The Waterbury Democrat., 1938-04-11

have been questioned or Subpoenaed. Larry Doyle and Edward Grady are expected to be among the clerks called tomorrow.
 May Recall Some
 In addition to these two, MT. AL corn will undoubtedly recall several of those who have made appear ances during the past sessions. Still on the waiting list is Thomas F. Mo- Carthy, former chairman of the board of fire commissioners, who re- signed in the face of the depart ment's greatest shakeup last week. It is expected that he will be ques- toned with regard to the numerous appointments, promotions and re- tirements which were made.
 After its intense check of local conditions, the jury is expected to swing back to the lobbying angle, which held their attention during the earlier weeks.
 Aftermath of Probe
 Creditors of the defunct Office Supply Company are expected to in- stitute civil action for $500 against the City of Waterbury and Control Ter Sherwood L. Rowland as a means of collecting a debt which the city allegedly owes the Office Supply Company for merchandise delivered during 1887.
 Attorney A. L. Finkelstein, ap- bearing for creditors of the com- pany at hearing before Referee in Bankruptcy Walter F. Torrance was given permission to institute the &C., ton if other means of collection are unavailing. Attorney Marcus Weis- man was appointed trustee Of the concern.
 Creditors Meeting
 Referee Torrance conducted the first meeting of the creditors of the Office Supply Company today. Prior to January 1 the company had transacted considerable business with the city, and its officers, G. Edward Palmer and Miss Carolyn Cozza have been quizzed by the Wa terbury grand jury in connection with these transactions.
 MT. Palmer, president of the con- cern was the only officer appearing at the hearing before Referee Tor rance this morning and he was questioned at length by Attorney Finkelstein. The latter demanded that Miss Cozza, as secretary of the concern and Harlow E. Pease as a director. be called to a future meet ing of creditors.
 Other Suits In View
 Should Attorney Finkelstein in- stitute suit against the city to col lect the $500 due the Office Supply Company, that action may be the forerunner of numerous other suits by other creditors whose 1887 bills have not been honored as yet. Con- troller Rowland has refused to sanc- ton payment of bills totaling $780, 900, for which demands are on hand. It is claimed that funds are not available for the pills.
 "The money is due from the city for the merchandise which has been delivered" said Attorney Finkei- stein to Referee Torrance, and it doesn't seem fair that the creditors should await the city's authorization of payment of the bills" He then suggested that he be empowered to institute the action.
 Books Before Court
 Books of the Office Supply Con- pany, which have previously been scanned by the grand jury, were be- fore the bankruptcy court today for further examination. Attorney Fin kelstein sought and obtained from MT. Palmer partial admission that high salary payments had been a chief reason for financial straits of the company.
 It was shown that he as president received a salary of $6,000 in 1856 and $500 to $6,900 in 1887. He also admitted that he owed the company $1,757.O3 which amount he had drawn from the company's accoun' during the past year for personal obligations.
 Salary of Secretary
 Miss CozZa, secretary ot the cor ooraVlon, recelved a salary of $l,5U. 70 $l,UJu m 1856 and $2,oU0 to $2,6oC n 1857. Personal bllls of Miss Cozza were also paid from the corporation cneck book, but MT. Palmer salo mat corresponding amounts were deducted from her salary.
 MT. Palmer said that he first realized that he must file bank ruptcy papers early in March. The application was filed March l2. MT Pease, who is MT. Palmer's father in-law, and who is a director Of the corporation, is now in Florida. MT Palmer said that MT. Pease did no' look over the corporate books al any time during 1887. He said that Miss Cozza made out all the cheeks and had charge of all the books. Checks For Salaries
 The last five checks issued by tht corporation before petition of bank ruptcy was filed, were for salaries. MT. Palmer admitted that he ane the other affiliates of the Office Supply company are now engaged :! in the operation of another office II the Lilley building which was thu location of the defunct company. H' and Miss Cozza and James Moor are operating concern which is tt be known as the Office Equipmen company. MT. Palmer said that h. has not as yet drawn any salary that Miss Cozza gets about $l5 o | - !. railroad station here, showing hi credentials which said, Tamil. name, Hitler; Christian name