Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-28
.M|STR|A[ DENIED.
IN SMITH co. CASE
Hitz Rules Jury Question Was
Proper-Prosecutor Springs
Surprise Charge.
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embezzle funds Of the Smith Co. and 70
destroy various records and documents
to cover up the entertainments. The
particular entertainments are claSSed in
several groups in accordance with the
methods followed by the defendant&
Describes Alleged Method.
zone method frequently used was to
present a check on the Smith Co., pay
company had an account, using a mes
senger boy for this purpose. The mes
senger boy would then receive the cash.
bring 1t back to the Smith Co. Offices,
and turn It over to another messenger,
who would take 1t out and deposit 1t in
the Southern Maryland Trust Co., or
some other bank, to the personal &C.
count of Pitts.
He would then check out the money
and use 1t for various purposes, having
no connection whatsoever with the bust
ness OF the Smith Co.
I'm other cases, the cash would be
secured in similar manner, but would
then be. deposited In some bank to the
account Of Mrs. Pitts. Sometimes the
money would not be deposited at all,
but would be pocketed by, one Of the
dCACA014Abos
I'm numerous instances, cash derived
from cashing Smith Co. checks would
be deposited to the account OF Anadale,
and, again, the checks would be de-
posted to Pitts account before they
had even been cashed. Sometimes the
checks were used outright to pay the
personal debts Of the defendants.
Charges Cancelled Checks Destroyed.
I'VE expect to show that the cancelled
checks, deposit slips and so forth were
deliberately destroyed or concealed by
one or more Of the defendants so that
their tracks might be covered UP. An
count of the indictment, deals with
the concealing Of records showing the
details Of various financing transac-
tons OF the Smith company. These
records were Of particular value be-
cause under the system followed by
this concern, money for financing build,
ings would be secured through the pur-
chase from some other corporation, or
from subsidiary, Of . bond issue. The
these bonds outright, but would set
them up on their books as o credit ac-
count. These records, then, were evi-
dence Of the rights in the corporation
Of thousands Of persons throughout the
country who had invested millions Of
dollars In Its preferred stocks and
bonds. We also expect to show that
100 Cancelled checks and the general
journal Of the company, recording Its
day-to-day transactions, were concealed
or taken away and destroyed"
Objection Sustained.
The Assistant Attorney General then
said the Government would further
show that Pitts, before becoming anil
-
man Of very limited financial re-
sources" Before he could go any fur
ther In this direction, however, he was
interrupted by Mr.. Raichle, who, OBJ
jected to this statement on the ground
Of innmateriaHty. This objection was
sustained.
Defense counsel laid great emphasis
on statement by l.. Robert Arthur
Of the Liberty Bank Of Buffalo that
number and great variety Of records in
the interests of space conservation"
Mr.. Dodds, however, secured statements
from the witness that such records IS
general journals and unsettled accounts
were never destroyed. -.
Court was adjourned for an hour and
. half at noon so that counsel might
have opportunity TO examine the mass
Of documentary evidence already
brought into the case. In announcing
that court would adjourn at noon to-
morrow, after converting half an hour
early, Justice Hitz asked the attorneys
to minimize as much as possible any
detailed examination Of the records to
be introduced In the case.
Pitts Called Dominating Figure"
The defendants followed inteutly the
words Of the Government prosecutor as
he outlined the substance of the charges
q fvA0k fI.aH IA1rT NNlF 7e
as the dominating figure" In the Smith,
Co. organization, occasionally leaned
toward one Of his attorneys, comment
ing on one detail or another of the
prosecutors recital. Anadale sat calm
ly, chewing gum, while long story was
being unfolded. Edwards, whose name
was not mentioned by Mr.. Dodds az he
recounted the details Of the alleged
embezzlement, sat quietly, glancing &C..
caSionally at his wife. The jurors, in
addition to Seidel, who will decide the
fate Of the three men, are:
Charles w. Stanford, 2419 Minnesota
avenue southeast; Nestor A. Gnash, 3S0
Maryland avenue northeast; Edwin
Wenttang, 80 ,Seaton place; Bernard F.
Robey, 1918 Seventeenth street; VIII
liam L. Bishop, 164 Eleventh street
southeast; Harvey v. Avery, 1440 r
street; Walter r. Dickie, 1918 Hemlock
oLlc6Ls .. Leroy HOWELL, 1OU0 hOuTpS
street northeast; Miss Mildred Robert
son, 6516 Eighth street; Walter s. jack
son, 48l2 Illinois avenue, and Mrs. Ethel
e. Lewis, 1873 U street northeast.
Mr.. DoddS will be assisted in the
prosecution Of his case by Assistant
United States Attorney Neil Burkin-
shaw. Other members Of defense coun-
sci are George Horning, jr.; Edmund
Toland and Dozier A. DeVane.
The first group of Government wit
neSSes identified numerous deposit slips,
letters and Cancelled checks of the
Smith Co. and various individuals and
concerns.
900 Letters Identified.
Adolph Z. Wienart Of the Federal Re-
serve Bank of Baltimore identified more
than 900 letters exchanged by officials
Of his bank and the Southern Maryland
Trust Co. of Seat Pleasant, Md. He was
followed to the stand by CASTOR A.
Ghegan of the Guarantee Trust Co. Of
New York City, George G. Kosmas Of
the Washington Savings Bank, George
M. Rouse Of the Federal-American Ma
tional Bank, James B. Brooks Of the
Riggs National Bank, Samuel w. Miller
Of the Union Trust Co. and H. j. Dono-
hue, assistant cashier Of the old Mer-
chants Bank q Trust Co.
Government attorneys indicated the
various documents and records would