Evening star., 1930-12-11
AUDITOR DECLARES
BOOKS WERE FOUND
IN SMITH CO. OFFICE
Witness Testifies Check Was
Made After Time Records Are
Said to Have Been Burned.

Testimony by an independent ac-
countant that all of the current books
and records of the F. H. Smith Co. were
in their Offices on Fifteenth street sub
sequent to the time they were alleged
to have been burned or hidden away
was INTRODUCED today at the trial of
three former officers of the concern on
conspiracy charges.
This was regarded as the most i'm
portant evidence so far introduced in
the defense being made by q. BRYAN
Pitts, C. Albert Anadale and John H.
Edwards, jr., the defendants, to indict-
ments charging them with a conspiracy
to embezzle company funds and destroy
its records.
The witness, Robert Klinger, an ac-
countant associated with the auditing
firm of Murphy, Lanler g. Quinn, said
he made semi-annual, audit of the
Smith Co.'S books ending Jure 80. 1929.
and that all Of the records Of the cor
poration were made available to him
at that time.
He testified specifically that the
company's general journal, cash dis
bursements journal, transfer binders
and subsidiary journals were in the
Smith Offices while the audit was being
made.
Made Regular Audit.
The indictment charges in one count
that certain of the essential records of
the company were burned in 1928, and
that in May, 1929, approximately 40
trunks filled with records were taken
away and concealed.
In defense of these two charges, tes-
timony has been introduced admitting
that these incidents took place, but the
contention has been made that the rec
ords involved were old and worthless.
Klinger said that his concern regu-
larly has audited the Smith Co.'S books
for the past several years, and that they
have always been found in good condi-
ton. Letters from the auditing firm
commencing the Smith Co. for the
manner in which its books were kept
were read to the jury.
Earlier in the case it had been testi-
ned that certain entries were made in
the Smith Co. books prior to an audit,
and that they had been reversed after
was completed. Answering a question
put by associate defense counsel, Frank
O. Raichle, the witness said that in
many cases this was an approved ac-
counting practice.
On cross-examination by Nugent
Dodds, special assistant to the Attor-
ney General, the witness said that he
did not run down items in the Smith
Co. suspense account which had been
yaI Oh L.
loan accounts. He also said that his
work sheets had been turned over to
the Smith Co. after he had completed
his report.
Tells Of Cashing Checks.
William Shumate, another defense
witness, told the jury that he, while
employed by the Merchants Bank 81
Trust Co, had frequently indorsed and
cashed checks for large amounts made
payable to him, although he was not
entitled to any money from the bank.
He explained this was done so that the
checks might be cashed with bills of
large denomination on hand, and that
these would later be taken by him to
the Treasury Department and re-
duced to bills of smaller denomina-
tions. He testified that this was done
IN order to secure variety of cur
NNAACS w 4dSAA4bdOC blAC COIOuC6 Oh Tie
banks affairs.
Several witnesses had already testified
that employees of the Smith Co. were
frequently asked to in6Srse and cash
company checks calling for money to
which they were not entitled. When
Mr.. Dodds objected that the practice of
banks was not comparable to that OF
the Smith Co. this line Of questioning
was discontinued
Charles NJ. Wentz, an employe of the
Smith Co., testified that he helped pack
the records into the trunks which were
May, 1929. He said that these records
were old books of the W. H. West Co.
which were no longer needed in the
conduct of the affairs of the Smith Co, |
He said that TO the best of his knowl- |
edge records were removed from the |
Smith Co. Offices on only one nccasinr,