The sun. [volume] (New York [N.Y.]) 1833-1916, 1882-12-17
ARREST OF GEORGE j. RICE.
ACCUSED or GETTING ABOtT 80. 900
By FRAUDULENT MEANS
The EH.Presidsnt OF Two Railroad Com.
panies Locked Up at the Police Central
Omce-An Explanation In his BEHALF

panies Locked Up at the Police Central
OMes-An Explanation In his BsAals
George j. Rice, ex-President Of the Utica,
Ithaca and Elmira and OF the Cazenovia. CAN
astota and De Ruyter Railroad Companies. was
taken before Justice Patterson in-the Tombs
Police Court yesterday morning. to answer q
charge made by Henry 8. King Of London.
England. to the effect that Mr.. Rice. while
President Of the first mentioned company. was
concerned In the signing OF papers purporting
to be certificates for 10000 shares Of the capital
stock Of the company. OF the face value OF
100000. the signing and issuing Of which
were not authorized. and to the effect that the
prisoner pledged those papers with the Third
National Bank Of this city. with intent to de-
fraud that bank. At the request Of the f-!s-
oner. the case was adjourned. and he was taken
back to the Police Central Office.
MIR. Rice IL the prisoner who was taken to the
Police Central ONCE on Friday night and whose
arrest was surrounded by a good deal OF mys-
terry. He is an Englishman. about 40 years Of
age. Is over six feet tall. and would be noticea.
BILE among other men because Of his portly
figure and rudy complexion. His arrest was
caused by Solon Derrick. notary public.
Of 50 Wall street Some five months ago Mr..
Derrick was called upon to serve papers
on Mr.. Rice in civil suit. He says that he
had never seen him. but had description Of
him. One EVENING" he came across a man in the
asked; AZ SSS Mr. Kss and is .h se e! sSe
says that kat sRs person.
thst he left the papers With him: Because oi
tained to ala Detectives Haley eS'0e and Rssnd
When some H. tE0 weeks ago were taken
The hSusbt hs q hos t. which
Mr.. Rice and followed him to Delmonlco's, The
Eet and gs Mr. E1sfs az dDnDer
se Nj e Of
and Inquired whether he was, was u deputy sheri
fSsss he dssssSiSs fsssaw shS sse
Arrest was arrved of% as the P Se
ers arrival there. Mr.. cleveland said he pre
ferred to make the charge 70 the inspector.
sds WAITING r PIN n S the charge
and q STsaas aerFs s:
Ing in a room at the Central ONCE '1 b sHse
being taken to cell. he smoked cigar. but
l., Mr. King who makes the formal complaint,
SS snte House H L IN Ss III ay MERE hs
banking house Of which Mr. King IS the h head.
{ority Of the stock Of the Utica, ithaca and
and Re NSyteP Of M SSS Mr. RSs
made President Of these companies in 1878. The
English stockholders became dissatisfied with
"en mi him. efMT Mr. SlRRR ss psc
cured a recevership. which action was set ide
By put The as
The Sc ;bs road his day M King
and .Elmira road is 50 100000 in 10000 shares
at 500 each; that, AS deponent is in
tween the 2sd day Of Apri io 1851 and the the,
lYth OF une. 1852, said George James Rice and
said sea s rSa sad se az Fefdeqt and
and Eimira, Railroad Company. wi win t!n ana
with the intent . issue, sell. or pledge" the
Certificates for 10000 shares alleged to be
shn4as sef Ra tio o # ho genuine
Issued to lawful holders in London. The am
daytt WAS made on Dec before Justice Nor
Tweed of SO Wall street are counsel Tor the |
English capitalists.
his ee last Se mr. R lie
aiterward said: Tho Utica Ithaca and FL |
mirs red Rin was bouEh1 at foreelosare sale by
s50.0o0. The purchase was made on the advice |
Of Mr.. Rice. He represented H. S. King |
Il Co. in tho transaction, under full |
power Of attorney. When the road was re- |
organized Mr.. Rice was elected Pres ident |
Stock was issued to tho amount Of 81 000.O 900. |
and the securities were put upon the market |
The 10000 shares OF stock hypothecated by MIR. |
Rice with the Third National Bank were given |
to secure his notes for 10000 for money bor- |
rowed from the bank. The notes were signed |
II. s. King Il Co. BY Rice, and also with his |
own namo as President of the road. We claim |
that this was done in good faith under the |
power of attorney and that tho money was |
used in operating the road. The, notes were
renewed from time to time by Mr.. Rice. he |
signing the renewals rs he did when the notes
were made. The last renewal was in June. |
On Nov, II. 1882. Mr. Rice told the President OF |
the bank that he would take up the notes and |
redeem the stock. To do this he gave II. s.
King Co.'S check for 80 900 and interest. This
check was dishonored by the London house.
MIR. King claims to have discovered that Mr.. |
Rice ovcr-issued stock. or did not cancel stock
called in that he misappropriated $50 600 OF
the earnings OF the road and that in the last |
renewal of the notes he committed forgery in |
signing the name of H. s. King 4 Co.. as his |
power of attorney from that firm was revoked
n February last, and that he knew ii was re-
'oked. He denies that he msappropriated
any money, and that he ever received notice Of
he revocation of his power of attorney. or that
Mr. Rice has been residing at Horseheads,
near Elmira., His family returned to England
several months ago.