Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-10
u. S. OFFERS JURY
PERJURY CHARGES
INF. H. SMITH CASE
DefenSe's Receipts, Claiming
Pitts Funds Legal, Held
Spurious by Prosecution.
COUNTRY CLUB PROJECT
DEALS TO BE PRESENTED
Undeveloped Suburban Lots Were
Sold Under "Free-Lunch"
and Lecture Plan.

AS the Government today was pre-
senting the F. H. Smith Co. perjury
charges to the grand jury. it was
learned that United States Attorney
Leo A. Rover had ordered the presen-
| tation to the jury on next Tuesday of
| evidence concerning the operations of
| Country Club Properties, Inc, promo
| ton concern which sold undeveloped
suburban lots under the free lunch
| free lecture" system, brought to Wash
ington by N. B. Clarke.
The perjury charges involved certain
individuals involved in the recent F. H.
Smith Co. conspiracy trial. One new
witness appeared before the grand
jury.
The substance of the Governments
case was given to the grand jury
several weeks ago, but it was decided
to represent ali the evidence to
familiarize the jurors with the details.
The new witness who appeared be.
fore the jury today Is Miss Helen
Schneider, private secretary to G.. Bryan
Pitts, former chairman of the Smith
Co.'S board of directors. Pitts and two
other officials of the company were
found guilty in December of conspiring
to embezzle funds and destroy records
OF the concern.
Anadale and Edwards Heard.
Included among the other witnesses
who went before the jury today were
G. Ebert Anadale, John H. Edwards.
Jr., and Emory L. Coblentz Anadale
and Edwards, former Smith Co. vice
presidents, were convicted with Pitts
on the conspiracy charge Coblentz.
banker of Frederick, Md, was a wit
ness for the defense.
Ar tho frial ~ 4I,a
the Government introduced evidence
designed to prove that Pitts on numer-
GUS occasions had embezzled large sums
OF money which belonged to the Smith
Co. or its subsidiaries.
To meet these allegations the defense
introduced in evidence a number of
acquisitions and receipts which, it was
contended, showed that Pitts was legal
~ entitled to the money claimed by the
prosecution to have been embezzled.
Some OF these papers were signed by
Pitts as controlling officer of one of the
subsidiary corporations involved. Others
were signed by CoblentZ. who identified
the documents while on the witness
stand.
Claim Receipts Spurious.
The Department of Justice and United
States attorneys Office now contend
that these acquisitions and receipts were
spurious, and that their Introduction as
evidence amounted to perjury and con-
tempt on court on the part of those re-
sponSible.
Presentation of the case to the grand
Jury was in the hands of Assistant At
torney General Nugent Dodds and Neil
Burkmshaw, assistant United States at
torney.
Another witness to testify was
Charles w. Malone, an expert account
ant and agent of the departments bu-
reau Of investigation. Malone was a
Government witness at the conspiracy
trial..
The grand jury is not expected to
take action on the case for several days,
1t was stated.
Operations Were Abandoned.
Country Club Properties, Inc, aban-
ooned its operations here after the
Blaine investigating committee of the
Senate, the Department of Justice and
the United States attorney launched
extensive Investigations Of its activities.
The matter will be presented to the
grand jury by Assistant United States
Attorney William H. Collins. It is in
dicated an indictment will be sought en-
the basis of complaints of alleging mis-
representations in advertising matter
sent through the mails.
Decision to lay testimony in this case
before the grand jury was reached by
the prosecutor after he had read the
report of the Department of Justice on
its investigation of the operations of the
business, during which 1t made a de-
tailed study Of the books and records
OF the concern, which had been taken
under subpoena of the district attorney.
Testimony charging MISREPRESENTATION
m
headed by Senator Blaine Of Wisconsin
and incorporated in its official report
to the Senate.
Among other evidence included IN this
report was an advertisement published
by the promotion concern announcing
that group of houses was to be erected
on the property being sold, and along
with this was testimony to the effect
that after some time had passed the
construction Of but one house had been
started.
Women Were Clients.
The plan of operation of the Coun-
try Club Properties was to pay woman
solicitors to invite groups of guests.
mostly women, to accept free rides to
the suburban property, to enjoy free
lunch and to hear free lecture. The
lectures, given for the most part by Mr.
Clarke, were discussion of how to make
money quick by buying lots and resell
ing them while prices we're rising.
The property, named Country Club
Park, in Montgomery County, north and
east OF Silver Spring, was owned by
Maj E. Brooke Lee and Frank L.
Hewitt. The promotion concern con-
tracted to buy this tract on the Install
ment plan, making payments after indi-
vidual lot buyers paid for lots purchased
from the promoters
Mai. Lee and Mr.. Hewitt told the
Senate committee they had no connec-
ton with the promotion concern except
for the purchase contract