The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1882-08-24
New York IIeraid.I

houses, In all of which politicians daily
congregate, continued yestcrdayto be filled
with gossip ard discussion upon the reve-
lations about Governor Cornell. The same
topic occupied the smokers on the iron
steamboats, TO and from Coney Island, and
the loungers there upon the piers OF. IN the
hotels. Indeed, the Governors blind
pool T" has already become popular phrase,
and "D'ye want me TO invest In District
Telegraph" has been adopted as a new
synonym for "no you don't" Ihe Haii-
Breeds in all these places seemed exceed
mgly disconnected when they heard the
news about the Albany conventions. Dis
cussions sprung up in the courthouse cor
ridors regarding the extent to which the
Governor had made himself criminally
liable.
A lawyer who has been for twenty-five
wears or more constantly connected, and
who still Is connected with the practice OF
the criminal-law courts, was asked yester-
day by q reporter Of the World to inform
il what procedures could be taken il what
the Albany Journal had said about Cover
nor Cornell was true, and II what Mr..
Gould, Mr.. Dillon, Mr.. Sage, M. johnson,
and Mr.. Tillotson have repeated should be
put into the form Of afldavits.
"The Tillotson matter is new to me.
What is il? / have read all the rest"
The following from the He'dld'S Saratoga
correspondence, rs the result OF an inter
view with Mr.. L. g. Tillotson. was then
carefully read by the lawyer:
"In October, 1878, Mr.. Cornell at the
annual election OF the American District
Telegraph Company made board TO suit
himself, consisting mostly OF his political
friends, who had never been stockholders
in the company, leaving in the direction OF
the old Board the president, f. W. An
drews, and myself. Mr.. Cornell at this
time was very much embarrassed in pc
cuniary sense. suggested to him, know
ing his impecunosity, that he ought to
avail himself of the opportunity to make
some money of the District Telegraph
stock. This conversation took place in his
own house. He said that he would see me
on the following day. He came to my
house at that time, and told me that
he had concluded, If he could get
any money to go into Il pool, to buy
10000 shares of that stock. | offered TO
furnish the money if he could buy at q price
that would be advisable. lie then gave me
to understand that he would see me on the
following afternoon. On the following
afternoon, upon coming into my office,
was informed by my partner that Mr.. An
drews, president of the American District
Company, had been there to see
me, and seemed very anxious. On the fol-
lowing day, on my way down town. stop
ped at Mr.. Andrews's Office. He informed
me that on the previous morning, the morn
ing after Mr.. Cornell had spent the eve
ming with me, he came to his Office and said
that he desired 100000 OF the company's
money. He directed the drawing OF three
checks of $4,000 each to the order OF
HOtchkisS g. Burnham, stockholders. The
following conversation then took place be-
tween Mr.. Andrews end myself:
- Whose stock note did you take for
this money, Mr. Andrews?'
The note of Mr. COrnell's son (whO
had just attained his Majority
DO you consider him responsible for
ESQ, 000s'
~ have 70 idea that he has any respon-
sibility financially
SO Is there any collateral for the loan 2
"' Mr.. Cornell says he has put up stock
OF the company as collateral
"'Who is the custodian of the collate-
ral?'
g.. Mr.. Cornell himself, in his capacity
Of treasurer and vice-presdent.'
"'Have you seen the securities, Mr..
Andrews?'
a. No. sir
(The checks had to be signed by the pre-
sident and assistant treasurer1
"'What purpose do you think Mr.. Cor
nell required the money fOr?'
80 Undoubtedly for specializing in the
stock of the cOmDany.'
"' Do you think that this was right, Mr..
Andrews, and what authority had you for
doing it?'
'"'To show you how ! felt Mr.. An
drews further replied, Il came to your Of
flee at O'Clock yesterday afternoon with
these checks unsigned, knowing that you
would demur 10 the Transaction. and so de-
murring | should have positively refused
il, but not finding you and knowing that
the price OF my refusal without such justi-
fication would be the loss Of my position,
| obeyed orders. and signed the checks at
your desk | then called the assistant
treasurer Of the company, Mr.. Hotchkiss,
and made inquiries of him which sub
stantially drew out the same information |
had received from Mr.. Andrews. Immc-
diately on returning TO my office | for
warded my resignation As director in the
company. As soon rs practicable thereafter
| also sent written communications TO each
individual director, reciting the affair and
warning them OF the danger OF such trans
action. The records of the company will
substantiate everything l state. 1t Is noto-
rious that Mr.. Cornell used that money to
speculate in the stock Of the company; that
he so manipulated it as to cause an advance
to between 20 and so per cent, realizing
to himself large profit, which enabled
him to pay off large amount OF judg-
ments filed against him in the county
clerks Office New Y Ork. The payments
were made few days before his nominal
ton for Governor. A previous loan had
been made to Mr.. Cornell on bonds of the
Gold and Stock. Telegraph Company, thus
leaving $4,000 OF the company's surplus in
his hands, or nearly all OF the available
funds (Which had previously been loaned
on call with governments as tollateraD."
"Thls is a serious story against any man,
provided that Mr.. Tillotson is trust
worthy" said the lawyer.
"He certainly is Trustworthy. Mr.. L.
G.. Tillotson is known throughout the
Union in his business as a manufacturer.
importer, and dealer in railway and tele-
graph supplies at Nos. and Dey street
and l43 Centre, and as n man OF high in
tegrity. Furthermore, he actually sun
ported Governor Cornel's family at one
time OF the Governors financial straits
Every well-then--then" - Here the
lawyer hesitatcd and said: "Oho! Then
that transaction must have been the reason
why the Governor hesitated about an .
proving the Penal Code" The LAWYER
then jumped up and took down copy Of
IL from his shelves. "IIere we are. Sec.
tion o9l is an adaptation of the British
statute iorbidding director from pledging
lhe shares Of his company without the
knowledge and authority OF his fellows.
ana making such an act a misdemeanor