Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-14
FAILURE TO GOVERN
D. C. PROPERLY LAID
AT CONGRESS- DOOR
Continued From First Page,l

ing many millions Of dollars, from this
concern, and that they have done so In
part by reason of the fact that they
have thoughts they had Q right to
think-that the operations Of such q
corporation, conducting its business
from their National Capital, would be
subjected to at least . reasonable super
VISION"
In another part Of his speech, Senator
Brookhart declared:
Cites Age Of Building.
"I have heretofore referred to the
fact that bonds have been issued and
sold by the Smith 90. In the aggre-
gate sum of approximately two and
three quarters millions Of dollars on the
Hamilton Hotel in this city-a building
that cost, With its equipment. approx.
has already lived through half Of the
2O-year period that It can hope to be
designated Is q AFst-elass hotei. need
make little comment on the nature Of
the securities upon which the bond
holders must depend. Answering my In
quiry. agents of the Department of jus
toe informed me that the outstanding
bond issues approximate $4,000 per
room and that the interest payment and
the general expense Of operating the
hotel are far greater than its earning
capacity ever has been or can hope to
be, to say nothing OF the payment OF
Within my memory-in fact. within
the past five years-two of the compa-
MES that have attempted to operate
that hosiery have become bankrupt,
and vet 1t has been subsequently mort
gagged and bonds have been sold Tor
more than q million dollars since those
bankruptcies, despite the fact that the
building was already tncumbered with
old mortgages for much more than 1t
cost to build, equip 1t and pay for the
site.
criminal proceedings against the
chairman of the board Of the F. HI.
smith Co. were instituted last May
as q result Of the grand jury investi-
CATION concerning hts testimony at the
bankruptcy hearings. 1t became ini-
portant that the grand jury should
obtain certain of the records and docu-
ments and books pertaining to the
opeFation Of the hotel, and I am IN
formed by agents of the Department
of Justice that these books and records
and papers never were producee, put
attorney was advised that they could
not be located and were no longer
available.
Claims Data Removed.
"a few days ago noticed in the pa
perS, and subsequently read from the
files In q present pending criminal pro-
ceedtngs. that when those BOOKS ana
records and documents were required
by cur grand jury last May they were
not in fact produced, but that at the
time that it was claimed that they were
not available and could not be pro-
duced approximately 20 steel trunks,
filled with papers and documents, were
removed surreptitiously from the gen
eral of1ces Of the y. H. Smith Co. TO
the farm Of o man named Porter, In
brought back until the termination OF
the grand jury proceedings.
81 think that should say that am
personally satisfied that the farmer who
accented and concealed the records did
so without any knowledge of the pur-
pose or intent of those who arranged
with him to do 50, and that 1t was not
until he later saw an account OF the
criminal cases in newspapers that he
suspected an Interior motive on the part
Of Henry, who had made the arrange
n1ent with him. ] have investigated
this matter In some degree myself. and
I know from personal information, as
well as from the files of the case, that
Samuel j. Henry, the president of the
r. H. Smith Co., made arrangement to
have those 90 steel trunks of papers and
documents conveyed to that distant
farm and concealed thereon. No answer
has been made to the charge Of the
Government in that respect"
In concluding his speech, Senator
Brookhart said:
Wants TO Cite All for Contempt.
eff they were not the books and
documents required by the Government
and which the Smith 90. was afraid "a
produce, why would they have been
taken to that farm in Maryland for
storage in a barn thereon, when the
F. H. Smith Co. and its president had
farm of their own, half as far away
Just between Glen Echo and Great
Falls7"
Senator Brookhart said he wanted
TO .'heFe and now call upon the proper
officialS to have this man Henry, and
all others who knowingly took part In
that transaction" cited Tor contempt.