New-York tribune., 1920-10-14
Judson's Bond
Deals Ended as
Inquiry Began
Trader Made 500, 600 Prof
it on 10 Transactions, but
Memory Fails on De-
tails of Checks Issued
Travis ON Stand To-day
Witness Denies He Knew Sc
.curities Could BE Bought
at Less Than Price Paid

Albert L. Judson, bond trader extraor-
dinary. admitted to Assistant District
Attorney Pecora yesterday that the
bond purchases made through him by
the State Comptroller's Office in AL
bany stopped suddenly last June This
uas the time when the investigation
was launched which finally eliminated
in the John Doe proceedings now going
on before Chief Justice Kernochan.
Judson, whose profits on the sale Of
approximately $4,000, 900 worth of Sc
curities to Comptroller Eugene M.
Travis are said to be almost ST 900 900,
was recalled to the stand yesterday.
He was questioned about ten bond
transactions carried out for the state in
which his name appeared as the pur-
chasing agent.
The witness testified on Monday that
he had figured in seventeen transac-
tions in all, but in seven of these,
which were made through the broker
i
name was concealed. although his
nrofts as a result of them amounted to
something in excess of 100000.
Yesterdays testimony indicated that
the net gain for Judson in the ten
deals he put through without the as
sistance Of Fanshawe & Co., and in
which he appeared as the ".middleman"
between the state and the bond mar
ket, would run up to another 100000.
Although his attitude while on the
stand yesterday reflected the same
phlegmatc calm that characterized his
demeanor on Monday, there were two
occasions when Mr.. Pecora's questions
penetrated his polite Indifference and
elected Emphatic replies.
Mr.. Pecora drew an explosive "No!"
from the witness when he asked him
if he wasn't aware when buying GER
tain securities for the Comptroller's
office that they could have been ac-
ouired from Herrick e. Bennett at
lower rate than from the National City
Company, from whom he had bought
them. Mr.. Judson's reply of "No."
was so sharp that it awakened many
people in the courtroom who had been
lulled to sleep by the monotony Of the
proceedings.
Another question that broke through
the polished dignity of the witness was
put by Mr.. Pecora just before the in
vestigation was adjourned late in the
afternoon. The prosecutor suddenly
switched his line of questioning and
asked the witness whether he had ever
paid to William Barnes jr.. proprietor
Of The Albany Evening Journal, in
which Judson is a stockholder. any part
Of the profits that he had derived from
the state bond sales.
Judson answered "Never." in such
an emphatic manner that his dark blue
eyeglasses slipped down his nose.
Justice Kernochan appeared 70 be
displeased with this question ana mild
ly reproved Mr.. Pecora, saying that
queries Of this sort should not be asked
unless there was some specific lnforma-
ton to back them up.
"0therwise," added the justice, "you
might start with Governor Smith and
ask the same question about everybody
down the line to the coroners, if we
had any coroners these days"
Judson's memory concerning the de-
tails of the ten bond sales was as hazy
and uncertain as it was on Monday,
when he was questioned about the
Fanshawe operations. He could re-
call few details concerning them, and
In many instances could not remember
the transactions themselves until Mr..
!. u,
ing from the records of the banks
through which the sales were cleared
Then the witness invariably would
say: 'If you have it there on the
records it must be so, Mr. Pecora."
1t was brought out yesterday that in
November, 1918, in letter written on
the stationary of the Comptroller's Of
iilce and stamped with the name of
Eugene NJ. Travis, beneath which ap-
peared per James A. WENDELL Deputy
Comptroller" Judson was authorized
lc purchase bonds for the sinking funds
III the amount of $3,250,00O. Judson
testified that he bought this block Of
securities for the state at 95es and re-
-old them to the Comptroller's Office
& 995s.
The witness was asked whether he
sad not represented himself to be an
A4~Su d9eUL Oh lNc OON plTOlleI,
Ir. Peeora contending that in so doing
1e had induced the Guaranty Trust
oompany and other firms through
which ne had made purchases to carry
'he bonds without margin or security
a. the coupon rate. Judson denied this
ana declared that he had never repre-
s"ented himself as an agent of the
Comptroller.
Judson asked permission of the court
70 explain some of mrs apparently large
profits. "ln all of the transactions
nnahdled by William S. Fanshawe &
Uo,, he said, "the supposedly large
psohts were due to the fact that the
ponds were bought on an advancing
market and we're sold to the Comp
roller at fair price. They could
nave been sold to any one in the .coun-
~ at the same price. In addition to
ms there is an affidavit signed by the
seiier in each sale to the effect that
sne prices are fair and reasonable. Ny
purpose in making this statement is
" remove the impression that the
Fronts, which seem to be large. were
uue to any other factor than an ad-
Sanelng, market"
y" !" nen Judson was excused yesterday
Nr fecora announced that Comptrol-
Ier travis would take the stand to-day.
'ueson IS to be recalled later.
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