New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-30
OUALEY GETS FIVE
YEARS FOR SW|NOLE
Promoter Whose Promises Cost
Mrs. Bull $4,000
Sentenced.
QUICK PROFITS NEMESIS
Investigation Shows Magnesla
Asbestos Man Often Han
died Legitimate Money
Makers.

john \. Qualey. the promoter VIII" got
S@5.ooO from the late Mrs. Mary Ne\hN
Bull and was convicted Of gran" larceny
oil testimony which she gave IN the ponce
court months before her death. was sen
fenced by Justice Gof1 Yesterday. IN the
Criminal Branch of the supreme court u
not less than five wears ana not more
than eight years and SiN months QGaicN
Will not Ice tried on the other indictment
against him. which charges him with steal
ing $1,000 from Leo <rcsscr. Harvey w
Corb,tt who was indicted with Quale\
| for swindlius Alls Eull. has made no at
| tempt to change the plea OF not GulI'\
entered hy him He testified against
Qualcy
J ,cstieations conducted lN Frank Moss
who prosecuted pUalcl and mis- assistant
oscar Xiuu. show that. while the man had
genius for promoting and frequently
handled propositions which i'm careful
hands would be money makers. his mania
, for quick profits always got the best of
him lie dealt iu stocks rather than IN
commodities lie would rather make ha|-
ardous promises iu order Ia sell bis blocks
Of stock than attempt to pat plant on a
paying basis
Complaints reached the District Attor-
ney showing that even while he was under
bail on the charges brought 10y Mrs Bull
Qualey could not rcpress his eNuherant
imagination MIR Moss found that tn
Magnesia-A SbeStos Company. IN which
Mrs Bull was induced TO invest her money
was not the FIRST use Qualey had made OF
the factories in Newark.
Several years ago Qualcy was booming
the United states Carbonate Company
which was To manufacture carbonic acid
gas in the same buildings where he later
induced occasional spurts of activity 10
stimulate prospective investors in Mag
neSia- Asbestos. Even AZ that time QUal"N
was not satisfied 10 travel AT cautious
gait. and owing to the sums pat into ad-
veItising and promotion the carbonic acid
gas was losing investment Finally the
buildings were knocked down AT forced
sale and bought i'm by QUalcy.
Qualey established a New England
branch OF the Magnesia Asbestos Com
pany near Boston This plant was listed
< substantial part 'l tIl' bdNlS VI '"'
$4,000 400 capitalization Of the Newark
COMPANY In reality il was the abandoned
plant of the Putnam Nail Company. which
Qualey had bought for $1,000. Qualey's
brother. Ignatius. was put in charge.
on the strength OF the home plant
many rich Boston men invested in the
Magne sbestos stock. Somehow "r
other a rumor Of previous investment
Boston people had made in 'slatne bath
tubs" went the rounds Of financial circles
and the stockholders demanded their
money back. Qualey succeeded in get
ting $50 600 together and paid the stock
holders so cents on the dollar
Justice Hend!ick denied the application
for certificate of reasonable doubt made
BY Qualey Tive principal points raised
by Qualey in MS Application for the GER
tifcste were that the testimony Of Mrs
Mary Nevins Bull gwen in a magistrate (
court. should not have been admitted AZ
the trial because Of her death. and that
the offence for which he was convicted
the sUindiing Of Mrs. Bun out Of So. 600
vas committed in Newport. e. l.. and The
courts here had no jurisdiction.