Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1854-07-07
Gbe Daily spg.'
FRIDAY, JULY Z, 1894.


A most intense excitement was created in
New York. on Wednesday, by the discovery
that large amount of stock, purporting to he
&c tbe New York & New Haven Railroad Co.,
hal been fraduiently issued by the President,
,,bo was also the Transfer Agent of the Cor
poration. Up to Tuesday evening, it had been
sscertained by committee of the Directors
that the over issue amounted to nineteen
thousand shares, the par value of which would
be one million nine hundred thousand dollars,
and If was believed that the whole issue would
exceed tieo millions of dollars. The Presi-
dent of the Corporation was Robert Schuyler,
Of the firm of R. & E. L. Schuyler, who
have been very extensively engaged in Rail
road contracts, and in the management of
Railroads. They recently failed in conse-
ouence of the great depression of Railroad
property, in which they had been specializing
yerv extensively The firm had been in the
highest repute, having the entire confidence
of the mercantile community, and Robert
Schuyler was at one time President Of FIVE
Railroad Companies.
1t is said that Capt, Vanderbilt holds six
hundred thousand dollars worth ofthis fraud
ulent stock, as collateral security for loans
made by him. A considerable portion of the
over issue is probably held in the same way,
by other parties. The person who committed
the fraud having failed and become irrespon-
sible very important question arises, whether
the loss win fail upon the Corporation or upon
those who hold the fraudulent stock. A very
general impression is, that it must fall ON the
Corporation. In the mean time, all transact
tons in the stock have been suspended at the
Brokers boasd. Mr.. Schuyler has resigned
the Office, of President of the Corporation,
and W. w. Boardman, of New Haven, has
been appointed President pro tenn
The capital stock Of the corporation is three
millions. and its loans and other liabilities
about two millions more. II he stock has been
one of the best in the country, but, since the
great accident at Norwalk, in the spring Of
1853, it has paid no dividends. This fact en-
abled the President to issue the stock without
detection, and tits supposed that the fraudu-
lent issues have been going on during most Of
that time.
This is probably the greatest fraud ever COM
mitted in this country, and it will have dis
astrous influence on railroad stocks generally;
an influence they are little prepared to stand
against, as they were already in rather bad
o5or in public estimation. If such frauds can
be perpetrated with impunity, and if they are
perpetrated by men in such standing, who
Will feel safe in holding railroad stocks:
1t is very evident that new and stringent
Hesitation is required, to guard against the
recurrence of such frauds. Mr. Schuyler has
probably subjected himself to punishment in
the pententiary, aud it is to be hoped he will
eceiye it; but this is poor consolation to
those who are sufferers by his rascality. The
law should be 50 guarded that such frauds
should be rendered impossible We feel fully
satisfied that team be done, and we hope that
the feeling, which is now produced, will not
be suffered to pass away, until it shall bring
about such change in the laws as will meet
the exigencies of the case