The Waterbury Democrat., 1940-04-30

brother of Duncan c. Rose, 8 for mer commander of the post.
  aren't you? said Kaufman.
 Atty. Corbin was on his feet shouting that the question was in- sulting.
 Atty. Kaufmann replied that Atty. Corbin hadn't been too considerate in his remarks throughout the case.
 The battle went forth along this line with voices being raised to a higher pitch on each word that was being uttered.
 Judge Moscowitz was trying hard to stop the verbal battle but Atty. Kaufmann kept talking.
 Judge Kaufmann finally said in loud tone.
 That's enough. Courts adjourn ed until tomorrow morning."
 Believed In Coster
 Phillips at the close of his direct examination stated again and again that up until the time of the crash in 1888 he believed in Coster, the alleged arch swindler in the case, who committed suicide. As a result of hls faith in Coster he said he induced his own mother, his wife, his mother-in-law and his brother in-law, Kenneth Wheeler, to buy McKesson Ltd and other McKesson stocks. He said that Wheeler had some money to invest and that he bought 50 shares of McKesson's Ltd and two shares of preferred for him. The brother-in-law wanted 10 shares of preferred he said, but only two shares of the preferred were available. He later procured eight extra shares for him and this was only three or four weeks before the crash.
 Phillips said that he was con- stantly buying McKesson and Rob- bins stock himself and was not recommending stock to his relatives and friends that he was not buying himself. He said he was in the minus himself to the extent of $35 ,000 or $45,000 on his purchases of McKesson and Robbins in Cana dian Ltd. McKessons of Md. and McKesson of Conn.
 He said that he always held the stock and that the only time he sold any McKessons was when he needed money to meet his income tax and for other personal reasons. He always bought back what he sold as soon as he could, he said.
 He told of holding 2O0O shares of MckesSonS of Conn. common, which became 4,000 of McKesson of Nary land.
 He said he now holds 2,100 shares of McKesson which stand him in for 5000.
 Phillips also testified that he be- 1ieved that he was the third larg- est holder of stock in McKesson. Ltd., and is still the holder of that stock.
 On The "Up And Up"
 Phillips then said that the Me- Kesson Ltd, directors of which he was one, had no suspicion that any, thing was wrong and that all be- lieved that Coster was Ion the up and up."
 He learned of the crash in 1888, over the ticker tape and was the most surprised man in the world, he said.
 He was asked by his attorney if he called Coster and he said that he did immediately and got him.
 Objection by Attorney Kaufman, which wah sustained, prevented Phillips from telling his conversa- tion with Coster.
 Coster then told of the resigna- tion of c. Barnum Seeley Cos ter and Dietrich from the board ot directors at meeting of McKesson, Ltd, held at Bridgeport one week after the crash. He and Horace Mer- win wanted to resign and wrote out resignations he said but their resig- nations were tabled.
 When asked If his resignation was finally accepted and if he was a di- rector of McKesson, Ltd, today, and told to answer ives" or mo-. Phil- lips made the startling reply T act. llally do not know" Phillips denied that he ever en- couraged E. N. Decker, Griggs Com- pany salesman to miSrepresent the actual status of the Canadian Mo- KesSon's. Decker testified early in the case.
 Phillips then told of a big banquet that was given for him after the McKeSson crash by R. F. Griggs and Company employees, and said that Decker made speech at that ban- quet and spoke in most laudatory terms concerning him. Awaited Developments Phillips also testified that all the directors of McKesson's Ltd, were always looking for action and the start of manufacturing in the Can adian plant but no action was ever forthcoming.
 We were awaiting developments | and proposition from CoSter but it never came" said Phillips.
 The local broker said he never lost faith in McKesson's, Ltd, and hasn't yet. He said he never signed the minutes of the company to help give Coster color and that he was Investigating his own company, his relatives and that of his friend in a proposition he believed a good one.
 There was considerable testimony yesterday afternoon on the matter of financing McKesSonS' from England. Phillips took the stand for direct ex- animation 8 week ago last Friday and spent practically seven days under direct examination. X