Evening star., 1939-01-01
Federal Net Tripped
Coster.:Musiea From
Perch Of Sham
Underweieht Drugs
Put Government on
Mosqueroder's Troll
BY w. H. SHIPPEN, jr.

It was a Federal net, woven in
Washington, which trapped the
Musica brothers at last.
This became increasingly clear
today, as investigators uncover new
clues to the seemingly endless mach
initions of the late Philip Musica,
alias F. Dohald Coster.
A Federal inspector, making rou-
tine tests of guinine sulphate tab
let's, cast first doubt on the activi-
ties of Musica, or provided his
business associates with a weapon
to dislodge him as head of one of
the biggest wholesale drug firms
In the world
And another Federal agent, seek
Ing to bring Musica to justice for
violating the securities act, ex-
posed one of the most fantastic
masquerades in history, a mas
querade extending to a whole fam
lily and maintained through the
years as the family, once notorious,
rose to wealth and power.
A Suicide When Cornered.
1t obviously was a Federal net
closing in on Musica-and not the
bankers, lawyers, blackmailers and
treacherous associates he blamed in
his suicide note-Which prompted
him to 60 down with the crash of
his labyrinthine schemes.
Up until his last days, he exer,
cised his genius for evading expos
ure and extending his enterprises.
In September a food and drug
inspector found seven dozen bottles
of substandard quinine sulphate
tablets in a Newark warehouse
owned by the firm Musica headed.
A week later SIG bottles were found
in a similar warehouse in Albany.
The inspectors reported that tests
revealed the ''tWo-grain" tablets
weighed only 165 grains.
The Department of Justice noti-
fed district attorneys in the two
jurisdictions to seek court orders
for attaching and sealing the ques-
toned tablets. The Albany case
went uncontested by the manufac-
turer, records here revealed, and
the court ordered the consignment
condemned and burned.
Others Explained Away.
The inspectors previously had
made few cases against the prod
ucts of the flrm-about some chloro-
form which had deteriorated, and
some tooth paste labeled with med
irino1 fSrnrorfinc
merely routine, and easily explained
since the one was an accident, and
the other an apparent misunder-
standing of the law.
The sub-Standard quinine, how
ever, appeared to be matter of
"chiseling which not
even Coster could explain to his
business associates. One of the
latter told reporters this case gave
him the means of forcing a show
down with his superior. The COM
pany officer wanted an accounting
of the fact that sub-standard quin-
inc had been put out when the in
ventory of the crude drug branch
operated by the Musica brothers,
listed some 100000 pounds of quin-
inc sulphate in storage in Canada.
This apparently was the begin
ming of the end for Coster. On
December 6, a petition was filed
for appointment of a temporary
receiver and the stock of the COM
pany was withdrawn from the
stock exchange. James j. Caffrey,
regional director of the Securities
Exchange Commission, with head
quarters in New York City, sent
two investigators to go over the
company's books.
Imaginary Assets.
In Washington yesterday to re-
port on his investigation, Mr.. Caffey
said his agents reported they be-
lieved that the crude drug branch,
dominated by the Musicas, had
listed millions in non-existent as
sets, and that some mysterious con-
nection existed between the men
later proved to be brothers.
Mr.. Caffey then came to Wash
ington to report to S. E. C. head
quarters and to confer with Brien
Mcmahon, Assistant Attorney Gen.
eral. He was instructed to summon
witnesses and proceed with the
investigation.
I'm my office early Tuesday, De-
cember 49," Mr.. Caffey said, IT