New-York tribune., 1911-12-25

SCHEFTELS CASE DRAGS ON
Government Introduces l,2OO
Exhibits, Including "Squawks."
MAY LAST UNTIL MARCH
Defence Contests Every Step the
Prosecution Makes IN
Fraud Cases.

with an adjournment until January the
trial Of George Graham Rice and his assocl-
ates I'm the firm OF =. II. Scheftels * Co. WIN
were indicted for using the mails to detraud
investors in stocks promises to oreah al
records as to duration. having ALREADY
reached the high water mark in the NUMBER
of exhibits. documents and books submitted
in evidence.
The trial began on october in the
United States Circuit Court before Judge
Raw and a Jury. After three months the
government has not been able 10 close IT'S
case and counsel for the defence are pre-
pairing to call a large number Of witnesses
whose examination and cross examination
will probably consume several months
Everybody concerned in the trial has be-
gun TO show signs Of WEAKNESS An al
most deadly monotony has prevailed dur
ing the last two weeks OF the trial, wheh
the governments expert accountants were
cross-examined by counsel for the det'nce
as to the correctness of the tabulauous
made from the books Of the Scheftels hrIn
The governments position In introducing
evidence has been OF a most difficult char-
acter, is the explanation OF Henry \. Wise,
limited States Attorney To call limited
number OF witnesses who had been de-
frauded by the manipulations fthe ScheitelS
firm would not suffice, Mr.. Wise said. as the
defence. as foreshadowed by the attitude oil
the defendants at the outset Of the trial. VIII
assert that any losses sustained by the GUS
toners Of the indicted men were either the
result Of negligence on the part OF clerhS
or were due 10 the magnitude of business
transacted by 3. II. Scheftels g. Co, which
caused small orders TO be overlooked.
Besides. George Graham Rice, the ac-
knowledged master mind OF the ScheitelS
clique has gone forth into publicity with
assertions that the governments RAID on
the Offices Of B. II. Scheftels Co. IN
Broad street, and the arrest of the hrm
members on September 20, 1910, was not
due to any wrongdong, but TO Vaccinations
on the part of Wall Street enemies Of the
firm. who were dsplessed with Rice
"philanthropic" endeavors to enlighten the
investing public that only the stocks handled
by his firm could lead TO quick wealth.
To meet every possible turn that the de-
fence might give TO the testimony developed
by the government ii became necessary TO
disclose TO the jury the complete workings
Of the Scheftes business scheme. Several
hundred books stock ledgers, day books
ETC. showing the records Of the main office
of p. ". Scheftels & Co. and their branches
at Boston Philadelphia, Chicago and many
other cities. had to be introduced in eVi-
dence and TO aid the jury volumes or tabu-
lations had to be prepared and printed.
Aside from these books more than LOO
exhibits were submitted and read to the
Jury. Letters from customers and tele-
grams showing their impatience at non
delivery of stocks after a wait Of months
constituted the bulk of these. The introduc-
ton of these communications was the only
bright spot I'm the three months Of tho trial.
They brought out the fact that the ScheftelS
firm kept a "squawk list" on which they
promptly entered all customers who insisted
on delivery Of stock bought for cash and
threatened to cause trouble.
The government has under subpoena about
seventy witnesses. Of whom only score
have been examined thus far. Although II
appears not likely that all Of the remaining
witnesses will be called, it is possible that
a considerable number Of them will have TO
be examined.
The defence has fought every step OF the
government in the introduction Of evidence,
and the arguments on the admissibility OF
testimony or documents have consumed
many hours. 1t is expected that the gov
ernment will be able TO close its case about
the middle OF January. and the defence es-
Inmates the time II will require at four or
five weeks. At this rate the trlai OF th1
Scheftels case may not be concluded until
the end of February, having had "A run OI
at least five months