Flynn’s Weekly Detective Fiction. Vol. 27, No. 2, September 24, 1927

In the course of their hunt, the Winter forces learned that one Billy Neeley, an exconvict, had opened an apartment house; an exclusive apartment, it may be said, in that only proved crooks or ex-convicts could obtain lodgings therein. The doors of the place, which was located on West Seventy-Second Street, New York, were elaborately armored and secured by heavy bolts, to provide against assault by pestiferous policemen.

A keen and continued search of speakeasies, night clubs and other known haunts of the high pressure gang having failed to produce any more of the hunted men, it was determined to raid Neely’s place.

Thus, one afternoon, State Troopers, Secret Service operatives, post office men and city detectives went to the Seventy-Second Street house in force. They quickly surrounded the building, and two stalwart State Troopers went to the door of Neeley’s apartment.

On a Technicality

They rang the bell, received no answer; then they hammered on the armored door with their automatics. Soon, with much rattling of chains and sliding of bolts, the door was cautiously opened.

A face appeared in the aperture. It was that of Rankin. Before he could close the door again the State Troopers were inside the apartment, guns in hand. Other officers followed.

A search revealed that Rankin was the only person on the premises, and he was again taken to Winter’s office, for investigation on a charge separate from the Idaho Copper transaction. Like Quinn, he is now awaiting trial on the latter charge.

While Quinn and Rankin were the only two bagged in this case, their alleged activities in Idaho Copper turned the attention of Winter to George Graham Rice and his affairs. The result was that Winter began two prosecutions against him, charging him with defrauding the public through “wash sales” of Idaho Copper and Colombia Emerald Development Corporation stocks.

In the former case, which has been treated in another article, Rice beat the case on a technicality and the State appealed from the decision of the lower court. In the Colombia Emerald case the State was victorious and Rice took an appeal. Neither has been finally decided as this is written.

The Wall Street Iconoclast

In the Colombia Emerald affair, which had to do with an emerald mine in the South American country of that name, Rice was accused of taking an old and abandoned property and, by means of false engineering reports and boosting the stock in his newspaper, the Wall Street Iconoclast, of placing a two million dollar value on a property worth, at most, only a few thousand dollars.

With him as defendants in this action were the Wall Street Iconoclast, Frank J. Silva, Colombia Emerald Development Corporation, Nash Rockwood, Edmund J. McNamara and Frederick H. Lewisohn. The State obtained a preliminary injunction under which Rice and all others concerned were prevented from promoting or selling the stock, except under certain restrictions.

Part of the court record in this case is illuminating as showing the alleged methods employed by Rice in his dealings with the public. A memorandum to the Supreme Court, prepared by Deputy Attorney General Winter, first tells of the Wall Street Iconoclast, thus:

“The fraud in this case may be summarized briefly as follows: The periodical, the Wall Street Iconoclast, is published by defendant, Wall Street Iconoclast, Inc., and is edited by defendant George Graham Rice in the City of New York, with a large circulation throughout the United States.” (It is said Rice sends out about six hundred thousand of each issue, paying first-class mailing charges.)

“This periodical is a ‘tipster’ sheet, dressed up to appear as giving its readers, who pay six dollars for the information, impartial and disinterested news and advice about securities. It is designed to establish a relation of confidence and trust between its editor — and its readers.

“It consistently and continuously, in its weekly editions, comments on the stocks of four corporations — Idaho Copper, General Mines, Belcher Extension and the defendant Colombia Emerald Development Corporation.

“To further inspire confidence and trust in its news and advice about these securities it publishes a large number of letters from correspondents appealing for information and advice, together with the editor Rice’s answers to the same, in certain instances misrepresenting the value and condition of the securities held by the inquirer, and advising the sale of such inquirer’s securities and the purchase with the proceeds of the four securities ‘sponsored’ by this periodical.