The sun., 1916-10-06
HAS CURB BROKERS
IN TRAP, SAYS RICE
Promoter Of Emma Copper
Makes Charges Of Con-
spiracy to Defraud.
LETTER WRITER TRACED
stock Exchange Firm Denies
Accusation IT Is Short
$4,000 Shares.

George Graham Rice had a happy and
virtuous day yesterday. While the curb
market was in session ne exulted over
the plight Of his fellows who had sold
Emma Copper short and. according to
Rice. could not deliver the stool without
coming to his office and settling. In the
afternoon. on the old theory that he who
sells what isn't his'n must buy 1t back
or 90 to prison. ne went to District At
torney SWANS ONCE and lodged COM
| plants against several curb houses.
Rice was accompanied by Moses II.
Grossman. his lawyer by Val O'Farreli,
head OF a detective agency: by Guy
| Biddinger. one of O'Farrells men. and
| ny n number Of boastful retainers. They
presented statements tending to show
| that the accused curb houses were guilty
| Of bucketing orders. of conspiracy to de-
| fraud and In some cases Of uttering the
| letter which narrated Rices criminal
record and branded Emma Copper stock
as n fake.
I Mr.. Grossman said afterward that lie
and his clients a evidence to show
| that fifteen brokerage houses doing busi-
| ness on the curb have been swindling
| their customers by bucketing orders. lie
also said that these bucket shop men were
| Rice's enemies and had been franticaIy
| trying to cover themselves by bear raids
on Emma Copper.
Author Of Letter Traced.
BY sending out the letter abusing Rice,
| he commended that the person or persons
| responsible had violated section e2s OF
| the Penal Code. which relates to the
| circulation OF false information about
! stocks. bonds and public funds. The
| crime described by this section IL a
felony punishable by the maximum pen
| atty Of three years Imprisonment and
$1,000 fine.
Assistant District Attorney A.. j. COL
non Investigated the scurri!ous letter
charge and has traced the authorship
| close Ia the source. II was reported out
| the evidence OF other crimes presented
TO both Mr.. Colnon and Assistant Dis
| trict Attorney R~yttenoerg has not
| greatly impressed them. The investiEa-
| ton has been in progress two days ana
a number OF brokers who have dealt in
| Emma Copper have been examined. In
| the office from which 1t IL thought the
circular against Rice emerged experts
| have been sent to compare the type
| writing with that OF machines there.
Rice's Emma Copper. which started on
| tho curb at forty cents. closed well above
81 a share. Rice boosted hat he and
his associates. william u. Ridgely. for
mer Comptroller Of the Currency. had
absolute control OF the market and
threatened to break the brokers who
were on the opposite side ~ the mar
ket. lie gave out numerous Interviews.
Of which the following Ia q sample
Il know as a result OF my inquiries
that these bucket shops are short l.50s
shares OF this stock. As a matter OF
fact there are only q million shares in
existence. A man named Fox OF Salt
Lake City owns $50 900 shares. My as
sociate. William Barrett kidseley. owns
100. 900 shares. ! own 5000 shares.
and | carry for customcr, I'I,"oo shares.
That makes a total OF -" " ares.
Il am ready and Will 90 pay $780,
900. and | can AFFORD IL. FOR | save $780,
600 deposited in IA New York bank. to
any one who can show me any one Of
four brokerage houses hat has 10 per
cent OF the stock il Is supposed to have
bought for customers,
"This crowd OF crooks H. working the
familiar game Of stalling their customers
of by the old story that II takes seven
days to make a transfer OF the stock.
You can take /; from me that things
are going to happen in the next week.
I am Informed that the bulk of these
orders which weren't executed cam into
these brokers when the stock was selling
at from ~ 10 80 cents "A share, II they
are To cover il at all 1t Will cost them
on an average OF 81 "a share. II l have
anything to say about II. II the gang
sets out To cover $500, 600 shares at $3.50
It will cost them $500. 900. and the
bucket shop crowd hasn't got S250.0 600
among them
Some Of the Stock Exchange houses
nave customers who have traded in
Emma. Rice said one of these houses.
which IL one Of the strongest In the
Street. was short $4,000 shares. That
statement was CURLY denied by the sc
MOI partner Of the firm,
kilograms have reached newspaper of
Aces. signed by mining inspector or
mining engineer dlsparaging to both
Rice and emma. h authorities MAY
endeavor to trace the sources Of these
messages with the idea OF finding
whether they originated from friends on
enemies Of the reformed broker.