The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1912-03-14
RICE GETS ONE YEAR IN PEN
Widespread Relief Over I Termination Of
Famous Case---One Of Most
Costly Cases in History

Costly Cases in History
Pleas of guilty entered by George Graham Rice and B.
H. Scheftels in New York recently New York dispatch
their trial before Judge Ray the federal district court for
district of New York charges of using the United States
mails to defraud Rice sentenced to term Of year in
federal penenay and the sentence of Schees was sus
pended The utmost penalty that could be imposed under the
law for the oese charged in the indictment Imprisonment
for 18 months fine $500 both This indicates that the
sentence imposed upon Rice is not light one.
This action of the defendants brings to end Of the
most renowned and sensational trials before the federal courts
in recent 1t is reported that the pleas entered as
compromise to avoid further continuance OF the trial. and
Through consideration for jurors and witnesses
In view Of the protest Of jurors that their business was be-
ruined by the prolongaon of the trial. Judge Ray had de-
Icded to give them the entire morning of each day. commend
ling next Monday after which the court agreed to sit from
Ito $50 every afternoon.
The Jurors had asked the reimburse them for
part of their losses account Of neglect business but the
district attorney decided that he had authority comply
with this request However petition be presented to
congress asking congress to give them relief
The district attorney had predicted that the trial. which
been progress for about five months would prove be
longest in the history Of the federal courts and probably
the most expensive in the history of the world.
Rice with other members Of the firm of B. H Scheftes Co.
under Indictment and trial. had conference lasting
than two hours with District Attorney WISE resulting in
rumo1s that the long trial would end abruptly District At
oney Wise refused to make any comment the conference
Those who have followed the trial looking to this con-
ference significant and expecting resulting de-
lvelomnents in court tire following day.
Under examination the government showed that Lee
had been used by the defendants capper for the
Ely Central mn The attention of Gockner called to an
item in the Scheftes books cedtng him with $500 shares of
Ely Central The witness admitted he had paid cent
for them The following telegram from Rice to Gockner dat
ed September g. 1870 read to the jury B. H. s. Co.
bought you 10000 shares at so cents Spread the good
lnews:'
Gockner spread the detailed Following the receipt
of the telegram article appeared in the Nevada Mining
News stating that Ely Central being heavily bought
Ely By the in the rest OF the country the pur
chase of Ely Central shores by persons the ground IN
erpreted indication of it's certain value This resulted in
heavy increase in sales and proved master stroke OF Rice
Gochner said his salary $4,000 year engineer OF
the nine He said he had instructions from the defendants to
advise Mr. Joseph Jorden of the Nevada Mining News of
every development in the mine in order that he might write
| up part of the boosting campaign.
The has attracted the attention Of people OF all classes
business interests throughout the country 1t the
outcome efforts of Rice and his associates sell mining
Stocks chiefly those Of wdca companies to the public
prices which he and his firm created by boosting tactics and
spectacular campaign Of publicity carried on by means OF
market letters personal correspondence and the publication
Of office organ which dgnifed by the OF news
paper but which denied mailing privileges by the post
office authorities.
Rice whose real Simon Herzg has had chequered
and variegated track pster publicity agel
and wildcat mine promoter lie served term in Sing Sing
pentenary and another term in the New oYrk house of
recon Emra and has been regarded by the government
as Of the dangerous Of confidence in his par
cula line of vctmizng large numbers Of people by quasi
Legitimate propositions which, their results criminal
but which were of character rendering it difficult to bring
charge under which conviction could be obtained
Rice Godfield about year and half ago and
cured an option the control Of Jumbo Extension Nobody
believes that he intended to exercise this option but
tile small he required to deposit the option rend
cred it highly profitable for him to manipulate the stock he
wished aided by report the Vinegerone Fraction which
then owned by that company the report being made by
Rces brother and associate Charles Herzg mining eA