The New York herald., 1872-08-29

KINGSTON, N. Y, August %, 1872.
Great commotion and excitement were 0ccasioned
in this city and along the line OF the New York,
Kingston and Syracuse Railroad Qate Rondout and
Oswego this morning, by the announcement that
the railroad company had instituted proceed
ings In the Supreme Court against Mr.
Thomas Cornell! President OF the First Ma
tional Bank Of Rondout and ex-President Of the
railroad company, for the purpose Of recovering
large amounts Of money alleged to have been fraud
ulently taken by Cornell and appropriated to his
own use while President Of the company. Mr..
Samuel d. Coykendall, son-in-law Of Cornell and
Vice President OF the same bank, and Anthony Ben
son, ex-Treasurer Of the railroad company,
are also alleged to be implicated. The dis
closures thus far made are OF the most
damaging character. The announcement was
received by all with surprise, and by many with in
credulity; but this mornings papers-the Kingston
Argus and dJou,7sal-publshed the complaint in FULL
leaving 1t no longer in doubt
Mr.. Cornell hitherto has borne good character
for honesty and business integrity and the allega-
tions made by the railroad company came like
thunderbolt upon his friends, striking them dumb
founded. He was widely known throughout the
State and In the financial circles Of the metropolis.
These alleged frauds will tend to unsettle business
in this county, and no doubt, cause considerable
anxiety in Wall street. The amount of the alleged
frauds il not yet definitely known. Rumors OF all
kinds are anoat and
The complaint alleges that while Mr.. Cornell was
President OF the company he secured $1,000, 600 or
town bonds belonging to the company through the
means OF
that he at other times drew from the treasury Of
the tn the St e whs
OF the company, received other large sums OF money
belonging to the company, which he has appropri.
HI. nd
has never. accounted. The plaintiffs In !, their M
complaint allego that during the time Cornell was
DAN, son-in-law OF Cornell was his Cornell's con-
ndental clerk and. apart from the defendant, had
no pecunsry means or responsibility, and that
during the same time one
ANTHONY BENSON
was the nominal Treasurer Of the company, but
ns In ss' Of eopne n'sTss vno aDs s
and managed its affairs and handled anu
manipulated Its moneys, securities, bonds ana
That under act OF the Legislature Of this state,
passed April y, 1865 authorizing certain towns in
harie to issue bonds and take stock In the Rondout
and 0swego Railroad Company, towns In these
railroad company, az folows:-In Ulster county
The town OF Kingston, 100000; the town Of Olive,
sne .oMn q, az In Del
e stsoGs the S.T town S q 1srpsrs
Halcott, $4,000, aud in schoharie county the town
OF Gboa $4,000. That under this act Of the Legis-
ature commissioners were provided for, who were
authorized to dispose OF the bonds the most ad-
vantageous terms, but not less than par, and were
required by said act to Invest the money realized
from such sale in the stock OF the Rondout and Os
! wego Railroad Company, and that the money was
| required 10 be used In the construction Of such
| railroad; that Cornell, by
| ARTPUL DEVICES
and by misleading the Commissioners and for the
| purpose Of evading the provisions OF this
| act, became himself the nominal purchaser
] " ~ the bonds " ~ the towns without