Evening star., 1938-12-17
Musicu
Continued From First PaRe.)

food and drug laws by selling sub
standard quinine tablets started
company officials on the inquiry
which led to Coster's downfall.
7. A New York Stock Exchange
committee which began probing
trading in the drug firms securities.
8. The Office of District Attorney
Thomas E. Dewey Grand jury pro-
ceedings in New York County were
expected to follow.
Action Taken on Three Brothers.
AS Coster, hopelessly trapped in a
web that tangled him ever deeper,
found his solution in death, authori-
ties moved quickly against the three
brothers whom the Government
charges played varying roles as his
aides in building an empire of
SWindle.
George DIETRICH" identified as
George Musica, held in New Haven,
Conn, was charged with conspiring
to violate the Securities Act of 1884.
He was assistant vice president and
assistant treasurer of the drug firm.
George Vernard," Canadian agent
of the corporation, was held on a
similar charge after police forced
their way into his Brooklyn home at
pistol point to arrest him. His real
name, authorities said, was Arthur
Musica. His trial in Federal Court
here was fixed for January IL.
Robert Dietrich" or Robert
Musica, youngest of the brothers,
also was held in New York. Robert.
who was McKesson- Robbins pur-
chasing agent at Bridgeport. was
arraigned on simple charge OF
violating the S. E. c. Act.
Mother. Sister Go South.
Robert was the only Musica brother
not involved in the collapse of the
S1,000,000 United States Hair Co.
in 1913, a major financial scandal
OF the period. for which Coster-
Musica assumed all blame. Robert
was only years old then.
Authorities said that the 76-year-
old mother of Coster- Musica, known
as Mrs. Mary Girard, and his sister,
Marie Girard, had left their modest
brick home at Westbury, N. Y, We'd
nesday ito enjoy warmer climate"
Another sister, they said, was the
wife of Robert Guex, a gardener on
the estate of Secretary of the Treas
ury Henry Morgenthau, jr, at
Wicopee, N. Y.
Stockholders Losses Unknown.
Until the present far-reaching in
quiries are completed, investigators
said there was no way of estimating
how high the losses to McKesson &
Robbins stockholders would mount
1t may be weeks before any con-
clusion is reached.
Henry D. Faxon, secretary and a
director, said "the company is SOL
vent and will go on in better shape
than before" 1t is now undergoing
reorganization.
Things are happening so fast
every minute, in fact-that I'll have
to wait before saying anything fur
ther," Mr.. Faxon added.
When stock exchange trading in
December 7, McKesson & Robbins
common stock was selling at $3.50
a share and it's So preferred stock
at $3.50 a share.
"Over-the-counter" prices yester-
day were rs cents a share bid, 81
asked, for the common stock and
$725 share bid, So asked, for pre-
ferred stock.
Coster-Musica, genius in honest
finance as we'll as in swindle, took
over control of the concern in 1927
after raising ST 900, 900 capital from
Connecticut bankers
Expanded Firm Greatly.
He expanded it so rapidly that in
1929 the corporation sold SAC, 900 900
worth of drugs. 1t now has II
wholesale distributing branches in
38 States with additional outlets in
Canada, Norway, England and ia
pan. Although primarily a whole
saler OF drug supplies, the company
also engaged in the manufacture of |
drugs, cosmetics and distilled liquors
and the wholesaling of imported and
domestic liquors.
At a hearing before Assistant
Attorney General Mccall yesterday,
the recent sale of 1902 shares of |
common stock by company exec
utive for $118,530 was disclosed.
An accountant for the State Bu-
reau Of Securities said most of the
stock was in the name of Charles
F. Michaels, executive vice president.
and members of his family. It was
sold between the last of October
and November %, before the stock
was suspended from the exchange.
Mr.. Michaels is one of the trustees
named to reorganize the drug COM
pany.