davidaulloa/AmericanStories huggingface dataset:
Evening star., 1938-12-18

became the victim Of his own lust
for power and wealth.
The Swedish Match Co. was the
base for his nefarious work. Using
1t and Its resources, Kreuger began
loaning monies he did not possess
In return for match monopolies in
various countries. He needed more
money, 30 he formed nom existent
mstch companies and borrowed from
gullible financial giants on their
paper strength.
From these he erected, on paper,
more match companies, giving them
the assets needed for more borrow
ings, and eventually he owned match
monopolies in practically every
country in the world.
For these monopolies he paid In
real gold. He loaned approximately
1885 900 900 during his meteoric ca
reer-money he had taken from
banks on paper factories" and the
strength Of his monopolies.
At the time Of his death, the
Swedish Match Co. operated some
$50 factories scattered throughout
Europe with the exceptions Of
Spain, Russia and Franco and In
16 European countries. His
monopolies, alright and signed by
the ruling powers in the countries
accepting his gold, ran from 20 to
80 years. Most OF his loans were to
countries that could not secure credit
elsewhere. He made them; ironically,
with money he borrowed from bank
ers who would not loan to those
countries.
Germany the Weak Link.
He gave France q 375 900 900 loan
at S per cent. Greece got S., 900 900,
Lithuania, $6,000,000; turkey, $l0,-
00O, 1000: Hungary, Ecuador, Rumania,
Poland, Guatamala, Estonia, Yugo-
slavia. Latvia all were recipients OF
Kreuger's munificence. And the in
terest ranged from to 8 per cent.
His loans to Germany finally
caused his downfall. Germany, in
the panic OF postwar economy,
could not meet her payments. Krue-
ger was pressed and his mythical
kingdom fell as stack of cards
about his head. His once plausible
bank balances were scanned and
found wanting-wanting the one
thing-money.
So Kreuger, like Coster- -Musica
resorted to a metal he probably
would disdain to mention: A little
piece of lead. shaped into a bullet
and fired into his head.
Stavisky, the man who nearly
caused revolution in France, worked
on the same principle as Kreuger
and Coster- -Musica. He operated
the government-sanctioned Bayonne
pawnshop or Mount of Piety." Here
dowagers pawned their heirlooms
jewels, valuable plate. Workmen
pawned their bicycles, dressmakers
their sewing machines.
Stavisky accepted pledges. He
issued bonds. Finally he had more
bonds out than could be liquidated
with all the jewels in the world
Eventually his stealing ran into
$50 900, 900, and there were no liquid
assets to meet these obligations
When government investigators
finally caught up, Stavisky resorted
to the one metal that was valueless
as a pledge-lead, shaped into bull
let and fired into his head.
Evening star., 1938-12-18

to $3.50 . share bid, 81 asked, 1hyt
recovered to close at 81 bid, SITS
asked. compared with the previous
days last price of $725 bid, % asked.
The common stock, traded in six
teenth Of point for the first time,
sold dow nto 81H cents a share hid.
93A cents asked, but closed 87h
cents bid. $1.121a cents asked, COM
pared witt, yesterdays last price of
rs cents bid, 81 asked.
In the final sale on the New York
Stock Exchange before dealings in
McKesson G Robbins issues were
suspended last week, the debenturea
commanded a price Of 81, ,037 50 per
81 900 bond, the So preferred t36 so
share and the common $3.50 .
share, T7
Evening star., 1938-12-18
Cosfer Suicide Shows
Value Of Audits,
T.V. A. Quiz Told
Example Is Cited by
WoIverton, Critic
Of U. 5. Agency
By the Associated Press.

By the Associated Press.
The suicide of Philip Musica,
indicted head of McKesson &
Robbins, Inc, was cited by con-
gressional critic Of the Tennessee
Valley Authority yesterday as evi-
dence of the need for "a most COM
plete audit to protect the peoples
money"
Representative Wolverton, Repub-
lican of New Jersey, who frequently
has criticized the accounting meth
DDS of the New Deals big public
power agency, told the Senate
House Committee investigating T.
v. A.: J
1--WE have before us today an
example of how careful auditing
must be done. We have been
astounded by affairs of a great
corporation which finally led to the
president shooting himself"
In reply to questions by Mr..
Wolverton, E. L. Kohler, T. v. A.
controller, said he did not know
whether Musica's corporation had
been audited and added that it was
mot fair example,"
Verbal Exchange.
The subject came up during an
exchange between the T. v. A.
executive and Representative VOL
verton over Mr.. Kohler's bristling
criticism Of the Controller General
Of the United States and his sub
ordinates in the General Accounting
Office.
"Your criticism of the General
Accounting Office is the most severe
I've ever heard" Representative
Wolverton said.
THAT was my intention, Mr.. VOL
verton," the witness replied.
ut was so startling that I got
to thinking it might not be your
own" Wolverton continued.
Every word of it was," Mr.. Kohlel
replied emphatically.
"It sounded to me like the open.
Ing gun for another attempt to pas.
the reorganization bill" Mr.. Wolver-
ton said He referred to the ad.
ninistration's reorganization bill
shelved by the House last session
which dealt in part with the con-
troller generals office.
Criticism Held Justified.
Mr.. Kohler was unshaken in hi:
opinion of the controller general.
staff, which has questioned millions
Of dollars of expenditures by T. V
A., but he accepted criticism o1
T. v. A. accounting methods from
another Federal agency, the Fedora
Power Commission.
Auditors of the power commits
sion recently handed the investi-
eating committee report on T. V
A. accounting methods, prepared al
the committees request.
~This general criticism. I think
wholly justified" Mr.. Kohler said
adding that causes for the criticism
had been removed since he became
chief Of T. v. A. accounting in May
this year. s
Evening star., 1938-12-18
By the Associated Press,

BY the Associated Press.
NEW YORK, Dec. 17.-When F.
Donald Coster, alias Philip Musica,
placed a pistol to his head and took
his life in his Connecticut home
Friday, he rounded out cycle OF
three -swindlers whose rule OF
golden empires ended with a scrap
of lead-158 grains Of the cheapest
metal known to man.
The others were Ivar Kreuger,
Swedish match king, and Serge
Stavisky, French manipulation OF
finance.
AS strange as the coincidence OF
their deaths by pistol shots, their
methods were precisely the same
pyramiding non-existent assets into
a formidable barrier of assumed
wealth.
Kreuger so pyramided mythical
assets that In the end, he like
oster-Musica, tried to satisfy his
followers with false certificates
made out in no less q name than
the Kingdom Of Italy.
Stavisky, the pawn shop peculator
obtained his status as q financial
genius by pawning jewels, then
bribing his way to replacing the
real gems with paste limitations and
repeating the process.
Both Helped Police.
Stavisky, after his first brush
with French police, returned as q
police informer. Coster went him
one better. In addition to becoming
an informer he obtained work In
the state attorney generals office
as a spy investigator.
Each of the three played with
millions of dollars. Kreuger 1.-The
mystery man." 50 duped his fol-
lowers that at one time he was
head Of reputed $30,OOO,0OO firm
Stavisky, whose suicide caused q
financial panic in Paris, peddle6
approximately $4,000 900 in worth.
less bonds. Coster's empire, the
eminently respectable drug firm Of
McKesson- Robbins, was rated at
$87 900, 900.
Unlike Stavisky, who entertained
lavishly, maintained 4 racing stable
and a fleet of luxurious automobiles
Coster lived q secluded existence
He seldom entertained, and wher
he did it was only his close circle Of
friends, who were exposed yesterday
as his brothers, George Vernard
Robert and George Dietrich.
In that way, however, he copiee
Kreuger. The match king was &
mystery man in every sense of the
word. He knew diplomats and high
Government officials intimately bu
never entertained.
Kreuger never announced when h,
would visit foreign climes or neigh.
boring cities. He came and went lik,
a wrath.
Empires Total S157, ,000, 900.
Unlike Kreuger and Stavisky
whose faxed empires crashed com.
pletely, Costers' drug firm is said tx
be solvent. There is the matter o.
s18,O00,000 in non-existent assets
but the actual physical properties
Evening star., 1938-12-18
MtKesson & Robbins
Securities Fall Lower
by the Associated Press.

BY the Associated Press. If
NEW YORK, Dec. 17.-McKesson
& Robbins securities fell still lower
In "oyer- counter" markets to-
day, although extreme losses were
pared on weekend short covering
near the close of business,
The convertible 5h per cent de-
bentures, $1,000 face value each,
were quoted as low as $3.50 bid, $500
asked, but final prices were $50
bid, $525 asked, compared with Fri
days final price Of $3.50 bid, $40
asked.
The g preferred stock once fell
Evening star., 1938-12-18
Investigation
tContinued From First Page.)

matchstick house began to crumble
With the filing Of a reorganization
proceeding in Connecticut. The 8.
T.. C. assigned an agent, Robert
c4lp, to trail the heads Of the NC
Kesson e. Robbins firm. He learned
that Robert Dietrich, one Of the Mu-
sica brothers, frequently rode to
Stamford in truck. The driver
told him he got of at bank.
Found Scrap of Paper.
Above the bank was an office. re-
Gently vacated. In corner of the
Office the agent found a crumpled
scrap of wrapping paper addressed
10 George Vernard, another Musica
brother, and in the corner was the
name and address of New York
printing plant.
THE printer told us most elabo-
rate story of how he made letter.
head stationery for Coster," Mr..
Caffrey said. THE paper had to be
not watermarked and of British
manufacture. 1t had to be of a
different kind for each of dozen
letterheadS, all representing reput-
able British firms. He also made
invoices, meticulously designed, for
various fictitious corporations
throughout the world.
ION this stationery McKesson &
Robbins received through their Cas
madam 'agents'-firms as fictitious
Is the letterheads themselves-re-
eeipts, bills and notifications of
money owing to the American con-
eern. The agents also sent care
fully itemized accounts of the tre-
mendous fake business they did fol
McKesson & Robbins.
II cabled Scotland Yard, and
within 10 hours it informed me that
not only was money not owing to
the McKesson firm from London
and Liverpool business houses. but
the firm had no business connec-
tons at all with them. Neverthe-
less, there was the correspondence
from all parts of the world, Aus
tralia, India, South Africa-every-
where"
Tons Of Records Checked.
What did Coster gain from his
financial wizardry, and what hap
pened to the money which may
have been lost by the concern?
"We don't know yet" Mr.. Caf-
frey said. I'VE can't even begin to
guess at the real loss. Trustee audi
tors for a week have been going
over tons of MeKesson records
Perhaps they won't be able to see
daylight for a month. We haven't
had time to go through Coster's
personal financial records.
"Only one thing is certain. His
bizarre story would be much sim
pier If Coster had decided to lingel
longer with the living"
What did Mr.. Caffrey think Of 8
report that Coster had cached ir
Sicily nest egg OF several million
dollars?
II don't know. Time and oul
hard work may -tell,"- he said. "]
did trace one check for $6,00t
drawn on one of Coster's fictitiou!
subsidiary companies deposited IL
his name in his Bridgeport bank
Who can tell when and where wei
find the rest of his fortune?"
Little pills helped bring about th'
downfall and unmasking of Coster
Three months ago, agents OF th'
Federal Food and Drug Admins
tration seized "a phials of quinin'
pills in New Jersey. Tests showed
the tablets were sub-standard.
On october 5, in Albany, 576 NOR
bottles were confiscated and th'
nills were found to be adulterated
Evening star., 1938-12-18

NEW YORK.-CHARTING COSTER FANTASY-Chart shows at
how Philip Musica the Naples immigrant who emerged
prison live another life Donald Coster
of deceit in his manipulation Of McKeson Rob-
bins Of which he president and in which other Musica
his brothers. found Jobs and wealth. "A. P Wrephoto
Evening star., 1938-12-18

Illinois demands $4,000 signatures
for = new political party to get on
the ballot.
Montana labor news., 1938-08-11
Atty. Gen. Freebourn
Advises Slate Welfare
Must Assist Counties
CONTINUED from Page u

debt limitation was reached. The
legislature has made ample provi-
sion obviating the necessity of the
county becoming indebted for relief
purposes. The public welfare funds
were appropriated for the specific
purpose of relieving those in distress
and guaranteeing them sufficient
means to live in decency and health
and were not appropriated as a
legacy and savings fund to be used
for the purpose of reverting to the
state general fund. 1t was never in
tended to balance the budget or pay
off the states bonded indebtedness
out of the poor funds and deprive
those in need of assistance.
Therefore, it is my opinion that
the state has sufficient funds to meet
the counties needs for general relief
and that it is mandatory upon the
State Department of Public Welfare
to make such grants without COM
pelling the counties to issue anticipa-
tory registered warrants.
Very truly yours,
HARRISON ]. FREEBOURN,
Attorney General,
Montana labor news., 1938-08-11
LABOR DAY PLANS BEING
OUTLINED

Plans for a huge Labor Day cele-
bration in Butte under the joint
auspices of the Miners Union and the
Silver Bow Trades and Labor Coun-
Gil were officially inaugurated last
Tuesday when Chairman Jaap of the
Trades and Labor Council appointed
a general Labor Day committee con-
sisting of John Vickers of the Bus
Drivers, chairman; Tom Kennedy of
the Miners, secretary; also Jack
Driscoll, Clarence Blewett, Ed Dun
can, Pat Deloughery, Earl Simmons,
Jepson, Spiegel, Thomas, Frank Sui
livan, Mullaney, James Leary and
Lindsey. The general committee
met after adjournment of the regular
session of the Trades and Labor
Council and appointed a number of
committees, including speakers
committee consisting of Spiegel De-
loughery and Driscoll; arrangements
committee, Orlich, Sullivan and Null
laney, and music committee, Sim
mons, Jepson and Orlich; finance
committee, Blewett, Duncan and
Lunney; refreshments committee,
Lena Mattausch, Bridget Shea and
Bill Palmer; sports committee, James
Leary, Ed Rule, Tim Harrington
James Thane, and Carl Peterson.
Montana labor news., 1938-08-11
COMPENSATION PLAN
NUMBER ONE

After meeting Mr.. DAILY and others
through Miners Union contact COM
mittee, Mr. Mcmahon, Labor Com
missioner, sent copy of my work
record with the A. c. M. Company
to the secretary of the Butte Miners.
In a letter received from McMa-
hon, he states in effect: ''If suffering
from injury met with while not
working for the A. c. M. Company.
But my work record will show
was employed by the A. c. NJ Com
pany at time of meeting with injury
However, had put in q years of
mining that is not covered by Mr.
McNIahon's report. These 27 years
are clean, clear and easily checked
and will show l was not suffering
from pulmonary T. B. or with a
weak, lame, or injured back.
l mention this because at one time,
talking with Mr. Dwyer, he stated
Mr.. Skillingstad of Claim Depart
ment on checking my case at Muir
ray hospital, had been told by three
doctors l was suffering from an old
injury.
While Mr.. Dwyer or Mr.. SHILLING
stad did not reveal their names, Mr..
Berrieu in making this same state
ment regarding old injury, gave
names of doctors
Through friends l again sought
relief through the state legislature
at Helena during the 1887 session
without success. l also went to
Helena in February, 1887. Meeting
Judge Angstman, Chief Justice
Sands and Judge Anderson with
whom l talked at length regarding
my case. Also met and talked with
Mr.. ]. j. Holmes and Mr.. Bruce, of
the Industrial Board The thought
prevailed l should see Mr.. Clements,
chairman of the Industrial Accident
Board.
I went to Mr.. Clements office,
stating it had been suggested l again
see him regarding my case. He
asked why anyone had sent me to
see him. l asked if he were not the
chairman of the board; if he had
knowledge I had spent five years on
my back, the result of injury.
If he knew I had never been able
to collect one penny of the compen-
sation due me and my family.
He didn't seem to think this un-
usual.
He replied, 'How about the wom-
an whose husband was killed at the
Black Rock. She didn't get any
compensation" While he didn't
name or identify the case, he seemed
to feel that case would justify the
dirty deal l have met with.
Mr.. Clements draws a salary of
$4,000 per year from the state of
Montana as chairman of the Indus
trial Accident Board, appointed by
the Governor.
Montana labor news., 1938-08-11

The Labor Day committee will
meet in Judge Isaacson's court on
August 10th at 7:30 p. m.
Montana labor news., 1938-08-11

Initiative is doing the right thing
without being told
Montana labor news., 1938-08-11

PATRONIzE OUR ADVERTISERS
Montana labor news., 1938-08-11
kALI5PELL EMPLOYERS
Assn. CREATES FALSE
NOTION OF UNI0NISM
(Continued from Page b

it likes William Green little and
John L. Lewis less; it favors COM
pulsory incorporation of unions, as
does labor itself. And yet these
opinions may not add up to popu-
lar hostility to unionism as such, for
in FORTUNES survey for July 1888,
1913 per cent of the public declared
that some if not all wage earners
should belong to union. Indigna-
ton seems to be directed specifically
at the leaders of the present union
movement.
There is but little hue and cry
against stock exchanges, which may
be due to a belief that legislation
has already cleaned up the security
markets and nothing more need be
done. AS for utilities, only ia per
cent Of the most hostile group, pro-
fessional people, demand their re-
form-this crusade Mr.. Roosevelt
has not succeeded in selling the pub
lie. The Supreme Court, whose re-
form overshadowed all other issues
in 1887, is now almost forgotten.
But the issue on labor is clear.
Labor organizations have made
themselves decidedly unpopular with
the public at large, and particularly
with the working group with which
they are mainly concerned. Some
of this hostility is certainly INTEND
ED FOR UNION PICKETS; some
may be inspired by a feeling that
Lewis overplayed his cards and
brought a useful cause into dis
repute. But it is apparent that, un-
der present leadership, unionism has
so fouled labor's nest that the prob
ability of a strong national labor
party in 1910 seems suddenly
dimmed."
The above, quoted from the May
issue of Readers Digest" as con-
densed from Fortune. The vote is
based on the same quarterly survey
conducted by the editors of Fortune
which predicted the election of
President Roosevelt with an error of
only 90 per cent of the total popular
vote. It is in response to an inquiry
mailed out asking (which of these is
most in need of reform: labor unions,
public utilities, stock exchanges, the
Supreme Court?"
Vacation time is here and it is
possible that things will be com
paratively quiet for the next few
weeks so far as labor organizing is
concerned. LET NO MEMBER BE
MISLED, HOWEVER, IN BELIEV-
ING THAT THOSE WHO HOPE TO
WHIP KALISPELL INTO LINE"
have given up hope nor are letting
up on SNIPING while a MAJOR
OFFENSIVE in the near future is
being contemplated. This is the
time to be consolidating our own
position in order that we may be
able to maintain fair and equitable
conditions for both employer and
employee-uphold the constitutional
right of every man to work regard
less of affiliations, based only on
ability and initiative, and above all
maintain a peaceful and contented
community in which every member
may live and enjoy life to the extent
of his or her requirements.
Montana labor news., 1938-08-11

is planned and regulated, business
is regulated and prosecuted, and
labor is the goat to all of them. Now
are we better off? Certainly notl
We have less freedom of action, we
have many more petty rulers, more
trouble, more unemployed, more
poverty, and more insecurity for our
selves and our children.
Instead of a proud and self-reliant
people, we have become a dependent
and managed people. Instead of
happy nation and cheerful people,
we are now a fearful nation with
hatreds among our people. Instead
of being free to select our own rep
.resentatives, according to our own
notions, we are now informed by
others who to elect and may sug-
gest-for what purpose? The only
purpose, my friends, is to perpetuate
and fasten political control upon you
and me, who are pawns to political
rapists.
May l suggest to you and all for
gotten people to think this over very
very carefully.
1 STAND FOR THE RIGHTS
OF THE PEOPLE
l stand for Constitutional freedom
for you and me. For the protection
and security of our children For
closer cooperation and better under
standing between industry, com
merce, business, and labor in COM
mon united effort to bring about full
employment and prosperity to the
whole nation. For aid to those in
need, and for retirement pension at
the age of SIS years at SIS per month
as our share in national earnings in
addition to the wages we have re-
ceived. For the right of all to take
it easy after the age of SIS on a pen
sion which will allow us to be inde-
pendent. | stand for: We, the
people, reserve all rights for our
selves except those delegated by us
to Congress" That Congress must
not make any changes or pass any
laws that jeopardize our Constitu-
tional rights except as provided for
in the Constitution.
Now then, if you do not believe in
this-vote for anyone you please. l
shall go down the line as / have said,
for the greater good of the nation,
for all the people, for restoration of
the government to us, and for ma
tional prosperity. Do you want to
60 with me? Thank you.
DIR. j. THORKELSON, Republi-
can Candidate for Congress.
Montana labor news., 1938-08-11

The unions felt that WPA project
calling for traffic survey in Great
Falls would be a splendid enterprise,
but it was rumored that the Works
Progress Administration has dis
approved of it.