New-York tribune., 1910-07-29
ALLAN RYAN SETS TRAP
FOR ALLEGED SW|NDLER
Leads to Arrest OF Man Charged
with S35, 600 Fraud by
Mrs w. T. Bull.
CALLS STOCK WORTHLESS
Oualey Taken at Hotel. While
Alleged Accomplice Is Caught
in Court at His Ar
raignment.

] Thomas F. Ryan into the hands of the
police, John Oualey. who said he was a.
manufacturer at No. 122 East 1o5th
street. was arrested at the Hotel Bel
mont Yesterday afternoon by Detectives
Price and Boyle. taken to Police Head
quarters and later arraigned in the
Tonbs police court, the charge of
swindling Mrs. William T. Bull, widow
of the eminent surgeon, out of $4,000
With him was a woman supposed to be
his wife
The couple and the detectives had been
in the courtroom only a few minutes
when Harvey Wiley Corbett, an alleged
accomplice of Qualey's, who was seated
in the rear of the room. was arrested on
a similar charge. Corbett said he lived
at No AL West 21st street. Both he
and QuaIey were remanded to Police
Headquarters by Magistrate House, in
default of So, ZOO bail each.
QuaIey is president and Corbett secre-
tary and treasurer Of the Magnesia-
bestos Company, q Delaware corpora
tion which it is said has plants in
Newark N J.. and Nepsonet, Mass.
The warrant for the arrest of Qualey
and Corbett was obtained by Mrs Bull
in Newport. R. l.. from George H. Kelly,
clerk of the court there. James A
Crowley, chief Of police of Newport,
came to New York with it a week ago
and left 1t with Inspector Russell, in
charge of the local detective bureau.
Mrs. Bull Charges Conspiracy.
Mrs. Bull charges the two defendants
with conspirtng through false repre-
sentations to sell to her worthless stock
in the Magnesia- Asbestos Company, for
which she paid $35,000. Qualey, she
says. according to the police, told her
that Allan A. Ryan was going to invest
100000 in the company. Acting on
this information, Charles L. Craig, her
LAWYER who is associated with Edward
Lauterbach. at No. % William street,
got in touch with Mr. Ryan and learned
that Qualey was still importuning him
for investment Tt was agreed that
Mr.. Ryan should keep Qualey dangling
until a definite appointment could be
made with him. Such an appointment
was made for yesterday afternoon at
the Belmont. Quaiey was there, but Mr.
Ryan did not appear, and when Qualey
went into the booth 10 telephone TO him
he was arrested.
After Qualey and the detectives had
left Headquarters for the Tombs court
the police said the prisoner asked to be
allowed to telephone for a lawyer, and
on getting permission to do so stepped
into a barber shop and called COrbett.
The detectives overheard the CONVEX
sation, they said, in which QuaIey asked
Corbett to come to court and bail him
out So they were on the lookout for
the secretary treasurer in the courtroom
and arrested him when he was identified
by a nod from Qualey.
Qualey was taken TO the Tombs court
because Magistrate House had indorsed
the Newport warrant, but when the two
prisoners were arraigned before him the
magistrate said he lacked jurisdiction TO
hold them for extradition. since Qualey
had been arrested outside the courts
district He therefore remanded both
to Headquarters for examination this
morning in Jefferson Market court be-
| fore Magistrate Krotel
Both Mr. Craig and Mr.. Lauterbach
appeared in court to press the charge
against the prisoners for Mrs. Bull.
Oualey was highly indignant over his ar
rest. He berated the detectives, they
said, threatening to use his influence
with certain Congressman to nave them
punished. and he demanded that Magis-
trate House fix bail, saying he was an
| innocent man.
Magistrate Willing to ObIse.
The magistrate smilingly obliged him,
fixing bail for each prisoner in $4,000.
AS no bondsmen appeared, the detectives
took the two prisoners back to Head
quarters.
Oualey. the police said, visited Mrs.
Bull at Newport three times. On June
u, they said, he went to Newport
osteusibly TO see the owner of the cot
tage he occupies at New Rochelle. who
is employed in Newport, about some re-
pairs. While he was talking with his
landlord, according to the police. Mrs
Bull walked into the store and the land
lord introduced Qualey to her. There
ensued conversation between them. as
the detectives told ii. in which Qualey
nrofessed to be interested in the pur-
chase Of certain Newport real estate IN
which Mrs. Bull also had interest
Oualev. they said, then easily led up to
the subject of his manufacturing con-
cer, and its prospects. He told her. 1t is
alleged. that he had several valuable
contracts with the government, that he
had other contracts 70 furnish ffreproof
roa+eriaI for numerous loft buildings in
this city. and that If she would invest
S35 coo in the concern she would receive
IN return 5000. 600 In six months In ad-
ditiou TO Allan A Ryan. according 10
the ,olice. Qualey told Mrs. Bull that six
wall Street pillars were either actual
or ro+antial investors in the company
for large amounts
The Magne.ia- sbestos Company has
q canttsI of 81. 2Jo000, of which $3.50
Ooo is preferred stock. Mrs. Bull gave
oualev check for $1,000 on his first
visit the police said. for which she re-
ce;yed 40 shares OF preferred and 800
sbaras of common stock, all of the par
vslue of S100. Qualey called on her
again on June 80. they said, and got
from her then check for S2O.OOo. for
Which she received 20D shares Of pre-
90 T.. prt- IL