Rice was born in Wachenheim, Bavaria in 1850, the son of Mayer Rice and Fanny Sohn Rice. He emigrated to the United States with his mother in 1856. He was educated at the Central High School in Philadelphia and at nineteen he was sent to Paris, where he studied music for three years. While there he sent stories to the Philadelphia newspapers for printing. In 1868 he moved to England, where he became a teacher of music and languages. On his return to America a year later he moved to New York City and practiced music before going back to school to become a lawyer. After graduating from Columbia College Law School in 1880 he practiced law for the rest of the decade.