The Waterbury Democrat., 1939-04-14

incoherent, and some of the words cannot be deciphered.
 The three Musica brothers are among nine men under indictment by federal grand jury here on IA counts of mail fraud and conspir- acy. One of the accused is Rowley w. Phillips, general manager of the R. F. Griggs Company, Waterbury brokerage house.
 The text of the first note is as fol- lows:
 "As God is my judge and with faith in His mercy to install His love and goodness in the hearts of those that have now turned on me in bit ter hatred, the original author to inf1ate and make wash sales was an serpenant. Nevertheless I take full and absolute responsibility leaving it to the world to judge if such a thing could be done by one man alone without the direct knowledge or total incompetency of those charged with the responsibility that goes right down the line and are now running to cover at the bidding of others-to save their own necks
 T am not talking or referring to the assistant treasurer in charge of the department or his brother and force of clerks.
 T am referring to a $40 of $50 ,OOO a year treasurer, comptroller who was happy to have a 1000 loan given as a bonus to wipe it off the books and increases in salary. It was case of who would put the company in receivership first to stop the orgi first, Wall street lawyers in the board won.
 "As God is my judge, am the victim of Wall street plunder and blackmail in a struggle for honest existence.
 "Oh merciful God bring the truth to life-"F. D. Coster".
 The second note said:
 T was happy and contented in Mt. Vernon and later on Girard and Company. had ambitions to build up McKesson and Robbins for my self and stockholders. At time of large merger with wholesalers Gold man Sachs made me buy 10000 shares stock on margin, beginning to put me in debt by 375,000, on margin blood. My McKesson hold ings they then sold me Blue Ridge Shenandoa Goldman Sachs Trading Corporation Minneapolis Moline still on margin with McKesson stock.
 "The G. s. and Co. through Catch ings told me to buy other properties with bank loans and they would sell common stock to pay loans. Instead they were busy selling their own is- sues getting some $3O0,000, 900 from the public. leaving McKesson facing failure through heavy bank loans which the banks were pressing Finally we got debenture issue out with another millstone around the company's neck.
 The wholesale houses were losing millions, in bad debts, especially in Los Angeles, Cincinnati, and other points. The books will show the losses were sufficient to have the bond bankers step in and they threatened to step in. Albert Smith of E. B. Smith & Company was constantly urging receivership. Out of a clear sky received a letter from Waddil Catchings. He would like to renew acquaintances. Had not seen him for years and told him of my trouble with bond bankers He told me he could help me. His help consisted in getting a job fol himself, Sullivan and Cromwell. See moneys paid to this firm.
 Catchings was the master mind and power to create job for him. self by making the wholesalers be- lieve I was at the bottom instead of Catchings and Cummings. With that fight over we went in liquor business. Have an investment of over $15,00O,000. Had tremendous losses and the return on this invest ment is practically nothing. Maybe two per cent year, yet we must pay out 1-2 per cent on bonds and six per cent on preferred.
 In the recapitalization the most of directors on inside sold their common to the public and bought in preferred then exacted cut through terms for their new preferred bur- dening the company with more debt. he wholesale houses and liquor