The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-07-12
WAL street swlna,.s Net Results.

Wall street Swlndiss Net Results.
The stock books are still being vigorously
oveihauled in Wall street. and new life has been
galvanized into scores of directors and trustees
The change from the apathy of the past year or
two Is equally novel and gratifying 1t was re-
quired. 1t is calculated that Robert Schuyle
fraudulently Obtained by over-issues of stock
and other contrivances, something like three
millions of dollars, which he lost, or made away
from him. Other operators in the Parker Vein
Coal Company are supposed to have obtained
seven to eight millions of dollars in exchan re
for spurious certificates of stock, which are now
known to be worthless. A similar swindle on
the Vermont Central Railroad Company e stock
has given the rogucs profit of thirteen hun
dred thousand dollars: and one or two minor
cases of like nature have probably produced
for their authors quarter of million of dol
lars. Altogether, we may say, in round mum.
bers, that during the past few months, some
twelve millions of dollars have been fraudu-
lently obtained by knavish 6nauciers, whose
present responsibility Is zero. This money has
been taken out Of the pockets Of large class
of individuals. Spectators, who bought the
worthless certificates, men of small means who
invested their savings in the concerns thus plum
dered, capitalists interested therein, and the
moneyed community generally have been the
losers. Indirectly, all of us participate In
the loss ; for the discovery Of the frauds has
deprecated almost every kind of security,
and wrought sensible injury to almost every
branch Of trade. But the direct victims o.
these operations are the shareholders in the
companies whose name has been fraudently
used. Legally IS well as morally the loss OF
them. Some Of them have met the difficulty
boldly and at once assumed the loss and how
ever small the share of credit due to the adop-
ton Of course which was In effect unavoida-
ble it is still gratifying to find that the ex-
ample Of chicanery and delay set by one cor
porate institution has not been followed by the
others In cases of this kind, frank and prompt
honesty is always more economical in the end
than quibbling and hesitation. 1t is possible
that lawyers may discover some plea on which
the New Haven Railroad Company may seek
to thirk it's liability for its spurious stock issued
by its late President; but unless this branch OF
our Jurisprudence is very defective and incon-
sistent with the principles of natural right
such efence will only aggrsvste the defend
ants case, and augment the loss of individual
shareholders In moral point Of view, the duty
Of that company is clear. Robert Schuyler was
by their acts invested with the powers which
enabled him to perpetrste the fraud: they Ia
publicly vouched for his integrity by investing
him with the highest trusts in their gift; they
had, go to say, thrown the public of their guard
against him by clothing him with powers which
it would have been sheer insanity to delegate
to man of doubtful character or untried no
nesty. Should the company now tell the holder
Of spurious certificate issued In the name OF
the Schuylers, that he should have ascertained
the validity Of the paper when be bought 1t,
they may properly be answered that If any
such inquiry had been requisite, Robert
Schuyler should not have been where he was,
and that it was fraud and snare to keep
him there.
There is further reason why the late issues OF
spurious stock should be promptly assumed by
the companies. The credit of the whole finan-
cial community is involved in the case. The
msrest child can perceive that If the claims Of
the innocent holders Of spurious certificates
against the companies can be defeated by legal
bubbles, there Is an end Of railroad and in
deed Of all financial credit. No man will buy
q share OF railroad stock II, though apparently
valid, and 70 all appearance regular, II may
prove afterwards worthless In consequence or
some fraud Of the president or directors. The
recent disclosures have struck q severe blow
At our securities abroad II the loss il promptly
made good, and the acts Of the fraudulent on.
GERS frankly assumed by the companies, the iu-
ury will be repaired, and our credit will re-
cover; II that loss or any part Of It, is thrown
upon innocent holders, we must confidently
expect TO see Wall street ranked with Missis-
sippi, and our railroad bonds returned on our
hands from all parts Of the world. Common
policy should induce the companies that have
been robbed to say o. little about the matter
as possible, and make the loss good to the at
termost isr,hing.
II il hard matter Of course for the share
holders in halfa dozen companies to lose twelve
millions OF dollars; and on some, no doubt, til.
loss will fall with peculiar severity. But thi-
is after all one OF the small misfortunes OF lite
Houses are burned, desks are robbed, pocket
picked, and lives and limbs endanyered or
lost almost every day these are in their way
greater cslamities than the robbery Of compa-
niles, for the latter might be averted By