Evening star., 1929-12-12
SMITH CO. RECORDS
WILL Be GIVEN Up
Department of Justice to Get
Books and Records to
Finish Probe.

The private records of the F. H.
Smith Co., which the Government con-
Siders necessary in its investigation of
the company's business affairs, will be
turned over to the Department of
Justice today. It is understood that
counsel of the Smith company decided
to take this step after comforting with
officials of the firm.
It is known that the Justice Depart
ment has regarded these books and
records as of great Importance in their
investigation. When the documents are
received at the department their con-
tents will be carefully examined and
if the information sought is available
agents of the department will present
it to the grand jury.
1t is probable, however, that no testi-
mony will be taken by the present
grand jury, as its term has nearly run.
Returns Indictments.
The present grand jury two days ago
returned indictments against Repre-
sentative Frederick N. Zihlman OF
Maryland, chairman of the House Dis
former controller of the currency, and
five other officials of the Smith COM
pany. It also returned a supplemental
report alleging that r. Golden Donald
son, former attorney for the Smith
company and president of the CONNER
cial National Bank, had accepted
100000 from the Boyle Robertson Con-
Struction Co. in connection with the
award of contracts. This report has
mittee of the District Bar Association
by Justice Siddons.
Inasmuch as the report charges that
Donaldson, while acting as attorney for
the Smith Co., accepted 100000 from
the construction company TO obtain
for them contracts for the erection of
buildings which were being constructed
for the Smith Co., the grand jury
felt that the bar association, of which
Donaldson is a member, should take
any action deemed necessary.
Denies Owning Stock.
Mai. Henry c.. Maddux, indicted by
the District grand jury Tuesday, with
six others on a charge of using the
mails to defrard in connection with
the business of the F. H. Smith Co.,
issued a public statement today deny
ing that he owns, or ever has owned.
a single share of either the common or
preferred stock of the Smith concern,
and denied also that he had partici-
pated in the sale of its securities.
In the indictment Maj Maddux was
listed as an official of the Hamilton
Hotel Co. and other corporations, ac-
cused by the grand jury as being sub
sidiaries of the F. H. Smith Co.
In a statement released at the head
quarters of the Maddux Hotels, Inc,
operating hotel and apartment proper
ties in Washington, Philadelphia, Buff
falo and Pittsburgh, Maj. Maddux
stated:
IT am not nor have I been an officer
or director of the F.. H. Smith Co., nor
are any of the companies I control a
subsidiary of the F. H. Smith Co. or any
other company OF the 10 hotel and
other properties of the MadduX inter-
ests approximately AS per cent were
financed by the F. H. Smith Co. Mad
duX Hotels, Inc. is in the hotel business.
We have not sold single bond directly
or by mail.
II am personally acquainted with Mr..
Pitts, Mr.. Henry, Mr.. Anadale, Mr.. Ed
wards, Mr.. Zihlman Mr.. CriSSinger and
other officers of the company, and
am confident that they will be able to
prove the utter falSity of the charges
/ that have been made against them, as
am confident of my own exoneration."