New-York tribune., 1920-10-12

asked if ne recalled sale of S1,O6t,
April, 1916, Judsor replied: Il do not
have had very poor memory all
my life"
us that why you never kept bust
ness accounts or records-because you
preferred to trust to poor memory 2"
snapped Mr.. Pecora.
The profits derived by Judson and
fanshawe in this deal amounted to
S32,645.4S, Of which $16,8O4.SO went to
J,udson, and S15,840.6S to the brokers.
me witness said that from the figures
ne would imagine it was a joint ac-
count between himself and Fanshawe,
uithough ne had no idea why the profit
was split the way it was. Prior to this
Tor Judson in which the profit to the
ponc trader had been S3,241.76, while
mat derived by Fanshawe, according
10 'he records, was only $4S. 5. The
WIrhesS could not explain the great
elfference in the profits received bv
Ohe broker in the two deals
Mr. Pecora refreshed ,Iudson's mem
0ory concern'ng bond sale made in
way, 1910 IN which the profit, amount
ing ing to S24s0l2.90, enriched him bv
q@o,oTI'lo. or this amount Judson ad-
ml'ted receiving $4,000 IN cash, al
1nough ne could not recall what he had
OF the transactions did he split his
profits with any one. He said that
ne kept most of his money in safe
deposit boxes of the Mercantile Trust
company and the Metropolitan Trust.
On May, 23, 1916, ,tudson sold 10 the
state block Of bonds on uhich his
proht amounted to S14S.2s2 90, while
that of fanshawc was S22 ,eO7. The
WINES admitted that he collected
SlZ3, ,Z92.9S of his profit in currency
tne next day. He deposited $4,000
OF TINS IN deposit box in the Metro
politan Trust Company and it re-
mained there for a year, he said. He
SAID that no person other than himself
shared in this profit.
Witness Tells of Deals
Judson was asked to give his own
version Of the negotiations carried on
between himself and the State Comp
troller's office which led up to the sale
of November 1s, 1917, when S2.0l3O00
were disposed Of to the state, about
one year after Fanshawe said thev
we're to be sold. In telling of his ac-
invites IN arranging for this sale the
witness displayed an intimate knowl-
edge of state finances and the printed
data ISSUED IN connection with them bv
the Comptroller each month. He said
he usually was able to tell when the
Comptroller would have money on hand
for bond investm ents
Judson said that in some cases he
discussed prospective bond sales with
W endellS but in most instances the ar
rangements were made with Comptrol-
ler Travis personally. He admitted
that there had been occasions when
bonds were sold to the state at more
than the quoted market figure.
The questioning about this particular
block of bonds brought up the subject
OF wash sales made by interested
parties in order to bring about the
quotation Of certain prices on the Stock
Exchange. The witness was asked
whether he had given to the firm of
Folsom & Adams orders to buy bonds
at certain prices just before making
sales to the state.
"Wasn't it your intention to make
certain prices on issues you intended
selling later to the State Comptroller's
Office" asked Mr.. Pecora
Judson replied that such might be
the case, but he was not certain about
Deputy Comptroller Wendell waived
and testified during the
modning session yesterday that Comp
troller Travis passed personally on all
offers OF bonds made to the state By
dealers and that in no instance had he
been consulted by his chief before such
investments were made He said he
had known Judson for Twenty-Five
years and that the latter had been sell
ing bonds to the state since 1906.