The Birmingham age-herald., 1907-06-18

to the effect that the approaching wheat
 report would show a big depreciation on
 tEe spring crop, and suggesting heavy
 purchases. As a result a profit of $2503
 was realized, and two-thirds of this
 amount was turned over to Peckham, the
 previous understanding being that Holmes
 was to be dealt with through Peckhain.
 Other letters and telegrams from Peck
 ham dated at Washington were read. All
 dealt with the cotton report and all pur-
 ported to give inside information There
 had been an urgent request for the de-
 structon of all the communications. He
 had been buying cotton through Septein-
 ber but near the later part of that
 month he had come to Washington to see
 Holmes, who had advised him to sell
 rather than buy because the report would
 be bearish rather than bullish.
 In one of his communications referring
 to the then approaching October report,
 Peckham had used the expression, "best
 contract ever had and this. the witness said, was an agreed upon expression in- dicating the favorable condition of the arrangement with Holmes. The explana-
 tion of this pact led to an explanation of a system which the witness had made with Holmes. Tt was agreed" he said, that if anything went wrong on the day of the promugation of the report, Holmes was to lower the window shade in the statisticanS room as warning 10 feck- ham,"
 He added the explana tion that this was to be done in case of a mistake in tine advance figures or in case the statistican should refuse to accept Holmes conclu- sions 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. ay mi still in progress when court took a re- cess for luncheon.
 Paid Holmes.
 Continuing his testimony, MT. Van Riper said that after meeting Haas and Peckham in Washington he had next seen them in Chicago in company with Holmes and afterwards in St. Louis. They had conversations at both places in regard to | the cotton market with the result that they began selling cotton in November. He had generally operated on the strength of the representations of Haas, who was supposed to be in frequent conference with Holmes and indicated very bear ish condition. He had dealt through | number of brokers in the November transactions and had been successful to the extent of about s167,0O0 Of this amount s67,000 was divided with Haas and Peckham, Haas taking half and
  | of Haas share was paid In cash. What did Haas do with the cash?' 'He paid 1t to MT. Holmes"
 "When and where?'
 Tn the office at that time''
 MT. Beach brought out from the witness l the facts concerning the organization of | the brokerage firm of l.. H. Mover & Co. | He said that while the names of only Mover and Peckham appear in the arti- 1 cles of agreement, Holmes, Haas and | himself were equal partners with the other two. As the working capital of this firm $25.0O0 of the money secured in the November deal was used. Part of the money made on that deal was reinvested in December on the strength of Haas forecast of the cotton ginners report and s43,0OO had been realized as profit. One fourth of this amount was paid to Haas in currency and by him turned over to Holmes
 .In December, 1904. the firm was dis solved and Van Riper testified that $3s.- 2S2 had been paid to Haas in checks and the same amount to Holmes in currency. MT. Van Riper was still under examina- ton when court adjourned.