The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-08-22

pelled to Increase their aonual expenditures from
DALI to three quarters Of q million eacb--the
money goes into tbe pockets of our ma, kes men.
our provision dealers aud our artisans, aud ~
ryopor'ionably benefits society in all les various
raml6catiopr. Our merchants aud shopkeepers,
our places of amusement, orr manufacturers and
artisans, In fact all classes, are patroaized aud
encouraged by the influx of strangers and 10
tu,n are enabled to offer still greater induce
ments and attractions for visiters to the metro
polls, and 80 prosperity begets prosperity. The
tendency Is of course to general inAation and
though crashes must periodically come, let US at
least put off the evil day as long as we can.
The SCHUYLER FRAUDS IN CouRT AaAN-M-
JUNCTION AGAINST THE New HAVEN RAILROAD
CoMPANY.-It is now over Eve years siuce the
community was startled by the Intelligence that
the head of one of the great financial firms Of
Wall street had fed the country after having
perpetrated frauds on most gigantic scale. 1t
was on the Sd Of July, 1854, that Mr.. Robert
Dent and transfer agent Of the New York and
New Haven Railroad Company; and to the di-
rectors Of that company be left note calling
their attention to the stock ledger, where, he
said, they would find much that was wrong. A
careful examination of this ledger showed that
40 overissue of 1880 shares representing at
par value $1,773, 0O0) had been made.
The question then arose as to who were to be
responsible for this overissue of stock. The
holders had purchased it in good faith. The re-
gu)aIy appointed agent Of the company had is
sued it. If there was bame to be laid any.
where, except at the door Of the principal male
factor, it was to be ascrbed to the Board of Di-
rectOrs, who by their lax system Of manage.
Dent, had given facilities tor the commission OF
the fraud Besides, it was impossible to sepa.
rave with any certainty the genuine from the
spurious Issue. All bore the same marks of ge
nuinenesr, and were, up to the moment of tn.
exposure, treated by the company and their
president as genuine An arbitrary rule
was adopted, which was to treat only az
absolutely genuine that which was issued prior
to October, 1853, although in the litigation that
eDsued testimony was given to show that the
fraudulent issue commenced as early as 1848,
and that in 1850 over thousand shares Of
fraudulent stock had been issued.
In this difficulty the courts Of law were ap-
pea)ed to. The bona fde holders of fraudulent
srock could make no terms with the company by
which their stock, purchased in good faith ana
from the legally authorized agent Of the com.
paDy, would be recognized After some years
CT litigation it was finally decided in favor of the
company and against the interests Of the holders
Of overiesued stock.
The company bad, in the meantime, immedi
ately after the fight Of Schuyler, employed an
accountant, Mr.. George Holbrook, of Boston, to
ascertain the amount of stock overissued. After
this job had been completed he was required to
separate the genuine from the false He agreed
to make the attempt, but after weeks trial he
found it impossible to effect separation with
airy certainty Of correctness. Nevertheless, be
was urged to persevere, and with what light he
had he made out list of the stock supposed to
be genuine, never supposipg, as he says, that his
examination was to be final and conclusive. On
this list, so made out, the directors have since
acted, paying dividends to the holders of the
stock therein comprised.
1t appears, however, that in 1856 Mr.
Holbrook, having conscientious acruples as to
the correctness Of the principle on which he had
made the separation, entered into correspondence
with the directors Of the company, and was en-
ployed to make another examination. He spent
two months at it, and arrived at results very off
ferent fiom those be had arrived at in the first
iostance. But being in the act Of preparing q
list of the genuine stock, in accordance with the
last examination, he was told by the President
that be might spare himself that trouble-they
wanted NO new list.
These important facts have all come out in the
course Of proceedings that have been recently in
stituted in the Supreme Court IN this county.
Messre. Underwood, the holders both Of genuine
and spurious stock, having ascertained that the
last examination showed results more favorable
to them, have sued out an Injunction to restrain
the company from paying the semi annual divi-
oeDd just declared until it is ascertained what liz
and what is not genuine stock. On the applica
ton, an affidavit by MIR. Holbrook, setting out the
facts We have summarized, is given. The tenn
poraJy Injunction was granted, and tomorrow
the defendants are to show cause why 1t shall not
be made perpetual
Thus the whole subject of the Schuyler frauds
is reopened The fairest and only practicable
way Of settling the question justly was to have
recognized all the stock issued by the authorized
agent OF the company. 1t may have to come to
that at last.
A METEOROLOGICAL BUREAU.-The City Inspec-
tor, we learn, intends to bring before the Com
mon Council at its next regular meeting an ap-
plication for the creation Of Bureau of Meteo-
Biological Observations in connection with the
Sanitary Department Of the city. This bureau
will bave for its objects the establishment Of q
series of thermometrica ranges tidal stats, rain
n