Washington telegraph., 1854-08-02
The Gigantic New York Fraud.

The New York Erening Post contains some ad
oltional particulars concerning the recent gigantic
ilaua IN the over issue of nearly 81 600 600 of
stock OF the New York and New Haven Railroad
Company. quite full account of which we gave
Yesterday. Says the Post;
The discovery of the fraud was made late on
Monday afternoon, in this wise:
Mr.. Norris Ketchuln was led by the large
sales oil stock, ant by the numerous iDoniries
made IN consequence OF the possibility of am over
issue, to go to the transfer Office of the company
and inquire of the book-keeper, who it was sup
posed must be cognizant of the exact state of the
matter, as to whether there might have been any
over-lssue. No satisfactory answer was obtained
but in the course OF Saturday Mr. Alex. Hamil-
ton. Jr, the legal adviser of the President brought
letter from him to Mr.. Sturges, whose attention
was called specially therein to the stock lodger
Upon learning this Mr.. Ketchum Immediately
coseted himself with the book keeper. anG told
him that it would save the directors much time
and himself much trouble if he would tell what
ne knew, when the latter admitted that at one
time 10000 shares. and at various other times
between and 5000 shares. altogether about o.
600 shares. representing S1,900,000, had been
transferred by the transfer agent, who is Mr. Rob-
ert Schuyler into the hands of Messrs. Robert
and u. l.. Schuyler, by whom the stock was hy-
pothecated.
Mr.. George Schuyler is wholly ignorant of the
financial condition of the firm Of which he is a
member, his brother having the sole management
OF Its affairs What explanation Mr. R. SCHUYLER
may be able to give, we do not know We learn
that his health was much improved this morning
and it is to be hoped that he may soon be able to
submit to the pubic some explanation of the tram
saction
The legal capital of the company is $4,000 900.
In 10000 shares; the stock now in market amounts
to 10000 shares, representing S5.00O00O.
The directors Of the company will, we learn
order she books of transfer to be Immediately
closed, and the certificates of stocks outstaading
to be called in for registration so as to ascertain
the real extent and condition of the company as
iii possible still greater amount of shares NAV
have been issued.
The discovery is great check to credit and
confidence. The stock fell to 60 this morning be-
fore the Board met. We learn that most of the
spurious stock was pledged to C. Vanderbilt who
has advanced some five or six hundred thousand
dollars upon it.
The New York Courier, says:
This will be found to be one of the most STU
pendous frauds ever perpetrated upon the Stock
Exchange of this or any other country. The no.
ted fraud of Fauntleroy on the Bank of England
in the years 1Sl5-iS23, for which he suffered
death, was about f3600O0 sterling. The over
issue Stock of the Bank of Kentucky. by Lewis,
Cashier at Philadelphia, amounted to about S470,-
00G, and the dealcation OF Swartwout onlg amoun-
ted to 81 25O, ,000l''
SCHUYLER can pride himself upon being the
most enormous swindler the earth has ever
known. Grand, gloomy and peculiar,n he stands
upon mountain OF rascality of his own creation
and can look down upon smaller scoundrels be-
meath him with the complacent thought that his
eminence is unapproachable!
As Mount Blanc towers above the adjacent
mountains in sublimity and grandeur. so does
SCHUYLER tower above all compeers in the realm
OF fraud. History furnishes no parallel to him,
and probably the future never will
This is the third over issue of stock in New
York that has been exposed within the last thirty
days-viz: the Parker Vein, the Vermont Central
and lastly, the New Haven. The Parker Vein
and the Vermont Central were inveterate fancies
daily banded about in the market and of uncer-
tain value, but the New York ard New Haven
Railroad stock rarely offered for sale aud un-
I'll the NorNalk disaster, which suspended its div
idends, was chiefly held by capitalists as a safe
and sure investment 1t is feared that these de-
velopments are but the precursors of Others, and
even OF greater magnitude N. 0. Bul.