The evening world., 1920-10-07
STATE WAS BLED
OF S8OD,OOOBY
SALES OF BONDS
Van 1uyl, of Trust Co.. Didn't
. Know They Wee Being
Purchased for Travis.

George G. Van Tuyi formerly state
Superintendent OF Banks and until
last January. President OF the Metro
politan Trust Company. to-day testi-
fled at the John Doe investigation
that he did not know tho millions in
bonds his company was carrying for
w S. Fanshawo & Co. without any
margin. we're to be sold 70 Comptroi-
Ter Eugene Travis for the states
sinking fund
Mr.. Van Tuyl said thai for thirty
years he had known A. L. Judson,
who. witnesses have testified made
moro than 100000 profits inNhis sales
through Fanshawo & co. and other
brokers to the state. They both came
from = Albany, Mr. Van Tuyl ex-
planned, and both live at the Hotel
Plaza.
Records Of the Trust Company.
showing that all the loans on the
Fanshawe account were paid by war
rants from the Comptroller. were
Identified by Mr. Van Tuyl. but he
said he had not noticed 1t at the time.
by carrying tho Fanshawe account
| without margin and at the coupon
rate that being the bond interest,"
Mr. Van Tuyl said his bank was do
ing business profltably. IN view OF
the money market conditions then
existing.
Questioned by Assistant District Al.
| torney Pecora and Chief Justice Ker.
nochan OF Special Sessions, who IS sit
ting as a Magistrate In tho inquiry, Mr.
Van Tuy said he regarded Judson "a,
a broker or agent FOR the Comptrollei
in transactions cleared by the Metro.
poNtan Trust Company. The company
acted Tor both parties, he explained
and was trying 20 please tho COMFY
troler's Office The company hell
SI5OO.OOO Of state funds -on deposit
and such accounts are eagerly sought
by banks the witness said.
I'VE acted for both Sides" Mr.. Var
ruyl said I'VE accepted bonds fo
Judson from bond houses and paid 70
them. We received tho warrant from
the Comptroller for Judson and turne,
the bonds over 20 the Comptroller
account"
Mr.. Van Tuyl said the large profit
for Iudson's account aCCruing iron
deals with tho Comptroller had no
lappcarCd 10 his extraordinary for on
Pacing as a broker.
| "Details ~ the clcaranccs wcrc han
died by various departments I'm thl
Trust Company. which might ac
count for failing 10 notice the larg,
profits involved.
a letter signed By j. A. Wendell
Deputy Comptroller. notifying Mr.
Van Tuyl that Judson had been an
/ thOrizpd to buy certain bonds ful
the State. wasaput in evidence. or
the strength Of this letter. Mr.. Var
Tuyl said mo wrote an assurance {,
the Guaranty Trust Company thai
the Metropolitan Trust Company
would take over, for the Comptroller
So. 10000 IN bonds bought from IN,
Guaranty by Judson.
The Metropolitan Trust loaned
$4,000 20 Judson IN December, 1916. on
$50 900 par value OF city bonds and tOl
shares OF tho Albany Journal. Mr.
Van Tuyl testified. William Barnes
Rcpubl lean Boss, Is the owner or IN,
Journal Although Judson withdrew
his large profits from the Motropoli,
tan Trust Company almost as rapidly
as he made them, and the company
was not compensated for tNo clearing
OF the deals, no demand FOR repay
mcnt of the sac 500 loan was made
Mr. Van Tuyl testified I'VE try q
accommodate good customers" he cx,
planned.