The Waterbury Democrat., 1939-01-04
IMPRESSION DRUG
 | FRAUD ExPOSER
Vincent w. Dennis, Attor- ney of Hartford, Unwit-
 tingIy Opens Door

New York, Jan. { (UP) - Vincent w. Dennis, corporation counsel of Hartford, Conn, testified today that he unwittingly had ex- posed the huge financial swindle in McKesson & Robbins, Inc, last Dec. 5 when he filed for a petition in bankruptcy against the vast drugs firm.
 Further, Dennis told the hearing conducted by Assistant State Attor- ney General Ambrose V. Mccall, this legal move had been urged on him by others, including Mayor Thomas J. Spellacy of Hartford.
 He explained that he had been unaware of the drug cornpany's ex- istence prior to Dec. 5. He initiated the petition he said after being presented with 2,000 shares of Mc- Kesson & Robbins stockton which he paid nothing -and upon the in- structions of the Hartford city offi- cial.
 Dennis said he received no re- muneration for acting as petitioner in the bankruptcy proceedings.
 Financial Shambles
 The state hearing is but one of several current Investigations into the mysterious swindle which left the crude drug department of the firm financial shambles and caus- ed the firms ingenious President, F. Donald Coster, alias Philip Musica, to commit suicide.
 Dennis testified that on Dec. 5, the day he filed the bankruptcy petition in Federal Court, Hartford. he received a telephone call re- questing him to call at Spellacys office. There he said, he met w. C.. Lundberg who acted as his attorney in initiating the petition.
 q was given the information con- tained in this petition and MT. Lundberg said he had verified it" Dennis said. q was handed 2,000 shares of stock in the firm by Mayor Spellacy and was told that responsible complainant was needed to safeguard the stock and protect the interests of the com- pany and I consented"
 Would you say that this was something that had been wished upon you?" Mccall asked.
 "I'd rather not say," the witness replied.
 Early Dealings
 The State Securities Bureau start ed today an investigation into the early financial dealings of ex-con- vict, Philip Musica, whereby his small hair tonic concern was ex- banded into the $86,000,000 McKes- son and Robbins, Inc, with himself president as F. Donald Coster.
 Assistant Attorney General Ann prose V. Mccall called for question ing Rowley w. Phillips, director of the concern, and Vincent w. Den- his, corporation lawyer of Hartford, Conn, whose receivership petition as @ stockholder accused the late Coster-Musica of an $18,000,000 fal- sification. Mccall sought from di- rectors, officials and investment bankers connected with McKesson and Robbins why they tolerated his operations and those of his three brothers, now in custody in default of bail.
 A federal grand jury, meanwhile, prepared to start another of the many investigations. A detailed out line of the entire case was presented privately to the grand jury yester- day by Gregory F. Noonan, who has been acting United States attorney in charge of the federal investiga- ton.
 The grand jury first will investi- gate the audit procedure of Price, Waterhouse and Company, in certi- flying yearly the financial condition of McKesson and Robbins, which failed to uncover the 18,000,O ,O00 in- flation of assets. The jury also will study how it was possible for Coster to obtain certification of inventories of goods that did not exist for 10 years.