Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-09-30
CURB BROKERS
TAKEN IN
RAID
WARRANTS CHARGE
MISUSE OF MAILS
Government Agents AIIege
Concern Promoted Mining
Stocks Of Doubtful VaIuei
Deals Aggregate Millions,
tBy Morning journal Special Leased wirel

fBy Morning journal Special Leased Wifel
New York sept. 29.--Folowing one
I OF the most sensational raids ever en-
eineered by federal authorities in this
city, directed today against the firm
OF Il. RI. Seheffels & Co, curb brokers
in Broad street, seven members Of the
company, including both Scheftels its
president, We're held In heavy BAH this
evening by United States Commits
sioner Shields for hearing on October
5. on n charge of using the mails to
defraud.
Tonight search is being made by the
police and bg government inspectors
for George Graham Rice, whose real
name is said 70 be Simon Herzig, the
originator of the race track bet tip
ping system, who is declared TO be the
real mead of the concern.
At the time Of the raid here an
nounccment was made from Washing
ton that warrants had been issued for
the managers of the companys Of
fiees in Boston. Providence, Philadel-
phia, Detroit Chicago and Milwau-
kee.
According to agents OF the depart
ment of justice the company has been
engaged in promoting the sale of min
ing securities Of doubtful value in all
PARTS Of the country. Estimates Of
the firms dealings are placed as high
at s5,000.0 600.
The seven men arraigned here are;
b. II. Scheftels, Charles r Belser,
secretary OF the company, George 7.
sullivan. Clarence Mccormack, John
Delaney, William r. Seagrave and
Charles r. Stone. Warrants for six
teen men had been issued, but the
others including Rice and Charles
tttl,., fo soft no hpnt hqp
eluded the raiders. Rice had been In
his office earlier in the day but had
left before the Officers swooped down.
A surety company gave bail inI
SIS, 900 for Scheftels, $3,0 for sea-
grave. 5000 for stone and SO, 2,500 for
Delaney. Balser, Mccormack and
sullivan We're committed to the Tomb
as bondsmen were not forthcoming.
While the hearing was set for OctO-
ber 3, it IS expected the federal grand
Jury viii have taken action before that
time.
The firm OF b. H. Scheftels & Co.
was organized about two years ago
and had conducted a large business,
mainly through an extensive advertis-
ing propaganda. Mining specialties
We're its chief offering to investors. a |
weekly newspaper was published tot
reach clients, and a corps OF thirty |
five stenographers is said to have been
required 10 attend to its correspon- |
dence. After the arrests today two |
patrol wagons loads Of papers, books |
and memoranda were seized by the in |
spectors.
Another charge against the com |
pany by George Scarborough. the gov
ornment Inspector who made the COM !
plaint is that 1t had resortcd TO what
he called crooked bucket shop |
scheme" He said the concern had |
customers SIX per cent on
margins and had collected commits !
sions without giving any service in re- !
turn. The difference between the ac-
tual prices Of stocks on the curb mar
let ami fictitious quotations given
scarborough alleges was
10 the company's use.
In his complaint the defendants are |
accused Of attempting to defraud |
william A. Childs, Charles s. Slack, |
and Dr u. J. Symanskt The raid
today was made while the curb mar
ket was in fun swing and attracted /
much attention. Thousands rushed TO |
the scene and the police reserves had |
to be called out to clear path for
The patrol wagons.