Evening star., 1938-12-18


iDhich resulted in the arrest of
F. Donald ter-Musicd, presi-
dent OF the firm, and three aides
iDho turned out to be his
brothers. Unedrthed Das
nearly unique crime story a
quarter century long.
By the Associated Press.
NEW YORK, Dec. 17.-Investiga-
ton of the notorious Musica BROTH
ers' biggest and most elaborate
swindle, involving millions of dol
lars of McKesson & Robbins assets,
extended to all corners of the globe
today with emphasis on reported
shipments of arms and ammunition
to foreign powers.
Gregory F. Noonan acting United
States attorney, said he felt conf
dent Federal authorities would de-
velop conclusive proof the head of
the Musica family-Philip Musica
who called himself F. Donald Coster
and became president of the $751;
100000 drug corporation-was actu-
ally exporting war materials on a
large scale
The New Haven (Conn) Register
says it learned on reliable authority
that George Musica-Dietrich told
Federal authorities during question
ing today that he and his brothers
had been forced to pay heavy
blackmail" and that if there was
any money missing in McKesson &.
Robbins, Inc, some of it could be
accounted for in this way.
The paper also quoted its author
ity as saying that it was quite prob
able that some pretty important
names would be linked with the
investigation before it ended.
Like Ivar Kruger, the Swedish
match king, and Serge Stavisky, the
French arch-swindler, Coster- -Musi-
ca-it became increasingly clear to-
day-was no piker. If he made the
beginnings Of his fortune, as Fed
eral authorities believe, in Illicit al
cohol during prohibition, he quickly
shifted to bigger things.
May Have Financed War.
Gun-running and even possibility
that the respected head of the great
drug corporation even financed the
three-year war between Bolivia and
Paraguay over the Gran Chaco bor-
der were regarded tonight as likely
activities for Coster-Musica.
Mr.. Noonan said an important
conference would be held Monday
among representatives of all Federal
law enforcement agencies to draft
definite plan of coordination for
their multiple activities in the fu-
ture.
Up for discussion will be gun
running, liquor shipments. Coster-
Musicas political connections, his
possible dealings in narcotics and
the vast financial tangle he left be-
hind when he sent bullet into his
brain.
So extensive were his labyrinthine
affairs that Federal as we'll as State
investigators believed they had only
begun to remove the numerous
layers of the scandal. More. than
$50 subpoenas already have been
issued for Wall Street operators and
brokers, officials of the firm, Con-
necticut politicians and numerous
other persons, and for records which
may explain the confusion of ques-
tions raised by Coster's fantastic
swindle.
Others May Be Involved.
The nature of the information
about gun-running, now in the
hands of Assistant Attorney Cen
eral Ambrose v. Mccall, was not
disclosed, but he said he knew things
(which may involve living persons"
Giving support to this was
statement of John Kantor, go, of
Montreal, father of MacKinlay Kan
tor, the author. The elder Kantor,
held here in connection with a
Connecticut stock case, appeared in
the police lineup today.
"McKesson & Robbins offered to
sell me some guns" he told Acting
1t. James Pyke, who was question
ing him about reported gun snug
Cling to other countries.
Il was asked not to discuss it,"
Kantor said.
WAS that by order of the At
torney General?"
"Yes," Kantor replied, "and also
by the Securities and Exchange
Commission"
It was regarded as likely that the
$18 900 900 missing assets of the
crude drugs department which Co.'S
ter-Musica and his brother, George
E. Dietrich Musica, operated with
non-existent warehouses and de-
tailed reports of purchases and sales,
might, in fact, exist as money due
for the payment of munitions.
Three Brothers Held.
When Coster-Musica, facing re-
arrest on a charge of violating the
Securities and Exchange Act, killed
himself yesterday in his Fairfield
(Conn.) home, the chances of learn
ing all the amazing details of his
incredible swindling career were
greatly diminished.
But the authorities quickly recov-
cred their hopes with the arrest of
Dietrich -Musica and two other
brothers, Robert E. Dietrich -Musi-
ca, of the firms shipping depart
ment in Fairfield, and George Ver-
nard-Arthur Musica of Brooklyn,
Canadian agent for the firm.
They were held in Jail in default
Of 100000 bail. George, the eldest,
was taken from his cell in New
Haven for questioning. He will be
brought to New York Monday