Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-11
House Members Feel Custer
Action Would Be Pre-
judging of Case.
SMITH co. OFFICIALS
POST BAIL OF $4,000
Dodds Indicates New Probe of
Business Activities Will Be
Launched Within Week.

Representative Frederick N. Zihlman
of Maryland is not going to be ousted
from his Craftsmanship of the House
District committee by the Republican
committee on committees as a result
of his indictment yesterday by the
grand jury on a charge of using the
mails to defraud This became known
today, and at the same time Mr.. zihl-
man repeated that he is not going to
resign.
Members of the committee on COM
mittees individually feel that it would
in sense be prejudging the case
against their colleague to take any ac-
ton against him until the charge
against him has been fairly tried in
due process of law, it was stated today.
Mr.. zihlman was indicted yesterday
with Daniel r. CriSsenger, former con-
troller of the currency, and five other
officials of the F. H. Smith Co.. the
substance of the charge against them
being that they used the United States
mails to circulate false advertisements
as to the value of their securities. The
indictment alleged an intent to defraud.
Zihlman Was on Board.
All seven of the accused men ap-
peared before the clerk Of the court
today and posted $4,000 bond each on
the charge.
Mr.. zihlman was connected with the
Smith company as a member OF its
board of directors. He also is alleged
to have held large blocks of stock IN
the concern. He said he was not con-
scious of any wrongdoing on the part
of the company while he was connected
with Il and that he Is confident of
vindication -- -s@
The attitude of the Republican lead
ers and a majority of Mr.. Zihlman's
colleagues In the House is to maintain
confidence in his integrity until charges
of wrongdoing have been proved or dis
proved in court.
While some members of the House feel
that, in the interests of good legisla-
ton for the District, a change should
be made on the District committee and
while some other members of that COM
mittee feel that they should not be
called upon to serve under a chairman
who has been indicted, there is a ma
jority sentiment that it would be un-
just for his House colleagues to take
any action at this time.
Counsel Not Yet Named.
Representative Zihlman told a Star
reporter that he is standing pat on a
statement made yesterday. He has no
present intention of resigning the chair
manship or quitting the District COM
mittee pending judicial action on the
charges against him.
Representative Zihlman has not yet
selected his attorney to represent him
in his defense against the grand jury
indictment.
At the same time bond was being
posted, Nugent Dodds, special as
sistant to the Attorney General,
announced that "all of the matters
in connection with our investigation OF
the company have not been disposed of
by any means. We expect to start other
investigations of their business activities
within the next few days"
Mr.. Zihlman, who recently resigned
as director of the company, was the
first to post bond. He appeared at the
office of the clerk of the District Su-
preme Court at 9 o'clock this morning
Milton S. Kronheim acting as his
Continued on Page 2, Column %