Evening star., 1930-12-15
Testimony Also AbSoIveS An
adaIe and Edwards of
Any Guilt.
Ex-SMITH CO. OFFICIAL
EXPLAINS ALL DEPOSITS
Evidence introduced to Show Sub
sidiary Authorization for
Control of Funds.

After a general denial Of the Gov
ernments charge that he had entered
into criminal conspiracy. G. Bryan
Pitts, principal defendant in the r. H,
Smith Co. conspiracy trial, this after
noon denied specifically the 95 accu-
sations of embezzlement made against
him.
In the course of his testimony he
also abSolved of guilt his two codefend-
ants, G. Ebert Anadale and John II.
Edwards, jr. All three men we're for
merly officers of the Smith company.
Earlier in the day Pitts had em-
phatically denied those counts in the
indictment charging him and the Others
with a conspiracy to destroy and con-
ceal records of the company.
Control Acquisition Explained.
In his testimony with regard to the
alleged embezzlements, he explained
deposits to his account totaling ap-
proximately. 100000 over a period of
two years, from early 1928 to 1880.
He f1rst explained to the jury how he
had acquired virtually absolute control
OF the Beverly Building Corporation, a
pittsburgh concern, from Emory L.
Coblentz Of Frederick, Md. Pitts testified
that this corporation had a standing
account with the Smith Co, by which
1t was financed.
AS principal stockholder, he said, he
was privileged to draw on the account
with the Smith company for the bene-
Mt of the subsidiary.
Taking up each item which the Gov
ernment charged was an embezzlement.
Pitts introduced documentary evidence
designed to prove that the money in
question was deposited to his account
only upon proper authorization by the
subsidiary. Authorizations and receipts
for every item were shown by him to
the jury.
Denies All Accusations.
Guided by the questions Of Defense
Attorney Wilton j. Lambert, the witness
took up the Governments evidence piece
by piece and attempted to Offset it with
an outright denial or an explanation
calculated to dissipate any suggestion of
criminality that might be drawn from it.
Pitts t1rst explained the general char
acter OF business done by the Smith Co.,
and then outlined his duties as chair
man Of the Board Of Directors. In this
capacity; he said, he never had custody
OF the books OF the corporation, and
never actually used them himself.
In May 1927, the witness said, he
and Samuel ]. Henry, former president.
owned all Of the 10000 shares of COM
mon stock of the company and about
80 per cent Of its outstanding preferred
stock.
Lambert then asked him to explain
testimony given earlier in the trial by
former Smith company stenographer,
who said he had listened in on a pri-
vate telephone conversation and heard
Pitts instruct Anandale to pay a per-
Sonal bill with $4,000 Of Smith COM
pany money and charge the item to a
legal account Of a subsidiary corporation.
Was in New York.
Il deny it absolutely" Pitts said. ITO
the best OF my recollection was in
New York at the time of this mythical
telephone conversation.
WAS it any part of this mans duty
to listen in on telephone calls?" Lam
bert asked.
II never knew it was the duty of any
one to play the part Of a snooper"
Pitts then launched into an eXplana-
ton of the circumstances under which
certain books were burned in the base.
ment OF the Smith company'S building
on Fifteenth street in 1923. He ad-
mitted that some records had been
burned on that occasion at his order.
Says Vaults Were CIuttered.
sE For a long time prior to that Incl
dent" he explained, "our vault Gus
todians had been complaining that the
vaults were so cluttered up with old
records and junk that there was no
room for storing current material I
also had considerable quantity of my
personal belongings in the vault. In
order to clear up the situation, told
Anadale to pack the stuff IN boxes ard
cont ~ fr orkv, a.. T.R
terson. then went over the stuff care
fully, took out the articles that belonged
to me, and ordered the rest to be
burned. There was absolutely nothing
of value in it--nothing but q pile Of
worthless, useless records"
Did you ever instruct any one to pull
checks from the files" Lambert asked.
'T did not"
did you ever instruct any one to
'cash'?"
II did not"
Explains Deposits by Valet.
Pitts then undertook an explanation
OF testimony previously given by his
valet, Joseph Howard, readily admitting
that the colored man had frequently
made cash deposits to his account in
the Southern Maryland Trust Co. He
said that he was stockholder in this
bank
There is no doubt, but that How
ard did often make cash deposits to
my account in that bank" he said, ''al-
though 1t was done under instructions
from my secretary and not from me. I
knew about it, however"
He said that Howard was with him
at his home in Palm Beach, Fla, last
Fall, but denied that he had ever given
the servant any shots" of rum. He
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