Problem is that after establishing the telnet session, the other side of the connection is just a login shell waiting for input. You could use that shell to dump the file and store the input locally, but there is a problem.

System messages can be sent to a terminal session by the server, which would then show up in the middle of your file. I'm talking about things like 'You have new mail' or 'System will go down for maintenance' and the such.

If your workstation is a Unix machine, I would suggest buying your sysadmin a pizza and asking him to allow you to connect to your homedir using nfs. If it's a windows machine, do the same after installing an nfs-client for Windows.

NFS allows you to 'mount' the filesystem on your local machine, making it 'look' local to all your applications. After doing that you could access the file in any way you would want...