Savannah morning news. [volume] (Savannah) 1868-1887, 1882-08-30
GOVERNOR CORNELL EXPLAINS.
What He Says Concerning Ghe Blind
Pool and the Attack on Mr.. COnk.
ling.
Neuo York Times.

I
lieYe still, had been plant to the wishes of
Messrs. Gould and Conkling in the matter
| OF the Elevated tax bill, l should have. If
not their support, at least not their opposi-
tion, and l 60 say that they have created
| and organized whatever of substantial op-
position there is, and that not because of
anything wrong 1 have done, but because
| OF my action in that and other matters
wherein | have been right.
"While had the elevated bill under con-
sloeratlon you will remember that the or
gans began to announce that the hatchet
| had been turied and Mr.. Conkling would
not oppose my denomination. As soon as [
sent In the bill With my disapproVal heard
OF the efforts being made by these men to
create and organize opposition to my re-
election which l could not doubt The
papers owned and subsidized bv GouId
opened hre, local leaders were sent for and
talked with, changes were made in Federal
offices, and emissaries sent through the
State to try and secure delegates opposed to
me, and as means to that end to start ND
local candidates to be cast aside after they
shoulu nave served their purpose. Any one
| who doubts this need only read the Gould
papers and observe the actions of the men
| VINO are still under Mr., Conkling's control
| by reason OF his influence with the admins
tration at Washington"
Have you read what Mr.. Tillotsou is
represented to have said, and Jay Gould's
statements about blind pool?"
Certainly" said the Governor, "and
| there was nothing in either of those trsnsac-
tions involving either turpitnde or impro-
| priety, except that it seems to carry some
disgrace to have any business transactions
| whatever with Gould, even though forced
into them by desire to protect one's prop
! erty. In the first place, you must know
that nave been connected with the tele-
graph business during all of my active life.
| Ny father was q cOlaborer with Professor
Morse, built the first line of telegraph in
this country, and was for many years one of
| the most prominent telegraph managers. |
| Degan as telegraph operator at the age of
| sixteen, and l have ever since been engaged
In the telegraph business in some CAPACITY
or otner. For fifteen years have been a
director In the Western Union Telegraph
Company, ana Tor ten years director in the
American District Telegraph Company.
Mr.. TiIlotson's reported assertion that 7
! used the funds of the American District
| Company to speculate in stocks is false. and
| you shall judge whether it is not most
maliclouslY SO when l state to yea all there
was OF the transaction which con stitutes the
only oasis or his assertion. In the early
part OF 1879, ia February, think. the COM
| panY had a considerable balance of funds
ON hand for which it had no immediate use.
1t was on deposit in a trust company at
per cent. interest. At the same time mem
| bers OF my family who were owners of
| several thousand shares of the American
District stock were owing borrowed money
on which they were paying 6 per cent.
| interest, this stock being the collateral.
Thinking 1t would be desirable
taing to enable the District Com
| pany to realize 6 per cent. instead
OF on its surplus, l suggested to President
Andrews that we could loan $50, 900 on call.
with 5000 shares of the American District
stock as security. The stock was then
worth 100000 in the market, and since that
| time has always been worth much more
| Mr.. Andrews agreed with me without hest
| tation, and the loan was made. 1t is true
| the loan was made on the note of nv son,
secured by the 5000 shares, because he was
the owner OF the stock in question. When
| Mr.. Tillotson, being informed of the trans
action, objected to 1t, the loan was called in
| and was at once repaid. 1t was perfectly
l legitimate transaction, entirely In the In
terest OF the company. Not a single dollar
| OF the money was used to purchase tele-
| graph stock of any kind. The charge of
Mr.. Tillotson originated in malice, but you
have, OF course, no interest 70 hear the his
| tory Of any personal quarrel"
"But the blind pool,' Governor; these
are words OF ominous import to the un-
| initiated"
'Well, you shall know all there was of
| 1t, said he; "but first let me state the facts
out Of which Mr. A. B. Johnson's insinua-
| tioas originated, as they were prior in point
OF time. The chronological is generally the
logical order OF statement. Several times
| during the years 1879 and 1880 Mr.. johnson
consulted me about the American District
Company, knowing that my fathers estate
and my own family were the largest holders
| OF the stock. The company was very pros
| porous, and seemed to have promising
| future. Mr.. johnson was fully and accu-
rately Informed of the condition of the
company. He made, as l was in
| formed, a considerable investment
| in its stock. In October, 1880.
one Of the piratical Wall street papers,
which was supposed to be inspired by
| Gould, commenced a villainous attack on
| the company, which it kept up from dav to
day for several weeks. The purpose of the
attack was supposed to be to depress the
price OF the stock, In order that Mr.. Gould
might buy up controlling interest at panic
prices, and thus attach 1t to his telegraph
interests. He was then at the head of the
American Union, fighting the We rn
Union. We were attached to the Westera
Union, occupying the same offices with
that company at various points about
the city, and having contracts
with 1t for the receipt and
delivery Of messages. When this
q
consultation OF prominent holders OF the
stock resulted in a determination to protect
themselves and their properly against the
fOray, and accordingly 1t was agreed that
we should purchase majority of The stock.
l was selected by the other stockholders.
Mr.. johnson among others, to act for them
In making such purchase, andI did make it.
Mr.. Gould's friends, finding their game
blocked, afterward changed their tactics
and established a competing system called
the Mutual District Telegraph Company,
which, OF course, seriously injured tie old
company. The transaction which was in
trusted to me was, however, terminated
without loss to the stockholders who had
formed the combination, and each person,
Mr.. johnson with the rest, received back
the sum invested, with a small profit.
"Now for the mysterious blind pool.'
You remember the consolidation of the
Western Union with the American Union.
AT that time our company was a sort of ad-
junct, as l have said, to the Western Union.
The Mutual District bore a similar relation
to the American Union. The consolidation
Of the larger companies left the smaller ones
In doubtful position, and fighting each
other. 1t was, Of course, desirable to end
this state of things Gould and his friends
had taken control Of the companY-the
Western Union-with which our company
had been and then was connected. OF
course they could put their foot on our
necks. Negotiations were had with a view
to consolidate the smaller companies, and
to that end combination was proposed for
the purchase of the stock of the conpa-
MES. These gentlemen who had come into
the control OF the Western Union Company
were asked to interest themselves. They
subscribed for several thousand shares, but
the subscription was never completed,
owing TO the failure of negotiations looking
to consolidation. Not a dollar of money
was paid nor a share of stock purchased, as
Mr.. Gould well knows. And this is all there
is of the blind pool of which the Gould
papers endeavor TO make so much.
81 must say fail to see any turpitude or
impropriety in any Of these transactions. l
endeavOred to protect the company of
which l was a director, and In which [ and
my family were large owners. 1t seems to
me | had right 10 do so. Nor can any one
truthfnllY say 1 ever advised him to buy
American District or any other stock when
was myself selling"
COneV IsIan d Races.
BRIGHTON BEACH, August 29.-There was