New-York tribune., 1908-07-03
BRAIN BROKER In TOLLS
II. j. HAPGOOD ARRESTED.
Employment Agent Denies Stealing
S39, ,OOO-FiUe Com plMnants.

Herbert J. Hapgood president and director
of Hapgoods Incorporated at No. 800 Broad
way, was arrested late yesterday afternoon by
Detectives McConville and Nelson of the Cen
trail Office and booked at Police Head
quarters under charge of grand larceny in
the sum of $4,000 the complaints being made
by five different persons,
Ralph L. kilby. Mr.. Hapgoods secretary,
was also arrested under the charge by
the same complainants. it being charged that
the two prisoners acted in concert in getting
that amount by trickery and device in March.
1907
Late last night application made in the
night court for their release bail. but the
man who appeared before Magistrate Kernochan
in their behalf, though saying that he will
ing to go to the extent of 5000. beat a hasty
retreat when the magistrate fixed the amount
at $4,000 bail.
The arrest made in the office of the Hap
good concern quietly that not even the fifty
stenograpners and twenty-five bookkeepers
knew that their employers had been taken into
custody. All the books OF the Hapgoods COM
panies which includes Hapgoods Qncorporated)
and the Hapgoods Sales Company, were taken
TO Police Headquarters by the detectives,
Mr. Hapgood gave his address as No. 431
Riverside Drive, and said he was brain
broker" KiIby gave the same address his
vitte of Rosyn Long Island. said he was
tricked out of $500 which. he said. he in
vested in the Eapgood enterprises-S10NO in
the Hapgoods Sales Company and $500 in
Hapseoods Incorporated. These investments,
he said he made upon representations made to
him by Mr.. Hapgood who he said, was an old
college classmate. Charles G. Blttel. OF NO Io9
West 54th street. said he invested Sl2,00o, Slo-
600 Of which vent into the Hapgoods Sales
cor,nan1, and $1,000 into Hapgoods Incor-
norated Walter H. Page. Of No sol West
144th street invested $500 in Hapgoods In
cornorated, he said and / l. Collins and j. r
Elliott he added, invested S2ooo IN Hapgooos
Incorporated
witte said he was manufacturer OF meta meta
snecfalties at No. 81 Park Row Early IN l9o'
he said Hapgood interested him IN the manu-
factnre and sale of a new safety razor. Hap
eood told him Witte charges, that the Hapsood
Sales Company was going to handle other
sreciaIties and had patents and options on va
rions articles to the extent of 100000
Hapgood said Witte alleged that he was going
to Europe soon to prepare the way Tor a Euro
nean invasion with the new razor. and urged
him to invest quickly. AS a part of the agree
rnent Witte SAYS he had place superin-
ten..ent of the Hapgoods Sales Company. at n
weekly salary of $50 and commissions.
After working for some months under his
agreement, Witte says. he learned that the COM
pany was not manufacturing the razors. but was
simply getting as a selling agent. and thereupon
he registered a complaint with his friend, Hap
good upon the registering of which complaint,
he SANS he was discharged from his job. He
then demanded his money hack. ',u. 1t was
fused.
Bittel the second complainant. said that in
1906 he left a job in St. Louis and. attracted
h,, the advertisements of the Hapgoods, In
ted he registered, paying the 50 fee
For this he received the magazine called Hap
goods Opportunities, but not getting JOB
through that medium. he came to New YORK
,,bere he became acquainted with Hapgood-
Irnder the same representations as We're maze
70 Uitte. he says he invested $1,000 and was
,ada treasurer of Hapgoods Sales Company.
al a salary of $50 week and commission
7 atar he said he was made vice-presdent' ana
wac sent to Europe to take charge of the Euro
mean sales of the razor He heard the same
thing about the company which "ltte salo lie
,oo.od and came back to New York and de
,5 IN he bought out of the concern HIS
demand was refused. Page, Collins and 1ihott
made their smaller investments on the same
1.na.ontations. and alege practically the same
experiences ,.r
- tod no ground on which to base their
,, II. admitted that they were investors
:: hi cornanies but said they had received
o,.orr+Aing promised them. Hapgoods, Incor-
norated he said was capitalized at S3ooGo
$3.50 900 of which is common stock ana %loooco
preferred All the money received from the
comnlainants, Hapgood said. used in de-
,elonine the business During the panic. Mr..
Hapgood said he drew salary at all
rupnuyiNc CApITAI nEEEMrE