The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-09-30
SCHEFTELS JOINTS RAIDED
Con,Gausd from Ftrsi Page

not until last NAV, however. that Atfpfucy-
GENERAL Nickersham TOOK up the case
and sent out his men 10 get evidence
Two months ago, while this lnvestiga uoh
was still la progress, the Boston curb
i passed a resolution Ia eXpel any metnoe,
/ 10 the curb who was found to have uaded
with Scheftels a 60. ar any OF its mem
/ hers. Although the company did business
: regularly On the New York curb. being
! "a corporation, u could not under the rules
of the curb. he a member. and indlvldual
members who tried To Join the curb or
ganza',On v ore turned down.
The Department investigators dldn
have much trouble IN getting the history
Z Of the company and lie enterprises, u
! found that the concern had got options
on properties regarded AS worthless ana
| had Incorporated these options. bOuNaIu
| Consolidated. kawhide Coalition. SCUM
Quincy and Rawhid~ Queen were some
of the CusiDa aieS thus launched. I'm
BOuVuTd T. tr,l.sion Rice and his associates
are behes a to have cleared up SSoUO'
on South Quincy, 100000. There
hasn't bs'rn much doing ia either for some
tins. ki~hide Coalition, which hhd "A
skyrock-t rise and sudden drop whlle
Nat G. GoOslwin was aS=oCia ts'd with hlce.
followed these. hut 10 was Ely t~nirdI
which -eem.d to l'e getting the money
" hen the Depa rtment 81 Justice hegan
looking things up.
kly Central was incurp Grated; -
said IN good faith 10y "A Philadelphia
crowd who capitalized u AT SIC. nOOD
IN $40 shares and then gave u up IN disgust
and allowed Rice To have ssD.Uo shares
for a few cents palece. Alust VI these
shares b" bought outright. hut some
he took options on.
The special invest gaf ors have evidence,
Il said. that Rice aud he associates have
sold more than three times the capitalIza-
ton az the company. or In other Worns
have distributed s4s.OD0O 81 stock m
a COMPANY capitalized az Sl6.UO.UD
They have sold this stock all the way
from 81 centA TO s. "A share, and IN th'
last year, according 10 the Information
nuW in the hands 81 the Government.
have cleaned up a. net profits NOR" IMAM
s3DO.UD Their gross receipts are seti-
mated Ia have been between tS.OoO,"o
and ssUD.Dn
la getting rid 81 this IT pck and tn. stock I
IA other 81 their companies Red Letter /
sullivan and his cham ~ letters were The |
prime factors. Th. first letter informed
yuu that Schsftsls 4 Go had know ledge .
Z hat a certain stock Mas about tO have 7
"A bisg rise. but ~ WASH know Just which {
one N you wanted - make your for
tune get all the mOney you could al once .
and LET SChaftels A 60 keep n on ice
for YOU until you heard more In the
next letter YOU got a last ~ mining -iOc ks.
Each ~ thcss. had "a code word Some dey
"A code word would b. flashed 10 you
" Inch would mean that the blg movement
was On Then YOU would know what
~ ock was meant and could send SChefteis
A 90 an order To buy This letter would
to- semi out IN patches Of sOO. 90 at time
Dne group II clients would ge' 1t three
months after another batch had been
Itu through the mill There N evidence,
i ~ SAID. Ia show ihat a. a part u this
plan 3 Osi share would h. report Ell traded
IN On 10" curb and the books the same day
= o,Iid show that the firm had got rid az
more than JOOD shares - It's rust omer
A. the prices marked up On the curl.
To get ont the iOOOoD letteTs a. a time
Rice has had l0o typew riters working ~
'ouC"rn's adverfis,n expenses have been
IS .uJo "o. according 70 W Bishop.
= hO works foe the Stock Exchange
According o one Of theinVesti CATO for
ur Depart ment Of Justice. the individual
mounts sent IA 20 the company from
ll over the cotmir ~ have ranged from
No. 90 S2UUsl These have come from
Ike lO.0Si individuals. The
a,Ity-st va made yesterday that any
,udy Who has sent ~ money 20 the COM
ANY Cpmmtuirat" NIth I nusd states
Instruct Attorney W."
In" company was organized al,out Two
'.arr ago with . capital took Of Sij0.OD.
dUs met Scheft"tS IA the West and
,rouRht him here. II - alleged, to lHe the
gurrh.ad H.. also got Nat &. GOODWIN.
he aCor in. but GOOsiwin recently
Tted that he got ont some time after
IA. Rawhid" Coalition bubble burst on
h" curb To the great sorrow Of the
heat rical fraternity. II ~ SAID that ~ Z
,.ntly thsr. has h.-.-n another rich man
'ackmg the concern, whcss name -
EoWn 10 the D~part ment 81 Justice
In August last. when there was that
gdden furry m SChcttsls's checks. which
'ere h..Ing freely offered ia ~" market Z
,lacs and around the doorway 81 - ~
lgures below par. George Graham Rice
.ot a lot 81 money over night and the
ext morning no, only stuffed the firms =
'ank with IL hIh displayed piles Of gold
n his own offiC-- All the checks were
nad.. good and the firm seemed to take
new lease ~ life In fact Rice beCame {
o told that he insert d lag display adver- i
Tssmentz "a some newspapers over has 4
wn name urging folks TO htIy Ely Central
or a new ris" Rio" has served a term IA .
ing Sing and has also hs'.'n ~ Ellnira Z
e. came faSt after the COLLAPSE ~ the {
ullivan lris, Company, which ne organ
yed va Goldheld. New. Before drifting .
ne there he had -cOoped IA a lot Of money
inning the Maxim Gay race tipping J
lureau herr.
That the recent raids haven't wound q
~ the Government activities in this \
"ld u evidenced 10y a statement given ,
A., 10y the Department 81 Justice ye~ter- ,
ay which said
@RsCen'ly a number Of alleged schemes
- defrnud Rave been brought 20 the
~ entIon ~ the Depart msnt whose pro- :
noters are SAID 10 b" using IN" United ,
iates mails extensively IN fun herance .
{ their operations. Directions have ,
therefore, bss'n given for the speedy in :
'e-t Igafion and prosecution Of all such ,
a-ss ia which II appears that The mails
fe i-Ing made an inst r'Iment ia the
efrauding 81 the public
Everybody who reads THE Sr-S acIe-~rs ,
that the other concerns are, and the ,
oncerns may suspect IL themselves
ESTHER GHNN WITNESS. !