The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-07-31
- New York and New Haven Hsalroa
Frauds.
sUPnExB COuBr-sPBCIAL TERN.
Before Hon, judge Davios.

To New xOxk ana new maven 1SSAAhU~"
Frauds.
sUPnENB COUEr--sPDCIAL TERN.
Before Hon. Judge Davies.
JpIY 20 Geo. Oaypestv, ". X Vermyka and oA1s,
vs me Nev York and NeQ Hau~ Reilroad Company An
injunction was granted In this cass, restraining the defend
ants from paying the dividend declared by the company
and payable the 10Th of February last or any portion
Of IT, and from declaring any dividend upon any Of the
stock Of the company and from using any Of the prory
&c Of the company for shs purpose Of paying such dvi
dend any part Of H. any dividend upon any OF the
ock OF the company motion ID now made BY the dc
feudsnts 70 dissolve the Injunction The plaintiffs are the
Of upwards any shares Of the New Haven Rail
road stock The company refuse 10 recognise the STOCK,
the ground that the certificates held By the claimants
bad been illegally issued by the transfer agent Toe plain
tim charge that the dividend had not been made 10 good
faith that the Bead OF Directors had directed the defend
ants 10 ba paid and sDporoned only ho.e who held
such certificates the Board Of Directors hat seen proper
10 yecosp that w declaring which OF the certificates shall
be recognized and which should not the company mad
ADOPTED an arbitrary rule which unjust, alike pre-
clsicapss OF stock not recognized, aud that u
Ia mpraccabe to specify trace the false issue OF aicck
or 70 Distinguish from o'her stock In the case OF largo
majority Of the certificates, especially In those two shares
represented, by1 which have been mingled with other
shares held by parties who had connection with Mr.
schuyler and wbch have been passed through the hsuds
OF several psres, each Of whom has Unfortunately
blended all the stock owned by him. without any regard
to The sources where II was Obtained that even Il were
discriminate between the original 80 900 shares ana the
issued stock, would be improper and unsafe aud
violation OF their duty to undertake to discriminate
while lIgat0ns pending and claims outstanding to
large amount inst the corporation depending tbs
1ps adjudication of the question: THAI II the company has
hand any surplus Assets which is not necessary TO
me 10 pay the ordinary demands aganst It, the same
should he Inv esed in "a 70 produce Into
end create fund for the purpose Of providing the
cf Jay OF the claims Of the holders Of the
ced stoh which may be adadged against the company
The paats alege that II the earnings or the company
be divided and apporoned among iheareclgnzed stock
holders OF the company, instead Of being applied to the
pay of its debts and liabilities, the )any will be
unable 10 meet ts liabilities to satisfy provide for
the claims the holders of said alleged falsely and frau
dueny iYued stock without resoriing to means which
will emharrass the Transactions OF the ordinary aud ieg
ate Business Of the company and require and demand
large heavy sacrifices Of the means OF the company,
which will greatly diminish and depreciate the value AMI
worth Of the stock Of the company that the plaintiffs
ap?rebensve that the company will proceed to pay tue
dvidhd declared by the directors, and payable on the
leah Fehrrary, 1857 uness tho payment OF the same be
restrained by this court add that such dividends will II
PAID be paid to and divided among these only who
holcerr of the sbarSs Of stock OF the company which
tho Directors have recognized and that all other claim
anis Will DO excluded from any participation therein
The Of the defendants 1 forth that, since the
tec'p In the Court Of Appeals, they discriminate
between the fraudulent bona d stock and that the
certificates the possession OF defendants part Of
the fse and fraudulent issue of Robert schuyler. Argu
ment waa heard Decision reserved