New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-12-23
CHARGED WITH FRAUD.
4 STUMBLING CONCERN BROKEN UP.


END or THE MUTUAL STOCK OPERATING COMPANY
THE PRESIDENT SECRETARY AND TREAsCkhi'
INDICTED AND ARRFsTED-How IHE cohfANl
OPERATIONS WE'RE CONDUCTED.
Inspector Byrness detectives arrested Yesterday
afternoon. ON bench warrant ssued by Recorder
Smyih Michel p. Cafe, Laurent Defossa ana Chas.
WANT, the president. treasurer and secretary u
the Mutual stock Operating Company" whlch
was recently succeeded by the " Gnaranty ana III
come Company" at No. ~ Broadway. fhey are
charged with obi aiming money on false pretehces'
and have been Indicted by The Grand Jury. Inc
history of the swindlIng operations oil the Mu'uh
Stock Operating Company extends over all
entire year, ard pr badly two hundred per-
sops have been robbed by it of sums ranging from
50 TO more than 81 900. The efforts of the Stock
Exchange have brought about the exposure.
In November 1870 Michel i. Cafe and Laurent
Defossa, who composed the firm OF Michel L. Cane
d Co, organized the Mutual Stock Operating Com
pauy. electng themselves president and treasurer
and Charles Wyant secretary of the concern. The
capital was at first $150,000 but was gradually
raised to $500, 900 TIE par value OF the shares
was So. Circulars and advertisements which were
scattered widely set forth that the company pos
scssed key somew hat thc principle used by the
United States Signal Service, by which ITS managers
enabled to foretell with certainty the nPward
were enabled 10 invest the coupanyS capital 10
great ADVANTAGE. The purchase and sale OF stocks
were represented as made on the Stock EAchange
through brokers employed by The company. MS
part OF the programme, however, was III reahiy
omitted, while the sale OF shares went Orishly on
ana grew until II became necessary TO Increase the
capital At their Office, in tue lower part OF Broad
way. the managers received "A constant stream nI
eager investors. to whom The privilege of examining
the books of the concern was cheeriully eX-
tended. Entries of the purchase and sale OF
stocks shat showed a handsome balance on the
right side of the ledger were eXllied, Dut IL any
person more than ordinarily lnqnlsltlVe Wlshed 10
see the accounts of the company with ITS brokers,
by which alone these figures could be veliied, eva
sive excuses made; If tine person persisted no
was IN OTmed that The BOOKS were the private prop
erty oil Michel Cafe d Co., and could not be ex-
hbIted a. the, would ut once disclose the nature OF
the key" upon which tie property # the company
rested. These answers usually served the pui pose
OF shutting characterization. The company had alb
sOrbed probably rs much aS fZOu,oUO from lh1
pockets Of credu Gus investors. aId had VI. la.rd
every month an imaginary dividend OF ~ or 10 per
cen of the par value OF the stock, when, early IN
o tObeT. the Governn ent stopped the mails oi
several concerns of SIMILAR character. he Mn ual
Stock Operating Company was hOI mo'Si'u' pul
the exposure compelled II To suspend operations Tor
"A wulle. and iis last declared "olyidend was not
paid. Harassed by the persistent efforts OF the stock
Exchange TO drive them ont OI business, Alchei l.
Cate d CO. appealed 10 toe stock hOluers OF the con-
Germ to show their faith In heir management Oy
iora,s were sent. giving Michel p Caae & Co full
right to mold their share, and invest thc money rs
tuey liked. Nearly tnrte-tOurthS OF the StccNhOu-
eTs signed the agreement aud receives IN exchange
for their stock In the Mutua StOcE Opera, ing Com
panv shares, the par value ~ when 900, IN the
"GuaTauty and Income Company" founded Dy the
same firm at Nos. 10 and ~ BrOadwa,, with a CAPT
tai OF II .o0O,0 600
The new company did not get fairly under way,
however The Law Conn ttcc ol IL" Stock TX
change. aided nv Inspector Byrness detectives, had
for months watched Tor cnancetO pat stop TO the
sWIndlmg operations. The exposure IN October had
been accompanied 10y auvettlsements IN The papers
calling upon the sWindied stockholders IN the NM
tual stock Operating Company 10 gave tier assist
amce 40 the Law Committee and their attorneYs
Quinn * Oakley. Many responded, ana cvl
action was begun IN their bcnalt 10 dissolve
the company. An order giving the rlainlhS
ATTORNEYS rue right 20 eXInlne the managers
of The concern before tho trial, IN order TO
secure impor. ant information, Was obtained nom
Judge Lawrence, bnt was aiieIward vacated
Enough evidence had been accumulated, however,
10 bring the case before the Grand jury, ana IN IN
company for obtaining money under tails pretencrs
Tie three men, when taken lnlO CUSTODY az th"h
office by j tectivts Dorsey, Fields aud OCOnnor,
afr cted great surprise and some lud gnaiOn. lhey
were lodged Ia cells al Ponce lieadqhlrler'. Michel
L. Cafe and Laurent DeiOssa 1--we 90 No. ~ West
Ihirty-secOnd-st., aLu Charles Wyant AT NJ. l32
West FoTty-eighth-st Calf, who Is said to- bayc
been The moving spirit oil the company. u SOL oi a
merchant of siauding in this city. DEL soa IL said
by ihe police 10 be "A Frenchman. OF noble fdWlli,
who fled his country wncn accused OF a serious
offence. WANT was formerly Il lur-mcfChani. Inc
poiice congratulate themselves upon the success nj
issue OF a case tuat has cost months o. PERSISTENT
labor. The prisoners VIII be AIKEN 10 court to-day