The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-09-30
OFFICES RA|DED,,
BROKERS CAUGHT
Seven Members of B. III.
Scheftels and G Company
Under Arrest
WARRANTS OUT
FOR SIX TEEN
Department Of Justice Conducts
Sensational Raid, Alleging
That Firm Has Conducted
Crooked Business, and
Has Used Mails to De
fraud It's Customers.

one Of the most sensational raids ever
engineered by Federal authorities In
this city, directed to-day against the
firm of B. II. scheftel & Co, brokers',
In Broad street, seven members Of the
company, including B. II. Scheftel, Its
president, were held in heavy ball this
evening by United states Commits
sioner Shield for hearing on October s..
on charge Of using the mails to de-
fraud. Tonight search is being made
by the police and by government In
spectors for George Graham Rice,
whose real name is said TO be Simon
Herzog, the originator OF the race
track bet tipping system. who Is de-
clared to be the real head of the con-
cern.
After other omcers.
At the time OF the raid here an
nouncement was made from Washlng-.
ton that warrants had been issued Tor
the managers OF the company's branch
offices In Boston, Providence, Phila-
delptia. Detroit, Chicago and Milwau-
kee. According I'd agents OF the De-
partment Of Justice, the Scheftel com
pany has peen engaged in promotins
the sale OF mining securities OF DOUBT
ful value IN dll PAL 10 VI liz
Estimates of the firms dealings are
placed as high as $5,0oo,00o
The seven men arraigned here are q.
II. Scheftel. Charles F. Belser, secretary
of the company; George l. Suilisan'
Clarence Mccormack. John Delaney.
William T. Seagrave and Charies !, q; ?;
stone. Warrants for sixteen men had
been Issued. but the others. including
Rice and Charles S. Herzog, who Is
said to be his brother. eluded the rad
ers. Rice had been in his offices carrier
in the day. but had had LETT .,e eeISae n1aee 'ae
officers sWoopsa aawn e gave as bail IN
$4,000 Tor scheftei, $4,000 for Sem
grave. $4,000 for Stone and $2.be0 Ior
Delaney. Belser. Mccormack ana sui
Ivan were committed TO the Iornus; '.WhI1s as
the hearing was set for October .. IT
is expected that the Federal grand
jury will have taken action before that
time. 49,.
many was organized about two years
ago, and had conducted large busi-
ness, mainly through an extensive ad
vertising propaganda. Mining spec!al-
ties were Its chief offering TO lnves We,
iished to reach clients, and corps Of
thirty-fve stenographers Is sald 70
have been required to attend to It's COZ.
rspondence After the arrests to-day
two patrol wagonlhoads o. .e,psd psaets by
the inspectors for examination.
Investigation Made.
Proceedings against the concern. ~
was stated. has been contempiaateto a.et oy
ton was deferred until an investiga-
tion of the properties controlled oy
ii could be Investigated. Speclal agents
are said to have been sem. INTO .Wese VEST
and the raid was decided upon when
their representatives were received.
Another charge against the coMpanY.'
made by George ScarborouEh, ihe 2s gou-
plaint, is that 1t had resorted to what
he called a Crooked bucketshoP
scheme" He declared the concern had
charged customers s per cent. on mar.
gins and had collected commissions
Without rendering any service IN re-
turn. The difference between the ac.
tual prices of stocks on curb market
and fictitious quotations gwen given Gus ,is
converted to the company's use, IN
his complaint, the defendants are ac-
cused of ofattempting to defraGd W1iliam
A. Childs, Charles Il. schlacK ana or's
The raid to-day was made while tne
curb market was in full swing. and at
.tracted much attention. Thoasands
rushed to the scene and police reserves
had % to be called out to clear a path
FOR the patrol wagons.
Raid in Chicago.
Chicago ILL., September 2s.-The raid
of the Offices of 3. Il. scheftels Sd y Co..
made BY Deputy United States mar
shals. The manager, p, L Mead was
arrested. Clerks, stenographers an and
telegraphers were served With sub
Manager Mead was taken before
United States Commissioner Foote. He
waived examination, and furnished
United States District Attorney Sims
ordered the arrests in Chicago on re-
ceiving 4OO-word cipher telegram
from Henry a. Wise. Federal attorney
in New York. as
WILL LIFT QUARANTINE