Morning journal and courier., 1882-08-28
hI1 II UIE I''LF SIUN. ooCrB0dry.
 New Haven, Conn.,, Aug. IS, 1882.
GOV. CoRNELL,s AFFIRMATION,

Governor Cornelps reply to the charges made against him by Jay Gould Is not entire ly satisfactory though he apparently talks with entire frankness and honesty. He de- nies that there was any imf-opriety in his use of funds of the American District tele- graph company. The charge made by Mir. Tillotson that tke Governor used the funds of the company for stock speculation is pro nounced entirely false. The company had money on hand for which it had no imme diate use. It was on deposit in trust com pany at per cent interest. At the same time members of the Governors family who were owners of several thousand shares of the American District stock were owing borrowed money on which they were paying per cent. interest, this stock being the collateral Thinking it would be @ desirable thing to enable the company to realize 6 per cent. in- stead of 3 on it's surplus the Governor suggested to President Andrews that they could loan $50, 900 on call with 6 1000 shares of the American District as security. The stock was then worth $6O, ,OOO in the market and since that time has always been worth much more. Mir. Andrews agreed with him without hesitation, and the loan was made. ''It is true," says the Governor, "that the loan was made on the note of my son, SC cured by the 5000 shares, because he was the owrer of the stock in question. When Mir. Tilotson, being informed of the transaction, objected to it, the loan was called in, and was at once repaid. It was & perfectly legit- innate transaction, entirely in the interest of the company"
 AS to the famous 'blind poor arrange ment the Governor says: At the time of the consolidation of the Western Union with the American Union our company (the American ! District) was sort of adjunct to the Western Union. The Mutual District bore similar re- l lation to the American Union. The consoli- ! dation of the larger companies left the small ! CT ones in doubtful position and fighting | each other. It was, of course, desirable to ! end this state of things. Gould and his 1 friends had taken hold of the company-the l Western Union-with which our company l had been, and was then, connected. Of
 course they could put their foot on our ] necks Negotiations were had with a view ] to consolidate the smaller companies andto l that end combination was proposed for the purchase of the stock of the companies.
 The gentlemen who had come into the con. trol of the Western Unlon com pany were
 asked to interest themselves. They sub
 scribed for several thousand shares, but the
 subscription was never completed, owing tc the failure of negotiations looking to consoli dation. Not dollar of money was paid nor share of stock purchased, as Mir. Gould
 well knows. And this is all there is ot
 "the blind pool' of which the Gould papers
 endeavor to make so much.
 But though the reply may seem little
 weak even to unprejudced readers most peo pie at all acquainted with the controversy
 will feel the force of the following statement by the Governor: 1T do say that I did be
 lieve, and had every assurance, and I believ.
 still, had I been pliant to the wishes O
 Messrs. Gould and Conkling in the matter O
 the elevated tax bill, I should have, if no
 their support, at least not their opposition
 and I do say that they have created and or
 ganized whatever of substantial opposition
 there is, and that not because of anythin,
 wrong have done but because of my actio, , in that and other matters wherein have bee1
 right" Some remarks by Roscoe Conklin are in order, they have been eve ! oiY