Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1905-07-10
From Washington.
Correspondence Of the AIexandrla Uazel

The spectacle of subordinate en-
ployee of the government, through the
manipulation of his official position,
gathering in thousands of dollars aside
from his salary, is that presented by the
case of Edwin S. Holmes, jr., the de-
posed associate statistician OF the De
partment of Agriculture. District At
torney Beach, of the District OF Coluin-
bia. has issued statement to some ex-
tent counteracting Secretary Wilson's
assertion in his report on the Holmes
scandal that Mr.. Beach had said no
criminal action would lie against
Holmes. Mr.. Beach SAYS that upon the
information presented TO him last Fri
day by Mr.. Wilson, he informed
the secretary prosecution would
not lie, but as 10 the manner of the
Investigation and on the broader
question of a possible criminal con-
spiracy, he was not consulted. Lawyers
in Washington are taking deep pro-
Iessional interest in the Holmes case.
They say that provided the facts alleged
in the report of the secret service agents
can be established, several actions are
possible. Secretary Richard Cheatham.
of the Southern Cotton Growers Asso-
citation, is now OH his way to Atlanta,
where it is believed he will take further
Steps in pushing the investigation. He
has declared several times that 1t was
impossible for one man to engineer the
leaks and manipulatiOns without Others
in the bureau of statistics having either
guilty knowledge or participating in the
crookedness. He believes that if the
evil is = he eradicated there should be
a thorough clean up at the present mo-
ment.
There IS a feeling of resentment at the
office of the Comptroller of the Currency
over the criticism in the middle west of
the alleged incompetency of the bank
examiners in not discovering the exces-
sive loans made by Illinois and Kansas
banks to C. J. Devln, the magnate
whose recent financial embarrassment has
caused great distress to a number OF
banking houses and industrial institu-
lions. "Tbere is no authority in
this office to prevent such excessive
loans" said Deputy Comptroller Kane
this morning. "The law prohibits the
issuance of loans to an individual or firm
in excess of their per cent. OF the capital
stock. Corporations are favored. Each
can borrow to the 10 per cent. limit, al
though headed by the same individual
as in the Devlin case. 1t is bad
banking, but entirely within the law.
This office had been fully informed OF
the Devlin loans. In this case as in
others where a long line of loans to prac-
ticaly one individual exists the attention
of the banking firm was called to the
matter. We sent several letters TO one
of the Illinois banks just closed by the
Devlin failure. The bank examiner re-
ported the excessive loan at once The
next statement of the bank showed that
the recommendation Of the comptroller
had been adopted They had wiped out
excessive loans. Other banks heavily
carrying Deyln paper were advised by
this Office that they were on the danger
line, but they did not reduce the loans.
The comptroller had done all that he
could to correct the abuse"
Secretary Wilson said today that he
bad no retraction to make in the case of
Theodore II. Price, the New York cot
ton broker. who was mentioned in .be
report on the cotton report scandal. He
said: con Holiness testimony and the
letters which he admitted writing, / dis
charged him. This was the only official
action | took. The rest of the report of
the secret service agents J gave to the
public, and any reference to Mr. Price
therein | will neither withdraw nor
comment upon" The matter is now
out of the Secretary's hands, according
to his idea, and any further investiga-
ton will be done by the Department of
Justice should prosecutions be deter
mined upon by officers of the latter de-
parlment. Mr.. Price has threatened to
bring suit against the Secretary unless a
retractlon was made, but there is no
chance of that now
Admiral Sigsbee's squadron, bearing
the body of John Paul Jones from
France, is expected to arrive in Ameri-
can waters about July q. 1t will be
met at sea, some twenty miles off the
mouth of the Chesapeake, by portion
Of the battleship squadron under Admit
raj Evans, and will be greeted with an
admirals salute. The feet will then
proceed to the anchorage at Annapolis
whence the body will be transferred to
American soil.
There will be no termination of the
inquiry into the purchase Of the Lans-
ton machines in the government print
ing Office by the sale of the Lanston
stock to the Mergenthaler people. "There
has not been, nor is there now any
movement" said P. T. Dodge, president
Of the AIergenthaler company, as he left
the printery for lunch, con the part of
our people to buy the Lanston stock"
Attorneys for the LanstOn company are
equally positive about continuing the
fight Foreman L. G. Hay, who claims
lie has kept an accurate account of the
cast and of the amount of work done by
the machines, was before the investiga-
ting commission nearly all the forenoon
sessions.
Announcement was made at the Offices
of the Panama Canal Commission in
this city today that the commission will
issue circular in the immediate future
inviting nroposals for furnishing nm