The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-07-03
The Schuyler Frauds.
BUPREME COURT.

Before Hon. Judge Sutherland.
July 1.-The NsW York and Ne,u Hapas Rdilroad Com
pdny w. Robert ScAHyey amd otA0s-rhe Judge rendered
elaborate opinion in this case the facts Of which have
been already reported He says that in the Of shs
Nechsnics Bank against the New York and New Haven
eI s.d ~ u
600 goo Of capital stock limited and allowed by the
charter were void whether 10 the hands Of parties %
whom they had been directly given issued BY Schuyler
in the bands Of bona fde rapserees Of auch pares
and that no acton against the company could be main
sentipg such ISSUE and that the hodess Of such
certificates were mot entitled 70 any legal remedy relief
founded on such certificates as Valid or On the theory
that the holders thereof stockholders had the
rights Of sockholde. That this deotsos tS tne exseo
Of holding tpt this over issue absolutely void
In the hands OF nrs sker from Schuyler without noic
and W good faith, was NOT overrued or maeriaiy i'm
paired or moooed BY the subsequent decision OF toe
same Court W the case Of Farmers aud MecnaaioS 8sak
We. the BUTCHERS and Drovers' Bank (6ih New York
1a6) because, independent Of pont or queski0n OF
negorsbilty there was this real dieence bes~ssn the
two cases, arising nom difference the acts and
consequences Of the < held vAld) or the ocsrs
agents Of the TO which
the effect and consequences Of whch the question: 70 os
two cases ncse viz Ia the arst the Court cead
have ned that the oeendaot should not be permitted
deny the authority Of Schuyler to make add issue cero
cates Of stock beyond the % goo Of capital stock
for the OF compelling tho TO espond In
damages on tho theory that the Issue genuine
without holding that an essoppel could and should
10 repeal legislative Limitation whereas, 70 mold
the against the Butchers and Drovers' Bank
Inc corpo alton bound by the certificate OF teller
IN the bones Of bona ds holder and should be per
med 70 deny me truth OF the fact certified oy the teller
compelled the corporation 10 respond in damages for
false certificate OF s officer wsnous involving any snco
extraordinary or doctrine. The Jadse fur
TIER raysNy concluson is that the facts Of the
the decson Of the Courts before referred to eau upon
to grant this motion for Injunction as 10 the defendant
10 this action, who commenced such action against The
plaintiff prior 70 the commencement Of this sc,on But
the actions of Cornelius Vanderbilt the Presasnt Drec-
tors ard Company Of the Mechanics Bank and by the
fendsnss coHposng tne fim Of Denns,ouB, Wood %
hreat hsae such injunction them issue uot
the plainG h this action executes bonds 10 the PLAINTIFF
10 tuch sesefa actions with two sufficient suresies 10
approved 20 form and susncy by Justice Of this
Court coodr required by the provision Of
statute q Hev stats 1885, sec 10Y, aud severally IN
the penal hereafter specified; such bonds be
executed and delivered within days Afssr the entry
The order for such icjuncton The bond 70 Cornelius
Vanderb s erected 70 be In the penal Of 500 oo0
the bond the defendants composing the firm Of Dennis
touD, Wood Co. in the penal sum OF $50 c00 and the
bord 70 the nechanis Bank In the penal OF SIS 0Oo
In the plaintiff tns action shall neglect 70 prosecute
The same witbdue diligence any OF the defendants may
apply for Discharge modidcAIOu OF this order upon
due notice Cests to abide the event