The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-09-22

The directors OF the New Yer. and Ne Havoc Railroad
port il relation 70 ths issus Of fraudulent stock By their
hte prsaident -
Robert schuyler first appointed the Pre- ssasut Of
the eonpanv he 10Th day Of May, Isas and by
csssvc asA slsctisns he he's hsd the Of
q: 70 . <.
During that period Of eight years, and up 70 the dis
covsry Of hs recent he hAe ssst.sed the highest
Yeps'stion for Intelligence and integrity, and par
ticulArly for his expesnee and skin In the
crpstrucion and management Of railroads.. abuodant
services and advice sought on these and
the lucrative and responsible railroad Offices
he bss bella curing that time and the powerful influence
he has always exercised in thcir government
chief executive ocer exercising the principal powers
com any and Of the dirsc, ira Who never had until the
recent discovery, the slightest ccubt II his psrest
t<grty and fonor.
As sems evidence Of Tire estiuAtion In which Mr.
Schuyler was hsa BY the s.ocihoIrs refer 70 the
fonosDg reou'icn, passed unsnnonsy at meeting Of
the stock holders, held In November, 1870
Rescl ed that the stccA holders have entire oond-
dence in tie president and beard Of directors bssicg
them not only with zeal and naeiy, bat with high In
teligepce.
By ~hich Mr.. hpser has ben constantly re elected,
that hi eoauc president has met the
and COZ bdence 81 he stockt oilers
Mr. Schuyler also the transfer SCENT Of the COM
papy rom tire commencement Of is opera ions TIE
company being Connecticut corporation its principal
The pIinci al part Of Tvs business however was trans
acted 10 the city OF New Yors-is onces wers praou
czly there s principal stock aeount was kept there,
and MIR Schuyler, when aNiDg 10 that cspscty.
csed the Office duty usually entrusted to OF the
high st offcsrs Of ell soch corporations
Ire povf ion frthe transfer II shares In New York
such obtAned geps ally in TIA city, excspt the
greater security that trsnhfer dire
cor saepss and that Of it, and was not
clerk agent EN- IL ,ye6 at rslary HIS duties
and posers AZ such we're clearly sed ont BY tho BY
Laws Of the company. No greater guards could have
been thrown sround the execution OF his cutes cples,
they such to imply entire aness for any posi-
tim Of ust; and hs tau ruck the directors dill
the con nunity, with profound aronishmsnt
The largo faes Of the comiany's stock had attracted
the srepii Of two the directors as early IS
the 2sth Of June. but suspcons entertained b.
any ono Of Mr. scbuylers integrity, that anything
wrong in the ~ansgement Of TIE o9mpsny, until the
the Board met Schuylers legal adviser, his way,
he sad, deliver letter totee Boari enclosed
then cut Of towB: the of the letter that
1t con tsineo Information in regars to over.
Issue 81 stock but declined doliye,n the letter it
not tceived by the t. hom II addressed
until the next day The oirecor with whom this
conversation had, tosE immediate possession Of ths
so 10 and with several other directors speDt the
Al OF July In examining them Toe fraud was then
discovered notice given Of it the morning. of the
9TH Of July the several bulloixs The following
New YORK. July 8, 1854
GnT1EsEE-l beg to resign nv seat in the Beard OF
Directors u the New York and New Haven Railroad
Company and also the Office 81 President and ths sp
yon ment Of Transfer Agent tock Of the
essential you will nnd there much that wong Tho
details can Do furnished you With precision, tn ,ugh
transactions with X. G. L Schuyler, wish make
my solemn nee, that Ia wsy has my brother
been concerned In them has he beisn
Informed Of them in fact there mode in VII CHI
he ould obtain information except from my SELF
have been quie KEEP him in Ignorance
any her person He coild nave oed
the facts from and counts and to those
Of the New Haven Company in my charge he had no
access. Your OBJ dislt servant, -
To the TmrcroRs OF TIE N Y. AID N RR
Dotee sas sso gwen In the newspapers on the eve.
ring OF the III Of July, in these wordr -
NEW York AND NEW HAVEN RAILROAD CoxpAyY-s It a
meeting Of tho Board Of etors Of this company holden
thi. morning, y has been made appareat basty
the late President Robert ehus lsr Transfer Agent In
New YORK. that BY Of false ENTREES and
other s'msr practices issue Of egal fraudulent
stock has BEEN made within few months past TO the
amount, nearly - he ssserfained OF nearly
twenty Thousand shares or two mil ions OF dollars
the directors, Of the AMI tspers and the result
When accurately Ascerta!ned, viii be made public
In The meantime the sraOstsf books are closed, by
By order of the Board II Directors
Nxw YoRK, July s, 1854
1he Directors also oob legal advice to the duty de-
voivrg upon t5sm III the emergency, in pursuanos
sscoons Of IKE .nv to s.esrsin prs..sr tSs
amount Of the capital stock then aIdns and hox
much Of the same had been rsuauently p.op,rly
1rsuec, and 2 axe report possible soon
proper assistance could be procured the COMMITTEES
upon the eseh.se Of their duties aud the 70
herewith submitted BY this It appes r. that the gsna
inc capital stck Of the cnrpapy consists Of 30 100
shares o. hundr ed dollars each amouptipg IN al to
a.'oo,,to dollars That Mr. Schuyler has issuei f.lse
certificates purpcrtng to be oruca II to the
nIm Of +. l. scbnskr Of vbich lie member,
ans also his fTaudclent issued other hke oeri
6Stes tn other Lcr whose appear In the 70
port smoun''I in the vhoe between the 18Th DC obsr
1853 and the 81 July 1864 inclusive 20 1872 shares
Besides which there ous snding certificates in the
name Of h. G. L. schuyler, covering l,s4s shares,
STOCK which 'ssss M 's serses o. Gs r.pI se
tented has been transferred by X. h l. schuyler
snd seh.n Co. without surr.neeri9s tho
6catss have stock their credit books Of
TIE . mpsuy. Of the fraudulent STOCK a,2s3 shares
row stand upon the books Of the company Ia the names
Of parties to whom they Transferred issued by
g l. tehuyler OF the outstanding certificates in
the name Of h Schuyler s72 Of The Le4s sh ,rer
we're Mpued after they bad overdrawn their account
which FIRST october IS, 1863 AND those ia the
pspe Ct sehe!i Co 100 shsres all for spurious
ton, but sou!d not have been done in rar period
The directors believe that results are accurately as
certane ana that the report presents the fsss they
An exceedingly important question arises from these
acte holders Of these false certificates Of shares
TO be REGARDED and treated stockholders Of tho COM
panyS Upon this subject and the other questions oon
nee ed with it, the board submits herewith the opinion
Legislature Of the State Of Copneeicnt, Win the assent
- tbs stcel holders The capital Of ,.k And
sDat the racouient nets OF an ocer grealy tran
tcending sDy power conferred upon him. shich tho
al ecte's or the company could confer upon him. do n,t
Dind or i'm ,licste the company in any way
With there facts and pions before m direct.
ors hsv called special meeting Of tho stockhodsr az
the earliest cment the BY laws would allow to AL
their ADVICE and assis,anc
The questions arising 70 interesting and important
and Involve great amount OF enniary nterssts
that the difectcr rhatcyer may be their in 5,idua
Views a. to the duties art obligations Of the
decline IN sale any decision to express any opinion
In regard 70 them for Of any lt OF their
po.sr in the peises and Of vail MY accorded
70 their determination whatever they may belle iu.-
tes and eqnty TO require thsy feel themselves pre-.
cud.d, by u ecpnipn already referred from tskios
sny direct action upon toll tubjest and submit
vi ole matter TO the judgment Of tho stockholders
Upon one point however, vbicd ia in the nature OF
preliminary question, and which be sstled before
the others be trsy taken w. thsre appears to be
no reason for differences Of o,jnon. meeting Of the
etock b0ders must LEGALLY con stitftad Uaoc, ,ho