Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-15
Attorney Says He Has Been
Informed Funds Are
Being Moved.
MARYLAND BANKS MAY
REOPEN IN FEW DAYS
Status Undetermined, But Feeling
Prevails Depositors Will Not Lose.
Receiver Considered.

Acting on information which he said
he had received that money and securi-
ties of the F. H. Smith Co. were being
removed from the city, w. Gwinn
Gardiner, who filed suit Friday asking
for the appointment of receiver for
the company, yesterday filed formal
motion to prevent the defendants from
removing anything of value" from this
jurisdiction.
When the motion to restrain the off,
Gals of the company from removing
money or securities from the city was
filed, Deputy United States Marshal
John j. Clarkson was instructed to
serve notice of the action on the officers
of the company named in the receiver
ship proceedings.
So far as could be learned last night,
he had not located any of the officials,
but had called on Wilton j. Lambert,
attorney for the officials of the COM
pany, who are under indictment on a
charge OF using the mails to defraud.
Lambert refused to accept service.
Lambert Explains Action.
IT did not accept service" Mr.. Lam
bert said, because lawyer cannot be
served in any suit until his appearance
has been entered in the case. The mere
fact that am representing certain OH
Gals of the Smith Co. in one case
doesn't mean that represent them in
this one, and any conclusions to that
effect are unwarranted."
In filing his motion yesterday Gardi-
ner served notice on the company that
he will ask Justice Alfred A. Wheat
next Wednesday to consider the question
of the appointment of receiver for
the properties under the Smith Co.
management.
The application for receivership
named the F. H. Smith Co., Frederick
NJ Zihlman, chairman of the House Dis
trict committee; Daniel r. Crissinger,
former controller of the currency: c..
Bryan Pitts. chairman of the directorate
of the Smith company; Samuel j.
Henry, president of the company; r.
Golden Donaldson, former attorney for
the company; the Smith Selling Co.
and Henry G. Maddux as defendants.
BondhOlders Brought Suit.
The suit was brought by four bond
holders in the company, who allege
that an investor who had purchased
bonds on building in Philadelphia
from the Smith company consulted Mr..
Zihlman and was told, it is stated, by
him. that the bonds were well secured.
Rudolph Yeatman, who is acting with
Mr.. Lambert as counsel for the defend
ants, said he doubted If the notice of
the filing of the motion yesterday by
Mr.. Gardiner had any legal effect.
The Smith Co., which moved It's
headquarters from this city to New
York before charges were brought
against the company and its officials
by the grand jury, apparently has
abandoned the branch Office which it
tanned here. A notice on the door of
the company's building in the 800 block
of Fifteenth street says:
This branch Office of the F. H. Smith
Co. is closed. Address all communica-
tons and present bonds and coupons
payable at the Office of the F.. H. Smith
Co. to the general Offices of that COM
pany at 285 Madison avenue, New York
City"
Little Trading Reported.
There is very little" trading in first
mortgages On properties financed by
the Smith Co., it was reported yester-
day by Mehlman & Co., investment
brokerage concern here, handling un-
| listed stocks and bonds, which sent out
to investors cards advertising for the
purchase or sale of Smith Co. secur-
tiles.
The highest current bid for Smith
Co. stock, having par value of 500
was reported to be $40, and no reports
were available Of any stockholders SELL
| ing at that bid
More trading interest was reported
in first mortgage bonds secured BY
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