New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1855-06-25
NEW-.JERSEY ITEMS.
THE SCHUYLER FRAUDS.

SUPERIOR COURT--GESERAL TERm-JUss 9-Before
OAKLEY. G. J., and Judges CAMPBELL, boswohrH' hoFf
The Mech.ri.s' Bsni respondent agt The NewYork and
New Haven Railroad Company, appsuanr'
This is a decision on an appeal in this case. The
suit was 10 recover the market value at the time Of
taking it, being "a cent? of eighy-four shares of
the stock of the Company, pledged to the Bank by
Alexander Kyle Jr together with some Harlem STOCK
IN security for loan Of $4,000. $4,000 of the loan
had been paid The certificate OF stock had been Is
sued by Robert Schuyler, the authorized Transfer
Agent, and signed by him. regular power of attor
new for the transfer of the stock accompanied the GER
tifcate in the usual manner. After the discovery oil
the Schuyler fraud application was made by the Bank
to the Company to transfer the stock on its books but
the latter refused 10 transfer alleging that 1t was false
and forged the part Of Schuyler, and made for his
private purposes and also alleging that account of
the fraudulent certificates over-ssues which existed,
the books had been closed The Bank brought suit,
and Judge Bosworth at Special Term, considered
that the Company was liable for the amount, and
gave judgment in the par value Of the stock and the
present appeal was made.
The whole five Of the Judges on the Bench gave
opinions at length Judge Duer did not take any part
in the decision.
SIossos. 1.-The plaintiffs claim 10 recover as the
holders of the certificate pledged with them by Kyle
the par value of the stock represented or purPorng
10 be represented by the certificate with interest from
the date Of the loan damages for the refusal OF the
defendants to permit transfer OF It ON their books
Whereby as they sllege the certificate Is rendered
unavailable and valueless in their hands. That tine
certificate did represent genuine stock but that me
limited ,ne md l. also conceded that il was issued
for purpose and that the ,et Of Issuing vas
yns teueft The plaintiffs do claim that was competent
or Ire defendants By their act or ey the et OF tier
nun Of which diyded nor DO they scoe
to certificate sueh effect nor claim that ths
were bound % or had night issue genuine eerncAe In
exchspge this spurious doing would cause tne
the es. limits and hey T
sdnt them partners change the statute pro,aon > -
Of ~ shs hail thar this position sound
ope but they for this refusal the detendsns nave
ssG%s liable 70 male b.2 ,as sa S.rs been obliged DO had
the stock been genuine deny Manhattan COMPANY
flil go; Commercial Bank, Buffalo vs. k0rshr q "ena
The theory Of the action the defendants are bound By
Robert Schuyler in issuing this eershea,e thoesn
allure Of his powers and pure tIsud on h part nc
that The plaintiff. entitled as holders thereof sna oy
Of its terms be admitted shareholders or thst 90 Ia
practicable creating an excess q s,R 'f sl bDs de-
lied TO recunaIy indemnity from ms aeenusnIs ~,
pryed right which the certificate on It's lace corners uPo
Them.
On he alleged ound that ssenf IN toe course Of h
business ,och had admitted fraud BY which the pn,n
seepdsn, c1stt 10 the assumption that
the Company s. under the circumstances bound 10 w y tae
e iu.s Of the power. Of and which the Company
sf could not done and the question prsene
~ he ,cton whether the defendants be bound IN favor
saps bona fSe with their Tznsr Agent (which the
plaintiffs enpfsssedy wel BY an act Of his which they them
not rehtfaly have performed rghuy have de
rtea 10 rim he power perform bu' which he has IN fac
perorn ed while acting the discharge Of bis ces As Irans
AGENT Performance Of which ne nad genera powers AM
within the apparent limits Of his duties. g. -
To make right s recovery IN TN, seton on ne cause
made the plaintiffs - ncuoeut On tno Pains W eseso
| li,h the Affirmative Of fhis proposicn- =, - =,
III cues ion the solution u when epenas ster ~ on tns
were n NOT for the adventurous importance s.ehed % u iron
de s,upendous magnitude Of the GENERAL nsad OF winch tn'
bur part and from the vast pc
ennsry ipsrss to be affected BY the decision would not
ny prshenson, DO eoadeed ey The y
not Without the sanction Of the have under tss e
cuustsnces nsAfuly sae1 sh ssr'ahests' ssaas" tA