Savannah morning news. [volume] (Savannah) 1868-1887, 1882-08-29
GOULD VS.. CORNELL.
The Charges Against the Governor
SUM mar1zed-The Famous Blind
Pool.

Following will be found brief but
clear summaries of the charges brought
| by Gould, known as the blind pool"
charge, and that of Mr.. Tillotson against
Governor Cornell:
The charge against Governor Cornell
of having been engaged in a "blind
poor stock iobbing operation emanates
from Jay Gould, and was given publicity
to in definite form on the Goth instant
! through an interview" which Gould
had by a Herald reporter. Gould said
then that he had an unsettled account
with the Governor in connection with the
latter's pool in American District
Telegraph stock. A ''blind pool" he
explained, lis a combination of parties
taking certain interests in transaction
and leaving the purchases and sales in
connection with the transaction entirely
to the party who gets the pool up, and
in whom they all repOse confidence" 1t
was during the stock excitement some
time before the death of President Gar
field that the Governor-then holding his
present office-is said to have gone to
Gould and asked him to take an interest
in the blind pool. Gould says he at first
declined, but the Governor was very ur-
gent, saying he could not make the ven
ture a success unless Gould would lend
him his name and get the names of Rus
sell Sage and Sidney Dillon in addition as
persons interested in the transaction.
Gould adds: "He said that if would do
this would be doing him the greatest
favor l could possibly do him. Being
thus pressed l reluctantly consented to
take an interest, and induced Mr.. Sage
and Mr.. Dillon also to take an
interest in it" Gould, continu-
ing, said that, according to common
report, the Governor had made some
hundreds of thousands of dollars out of
the pool, but had not rendered an
accounting. The Governors way of
acting, he said, had been to let the fact
leak out that he had the authority of
Gould, Sage and Dillon to buy the stock
and so raise the price, while he went
the other way and sold at the high
prices thus made.
which has been extensively circulated by
the Collaborating combination, goes
back for its date to the year 1878. The
accusation first saw the light on the 22d
of the present month, when it appeared
as part of an interview" telegraphed
from Saratoga to the Herald. The accuser
is Mr. l.. G. Tillotson, maker of and
dealer in railroad and telegraph supplies
of the kind that Mr.. Gould needs
doing business at Nos. and z Dey
street, in this city He was formerly a
director of the American District Tele-
graph Company. Mr.. Cornell controlled
%. 600 of the so, 900 shares of the compa-
ny's stock, and, according to Tillotson,
"that gave him almost absolute control
Of the company, which he exercised
with the air of dictator" The compa-
ny had at this time a cash surplus of |
$4,000 or 100000, Some directors
wished to have a dividend declared, but |
Mr., Cornell opposed it and it was de
ferred. In October, 1878, says Mr.. Til |
lotson, MIR. Cornell made board of di- |
rectors to suit himself, consisting mostly |
of his political friends, but leaving in the |
directory the PRESIDENT W. Andrews
and Tillotson. Mr.. Cornell was at |
this time pecuniarily embarrassed. Til. |
lOtson suggested he ought 'tO avail him |
self of the opportunity to make some
money out of the District Telegraph |
stock" Next day Mr.. Cornell went to |
Tillotson and told the latter, according |
to his account, THAT he had concluded, |
if he could get any money, to go into |
pool to buy 10000 shares of the stock. |
| offered to furnish the money if he could |
buy at price that would be advisable. !
He then gave me to understand that he |
would see ne On the following after |
noon.'
The next day, Tillotson says. he was
informed by President Andrews that |
Mr.. Cornell had been to see the latter |
and had obtained 100000 of the com
pany's money on his (Cornell's) sons |
note. Tillotson asked Andrews whether
there was any collateral, and was in
formed that Mr. Cornell, Sr., had put
up stock of the company as collateral,
but was himself the custodian of the |
stock in his capacity of Treasurer and
Vice President of the company. An |
drews told TIllotson that Mr.. CornelPs
purpose in getting the money was ''un- |
doubtedly for specializing in the stock of |
the company" Andrews added that he |
felt very bad about it, and had acted as
he had simply because he feared that |
he would otherwise have lost his posi- |
ton. Tillotson says he then forwarded |
bis resignation as a director of the COM |
pany, and sent written communications
to the remaining directors, ''reciting the
affair and warning them of the danger |
of such transaction" Besides these |
heinous Offenses, Mr.. Tillotson added:
"It is notorious that Mr.. Cornell used
that money to speculate in the stock of |
the company; that he 80 manipulated it |
as to cause an advance to between 20 and
so per cent, realizing to himself o large |
profit, which, enabled him to pay off a |
large amount of judgments filed against |
him in the County Clerks Office, of New |
York. The payments were made few |
days before his nomination for Cover
nor "