The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-07-06
FINANCIAL AND COMMERCIAL.

FINANCIAL AND CONNER GAL.
~~~~~~>~~~~~~~~~~~~~~
MONB Y MAR X MT.
"WEDNESDAY, July 6-sP.M.
There was an intense excitement In Wall street day.
caused by the that there had large
over issue Of stock in the New York and New Haven
Railroad Company. This intelligence caused great
deal Of talk in financial circles and It win BE- long
time before the public mind win recover from the effect
of the disclosures which have lately been made Of this
character We received at easly hour this morning.
the following notice from the Executive Committee Of
the Company
New York AND NEW HAYES RAMaoAD CoxPAsY.
The Executive Committee Of the Directors Of the New
York and New Haven Railroad Company feel it their
duty to avail themselves Of the 6rst practicable moment
ton made BY them within the ast twenty four hours
n
that an Illegal and unauthorized issue Of certificates
Of stock Of the company to .hrge amount have besn
made within few months, which are now held by par
ties, doubtless ignorant Of it, character It has been
for them within the short period since any
the precise extent Of this fraudulent thorough
examination will be made ct once BY the directors and
the publio win be promptly informed ofths result.
New York, July s, 1854 . IA
On Monday, the Sd instant, Mr.. Norris Ketchum, while
sitting in his Office wss visited by several gentlemen,
who DESTROYS Of getting his opinion relative to the
present and prospective value Of the stock Of the New
York and New Haven Railroad Company The low prices
current and the rapidty with which prices have
down. created curiosity the part Of Mr. Ketchum
to know who selling the stock at such deprecia-
ton To satisfy that curiosity he went to the transfer
Office and looked the transfer books and stock
count. He added the stock account and found but
traing discrepancy in the aggregate-not sufficiently
large however, to create any suspicion Of fraud The
Of stock amounted to only about two hundred
shares which he thought might have occurred in
mistake between the different transfer Offices Of the
company; but the he received from the ques
tons put to the clerk aroused his suspicious than
anything else and he immediately took possession of
the books and carried them to his residence On Tues
day, the 4th Mr.. Ketchum with Mr.. Sturges and Mr..
Burra carefully examined the accounts and discovered
issue of about nineteen thousand shares of
stock, the par value of which ID million nine hun
bred thousand dollars.
Soon after the election for directors, held In New
Haven, We received anonymous letter from ndivi
dual in that city requesting to call the attention Of
the board of directors to the acts Of their transfer agent
who the President Of the company We treated it
do all anonymous letters containing charges against
individuals and let the matter drop but the writer
evidently posted up in some way, had his suspicious
regarding the stock accounts of the company. Is al
rumors in Wall street. In consequence Of the suspicion
with which everything in that vicinity Is received The
two great specializing parties continually at work
manufacturing al sorts Of stories for the purpose of
raising depressing tho market value OF certain stocks
and thing We hear must be received with great
deal of allowance for the motives which actuate the
divdua engaged The issues Of stock by the transfer
agent Of any company IL matter which the dree-
tors exercise not the slightest control There
vision and with non-dividend paying company over
issue could be carried for years without discovery
The over issues in the New Haven Railroad Company
have probably been going since May July 1885, tho
time when the payment Of dividends arrested by the
Norwak accident Since then the amount Of stock issued
never has been known to the Board Of Directors; and
but the failure Of the house of which the transfer
agent of the company was member might have been
some longer before anything fraudulent would have
discovered the stock account The Parker Vein
fraud would not have but for the desire Of
change in the management and closely contested cleo
ton. How the New Haven company escaped an expose
at the last election Is . wonder The vote must NOT
have been large enough to excite suspicion which
the party in the fraud Their year at least
to carry his game before discovery but for the sus
pcion alluded to. SO far ascertanei up to late
hour to day, the over.issue amounted to nearly two
millions Of dollars It win probably go far beyond that
figure The Board Of Brokers prohibited the calling of the
stock and there transactions in It, AL deliveries
Of stock contracts have been suspended and everything
connected with the stock will be held in allegiance until
the executive committee Of the company report the
suit of their nvestis This Is really unfortu-
nato state Of things. The extent Of the fraud, the
respecabty Of the party concerned In the swinde the
position occupied by the suspended house, and the effect
Of its innumerable contracts becoming null and void all
make II Of the most deporabe events that has
Cured in Wall street for many years No one knows who
to trust and such acts destroy all confidence and al the
public mind with doubt and disrust We know not who
the next defautsr may be, and know not which
pany win be the victim. That there other railroad
companies and other interpretations In similar CON
dton, do not for moment doubt. We have very
little faith in the management Of majority OF them, and
believe there good many weak spots in the best of
them One Of these days the truth Of our statements and
structures relative certain banking institutions in and
about Wall street will appear in shape too strong to be
removed by the assertions Of the parties concerned
The board Of directors and officers Of the New Haven
Railroad Company have had the entire confidence Of
capitalists and the community Investments have been
made the stock At the depreciation since the Nor
walk accident believing 1t to be good We have had our
doubts about the administration Of the company's af
fairs and have frequently stated but the character Of
the men engaged removed from the public mind all sus-
pcion and the stock held in large lots BY some Of
our shrewdest fnanciers The result has shown that all
men are liable to whom circumstances favor and
temptation ID placed In their way The house OF h q T.
L. Schuyler have for years past been extensively
engaged in railroad contracts and In the management Of
railroads after being completed. AT one time Mr. Robert
Schuyler was President OF Ave companies The opera
tons Of the house exceedingly large and their Gnan
cia affairs doubtless became involved BY the great depre
Citations in the market value Of the different
railroad securities In their possession. Some time since
we alluded to the fact that several large holders Of New
Haven railroad stock had been compelled TO realize to
meet the payment Of nsalments on investments in the
bonds Of western railroad companies. We referred
then to the Messrs Schuyler. AL sorts Of hnancierng
has been resored TO- keep the machinery Of the
Germ in operation and all failed at last The over