Evening star., 1930-12-07
HOPE FOR FREEDOM
OF SMITH OFFICERS
Counsel Will Endeavor to
Prove Innocence of Trio
on All of 95 Charges.

Counsel for three former officers of
the F. H. Smith Co., now on trial in
District Supreme Court on conspiracy
charges, announced in court yesterday
that they would endeavor to prove the
defendants innocent of all the 95 acts
of embezzlement charged by the Gov
eminent.
The defendants are G. Bryan Pitts.
John H. Edwards, jr., and G. Ebert
Anadale, charged with a conspiracy to
embezzle Smith Co. funds and destroy
its records.
The defense is expected to get under
way early this week, the Government
having announced it would rest within
half day after the cross-examination
of Charles T. Malone, Department of
Justice accountant, is concluded by the
defense.
Counsel for the three accused men
said yesterday they have not decided
whether they will call the defendants to
the witness stand. The determination
of this question. they said. depends upon
how the case shapes up after the Gov
eminent is through.
Surprise Testimony Given.
Frank G.. Raichle, of counsel for the
defense, yesterday secured an admission
from Malone that the prosecution might
have been wrong in three of the 95 al
legged acts of embezzlement. This testi-
mony, coming from a Government wit
ness, was decided surprise.
Malone, on his direct examination,
had expressed the belief that the de-
PENDANTS were guilty in every instance
mitted, however, that he might have
been wrong in the three cases, when
confronted with documentary evidence
purporting to show that the money in
volved in these transactions had not
been embeZZled.
One of these instances involved a
check on the Smith Co. 30r SSH 80,
which. the Government cltimed in its
bill of particulars, was embezzled by
Pitts. The defense produced evidence
designed to prove that the check had
been drawn to cover a bad check in like
amount given the Smith Co. by a Gus
toner.
Another item dealt with a check for
$4,000, also alleged to have been en-
bezzled by Pitts. Raichle produced
documentary evidence to show that on
the date in question check for that
amount was drawn by the Smith COM
pany to pay man for some stock the
company had purchased from him. The
cancelled check. with the Endorsement
of the payee, Thomas L. Hume, was
produced.
Check and Deposit Incidents.
Malone said that with regard to this
item all he knew was that a check of
the Smith company in that sum had
been cashed, and that on the same
day like amount had been deposited
to one of Pitts personal accounts. Not
having the cash disbursement journal
of the company, he said, it was impos-
sible for him TO trace the transaction
further.
On another occasion a check made
payable to Roma NJ. Plake, former sales
man, was involved. The prosecution
claimed that on the same date this
check was drawn, q similar amount was
deposited to Pitts account in the Com
merctal National Bank. The defense
however. said Plake would be called to
testify that as a matter of fact he
received the 1920, the money being
due him in commissions.
Malone admitted that if the defense
could prove the facts alleged in these
three instances, the possibility of any
embezzlementS in so far as these items
were concerned would be obviated.
Raichle said large part of the de-
PENDANTS case would rest on the testi-
mony Of its own expert accountant,
H. o. Hart of Palm Beach, Fla.
In addition to Raichle, the defendants
are represented by Wilton j. Lambert,
Rudolph Yeatman, George D. Horning
jr., and Edmund Toland. The prosecu-
ton Is being conducted by Nugent
Dodds, special assistant TO the ATTORNEY
General, and Neil Burkinshaw, assistant
United States attorney.