The Waterbury Democrat., 1940-05-16
Assistant U. s. Atty
 Corcoran Plays Two
tcontinued From Page D

had listened to the progress of the case. This imitation, he charged, acc tually took place tn the Bridgeport oifices of Mckessons where the en- tire project was conceived and nur- tured.
 Continuing his recapitulation of the case as the government had presented 1t Corcoran stated that all reports gave fictitious pic ture of the McKeSson set-up and that there was a conspiracy to vio- late the mail fraud statutes.
 A conspiracy, said Atty, Corcoran' is not something you will find in a story book. There wasn't an agree ment signed in blood by the deiend- ants at the Bridgeport office ot McKesSons, he said.
 "When you have deHndants liVing on the upper side of the railroad tracks you have a different proce- dure from that of the pirates oi old or the lower groups, shouted the government prosecutor The Brldge- port group had common purpose There was no mystery or vagueneSs as testified to in this case, The sale Of McKessons, Ltd, started Tn 1927 when McKeSsonS of Connecti- cut was in existence and was rep- resented as a going concern, This was given as a sufficient reason for It's expansion through creation ot a Canadian branch
 Advanced Money Co COster
 Corcoran told how the Bridgeport Trust company advanced the late r. Donald CoSter loan of $l98000 and that for the first time in it's banking history 1t gave a letter Of credit, one to the Girard company, which rapidly became a favorite customer of the Bridgeport bank, so the government alleges.
 Corcoran also charged that Horace E. Merwin, defendant, and c. Barnum Seeley, Bridgeport banker, took stock in the Giard company after the loan, but carried 1t in the name of T. L. Watson Co, a brokerage firm. The real reason for this, said Corcoran, was that Girard Go. didn't enjoy too good reputa- ton so Merwin and Seeley didn't want their names linked with 1t in any way. There were also rumors of bootlegging mentioned in con- nection with Girard Go, and the Bridgeporters knew about this, so Corcoran said.
 He said that Phillips was in on much of this, but that he didn't know about the bootlegging rumors at first and that Merwin didn't tell Phillips all he had heard about Girard Go. He said that later the three discussed these same rumorS and laughed them of,
 Underwrote Stock of Co.
 Continuing his explanation Cor coran related that the Phillips and Meswin firms underwrote stock of tho Girard Co. and that R, F, Griggs got a $20,200 profit out of the deal He said that these defendants re willing to sell stock in Girard Co., despite its reputation,
 lie attacked the excuse that he said the defense offered for such action, namely, that they liked Cos ter so much and had such admira- ton for him that they wanted to back his old firm. This was no rea- son for concealing bootlegging ruTnors, said Corcoran.
 kT'he financing of the Girard firm was merely stepping stone to big ger things, so Corcoran charged. He said bigger money loomed through McKessons and that 1t was gen. erally known in financial circles that McKeSsons of New York was not too solid so It was decloed to bring in the Girard company to inject new blood.
 From then on the much discussed stock prospectus issued by Mir. Phil