The Waterbury Democrat., 1940-03-12
George Dietrich Gives
 Details Of Big Swindle
Continued From Page 1)

of the defendantS--Rowley w. Phil lips, Waterbury, Conn, investment banker whose company later under wrote a $1,000000 issue of McKes- son and Robbins stock--conferred with Coster about them.
 Coster, who in December, 1888 committed suicide when his identity and swindling past became known laughed off the rumors, Dietrich said. The witness quoted his broth- CT as saying:
 Then They Laughed
 "What we are doing is legal. We are only selling preparations; If they finally land in the hands of bootleggers it is none of our busi- ness. If they want to drink alcohol they'll drink anything - even tur- pentine. Why should we care what happens to the stuff?"
 When Coster put it that way, Dietrich testified, Merwin and Phil lips laughed and dropped the mat ter"
 Phillips In $135.OO0 Deal
 A banking syndicate headed by Merwin and Phillips financed the merger of Girard & Co.,, with Mo- Kesson and Robbins, Dietrich said and made $135,000 on the sale ot McKesson and Robbins securities.
 When Coster was angling for con- trol of McKesson and Robbins, Die trich said, the auditors estimated the drug firms good will at $l00,000 Thinking ahead to future stock issues, Coster asked them to go over the books again, Dietrich said, and pointed out the value of patent rights, copyright holdings and the like. The result was that the good will valuation was raised to $600,000 the witness testified.
 Dietrich was keeping 8 promise made earlier to "tell everything about his brothers career, includ- ing a 13-year masquerade in Wall street.
 Spares No Details
 The witness started at the be- ginning and spared no details.
 The period covered by Dietrich's story took him up to December 16 1888, when his brother ended hi domination of the $85 100000 Mc' Kesson and Robbins company by firing bullet into his head.
 The witness story also covered thu activities of the five defendants Merwin, Rowley W. Phillips, Water bury, Conn.,, investment banker John H. McCaloon of Fairfield, Conn. former vice president and control Ter of McKesson and Robbins, anc Leonard and John o. Jenkins, Cos i ter,s brothers-in-law.
 Dietrich said he changed his naInt after the human hair swindle 1T which he received a suspended sen tence. His brother, as head of ths United States Hair company, haC borrowed $6O0,O00 from 2 differen banks on shipments of hair 1T those days women wore switches which did not exist. The entir. family was arrested on & boat 1T New Orleans and Phillip. the oldel brother, sought to take all the blam' on himself.
 Rejoins Brother
 Subsequently, Dietrich re-joineC his brother as secretary of GirarC 6E Co.,, which, he testified, sold pro ducts popular in prohibition day. because of their high alcoholic con tent. They were purchased in larg' quantities, he said, by persons wht washed them out and sold them fol beverages"
 The company, Dietrich testified sold enough of one high potential hair dress "to float the Queen Mary
 Although stock ih tine company was closed, Dietrich said. Merwir was permitted 10 buy 50 shares al eiOO. 4 "MT. Marsh" got 26 shares he said, and Clinton Barnuln seely grandson Of the late 2. T. naFnuiI Of circus fame, acquired 200.
 Seen afteFWaga, piaLFieh aaded, aB per cent dividend was declared ok these 9Jb Ahafeas
 Ensi1e KneWleAge J pisiEleh spoke from the stand