Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-04
HOLMES TRIAL BEGINS
Cotton Leak Investigation Is
Under Way.
OUTLINE BY Mr.. BEACH
Government Counsel Arouses Ire Of
Lawyer for Defense.
SPIRITED C0LLOQUY ENSUES
Witnesses Placed on the Stand Today.
The Jury Completed Yesterday
Afternoon.
PIRITED COLLOQUY ENSUES

I've expect to prove that Edwin g.
! Holmes jr.. entered into a conspiracy. and
that he entered into a conspiracy to de-
fraud the United States government"
Thus abruptly defining the two counts OF
| the indictment as the two problems which
confront the jury for determination. At
torney Morgan II. Beach this morning orm-
ally opened the trial of Holmes before
Justice Stafford in Criminal Court No. l.
Attorney Beach, who IS special counsel
| for the government, made the opening adj
dress to the jury today in the called
cotton leak case, presenting a brief review
| of the case and of the events leading I'D
| to the arrest and indictment OF Edwin s.
Holmes, jr., Frederick A. Peckham and
Moses Haas He summarized Holmes ca
| reer in the Department OF Agriculture. lead
| ing up to the latter being recommended
| for the post of assistant statstician by
| Statistician Hyde in November, 1903, and
| the appointment being approved and rati-
| fled by Secretary Wilson. Detailed descrip-
| ton Of the method OF operation OF the bu-
| reau Of statistics was given and Mr.. Beach
| laid particular stress upon the obligation to
| secrecy In handling crop reports which de-
| volved upon Assistant Statisticlan HolmeA
especially when he was in full charge Of
| the bureau in the absence of Mr.. Hyde.
! The attorney declared the government
| would present evidence to prove a num-
Der Of preliminary meetings between
| Holmes and Peckham and Haas. We ex-
| pect to show you that 1t was understood
| between Holmes, Peckham and Haas that
| Holmes, in advance of the time set for-the
| issue of the cotton crop reports from the
| bureau of statistics, would inform Peck
| ham or Haas, or any one else they could
| find to back the scheme, of the character
| of the reports. 1t will be understood, of
| course that the government reports upon
crop conditions would have a marked effect
| upon the market, and 1t will be shown that
the trio agreed to deal upon the cotton ex-
| change on the strength of the advance In
formation furnished by Holmes, and to
| divide the profits If any there Were"
Meetings of Trio Alleged.
| Mr. Beach described several meetings be-
| tween Peckham, Haas and Holmes in the
| Raleigh Hotel. Washington, and one spe-
| cffic occasion on which Lewis c. Van Ripper
| was brought into the scheme to furnish
| money for the transactions on change.
| On the strength of the advance informa-
| ton upon the cotton report of December,
| 1904 Mr.. Beach said, the coterie realized
| a profit of about S1G7 600 on one deal and
| $4,000 another, and mention was also
|
FINALLY. in December. 1904" Mr.. Beach
| continued THE trio set up brokerage Of
| flee in New ork city, and placed man
named Mercer, who was not in the secret.
| in charge. Out of the profits already re-
| ceived the sum of $4,000 was set aside to
| operate upon the market, the firm was
| capitalized at 5000 and a seat on the
| cotton exchange was purchased for Mr..
| Peckham at a cost of $1,000" 1t was
| stated Mr.. Holmes signature upon several
| papers of this firm would be shown. paperH
! which 1t was thought were destroyed, but
| were not. Other signatures of the defend
| ant, upon checks, indicating his participa-
| ton in the division of profits Mr.. Beach
| declared, will be brought into the case.
''Of course, Mr. Holmes became possessed
| of considerable money" the attorney con-
| cluded, land will offer 1t I'm evidence
| that he industriously informed his friends
| and associates in the bureau of statistics
| that he had sold gold mine, a mine which
| he named and located. and that he had
| received between $4,000 and $4,000 on the
deal. We will show that this gold mine
was mere grub stake of. perhaps. 500
! or $500, and so nearly worthless that its
| owner practically abandoned it,
Mr.. Beach said Moses Haas was at one
time employed in the bureau of statistics.
| but Frederick a. Peckham was not.
Objections Exchanged.
| "Peckham and Haas are in New York.
| but they will be brought here for trial." as
| serted Mr. Beach.
Il object to that" cried Mr.. Worthington
! of counsel for the defense. Zone of the
men named has been discharged in extradi-
| ton proceedings and the other"
Il object to that" interrupted Mr. Beach.
These men were indicted jointly with
Holmes"
At this point Justice Stafford nterjected
an order that no reference should be mace
to Haas or Peckham by either side, and
that ii made difference in the trial of
Holmes where Peckham and Haas might be-
Joseph b Bennett, a clerk of the Agri-
cultural Department, was the first witness
called, and he produced a number OF papers
showing the appointments of Holmes to
various posts in the department before he
was made associate statistician, appl-
cations made by him for the several
positions, including that of statsticlan
lin event Of the removal of the then incum-
bent" Objections made by the defense and
the papers went into evidence under ex-
ception.
Order offered in Evidence
A general order promulgated by Secre-
fary Wilson enjoining strict secrecy on en-
ployes of the department upon all details of
the crop reports was introduced in evidence
by Sylvester r. Burch. another employee Of
the department. One copy of the order
was marked to be read to the jury
Victor II. Olmsted, the present statisti-
clan. described in detail the workings of
the bureau, explaining the method of prep
aration of the crop reports With particu-
lar reference to the cotton reports, Mr..
Olmsted said the bureau had list of cor
respondents all through the cotton states.
including farmers. business men, bankers
and cotton ginners.
Court Takes Recess.
At 1890 O'Clock Justice Stafford ordered
the usual noon recess until lis o'clock
Mr. Olmsted resumed the stand at the
opening of the afternoon session of court,
and under questioning of District Attorney
Baker, he explained in minute detail the
plan of preparation Of the statistics OF the
cotton crop reports
What the rule regarding secrecy
as to results, complete figures, of the
reports?" queried Mr.. Baker.
Every precaution was taken to keep the
figures secret" replied Mr.. Olmsted. AT