Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-18
PROFITS IN THE
COTTON LEAK CASE.
Testimony of Broker Van
Ripper in Holmes Trial.
PECKHAM, HAAS AND HOLMES
Alleged Ruse Whereby Holmes Could
Account for His Money.
TESTIFIES TO SOURCE OF "LEAKs
States on Cross-Examination That
Bear Operations Were Conducted
Upon Verbal Assurances.

Upon Verbal Assurances"
When the trial of Edwin S. Holmes, jr.,
was resumed before Justice Stafford in
Criminal Court No. 1 today, Louis c. Van
Ripper, the New York broker, continued his
testimony, with Attorney Morgan Beach,
special counsel for the government, as ex-
aminer. He told again OF the many pay
ments made to Peckham Haas and Holmes
on the various occasions when the profits
of operations on the cotton exchange were
divided.
Did Peckham every say anything to you
about gold mine?" queried Mr.. Beach.
Haas and Peckham came into my Office
in the latter part of December. 1904. with a
contract they said they wanted me to sign
so Holmes could show 1t to his friends and
account for the possession of so much
money" answered the witness.
Letters numbered exhibits % and 45
were shown Mr.. Van Ripper, and he was
asked whether the references they contain
ed concerned the gold mine. The witness
referred to the dates which were in Au-
gust. 1904 and said at that time he had not
heard about the mine.
Said Law Could Not Reach Him.
Did Holmes ever talk to you about what
would happen to him if he should be found
out?' continued Mr.. Beach.
Yes" replied Mr.. Van Ripper; "he said
he would merely resign, and that they could
not prosecute him because there was no
law that could cover such a case. He said
he had. legal advice to that effect"
Did he ever talk to you about any ear
lier rumors of cotton leak?'
ION one occasion Holmes stated he had
demonstrated the system then in existence
to President Roosevelt. He went to the
White House and showed the President
how impossible it would be for information
to get out in advance. and the President
congratulated him on the showing
The time of this exhibition at the White
House was PLACED as in December, 1903.
Did Holmes say to you whether there
was any truth in the rumor that advance
information was going out of the bureau
of statistics?'
Yes, he said he and Moses Haas had
been furnishing the figures to Theodore II.
Price, one of the largest operators in New
York. Haas came to Washington at Prices
solicitation to see IL the figures contem-
plated for the report Of December, 1903,
could not be made less than 100000
bales for the crop yield for the year.
Holmes said Price had gone short on the
market. and Haas made several trips be-
tween New York and Washington to nego-
tiate with Holmes to see II the report Of
the yield could not be less than 100000
bales. stated price was offered IL the
report showed under 1O,OO0,0O bales, and
the witness said he understood an arrange
ment was reached that would satisfy Mr..
Price.
Assumed No "Risk"
Getting down to the point where the syn.
dictate of Holmes, Haas Peckham, Var
RipCr and Mercer was dissolved. just afte
the profits made on the ginners' report lat
in December. 1904, were divided, Mr.. VA
Ripper said Holmes and Haas came to hire
and wanted to draw down their shares of
the $4,000 fund which had been retained
for further operations on the market He
said both of them joined in the statement
that when they were operating with Mr..
Price and furnishing information to him
they did not have to assume any of the risk
incident to the transaction on change.
II said if they wanted to withdraw I
would take over their interests and give
them their proportion Of the $4,000 because
did not feel that / could take all the risk
for only % per cent of the profits contin-
ued Mr.. Van Ripper.
The witness then told Of the transactions
looking toward the making Of another pool
to operate at the benefit of government sta
tstics In the cotton market In June. 1905
He said a suggestion was made to bring In
fuence to bear to have more valuable po-
sitiOn tendered.M Mr.. Hyde than that of sta
tistician so that he would resign and leave
the way open for Holmes to become the
chief of the bureau of statistics. Negotia-
lions were opened to have Hyde meet Mr.
Price and to have him make a lucrative
proposition to Mr.. Hyde. but this fell
through. and II was finally reported to Van
Ripper by Haas that plans had been carried
to a successful elimination by which Sta
tistician Hyde was to go to Europe to learn
the condition or cotton and other crops and
to arrange for system by which foreign
reports could be exchanged with this gov
eminent
Temperance Of Hyde.
Some months elapsed before Haas
again appeared. Mr.. Van Ripper said but
May 81, 1905, Haas came into his office
and said it was understood the cotton
report for June would be a reduction of
IL per cent in acreage and place the con-
dition of the crop at 10. He detailed
what passed at several meetings with
Haas. which finally resulted in his fol-
lowing Haas advice to get in heavily on
the market. Speaking of a meeting
with Haas in the Waldorf-Astoria, Mr..
Van Ripper said Haas reported that Mr.
Price wanted him to go to Washington
and arrange with the colonel (which
referred to Holiness to have the cotton
report show higher figures because
Price had gotten in on the market.
Van Ripper said Haas did go to Washing
ton, but called him up on the ng-distance
telephone from Baltimore, with the report
that the Colonel had stated there would
be no change in the figures previously an
nounced. Insteada of this, the witness de-
clared, the report issued showed the
acreage reduction at ia per cent and the
condition at IT,. and result of this in
formation he stood to lose between $4,000
and $4,000.
There was some arrangement by which
Haas was to help finance this transaction,
but. Mr.. Van Riner asserted, Haas has
never come around with the money. From
Van Riper's testimony from this point 1t
was inferred this evidence OF bad faith on
the part OF his former confederate was the
turning point in their relations and the real
cause of him coming to Washington and di-
vulgtng all of the secrets of the combina-
ton to Secretary Wilson of the Department
of Agriculture, and this, in turn, led to the
Indictment upon which Edwin S. Holmes,
)r., is now facing trial.
Cross-Examination
At this point the witness was.turned over