The Waterbury Democrat., 1940-05-03

the minutes of the grand jury. Judge Grover Moscowitz had previ- ously ruled at a session in chambers that the defense might see these minutes but that they could not be presented in evidence nor could the defense use them without the judge first deciding whether or not the trial jury should hear their con- tents.
 To Attorney Corbins motion U. s. Attorney Kaufman objected and stated that U. s. District Attorney John T. Cahill had suggested and recommended that the minutes be left in his offices and that inspec- ton of the same should be made there rather than in the open court room or in defense counsel's offices.
 Judge Moscowitz agreed to this and adjourned court until 12 o'clock so that defense counsel might ex- anime the minutes. At noon he again adjourned court until 2 p. rn., at which time 1t was expected that Attorney Corbin would begin his re- direct examination of his client.
 Rowley W. Phillips, in the course of 8 gruelling cross-examination by United States Atty. Irving Kauf- mann yesterday afternoon admitted that the largest salary bonuses and dividends he ever collected on one account in his career as @ broker were through McKesson and Rob- bins.
 The United States attorney also brought up again the question of what favors Coster, the alleged mas ter swindler, who committed suicide as 0 result of the $2i 100000 con- spiracy case, did for Phillips.
 "Coster did you a great favor in 1928, didn't he?" asked Kaufman of Phillips. That's when you got your old friends to buy stocks"
 Phillips did not get & chance to answer as Kaufmann asked If 1t wasn't so that Coster sold him stock in McKesson's, the real value of which was $37 1000 for $i5,480.
 You benefited $2i, ,260 in 1928 through Coster, didn't you7" asked the government attorney.
 Lost in 1928
 T figure I lost through my deal- ings," Phillips replied.
 Phillips held the stock he bought and lost money but admitted that if he had sold 1t at the time he bought 1t he would have made the amount estimated by Atty. Kauf- mann.
 Referring to Phillips testimony that he thought Coster was one of the greatest men in the world Kauf- mann asked the local broker fl he thought Coster was one of the great est men in the world because of "the stock gifts and commissions he re- ceived through Coster or Coster's influence"
 Phillips replied that the govern rnent's attorneys question was rhet- orical.
 Kaufmann then said to Phillips. You told us of all the people, who liked Coster but you didn't tell us of the people, who disliked Coster."
 T don't know of many people. who didn't like Coster," Phillips said.
 Didn't Like Coster
 He later admitted however that there were some people, who didn't like Coster.
 Most of the afternoons testimony centered around the McKesson deal- ings of A. W. Suprenant, 6 man in- troduced to Coster by Phillips, who 1t is claimed was designated to bring about the purchase and con. trol of Caron and Go. of London and New York, internationally known perfumers.
 It was claimed by Atty. Kaufman that in November of 1929 R. r. driggs and Go. of this city entered into an agreement with Suprenant, whereby if the Caron deal was con- sufnated Phillips would receive IS per cent of the suprenant commits sion.
 Phillips said 1t was his firm that would receive the commission and not he.
 The government attorney then called attention to the fact that at the time Phillips aliegely entered into the agreement with Suprenant he was c director in McKesson's and held q vote on the matter of the right 10 determine whether McKes- sons should enter into . deal with suprenant.
 "You realize you could play both sides, don't you7" said Atty. Kauf- mann to MT. Phillips.
 If the matter came Up for 6 vote before McKesson's (which 1t didn't)" MT. Phillips replied.
 T would not have voted. situa- tons like that have developed be- fore and did not vote."
 The balance of the days testi- mony had to do with the Suprenant agreement and its alleged cancella- ton and c threatened suit by Sup. renant against Phillips and McKes- sons, which has been repeated many times before.
 Phillips did not have to pay in the matter but it was claimed that Me-