The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1940-04-23
Phillips Ends With
Denial Of Any Intent
Continued From Page -

ended when Federal Judge Irving
Moscowitz had pounded the court
back into order.
The argument started when Pros
ecutor Kaufman interrupted
series of questions being given to
Phillips by his lawyer with the
statement, Il object, Your Honor, to
Mr.. Phillips giving courtroom lee
lures. Let him stick to the evil
dence.'
This brought hot retort from
Attorney Corbin who maintained
that his client was charged with
very serious offense and that the
questions he was giving him were
necessary to establish a proper de-
Tense. Both lawyers went at it hot
and heavy for several minutes be-
fore Judge MoscoWitz could silence
them and restore order.
Full Court Room
There was full court room for
the trial this morning with special
seats being reserved for IS members
of the Brooklyn Law School. Two
of the Institutions professors, DR.
William Richardson, Dean, and Pro-
lessor jerome Prince, sat on the
bench with Judge MoscoWitz.
Most of the examination of the
witness this forenoon dealt with
auditing reports by the I. G.. Ran
kin and Price, Waterhouse firms.
Phillips admitted on the stand
that an original figure of 100000
in a Rankin audit report had been
increased to 100000. This was an
item set down for intangibles in the
McKesson company-good will,
name patents, etc. At a meeting at
tended by Phillips, Horace Merwin
and c. Barnum Seeley, Bridgeport
bankers, and Rankin the witness
said that they decided to boost the
intangibles amount from 100000
to 100000.
He told the court that this mat
ter was gone over carefully and tina:
there was full discussion of what
value intangibles in such a concern
as McKesson's should take. He said
that it was his claim that while a
building can be easily duplicated, it
takes time and morey to duplicate
a business name.
Knew 1t Was Old Co.
He said he knew that the Nc
Kesson name was 100 years old and
that it's reputation was of the best
here in this country and in foreign
countries. His own personal opln-
ion at the time, he asserted, was
that good will, patents, trade names,
ETC., of McKesson's were worth up
to a million dollars, but that they
finally settled on figure of 100000.
He added that purchase of a trade
name like that one under one mil
lion dollars was a bargain.
He also testified today that it had
been agreed by the directors Of the
Girard firm that after the merger
F. Donald Coster was to head the
new firm. 1t was to be 81 100000
going business, he said.
Profits of the McKesson company
were being discussed when the
courtroom was thrown into uproar
by the bitter battle between counsel.
Mondays Late Testimony
Coster Musica, alleged master
swindler in the $21,000,000 McKeS-
son case came TO Waterbury just
once, Mr.. Phillips testified late yes
terday afternoon before Judge Irving
MoscowitZ and a federal court jury.
The man who was rated as run
ming mate for the famous Ponzi
went to the Office of the R. F. Griggs
company in this city either at the
end of 1886 or the first part of 1887.
Coster wanted to raise 100000
so that the Girard company could
take over McKesson s. Phillips tes-
titled that Coster said McKesson's
reputation was excellent, but that its
executives weren't running the bus
mess in the way it should be run to
show a profit. Coster argued, so the
witness said, that 1t would be a mas
ter stroke to take over McKesson's
for Girard and Co. and that the
could be procured with the
help of brokerage firms who were
selling the Girard stock. Coster said
he believed he could manufacture
products being produced by Nc