Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-29
SMITH CO. PETITION
REFUSAL IS ASKED
Government Requests Court
to Sustain Subpuenas Call
ing for Records.

Criticizing activities of the r. H.
Smith Co., Washington investment firm,
the Government today asked Justice
Peyton Gordon to deny a petition filed
recently by attorneys for the investment
company to quash grand jury subpoenas
to compel Smith Co. representatives to
place the records and accounts Of >the
firm at the disposal of the Jury.
The Governments request was based
on the report of a secret Investigation
OF the activities of the r. H. Smith Co.,
conducted by Nugent Dodds, special as
sistant to the Attorney General. Dodds'
investigation probed the affairs of the
company since its inception, and his
report criticized severely the alleged ac-
tivitieS of some of the firms officials.
The revelations contained in the report,
which allege widespread manipulations
of securities and questionable practices
of officials, were made public only as a
result of the company's refusal to an
swer subpoenas to produce its records
before the grand jury.
Prominent Men Involved.
The report involves the names of sew
eral men of national prominence as
having been connected in various ways
with the r. H. Smith Co. and other
corporations whose activities are dis
cussed in detail by Dodds.
BY way of introduction, the report
says, that "all the books, papers, re-
ports and so forth, designated in the
grand jurys subpoenas are required to
be produced for the examination of the
grand jury, before which is now pend
ing an investigation in respect to al
legged criminal conduct of divers per-
sons and corporations in connection
with the affairs of the F. H. Smith Co.,
and other corporations and concerning
the conduct of the following named
persons in respect to their dealings with
the above named corporations, and with
other persons and corporations:
Representative Frederick N. zilh-
man, Daniel r. Crissenger, former con-
troller Of the currency, Treasury De-
partment; G. Bryan Pitts, Samuel j.
Henry, c. Ebert Anadale, Henry G.
Maddux, John H. Edwards, jr., and
others
When the affairs of the F. H. Smith
Co. were first brought to the attention
of the grand jury, that body asked for
the books containing the records and
accounts of the company. Subpoenas
were issued to compel the company to
furnish these records.
On October %, attorneys for the
company filed petition to quash the
subpoenas, alleging that the grand jury
in John Doe proceeding had no right
to force the company to surrender pos
session of books and records needed in
the conduct of its business.
The following are named with the F.
H. Smith Co. as being among the cor
porations Investigated by the Depart
ment of Justice:
The F. H. Smith Investment Co., the
Smith Selling Co., the F. H. Smith Co.
of Virginia. the Columbia Trustee &
Registrar Corporation and the Union
Trustee Co.
After reviewing the history Of the F.
H. Smith Co., which the report says
was established in 1873 and which
has subsequently undergone changes.
Dodd's report sets forth the following
charges:
Citations Are Made.
Evidence gathered by the Govern
ment conflicts with representations OF
the company as to its earnings.
That high officers of the company
have demanded gratuities running as
high as $4,000 in return for accept
ing bids on contracts involving prop
critics financed by the company.
That after the company was refused
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