Waterbury evening Democrat., 1906-04-12
DRUG BUSINESS
 IS BEING AIRED
A. E. RICE AND l. P. KELLOGG ON
 WITNESS STAND.
The Latter Told of the Concerns Doings for Number of Years and the People That Were
 Paid Salaries.

The hearing on the motion for the appointment of receiver for tie
 hpothecaries Hall company was re- stunned to-day before Judge Shumway ln the superior court. A. E. Rice. al- legged trustee of the 4O9 shares. the cause Of the fight between the meIll-
 Ders Of the corporation, went on the stand to resume his tale where he had left it off last week, but further than identifying two letters dated January 26 and 27, this year, he was not questioned. He admitted writing the letters to I. r. Kellogg, president of the company One of them was unsigned but that he said was an oversight.
 MT Kellogg was then sworn. He stated in response to questions Dy At torney Root, counsel for s. F. Will Hams. prompted by Attorney Bronson, counsel for Mir Rice, ct al., that Mrs Mary B. k. Munson, his wife's moth- CT and sister of the late F. B. Rice, was paid $40 week up to the time of Mr Rice's death. How long she had been paid this sum he could not say, but it was before his time, some five years ago. Why she was paid 1t he did not know. He only knew that when Mir Rice died was another thing he did not know. ell only knew that it was paid by Mir Rice's direction and usually in cash. Mrs Munson was not an employe of the company, hut she was director. Mir Kellogg how ever. eventually admitted that the money was paid as anticipated diyi- dends and if her dividend did not to $40 week the shortage was paid her just the same and charged against Mir Rice's salary ac- count. Mir Rice had similar ar- with his other sister. Mrs s. F. Williams, and at his death this payment also ceased. Witness was under the impression that Mrs Mum son is lightly indebted to the company but mainly for merchandise. How much he could not say. but the ac- count ran back a number of years and Mrs MunsOn is not aware that she owes the company.
 Mrs Williams. unlike Mrs Munson, Is not a stockholder or employe of the company, and why Mir Rice paid her weekly sum witness could not say As to the financial standing of the company now, Mir Kellogg said that dividend has been declared for 1905 by the directors but not paid yet.
 Mir Kellogg stated that he has had many conversations with Mir Rice about the company's stock and in all of them Mir Rice never said anything why witness should not buy all he could, until after he had heard that witness did buy some of the Dr North stock Then he said, and very angrily 1t that. that he should have let 1t go nto the family.
 In the letter dated January %. Mir Rice informed witness that ''the fam- ly" had decided to treat him as he lad set out to treat them, without and that he might as well onsider himself discharged from the of the company as his res gnation had been asked for by the ,oard of directors by which he meant lis own board of directors.
 Tn the second letter. the unsigned ne. Mir Rice bade Mir Kellogg he care
 u W nt rdt ittbiN- ng F. E. Rice and he would have him now that he was dealing with a dif- erent man from what his father. the ate F. E. Rice was. Any rash state nents witness might make about his | ather's honesty he would call him to eeount for and he defied him to prove | i'm anything but an honest man.
 At one time. the afternoon before he annual meeting. everything seem il to be almost settled. Mir Rice | merely wanted to be director and | or the remaining part of the year
 resident at q nominal salary. His rhole purpose was to have his branch f the family represented on the 1i- ectory of the company. If that could e done he agreed to give Mrs Num- on a proxy on one-third of the 4UD bares and bond to assure witness hat he would not be disturbed in his osition. Papers to that effect had cen drawn up but were not executed.
 losing his testimony Mir Kellogg tated that the method of conducting he affairs of the company is the same ow as 1t was in the Y. B. Rice's
 me. and that tho concern Is more