The New York herald., 1922-10-18
TELLS HOW GAGE
STOLE BIT BY BIT
Lawyer Says Curb Market
Swindle Engulfed Manager
for DanZig Go.
HE INVESTED $4,000
Counsel for EX-Newsboy Says
Latter Also Lost $4,000 in
Mining Venture.

The theft of $4,000 by Henry p
Gage from Jerome j. Danzig & Co.
members of the New York Stock EX-
change, for whom he was Office man
ager, was the rest;lt of Gage becoming
engulfed in a gigantic stock manipua-
ton scheme on the Curb market
The story of how Gage stole more and
more. trying to save himself when Curt
brokers began double crossing one an
other, was revesled yesterday after Ber-
nard Sander, lawyer, OF 261 Broadway,
representing Victor Grande, a member
OF the Curb Exchange. charged the firm
of Harris & Co of the Curb with max
ing false statements in the sale of secu
rites. The complaint was filed before
Magistrate Max Levine and is returna-
BILE tomorrow
Gage has pleaded guilty and made a
statement to the District Attorney.
The members of the defendant firm
are Sylvan WitZfelder and Charles S.
Herzig. the latter a graduate of Colum-
bia University and IA brother Of George
Graham Rice. born Jacob Simon Herzig,
who is free on bail pending an appeal.
two and a half years ago of stock
swindling conviction under which he was
sentenced to three years in prison
Basis of the Complaint.
A complaint has been filled with the
Curb market by others interested.
The allegation upon which the COM
plant is based was summarized by Mr..
Sander as follows:
Last August Harris & Co. reoptioned
to Harry Rein and Victor Grande a part
of 100000 shares of Goldfield Develop
ment stock, upon which Harris & Co.
had option from the Goldfield Develop
ment Co. The terms of the Harris OPP
ton from the Goldfield Company are
not known definitely. but are said to
have been on sliding scale from to
5 cents a snare.
The reception contract called for de-
livery of stock upon demand in blocks
of $4,000 shares on a sliding scale OF .
to IL cents, the price advancing l cent
on each $4,000. This contract was not
signed by members of Harris & Co, but
by David Mailman. curb operator with
desk space in the Harris offices. as
representative of Harris & Co, and by
Harry Rein. It is alleged there was a
separate verbal agreement that Harris
G. Co. were TO keep all other Goldfield
cepting sales for customers, during the
life of the reoption.
Mailman protests he signed the con-
tract in such good faith that he lost
money by buying the stock. and has Of
fered to give to Gage anything he may
recover.
The stock at the time of this con-
tract was selling at cents. With mat
ters in this shape, Rein and Grande be-
gan to market the stock. Under the
impetus of glowing market letters and
kilograms put out by Harris & Co.. they
allege, they found easy sailing, and the
price of the stock climbed steadily to 5S
cents The market letters set forth the
rising prices of the stock, and declared
the rise was due to a rich vein of ore
which was improving as tunneling pro-
gressed.
stock Down to Eight Cents.
Grande-who. Incidentally, is still in
his twenties and who started his stock
market career as a newsboy in Broad
street-alleges that he believed the let
ters of Harris & Co. to be true and for
that reason himself invested $4,000 OF
his own money and lost IT. The state
ments in the market letters are those
which Grande alleges In his complaint
to have been false. The stock sold at
so cents yesterday.
However, while Rein and Grande were
disposing of their optioned stock it was
easy picltings.'' Everybody seemed to
think II was a good buy"
Suddenly the market took on a strange
and disturbing aspect. Rein and Grande
say they were surprised to find much
stock and trading in Goldfeld Develop
ment on the market for which they could
not account.
They hastened TO Harris e. Co. 10 be
reassured that the undelivered remainder
of the reoptioned stock. which was held
in escrow, had not been turned loose on
the market and were promptly and pro-
fusely so reassured. the said. Where
upon. 1t appeared. the answer 10 the sit
uatiop was a tremendous short market.
which was very pleasing. since Rein and
Grande naturally figured that sooner or
later the shorts would have to come to
them for stock. All they needed to do
was 70 hold on until the demands for de-
livery began.