The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1940-03-14

letter said, II would like to intro
duce Our Mr.. McGloon."
Mcneil, 81, Is q former Bridgeport
publisher, state senator from 1910
to 1912, Democratic national COM
mitteeman from Connecticut from
1929 to 1896, former chairman of
the state advisory board Of the PWA
and friend Of President Roosevelt
and former Attorney General Homer
Cummings.
The size Of the check allegedly
cashed by Mackenzie was not dis
closed, but Dietrich had testified
that cash allotted to the slush fund
varied from $500 to $4,000 and that
one payment out Of II charged to
mailing cost re cod liver OIL" was
for $4,000.
Mackenzie G. o. p. Leader
Mackenzie, Of Bethel, Conn.,, was
the ally Of the late Republican boss
]. Henry Roraback; former federal
prohibition director for Connecticut,
state labor commissioner from 1921
to 1929, and one Of q score arrested
In connection with the Waterbury
scandal. He pleaded guilty and was
sentenced to nine months in Jail
last August. He was accused Speci-
t1cally Of directing legislative lobby
In connection with the Waterbury
corruption. In addition, he also
lobbied for McKesson and Robbins
in the 1935-37 general assembly at
a salary Of $500 and $1,000 for
expenses. 49,
In the letter to Mcneil, read to
the jury, Coster commented:
I'm the future I hope that we can
avoid disputes with inexperienced
government employees who, fail to
see the practical side Of our prob
lens."
Total Paid Mcneil
The total amount Of payments to
Mcneil, which he said continued up
to just month before exposure Of
the McKesson and Robbins swindle
on Dec. 6, 1888, was $28, 583.37, Diet
rich testified.
In addition, he said, $4,000 was
paid out Of the slush fund for poll
tical ACTIVITIES and lobbying.
Assistant U. s. Attorney irving r.
Kaufman put into evidence As
checks dated from Jan. 20, 1885, to
Nov. 4, 1888, which Dietrich said
were paid directly or indirectly to
Mcneil. The payments, he said were
made through the Armac Corpora
ton as a dummy procedure to
"cover" Mcneil.
Dietrich already had told how
Coster, as head Of Girard & co. and
later as president Of McKesson and
Robbins, sold vast quantities of
alcoholic preparations to prohibit
ton era bootleggers and created
dummy subsidiaries in order to in
fate the drug company's sales and
profits, singled out McGloon today
as an accessory In establishment
Of the slush fund.
Slush Fund Covers Sins
"This slush fund covered a multi
tude Of SINS" Dietrich said. 1t was
for payment Of things we didn't
want to appear on the books Of Nc
Kesson and Robbins. It was a secret
thing, and all payments were made
on pink tickets okayed by my
brother.
"He told me in 1882 that the fund
would be necessary and he called
McGloon to him and said, set this
fund up He told McGloon to bury
It somehow on the books under ex-
pense item. This was done to keep
from making payments by check"
The fund finally was established
in 1885, Dietrich said, and the
money allotted to 1t was to vary
from $500 to $4,000 a month. But
one pink ticket, made out Sept. %.
1886. for mailing cost read cod liver
OIL" he testified, was made out to
"cod liver advertising mailing"
"McGloon made them out at my
order" Dietrich said.
Debt Crossed OF
Earlier, Dietrich had testified that
McGloon got into debt to him to the
extent of '.nearly $4,000, none Of
which was ever repaid"
Later, the witness said, he went to
his brother about the McGloon debt
and was told, mark It off-write it
knows too much"
Dietrich, who was assistant vice.
president and treasurer of the drug
arm. was telling what the govern
ment called the "inside story" Of
the vast swindle which drove Coster
country was headed towards stable