who Have Betrayed
Their Trust for Private
Gain.
GAIN.
(By the Associated Press.)

Washington July 12.-The investi-
Attorney Morgan H. Beach into the
charges that there has been a leakage
of information in the matter of pre-
pairing the government cotton statistics
will be far more exhaustive than that
conducted by secret service operatives.
at the request of Secretary Wilson, OF
the Department of Agriculture. Acting
Attorney General Hoyt has completed
his examination of the papers trans
mitted to him by Secretary Wilson, and
he thinks there should be a further
and detailed legal inquiry. With that
end in view he has committed the
entire matter to Mr.. Beach, who ill.,
tends to complete his examination of
the case before he retireS from the
position of United States Attorney OF
August 81. He has taken up the sub
ject as prosecuting attorney and in all
proba bility will assist the government
when the matter is brought into the
courts, an outcome of the investigation
that it believed by Department OF JUS
tice officials to be q certainty.
Expense will not be spared in gath
ering evidence of the methods alleged
to have been employed by Edwin >.
Holmes, the dismissed associate statis-
tician OF the Department of Agricui-
ture. and in exposing any accomplices
he may have had in his operations
Mr.. Beach will have the benefit of the
labors of secret service men who were
employed by Secretary Wilson and also
of the best legal talent of his own
office. Working on the case Will be
number of men who ferreted out much
of the evidence used in the prosecution
of postoffice frauds.
What Beach Really Said.
The statement frequently has been
published that District Attorney
Beach reported to Secretary Wilson
that there is no statute under which
Holmes can be prosecuted. 1t was said
authoritatively today that the position
of Mr.. Beach in this matter has been
misunderstood. Mr.. Beach took the
position that Holmes could not be
prosecuted on the showing made by
the published report of his alleged
operation, but it is his opinion that the
investigation was not conducted from
the point of view that would be fol-
lowed by a law officer of the depart
ment. Secretary Wilson was determ-
ined to ascertain in the briefest time
possible whether there was foundation
for the charges made by Richard
Cheatham. secretary of the Southern
Cotton Association, that advance in
formation was being furnished by an
employe or employees of the govern
ment to stock brokers. When he be-
came satisfied of the correctness OF
the charge he published his report and
took steps to prevent further leakage
by dismissing the official believed to
be guilty and reorganizing the method
of gathering and publishing crop sta
tistics.
Officials of the Department of JUS
tice have no doubt that If officials OF
the government have betrayed their
trust for personal gain there will be
found some means to bring them TO
account Therefore it has been de-
termined that further investigation
shall be an examination by law officers
assisted by secret service operatives 1t
is planned to conduct the examination
secretly on the grounds that it Will
be much more effective. 1t has not
been decided whether the case Will be
submitted to the grand jury prior to
if it is found that arrests are
warranted, but it is not believed this
will be the procedure. The grand jury
has adjourned for the summer, though
if it is found advisable, a special grand
Jury might be summoned.