New-York tribune., 1920-12-30
Comptroller, His Deputy
and Broker Accused of
Grand Larceny L and
Fraud in Bond Deals
$4,000 Bail Each
Quickly Provided
Grand Jury Strongly
Urges Law to Curb Lax
Methods of Spending

The October additional grand jury
Yesterday returned individual indict-
ments, each consisting Of four
counts, against State Comptroller
Eugene NJ. Travis, Comptroller
elect James A. Wendell and Albert
1. Judson, broker. The defendants
are charged with grand larceny of
state funds and fraudulent auditing
Of state accounts.
The indictments were handed up
90 Judge John F. Mcintyre, in Gen
eral Sessions, where the three men
we're arraigned and, through counsel,
pleaded not guilty. Bail Of $4,000
in each case was quickly furnished
and their attorneys were given until
Friday to make necessary motions or
new pleas.
In addition to the indictments, the
grano jury handed Judge Mcintyre a
p1esentment in which the attention Of
the new Legislature and Governor
elect Miller is called to the extreme
laxity" of the methods by which the
sinking and trust funds Of the state
have been invested aud suitable legis-
lation" to correct this condition is
earnestly recommended" The work
Of Assistant District Attorney Ferdi-
nand Pecora IN presenting the case is
also praised by the grand jury in the
presentment.
Two Alleged Transactions
he indictments are based On two
81. ged criminal financial transactions.
0e vas the famous moral obligation
stle" in which it is alleged Comp
-r'ller Travis paid Judson S10O,65O of
State money for municipal bonds in
aEcess Of their market value. The
Gtaer transaction was the sale of New
Y--k ty bonds by Judson TO Travis, in
rhis case said 70 be fer $4,000 in ex-
cess Of their market value.
Alter their bail bonds were signed
,! usge Mcintyre, who assured Travis
thst Il am sorry this occasion has
'Esen and you may be sure of fair
risl" the indicted men were asked
'hether they had any comment to
make.
Wendell's response was the GUS
;omary nothing to say" and Comp
'roller Travis replied that ne was "a
man of few words"
i am innocent and time will show
tnat am innocent he added.
Judson, however, said in an amused
Il lr4, D.,
Tar nowadays. aren't they? Almost as
popular as appendicitis was few wears
ago }"
Travis retires from Office tomorrow
and his former assistant, Wendell. be-
comes Comptroller Saturday.
Inc grand jury's investigation, which
lasted approximately five weeks. grew
out OF persistent rumors of misman-
sgement IN the purchase of bonds by
comptroller Travis for the state sink
ing 1und. These rumors assumed such
proportions that in August District
attorney Edward Swami appointed Mr..
recora 70 begin an inquiry, which re-
suited IN John Doe investigation be-
iore Chief Justice Frederic Kernochan
OF Special Sessions.
Profits Put at sl,00O,000
The John Doe inquiry developed SEN
rational testimony as to the methods
Of investing s31o00,O 900 of state funds
IN Nv York c t. municipal bonds,
principally through Judson, whose
Pr we're sad 10 have been more
man $1,000 900 during the Travis ad-
minstration.
Assistant District Attorney Pecora
brought cut testimony tending 70 show
shat virtually the entire e3l 100000 in
bonds were bought rom a small group
o. New York brokers at prices usually
IN excess Of those quoted by other
nTohers. This group consisted Of Will
George b. Gibbons and Colonel VIII