Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-13
CONSIDERS
HENRY REMOVAL AS
PROPERTY TRUSTEE
Government Particulars of
Alleged Conspiracy Are
Placed on File.
CONSPIRACY CHARGED
IN 95 SEPARATE CASES
Influence of Criminal Action Upon
Status of Defendant Is Issue
in Latest Court Move.

Despite assertions by counsel fol
Samuel j. Henry that the former preSi-
dent of the F. H. Smith Co. enjoys thu
confidence of local business men, CHIEF
Justice Alfred w. Wheat, in District
Supreme Court today, said he thought
Henry should be removed as trustee o
the Tivoli, Stanley Arms, Cedric anc
Al-Roy apartments. His removal haC
been asked by a group of bondholders.
Another development in the wide
spread litigation involving the Smith
Co. today was the filing by the Govern
ment of bill of particulars setting
forth more specifically the allegations
in the first count of the indictment
charging Henry, @. Bryan Pitts, Johr
H. Edwards, jr., and C. Ebert Anadale
with conspiracy to embezzle company
funds and destroy allegedly incriminat-
ing records.
Charge 95 Offenses.
Justice William Hitz last week or
dered the Government to submit these
particulars so that Pitts, Edwards and
Anadale might have better opportunity
to prepare their defense In time for
trial of the charges on November "a
Henry, who was granted a severance
from the other defendants yesterday
probably will face trial at later date
The first count of the indictment
charges conspiracy to commit 95 en-
bezzlements. The bill Of particular
amplifies these charges to the extent OF
giving specific dates and amounts in
volved in the alleged offenses.
The hearing this morning of the pc
tition for removal Of Henry as trustee
OF the apartment houses revolved to 9
large extent around the question of the
effect on his ability to serve of the
criminal indictments against him.
Joseph C.. McGarraghy, appearing fol-
the petitioning group Of bondholders
argued that as a result of the indict-
nents there had arisen in the minds
of the holders of the bonds a certain
apprehension" regarding Henry'S fit.
ness to serve.
Justice Admits Doubt.
Harry S. Barger, representing the
former Smith company president, tolc
the court that as q result Of investiga-
tons made by him he is convinced that
Henry enjoys in full measure the con-
fidence and respect OF the Washington
public. The fact that doubt Of his in
tegrity might exist In the minds OF
some individuals. he said, is not enough
to warrant his removal.
In announcing that he would take the
matter under advisement, Chief Justice
Wheat said that, in his opinion, "tht
best interests of all concerned woule
be served by the appointment Of q new
trustee
1.-THE fact remains" he said, "thai
Henry is under indictment and thai
some of the bondholders wish his re-
moval on that account. A trusteeshir
ought to be held by some one not under
suspicion, regardless of whether that sus-
picion has any basis in fact. wouldn't
say anything to hurt Mr.. Henry'S feel
ings and I am not endeavoring to give
the impression that I believe he i:
guilty of the criminal charges, but hi
has got himself into mess"
Attorney Barger told the court thai
Henry stood ready to give a proper bono
as trustee and was willing to manage
the properties under the supervision OF
the court. 1t was also commended that
under his management, through the
Munsey Trust Co. as agent, the physical
condition of the properties had beer
improved and the apartments better
rented.
Henry pointed out that he was in
possession of the Tivon, Cedric and
Stanley Arms by default in the mort
cages, but was not in possession Of the
Al-Roy.
Justice Wheat took the case under
advisement after counsel for both sides
had submitted briefs.