The Daily Alaska empire., 1938-12-24
THE McKEssoN & ROBBINS CASE

Probably one of the most gigantic swindles of modern times is being uncovered in the McKesson & Robbins Inc, investigation which started by the Securities Exchange Commission and already has resulted in the suicide of bogus F. Donald Coster, head of the big drug concern who really Philip Musica, an ex-convict and swndler, and the arrest of various other officials of the company all of whom are said to be brothers of Coster-NIusica.
 Authorities who Investigating the case have labelled it of the most astounding pieces Of mani pulaton which has to their attention. Even Wall Street was declared by the New York Times be amazed" and when Wall Streets veteran traders amazed the situation is generally conceded to be immense
 Information from the investigation now reveals that first clue that something was wrong came as a result of the announcement by McKesson & Robbins Inc that it about to offer another private issue of securities listing among it's assets S180o000O in raw drugs and accounts receivable The Securities Commission part of it's function began check of assets that securities might be approved for the market. Among of the major things its investi- gators found out were that several companies which were listed holding the materials existent. There was for example a warehouse" in Montreal listed as "A. H Raymond & Co.," Investi- gators found this concern to be saffed with one girl who said the total business transacted was dozen letters year, half of them from the wholesale house Since the mail handling arrangement made in 1883 she had connected with the firm the girl told investigator.
 Another Montreal warehouse was listed on the books of McKesson 65 Robbins. Inc B Pierson & O." It not a mailing address and was totally non-existent, the authorities found Julian r. Thompson Treasurer of the drug corporation also told the investigators that still another firm Man ming & Co.," through which the wholesale house did business, non-exstent
 Then it was revealed according to the reports that vast amount of business was done through brokerage account listed in Mrs Costers name in firm known w. w Smith 6 Co, which was said to have offices in Liverpool, England and Montreal Probe is being made in that direction and the account has been tied up in the courts Dun Bradstreet was even hauled into the investigation and officials of that company said from their investigations it was evident that statements reputed to be official Dun give weight to financial standing. Countless other reputable concerns being dragged into the affair as apparently having been duped by the amazing swndle
 There great deal of opposition to the Securi- ties Exchange Commission when it created There was feeling among reputable business concerns that they could handle their financial business without too much government regulation and doubtless the legitimate, honest firms could But it is apparent from the present investigation that such Commis- sion as set up by the Federal government serves very sound purpose-to protect the legitimate con- cerns and expose such manipulations as are now being revealed in the McKesson & Robbins probe Not only is honest business hurt by such swindes but thousands of innocent stockholders are victmized McKesson & Robbins stocks have been dropped from the Exchange. but what means more they have dropped to virtually nothing in value and a great many stockholders are left holding the bag.