New-York tribune., 1920-10-15
Travis Defends
Bond Deals and
Backs Judson
Comptroller Takes Full Re-
sponsibility; Says He Fol-
lowed Predecessors in En-
ploying Security Trader
Prices Called Lowest
Only 5000 ofS8, 900, 900
Worth of Stocks Taken
From 40 Outside Bidders

State Comptroller Eugene M. Travis.
after signing a waiver of immunitv
took the stand yesterday in the John
Doe investigation being conducted be-
tore Justice Kernochan in an effort to
deteNmne whether a crime has been
committed IN the purchase by the
Comntroller's Office of approyimatolv
S4o,0OO,000 worth of bonds in the last
five and half years.
Mr. Travis defended all the invest
ments he had made for the state and
declared that he did not believe that
any of the large blocks of bonds he
bought for the various sinking funds
we're acquired at a price in excess of
their market value. He assumed full
responsibility for all of the bond
transactions engaged in by his office
and insisted that the methods en-
pioyed in making the investments were
'hoSe esta 6Ilshed by his predecessors.
-Martin n. Glynn, Clark Williams.
William Gaus and William Sommcr.
The Comptroller said that he did not
follow these methods simply because
they were handed down to him as es-
tablishcd precedcnts but because, after
much study and investigation. he
reached the conclusion that they were
the most efficient and expedient.
Judson's Prices Investigated
While Mr.. Traviss memory was
faulty concerning transactions which
occurred prior to 1917, he declared that
ne had carefully investigated every
block of bonds offered to him by AL
bert l.. Judson, who is alleged to have
made profit of almost 100000 in
sales to The state, and had found that
l>1yT
than those asked for similar securities
by other Dealers
The witness also called attention to
the fact that his predecessors in Office
had made large purchases through Jud :
son, and gave this as one reason for
the confidence he placed in him.
Assistant District Attorney Fcrdi-
nand Pecora, who is conducting the
inquiry, called the Comptroller's at
tentlon to block of bonds to the par
value of S3,500000, which were pur-
chased for the sinking funds in De-
ccmber, 1919. In describing this in
vcstment, the witness said:
IL remember the purchase very we'll.
thought it was a splendid investment,
and do still. If had gone out on
the street and advertised for these Sc
curities they would have cost me 5 or
6 points more than Judson asked"
In speaking of another purchase
through Judson Mr.. Travis said:
"Judson came to me and offered me
these bonds. was exceedingly busy
at the time with the income tax ar
rangements, but the offer appealed to
me as good investment, and | took
sufficient time to look up the market
quotations and study the proposition
talked the matter over with persons
familiar with the bond market, and
when other statesmen came to see me
got their figures on the same amount
of securities. II every case their price
was higher than Judson's, SO naturally
l bought of Judson. The purchase fig
ure at which the state acquired those
securities was arrived at as result
of my own judgment"
The witness said that in 1916 the
representatives of large financial
paper in New York had called on him
in Albany and complained that he was
paying too much for bonds purchased
through certain individuals and firms.
The one firm that the Comptroller was
able to remember yesterday was that
of Gibbons G. Co., Of Wall Street, the
two members Of which have already
been witnesses in the present inquiry.
In explaining the intimate knowledge
that Judson has displayed in state
finances Mr. Travis declared that TINS
information cauld have been acquired
by any person who knew how to get it.
He said that he had issued q monthly
bulletin dealing at great length with
the financial condition of the state and
that most of the knowledge Judson had
was acquired through study of this
paper Mr.. Travis said that publication
of the monthly bulletin was his own
idea, because he believed that the
people had right to hrst-hand nfor-
nation concerning the finances of the
state. The paper was discontinued re-
Gently because Of the expens attached
to getting it out.
In replying to Mr.. Pecora's questions,
Mr.. Travis said that he did this by
reading The Wall Street Journal, The
New York Tribune and The Times. He
said he also studied other financial
Continued on pnQe slxl