Evening star., 1933-04-16
EDWARDS IS FREED
AS SENTENCE ENDS
Smith Company Clients No.
titled Two More Mortgage
Bond Issues in Default.

Having completed a three-year SEN
tence, John H. Edwards, jr, former vice
president of the F. H. Smith Co.. has
been released from Lorton Reformatory
it was learned last night.
Edwards was one of three former Of
flcers of the defunct Smith company
who were convicted in December, 1890
Of conspiring to destroy the company's
records and embezzle $5,000,000 of its
funds. Edwards served his full SEN
tence, with time off for good behavior
The other two-G. Bryan Pitts and c.
Ebert Anadale-are still serving time.
Ccincident with the release Of Ed
wards, several hundred former clients
of the Smith company received notice
that two more issues of mortgage bonds
sold through the Smith concern are In
default. The notice went out in the
form OF a call from the Committee for
the Protection of the Holders Of Bonds
Sold through the F. H. Smith Co. for
bonds secured on the Riverside Apart
ments and the Al-Roy Apartments. The
committee urged the holders of first
mortgage bonds secured on these prop
critics to deposit their securities at
once.
Described rs Model Prisoner"
Edwards, who has been described as a
model prisoner" by Capt. M. M.
Barnard. superintendent of the prison,
had a Total of 252 days taken off his
sentence for good conduct, resulting
in his release Thursday. No information
as to his plans for the future was
available. members of his family stat
ing that he is ''out of town on business" ]"
Like Anada!e, Edwards began his ca
ujt ho n
minor position, being promoted rapidly
by Fits, who was chairman of the
company's board or directors.
Alter the jury brought in its guilty"
verdict in the conspiracy case. Justice
William Hitz sentenced Pitts to IA years,
Anadale to 9 and Edwards to 3. The
latter, however, elected to begin serving
his sentence at once, while Fits and
Anedale appealed to the higher courts.
As a result, Edwards had served almost
year of his sentence before the other
two began receiving credit for the time
they were spending in jail.
Devised Accounting System.
After the trial was over, Edwards ad-
mitted that he had helped prepare Ger
tain false documentary evidence which
was introduced during the proceedings.
He has never admitted any actual en-
bezzlement, however, both he and Ana
dale contending they acted under or
ders from Pitts, whom they said
they had the utmost confidence. Dur
ing the trial of Pitts and others on per-
jury charges growing out of the intro
duction of the ellegedly spurious docu-
ments. Edward testified for the Gov
ernment
After Edwards had been in the Lor-
ton Reformatory five weeks, it was
disclosed by Capt. Barnard that he had
worked out and introduced model ac-
counting system for the reformatory
commissary which provided the prison
with complete check on all its foou,
clothing and other supplies.
Friends of Anadale have made ce-
termined efforts to secure his release on
parole, but so far they have not met
with any success.
An application has also been made
for a parole for Edmund D. Rheem,
former head of Swartzell 'Rheem 6
Hensey Co., a mortgage-banking house
which failed shortly after the collapse
of the Smith company. 1t was under
stood no action has been taken on
Rheem's application. He is serving q
sentence of seven years. having pleaded
guilty to an indictment charging him
with "concealment of writings"