Robert Schuyler developed extensive interests in transportation and finance during the expansion of American railroads. Working with family and business associates, he became involved in steamboats, railway securities, and railroad management. His positions included the presidency of the New York and New Haven Railroad and, from 1851, the first presidency of the Illinois Central. His overlapping corporate roles made him prominent in New York business.

At the New York and New Haven he also acted as stock transfer agent, giving him direct control over the issue and registration of certificates. He used that position to create unauthorized shares and to support transactions involving his business interests. The irregularities continued over several years before becoming public in 1854. Nearly twenty thousand unauthorized shares, with a face value approaching two million dollars, were involved. Their use as loan security spread the consequences beyond the railroad.

Schuyler resigned his corporate offices and left the United States after the scandal emerged, traveling through Canada to Europe. He attempted to explain his conduct in a published statement but died in Nice in November 1855. The railroad and holders of disputed certificates remained involved in litigation for years afterward. These proceedings examined the difference between invalidly created stock and corporate liability to injured purchasers. His career became an early example of railroad financial misconduct.