The Waterbury Democrat., 1938-12-16
and the department of justice.
 Asks Rearrest Of All

Asks Rearrest Of All
 The U. s. attorneys office asked for the re-arresC of all three men and said it would demand bail of $100,O00 each.
 New and increasingly fantastic facts of McKesson and Robbins acc tivities kept turning up as the Investigations, progressed. Federal authorities sought a possible con- nection between the firm and the illicit alcohol traffic of prohibition days and illegal gun-running of more recent years.
 Federal agents were Investigating reports that Musica- -CoSter was the financial packer of the munitions ship Mar Cantabrico which was captured almost two years ago by the Spanish Rebels as it attempted to run the blockade to LoyaliSt Spain.
 Two Children Missing
 The attorney generals disclosures left only two of the five Musica children unaccounted for, the sis ters Grace and Louise. After Philip had borrowed $1 100000 from g diff ferent banks in 1912 on a cargo of hair, ostensibly ready for manu- facture into switches" of that day, which turned out to be virtually worthless, the girls fled with the family.
 When the fugitives were arrested aboard a ship about to leave New Orleans for Central America, Louise made an unsuccessful attempt to throw overheard S18,000 in currency which she was hiding on her per- son.
 Federal officers here arrested Musica- -Vernard in his Brooklyn home before he could make good what appeared to have been an es- cape attempt, and agents at New Haven, Conn.,, were instructed to re- arrest Dietrich and Coster.
 Vernard'S arrest followed a re- port to federal officers that an au- tomobile in front of his house was being quietly filled with baggage. Agents went to the home and sought entrance, put Vernard re- fused to admit them. They gained entrance by jimmying open a side window, and took Vernard in cus- tody.
 Detective Lieut.. Neil Winberry was in charge of the officers sent to arrest Vernard for the federal authorities. He found the house a two-Story red brick structure in comfortable residential section - locked tight and guarded by a vi- cious Chow dog.
 While Winberry was jimmying the window. Winberry held it open, however, while other officers, revolvers drawn, guarded other sides of the house.
 After Winberry repeated his threat to start shooting, Vernard yelled, wait minute, wait a min ute" and unlocked the front door. He was hustled away.
 Another development was the dis closure that Coster had been under indictment as Philip Musica for three years after he became head or McKesSon & Robbins. The indict- ment was dismissed, according to police, because authorities believed there was no hope of ever appre- hending Musica.
 Dr. Jekyl-Mr. Hyde
 The first inkling that Coster might be 8 sort of Dr. Jekyl-Mr. Hyde was the result of the sharp memory of 8 specIa1 investigator of the attorney generals staff, Henry UnterWeiSer. He recognized CoSter aS 8 William Johnson, who had been employed as special inves- ti0ator in the same office from 1916 to 1920.
 Philip Musica, after being charg- ed with perjury in connection with a murder trial, had somehow worm- ed his way into the then attorney generals office. Today Unterwei- ser identified a photograph of Cos ter as William Johnson" and said, "He and worked on investigations of foreign spy activities"
 It was known that Johnson was Musica, and to complete the iden- tification authorities had checked Musicals measurements, obtained from Auburn prison, with Coster's, The unmasking of Coster as a man with an unsavory past was the second blow to fall upon his asso- ciateS in Wall Street. His firm, third largest of its kind in the world, with S87 7,000, ,000 listed assets and a $174,- 100000 annual business, had failed two weeks ago with an $18,000, 900 shortage. It was shortage not of cash but of tangible goods - huge warehouses stocked with drugs that had been carried on the books but did not exist.
 Coster Admired, Respected
 The enigma of "Coster" was com parable only to that of his com- pany.
 He had the admiration and re- spect of the leading financiers; they had lent him $20,0O0, 900 and distrib- uted $16,000,00O worth of his firms bonds so that he could expand his business - he had spent three years in prison for perpetrating a cele- brated human hair" swindle that cost his packers more than $1,000,- 900 % years ago.
 He pulled his company through the depression with an untarnished credit rating - his first business