Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-21
Pitts, Henry, AnadaIe and
Edwards to Face Court on
ENLIGHTENMENT Charge.
NEW RECElVERSHIP SUIT
FILED IN WILMINGTON
Senatorial Accusations Made in
Action in Delaware on Be-
half of Stockholders.

Four officials of the F. H. Smith Co
will be placed on trial in the District
Supreme Court October on an indict-
ment charging them with embezzling
SIS, 900, 900 from the Smith Co. and with
concealing and burning records of the
company in an endeavor to cover up the
thefts.
The trial will mark the opening OF
the Department OF Justices criminal
prosecution of Smith Co. officials
against whom 1t has secured three in
dictments.
The defendants in the trial next
month will be c. Bryan Pitts. Samuel J.
Henry, c. Ebert Anadale and John H
Edwards, jr.
New Suit Is Filed.
1t was also learned yesterday that a
new suit for receiverShip, containing
sensational charges. has been filed
against the Smith Co. in Wilmington,
Del.
The receivership suit was filed on be-
half of the stockholders by Representa-
tive Alan Goldsborough of Maryland
and j. j. Morris Of the firm of Hastings,
Stockley and Morris of Wilmington.
In asking for the appointment Of a
receiver, the petition alleges that the
Smith Co. paid the firm of Donovan
g. Raichle S250000 and that this fee
was clear out of proportion to the
services rendered the Smith Co. by the
firm" Donovan, former Assistant At
torney General, and Raichle have rep
resented Pitts, and the plaintiffs con-
tend that Pitts interests are diamet-
- ~ q
Co. as he is accused of embezzling
money from the company. The petition
alleges that the money was paid the
law firm in January, shortly after Pitts
and several other officials OF the COM
pany had been indicted in Washington
on mail-fraud charges.
Charges Stock Trade.
The petition also alleges that the
Smith Co. exchanged about 100000
(par value) of its own securities, worth
intrinsically more than $2,000000, for
stock OF the Maddux Hotel Corporation,
which, it is alleged, is worthless. Henry
C. Maddux, president of the hotel cor
poration, was among those named IN the
mail-fraud indictment.
In another section of the petition
it is pointed out that the Smith Co.
was Unidentified to the extent of $780,
600 against loss by embezzlement. IL
Is alleged that a former official OF the
company approached Thomas Weed
now the Smith Co.'S president, with this
bond and suggested that 1t be USED IN
taking action against Pitts. IL Is al
legged that Weed refused to accept the
bond for this purpose, and that the
corporation has refused TO take any
action against Pitts.
It was also alleged that the annual
election of officers has not been held
this year and that no meeting OF stock
holders has been called.
There are pending against the In
dictment upon which the Smith Co. Of
ficials are 10 be tried here several pleas
in abatement, which will be argued and
decided next week Assistant United
States Attorney Neil Burkinshaw said
arrangements would be made for secur-
ing a special court room to facilitate
the disposition of the pleas.
Trial Date Surprise.
Announcement of the early trial date
Yesterday came as a surprise, since II
had been understood that it would be
some time before the defendants would
be brought into court. 1t was learned
however. that the Department of JUS
tice is ready to proceed at this time
and that attaches of the United States
marshal's office have already started
serving subpoenas on the various wit
nesses.
Nugent Dodds, special assistant to the
! Attorney General who has been instru-
! mental in securing the three indict-
ments again officials OF the Smith Co.
Continued on Page 4, Column A.