The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-05-01
The Schuyler Railway Frauds.
SUPREME COURT-spFCIAL TERM.
Before Hon. Judge Z. p. Cowles.

e. r..
APRIL 30.-Ihe NeW York and New Haven RaiHool
Company Us. Robert Schuyler and S26 ohe,s.-In this
injunction had been granted, restraining the
defendants from prosecuting the plaintiffs for saares
alleged to have been fraudulsnty issued by Robert
Schuyler late President of the company motion was
subsequently made to dissolve the induction but the
Court ordered it to be continued until the hearing aud
determination of all the motions to dissolve the njunc
ton and that the several defendants show
3Oth April why the injunction order should not be
tnued until the final hearing and determination Of this
action.
there wsssn immense array Of counsel present. the
plaintiffs being represented by Messrs Noyes Po wers
Tamac &c, lodge and Tracey Counsel for several OF
the defendants, Msssrs +. B. Cutting D. Lord, H. F.
pain,s alleged that the shares are wholly illegal
spurious and void and do not represent any poron Of
the eeruine stock OF the company; trat they were
raudulently issued and pat into circulation through
me agency OF Robert the former presdant OF
the comgans without the knowledge or authority Of tue
Ibe plaintiffs also allegs that by the Law Of the State
OF 1onnectcut the capital stock OF tEe company-hee
the shares thereof altered diminished reduced
by vote Of the directors and that any
attempt TO do would subject the company to the for
feture OF its charter or the directors to fine mprson
ment.
Some of the defendants demur rome move to strife
out parts Of the complaint and others put in
coDtendiDg for the validity Of their shares which they
paid for In good faith, without knowledge, notice or
suspicion Of any fsehood fraud irreguary defect
Of the title Of the certificates thai they pai their money
in good ath and in reliance the transfer we'd and
made in the transfer books Of the company.
The complaint forth the act of incorpora
tion of the company, and that the full amount
Of shares of stock 80 0C0--had issued iu pur
OF the charter signed by the transfer agent
OF the company, and that printed blanks Of GER
tifcates left with the said agent, In order
to facilitate the transfers by the holders Immediately
after the organization Of the company the defendant
Rot eYt Schuyler appointed President and transfer
agent for the city of New York. On the Sd July 1854
Scbuy Ter sent in letter of resignation which the
first nimaton given to the company of the overissue
Of stoch they then proceeded to make careful exam
nation OF the stock ledger and transfer books and dis
covered that in October 1863 Robert Schu Ter had made
fraudulent overssue of stocks and from that date
June the 29h 1863 the number OF shares thus frsudu
ltntly issued amounted to 1926, all Of which
Issued by him. in bis private business that of his
rm and not for the beoei 1t Of the company and that
the tock did not purport TO emanate from the company
but issued and transferred by Robert ani George
Schuyler in their PERSONAL and business alings
After preliminary argument as to the order in which
the should be taken up the Judge decided that he
would fret hear the demurTers and next the motion to
strtte out.
Mr. Cutting proceeded 70 read and comment the
complaint, and to argue the demurrer.
Among the large ho%lers OF the alleged fraudulent
shares, Mr.. C. Vandersilts name appsars for 2,000
5000 coo worh-and Nr. August Belmont for $So, ,00l
worth but these and other gentlemen had commenced
suits against the company and are not enjoned by the
present injunction. The case is still on.