The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1880-12-23
ASorHER swISDLE.
Leaders OF Gang OF Spectators With
Other Peoples Money Arrested In New

Leaders ofa Gang Of Spectators Will
Other Peoples Money Arrested In New
York.
NEw YoRE, December 22.-InspectOl
Byrne's detectives arrested this afternoon
on . bench warrant Michael o'Cafee,
Laurent De Fossa and Chas. wyant, Pres
ident, Treasurer and Secretary OF the "Mu.
tual Stock Operating Company" recently
supplAnsed by tho Guaranty and Income
Company" at No. 42 Broadway. They
are, charge with obtaining on false pre-.
tences and have been indicted by the
Grand Jury. The history OF the swindling
operations Of the Mutual Stock Operating
Company extend over the entire year, in
which time probably as many as 200 per.
sons have been robbed by 1t, in sums
ranging from S. TO more than 81 ,0000.
The efforts OF the Stock Exchange have
brought about the final exposure oil plan
on which swindle was organized, was
neither ingenious nor plausible, but none
the less successful. In November, 1879,
Michael P. CaHee and Laurent De Fossa,
who composed the firm OF Michael P.
oaGee { Co., organized Mutual Stock
Operating Company, electing themselves
President and Treasurer, and CHARLES
Wyant Secretary OF the concern. The
capital was at first $4,000, but was
gradually raised TO half q million. The
par value Of shares was S..
The circulars and advertisements that
were scattered everywhere set forth that
the company possessed key by which
its managers were enabled TO ioretell with
certainty the upward and downward
movements OF all stocks, and thus were
enabled 10 invest the company's capital
to great advantage. The purchase and
sale OF stocks were represented as made
in the Stock Exchange through brokers
employed by the company. This part OF
the programme was, however, omitted,
while the sales OF stock went briskly on
and grew till 1t became necessary TO in
crease the capital.
At their cffice man received constant
stream OF gullible investors, to whom the
privilege OF examining the books OF the
concern was cheerfully extended. Entries
OF purchase and sale OF stocks that showed
q handsome balance on the right side OF
the ledger were exhibited, but eyasive ex-
cuses were made to those more than
ordinarily inquisitive. II a person per-
sisted, he was informed that the books
were the private property OF Mich
ael Cotfse's Company, and could not
be exhibited, as they would at once
disclose the key upon which the prosper
ity OF the company rested. These ans
wers usually shut of investigation. The
had absorbed probably as much
as 100000 from the pockets OF credulous
investors, and had declared every month
an imaginary dividend Of 10 or 10 per cent
on the par value Of the stock; when early
in October the Government stopped the
mails oil several concerns OF similar
the Mutual Stock Co. was not
molested, but the exposure compelled 1t to
suspend operations for while, and the
last dividend was not paid. Harassed by
the persistent efforts OF the Stock Ex-
change to drive them out OF the business,
Michael P. Caffee & Co. appealed to the
stockholders OF the concern to show their
faith in the management by singing an
agreement giving Caffee & Co. the right to
hold their shares and invest the money
IS they liked.
Nearly three-fourths OF the stockhold.
era signed an agreement, aud received in
in exchange for their stock in the Mutual
Stock Company, shares at par value, OF
which were $50 in the Guaranty and In
come Company" founded by the same
firm at No. 40 and ~ Broadway, with
capital Of million dollars. The new
did not get q fair start, however
the Stock Exchange, aided by police in
spector Byrpes and his detectives, had
watched for months to trip up the
sYindlAFE.