New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1859-08-19
THE SCHUYLER FRAUD.
,uNCTIoN On THE AUGUST DIVIDENDS,

SUPREME CoURr-Bef,re Justice BcR.HAM.
job ard Henry A. Underwood sst The New
YoIs and New Haven Railroad Company, and others
TIE Plaintiff who are holders of genuine stock and
voters in the meetings Of the Company, set forth in
the con plain. the act Of incorpo atian Of the de-
fendsnts in detail giving q history of the Schuyler
Frauds 70 called, which is we'll known TO the public;
repe q. the usual avermeLs 10 this case aud charge
that the oyerissues and fraudulent certificates of
Schuyler commenced, lot about October, 1855,
as has been ss.umed by the Directors Of the Company
in distinguishing the genuine from the fraudulent
stock and the real from the pretended stockholders,
but early July, ls4S, amounting oy 1850 TO at
leas. 600 shares, and prior TO October, 1883 to
very large number, very great many of which are
still outstanding" that the Company, proceeding
upon this essentially erroneous basis, have treated
al persons deriving title from Schuyler previously TO
October 1883 as genuine stock aolders, allowing them
10 vote, ard paying them dividends, that the iesg
nation Of the holders Of over-issued stock, and of
fraudulent certificates Issued sGce October, 1853, is
also erroneous; tia; in consequence OF the transfers
and retrsnsf,rs biz atious, and dvis OF genuine
aud fraudulent stock aud OF other crcu instances the
separation is in many instances very difficult, If not
impos bic, az least until the facts shall be ascertaiaed
End the principles OF the separation and designation
determined by some competent legal tribunal"
Upon these grounds an injunction restraining the
Company from paying the dividend Of 50 share,
pay able the 18Th August 1852 or any dividend on
the stock of said Comp any, until who the genune
stockholders Of said Company, and for what shares
shall be asc.rain,d by the final judgment of come
competent legal tribunal in this or some other actiop
until the further order Of this Court and until the
facts b. asceItsined by under the direction Of this
Cont, ard that the plaintiff have fuch relief 10 thi,
actor, by Injunction otherwise, may be agreea-
bic TO equity and good conscience"
The complaint is accompanied with two ahidavits
the material portions of which we subioin:
Abraham j. +. Vardewster, accountant, deposes
tha, he vas clerk OF the firm OF X. & c. l. Schuyler
from the L.. Of January 1919, to Schuylers resigns-
ii in July 1854, their Office being the office of the
New-Yoik ard New-fisyen Rai,foai Company; that
sIce hat time he las been clerk of the Assiguees of
tie 6rT TO whom general assignment for the benefit
Of creditors was made and toat in those capacities he
became familiar with the books Of said Railroad Com
pehy 10 rhIen he bad free acces; that he has made
saf' enniranon Of the tanssctns Of r. schu,ler
81 ils met ooHnsston wh The said company fur
'n'a a H. A. Underwood volaiDou. from the
POS o sad fm Of their d.anss 10 said from the tear
ob a~L".id Inst from suh examination be kco hat the
90 o. e- directors OF me Company ths said over issues
@ s.,s and transfer. q over issued stock much before
peie ths As early as 1850 Robert Schuyler had cet,s
eai.s oi easi GO SHARES thai fr had and
'A us conu,d 70 maze such Issues time his re
power. Il s,oIey o. lie s Of hem .Da Ra Ise
schuyler IN bic 81 the Of bis firm au;horzins The
tssi-r Of he shares snonei 10 the certificate and when ne
eeIhce' came IN and the stock actually transferred
sty transferred under aid po~er. Of attorney Of
cs. such transfer could only relate The menoued in
sed whether Issued whareyer r.pu
credit. - - " 'N"
Tia, large proportion CT the transfer. Of stock By R. L.
schuyler rroT 70 October 1883 10 oves-d stock although
depcLspt caneo' without the examination Ct Il. transfer and
c.uhese ooohs q the Company particular Transfers
ofteagine and what e over-issued stock.
ihs lie e.Tuhcaies surrendered originally sled and
s July 1854 were Issted in and preserved the CO rtfcs4
p thu 49, .-r.g..
pJ TIE oeslhA;es Issued b. said Schuyler genuine
Icing made - 'e''
psIStsh fa5e a' that As esIly Juiy lsis the books Of
re 40 L. SchuJe show that the uu OF ~ shares
ne sock Of said company sold transferred 6y The said
exceeded the quantity q shares subscribed Tor or pqr
Ae D. th- OF trsnfrrEed 20 them and
on Transfers above The sses b-d BY them OF standing 70
ih.r ciec continued from tine time sacrward. Ta. a,
,te ~ edeeIs Of the said company Il tended >,
u o reods Of subscsed stock and lc,lL transfers ae
ooh care that the Transfers uay made by or Ia
The name q Ia firm did exceed the ars. 10 aid 6rn The
soeH -ecogr! u aid fru might balance and yet over