Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-09-29
RAID CURB BROKERS
Descents Made on Offices OF
Firm in Seven Cities.
SEVERAL ARRESTS MADE
Fraudulent Use of the Mails Charged
by Government.
MINING STOCKS WERE SOLD
0mcia1s- Here Say Man Principally
Interested in Scheftels & Co.
Is Ex-Convict.
SEVERAL ARRESTS MADE
MINING STOCKS WERE SOLD

NEW YORK. September 29.-Federal
061cers this afternoon descended on the
oG3ce Of b. III. Scheftels & Co.. curb
brokers, and placed seven persons under
arrest. Among them was B. H. Scheftels,
head Of the firm. Fraudulent use of the
mails was charged. Branches of the firm
In Boston. Providence. Philadelphia, Chi
cago, Milwaukee and Detroit also were
raided.
The firm deals chiefly in mining stocks.
Among the prisoners taken in the raid
were said to be telegraphers operating
wires out Of the local offices.
The house dealt largely in the shares of
the Rawhide, Coalition and Ely Central
mining stocks. Rawhide closed last night
at II cents and shortly after the raid to-
day was selling at cents, while Ely Gen.
close. sold at 20 cents during the noon
hour today.
Members Of the Firm.
The firm is composed of B. H. Scheft-
els, president: Charles F. Belser, secre-
tary, and George Bowles, treasurer, the
directors being the same three men.
The capital stock OF the company is
given as $150,000.
The prisoners taken in the raid were
taken to police headquarters and held
later nsae befor e0 United States e commissions
or Shields. Each of the prisoners re-
fused to give his name to the police
authorities, maintaining absolute 81.
were being held at headquarters the
patrol wagon returned to the Scheft-
els onices and removed a quantity Of
books and documents Of various sorts
to the federal courts building.
It Ia said at the Department Of JUS
tice that the evidence in possession OF
the bureau Of investigation tends to
been engaged in promoting the sale of
mining stocks Of questionable value, the
price Of which is alleged to have been
increased as q result OF exaggerated
and fictitious statements made by per-
sons interested in the company. 1t is
also charged that the firm has been
operating bucket shops and reporting to
customers alleged purchases and sales
1T other than the correct market prices.
Fraud Is Charged.
In a number Of instances it is charged
that money and stock belonging to GUS
temers have been converted. The evidence
In the possession OF the department. is
said to show that George Graham Rice.
whose proper name is alleged to be Simon
Jacob Herzig, whom agents of the depart
m60I assert 10 De an eX-COuV1CC ana 10
have been previously connected with a
scheme the promoters of which were
barred from the mails, Is the man prin-
cipal1y interested in the concern known
a. Echeftels & Company.
The raid was planned from Washing
ton to take place simultaneously at all
Offices Of the company at noon. The
agents Of the department were expected
to swoop down on the main offices in
New York and the branch offices in the
six cities at the same time
When notice Of the carrying out OF
tho plan was received at the Department
Of Justice this statement was made:
IT may be stated that recently num-
ber Of alleged schemes to defraud have
bean brought to the attention of the
department. The promoters are said to
be using the United States mails extern
sively In furtherance Of their opera
lions. Directions have. therefore. been
given for the speedy investigation and
prosecution Of all such cases in which 1t
appears that the mails are being made
an instrument in the defrauding of the
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