New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-06
George Graham Rice Re-
Teals Alleged Swindles
TO Swami.
oIIBIIC WINNINGS
LONG GO UNPAID
ocerators Bucket Orders,
Then Fail to Buy Back
Securities.
n, vho sells what isn't his'n,
=, b,v hack or 20 20 prison.
Nus f-~ D.. rf.F. - NkFgN Cf~A

at H.fE hack or 20 70 HflNhn
Ballads Of Wan Street)
r.;,r a complaint made by George
-, Rice as lever. District At
- Swami yesterday lifted the lid
-. New York curb market high
oh 10 uncover evidence tending to
' ,.r that not only have curb brokers
-. violating this ancient maxim. but
= ting TO bucketing orders and other
- devices TO escape paying their
Ia .'se through selling stocks not their
,roperty. ,.eu;.o ,o,o made bv
Instruct Attorneys Office TO bring
Us bssd the charges that since the
in war stocks the curb market
o 2'S' bssn made the operating place OF
~. ~ swindles than at any time IN the
..-orv Of the present generation OF
80: Attracted by the immense
s s.vo,, made in Bethlehem. Steel and
lo ~ srar babies" the outside public
y, ~ ,,usbed in to speculate, and for its
800 - company after company with no
I..I yslrs behind their stocks has been
s,s,sd on the curb.
Defendant Asks Swann's Aid.
hi. condition has not only been COM
...;rsd OF BY the victims, but by men
la,nsnt in the affairs OF the New
w stock Exchange. Actual evidence
- swjndling practices sufficient on
..;,b 70 base prosecutions was not
..,Ssred until Rice, who has figured
:. no defendant in criminal prosecu-
-. besought the aid Of the District
i..oynsv's Office % punish those who,
:. IA had conspired 10 ruin him and
.,-,nanies he had become interested IN.
nee undoubtedly knows much OF
,sst mas been going on said the Dis
80, Attorney. II am reliably in
i,rmed that he is a mine of Wall Street
,.;ormation. We viii therefore make
,r.b use of his information as may be
,,,sssary 10 clean things up
mis- clean up. Rice told the District
Attorney and after hlm the reporters
Tll show that S2,5OO,O0O paid to
brokers' TO buy stocks has been pock-
,'sd that money received from new
customers is used 10 settle with the
-ore insistent ones who had preceded
them, and that curb houses, which have
been prominent in these practices, have
less than $4,000 with which to meet
claims.
-They have been robbing Peter to
,,y Paul" he said, land are stopping
/. nothing short Of physical force to
e, the money
Score of Brokers Named.
In the evidence presented to Assist
trt District Attorneys Aaron J. Colnon
and Moses r. Ryttenberg, the names OF
nearly a score of curb brokers figure
as having failed 20 buy stocks for
which Customers gave them money, Of
circulating rumors calculated TO de-
press the value Of securities and OF
conspiracy. Part Of the conspiracy con-
s.s.sd. according TO the statements OF
;,s witnesses, OF letters sent the hold
~ Of stocks in the Emma Copper Com
Isry and the Old Emma Leasing Com
pa? reciting that Rice, prominent in
re Affairs Of the corporation, had been
Z prison; warning that the companies
Esle about 10 collapse and the value
q their securities disappear, and urg-
NJ all 70 sell willie there was yet time.
The names Of the firms involved and
Ene Of the developments tending to
l!oye the charges made are withheld
b. the District Attorneys Office. Rice,
Z statement issud with the approval
q w. Swami. said that the accused
boxers had sold 100000 shares Of
LIMA Copper stock, or 100000 shares
roIe than the company has. Two men
". B. Ridgeley and Calvin Fox, of
at Lake City-helG. he said. more
rsr igo-thirds Of the stock actually
issued in their physical possession.
Rice Tells of Promotion.
As told 70 the District Attorney by
zee and the other witnesses, the Emma
NPpsr mine had produced since 1874,
ttording 70 reports OF the United
yates Geological Survey, s12,000,000 in
VIPER lead and silver before the vein
las lost. The boom in the price Of
s'ier led 70 the old shafts being
ftLst in hunt for the lost vein. For
s1 purpose. Rice as a broker. placed
~ SOCK on the market at 60 cents a
vac Il was advertised extensively
.. became active on the curb.
ma. the mine had ceased 70 be prof
.4ss a. normal prices Of metals was
''i Known 20 many curb brokers'. and
sns, Rice says, took orders 10 buy
y stock from customers on margin
90 JAILED 20 execute the same, though
% "a reported having done so, expect
y; nat the promotion would collapse
- Aey could with safety pocket the
instead, Rice says, the stock sd-
H-sea. the more 50 after the lost vein,
~ ieet wide and showing $500 IN
..s'sl 70 the ton, had been found and
~ On the inside began to buy back
|, ney had sold.
i,s higher the stock went the more
-'s brokers "bucketed" orders, while