Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-26
SECOND GRAND Jury
TO PROBE SMITH CO.
10 Persons and Two Firms
Subpoenaed in Inquiry of
Mortgage Firm.

The Department of Justice today took
steps preliminary to launching the Sec
ond grand jury investigation of the
activities of the F. H. Smith Co., sew
eral of whose officials and former off,
Gals are under indictment here for al
legged use Of the mails to defraud.
At the request of Nugent Dodds,
special assistant to the Attorney Gen.
eral, the United States marshal has
served subpoenas on 10 persons to APP
pear as witnesses before the grand jury
on April 2 when the probe will be
started. In addition a local broker
age firm and an auditing concern were
served with subpoenas to make avail
able to the grand jury certain records.
Other subpoenas have been sent for
service to marshals in Maryland and
New York. 1t Is understood they call
for appearance before the jury of per-
sons formerly employed or associated
with the Smith Co.
Legality Is Upheld.
Since the mail fraud indictments
were returned three months ago the
Department of Justice agents have been
working continuously on their inveStiga-
ton of the Smith Co. It is known the
concern has financed the construction
of apartments and Office buildings in
several large cities, including Pittsburgh,
Philadelphia, Buffalo and in smaller
communities in Virginia, Pennsylvania
and New York.
The December grand jury returned
indictments against Representative
Frederick N. zihlman, chairman of the
House District committee; Daniel r.
CriSSinger, G. Bryan Pitts, G. Ebert
Annadale and Samuel j. Henry, jr.
Counsel for the defendants attacked
the legality of the indictments, but
their contentious were overruled a few
days ago by the Supreme Court deci-
sion In the Buck case. They are now
awaiting trial.
After the indictments had been re-
turned here, Mr.. Dodds went to New
York City and presented testimony to
a grand jury there, which also had been
asked to investigate the Smith COM
pany. Inability of the Government to
secure certain records from the Smith
company for presentation to the jury
resulted In postponement of the case,
and as yet the jury has taken no action.
Reports Are Asked.
Subpoenas duces tecum were served
on the F. b. Keech & Co. and the
auditing firm of Murphy, Lanier g.
Quinn, with Offices in the Southern
Building. The Keech Co. was ordered
to produce for the grand jury all rec
ordS pertaining to its dealings with the
F. H. Smith Co. or Pitts The subpoenaS
served on the other firm called for
presentation of all audit reports and
work sheets for the F. II. Smith Co. or
the F. H Smith Investment Co.
SubpoenaS were served on the follow
ing persons to appear as witnesses:
j. r. Matthews, porter at the An
napolis Hotel; Mrs. Vernoa Rouse, an
employee of the Chase Securities Co.;
H. G. Giovanetti, the Boulevard apart
ments: Charles E. Bishop, Investment
Building; Richard G. Davis, 3717 Thir-
tieth street northeast; James Bundy,
2119 Flagler place; John S. Farquhar,
1912 Twenty-Second street; James H.
Brown, 1908 Georgia avenue; John W.
Hurley, 219 Douglas street; William
Frank Thyson, Investment Building;
John S. Warrington, care of Shaw
Walker Co; Edwin L. Pearce, $40
Buchanan street; John Whaley, 81 N
street; Pearce p. Smith, 1925 Daven-
port street; William d. Brown, care of
North American Bankers, Inc; Leroy
Mann, 1891 street northeast; Lewis
E. Thomas, 1884 Franklin street north
east; Isadore Brill, 8 N street, and
Paul j. Dundon, 2944 Thayer street
northeast,