The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1940-04-23

heSSOnS cheaper IMAM MCheSSOn
could.
Merger Lost Money
1t was the merger between these
two companies which caused Girard
and Company investors to lose their
money in the stock they held, Phil
lips said, and added nobody lost a
nickel on Girard and Company be-
fore the merger"
Philips was asked by Atty. Corbin
if he was ever told that McKesson' S
was lin the red" and he replied in
the negative. He said that George
E. Dietrich, Coster's brother, had
testified that Coster told him Diet-
rich) when they were alone the firm
was in the red"
In response to questions the Wa
terbury broker said that the whole
idea of merging the two firms was
Coster's. He said that he or nobody
else, as far as he knew, urged Coster
to put through the deal nor suggest
ed it to him.
Phillips told the story of how he
became director of the Girard Co,
He said that a representative of R.
F. GriggS Co. had been invited to
serve as director and that he had
been selected. He said that Horace
Merwin and G. Barnum Seeley, both
OF Bridgeport, who, allegedly, rec
commended Girard Co. stock with the
result that he became involved in
the present case, also became direc-
tors of the firm.
Reiterates Faith in COster
Phillips reiterated yesterday after
noon testimony that he gave in the
morning concerning his ideas OF
Costers liability. He said that he
thought that CoSter was one of the
smartest men he ever met in his
life. He said that Coster always had
the answer before one finished a
sentence and never had to have a
question put to him twice. He said
that Coster dominated all directors
meetings he attended.
1t was truly waterbury Day" in
the federal court yesterday. With
Phillips teStifying in his own behalf
and the trial being halted in its reg
ular procedure to permit Theodore
Lilley of Watertown and Waterbury
and Charles L. Campbell of Hart
ford, formerly of Waterbury, to tes-
tlfy as character witnesses for
Phillips.
Lilley And GOss
Ted" Lilley, one-time Yale foot
ball star and son of a former gov
ernor of Connecticut, said Phillips
reputation was of the best. Mr..
Campbell gave similar testimony.
The name of John H. Goss, head
of the ScoVill Manufacturing Com
pany, was even mentioned. Mr..
Phillips said that ne had been asked
to try to get job in the Schroeder
Valve company, subsidiary of SEQ
Wills, for Leonard jenkins, a rela-
tive of Coster'S and that he did. The
job was never Forthcoming, however.
Phillips admitted that he wrote
letters to close friends urging them
to buy Girard ana Company stock
as well as American Founders.
He said he had been completely
sold on the stock as good gam
BILE" and intimated that he wanted
to have his closest friends get in on
a good thing"
AS reported in yesterdays late
editions of The Democrat Phillips
said that he liked Coster so much
that he sought for months to get a
picture of him to hang in his own
private office. He also said yesterday
that he regarded CoSter as some
what off the edge insofar as "the
essence of refinement was con-
cerned," but that he had to like the
man for his ability just the same.
Phillips said that he entertained
Coster and that he had been on
Coster's yacht three times.