Evening star., 1930-12-08
SMITH CO. DEFENSE
]. DENIED M|STR|AL
Testimony of Witness, Erring
on Charges Involved, Brings
Demand for Delay.

For the second time since the open
ing of the F. H. Smith Co. conspiracy
trial, more than two weeks ago in Dis
trict Supreme Court, Associate Justice
William Hitz today overruled defense
motion for a mistrial
Frank G. Raichle and Wilton j. Lam
bert. counsel for G. Bryan Pitts, G.
Albert Anadale and John II. Edwards,
jr., based their demand for dismissal
of the jury on a statement made by
Charles T. Malone, a Department Of
Justice agent, while he was being cross
examined. The witness had declared
he believed the men were being tried on
a conspiracy indictment, while the in
dictment Raichle had reference to in a
question he made was one which con-
cerned an embezzlement.
Exception Is Entered.
The defense lawyers argued the wit
ness statement was entirely uncalled
for. They contended it might preju-
dice the jury against the defendants and
1lSlSIcQ q IlLSI1 la L1usb NO OAASANN a.
Pitts, Anadale and Edwards were to
receive a fair trial.
Justice Hitz ruled, however, at the
insistence of Nugent Dodds and Neil j.
Burkinshaw of Government counsel,
that Malone's statement had been re-
sponsive to a question and was admis-
sible. An exception to the judges de-
cision was entered by the defense at
torneys.
The demand for mistrial was made at
the bench. The jurors sat In their box
oblivious Of what had taken place.
First Move Overruled.
The first move of the defense for a
Hnistrial came during selection Of the
fury when tentative talesman declared
during q preliminary examination he
believed all of the defendants were
guilty. This motion likewise was over
ruled and an exception entered.
Malone was questioned in great detail
BY Raichle concerning his part in the
investigation which resulted In the in
dictment of the defendants. 1t was
brought out through his testimony that
the petty cash fund of the Smith Co.
always was kept at some stipulated
figure. He said this amount sometimes
was $25 900, sometimes $4,000 and
again $1,000 He said the procedure
was to draw checks payable to the order
Of cash to 2eplenish this fund and con-
tended the fund had been manipulated
in order to make embezzlements pos
sible.
The Justice agent declared the COM
pany's cash disbursal journal, among
the records found to be missing, was the
only boo'G which might contain essential
entries concerning petty cash fund
checks.
Answer Brings Laugh.
There was a great deal of laughter
In the court room when Malone was,
asked whether the Smith Co. conducted
an investment banking business and
replied, That's what they called it."
Frequently during the examination of
Malone, ,Rachle sought ta lend weight
to the defense contention that the miss
ing records were not necessarily of
great value. In every instance, however,
Malone answered In some such fashion
as this:
"How can I state It Is not so since I
don't have the missing bcpks2"
Asked to explain thfeeS Checks de-
posted to the credit sof Pitts In the.
Southern Maryland Trust Co., at Seat
Pleasant, September 20, 1929, Malone
declared they represented Smith Co.
funds converted to the use Of the de-
fendant. The checks were for a total
value Of $4,000.
Holds Ledger Sheets Missing.
The witness said he had encountered
difaculty in tracing these checks as
accurately as he had desired to because
entries concerning them had been
scratched from a company journal.
Raichle demanded to know whether
this scratching practice was not occa-
sionally employed by other companies.
Malone said he never heard Of this
having been done by any other concern.
He said the custom was to change the
journal entries. He added when he
checked the company books, October
81, 1929. he found they did not balance.
do you mean that the books were
improperly kept?" Raichle inquired.
"No, but ledger sheets apparently had
been extracted" Malone responded.