Evening star., 1932-06-27
.COBLENTz ADMITS
He SIGNED PAPERS
Says RaiChIe Assured. Him
Smith Company Documents
Had Been Destroyed.

Emory L. Coblentz, Frederick, Md.
banker, testified in District Supreme
Court today that Frank G. Raichle,
young Buffalo, N. Y. attorney, on trial
charged with subornation of perjury,
told him prior to the trial of the F. H.
Smith Co. case that certain authorize
tons introduced at that proceeding
had been destroyed.
These authorizations were used during
the trial of G. Bryan Pitts, president OF
the Smith Co, on conSpiracy-emoeZ-
Element charges, in an effort to show
Pitts was entitled to money he was
accused OF embezzling from the COM
pany. After their introduction as evi-
dence, the Government charged they
were spurious and instituted saborna-
ton of perjury proceedings against
Raichle, who defended Pitts at that
time, in connection with their use.
Coblentz testified he signed the dccu-
ments in Florida few weeks before the
opening of Pitts trial in November
1880, although they bore dates in 1927,
1928 and early 1929.
Used for Records, He Says.
The banker said he signed the papers
with the distinct understanding they
were to be used only for the purpose of
completing corporate records and not in
connection with the defense of any
criminal charges then pending against
Pitts. He admitted, however. he signed
them in Pitts Palm Beach home, using
several different pens and different col
ored inks, furnished by one of Pitts
associates. He said his suspicious were
hrr rir 70 no
turned to Pitts and the others and said:
Look here fellows, I'm signing these
to complete corporate records only. II
they are ever used for any other pur-
pose, I will tell all the circumstances
under which they were signed"
Shortly before he took the stand as
defense witness during Pitts trial,
Coblentz continued, he met Raichle in
a room at the Mayflower Hotel. AS he
walked into the room, Coblentz testi-
fed, Raichle look up and said: In
order that you may feel easy, Mr.. Cob
lentz / want to tell you Pitts and Ed
wards have assured me that the au-
thorizationS you signed in Florida have
been destroyed"
referring to John H. Edwards. jr.,
vice president of the Smith Co, who
was tried with Pitts
Identified Signatures.
Colbentz said that after he took the
stand during Pitts trial and identified
his signature on the authorizations, he
went to Raichle and said: Frank, l
believe a number of those papers on
which 1 identified my signature were
ones I signed in Florida"
The banker also testified about con-
versation in Florida among Pitts,
Raichle and himself At that time, he
said. Pitts remarked he thought 1t would
be all right to use the recently signed
authorizations at the pending trial be-
cause they had located a general au-
thorization giving him the same power
delegated by the individual papers.
Raichle. he testified. interrupted and
said the authorizations signed in Flor
ida could not be used at the trial.
Coblentz also testified at some length
concerning a promissory note for S147,-
900 which he gave Pitts in Florida.
Explains Transaction.
my associates and I were holding
some $500, 900 of Smith Co securities y
he said in explanation Of this transac-
ton. II was trying to get Pitts to
take them back and he said he could
not do this, but he would finance a
securities corporation, through which
they could be liquidated. He then
offered to give me a block OF Smith
Co. preferred stock to be used as an
asset for this corporation if would
give him the note for $l47,000. He
said he had paid 500 share for
this stock and would convey it to me
for $40 a share"
Coblentz said he gave Pitts the note
in September 1880. but dated 1t back
to December 18, 1929, the date when
they first discussed the forming OF the
securities corporation, at Pitts request.
He said that, when Pitts subsequently
failed to carry out the rest of his agree
ment with regard to the securities cor
poration, he became suspicious that his
real purpose was to deduct the apparent
loss in the transfer of the stock from
his income tax returns for 1929. Cob
lentz said he then told Pitts he would
disclose all the circumstances If the
sl47,o00 note should ever be used for
that purpose.
On cross-examination. Defense Attor-
(Coutfnilad an paoe . Coliir1n a.