Evening star., 1930-12-13
BANKER REVEALS
| &14,O)D LOANS TO
SMITH CO. CLERKS
Emory |. CobIentz of Fred
erick, Nd, Says He Did Not
Know of Connections.
NOTES WERE SECURED
BY SECOND MORTGAGES
Admits Presence at Pitts Home
When Attempt to Serve Summons
on Valet Was Made.

Emory L. Coblentz Of the Central
Trust Co. of Frederick, Md, told the
jury in the F. H. Smith Co. conspiracy
trial today that his bank recently held
notes aggregating $414,000 of two
stenographers and q clerk employed by
the Smith company.
This testimony was brought out by
Nugent Dodds, special assistant to the
Attorney General, while cross examining
the witness, who was called by the
defendants, G. Bryan Pitts, c. Elbert
Anadale and John H. Edwards, jr., for
mer company officers, charged with a
conspiracy to embezzle funds and de-
stroy records.
Coblentz admitted that the notes
were secured by second mortgage bonds
Of an apartment hotel. He said the
bank did not think this collateral was
of much value, and finally isisted that
the notes be taken out.
Names Trio Obligated.
=. G. Felmer, a Smith Co. stenog-
rapher, was obligated under one note
to the extent of $14O, 900; Charles M.
Wentz, law clerk of the company, for
$138, 900, and Ellen G.. Downing, stenoe-
rapher, for $l36,400. Coblentz said
these were the names of the persons
obligated under the notes, but he de-
clared he did not know they were
Smith Co. employees.
Coblentz said he believed the notes
were taken out of the bank by some
syndicate Of people negotiating a land
DEAL. He said the bank does not hold
any Smith Co. paper at this time.
croSs-examination that he was at Pitts
home several months ago when an at
tempt was made to serve a subpoena
on Joseph Howard, Pitts valet.
did you see Howard In Pitts home
that morning?" Mr.. Dodds asked.
That's hard to answer. I was going
upstairs that morning and met q
colored man thought was Howard.
When spoke to him, however, he didn't
answer, so l wasn't sure"
Did you have any conversation with
Pitts at that time relative to obtain
ing service on Joe?"
"Yes."
What was it?"
II told Pitts that If I were In his
place I wouldn't object to the obtain
ing Of service on Joe If he was there
at the time. Pitts said he wasn't there
and that he didn't care whether they
served him or not"
Pitts Controlled Interests.
On his direct examination, Coblentz
testified that Pitts had a controlling
financial interest in two building prof.
ects handled through subsidiaries Of
the Smith Co. He said these were the
Law q Finance Building of Pittsburgh
and the Forty-third and Locust Street
Apartments at Philadelphia.
Coblentz said he had control Of the
Law and Finance Building at one time,
but that he sold out his interest to
Pitts. He also testified that Pitts was
authorized to handle the financial af-
fairs OF these concerns and that the
Smith Co. had been authorized,
through Pitts, to disburse funds and
charge the same to the accounts of
the subsidiary corporations handling the
projects.
Defense Attorney Wilton J. Lambert
told the jury. In his opening statement
that much of the money allegedly EN-
bezzled by Pitts was In fact rightfully
due him from surplus funds in the
treasures Of these corporations.
Coblentz was called by the defense
primarily TO lay the foundation for the
subsequent proof of this contention.
Pitts Is expected to take the stand Mon
day and testify in detail regarding
these transactions.