The Waterbury Democrat., 1939-04-01
Waterbury Broker Is
 Linked With Coster
Continued from Page D

NdJ 4Al6t tkkC Ndlld0t64 NOIs poration was to be and would be organized for the purpose of ex- tending the trade of the Connect icut Corporation in the Dominion of Canada, Great Britain, the British Colonies and possessions.
 (b) That the Canadian Cor poration would manufacture in Canada for distribution through the British Empire certain prep- arations and products, to wit, Al- bolene, Analax, Calox Tooth Powder and divers other prepara- tions and products then being manufactured by the Connecti- cut Corporation.
 Co That the Canadian Cor poration would at once take over all of the business formerly en- joyed by the Connecticut Corpor- ation with Great Britain and her possessions with the addition of freedom from import duties.
 (d) That the proceeds of the sale of the stock would be used to equip a factory in Montreal for the use of the Canadian Corpora tiOn.
 (e) That the officers and directors of the Connecticut Cor poration would assume the direc- ton and control of the Canadian Corporation without further conn., pensation and that said officers and directors were and would be responsible, competent and fully qualified to carry on the intended business of the Canadian Corpor . ation.
 All of which said representa- tions were false and fraudulent to the knowledge of the said de- fendants.
 It was further a part of said scheme and artiflce to defraud that Philip M. Musica, and the following named defendants, would occupy and hold certain positions of trust as officers and directors in the Connecticut, Maryland and Canadian Corporations, to witt
 Company Officers
 Connecticut Corporation: Frank D. Coster, president and rreasur- CT, director.
 George E. Dietrich, secretary and assistant treasurer, director.
 John H. McGloon, vice-presi- dent.
 Horace B. Merwin, director.
 R0wley w. Phillips, director.
 Maryland Corporation: Frank D. Coster, president, director.
 George E. Dietrich, assistant treasurer, assistant vice-president, vice-president.
 Horace B. Merwin, treasurer, director, member of executive committee.
 Rowley w. Phillips, director, member of executive committee.
 John H. McGloon, vice-presi- dent, assistant secretary, director.
 Canadian Corporation: Frank D. Coster, president, treasurer, director,
 George K. Dietrich, secretary and assistant treasurer, director.
 Horace E. Merwin, director.
 Rowley ". Phillips, director and would represent and pretend to tho victims that they were possessed Of his necessary quail 1icatiolls to hold and occupy such positions; that they were familiar with and would perform and ex- ercise faithfully and competently the duties, eDs:gations, powers, prerogatlyes of silcn positions to check the financial soundlless or the banking depositartes ut Inc said corporations, 10 insure against known and probable fiSss of loss the assats of the said cof~ porations, to verify and test the accuracy and authenticity of( ac~ counting and other records of tne said corporations, to oirecB ti.&. use of the monies and props ~ pf the said corporations to ne acy complishment of the Legitimate purposes thereof and otlel wise yo supervise and direct the ai1sns of the said corporations to Ala accomplishment and effectnaAou of the legitimate corporate pur- poses thereof, as from time 10 time represented to the victims; all of which representations and pretenses were false and fraudu- lent, and made for the purpose ot inducing said victims to part with their money and property.
 TO Get Salaries
 It was further part of said scheme and artifice to defraud that by reason of holding the positions aforesaid and in re- turn for the purported per- formance of the duties and oblt-' gations thereof. the aforemen- toned defendant-officers and di- rectors would falsely and fraudu- lently receive from the victims fees, salaries, bonuses and com mission and other compensation to the Grand Jurors unknown.
 It was further 6 part of said scheme and artiflce to defraud that, to infiate the assets vf the Canadian, Connecticut and Nary land Corporations and to create and continue the false ard fraud ulent impression and belief that the said Corporations were en- gagged in large-scale and legiti- mate and profitable operations,