Dodgeville chronicle. [volume] (Dodgeville, Wis.) 1862-current, 1866-03-01

ther iona OF relating StoTy THAI HAS iHao0
him famous all over the Pacific coast. but
he says that he yields to no man in his adj
miration of Horace Greeley.
The New Haven Railroad Case.
Lame as Justice is said to be, she travels
steadily and surely--at all events in some
cases. It lacks but few months Of twelve
years since the financial community was
paralyzed by the news that the President OF
the New Haven Railroad Company had been
flooding Wall street with spurious certlti-
Gates of stock, and had run away TO hide his
guilt and his shame in foreign lands. SO
vast was the extent of the fraud, and so high
had stood the character Of the criminal, that
people at first refused to believe the news.
Schuyler was not only member of the
church and scion of our sshereditary no.
bility," but he was man personally we'll
known in Wall street, universally esteemed
and respected, a king among railway men,
q potentate among fnanciers. Yet this
Schuyler, as it was soon proved, had issued
fraudulent certificates of stock in the New
York and New Haven Railway Company to
an amount exceeding two millions Of dollars,
had foisted them on his friends and ae-
quaintances the bankers, brokers, and
money-lenders of Wall street, and had run
away, leaving no trace behind.
After the first shock, Wall Street turned
its attention to the practical consequences
of the development There was S3,OOO,OO0
of genuine stock of the New Haven Road,
and $2,OOOO0O or more of stock fraudu
lently issued by Schuyler. The stock had
hoox, ,n+:ro o,J oy, tho noOrOinG when thn
fraud came to light, there was hardly a
banker or broker in New York who did not
hold directly or indirectly some shares.
How could the so-called spurious stock be
distinguished from the genuine? The bro
kers studied the subject, and finding that all
the certificates were alike, all duly signed
and registered, and all to outward appear
ances equally valid, concluded that no dis
tinction could be made between them, and
that the Company-being bound for the acts
of its officer---must be equally responsible
for all. This was the sense of the New
York Stock Exchange, and of the bankers
and brokers throughout the country. They
therefore summoned the New Haven Rail
road Company to recognize all the certlfi-
Gates, whatever their origin, and to trans
fer them on their books.
The Company refused. It's counsel took
the ground that though the Company was
responsible for all acts Of its officer per-
formed within the scope Of his official duties,
it was not responsible for acts committed
beyond that scope, much less for crimes
committed by him. And some of the subor-
dinate clerks Of the c )mpany undertook, by
q process never clearly explained, to sepa-
rate the so-called spurious stock from the
genuine, and to pronounce two-thirds of the
floating certificates of New Haven stock
absolute waste paper.
Naturally indignant at this proceeding,
the brokers dubbed together and instituted
legal proceedings against the Company to
compel them to recognize the so-called spu-
rious stock. More than half the leading
lawyers of the city were retained on their
behalf. The Company accepted the issue,
retained able counsel on its side, and pre-
pared for long fight. The stock was
struck from the list of the Stock Exchange,
and has never since been bought or sold at
the Board.
The suit began in the fall of 1854 1t
took many shapes, and came up IN various
ways There is hardly leading lawyer at
the bar whe has not been engaged in it at
some time or other, either for or against the
Company. AS rule the press and public
sentiment were throughout in favor Of the
brokers. People generally took the common
sense view Of the case, and decided that as
loss must fall upon somebody, it was more
equitable that it should fall on the Com
pany, which had erred in the choice of an
officer, than upon innocent holders of stock
who had been guilty of no negligence, and
could not, by any possibility, have protected
themselves against the event. But the Com
pany stood unmoved. 1t had long purse,
an obstinate Board Of Direction, and an in
genious party of lawyers. Year after year
dragged on, and but little progress was
made. Every technical difficulty was urged
by the Company; every side-issue was elab-
orately discussed; every possible motion
was made; every point of law raised and
thus, as we said, year after year passed ;
the law costs of the injured brokers were
steadily on the increase, and they seemed to
be no nearer judgment and redress AT last,
some six years after the commencement OF
the suit, judgment was obtained IN one oil
the cases. 1t was substantially in favor Of
the Company
This was so discouraging to the lltlgants
that many Of them, worn out by long wait
ing, loss of time, and heavy law costs, con-
Guided to accept compromise which was
judiciously offered by the Company. On
condition of Withdrawing their suits and
giving no further trouble, they received one
share of real stock for every two shares OF
so-called spurious stock. Thus at least
one-half Of the claims were adjusted at the
cost of all the net earnings Of the Company
for several years.
But there was one man among the prose-
cutors of the Company who was not dlscour-
aged. This was Cornelius Vanderbilt. He
had lent money to Schuyler on the so-called
spurious stock. He had examined the stock
before he lent his money, and had proved
the certificates correct. He was not now
willing to admit that they were otherwise
The adverse judgment did not dismay him
If the Company had patience, so had he. Ii
they had long purse, so had he. If they
could fee able lawyers Zone of the Compa-
ny's counsel is said to have received no less
than 500, 900 for work in this single case)
so could he. He rejected the proffered com
promise with derision, and babe his lawyers
appeal, and prosecute the appeal with vigor
Encouraged by his example, other victims
of the fraud declined to accept the compro
mise, and appealed their cases likewise.
Then followed moretedious years of post
ponements, arguments on side issues, mo
tons and countermotions, and all the lega
maneuyres which are SO profitable to law
yers and so heart-sickening to needy seek
ers after justice. There is no doubt but the
Company based its hopes in great part upor
| the probable death of Commodore Wander
bilt. If he died, there was every reason t.
believe they might succeed in wearing ou
the other suitors, and either inducing then
to accept the proposed compromise or de
featir them altogether. And he was al
| man over saYentY with heart-disease 81