New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-11-01
JACOB c.. OTIS IN JAIL.
THE HISTORY OF A GIGANTIC sw1NDLE


The authorities at Police Headquarters were
greatly excited Yesterday afternoon by TIE arrest IN the
Frs Precinct OF Jacob c. Otis. the who In con1unc-
ton with a partner Alfred +. La.r4vo, Succeeded hYc
or six years ago. swinding ify New-Noik mercantile
firms out of nearly u 100000. At first II appeared m
credible that for whom the sharpest detectives
both In Europe and America have been long searcnng
aud whose skill in defraudng the leading firms OF thls
city has seemed 20 be equIicd only BY hs ability ~ es-
ca NJ detection ould be captured ~ broad daylight ID
Excnause-place. For five years Otis Us Oceh
fugitive from justice. and the Story nc
tells OF his escape. pursuit arrest, release, anu shse
quenr flight ana the motives which influenced him to IT.
turn o his native land. heartbr0ken, gra'hared man
Of thirty five years. falls upon tho Of the listener Ike
romance No less astonishing and interesting II me
account ~ the crimes perpetra;ed by OTIS aud Ms c"
paniou Lagrave, this city. IN account OF when I'ey
were both PEELED to fly The business community
aud the entire city, Of the swnalns, were as
founded tine magnitude OF their operations ana TIC
boIdntss Of the principals.
TIE linn OF Laave Co. stood high IN business CIR
clos. it, credit being unimpalred, ana he meheF' Deh-
personally acquainted with and respected By the great
goods and other merchants OF the city IL was III
1870 That che wholesale dry goods - IAgraye a
co. was established IN Broadway near Broomr-sG Inc
reputation OF .miiy and the success OF relatives
III similar breaches trade together h the industry
and suayity OF the members OF the young nrhi'
gave extensive business. ana WITHIN Two
years. thoy found themselves dealing extensively WIN
over ATTY Of the largest houses Of this city among which
may be mentioned A. z. stewart & CO.. H. b. C.ahin *
Co.. Ddden, Trercs Co. Lhneman * Coz and others.
The member. IF the tim, recognized busl ess cir
cles Alfred r. LaSrage AMI Jacob g. Otis. WIN
these directly the merchandise " NeS-lOik had Their
dealings, aud 70 such an extent was their integrity
trusted thar little care vas exercised investigating the
real financial condition OF the nrm. Idking adNsh-
tsrc Of this fact, LlgTtve Co. represented
themselves as the possessors Of almost m
limited capital. and IN tie course o. Few
hs they made display in purchases ana lretendeu
sales. which seemed % cOuhrn tier Story. la realy
tie hrm Almost IN bankruptcy Gt its beginning l"e
Oldest ana shrewdost IN Ne~-HOrk, however,
deceived.
TIE houses with which Lagrave OTIS dealt
were aauced by heir approximations 10 sell them
goods on credit 10 any amour; they desired
Orders for great quantities OF goods were nom
orcd and for two years tho principal Wholesale
dealers permitted the firm Of Lagrave & Co, 10 get
dee er and deeper debt them Finally pnymeni Of
some Oi ,he heavier claims was demand d. Time was
asked by the arD and suspicion aroused steps
were taken ssae me real ttandiag % the yon-
merchants, to whom almost unlimited credit bad berh
gwen A T. stewart x CO., The first 10 take a.
ton, aaG word sent To Lagraye d Coz that settle
uicnt mast be- made speedily or su5 woul De- begun
Tho inessen g-g from stewart Ga. found one morning
in the spring 1872. mat the firm u La-ravc Il Co. had
disnprearel Not or the member, not piece %.
stock ~ goods could bc found in t1e deserted
store On Bfcadway. MS discovery came - thunder
BOT upon me swIHlei MERCHANTS aud upon The friends
o., tbc f4u es of Lagra,r aud OILS 10 was found that
the goods wch L4griva CO. had been procuring Ia this
cltyou credit had Ueen shipped 10 nadrpia Baltimore
and other large cities and sold at auction During ne
two years which the ii IN mad been In business they
had made several shipments oI their goods the Last ship
ment being Obtained ilOu =. 4. Stewart a 60. ana H. b.
Claim Il co. 81 first 10 estimated that tne amount
involved ~ the -wlude >6J0Oo0, ,Acn it was in-
creased b. SsOOO9O and finally when meeting OF the
creditors called j, found 10 reach 600 600 Il
vas decided 10 ur La-rve and Gus, and 10 eudeav0r
to bring them ~ Justice and mon-y was sub.criDd TO
carry on search. Tie entire mercantile con-
muuIty was aroused. ana the friends OF the
hfty OF firms swndlod, offered 70
tribute 40 no expense. A committee, consisting of
Wm. -ir0Ig % Bald via, r. Il Acd: Richard Ajsrr.
OF budeu, Ffcres AZ &c.; Charles T. leiH Ot g. g. Dtub-
man 90 ami Aaron Ilcd, Of ti-ld Morris Co., were
appointed 90 look alter the Interests OF tie creditor.
Detectives were put upon tie case, and 10 MAS
Learned upon Tie very threshold J tc investigation tat
Lt-rNc and O.ls had committed burglary. by cutuug
pOie through wall between their store and another,
meuts accordingly found against botu OF the
Lers o. tine hr: sng tuem with conspiracy 10 de-
fraud tueIT ciIJuIs Iud vita committing gary.
IL adlt 90 his other crimes. LisrYc was guilty %
scducin- ana eOpng wI.h the yOun aud beautiful wife
OF 4 lawyer named Eoshng, VINO was driven ciaz
D. tns poW; aId G.ed IN idnltlc kyllm. Tue
JUJ after much -siifu detective WORK that II was
learned that they ha1 gone to Toronto, then
arrested and detained at Queenstown fBry
technical point ~ the extraduon treaty, tney
discharged after detention Of few days ~ TINS m.n-
P'"sN tnr dfftvrs mo we're 20 e. AVN fir,n
tAeiu by be prod gty With Siicu tAry spending
their il-gotien wealth By means %; photographs iury
were followed through pIrls to Brussels AID LasGye
tina ~ found al tie Wdtciu--pGcc, ba--cs.- te
rHchou in Tie south " France. The dctectTes. from
81. -
merchants Joan j. Townsend, the result DO thcr WORK
Mr. Townsend, fearIui tnat LagrIye would escape d
~ soud be made 10 secure HIS eItradu9n Tor
SWIMMING only, procure extfiuitiol papers naa Il on
tie ndctment FOR burglary; Laerave vas taken INTO
custody soon att,r IN France, ana hrCJght To
TINS connuy. IN october -, Gus nayns
escaped, tosttlcr Win LhErVrs pa.dln0ur. "hrh
case CANT up ID court, his counsrl, John Graham,
D. .niaiIcd tnat 60 con,t ute burglar when wound
France and the Un,ct states, tue 5urgary mast have
been committed III uTenns-lousc' ueI-Dy making u
bui SiaIy u Tue Irst degree Inc General Term 1I lr
supreme Court heid Ar point well taken, aud lasraye
WaS rrr sed. 1ne decision, however, reversed by
lhr court Oh -ApFrii-. pOu Itt"lI- l,S i4pc4. -
grave returned 10 Europe where ne Is said 70 De living
FOR many months alter This attempt 10 punish Lasraye.
nothing could be learned Of the place where as partner
ON staying. incted by promises Of large reward,
several American ana Eugiisl detectives nept up tue
s-arcu for mn, Out tnOul success. Occasional reports
we're invariably uuIOunued and many rsOns who read
Of his capture Yesterday viii think of Gus one re-
sitting in easv-char in the cosy paror Of Ludlow
street Jt last JtcOb G.. Gus received TRIBUNE
reporter gave instructions to let reporter r,
bat nave deoidcd T. sec You, ne SAID, he motoncd
ms VISITOR 10 q seat Five years Ol3 was
nne-oOung young merchant. with Il full face.
Iiy checks, sparkling eyes aud hair of glossy
b.lck. the reporter before han pale face. deeply
iurrOWci Win t-e acs Of care and trouble. aten-
ultcd form, aGd head covered with gray mars. r
sorry hat YOU nave hcaId OF my ease" said Otis.
visn, fO sake Or my family. tht nothing would bc
published ABOUT H. The entire matter ventilated
year, Especially, since the BE- Iil-
ca. ca, should lnoro De nothing said &C present"
Finally, EIUWlDg communicative, Mr. OtIs spoke Of
hs career II tnis cry ana ABROAD The story OF oar
bisnt's ah'is LAS been widely pub shed" lac said.