Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-08-26
CORNELL'S CORNERS
Another and Startling Revelation of the
Business Plans and Purposes of
New Yerk's Governor.
As n Private Individual He BOrrows
$4,000 from a Corporation of
Which He was Treasurer.

| NEW YORK, August 24-Mr. Elisha W
| Andrews, former president OF the American
| District Telegraph Company, being asked
| about the charges Of Mr.. Tillotson against
Governor Cornell as telegGaphed yesterday,
| fully corToborated them. The statement OF
| Mr.. Tillotson was that Governor Cornell, as
vice-presideut and treasurer OF the American
| District Telegraph Company, had made a
loan of $50 900 out of the funds of the COM
| pany 10 his brokers, Hotchkiss & Burnham,
| on the note of his son, Charles CorueIl, Sc
| cured by 5000 shares of American District
Telegraph stock held by the Cornell estate
In other words, Mr.. A. 3. Cornell as q pri-
vste individual, borrowed $50 900 from him
self as treasurer of a corporation and gave
himself security for the loan in the stock of
that corporation which he controlled
Mr.. Andrews, in indorsing this charge
said: "The first l knew of it was when Mr..
Hotchkiss, my assistant secretary, brought
me three checks of $4,000 each TO sign,
explaining that they were for Hotchkiss &
Burnhsm, and that Mr.. Cornell had been in
to see me, and had left word that he had
effected the loan of $4,000 at six per cent on
security that would be perfectly satisfactory
to me. On the strength of this assurance 1
signed the checks, although hesitated for
time 10 do so. The facts in the case we're
these: l had previously been ia the habit OF
loaning the money of the company TO differ
proper security for IT, and as the surplus on
hand increased my work and anxiety and
responsibility increased until L had stopped
the practice. We then had about $50, 900 or
$4,000 on hand, and l called the Executive
Committee together and told them l was
unwilling to carry the responsibility of
constantly handling this money any longer,
more OF that committee in making all loans.
SO NV suOOesfiOn the mnnav aa mt into
The Union Trust Company, where We were
getting three per cent. interest for it. 1t
was afternoon when the checks were brought
to me, and 1 could not see Mr.. Cornell that
day. Before signing went to see Mr.. Tillot-
son, he said. Not finding him l returned
10 my Office and signed the checks. The
next day Mr.. Tillolson called On me, and to-
gether we went 10 see Mr.. Cornell. / then
learned from him what the security was on
which he had placed the loan. Mr.. Tillot-
son is man who expresses himself very
fercibly, and some hot words passed between
him and Cornell, and, as he says, be resigned
his position Immediately afterward. AS Mr..
Tillotson has said, the security on which the
loan was made was a note of Charles Cornell
and 5000 shares of the company's stock.
There was no sort of question about the
stock being worth more than twice the
amount OF the loan, but l felt as Mr.. Tillot-
son did, that the transaction was an entirely |
improper oue and when Mr.. Tillotson spoke
as he did about it, felt, as may easily be |
imagined, very sore about it. His state |
ment as it is published this morning seems TO |
reflect upon me, but took the same view of |
it that he did. When we went to see Mr.. |
Cornell about the matter, Tillotson said: 81 |
don't consider this transaction right. Ii is |
entirely improper for an executive officer of |
the company 10 be borrowing the compauy's |
money in this way on such security, and / |
decidedly object to it." Cornell said: 81 |
think the security is perfectly good, and if |
the company gets six per cent. interest in /
stead of three, don't see any objection to |
it." 1 agreed with Mr.. Tillotson, as l said,
and l had some correspondence with Mr.. |
Cornell in relation TO the matter after the |
/ spoke OF. He went away Just
after that, and was, think at Albany and |
In Washington also. L know L wrote him
several times, and once, at least, / wrote TO
He wrote back from the latter
place, asserting to what l said, and prom
lslns that when he returned to the city he
would see th at the money was returned. Ac-
when he came back, which was
within two or three weeks after the loan was
N ade, he paid back the money with interest,
and that was the end of the whole matter |
It's short horse and soon curried. / felt
deeply about it, for L had founded
The company and had seen it grow to
great magnitude through my efforts, and
felt that 1 could not endure to have it
spoken of as a company whose officers
we're using its money for their own benefit,
md felt that the transaction was one thai
effected upon Mr.. Cornell's honor. 1t was
lot that the security was not perfectly good, |
,ut we ought not TO have loaned money on
'ur own stock, as said to him, and the loan
'ught not to have been made as it was. l
presume there are plenty OF corporation Off
ers who borrow the money OF their COM
,anies, but they at least use the artifice Of |
Icing it through other parties. I am out Of
he company now, having sold all my stock,
or reasons which have nothing to with this
natter"
Are you cognizant of the operations OF
he blind pool?"
"Ah, that is entirely another matter Mr.
iornell did not act according to my notions
n the matter of@the loan, but he returned |
he whole of the money, and the question is
therefore, settled. The matter of the pool is
ifferent. Yes, do know something about
he pool, for was one of the signers of the
greement. Mr.. Cornell came to me one day
nd said that he though the stock was selling |
90 low, and that he proposed to make up
ombination which should push up the price
lie proposed to me to go into it, but L de-
hurried, saying that / did not operate in
uch things at all. He urged the m latter |
cling me that he had such men as Smith, |
ohnson, Sage, Dillon and Gould in it, and |
hat he wanted me in it. / still demurred |
hough i acknowledged that with such names |
ne operation ought to be strong one, and | I
aid that perhaps 1 might go in, but that 1
opldn't be certain of having enough money
} handle my stock. On this Mr.. Cornell |
Did me that he would take care of thai, and
signed the paper, though 1 really could
OF say now how many shares of stock / |
sned for / signed however and THAT'S the |
sst 1 know about the pool"
"Did you put no money in it?"
"None at all. Mr.. Cornell was to take
are of it for me and give me chance to
lake something"
"And you took no money out of it2y
"None. AS told you, that was the last 1 | {
yer knew of it,"