The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-09-30
Seven Members of Firm of B. H.
Scheftels & Go. of New
York Arrested.
HELD UNDER HEAVY BAIL
BY FEDERAL AUTHORITIES
Charge Of Using United States
Mails WithNIntent to DeN
fraud Is Made.

NEW YORK, Sept. 29-Following one
of the most sensational raids ever epsi-
neered by federal authorities in this city.
directed today against the firm OF B. H.
Schcftcls & Co. curb brokers in Broad
street seven members OF the company.
including B IL Scheltcis. its president
were held in heavy bail this evening by
United States Commissioner Shields for
hearing on October on a charge OF
using the mails TO defraud.
Tonight search is being made by the
police and by government inspectors for
George Graham Rice, whose real name
is said 10 be simon Herzis' tne origl-
nator of the race track bet tipping sys-
tenn, who Is declared TO be the real head
OF the concern
AZ the time Of the raid here. an
nOnnc9mcnt was made from Washington
that warrants had been issued Tor the
managers OF the company's branch Of
fees in Boston, Providence Philadelphia.
Detroit. Chicago and Milwaukee.
Fake Promoting Charged.
According TO agents of the department
Of Justice the Scheftels 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 arc placed as high as
The seven men farraigned are b, H..
Schsftels. Charles +. BelZer. secretary OF
the company; George 7. Sullivan. Car
euce Mccormack. John Delaney, William
+. ScagraYc and Charles B. Stone War
rants for sixteen men had been Issued
but the others, including Rice and
his brother, cluded the raiders. Rice had
been in his offices earlier In the day but
had left before the officers swooped down
on the place
A surety company gave bail in SIS. 900
for Scheficls $4,000 for Seagrave $4,000
for Stone and $1,000 for Delaney. Belzer
Mccormack and Sullivan were committed
to the tombs. as bondsmen were not
forthcoming. While the hearing was set
for October 10 It Is expected the federal
grand jury VIII have taken action before
that time
History Of the Firm.
The firm OF b II. Schcttels & Co. was
organized about Two years ago. and had
conducted large business, mainly
through an extensive advertising pro-
paganda Mining speclalties we're Its
newspaper was published to reach clients
and u corps OF thlrty-fiVc stenograpbers
is said TO have been required to attend
To It's correspondence.
After the arrests today two patrol wa
gonloads OF papers books and memoran-
da were seized by the inspectors
Another charge against the company
b5 George Scarborough. the government
inspector who made the complaint. is
that IL had rcsorted TO what he called
crooked bucket shop scheme"
He said the 1r'n nad charSed custom
ers per cent on margins and had coll
iccted commissions without giving any
service In return. The difference be-
tween the actual prices of stocks on the
curb market and fictitious quotations
given customers, Scarborough alleges.
was converted 10 the companys use.
IN his complaint the defendants are
accused of attempting 10 defraud VIII
liam A. Childs, Charles 5, Clark and DIR,
y. j. Symauski
The raid today waa made while the
curb market was in full swing and at
tracted much attention. Thousand6
rushed TO the scene and tho police had
10 he callcd TO clear path for the patrol