New-York tribune., 1912-03-08
RICE PLEADS GUILTY
Longest Trial Ever Held in This
District Ends Abruptly.
SENTENCE is ONE YEAR
Suspended Sentence for Schef-
tells and Case Against the
Others Is Dropped.

George Ora ham Rice, known in his earlier
days as Jacob Simon Herzig, who founded
the firm Of B. r. Scheftels & Co, and Ber-
nard II. Scheftels, his principal partner in
the stock selling enterprise, pleaded guilty
yesterday to the indictment charging them
with using the mails to defraud, thus end
ing rather suddenly trial that had lasted
since October.
The change of plea came after an under
standing had been reached between Rice
and Henry A. Wise, United States Attor-
ney, that Rice should receive prison SEN
tence of less than a year and that the
other men involved in the trial should go
free.
Judge Ray, before whom the trial had
dragged along for practically five months
approved Of the arrangement and sentenced
Rice to one years Imprisonment on Black
wells Island, with the ruling that every day
spent by him in the Tombs since his re-
arrest on December 81 should be deducted
from his sentence. In the case of Bernard
II. Scheftels sentence was suspended by
Judge Ray, and he ordered, upon motion by
the prosecutor, that the indictments against
Ralph f. Waterman, Charles +. Belzer
Charles B. Stone and John p. Delaney be
quashed.
The testimony taken. including the many
arguments, quarrels and wrangles of op-
posing counsel which occasionally stopped
the taking of testimony for several hours,
filled 5.543 pages of about go words each'
or approximately 10000 words. There were
over fifteen hundred exhibits on the gov
I.tsN 1V01 fnr
defence The prosecution had called sew
enty-six witnesses and the defence mad
succeeded In putting eleven on the stand
before the trial was cut off and prevented
the calling OF the promised one hundred or
more The trial cost the government over
1000 and the defendants were said TO nave
expended over 10000.
The Jury, which during the long term OF
the trial had displayed an extraordinary
degree OF patience, was not present TO near
what might have been to those twelve men
cause for real rejoicing. Judge Ray ex-
cused them until Monday morning, when
they will be discharged from further duty.
An hour after the jury had left Judge
Ray and the attorneys entered the court
room which was packed by large crowd
Of Rice's financial followers. Ernest L.
Baldwin entered the plea of guilty on be-
half OF Scheftels, whom he represented ana
on behalf of Rice. who had been acting as
his own counsel.
Judge Ray, before imposing sentence
said, in part:
This prosecution was instituted under a
statute recently amended. and this case
10 the first of the kind as TO the nature
and character OF the scheme 10 deiraud
ever instituted or prosecuted under II. III
has been an important case 10 the govern
mont and 10 the people OF the country as
a whole and 10 the Postoffce Department,
which undertakes also to prevent the pros
,itution OF the great institutions OF our
government The punishment OF oHenders
AGAINST the law is not the prime OF th'
Grst consideration Of courts IN the az
,ninistrati0n OF the criminal law
Long terms OF Imprisonment are essen
,tai when the offender Is confirmed Grim
tnaI aud dangerous 10 society, dangerous
Ian 10 be at large. In your case 90
80, regard long term or Imprisonment
nssaptIaI 10 either the vindication or the
~ or 10 the protection OF society. Inc
,aT Co vIndicated and the prosecution Dy
he government fully justified
The trial of Rice and his associates In the
firm OF y. r. scheftels & Co. broke all rec
o,ds as 10 trial duration in this federal dis
,rirt. II was drawn out over at least ninety