The Waterbury Democrat., 1940-05-03
Phillips Had Tough
 Session This Morning
Continued From Page D

trying to engineer London trans action whereby McKesson's would acquire Caron & O., well kno .. perfume house with offices m bon London and New York This was Q s6,0oo, 900 deal that never material. i1ed. It was handled by Suprenant under Coster's direction who had been empowered to put 1t through by McKesson directors.
 Although the deal never went through Suprenant received S1l5,O ,O0O to prevent, so the government ale leges, suit that the New York broker threatened against Coster and McKesson's for an alleged broken agreement.
 Previously Phillips testified that he did not know about this settlement with Suprenant until long after wards, but Kaufman produced and read letters in which 1t was revealed that the Waterbury broker actually came into possession of this infor- nation within a few weeks after set- clement was made.
 Makes Admission
 Referring to one of them in which Phillips was supposed to have con- suited with Attorney Lawrence L Lewis of Waterbury about the threat ened suit Kaufman finally secured from the witness an admission that he really did know about the settle- ment. He was asked if he wanted tc withdraw his earlier testimony, but said he did not as 1t was his mem- ory at the previous time that he didn't hear about the settlement un- til Q very late date.
 Kaufman produced a letter, dated January 10, 1880, in which Phillips congratulated suprenant on his set- clement. Phillips admitted writing this.
 The background as supplied by the government to the Suprenant episode is that the New York broker and Griggs were both to be in on the Caron deal with the Waterbury firm to get IS per cent commis- sion.. The Griggs company IS said to have broken the agreement, but suprenant refused ever to admit this. On December i3, 1929, Phillips and suprenant were supposed tc have had an argument which result cd in calling of their agreement.
 Kaufman said that Phillips pre- viously testified about the agree- ment and said to him this morning "You didn't care to do business with Suprenant, did you? You didn't like his ways of doing business Is that your belief2 Phillips replied this was his belief.
 The prosecutor continued, "Yet you voted as . McKesson director two weeks later that 1t was all right to do business with suprenarlt"
 Letter Introduced
 Kaufmann also asked Phillips if he had written to suprenant tell- ing him he didn't want ct do bus mess with him. Another letter to Horace Merwin, Bridgeport banker, on the .Ame matter was introduced by the p: .secution, as well aS a letter from Francis T. Phillips, a brother of the defendant, sent to Suprenant, cancelling the agreement with Griggs company.
 It was cancelled, Kaufmann ir- sisted, because Phillips was afraid the directors of McKesson would hear about It. He said that even Coster didn't know about the 0riggs agreement with Suprenant, but found out about 1t later on.
 A letter from Coster to Phillips was introduced. Tn 1t Coster said that the deal to acquire the perfume factory "smells very bad" and that 1t had already cost McKessons q tidy sum to say nothing of worry, time, and energy.
 Kaufman said, DO you under stand he was referring to your agreement with Suprenant?"
 Better to Play Along
 A letter from Phillips to Coster was read in which 1t said, I told (Julian Thompson, for. mer controller of McKesSon's who has since d!ed) 1t would be better to play along with you and to play the game yIu wanted played. :"
 And you played the game the way Coster wanted 1t, didn't you," roared Kaufman.
 Phillips insisted that he used the word fairly" in this letter.
 weren't you always looking for ward for the next McKesson deal?" said Kaufmann.
 "Yes, that's true," replied Phillips.
 He maintained, though, that his attitude towards McKesson business was the same as 1t would Dc to- wards any other kind.
 Grand Jury Minutes
 With the conclusion of cross-ex- Attorney Harold Corbin, counsel for Phillips, immediately moved that he be allowed to inspect