Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-07-29
SAYS IT WAS FRAUD
Mrs. Bull Declares She Was
.Tricked Out of $4,000.
SOLD WORTHLESS STOCK
John Qualey and Harvey w. Corbett
Arrested on Charge.

AAIeSCcu Oh CHdTSc.
CASE UNDER INVESTIGATION
NEW YORK, July H9.-John Qualey, who
says he is manufacturer living in New
Rochelle, and Harvey Wiley Corbett of
No. Al West Dist street were arrested
yesterday afternoon charged with having
defrauded Mrs. Mary Nevins Bull, widow
of Dr.. w. T. Bull, of $4,000 by selling
her worthless stock in the Magnesium
Asbestos Company of Delaware. They
are alleged to have had dealings with
several prominent men of Wall street
including Allan Ryan, the son of Thomas
F. Ryan, who, it was said last night,
after investigating the plants in several
cities where Qualey and Corbett said they
were manufacturing asbestos pipe cover
ing, aided the police in the arrest. Quaiey
was arrested while at telephone in the
Hotel Belmont, while Corbett, at the
request of his companion, visited police
headquarters where he was in turn ar
rested.
The men were apprehended on d war
rant ISSUED at Newport under orders of
James A. Crowley, chief of police. In
the warrant it is set forth that the men,
acting in concert, had made false state
ments of facts as to the conditions under
which they were doing business and
charges them with grand larceny in the
transaction with Mrs. Bull.
Says Arrest Is Outrage.
Qualey said that his arrest was an out
| rage, and that he would call to his as
| sistance Congressman and others. He
admitted, however, that he had sold
stock in his company to Mrs. Bull for
$50, COO, but he held that the transactions
were all consummated in this city.
Il was never in Rhode Island in my
life, he told Magistrate House, land
both the transactions were completed in
New York city I sold two parcels Of
stock to Mrs. Bull, one amounting to
$4,000 and the other to S2OUcO, and
still believe the investment to be good.
According to Lieut.. Detective Price,
who with Detective Boyle made the ar
rest, Qualey went to Newport on bust
ness trip. 1t was there, the officer says,
that he met Mrs Bull, and later began
his negotiations with her about the
stock of his company.
Mrs. Bull is said to have been inter
ested in his conversation in a jewelry
store. He is alleged to have told her at
that time that he had a yacht in the bay
and was the owner of factories In many
cities.
Mrs. Bull Becomes Interested.
When he had told Mrs Bull of his
great interests she is said to have be-
come deeply interested and offered to
buy some of the stock, which he readily
sold. getting $1,000 June p for 100
shares of preferred stock and 200 shares
of common. June %. according to
the charge, he visited her again and re-
ceived $4,000 for 200 shares of preferred
stock and 700 shares of common. On his
third visit he did not get any money, as
Mrs. Bull was out Of ready cash.
At that time James G. Blaine Sd, Mrs.
tories at Neponset. He returned, report
ing that the factory there had apparently
not been used in years
When arraigned in the Tombs court
Magistrate House refused TO near the
case. saying that it came under the juris-
diction of the second district court at JEFF
ferson Market. He listened to the story
of Qualey. who said that he had never
been in Rhode Island Qualey held that
to the best of his knowledge the invest
ment was good.
When Qualey induced Mrs. Bull TO
purchase the stock it is alleged that he
told her that it would be worth more
than 100000 in less than six months,
the company were more than $1,000.
Corbett Called, His Arrest Follows.
While Qualey was before Magistrate
House he insisted upon his right to Sc
cure counsel for himself. This was al
lowed and he went to a nearby telephone
and called a number. Detective Price
heard the call and when the name Cor
bett was mentioned a guard was set to
watch for his arrival. Corbett came into
the Tombs building shortly after and
was arrested as the second person named
in the warrant.
Charles L. Craig, who represents Mrs.
Bull, was seen at the Hotel Astor last
night. He was reticent as to the impor-
tant facts Of the case. but he said that
chemists had been interested in the
operations which Qualey is alleged to
have said he controlled. His process, he
told the chemists. made 1t possible to
produce out of twenty tons of limestone
fifteen tons Of finished asbestos per day,
thereby netting an immense profit.
Discussing the Newark plant, Mr.. Craig
said it had been built first as a place
for the refining of gold and later the an
nOuncement was made that it was to be
used for the manufacture of the magneSia
asbestos. But Mr.. Craig adds that it
was never used for that purpose.
Lawyer Makes Discovery.
After the visit Of James G. Blaine,
third, TO the factory in Neponset. Craig
was called into the matter by Mrs. Bull,
and as a result of his research it is said,
he found that government contracts had
been given to a company in which Qualey
was interested in before the present Mag
nesia Asbestos Company was organized.
This company was called the Magnesia
Company of America and was capitalized
at $2,2OO.OCO, and Qualey was president.
1t was also stated that a man whose
name the lawyer refused 70 disclose had
lost So, 800 as a result of his dealings with
that company. Later this company was