Evening star., 1938-12-24
Musita Probers Call
Disbarred Lawyer
Chief BIa(kmai|er'
Eight Persons Extorted
$50,000 q Year,
Federal Men Soy
BY the Associated Press.

By the Associated Press.
NEW YORK, Dec. 24.-Federal
officials, delving into the McKesson
g. Robbins mystery with its impli-
cations of blackmail, fraud and
financial skullduggery, said dis
barred lawyer was "one of the most
important members of the blackmail
ring" which extorted Thousands
from F.. Donald Coster-M -Musica, late
president of the drug firm.
Eight blackmailers, the Federal
men said, collected about $4,000
between them annually on the
strength of their knowledge that the
corporation head was an ex-convict
and arch-swindler involved in a
25-year-old scandal.
The identities of the lawyer and
the others were guarded, and Greg
ory F. Noonan, acting United States
attorney. declined to comment.
Coster-Musica killed himself in
his home at Fairfield, Conn, a week
ago after he was ordered rearrested
on a charge of violating the Federal
Securities Act following the dis
closure the name Coster was an alias
for Philip Musica.
Brothers Remain in Jail.
In note, written before he shot
himself, he said:
"As God is my judge am the vic
tim of Wall Street plunder and
blackmail in a struggle for honest
existence"
"Bootleggers and so-called big
shots in the liquor racket were
blackmailing Coster," Mr.. Noonan
said
Coster-Musica's three brothers
George Dietrich-Musica, George
Vernard-Arthur Musica and Rob-
ert Dietrich Musica-named in su-
perseding indictments charging
them and the corporation with con-
spiracy to violate the Securities Act,
remained in Jail in default of bail.
Attorney General John J. Ben
nett, jr., who is conducting an in
vestigation to determine if the State
Fraud Act was violated. announced
he had invited representatives of
accountants groups to conference
with him January 6 to prepare rec
concentrations to cover situations
such as the McKesson & Robbins
and Richard Whitney e. Co. cases.
In the McKesson & Robbins case.
an accounting firm was misguided
by forged financial statements is
sued in the name of Dun e. Brad
street. They purported to give the
assets Of w. w. Smith e. Co,
fictitious firm operated by Vernard-
Mus!ca, at S7000,000.
Kantor Refused Bail Cut.
Incidental to the McKessop &
Robbins case, John M Kantor. Mon
treal promoter and father of Mack
inlay Kantor. the novelist, was ar
raigned as a fugitive from Con-
necticut today, but Magistrate Au-
gust Dreyer refused to reduce his
s25 900 bail Kantor has been ques-
toned in the drug fraud case and
the Federal authorities have bench
warrant detainer against him. to
be used in case he succeeds in rails
ing bail
CoSter- -Musica's brothers had bet
ter luck in an appeal for lower bail.
Federal Judge Bondy reduced Rob-
ert's from 100000 to $1,000 and
that of the others to $4,000.
Samuel Reich. their counsel, said
he expected to be able to furnish
the bond so the men could spend
Christmas at their homes. Before
fixing the lower bail Judge Bondv
received their pleas of innocent to
the superseding indictment.
Thompson Testifes.
Judge Bondy said he would listen
to argument for a further reduction
of the bond if the Government did
not act eXpeditiously in bringing
the defendants b trial.
Julian F. Thompson. treasurer and
vice president of McKesson & Rob-
bins, testified, meanwhile. before
Federal Judge Alfred C. Coke in
the proceedings to determine the
jurisdiction in which reorganiza-
ton should be carried out under the
Chandler Act. that the corporations
principal place of business was in
New York.
Federal income tax returns. Mr..
Thompson said, were filed in Con-
necticut last year because the ac-
counting division was situated there
before the general merger of the
corporation and remained there
after the merger.