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

|
Bench Warrant Issued in washington
| After Hts Indictment on . ChArgt
q Conspiracy TO Defraud the Gov
ernment-Another Arrest Expected
Frederick A. Peokham Of this city, whose
name has been prominent In the investiga.
lions Of tho cotton report scandal, was ar.
| rested yesterday In Saratoga, where he
was q guest at the Grand Union Hotel.
The arrest was made on . bench warrant
issued by Chief Judge a. M. Clabaugh
OF the Supreme Court Of the District of
Columbia as q result Of an indictment found
against him by the United States Grand
Jury summoned specially to investigate
the leakages. Tho indictment charges
conspiracy To defraud tho Government.
Peokham couldn't furnish 1900 bail and
was looked up.
Prior to Pcckhams arrest United States
District Attorney Beach came here from
Washington and oonsulted 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 tho absence Of Gen.
Burnett. Neither Mr.. Beach nor Mr.. Wise
would tell what they had discussed. It
was taken for granted. however, that the
topic was the cotton scandal, and Mr.. Wise
did not deny this.
III said just what brought Mr.. Beach
here might defeat the ends Of Justice
Mr.. Wine said. we don't want any per-
sons to light out before We can get them.
I will say. though, that something may
happen before the day Ia 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 q
go-between and agent than as principal.
When L. C. Van Ripper, a cotton broker
Of this city, put in the hands Of Richard
Cheatham, secretary Of the Southern Cot
ton Growers Association, information
which Mr.. Cheatham forced upon the con-
sideration Of Secretary Wilson Of the De-
partment Of Agriculture 1t was stated that
the New York cotton brokers who were
alleged to have prohted from advance
information and manipulation Of the cotton
reports gained their information through
an intermediary closely associated with
Associate Statistician Edwin 8. Holmes, Jr.
y
correspondence passed. and 1t was minated
that the indiscretion Of this person in TAX
ing brokers into the secret and broadening
the range of his operations led to the fraud
disclosures.
This Intermediary. It was also stated.
became so convinced OF the good faith Of
the persons who we're accommodating evil
dence Of the condition Of affairs that he
turned over to them, as an evidence Of his
good faith. letters written by Holmes in
which the latter. 1t was alleged. agreed to
make theIestimates Of the June report much
more bearish than the true crop conditions
warranted.
The same agent, it was said, arranged an
interview which took place in this city
Holmes and cotton brokers Of this
city. At this interview 1t was said Holmes
and the Intermediary disooursed freely Of
their operations with a certain broker In
this city.
The United States Grand Jury took up
the investigation OF the scandal in the latter
part Of July. After examining ]. &. Van
Ripper and William j. Judd, cotton brokers
Of this city, subpBnas were issued for
Peckham and Moses Haas. They were
accompanied to Washington by Mark
Alter, q lawyer Of this city, and also retained
In Washington On the advice Of
counsel both refused to answer more than
the preliminary questions. They wore held
for contempt Of court, but their position
was upheld by Judge Wright.
Haas said that he lived in New York and !
Was interested in the millinery business |
and horse racing. Once. he continued. he !
had lived In Washington and been en-
ployed by the Department Of Agriculture. |
Questions concerning his relations with |
Peckham and Holmes he refused to an
,wer. Peckham likewise refused to speak |
II his association with Holmes and Haas.
WASHINGTON. Aug 23.-The statement
was made here tonight that Peckhnm
vas arrested first because Of information
'eceived here that there was possibility
hat Re might soon 60 to Canada. On
'eceipt OF this information, it Is said, Dis
riot Attorney Beach conferred with the
Department Of Justice officials as to what
,ourse he should pursue, and he was told to
Use his own judgment
Accordingly, Peckham was taken into
ustody on q warrant issued by Judge
ylabaugh. Peckham was one OF Ave men
mentioned in the cotton leakage report at
he time E. 8. Holmes. former associate
was dismissed in disgrace.
he men we're: L. C. Van Ripper Moses
Iaas, F. A. Peckham, E. S. Holmes and
'heodore Price.
Van Ripper Is credited with causing the
otton investigation by giving to the South
m Cotton Association information relative
D ii olnes's operations. Other arrests
ill be made, but who the persons against
HON warrants have been issued, 1t is i'm
ossible to learn.
The authorities here are said to be fully
dvissd as to the whereabouts OF Holmes
nd know that Haas Is within reach Of the
authorities II he u needed.