New-York tribune., 1920-10-08
Travis S Bond
Trader Too It'll
To BE Witness
Judson May Bc Able to Testi-
Ay Tomorrow at Inquiry
Into Deals Which Brought
Million Gain, 1t Is Said
Profit Split Is Indicated
G. C. Van Tuyl Jr., Former
Superintendent of Banks,
Tells CT Many Purchases

tRkS VI A'hetsE tAt SsAStS0
Albert L. Judson, the bond agent of
the State Comptrollers Office who is
alleged to have made approximately
$1,000 900 in the purchase Of about
$3O,000,O00 worth of securities for the
state, was to have been the star wit
ness yesterday in the John Doe in
vcstigation into the Comptroller's bond
investments. The inquiry by District
Attorney Swami is being held before
Chief Justice Kernochan in Part vi of
General Sessions.
Shortly before the Investigation was
reopcncd Mr.. Judsons doctor COM
municated with Assistant District At
torney Pecoro, who is questioning wit
nesses. The physician said that the
bond trader was i'll and would have to
undergo an operation. ludson prob
ably viii be able to testify tomorrow,
the doctor believed.
Judson, who has an Office at so East
Forty Street and lives in the
Hotel Plaza, is under subpoena to ap-
pear with check stubs and complete
records of mis- activities as an expert
purchaser of securities for the State
Comptrolcr's office From the stubs
the District Attorney hopes to be able
to reveal who shared IN the alleged
huge profits which the bond broker
is supposed to have derived from his
financial operations for the state.
Tba+ !1HcOO'c rrOfitc yyarn cnlit Sow
eral ways was indicated yesterday by
the testimony of George c. Van Tuyl
jr, former Superintendent of Banks
and at one time president of the Metro
politan Trust Company, the bank that
cleared q major portion of the large
purchases of the securities.
Van Tuyl's Memory Faulty
The former head of the Metropolitan
Trust was troubled with faulty mem
ory in answering many Of Mr.. Pecoro's
questions, but his testimony showed
that he had dealt with Judson in the
bond purchase under direct and written
instructions from the State Comptrol-
ler's Office He produced letter
signed by Deputy State Comptroller
James A. Wendell, acting for Comptrol
Ter Eugene Travis, giving Van Tuyl
authority to carry New York City
which were to be bought by the Comp
troller's office through the Metropoli-
tan Trust Company on January Is,
1919. The letter asserted that the
bonds were to be purchased under any
arrangements that Judson saw fit to
make with the Trust Company.
The bond transactions disclosed yes
terday and Judson's checking out of
the profits derived from them, showed
that on August l. 1917, his commits
sion on one deal for the state amounted
had checked ont n POI.
On October 3. 1917. he was credited
with a profit of S36s870, and the rec
ords show that in the course Of the
following week he had checked out
all but about $4,000 of this sum. On
January 10, 1918, Judson received a
profit of S77,462, and by january IT
had checked out S63,262. On June l,
1918, he was credited with & profit of
S5S,33G, and by June had checked
out $71,802
ton indicated that profit was made
by Judson on December IT, 1919, of
S7S,240, and that on the next day he
checked out $74,3 1865. In speaking of
these transactions Mr.. Van Tuy said
that the bank had regarded them as
confidential matters.
The principal witness in the after
noon session of The investigation was
Colonel Thomas Fairservs, member
Of the firm of George B. Gibbons &
Co., bond brokers of 40 Wall Street.
Many Bond Sales Verified
Colonel Fairservis, who signed
waiver Of immunity before taking the
stand, testified to number of bond
SOL 4 lvrl Ii Cow, To ho
Comptrollers office. The total amount
of the transactions was several mil
lions of dollars, and the witness de-
clared that in most cases the negotia-
tions were made by himself and the
State Comptroller or one Of the lat
ter's deputies.
While Albert L. Judson has been de-
scribed in the course Of the invest ga
tion as one Of the shrewdest bond
said yesterday that Comptroller Travis
was no amateur at the business. He
declared that in selling the Comptroller
bonds he usually raised the price some
what because he knew that "Mr. Travis
would argue me down."
When Mr.. Pecoro questioned the wit
ness as to the security behind the
bonds Colonel Fairservis said that the
bonds had to be satisfactory or Comp
troller Travis would not touch them.
"Ihe Comptroller always tried to
poke hole in the securities that were
offered to him for purchase" said the
witness.
Colonel Fairservis probably will be
recalled to the stand to-day to testify
to other transactions between his firm
and the state. Gibbons & Co. are being
represented in the investigation bv
Colonel William Rand, Special Deputy