The Waterbury Democrat., 1940-04-24

ness. Among some of the names
mentioned were those Of Bauer &
Black, which at the time was big
ger than McKeSson's and was mem
toned as purchase or merger;
johnson q johnson, Lavoris, Koly-
nos, and even the United Cigar
Stores were included In Coster's
plan for q gigantic drug firm en-
pire.
Mr.. Phillips stated that these con-
versationS were to be kept secret
with only Horace Msrwin, Bridge
port banker who was unable to be
present at that conference, let In on
them. In relation to the secrecy Mr..
Phillips said that only Alfred Hart,
his partner in r. F. Griggs knew
about them. He mentioned how he
was stopped on a waterbury street
one day by a local banker who asked
him about rumors that McKessons
was about to embark on a program
Of national expansion. He said he
was forced to deny any knowledge
Of the scheme.
Grows Staggering
In a letter to Merwin in which
Phillips related details of his ses-
sion with Coster he said among
other things: This whole affair is
getting so big that 1t staggers my
imagination. Coster is going along in
such big fashion, you can't tell what
will happen. All want to do the
right thing and be on the lookout
for the right chance"
In the course OF testimony to-
day Phillips said that when he was
executor of big Waterbury estate
he invested funds in the McKesson
company.
In response to a question he said
that the big deals mentioned by
Coster all petered out.
When court opened this morning
there was one juror absent, but he
appeared shortly and the session
proceeded rapidly.
Another brief battle between Atty
Corbin and U. S. Attorney General
Kaufman enlivened this morning S
session for both court and specta-
tors. 1t was only stopped when
Judge Irving Moscowitz interviewed
and In no uncertain terms warned
both that they would have to cease
further outbursts like that.
Another Counsel Clash
The prosecutor broke into Atty
Corbin's questioning of the witness
Mr.. Phillips, with remark that
Corbin was trying to lead the wit
ness and testify for him. An inter-
change of remarks followed with
finally an outburst from Kaufman
about something that Corbin said
could not be heard by spectators or
even at the press-tablo.
The prosecutor roared out: ''That's
a dirty remark. Such remarks as
these are hardly becoming a duly
qualified attorney. -"
Another low remark brought more
wrangling with Judge Moscowitz
finally banging the battling lawyers
into order and warning them about
repititions.
Government men were also re-
ported to be in attendance at the
rail this morning and it was also
rumored that one or more had been
present taking notes as witnesses
testified for some time. No one SEEM
ed to know why they were present
and no one could offer any ex-
PLANTATION Of their presence, whether
1t was for checking On income tax
es or for some other purpose.
Tuesdays Testimony
Rowley w. Phillips reiterated time
and again in the United States
Court in New York yesterday after
noon the statement he made shortly
before p. m. when the court ad-
journed for the noon recess to the
effect that he never planned In his
own mind or conspired to with
others to take money out of the
pockets of the public.
The afternoons questions differed
little from the original question
asked and were answered in the
same fashion. The local broker
stated that he, The r. F. Griggs Co.,
the Bridgeport Trust Co. and others
had the utmost confidence in the
I McKesson stock after the firm nler-
ged with Girard and Co.
He said that ne did not plan in
any way to rob the public and stated
that he was SO confident in the mer-
ger that he bought share after share
Of the stock for himself almost up to
the time of the crash, when the firm
blew up and his arrest and the ar.
rest of four other men followed.
He said that r. F. Griggs Co. con-
sidered its best asset its satisfied
customers and always worked to
protect its clients. There was never
a falisfied report issued by the
Griggs Co. he said and no informa-
ton was ever held back from clients.
The decision of the Griggs Co. to
go into the deal with the Bridgeport
Trust Co. and others came only after
thorough Investigate ton of McKes-
son and Robbins. Every audit made
in connection with either of the
firms which merged, he said, gave
strong evidence that the merger was
a sound business proposition.
When asked by Atty Corbin, his
SouAloCA, o4tC1 VCAuAb u I1Ic dulOuLL
Of stock he bought:
"You wouldn't buy this stock to
cheat yourself. would you?"
II hope not" Mr.. Phillips replied.
Phillips then told OF Coster, the
head Of the merged firm doing the
same thing that he had been doing,
pouring his money into the venture.
Everybody he said, had the utmost
confidence in the outlook and that
the final result Is almost under
Standable.
At one point when Judge Moscow
itz tried to stop the battling attorneys
he put up his hand and said,
gentlemen"
"You should have said gentleman
instead Of gentlemen your honor,
said Atty. Corbin indicating that he
was the gentleman"
"The word gentleman would be
correct" shot back the United States
Atty, and looked glaringly at Atty.
Corbin and said in a loud voice: