Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-16
Jury TRANSCRIPT
IN SMITH CO. CASE
DENIED TO DEFENSE
Justice Hitz Rules Against
Review in Open Court of
Secret Proceedings.
COUNSEL ALSO SOUGHT
PROBE AGENTS. REPORTS
Court to Hear Further Evidence
on Point Before Making
Decision Final.

Justice William Hitz indicated In the
District Supreme Court today that he
would deny the application of counsel
for the officials of the F. H. Smith Co.
for review in open court of the pro-
ceedings before the grand jury which
returned an indictment against them.
The indictment charges G. Bryant
Pitts. Samuel j. Henry, John H. Ed
wards, jr., and c. Ebert Annadale with
a conspiracy to embezzle funds of the
company and to destroy certain records.
The question was raised during the
trial of plea in abatement attacking
the validity of the indictment on the
grounds that it was based on evidence
seized illegally by the Government. 1t
was contended that the case against
the four defendants was based primarily
on information taken by the Govern
ment in an alleged illegal raid on the
company's New York Office last January.
Sought Daily Reports.
Defense counsel had endeavored TO
obtain a transcript of the testimony
before the grand jury which was taken
down by representative of the Depart
ment of Justice. They also sought to
obtain the daily reports of the agents
working on the case. contending that
these data were necessary for the proof
of the allegation set forth in the plea
in abatement.
In refusing the request at this time.
Justice HitZ indicated that he did not
feel justified in violating the secrecy Of
grand jury proceedings for such pur-
pose. 1t was understood, however, that
he would hear further evidence before
making a final decision on the point.
Defense counsel pressed their request
for the records after John Farquhar. at
one time secretary to Pitts, made a
deposition yesterday that he had been
instructed by company officials to burn
certain of the company's records.
The deposition said Henry and Ana
dale in 1928 instructed him to burn
records pertaining to the Hamilton
Pitts had asked him to sign an affidavit
that he had not burned any records.
The witness was called out of turn
in the hearing of pleas in abatement
to the indictment, which charges Pitt,
Henry Anandale and John H. Edwards,
jr., with the alleged conspiracy.
VIII Be Read Later.
He gave his testimony by agreement
of the counsel before clerk Of the court.
who took down the deposition. It will
be read to the jury at later stage
of the trial.
Farquhar stated that after he had
been ordered to destroy the records, he
went to the Jefferson Apartments, where
he met Pitts in the lobby.
Then" he said, 81 went upstairs
and was told to go to the basement
and to get certain records which would
find there. After securing the records,
went to the Smith Co. Building on
Fifteenth street, where I was met by
Joe Howard. at that time jsnitor, and
together we burned them in the
furnace"
Testified Over Objection.
Farquhar's testimony came as sur
prise inasmuch as he had been called
by the defense, and, despite the fact
that the evidence given by him has
little bearing on the charges in the in
dictment with which the court is now
concerned, his statements were taken
over the strenuous objections OF counsel
who had called him.
Justice Hitz this morning deferred his
ruling on the question of whether the
defendants were entitled to review notes
taken in the grand jury room Dy
representative of the Department OF
Justice. Temporarily baked in this
direction, counsel for the defense then
attempted to secure the daily reports OF
the agents who were working on the
case. The Government objected TO TINS
on the ground that the agents them
selves were present and could be called
by the defense.
The latter then attempted to secure
subpeonas calling for the production OF
this material in court.
Illegal Raid Alleged.
The defense contends that 1t is en-
titled to this material as it would tend
to prove their assertion that most of
the evidence used by the Government
before the grand jury which returned
the indictment resulted from an illegal
raid on the Smith company's offices
in New York last January. Pitts al
legged this to be the fact in making
applications for the subpoena. AS
siStant United States Attorney Neil
Burkinshaw objected on the ground
that according to testimony yesterday,
Pitts left New York several days prior to
the raid and could have had no knowl-
edge as to what the Government agents
may or may not have seen. Burkin-
shaw argued that this indicated bad
faith on the part of the defendants.
Burkinshaw is working with Nugent
Dodds, special assistant to the Attorney
General, in the prosecution of the
charges. Representing the defendants
are Frank G.. Raichle, Wilton J. Lam
bert, Rudolph Yeatman, Edward To-
land and Harry S. Barger.