The Waterbury Democrat., 1938-12-23
COSTER COULD BE
 WORTH MILLION
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 He said the reason he stayed on was to protect the stockholders from bankers, lawyers, auditors, ap- praisers and high salaried execu- tives." Federal and state tnvesti~ gators, however, think 1t was greed.
 Gregory F. Noonan, assistant United States attorney, agreed that blackmail had much to do with the swiEdle.
 '.TIe was surrounded by group of persons who knew him out of his Musica life, of whom we already know eight" Noonan said. some were even put on the McKesson and Robbins payroll. Most were paid out of his own pocket, and alto gether, they took from Coster in blackmail e substantial part of what he took from McKesson and Rob binS."
 Stole $s,OOoyOOO Is Belief
 In addition to his $40,OO0 annual salary, $40,OO0 annual dividends, and SIS 900 expenses, it has been re- vealed that Coster-M Musica took Sl50,O0O . year from the firm in fake commissions, paid to dummy corporations for business they sup- posedly transacted for the crude drugs department. Actually that department did not exist. Altogether, Coster- -Musica was believed to have stolen not much more than $3.OOO,- 900 from the company and his three brothers, minor executives in the firm, are charged with having prof tied from that sum. The loss to the company, however, was expected to be $21 ,O0O, 900 or more.
 The manifold federal and state investigations of McKesSon and Robbins, as well of the Musica brothers affairs, were recessed for the holidays. Next Tuesday, they will be resumed in the light of a reference in the suicide note that some directors" of the company knew all along that the crude drugs department was 8 fake.
 Michaels May Be Man It charged that "one in particu- lar, now co-trustee has been selling his common stock and that of his friends to the public with full knowledge of the situation under investigation"
 Charles F. Michaels, former exec utive vice-president, who had been named . co-trustee in reorganiza- tion proceedings before Coster- Musica killed himself, and who has since been elected president, obvi- ously was the one referred to. He was asked about the reference at the state attorney generals hearing late yesterday.
 He said he had disposed of 15,261 shares of McKesson and Robbins common stock held by himself and his family beginning October 27, l2 days after he had been told by Julian F. Thompson, the company treasurer, that something appar- ently was wrong" with the crude drugs department. He insisted, how- ever, that he had been intending to dispose of the stock anyhow be- fore the first of the year to avoid next years high capital gains tax, and that Thompson's advice did not influence him.
 Michaels received slightly more than $7.50 share for his stock. The price has dropped in over-the- counter trading to IS cents 8 share since the exchange suspended trad- ing in the stock.
 Arrests Coming Today Federal authorities said today they expected m0mentarily to ar rest persons who blackmailed F. Donald Coster" before his suicide by threatening to expose the presi- dent of McKesson. & Robbins, Inc, as Philip Musica, convicted swim dler.
 Gregory F. Noonan, assistant U. s. attorney general, confirmed the alllision to hlackmail by dis- closing that the government had the names of at least eight persons who knew Coster when he was Musica and "profted by the acquaintance"
 Asked if the government expected to arrest any Of the blackmaiiers, said to have bled Coster of as much as $l5O,OOO a year, assistant U. s. Attorney Irving Kaufman said sYes." He indicated the arrests were expected today.
 of an adjoining building, where | they were rescued by firemen. Aid was Summoned from CamhridCe