The New York herald., 1922-05-01
Charge Is Old One of Mis-
using S720 Given to Him
to Buy Oil Stocks.
RECALLS SILVER COIN TIP
Racing Tout and Financial
Broker Has Made and Lost
Fortunes.

George Graham Rice the blue sky
stock manipulation. first known in this
city as racetrack tipster and later
the promoter of most any kind of
mining or oil stock, for which he has
served two terms in prisons in this
State, spent most of last night in the
Tombs again.
Rice. wl.o was born in this city un-
Ger the name of Jacob Simon Herzig
in 1870, was surrendered to the police
yesterday by Edward J. Mclaughlin
of SO East Eighty-third street. who
with his wife, Annie, had acted as
surety or a bail bond of $4,000 under
which the prisoner was released more
t.an two years ago
In January. 1920, Rice was convicted
of appropriating $3.50 from r. w. Hart
man OF Mansfield. OHIO, who charged
that Rice did not purchase ten shares OF
the common stock of the American Car
and Foundry Company but took the
money for his own use. He was sem
fenced to Sing Sing for three years. His
lawyer secured a writ OF reasonable
doubt and he was re>eased from tine
Tombs. Since then he has been at lib
erty pending appeal
Rice was released again at ! O'Clock
this morning on a S25.000 bond furnished
by the National surety Company. The
order for his release was signed by
Judge Koenig of General Sessions at his
home. George u. Medalie. attorney, OF
190 Broadway applied for Rice's re.
lease.
Registers Again I'm Tombs.
At the Tombs Rice registered as Jacob
s. Herzog, 50 years old ard single. He
gave his address as the Savoy Hotel. and
for the first time In his career when
locked up refused TO talk for publica
ton. He sent out word through a
warden that ne could have procured new
bail If 1t had not been Sunday.
At the Mclaughlin home in East
Eighty-third street It was said by a
maid who answered the bell tha. botf
Mr.. and Mrs. Mclaughlin had gone out
of town for a week. Mclaughlin sur.
rendered Rice early yesterday morning
10 the police of the East Fifty-f1rst stree
station. No reason was given for tho
surrender but It was learned that there
Is some sort of settlement pending r
property the McLoughiins are interested
in. some of which is involved in the
surety put up for Rice.
One night in 1901 Rice received ho
tip while IN the old Metropole Hote
that Silver Coin would win at New or.
leans the next day. He had Just 81.
in his pocket at the time and hurried
over 70 the editor OF New York paper
which produced the following advertise
ment the next morning:
''t'ret--Free--Play Silver Coin at New
Orleans to-day"
The advertisement was signed Maxim
& Gay, which was the newly acquired
firm name OF George Graham Rice. Sill
yer Coin was 10 to l and won in a
walk. The firm was the most energetic
OF tipsters until 1907, when former Gov
Charles Z. Hughes put race track bet
ting out of New York.
$4,000 q Day for Advertfsing.
Rice Is alleged to have made 100000
in three months as tout, and was
known to have spent $4,000 a day for
advertising.
In 1908 he induced the late Nat Good.
win to become third vice-president OF
the Rawhide Coalition Mines Company,
York Curb and the stock received wide
attention and publicity through using
the name of Nat 6. Goodwin G. Co. ss
brokerage firm. Thousands and thous
ands of dollars were invested i'm the
stock before the crash. Goodwin spent
the unhappiest days OF his life after tho
blow up. when he found he had been ex.
plotted by a man who had adopted the
profession OF getting the coin by easy
methods. Rice gloried in the publicity
he got out OF this venture.
Rice then formed the firm OF b. Fl
Sheftel & Co., with offices in New York
Philadelphia. Chicago and other large
cities. An immense volume of business
was done in mining stocks and then the
Government took a hand. Raids were
made on all OF the offices simultaneous
ly and in October. 1910. Rice pleaded
guilty 10 using the mails to defraud and
served q sentence OF ono year on Black
wells Island. Back in 1885 Rice wac
arrested for forgery and was not re.
leased from Sing Sing until 1900