New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-01-19
RICE DEFENDS HIS FIRM
Makes a Dramatic Appeal to Jury
in j. S. District Court.
USED WALL ST. METHODS
Speaker Again Says Company Is
Being Observation-Disclosures
Shortage of Stocks.

George Graham Rice made n dramatic
speech TO the jury Yesterday i'm opening MS
defence at the trial of the members OF tue
firm Of 3 H. SCheftels & Co. in TN" 'A!t'o
States District Court. Having discharged
all OF his lawyers the day before Rlce SAT
ND in the Tombs until late preparing ms
address. and IT would have been much
longer. he said. If the lights had not been
turned out for the night.
Asserting that the principals Of the firm
Of r. n. Schcftols e. co. had been honest
70 fault" Rice declared that the business
methods Of the firm had not dlHered TO
any degree from the customary methods OF
Wall Street. He again raised the cry OF
persecution and said that if the members
Of his firm were guilty then most Of the
brokerage houses i'm Wall Street had yio-
lated the law.
g. H. Scheftcls & co. were charged with
having conducted n huCkctshOp. he SAID
but "A bucket shop won when it's clients lost
The Solicit, lis company spent from 5000
to f-Ol % q year on publicity he said, ana
IT'S literature tccmed with advice when to
buy and sell stocks. and he would show
that this advice was correct seven times
ont Of ten.
we will show that because Of the w"lch-
Ing Of customers ON their margin tranSac-
tons because Of the small commissions
and small charges we collected as against
tho larger commissions and larger carry
ING charges we paid out, we actually lost
a large sum OF money on this branch OF
business" ne told the fury In outlining
his defence.
~ gtn IN Spntp1ll-
her q. 1910. the dav Of the governments
raid on the Scheftels office, Rice said ne
would show that the governments list was
n wild guess and grave eNaggeratoh'
that thousands Of shares disappeared on
the day ~ the raid. and that no brokerage
firm I'm Wall street hcsitatcd or was pro-
hibitcd from using customers margin
stocks for deliveries against its own or IT'S
customers spcculations On tho short SIDE
OF the market
He promised the Jury to show that tn"
members " the Schcftols firm were hon
est 10 n fault" and that tn" "sGuawk list
which received go much attention during
the trial had al honest reason for It's "N-
iutcncc The name "sGuawk list was sim
PLY a iocular name given TO TN" list or com
plants by an cmployc. and he would SHOW
ne said. that - per cent Of th"s" com
plants had been adjusted to tn" complete
satisfaction Of the complainants.
with much dramatic emphasis Ric" end
Cd his address 10 the jury hy saying: We
shall TAX" YOU behind the scenes and prov"
10 Won that behind the seemingly uurutii"d
exterior Of this prosecution lie intrigue, Dc
ceit. suppression 81 truth. distortion Of
truth. politics. sordd business. sordid am
bition and worse" We shall lay bar" the
methods 81 intimidation that hav" been
used In the preparation ana presentation
81 this case that belong TO the carly DAYS
~ Spain aud tho darkest days OF Russia.
Then We shall ask from your hands IN ~"
interests 81 Iustic" and Of our free lnStl-
buttons a triumphant verdict Of aCquittal.
\ large crowd was attracted TO the
courtroom I'm expectation or an oratorical
outhurSt nv Rice The dcfeUc" called us
first witness I'm the afternoon and the trial
again settled down IN a monotonous dr"ne.