The Montgomery advertiser., 1907-06-18
HOLMES ACCELERATED.
Positively Anirms Crooked Dealings
 With Agricultural Employees.


 HOLMES rNGFIMIsATED.
 Positively Anirms Crooked Dealings
 With Agricultural Employees.
 Washington, June 17.-In Louis H. Van Riper. New York broker, the government toe, introduced the first witness in the triaI Of Edwin H. Holmes, Jr.. who has directly connected Holmes with the premature divulging of the infor. ation on which the cot ton crops of the Agricultural Depart ment are based. MT. Va. Riper was on the stand all day. He said that he had met Holmes in 1904 through F. A. Peckham. and that he had agreed to give them two-thirds of any profits that might be derived through stock deals made on points supplied by Holmes. He thU told how Holmes had kept his part of the agreement by giv- ing out information a day in advance of the appearance of the official report; quoted figures to show the degree of accuracy of the information supplied. and related instances in which Holmes had been i'd money through Moses Haas. He said that $167ooO had been cleared on the informatio secured in advance of the report Tor November, 1904. He also testified that Holmes had agreed to keep him informed of the plans of other cotton brokers and
  nership had been formed in which Holmes was one of five members. After stating New York, to be his residence and saying that he is en- gagged in operating in Western mining, Mir. Van Riper proceeded to detail his dealings with Mir. Holmes. He said he had first met Holmes on the 7th of August 1904, a. hotel in this city; that he came to meet him on presen- tions made by Frederick A. Peckham of New York, who had assured him of Holiness ability to supply advance i'm l formation concerning crop reports. The l witness said that the introduction was made by Mir. Peckham and in that gem | tleman's room, who stated: This is the man told you about and l he is going to show you that he can | give you the advance figures on tho crop report"
 l Holmes. eaccording to the witness. 1 proceeded to exhibit copies of the crop bureau and to tell him that he had practically made up the reports, and that Statistician Hyde had report ed his estimate. |. He said that, at the second inter- view, Holmes had given him what he said was the advance figure on the wheat report. and that he had written details of the report.
 The figures of the official report were,
  Holiness advance information. Letter to Van Riper. letter to Van Riper under date of August IS was introduced and read as follows
 Other parties have changed their plans slightly and think 1t advisable for you D know about them. I there- fore suggest that you come here Satur- day or Sunday or, if you cannot do so. for me to come to New York" Van Riper said this letter had reference to Prices plan which Holmes had at first stated was to buy cotton the latter part of August previous to his advice on the next report
 He could not come to Washington at the time suggested, but there had been further correspondence relative to the crop report, one letter from Holmes dated August 80. reading:
 If you have bought any of the stun, sell it and sell as much more as you can in addition. We're going to show slight decline and as this is totally unexpected 1t will send things down like fury Other parties are going to close out. Tear this up."
 letter from Peckham to Van Riper August 31 to the same effect was also
 read. MT. Peckham also requested that his letter be destroyed. Van Riper said that special cotton was the stuff" referred to in Holmes letter and that. as result of the letter. referring to the cotton report for September 5, he had sold cotton short" expecting the market to, go down. He dealt again with Gates and Company, and 1t had been predicted there would be a break in the market. He then realized profit of about $2,100 of which he had paid Peckham two thirds. The checks, showing the payment was exhibited They we're endorsed by Peckham and Holmes.
 Another Letter. C Another letter of September 8, sign ed F. Peckham. was read. It gave ad- vice to the effect that the approaching wheat report would show big depre- ciation on the spring crop and sug- gesting heavy purchases AS result a profit of $2,500 was realized and two thirds of this amount was turned over to Peckham. the previous understand ing being that Holmes was to trade through Peckham Other letters and the telegrams from ,Peckham dated, Washington, were read. All dealt with the cotton report and all purported to give inside information. There had been an urgent request for the de- struction for all communications.
 He had been buying cotton during September but the latter part of that months he had come to Washington to see Holmes WnO naQ auNlSeu nm Io sell because the crop would be bear ish rather than bullish. In one of his communications, referring to the then approaching october report, Peckham had u.ed the expression best contract eyer had" and ,.lis, the witness said. was an agreed dpon expression indi- eating the favorable condition of the arrangements with Holmes.
 The explanation of this fact led to an explanation of a system which was made by Holmes.
 Tt was agreed" he said, that if anything went wrong on the day of the promulgation of the report Holmes was to lower the window shade in the statIstician's room as a warning to Peckham."
 He added the explanation that this was to be done in case of a mistake in the advance figures or in case the statisticians refused to accept Holmes conclusions. He said that the market had broken as predicted on the strength of the October report, but, owing to the fact he had failed to close out as soon as he should have done, he had lost money.
 MT. Van Riper's direct examination