Indianapolis Times, Indianapolis, Marion County, 21 December 1938 — Page 3

£

"munition

| eon, Hote

Coster Swindle Loss

Set at 21

Millions;

Arrest New Suspect

Drug Firm Employee Believed by Police to Be ‘GoBetween’; 20 More Officers of McKesson & Robbins Called by U. S.

NEW YORK, Dec. 21 (U. P.).—Participants in the frauds which » muleted McKesson & Robbins, Inc., of millions of dollars “went even so far as to commit murder,” Assistant Attorney General - Brien McMahon, who is in charge of the manifold Federal inves-

tigation, asserted today.

NEW YORK, Dec. 21 (U..P.) Federal investigators today summoned 20 more officers of McKesson & Robbins, Inc, convinced that some of them must have known something was wrong with the $86,500,000 drugs firm during the 10 years it was bossed by Philip Musica, a swindling ex-

convict,

The inquiry so far had disclosed that although the manipulations of

the tou - lars, thi

Musica brothers had cost McKesson & Robbins 21 million dolbrothers actually got.away with only about three million dollars,

and they apparently lost most of that in Wall Street during the depression

Very little of value could be found among their possessions, which

‘were all impounded.

It. developed also that Philip Musica, master swindler of the family, had been toying desperately with munitions, bootlegging, and possibly narcotics and racketeering schemes. He hoped to recoup enough to avoid being forced to the wall before he, posing as F. Donald Coster, man of culture and letters, organizer and dndustrialist, was unmasked and trapped. He failed and killed himself last’ week.

Hold Aid in Drug Firm

‘A mar; who apparently has known all along of Coster-Musica's true identity was taken through the police lineup today and charged with “conspiracy to violate a U. S. - law.” He was Benjamin Simon, who was on the MecKesson-Robbins payroll at $6000 a year. He was arrested last night at 1840 Grand Concourse St. That was the address listed in false ‘birth records filed for the Musica brothers at Washington, D. C., ag being the home of “Adele Virnard, midwife,” whe supposedly attended their births. Actually, Philip Musica was born in Italy in 18717. It was believed by | police that Simon had been a go-between for Coster-Musica in munitions and

- possibly other schemes by which he

hoped to repay the money stolen from McKesson & Robbins. Federal and State investigations had failed so far to turn up anyone connected with the drugs firm who had been sugpicious of what was going on, Fouf directors, testified before the State Fraud Bureau yesterday that Coster-Musica ‘was so highly regarded in financial and drugs circles and that he had so dominated and concealed the crude drugs department where the swindle was made, that they had no cause to suspect him, |

Dissension Reported

Two Federal vestigations are under wey, before a Grand Jury and the Securities and Exchange Commission. Brien McMahon, Assistant United States Attorney, directing the work of seven Federal departments, said that dissension. was breaking &Gt among McKesson & Robbins officials that might speed his work by Inducing some p of then to talk.

Despite the fact that new evidence was turned up indicating that Coster-Musica tried in| vain to sell up to two million Lee-Enfield Army rifles and two million rounds of amto China or to Mexico, James J. Caffrey, regional SEC Administrator, doubted that these were any more than wild ideas of the swindler. This opinion was echoed by a \ MeKesson & Robbins official who said that Coster-Musica always was full of schemes for making money because he had an over-active mind. The outlook for holders of MecKesson & Robibns securities became more gloomy when Mr. McMahon ennounced that “the Musica’s ill-gotten gains are mostly gone.” ‘The market value of [three issues of McKesson-Robbins stock has dropped $35,000,000 ‘since the swindle was exposed. - It appeared that Wall Street, ‘which backed Coster-Musica to the extent of $20,000,000 in 1928 because f his knack for making money on small scale, began stripping him f his new riches a year later, when BT market crashed, and that he had survived the remaining years only

fied to show $21,000,000 worth of assets in crude drugs that it did not have. William J. Wardell, trustee appointed by Federal Court, has attached bank accounts, brokerage accounts, property and insurance policies of Coster-Musica and all three brothers who were associated with him in the firm, but except for the Coster-Musica mansion in Fairfield, Conn., and his ocean-going yacht, little of value has been found. Samuel Reich, Coster-Musica’s attorney, who is also the United States commissioner at Bridgeport, Conn., announced last night that his client had written a note before he blew out his brains, but that he was withholding the contents for a more propitious time, ‘He made a spirited defense of the master swindler, however, protesting that he had been. “crucified, » and that all the talk about munitions dealing and bootlegging was “preposterous.” He said CosterMusica was really a “poor, tragic man,” whose only fault was to fool-

interests of the stockholders.

Doubt Importance Of Ohio Youth

PHILADELPHIA, Dec. 21 (U. P. —Authorities today were inclined to discount the importance of a 21-year-old Cincinnati youth held here under $25,000 bail in connection with the investigation into the gunrunning activities of Philip Musica. After a checkup on Richard Mitman in several cities, including an

Cincinnati, Detective Captain James

was just “an eccentric” with a petty criminal record. Detectives said they found in Mitman’s possession several documents written in code, and formulas for acids.

Wholesale Houses Not Affected

NEW ORLEANS, Dec. 21 (U. P)). —The Coster-Musica, swindle will not affect McKesson & Robbins wholesale houses, General Manager Samuel H. Colvin of the Mc-Kesson-Parker- Blake division said today.

DISCOVER ARSON _ PLOT, SAVE HOME

Neighbors Beat Out Flames; Detectives Investigate.

2

An attempt by an unidentified person to set fire to the home of Mr. and Mrs. Clifton Hickman, 2417 Southeastern Ave., was being investigated by detectives today. Three neighbors, Theodore Mc-

Carthy, Harold Stanley and Ray Ingle, while standing. in a nearby

at the rear of the Hickman home. Running to the house, they discovered a roll of paper had been stuffed in a crack of boarding on the bet fw and ignited. The

men beat gut the flames before the woodwor as ignited.

ishly inflate his firm’s assets in the

interview with his divorced wife at}

Ryman said he believed the youth]

filling station last night, saw flames].

Senator James Davis Attacks Hopkins in Sharply Worded Letter.

WASHINGTON, Dec. 21.—Harry L. Hopkins, WPA administrator, drew a sharply worded letter today from Senator James J. Davis (R. Pa.). “WPA reeks with partisan politics, from top to bottom,” the Senator wrote. “It is a filthy mess a great public trust badly abused.” The letter was occasioned by protests from Pennsylvanians against reduction of WPA rolls in their state. - | “During the last three years,” the Senator said, “there has never been an election in Allegheny, Lackawanna, Luzerne, Carbon, Northampton, Schuylkill and other counties of Pennsylvania — local, state or national—which has not been attended with a rapid increase of WPA payrolls prior to election day and a purging of the rolls immediately afterward. “This discreditable use of WPA funds, for openly partisan political purposes, was more evident this. year than ever before.”

‘Plan Backfired’

He asserted his opinion that this “Political plan for WPA backfired,” because “WPA workers knew that they were being used this way and rebelled against it.” Every year, he declared, “WPA has been booted round like a football during campaign months, Cctober and November. The addition lof hundreds of thousands of workers to WPA rolls throughout the nation, on one occasion, might be an accident, but when it occurs every year it is obviously ‘planned that way.” The Senate Campaign Tavestigating Committee, headed by Senator Sheppard (D. Tex), attacked the Pennsylvania WPA in its report preceding the November election. It is now preparing a formal report to the Senate, and a member of the committee said today that this would contain “new and startling” statements regarding operation of WPA in Pennsylvania.

PENNSYLVANIA HUNTS

MIDWEST FUGITIVE

WASHINGTON, Pa. Dec, 21 (U. P.) —Western Pennsylvania police were asked to watch highways today for a man tentatively identified as Ben J. Dickson, Midwest fugitive who has been hunted by the Federal Bureau of Investigation for kidnaping and bank holdups. State Police issued the warning lafter a man said tq resemble Dickson offered furs for sale at nearby Cecil. John Wagner, cashier ot a Cecil bank, said a man and woman believed to be Dickson and his young wife, offered the furs to him: at bargain prices under th2 pretext they were driving into Csnada and wanted to avoid paying duty on the garments,

his firm’s books were falsi-

IN INDIANAPOLIS

l

Here Is the Traffic Record | County Deaths |Arrests ...... 54

(To Date) Speeding ..... 6 1938 ...p.ee0 XT pn 2937 ...5.... 151

Reckless Driving sqee 1 City Deaths

(To Date) | Bunning Prefer-

ential Street. 9

‘Pedestrians .. 51 Running Red

11937 sssiseeess100

Dec. 20

|Accidents .... 12| Driving ,.py 0 [Infuren sescoe :

5 Dead sedrecsne 1 Others sccgo0e 2918S.

lm e——— MEETINGS TODAY | | Biwania Club; luncheon, Columbla Club, “Lions Club, luncheon, Hotel Washington, itana; lis Apartment Owners’ Associa-

{ ¢ion, luncheon, Hotel Washington, noon. Acacia Club, dinner, Claypool Hotel, 8

seen

Drunken

| 1 | |

J Men s Discussion Club, dinner,

6 p. m. Purdue tami | Hotel Severin, no | 12th District ican vegion, iuncheon, | Board of Trade, noon. | Sigma Alpha Epsilon, luncheon, Board of | Trade, noon. ! aaa Management Division, | Indianlis Real Estate Board, luncheon, Canary Cottage, roon. Delta Theta Tau, Tavern, noon Beverage Credit Group, luncheon, Hotel Warren, noon Co- Operaitve Club of Indianapolis, lunch- | eon, Columbia Club, noon. Indiana Motor Traffic Association, juncheon, Hotel Antlers, noon. Indianapolis Junior Chamber of Com- | mesee, luricheon, Canary Cottage, noon.

Association, Hineheon,

luncheon, | Seville

MEETINGS TOMORROW Indianajolisis Real Estate Board, lunchWashington, noon. Indianapolis Teathie | party, Claypool Hotel. sc aavsiu Club of Indianapolts, lunch- ,- Columnbia Club, “sigma Mu, Ey Hotel Washington, ngon

“Rainbow Division Veterans’ Jisasciation, dinner, Hotel Washington, 6:30 Shrine Drom Corps, dinner, Hotel Wash. gton, 6 p. ne TOA! ol luncheon, Board of Trade,

ob, Christmas

DS otin can Business Club, luncheon, CoTals Club, Paper edit Group, luncheon, Men Grille, William H. Block C Saran Club, lunchecn, Murat Temple

——t 2

Light eeecene 9

’ Ay Omisron, dinner, Claypool Hotel, 7}.

o., noon. | in

Radio Euginesrs Guild, Antlers, 8 p oil Taub, Se cheon, Hotel Severin, noon. Construction League of Indianapolis, luncheon, Architects and Builders Building, noon,

meeting, Hotel

Beta Theta Pi, luncheon, Canary Cottage, noon.

MARRIAGE LICENSES

(These lists are from official rogordy in the County Court House. The Times, therefore, is not responsible for errors in names or addresses.) William Marshall, 22, of 1123. Cornell Ave.: Roberta Sargent, 19, .of 2534 Columbia St. Wilbur Srondns of 1635 pratinty Ave.; Jrene McCaltum, 19, of 524 wa

Iow Duane ell on Chsrmichael, 21, of 1093

Holm E. Whi te, 16, © 1138 S. Sheffield on Joseph Minett, 63 Bloomington: Minnie R. Kidwell, 52, of 810 Coffey St. Ke ith L. grr 21, Lorraine Hotel: Orate i seit N. Tom le A

Sekt Ernest Ramsey, 31, of 209 N. Rando! h a5 Gat therine Cummings, 21," of 248

Ches A. Parker, 22, of 2719 Frankjn presi Marjorie E. Riyster, 27, 17, of 506 ra.

BIRTHS ~. Boys

Robert, Anna Curtis, at Methodist. Edmund, Louise Bingham, at St. Vin-

on 2 naline, Walter Harrell, at City. 1 Arthur, Esther Brumley, at 440 N. Jeferson Samuel, Viola Henry, at 816 Highland. 0 A Esther McDonald, at 1475 Roose-

Ross, Meredith Reynolds, at 1014 W. oa Frank, Frances Jacobs, at 2206 Duk Girls Robert, Wilma Lacy, at 5540 N. Illinois. oauprey, Helen Slayden, at 2226 Carroll-

ITY. Ella Hickman, at 728 S. lllinois. oe obery, Margaret Miller, at 1409 S. New

sey. “Miiton, Pauline Baltimore, at 1945 Carro

Joseph, Argabelle Mayer, at Methodist. Herschel, Gwenn Harold, Howard, Ruth Frazelle, 2% Methodist. Bernard, Esther Keene, at St. Vincent's. (Anthony, Naomi Uphaus, at St. Vin-

Robert, Rita Jackson, at DEATHS

Albert E. Drew, 68, at 3268 Park, coroA Scelusion Ry an, 38. t 4422 BE. Wash rry W. 2 - ton broneho-pheu nia.#® ag lett. i at $718 Uni or |

Indianapolis Camera Club, meeting, 110}. E. Ninth St., 8 p. m. |

e St. | Precipitation 24 hrs. ending 7 a. m... N Total precipitation since Jan. 1.

at Methodist. |<

Willard, Kathleen Wolfenberger, at City. ve

Norma Lee Bennett, 8, at Riley, acute nephritis.

Mary [Wacuistesor, So, at 1427 N. Delaole, cirrhosis of liv na M. Wyatt, Hy J) 308 Sanders, anfay pectoris. Robert Edwards, 62, at Central Indiana, broncho-pneumonia.

George K. Wimborough, 55, at Methodist, lobar preumonis,

OFFICIAL WEATHER

le—_By U. 8. Weather Bureatemml

INDIANAPOLIS FORECAST—Fair and colder | tonight; tomorrow, increasing cloudiness and warmer. aswel 7:04 | Sunset

TEMPERATURE : —Deec. 21, 1937— ‘78 Meese. 20 “11 DP. Miceroess 41

BAROMETER

Sunrise ......7:04 | Sunset ...... 4:22

00 ees. . 42.75

‘| Excess since Jan. 1

MIDWEST WEATHER Indiana—Generally fair tonight snd tomorrow); colder tonight except in extreme southwest portion.

mT colder in central and north portions nig omorrow increasing Sloudiness and rising temperature in west portion.

Lower Michigan—Considerable cloudiness, snow flurries in extreme east gortion; colder tonight; tomorrow generally fair Ohio—Partly Sloudy and colder, snow flurries near Lake Erie tonight; tomorrow increasing cloudiness, . rising temperature in extreme west portion. Kentucky—Fair. colder in east mnortion tonight; tomorrow increasing cloudiness, rising temperature in west, rain or snow in extreme west portion,

WEATHER IN OTHER CITIES AT 7 A. M.

tation Weather, A TeX. seneoss 30.20 Bismarck, N. D. ......C Boston .Cl

Chicago oe Cincinnati essssevue Cleveland

Omaha, P ittsburgh Portlan San ont: Tex gi a cisco

The three surviving Musica brothers pose together for the first time after a New York County Grand Jury indicted them on charges of grand larceny and forgery arising from the swindle behind

Claims WPA ‘Filthy Mess’ Senate ‘Police’ Will Meet

Je:

Expenditures Committee to Draft Final Report on Relief Setup.

WASHINGTON, Dec. 21 (U. PJ. —The Senate Campaign Expenditures Committee that “policed” the Nov. 8 elections meets today to consider the preliminary draft of a report expected to provide ammunition for Republicans demanding Congressional investigation of the

A. Investigators, who charged that relief funds were misused in several states, submitted to the Committee a digest of evidence gathered in precampaign inquiries. On the basis of this digest, the Committee is expected to reach partial agreement on its final report. “In view of the reports that have been made and the statements that have been issued by the Committee, I cannot see how we can avoid taking a stand on the issue of WPA political activity,” said Senator White of Maine, only Republican member of the group. Democrats Silent Mr. White indicated belief that the Committee’s report would be couched in language so strongly denouncing certain campaign tactics, that it would be unnecessary for him to. file a minority report. Democratic members of the Committee would not comment on what proposals might be included in the

report.

In starting its inquiry, the Committee found conflict of opinion on provisions of the United States criminal code dealing with contributions to political campaigns by Federal employees. It was expected that recommendations would be made to clarify the law.

DR. TOWNSEND PLANS TO WATCH CONGRESS

Scheduled to Arrive Shortly After Opening.

Times Special WASHINGTON, Dec. 21.—Dr. F. E. Townsend will arrive in Washington shortly after

Congress on Jan. 3/ his national

a telegram today. . He will probably remain here at least two months, the wire added.

On Jan. 13 he will celebrate his 72d birthday here.

editor, will head the Townsend Legislative [Bureau here, ‘it was announced; He is described as a onetime friend of the late Congressman Lindbergh, father: of the flier.

owntend headquarters, will

reasure in its original form calls for a 2 per cent tax on all transactions, the proceeds to be prorated among all Americans past 60, up to a maximum of $200 a month. The Sneral Welfare Federation favors a somewhat similar 2 per cent gross income tax, but with certain

pensions to $60 a month,

Tomorrow— Shortest Day Of the Year

x darkness falls suddenly ‘tomorrow while youre on your way to get that tie for Uncle Willie you'd forgotten, just remember that the Weather Man warned you today that tomorrow is the shortest .day in the year. That means, of course, that there will be less daylight than in any other day of the year. . Astronomically speaking, the sun will sit lower in the sky than it sits on any other given noon.

It also means that there will be only nine hours and 26 minutes of sunshine tomorrow, or that there will be if there aren’t any clouds. From present indications, Indianapolis will have increasing = cloudiness, rising . temperatures and possible snow tomorrow. ? Anyway, it’s the shortest day of the year

opening of |

headquarters in Chicago revealed in|

Otis J, Bouma, former Wisconsin |

hg with Mr. Bouma, accord- |

major exemptions, and would limit

Times-Acme Photo, the downfall of McKesson & Robbins, Inc. right—George Musica, alias George Dietrich; Arthur Musica, alias George Vernard, and Robert usin, | alias Robert Dietrich.

Please Note The MOGADORES ‘and the BOUCLES are really very extra special, 55¢

Left to

[santa L. STRAUSS &

MINTONHINTS HE

MAY FAVOR FRY OVER GREENLEE

Indicates He'll Reconsider On Revenue Collector Job If Party Wishes.

‘By DANIEL M. KIDNEY ‘Times Staff Writer

WASHINGTON, Dec. 21.—Senator Minton indicated today he is ready

to approve Paul Fry, former Indiana Excise Commissioner, to succeed Will Smith as internal revenue collector at Indianapolis “if the Indiana Democratic organization wants him instead of Greenlee.” He also said he would join with Senator VanNuys in approving the

reappointment of Adolph Seidensticker as Indianapolis postmaster. Mr. Greenlee, now a member of the National Bituminous Coal Com-

Straus Says:

A GIFT opportunity! A tright spo

mission, has been the junior Sena-

tor’s first choice for the post. The plan to give Mr. Greenlee the job reportedly - was upset by Frank M. McHale, Democratic National Committeeman, when he was in Washington recently. Mr. McHale has refused to comment on the report. Senator Minton also, said he probe ably would appoint John Hogan as clerk of tle Senate pensions committee when he takes the chairmanship. Senator Minton left for Indiana accompanied by the Senator's daughter, May Ann, who is attending school here. The Minton family will probably remain in New Albany, but he will return to Washington in time for the opening of Congress on Jan, 3, the Senator said.

QUAY CONTRACT AWARDED

WASHINGTON, Dec. 21 (U. P). —The Navy Department announced today award of a contract to the Healey Tibbitts Construction Co. of San Prancisco, for a 1150-foot extension to the quay wall at the Mare Island Navy Yard at a cost of $431,000. The contract calls for

completion of the work within 300 calendar days.

NEW FIGHT LOOMS ° ON REORGANIZAT

Roosevelt Reported Ready Renew Demands.

"WASHINGTON, Dec. 21 (U, P.) == President Roosevelt, it was learn today, plans to renew his demand for reorganization of ‘the executi departments of the Federal Gove ernment in his message opening 4 the new Congress Jan. 3. Despite optimism among .some Administration leaders, plans to ree vive the reorganization bill appeared headed toward a battle similar to the one that scuttled it last year. . The President conferred yesterdsy with Reps. Cochran (D. Mo.), and Warren (D. N. C.), who piloted the bill which the House killed at the end of the last Congress. Speakep

of the House Sapiehesy 3 returns te the capital today a expected to confery immediatly ‘with " President.

Store Open Thursday, Friday nl : Saturday Nights Til 8. i

Sa ree

Cima CF

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(2 for 129)

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for the worried—a notable bk selling of GENTLEMEN'S TIES. The patterns look swell in 2 i box— and on a man's chest. The selection is “almost without limit. Persians—that are smart. Stripes—that are new. Small figures, that are in big demand. A manner of designs, scrolls ani color effects. The ties will be spread [8 S0 that you can get at them!—

FE WOOL TIES, SPECIAL wo