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Show V- - S THE CITIZEN . Tribune's Scurrilous Charges J - j eclares story inspired by interests who are determined to in Bingham Galena stock destroy public confidence article which jI sieging that the V! Francisco by an agent of the interests which hired a lawyer and a Salt Lake stock broker, whose principal business is gambling on margins on the New York Stock Exchange and the sale of bonds on small partial payments, to appear before the Utah State Securities Commission and attack me. The whole mess is propaganda of organized bond and stock market interests which seek to crush all opposition and do not hesitate to resort to any underhanded and foul means to accomplish their purposes. In the case of the Tribune I was informed when I arrived here in Salt Lake that certain Salt Lake interests were afraid a mining stock boom would interfere with an oil boom that had been predicted in Utah, and that' these interests expected to rake in large sums from the public by the sale of oil stocks later and did not want a mining stock boom to inter- - ap-- Q Tribune Friday morning inquired by persons desiring to jjure him personally and styling ita "A ared in the nfarroitade of falsehoods, and misrepresentations, exagger-lon- g George non-marketab- identified with 3e Bingham Galena and Silver Shield aham Rice, who is I the local fol--- j yesterday gave out the issuf s, now selling on Dck change, interview to the press: de-- f if a man has as much right to to dend his reputation as he has undoubted-f- e fend his life, then I would be justified in taking a gun and ling after the persons who are begad the viciously false attacks which Appeared in this mornings Salt Lake Tribune. But that would make matters worse. I am a stranger in this exactty, and therefore do not know Tribune is ly what the object of the ft printing such a fanfarronade of ' falsehoods, exaggerations and misrep- resentations. As a newspaper man of tliirty-twyears experience it is, how-vving o for me to determine that '. "'hole story was put together pur-- . maliciously and with premedi- ation to injure me, injure the inter- behind the Bingham Galena Min- fng Company, destroy public confidence in the stock, and harm mining ver, easy generally. !entures Tribune lead its story this morning with this dispatch, dated, Oakland, California: 1 George Graham Rice, alias Jacob Herzig, whose name has been mentioned many times in connection with stock promotions in various parts of Jhe country, was one of the group for whom warrants were sworn out here today in connection with sales of Broken Hills Mining Company stock. AThe specific charge against Rice is violation of the corporate securities . act. k v Hundreds of employees of the California cotton mills invested in the shares as a result of glowing promises, V made to them regarding the future of the enterprise, according to J. R. Harrison and F. Weisteil, who swore out the warrant. On their complaint a .warrant was also issued for Joe Doe, an unknown employee of Child, Barclay & Co., and a third warrant was ) i ' 4 issued for the company. It has headquarters in Salt Lake, according to the complainants. WARRANTS ON WAY. An investigation by E. C. Easton, .deputy commissioner of corporations, .preceded issuance of the warrants. The warrants were sent to Salt jLak j I tonight for service. allowing this dispatch the Tribune ipubh.-'im-d close to two columns about Jme Hi.it was prepared in its own of--- file. j i "l!,e Oakland dispatch is a lie in cssem.o and was cooked up in San le , , share, sent out from Salt Lake .the following circular letter to stockholders of the Broken Hills Silver Corporation, residing in several 25c a tyorge Graham Rice Answers. :ia t fere with their plans. Here are the facts upon which the Oakland dispatch is based: I was informed over the long tance telephone from San Francisco yesterday afternoon that Jos. H. Har-?st-s rison and F g welspiel, employees of a cotton mill at Oakland, California, two stockholders of the Broken Hills Silver Corporation, whom I have never met and do not know, had applied to a police magistrate in Oakland for a warrant for the arrest of Child, Barclay & Co., Salt Lake City stock brokers, and myself, on the charge that we were offering for sale stock of the Bingham Galena Mining Company in the state of California without a permit from the California State Corporation Commission. I have not been in the state of California, nor have Child, Barclay & Co., nor any of its members, for several months. Neither Child, Barclay & Co., nor myself, have offered any Bingham Galena stock for sale in the state dis-nosel- y, at any time. If we did, however, we would not be violating any law'. The Blue Sky law of California has to do only with the sale of treasury stock of companies, whereas all of the treasury stock of the Bingham Galena Mining Company has been underwritten and, therefore, sold. Again, Bingham Galena stock is listed on the Salt Lake Stock Exchange and, according to the ruling of the California Commission itself, made in writing in the matter of the Broken Hills Silver Corporation, whose stock was listed on the San Francisco Stock Exchange without having first obtained a permit from the California Commission and after its treasury stock had been underwritten, or sold, the California Commission is without authority to interfere. Child, Barclay & Co., on June 22, when Bingham Galena was quoted at states: - Dear Sir: We have been requested by Mr. George Graham Rice, who is now sojourning in Salt Lake City, to place your name on our mailing list to receive from us a copy of the forthcoming issue of our weekly Market Letter, which will contain an analysis of the merits of Bingham Galena Mining Company stock. We shall be glad to send you an early copy. Mr. Rice asks us to say that he believes an investment made, in Bingham Galena stock at this time will in all probability make up any loss which you may have incurred in Broken Hills stock. The Broken Hills situation is so discouraging that he is unable to hold out any hopes to you of an early improvement in the market price of that stock, and he feels that he owes it to you to put you in immediate touch with the situation in Bingham Galena stock. He is anxious that you make up your loss as quickly as possible. We were privileged yesterday to offer two hundred thousand shares of Bingham Galena stock at 25c a share to our local customers, most of whom are acquainted with the merits of the property, and our offering was oversubscribed in a few hours. The stock will be listed on the Salt Lake Stock Exchange within the week, and we anticipate a steady, rising market for the issue. Mr. Rice is behind the Bingham Galena Company and we need hardly acquaint you with his constructive methods. Mr. Rice asks us to say that he believes the stock will enjoy a quick rise to well above 75c a share, and will later sell at very much higher figures. We invite your business in the stock, and would be glad to hear from you without delay. 11 In connection with the foregoing, it is to be said that on June 18th, the Utah State Securities Commission granted a permit to the Bingham Galena Mining Company to sell its treasury stock. On June 24th the stock was admitted to listing on the Salt Lake Stock Exchange and was called for the first time at the morning session of the Salt Lake Stock Exchange on June 25th. Child, Barclay Company sent out the circular letter on the night of June 22nd, after the sale of 200,000 shares of treasury stock at 25 cents a share, in anticipation of the listing, which happened two days later. The Fidelity, Finance and Funding Company mailed their cards on the night of June 24th on the day the stock was listed. The stock was quoted then at 25 cents a share and since then has sold up to 38 cents a share. It will be noted that Child, Barclay & Company in their letter invited orders in the stock to be executed here in Salt Lake and not in the state of California, and that the Fidelity, Finance & Funding Company specifically stated that order's should be sent to Salt Lake City. It was not the intention of Child, Barclay & Company nor of thp Fidelity Finance & Funding Company, nor of myself, while in Utah, to transgress any California law, and we are informed by the highest legal authority that the charge is silly and that the apparently instigated police court proceeding is grotesque. As already stated, interests similar to those who sought to influence the Securities Commission against issuing a permit for the sale of Bingham Galena stock in Utah and with regard to whom the State BankUtah State ing Commissioner was a month ago quoted in the Salt Lake newspapers to the effect that they had an axe to grind, are behind this California business. The principal interests that are behind all of this fanfare are a coterie of bond brokers who are now resorting to drastic underhand measures to injure anybody who has the temerity Yours faithfully, to urge the public to purchase securities which offer inducements for the (Signed) : CO. & BARCLAY CHILD, making of big and quick profits. Bonds On June 24th, the Fidelity, Finance have been declining in price steadily & Funding Company of Reno, Nevada, for several years past and many of the addressed and sent out the following bonds that are being foisted on the card to Broken Hills stockholders: public at this time enjoy .no market at all and cannot be sold except at a big FIDELITY FINANCE & FUNDING CO. loss, years after purchase, or on maturity. The public is sick and tired Reno, Nevada, June 24, 1921. of being buncoed into the belief that To Our Friends and Customers: it is putting its money into safe bonds The stock of the Bingham which later prove unsaleable except at Galena Mining Company will be a loss, and the tendency now is to purlisted on the Salt Lake Stock Exchase any meritorious stock which enchange within a few days. We believe the stock offers an exceljoys a ready market and which may enjoy important market enhancement. lent medium for speculative inThis tendency the bond sellers wish to vestment and advise instant purcheck. chase. You have the instance here of FIDELITY FINANCE & FUNDING CO., Child, Barclay & Company less than a month ago disposing of 200,000 shares George Graham Rice, President. of Bingham Galena stock at 25 cents Please send your orders direct a share, which has since sold on the to Child, Barclay & Co., members Salt Lake Stock Exchange, Salt .Salt Lake Stock Exchange very readLake City, Utah. ily at 38 cents. It broke today to 17 |