New-York tribune., 1907-06-18
PAID FOR COTTON LEAK.
VAN RIPPER H WITNESS.
He Testifes to arrangements Made
7cith Holmes.

New York broker, the government to-day intro
duced the first witness in the trial of Edwin S.
Holmes, jr who has directly connected Holmes
| with the premature divulgence OF the information
on which the cotton crop reports OF the Agricult-
uraI Department are based. Van Riper was on the
stand all day, and the direct examination had not
| been finished when the court adjourned, making 1t
probable that ne will hold the attention of the
/ court tomorrow He said he met Holmes in 1891.
through F. a. Packham, and agreed to give them
/ two-thrds Of any profits that might be derived
through stock deals made on points supplied by
/ Holmes. lie told how Holmes Kept MS part OF ths
! agreement by giving information day IN ad-
vance Of the appearance or the oITclal report,
! quoted figures TO show the degree OF accuracy OF
! the information supplied and related instances IN
which money had been paid to Holmes through
! Moses Haas. he said $4,000 had been cleared on
the information obtained IN advance OF the report
! for November 1904. He also testified that Holmes
agreed to keep him informed of the plans OF other
| cotton brokers and told how in the end regular
partnership had been formed IN Whlch HOMES WAS
of five members.
Something of a sensation was created when Van
Ripper called to the stand Mr.. ana Mrs.
Holmes manifested more interest than they nave
heretofore shown in the Van Riper seemed
Ill at under the gaze of the defandant ana ms
wife.
INTRODUCED BY PECKHAM.
After giving New York as his residence. and say
ing that he is engaged in operating in western
mines. Van Ripper proceeded to tell of his dealings
with Holmes. He said he first met Holmes on
August :. 1904. at a hotel in this city, where he
to meet him on representations i''Ec ~
Frederick A. Peckham, of New York who had
assured him of HoImess ability to supply advance
information concerning crop reports. He said the
introduction was made by Peckham in his room'
Peckham said;
.,rhis is the man l told you about. and he is
going to show you that he can give you the al
vance figures the crop report
Holmes, according to the witness. then eXhlp-
lted copies Of the crop bulletins and told him that
he practically made up the reports and Statsu-
clan Hyde had accepted his estimate. Holmes nae
also told him. the witness testified. that he had
been supplying information concerning the report
TO other persons in New York a result OF which
he had accumulated $55,o00 which was then locked
up In safe deposit vault. Among those 10 WHOM
he had said he had supplied the figures, according
Van Ripper, were Theodore II. Price and Moses
Haas. Holmes also promised. the witness said, not
only TO advise him as to the crop figures but 10
keep him informed TO Prices operations The
witness said he told Holmes that II he could show
his ability to supply the figures in advance he
would operate with him and give him two-thirds
Of the profits if he could supply the figures day
in advance. Van Riper said 1t was then agreed
that the information should be given through
Peckham, but in view of his absence the witness
returned 70 washington on Ausuhl 10 legE
figures on the wheat report. which was TO oe pu0-
lshed the next day
lie said at the second interview Holmes gave
him what h, said were the advance figures the
wheat report. and ne wrote them I'm his check
book and returned TO New York. Holmes then told
him that the report would place the average yield
Of winter wheat 1903 bushels to the acre, and
had given S75 as the condition OF spring wheat.
Objection was made TO telling what happened
Ripper said he gave his igures on the crop TO Mr.
Rogers. Of Gates < Co, who bought winter wheat
and suffered slight loss The figures OF the Off
Cial report We're, however complete duplicate Of
Holiness advance Information.
letter from Holmes 10 Van Riper under date
Of August is. introduced and read II follows.
Other parties have changed their plans slight
y. and l think 1t advisable for YOU TO know about
them. I therefore suggest that you come here Sat
urday or sunday. or. If you cannot do so. for me
TO come to New York"
Van Ripper said this letter had reference TO Prices
liEh al EFgs
cotton the latter part OF August account Of his
adVices on the next cotton crop report. He lld
not come 10 Washington at the time suggested but
mere was further correspondence relative TO the
crop report. one letter from Holmes. dated August
30. reading
WANTED LETTERS DESTROYED
II you have bought any Of the stun. sell at
once and sell much more as you can in addi-
ton We are going to show a slight decline and
as this is totally unexpected It viii send things
down Ike fury Other parties going to close
out Tear this up"
letter from Peckham to Van Ripper OF August
81 TO the same effect read Peckham also re
quested that his letter be destroyed
Van Riper said September cotton was the "stuT"'
referred to In Holiness letter. and as q result OF
the letter referring to the cotton report for Sep
tcnber lie had sold cotton short expecting the
market 10 go down.
He dealt again with Gates a. Co ho said and
as predicted. there II brenk In the market He
realized profit Of about S2IGO. of which he gave
Peckham two-thirds The checks showing the pay
ment were exhibited They were indorsed by Peck
ham and Holmes.
a letter Of September s. signed ..Fe' CPeckharn)
was read IT gave advice to the effect that the ap-
preaching wheat report would show a big deprecia-
ton on the spring crop and suggested heavy pur-
chases. As n result profit OF 81 800 was made,
and twO-third5 OF this amount was turned over to
Peckham. the previous understanding being that
Holmes be dealt with through Peckharn.
Other letters and kilograms from Peckham. dated
washington. were read. All dealt with tho cotton
report and purported 70 give inside information
There urgent request for the destruction
Of all the communications He had been buying
cotton through September, but in the latter part OF
that month came to Washington to see Holmes
who had advised him to sell rather than buy, be-
cause tho report would be bearsh rather than
bullish.
In one OF his communications, referring 10 the
approaching october report Peckham had used
the expression best contract had and
this. the witness said, expression Indicating
the favorable condition of the arrangements with
Holmes This led to explanation Of a signal
system which the witness said had been made
with Holmes. 1T agreed" he said that il
anything went wrong the day Of the promulga-
ton OF the report Holmes to lower the win
dow shade in the statistcians a warning
to Peckham."
He added that this TO be done in case OF
a mistake IN the advance figures In case the
statsticans should refuse TO accept Holiness
Cusons. He said the market had broken az pre-
dcted the strength Of the October report, but
owing the fact tnat he failed to close
he should have done ne lost money.
Van Ripper said that after meeting Haas and
Peckham in Washington ne them in Chicago
in company with Holmes. and afterward in St.
Louis They had considerable conversation ut both
places concerning operations in cotton, with tho
result that they began selling cotton In November,
and continued until the December report was is
eued He generally operated the strength OF
tho representations of Haas. who supposed to
be in frequent conference with Holmes and :ndi-
Gated a very bearsh condition. He dealt through
a number OF brokers in the November transactions
nd