The sun., 1918-07-30
G. G. RICE HELD ON
MAIL FRAUD ORDER
Former Race Horse Tipster
and Promoter Accused of
Misapplying Funds
HAS BIG OFFICE FORCE
Said to Have Weekly Payroll
of $4,000; Real Name Is
y Jacob s. HerZig.

y Jacob s. HerZig.
George Graham Rice, a promoter. VINO
as the silent principal Of b. II. Schef-
tells & Co. gave the Government TWO
years fight. beginning in 1910, before II
forced him to plead guilty to charges OF
using the mails to defraud. was arrested
last, night. The charge again was use
Of the mails 10 defraud.
Not much has been heard OF Rice
since he came out of the Blackwells ISL
and penitentiary after serving nine
months for tho frauds Of Scheftels q
Co., but Deputy United States Marshals
who went to get him on a warrant ut
his office at 81 William street found In
dications that his newest business VEN
lures had brought him large volume
Of business Rice's offices occupied two
floors Of the building and his payroll
has been nearly $4,000 week One
of the post office inspectors whose In
vestigation led to the charges says that
Rice told him that he has a list or
SO, 900 customers
The complaint upon which the war
rant against Rice was issued by sam
uel NJ. Hitchcock, United States Com
missioner, alleges that Rice accepted
$3.50 from r. w. Hartman of Mansfield.
Ohio, for the purchase Of ten shares OF
THE common stock of the American Car
and Foundry Company and appropriated
the money to his own use.
Avoids Might In Jail.
The arrest was made after business
hours and after the Federal Building
a olp ri
have spent the night In the Greenwich
street police station. but he avoided this
/ by energetic action. He summoned
Judge Joseph Of House. Grossman &
Vorhaus to act as his attorney as soon
| as he reached the Federal Building in
the custody of deputy marshals
Commissioner Hitchcock was reached
at his home in Brooklyn and consented
to return to the Federal Building. Ben
| A. Matthews. Assistant United States
| Attorney. was at work late In the build
ing and he consented to appear for the
Government. He asked thai bail he
fixed at $4,000. This was done, bail
was forthcoming from a surety company
! and Rice was released.
The complaint named the defendant
as Jacob Simon Herzig. alias George
Graham Rice When Commissioner
Hitchcock asked the prisoner II he was
the person named in the complaint he
replied that his name was George Ora
ham Rice.
is not your right name Herzig?"
asked Mr. Matthews.
MY name has been George Graham
Rice for the last fifteen or twenty
years." said the defendant
Rice changed his name on leaving
Sing Sing prison in 1900 after serving
a term Of Ave years for forgery. He
has beer living at IA East Sixt!eth
street.
PurSuer of EASY Money"
Rice has pursued easy money all his
,'life. He has won and lost several
fortunes. was imprisoned three times,
wat a race track tout and tipster, was
married in a baggage car in manasles
while on his way to Sing Sing prison.
was a newspaper and magazine writer
and has been active in Nevada politics.
An incident typical of the mans
quckness Of perception toward money
making possibilities deals with the way
he started his first big financial under
taking. the firm of Maxim &. Gay, race
track tipsters.
. One night in 1900, at the Metropole
then the centre OF New York sporting
life. Rice received tip by wire that
Silver Coin was good thing for the
following day at New Orleans Rice
had SO or sl2 In his pocket. Any Other
man in a million would have put $40 or
/ Silver Coin and saved whatever change
he might have for lunch money. Rice
went to see the advertising manager of q
newspaper which specialized in racins
news. AS a result OF the talk, the news
paper carried an advertisement the fol
lowing morning that ran as follows
| ut N
to-day. Maxim & Gay--Free."
Money Flowed In.
Maxim & Gay Mas Rice. Silver Coli
t won at 10 to I. The firm soon wa
chief among the tipsters who adver
| tised so boldly and profted so tire
mendously before Gov. Charles
Hughes put the skds under race tract
betting for the time being in 1907. Rc
, Is said to have made 100000 In thre
months by using his keen wits to CAPT
l tallze properly a tip that ordinaril!
would have brought In 500 on so In
:. vestment. At the height of its actlvi
2 ties Maxim & Gay are said to hav
e spent $4,000 a day for publicity.
5 Rice was born Jacob s. Herzig in New
York city in 1870. His youth was
e turbuleA one. His father. a we'll TO d
business man. caused him to be com
| mitted to the Elmira Reformatory a
I incorrigible when he was 10 years old.
1 He spent two years In the reforma
tory, leaving it in 1892. He was sen
G fenced to Sing Sing prison after convc
8 ton for forgery in 1895. He was mar
ried on his way to prison to a girl name
Therameutis lvey.
Rice went into Sing Sing as Jaco
Herzig. He emerged in 1900 as Georg
! Graham Rice, the name of a man h
y had known in the Elmira reformator,
| He went South and eventually became
a reporter on Il New Orleans news1ape
:, When Galveston was destroyed by
/. tidal wave he offered his services to
a New York newspaper and. being nea
n Galveston, was given an assiRnmer
n there, His reports of the disaster we,
n so highly colored that the army author
ties ordered him to depart,
a Government Raided once.
0 He came to New York. The tin O
% Silver Coin and the success OF MAXI
@ G. Gay put him on his feet fnanciall
= Rice established branch offices in Wasi
v ington. New Orleans. st. Louis and Sa
lie Francisco. His progressiveness was h
ruin. communications between Il
Il various Offices were maintained throua
d the malls and this gave the Governmei