Evening star., 1930-12-03
FORMER SMITH co.
OFFICER TESTIFIES
HE BURNED BOOKS
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until October, 1929, when Pitts asked
me to sign a. statement denying that /
had ever burned these records. Afraid
Of losing my job, did sign the state
ment and gave it to him. That was the
last saw of it."
On crosS-examination, after a heated
controversy between attorneys, and an
announcement by Justice william Hitz
that he would not permit the witness to
answer self-incriminating questions in
violation of his Constitutional rights,
Farquhar admitted that he had signed
the statement knowing it to be false.
He also admitted that he did net know
whether they were the Smith Co. books
proper, but said that some Of them
bore the legend, Hamilton Hotel Cor
poration."
Questioned by United States Attorney
Neil Burkinshaw, the witness admitted
that he had pulled checks from the
Smith Co. files practically every month.
He said he did this under instructions
from Anadale, and that he never saw
the checks after turning them over to
that defendant. He also said that on
some occasions he had been asked to
indorse checks made out to him for
large sums. At those times, he testi-
fed, there was no money due him from
the Smith Co. and that he did not re-
ceive sny.
Tells Of Fees to Lawyer.
Testimony by a former officer that
he had used company funds to pay a
Florida lawyer $4,000 was also intro
duced at the trial today. u
The identity of the lawyer and the
purpose for which the money was paid
was not brought out.
The Government also called several
witnesses from the Commercial Ma
tiona1 Bank in its effort to prove that
Pitts, Anadale and Edwards conspired
to embezzle its funds and destroy rec
ords.
Testimony regarding the $4,000
check was given by Lewis E. Thomas,
formerly treasurer Of the company.
Asked About Letter.
After the witness had expressed him
self as unable to remember several mat
ters about which he was being ques-
toned, Nugent Dodds. special assistant
to the Attorney General, walked to the
witness stand and handed him paper.
What was the occasion OF your using
this letter." the prosecutor asked.
After a dispute as to the adv.sability
Of this evidence, the witness explained
that he had drawn check on the
Commercial National Bank ordering the
payment Of $4,000 to an attorney for
the company in Florida. He said that
he did this under instructions from
Anadale.
The witness was unable to recall to
nf
funds had been charged, and explained
that the disbursement journal, the only
record containing this information, had
disappeared when he attempted to
find it.
Visited Office at Night.
Thomas stated that he went to the
Smith company Offices one night In
May, 1929. He said that he saw sew
eral people working in the securities
vault.
How long did you stay there?" Mr..
Dodds asked.
About 10 minutes"
why did you leave?"
After some hesitation the witness
answered, II didn't want to know"
Before Thomas could finish his an
swer Defense Attorney Lambert voiced
an objection. The question was with
drawn.
Thomas also testified that he had
been unable to find certain records
sought by the Department Of Justice
under a subpoena.
The proceedings were interrupted fire.
quently by objections from Frank @.
Raichle CT defense counsel, who con-
tended that the prosecutions questions
were leading.
Frequently Cashed Checks.
"That may be So" Justice William
Hitz said, but it doesn't seem to me
that they are leading us anywhere"
James A. Chapline, paying teller Of
the Commercial National Bank, said
that he frequently caShed checks, drawn
to cash, for employees Of the Smith Co.
The employees, he said, generally asked
for bills Of 500 and $1,000 denomina-
tions.
When defense counsel objected to the
materiality of this answer, Assistant
United States Attorney Burkinshaw
said he intended to show that bills of
the same denominations were deposited
shortly after the checks had been CASH
ed in the Southern Maryland Trust Co.
by the defendants. Burkinshaw also
said the Government would prove that
"a common method of cmbezzlement''
used by the defendants was to pay with
Smith Co. checks for cashiers checks
issued by this bank.
Endorsed Checks.
Testimony by four witnesses that they
had indorsed checks for large amounts
and then turned them over to officials
Of the company was introduced yes
terday afternoon. The witnesses, three
women and q man, all former employees,
said they never received any Of the
money derived by cashirg the checks
and did not know what had become
OF It.
Pitts said these incidents would be
explained satisfactorily at the proper
time"
The testimony was given by Mrs. G
D. Solomon. Mrs. Ada Leopold, Miss
Ellen Dowling and Pierce @. Smith
The checks were from $4,000 70 $4,000
1t was brought out that the checks
were generally indorsed at the request
Of Anadale and Edwerdk and turned
back to one or the cth@