The sun., 1899-02-10
SWINDLED ON A BIG SCALE.
S0O.0O0 Nv WORTHLESS NOTES A.
READY TRACED To THREE MEN.

Posed NJ the Royal Chemical Company and
Traded on the Credit Of n Genuine Jer-
sey City Concern of That Name-Au
Arrest After Months of InvestiEa alton.
William II. Ruffhead OF 241 West Twenty
third street was arrested by Detective Ser
geant GarGan of the Central Ofnce on Wednes-
day afternoon at $50 Nassau street and ar
raigncd before Magistrate Meade In the Centre
Street Police Court yesterday charged with
grand larceny. Ruffheads arrest Is the result
OF an investigation which Detective Gargap
has been carrying on for several months into
the standing and methods of the Royal Chem
ical Company. which was incorporated under
the laws OF New Jersey in 1895.
The specific charge against Ruffhead 10
brought by John A. Hall. the President OF the
Universal Paper Bag Company OF Trenton.
j.. who accuses him OF obtaining $232.75
worth OF paper bags on u worthless promissory
note signed James L. O'Brien. Secretary
and Treasurer Royal Chemical Company"
This note, the detective says. is only one Of p
large number which Ruffhead and his col
leagues have put in circulation through pro-
fessional note brokers. "kitng" them on the
credit OF the Royal Chemical Company OF Jer-
sey City, a reputable concern. the principal
owner of which is DIR. s. i. Ullman OF 90 Broad
way. in that city. Notes to the value Of $50. 900
havc already come back to DIR. Ullman for pay
ment. and It is estimated that this amount is
only a fraction of the sum represented by notes
in circulation.
The first complaint against the bogus Royal
Chemical Company was received from DIR. I'LL
man in July last Detectives were imme-
diately put or the case. They found that the
original incorporators of the company now
represented by Ruffhead were Horace q.
Stripe OF 100 William street DR.. Leonard +.
in NJ saI-
Parker OF 236 Broadway. G. n. King of Jersey
City and George W. Warder. n well-known law
yer OF Kansas City. The company was organ
ized to, sell patent for the removal of super
nuous hair and facial blemishes. but the orig
inal incoTporators soon became convinced that
the article was failure and withdrew without
the stock. He says that " at Rs'fiH this time hS ,
first learned Of the eXisteneo Of Dr. rmans
the mail He offered TO sell out to Dr. Gilman.
but the oIer was refused. and he subsequently
sale OF the goods he had in stock. left this city,
and went to the Pacific coast coast where he re-
turned he found Gadinan in "eu an Il" of,ico nice
at lOS Fulton street. doing business under
the I, EN- name Of the Royal ChSmica COMPANY
close UP the business. as he had been informed
that its existence was harmful to the credit OF
the entire stock and all rights OF the COM
pnny to Rutfhead for $3.50 on condition that he
should exclude Cadman from any part in the
business.
The detectives who have investigated tho
case say that Rutfhead and Cadman. in
culluslOn with an eX convict named James 4.
OBnen, who was sentenced in 1893 to two
years In the Elmira Reformatory for secrcting
and embezzling letters from the mails. have
been constantly issuing notes and selling them
on the credit of DR.. Cllman's company. Cnd-
man. they say. is Il nephew Of Louis +. Payu.
State Suporintendent 0f Insurance Detective
Gargan has learned that Cadman was SEN
fenced to three years in the Elmira Reforu-
atory on Jan. n. 1855 for fraud while he was
in the General Post Office.
RIfhead was held in 81 900 bail for trial yes
an application to the District Attorneys office
TO have the bail increased