The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-08
COTTON SCANDAL REPORT IN.
1T SUSTAINS CHARGES MADE By
MIR. CHEATHAM.
f. 9. Holmes. Assistant statistician, Grows
wealthy by Giving Out Advance InfOr-
nation to New York Broker-Hls


WASHINGTON, July THE report OF the
Secret Service agents on the cotton scandal
In the Department OF Agriculture will be
a sensation. 1t will be made public to-
morrow. There Is the best Of authority
for the statement that the report will show
that the charges of Richard Cheat
ham of Atlanta secretary of the
Southern Cotton Growers Associa-
ton, that figures relative to cotton
crops were not only manipulated for the
purpose of efieotng the market at different
times, but that they were given out in adj
vance by Edwin s. Holmes, associate
statstician, who was suspended some days
ago, for use in speculative way to the
profit of a broker in New York, and Holmes
and, probably other persons. Holiness
removal will be announced by Secretary
Wilson tomorrow.
The Secret Service agents followed the
operations OF Holmes into devious path
ways. They found that he had grown
immensely wealthy in few years while
receiving a small Government salary: that
he made S72 900 on one deal; that he il build
ing a 500, 600 apartment house in Washing
ton; that he conducts a millinery store in
New York in partnership with one Moses
Half; that he owns real estate in cities out
side Of Washington and large farm in
Western State.
To what extent the broker profited
by Holiness leaks it Is impossible to learn
at this time. That Holmes did a land
Office business In cotton will be brought
out in strong language.
The integrity of John Hyde, statistican
OF the department, was not involved in the
charges Of Mr.. Cheatham. and Mr.. Hyde
did not become involved as a result of the
investigation. 1t is understood that he
will be oensured. at least by inference.
for not having detected the leaks" or the
Juggling" which is said to have gone on
under his very nose for the last two years
There Is a prospect that the division of
statistics will be reorganized rs result
Of the disclosures. Whether this will
result in Mr. Hyde's ultimate retirement
from the department or his transfer to
some other office has not, it understood,
been determined. These are details, it is
said that will come up for the consideration
Of Secretary Wilson alter.
1t was earned to-day tina. in h is
early interviews with Secretary Wilson
Aui' NiWotHoI WIFI
the manner in which the cotton figures
had been juggled and that in the docu-
ments submitted to the Secretary the finger
Of suspicion pointed to Holma. Just
what the scheme was and how it was
operated have not been disclosed but it
will be outlined in the published report. .
1t is impossible to learn whether others
besides Holmes will have to walk the plank
but &c IL understood he is the only official
besmirched. The authorities have handled
the inquiry with such secrecy that the
impression got abroad recently that a
"whitewash" would be the inevitable out
come.
1t was explained that in order to prose-
cute the inquiry successfully the utmost
secrecy had to be observed as to the manner
in which it was being conducted and as to
who was under surveillance.