The true Democrat., 1854-08-02
The Great Railroad Stock Fraund
 in New York.

The development of fraud has never created so much sensation and alarm in Wall street, as has the disclosure of the enormous frauds perpetrated upon the New Haven rail- road company by the issue of $1 ,9OOOOO spuri- ous certificates of stock. It seems that the at- tention of the committee of the company was called to an inadvertency in one of the stock certificates, on Monday afternoon, and the whole of Tuesday (the 4th, ) was spent in en- deavoring to investigate the extent of the fraud. It appears that for several months a series of false issues of certificates of stock has been made, amounting to the sum above mentioned. It appears that MT. A. Vanderenter the book keeper, has admitted to MT. Fetchum, one of the directors, that at one time, 10000 shares, and 5000 shares at various other times, were transferred by Mr. Robert Schuyler, transfer agent, to the firm of Messrs R. & G. L. Schuy- Ter, and by them hypothecated. This firm failed about two weeks since for a very large sum. The New York Post of the 9th, says:
 MT. George Schuyler is wholly ignorant of the financial condition of the firm of which he is samember, his brother having the sole manage ment of ist affairs. What explanation MT. 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 public some ex- planation of the transaction.
 The legal capital of the company is $8,- OOOOOO in 3OOOO shares; the stock now in market amounts to 49,OOO shares, representing $5,OOO,OOO.
 The directors of the company will, as we learn, order the books of transfer to be imme- diately closed, and the certificates of stock out standing to be called in for registration, so as to ascertain the real extent and condition of the company, as it is possible still greater amount of shares may have been issued.
 This discovery is great check to credit and confidence. The stock fell to sixty this morn- ing before the Board met. We learn that most of the spurious stock was pledged to Cornelius Vanderbilt, who has advanced some five or six hundred thousand dallars upon it.
 The directors of the road met on Wednes- day and the result of their deliberations was the publication of notice, in which they say:
 It has been apparent on nasty examination of the stock books which have been kept by the President, Robert Schuyler, as transfer agent in New York, that by means of false en- tres ensures and other similar practices, an is- sue of illegal and fraudulent stock has been made within few months past, to the amount as nearly as can be ascertained, of nearly twen- Cy-CHOueduO SAdTeS, OT CWO uullOuS OI OOlldIS. A rigid examination will be immediately made, by order of the directors, of the boob and pa- pers, and the result when accurately ascertain ed, will be made public.
 Robert Schuyler sent in his registration as President of the road, to the meeting, which was accepted. The Post further adds:
 At the Board of the Brokers this morning the stock was not called, it being resolved to do nothing in it until the official report was made by the Directors of the lew Haven road.
 A question has been raised as to the liability of the company for the spurious stock, on the ground that none of those certificates had been recorded. The question will depend probably upon the construction of the charter in refer ence to transfers All the false stock was sign ed by the President, who was the transfer agent of the company, and the Secretary who is ab- sent in Europe, but who left blanks signed for the Presidents use.
 This is the third over issue of stock that has been exposed within the last thirty days-vz !: The Parker Vein, the Vermont Central, and lastly the New Haven. The Parker Vein and Vermont Central were inveterate fancies daily