Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-13
RECEIVER IS ASKED
FOR SMITH CO. AND
INDICTED OFFICERS
Four BondhoIderS Also Ask
Accounting and Injunction
in Supreme Court.
DEMANDS REPAYMENT
OF $4,000 BY ATTORNEY
Representative Zihlman and D. r.
Crissinger Will Be Arraigned
Tomorrow.

Application was made today to the
District Supreme Court for the ap-
pointment of a receiver for the F. H.
Smith Co., real estate operators, and
for Frederick N. Zihlman, Representa-
tive from Maryland Daniel r. Cris-
singer, former controller of the cur
rency; G. Bryan Pitts, chairman of the
board of the Smith company, and Sam
uel ]. Henry, president Of the corpora
ton. The four men were indicted last
Tuesday in the District Supreme Court
on charges of using the mails to de-
fraud in connection with the operations
Of the Smith company.
Representative zihlman will be ar
raigned tomorrow before Justice VIII
liam Hitz in Criminal Division on the
indictment.
With Zihlman will also be arraigned
Crissenger, Pitts, Henry, Elbert Anadale
and John H. Edwards, jr., vice presl-
dents of the Smith Co, and Henry =;
NTaddux of the Hamilton HoteI 20. All
are named jointly with zlhLnan on VHe
charge of misuse of the mails.
Nugent Dodds, special assistant to
the Attorney General, and United
States Attorney Leo A. Rover, will ask
that a date be set for the trial. The
defendants are expected to enter pleas
of not guilty.
The suit today is brought by four
bondholders of the company, AnoreW
B. Caldwell, Grace Caldwell, 34Ol SIX
teenth street, Mary H. Farmer, l2o4
Columbia road, and Eva B. Middleton,
1919 Oak street, through Attorney w.
Gwynn Gardiner on behalf OF them
selves and other bondholders as may
ioin in the suit. Accounting and. IN
junction are also asked.
ALLEGATION is made that an investor
who had bought $40, 1000 worth OF
bonds on a building in Philadelpnla
from the Smith Co. consulted Repre-
sentative Frederick N. Zihlman more
than ii months ago and was told, II Is
stated. bv him that the bonds were
we'll secured and that he would adVlSe
the investor to keep the bonds. Ilhi-
mar, Is alleged to have represented 70
fhe investor that he had "conSiderapIe
of the bonds and would purchaSe, more
az them had he sufficient funds
$4,000 Payment Asked.
THE court is also asked to require r.
Golden Donaldson, former attorney IoE
fhe p. H. Smith Co. and now preSioenC
If the Commercial National Bank, 10
nav tn the company the sum OF $35,UUO
and other sums said to have peen re-
ceived by him from the Boyle-hoperC..
son Co. for obtaining contracts 70 elSS' SSs
Buildings being let by the Snltn 70
TThe statement is made that OonaIo-
.o1 was at the time receiving re-
4siner of $500 monthly as attorney lor
fhe smith Co., and the request Is mace
that he be required to repay the re-
Named as defendants in the suit are
pitts Henry. Crissinger, Zihlman, DON
aldson, the F. H. Smith Co, the SnlltH
Selling Co. and Henry G. Maddux.
Andrew B. Caldwell tells the courS
that he has S14,500 worth OF ponoS say al;o
al 600 In preferred stock. Grace CaIo-
veil holds $4,5O0 worth of bonds ana
STOo in preferred stock Mary II. Farm
er has 50 900 worth of preferred stock
and Eva Middleton holds bond OF
$500.
Bonds in Three Series. 70.
The bonds held by the plaintiffs are
said to be secured on property known
as the Fairfax, Forty-third and Locust
streets, Philadelphia, which, IL
claimed, was purchased by corporation
formed by the Smith officers, or some
of them, for $167, 500, on which they
erected a building said to nave cost
Sl187 709, which would make total
cost of 81 ,354 ,509. On the strength OF
this security, it is alleged, the company
placed mortgages totaling S3,5OO,0OO and
issued bonds in three series, one for ST.
3OO, 600, another for $l,725,000 and a
third for $475,0
Allegation is made that some OF the
bonds of the last-named issue were sold
by the F. H Smith Co. through persons
selected by them to the public as first
mortgage bonds and we'll secured"
The court is advised that the F. II.
Smith Co., or the Smith Selling Co, or
corporations formed, owned and con-
troiled by the defendants, now own IN
Washington the Jefferson Hotel, HaInn-
ton Hotel, Cavalier Apartments, Cor
coran Courts, Investment Building,
smith Building, Tivoli Apartments
Fairfax Apartments, Vermont BUILDING
Stanley Arms and the New Amsterdam,
from all of which collections are being
made by agents Of the defendants Ss,6g OF
re7tals and these moneys are oelng
se1e outside the Jurisdiction, because
the main Office of the company has been
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