The sun., 1918-08-01
RICE INDICTED ON
LARCENY CHARGES
Oil Promoter Probably Will
Be Tried in State Courts
First.
HAS CRIMINAL RECORD
Swami Will Ask Early Trial
on Theft Complaints of
Customers.

As a result Of FIVE indictments found
by the July Grand Jury against George
Graham Rice just before 1t adjourned
yesterday afternoon 1t Is believed that
Federal charges against the promoter TOT
using the mails to defraud will be al
lowed to give way to permit mis- trial In
the State courts. The bulls returned
yesterday accuse Rice OF grand larceny
in the first degree and upon conviction
he would be subject to far heavier
penalty than would be possible II found
guilty CT mail Irregularities
Rice was arrested at his office at II
William street by Detective Cunin on
bench warrant He was later arraigned
before Judge Mulqueen in chambers and
held in $500 bail for pleading.
There were four complaints against
Rice, or Herzig, before the Grand Jury.
Rudolph w. Hartman of Mansfield. OHIO.
accused him o. the larceny of 800
Liberty bond and 1921, alleged to have
been sent him to purchase American Car
and Foundry stock. Fl. w. Goodwin OF
North Attleboro, Mass, charged that
Rice had stolen 1879 RENTED to buy
United States Steamship Company stock
Walter Shepherd of Mount Lebanon. ".
Y, testified he had sent 5000 to Rice
with instructions to acquire 100 shares
OF the Smith Motor Corporation stock
on his account. but that he had never
seen either the stock or the money. Dr.
Wilbur s. Benedict OF Washington. d. C,
made two charges that Rice had COM
mitted larceny OF 100 shares of the
Smith stock and twp indictments were
returned on his complaint.
Paid once stan $4,000 weekly.
The thefts are alleged to have taken
place between November, 1917, and
March, 1918. John T. Dooling. Assist
ant District Attorney in charge OF the
| case. said last night that the payroll al
| Rice's offices amounted TO over $1,000
| weekly.
From different sources we have
learned that Rice's mail was enormou:
and that his daily deposits in bank:
averaged more than $4,000 at one
| time" said Mr.. Dooling. He Is under
stood to have Melted more than half q
| million dollars as a result Of the sale OF
stock of some of the corporations spon
sored by his office.
He claims to have list of $4,000
customers scattered all over the United
| States. and publishes weekly news
paper called the George Graham Ric,
Industrial and Mining Age. This is sen
| out to more than $4,000 alleged sub
scribers. many OF whom. he claims. arr
connected with banking institutions,
| For some time he has been activel!
pushing the sale OF Rich Oil stock. Thi!
corporation has not complied with thu
provisions OF the general corporation
laws OF the state to entitle II TO do bust
ness here. The company was incor
porated under the laws Of Delaware il
| January. 1917. with an authorized cap
ital OF 100000. divided into 100000
| shares at 81 each.
"Hot AIR" in OIL Wells.
| "Our investigation discloses that thi
company has. or claims to have. lease
| on lands in the eastern part of Ken
! lucky. Rice makes great claims abou
the Rice Oil Company but when tn
! District Attorneys representatives in
| terviewed him he stated, after an eio
| ouent description OF the alleged well
| and other property OF the company
| that it had never sold any oil to any
body, and that the wells which ha
been driven are capped. From othe
sources we learned that the only thin
| that came out of the wells was no
aid"
Mr.. Dooling says Rice sponsored tn
Emma Consolidated Mining Compan!
a Delaware corporation; the Appala
chan Oil Company and the Monste
| Mining Company. He continued
Rice has a criminal record and wa
| convicted as Joseph Hart in March
1890, on charge OF grand larceny an
was sent to Elmira Reformatory. wher
he served nineteen months. On Apr