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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Dec. 20, 1938)
PAGE TWO The OREGON STATESMAN, Salem. Oregon, Tuesday Morning December 20, 1933 Mmsicas - Master imiMMyM.iu.....-!&Kxevri,.. 'fl A V 4 X -...--: v:.'.-:-k:- ..fc - -r. - k ' - s I"- ' ; ' ; ' $r' V " S r r '4' 'I ......... - -i..: 7 W 1 ' W mi i fctj I I Exposed as Philip Mosk-a, eldest brother and "brains" of the swindling Mnsica family which perpetrated a million dollar "hnman-halr" larceny In 1912, K- Donald Costa, president of IIcKesson A Bobbins, Inc killed himself. At left, as he appeared In 1913 as Philip Mnsica. Right, a t e a t photo taken shortly before his suicide. (Acme Telephotos).' j . -S. 1 "J 'V. 8 n.- S VI "V T nt of the exposure of Donald Costa came the additional rerelatlon that his two associates, high In tho McKesson & Bobbins concern were really his two brothers, Arthur and George fnslca. Photo shows Arthur Mnsica, alias George Vernard, left, and George Slaska, alias George Di&rich, right, with the elder Mnsica in the center. (IIX). f V 4 i. Charles F. Michaels, San Francis co baslness man and executive . Vi ttsHbttMMi i 1 vice-president of the McKesson Not in trouble for the first time when their widtj-scale swindling oper Robbins company, who wiU tlons of this year were discovered, the Musfea family had been In aw v?tatl,onli0of0f the stS OBt of the toUs of tbe Uw Fince the first f the century. Photo growing maze of Coster-Mnsica shows an old file print of the entire Mnsica fjuniiy when they were illicit activities. (UN), f- arrested In New Orleans for swindle In lia (UN). ; m -..i AboveHere is the palatial New . Haven, Conn., home where F. Donald Coster, revealed as Phi lip Mnsica, ended his amazing swindling career Just aa federal j agents were knocking at ; the door to arrest him. (Acme Telephoto). j Left John M. Kan tor, held by police on a swindle charge, is shown in New York police headquarters. Kan tor Is said to have told: Securities & Ex change commission probers that he was approached by BIcKes son M Bobbins officials on pmr ' chase of 250,000 rifle. (Acme Telephoto). j Right J 1 1 a it F. Thompson, treasurer for, the , McKesson M , Bobbins firm, pictured as he testified during a recent inves tigation. (UN), 4 I ... v ?l i ! - ; ' - J 1 Report Made On Education Marks Points out Slate Has not Used Taxes in Building ALBANY, Dec 19.-ff)-0reg;on In the last four years has obtained buildings for the stats Institutions of higher education without using any educational tax funds though the building rain la J2.58J.047 Governor Charles H. Martin was told by Wlllard L. Marks, presi dent of the state board 0! higher education. - . The letter, to accompany the biennial report of the board to the governor, reviews briefly the pro gress of the state system during the last two rears, explains the financial requests being made for the coming biennlum, mentions major administrative changes and reports on the success of the sev eral Institutions in educating the youth of the state. Facilities Needed Regarding the construction pro gram President Marks points out that the facilities have been bad ly needed for several years but that the board's limited budget had to be used almost entirely for operation, leaving no funds for new buildings. "It will be noted that this build ing program was financed almost entirely by federal grants and loans, and private gifts," Presi dent Marks wrote. "The loans are secured by the student building fees at the various institutions and are not obligations of the state of Oregon at all." President Marks then shows that only $133,000 of state tax funds are used in this entire con struction program and of that amount $33,000 was from the state's restoration fund on ac count of loss by fire, and $100, 000 was from previous contingent legislative appropriations. Federal Aid Used The amount of state funds used is only approximately five per cent of the total cost. More than $1,000,000 or almost 40 per cent was received as outright cash grants from the federal govern ment, and $376,910 was supplied through the generosity of private donors." . A tabulated list appended shows one or more new buildings for every unit of the system. Listed are a training school, gymnasium and girls' dormitory for Eastern Oregon normal at La Grande: a physical education building for Southern Oregon normal at Ash land; physical education and ad ministration buildings for Oregon normal school at Monmouth; a combined library and auditorium wing, and a tuberculosis hospital at the University of Oregon medic al school in Portland; library, physical education, health service buildings and grandstand at the University of Oregon at Eugene; and chemistry, health service and agricultural engineering buildings and remodeling of olf science hall at Oregon State college at Cor- vallis. Bids Are Opened For Lig Switches PORTLAND, Ore., Dee. ls-i The Bonneville dam administra tion opened bids from four. com panies today on circuit-breaker installations required 10 inter rupt the flow of electricity on the dam's power transmission network. ;..' - Although most homes can be lighted by the flip of a SO-cent switch, the breakers will cost from , $18,000 to $150,000 each. They . will be- located ; in sub-stations la Portland, Vancouver, Kelso, Salem, Eugene, Hood Riv er and Raymond. The entire or der, for the seven sub-stations will exceed $300,000. j The low over-all bid vas sub mitted by the Westlnghouse Electric - V Manufacturing ' com pany. ' j Coast J3und Leader Hit LOS ANJELES. Dec. 1 Mar ine us autrict attorney's office asked a, ffderal court today to cancel the.v American citizenship of HermaK Schwinn, west coast director ofe the German-American Bund, assorting that the papers wera raiegaUy procured." Legionnaires Give Cheer for Needy Enough foodstuffs and provi sions to make a sizeable truck load were brought by members of Capital Post No. 9, American Legion, and the auxiliary, to the 'Christmas party" held on their regular meeting night, Monday at the Fraternal temple. The pro visions will be given to needy families. The program, arranged by the auxiliary, included numvers by the auxiliary Quartet, song and dance numbers by Lorene Palm ateer and Patricia Zosel and readings by Beth DeLapp. Thera was a luncheon followed by dancing. At the regular post meeting a eulogy to Glenn Porter, last past commander of the post who died recently, was delivered by O. E. "Mose" Palmateer, past depart ment commander. It was announced that begin ning with the first January meet ing, admission to post meetings would be by 1939 membership card only. Moody Telegraphs Outlook Is Good Ralph E. Moody, Salem attor ney representing Gor. Charles H. Martin at a social security board hearing in Washington, D. C, oyer whether the state's new law to regulate picketing and boycot ting conflicts with the state un employment compensation law, telegraphed the governor -today that "the Indications for a favor able result to us are good." Moody, who also is the gover nor's -special prosecutor of labor terrorism cases, said he would leave tonight for Salem. , Brazilian Railroad Crash Kills Thirty RIO DE JANIERO, Brazil, Dec. lSriAVOitlcials of the Central Do Brasil railway said SO persons were known to be dead today in an express-freight train collision 70 miles north of Rio De Janlero. Lauro Miranda, the line's traf fic chief, said the toll might be increased, since wrecking crews had not completed search of the wreckage. Coster-Mnsica was Host for Three Oregon Druggusts in 1929, Recalls Secretary of State Pharmacy Body But little over nine years ago, F. Donald Coster, nee Philip Ma-' sloa, the swindling head of the McKesson-Robblns drug firm who committed suicide in New York, was a "quiet, retiring, rery hospi table, unassuming gentleman," according to Linn Jones, secretary of the state board of pharmacy, who yesterday while in Salem on business for the board told of his elose association with Coster dur ing the summer of 1929." " "Coster invited Fred Chapman of Roseburg, E. A. Robinson of Portland and myself, along with pioneer druggists from other states, to a convention In Bridge port, Conn., and New York," re lated Jones to a Statesman re porter, f or the purpose of - ac quiring ideas concerning the wholesale and retail drug business." It waa Coster's ambition at that time, according to Jonea. to con solidate manufacturing, wholesal ing and retailing of drugs. "It was a sound ldea,"smid Jones, "if he'd been square about it." "We were given a 4S-a-day suUe of rooms in, the Roosevelt hotel, had assigned to us How ard Phillips, secretary of the McKesson-Robblns company, a big limousine placed at our disposal, and in general, Siren millionaire treatment," Jones said. At that time Coster knew prac tically nothing of the drug business,- and admitted it, according to Jones. - "His personal appearance re minded me most of an aristocratic southern " gentleman," Jones re called. "He drank but little, smoked cheap Virginia cheroots, was extremely hospitable, rery modest and not at all presuming Duplex Houses Are Plan For Capitol and Marion Construction of two. duplex houses costing approximately szs.ooq is planned at the north west corner of -Capitol and Mar lon streets, the city council was Informed last night in a letter from Dr. Floyd B. Dayton of Port land. The letter requested change of fire sone to permit him to use frame construction. Sixth Is Charged As Larceny Aide Salem Couple Is Charged Being Members of big Burglary Ring EUGENE, Ore., Dec. 19-(3)- Paul Browniield, Eugene service station employe, was held by state police investigators tonight as an accessory in an alleged northwest burglary ring after a weekend roundup that resulted in several arrests at Vancouver, Wash. Sergeant Lowell Hirtzel said Brownfield admitted a part in the gang's activities. Hirtzel said the ring had preyed on at least two Eugene wholesale houses, taking mostly tobacco and confections which were trucked to Vancouver. At Vancouver Prosecutor Eu gene Cushing filed grand larceny charges against Frank Carstens, Clara Grams, Relnhold Grams, Edward Huffman and John E. Wilson. All were in custody ex cept Wilson. Grams is a Salem restaurant operator. Cushing said most of the 13,- 000 worth of merchandise seized in the Grams home at Vancouver last Thursday was from whole sale stockrooms In Eugene and The Dalles. Reinhold E. and Clara Grams are listed in the city directory as operators of the Mi not Tavern, 1999 North Capitol. Scattering Snow Strikes Portland PORTLAND, Ore., Dec. 19-GP) Desultory snowfalls followed sleet in Portland tonight and tem peratures within the freezing lim it were general throughout the state with the exception of the coastal country. Although the snowfall was fairly heavy at times the alternating rain melted the snow as fast as it tell. Although the mercury climbed rapidly from a minimum of 32 degrees here early today, the wea ther bureau predicted another icy plunge tonight. Snow flurries were regarded as possible east of the mountains tonight and Tuesday. Low temperatures Included Ba ker 28 degrees, Bend 22, Brook ings 40, Burns 22, Hood River 28, Lakeview 22, Medford 28, Newport 36, Pendleton 24, Rose burg 36, Siskiyou Summit 32. Mormons Prepare To Aid Brethren PORTLAND, Dec. 19.-C5V-A campaign to remove all Mormons from government relief rolls within 60 days was launched to day by a stake welfare committee from the church of Jesus Christ, Latter Day Saints. - M. L. Bean, stake president. said the time limit might be ex tended, however, because the com mittee had not completed a sur vey of the number in need of assistance. The northwest's first Mormon warehouse will be opened here about February 1. About 3000 cases of essential merchandise, large quantities of fuel and cloth ing, already are available. Republicans Given Deferential Nods, Says Rep. Barton NEW YORK. Dec. 19.-t5V-Reo. Bruce Barton (R-NY) gleefully reported tonight "Everyone In Washington is being courteous ana aeierentlal to republicans these days." "The word has gone around among; the janitors and nolicemen and everybody that they had bet ter begin to be sweet to us," he told the New York county repub lican committee. "Because In two years we are going to be the ones to say what's what." Sleepless Night Is Spent by Pope VATICAN CITY, Dec, 19iff) -Pope Plus XI spent a restless night hut Vatican circles report ed he showed no special harm today from a long and tiring ceremony oxer which he preside! yesterday. The 81-year-old pontiff, who had refused to curtail his activi ties .since a severe heart attack November 25, was prevailed up on to spend today in absolute rest. High Speed Plane ont DOWNEY, Calif., Dee. 19-ff)- Productlon of a highly stream lined six-ton, single-seated attack bombing plane with a top speed of 243 miles an hour was announced today by the Vultee aircraft di vision of Aviation Manufacturing corporation. Jobless Law Case Incites Word Wars Unemployment Body Men State Labor Bill not to Hurt Benefits (Continued from page 1) ful every bona fide labor organi zation in Oregon. It dissuades and discourages and practically makes unlawful the Joining of a labor organization." Padway called the Oregon ini tiative measure a 'studied at tempt to revert to 1806 and the old injunction system of dealing with labor through the courts. Oregon has legalized the repre hensible yellow dog contract and brought into existence again the company-dominated union." Padway Says Law ' Is "Devilish" He concluded with the asser tlon the Initiative contained "dev- ilish language" conceited by shrewd attorneys who "pawned it off on the people." Shortly before the hearing end ed, Campbell told the board an unfavorable decision would do "irreparable damage to the work ers of Oregon, the unemployment compensation commission and the employers of the state." He estimated that if the em ployers were forced to pay the full federal tax they would be billed each year for about 33,- 000,000. He read a letter from Governor-elect Charles Sprague saying he would ask the legisla ture at Its next .meeting to remove all features of the state's unem ployment compensation act which might prevent its certification by the social security board. At this point Padway remark ed several labor organizations in various parts of the country were already boycotting Oregon pro ducts because of the new restric tions on picketing. "I wish you would carry that back to your governor," he said. Truck's Purchase Okehed by Council Purchase of a pickup truck from the Valley Motor company. lower bidder, for $535, was or dered by the city council last night. The truck will replace the fire department's present chimney fire "rig." All bids for a coupe to place the fire chief's present car were rejected. Other council actions included: Granting of street light peti tions for Frederick and Thomp son, 15th and Jefferson, and 17th and Pearl street Intersections, and at alley and 12th street, block 37. Assuming operation of street lights in front of Lausanne hall. Referral to committee of peti tion for removal of wood trucks now parking in vicinity of Union and Commercial streets. Three Named for Clean River Body Gov. Charles H. Martin yester day appointed Dr. Richard B. Dil- lehunt, dean of the University of Oregon medical school, Blaine Hollock of Baker and Albert Burch of Medford to the state san Itary authority to administer the stream pollution law, passed at the general election. The other member- of the au thority- are Dr. Frederick D. Strieker, secretary of the state board of health; Charles Strick- lin, state engineer, and John C. Veatch, chairman of the state fish commission. Musica Had Great Store of Alsohol NEW YORK, Dec. 19-GP)- F, Donald Coster Musica, the dead swindler, was described by a fed eral official today also as a mas ter bootlegger "who apparently withdrew enough alcohol or di verted enough to keep the state of Connecticut drunk for 10 years." "That Indicates." added Asst. Atty. Gen. Brien MeMahon, "that It must hare been shipped else where. 1 Dishwasher Held Insane After Hiding in Plane LOS ANGLESNDec. ueorge Mliler, - z. dishwasher found hiding in an army bomb ing plane at the Vultree plant in nearby Downey Saturday, was charged with Insanity In a com plaint signed ' today by Deputy Sheriff James Roese. He will be placed under observation pending a hearing Friday before Superior Judge Ben B. Lindsey. Forest Roads Get $930,000 North Santiam Is Alloted $70,000 for Six-Mile Surfacing Job PORTLAND; Ore., Dec. 19-m -National forest roads in Oregon will get a total of 1930,000 dur ing the fiscal year of 140, tne state highway commission. In ses sion today, was informed. The fund, .to be available for allocation after January 1, 1939. was aHotted at a meeting of the commission, the bureau of public r oi d s and the forestry service. Contracts win be next spring. Among the roads to get a slice of the federal money were: Wil lamette highway, .4 mile grading and 6 miles oiling, 1 13 5,000; San tiam, f miles surfacing, $75,000; North Santiam, 6.5 miles surfac ing, 170,000; Alsea bridge near Tidewater, 170,000. A Portland delegation urged the state road board anew to de velop Front avenue in Portland to handle north and south traffic. PORTLAND, Dec. 19-UPV-E. B. Aldrlch, Pendleton publisher and member of the state highway com mission, was "pleased" today with the commission s setup. Aldrlch admitted his pleasure arose primarily from the .annual convention of the National Association- of Highway Officials at Dallas, Tex., where he learned Oregon's commission was almost unique in not being influenced by politics. "Some state highway commis sions are under political influ ence," he said. "Oregon, lightly populated but with lengthy high ways, has no money for politics. The non-political setup here Is one of the best." Aldrlch Indicated one of the most Important resolutions grow ing out of the Texas meeting was that seeking important resolutions growing out of the Texas meeting was that seeking support of all states for roadside Improvements. He said the resolution would keep highways clean and ban unsightly billboards. Legitimate business signs would not be bothered. Six Are Dead From Crashes Wintry Roads, Christmas . Crowds Cause Traffic Tragedies PORTLAND, Dec. 15-r-Sl Oregon residents died on high way and logging accidents over the weekend. Wintry roads and Christmas thorngs caused the traffic fatalities. Caroline P. Wood, 21, Rose burg, strangled to death three miles south of Halsey when her head and neck were caught be tween an overturned automobile and a door thrown open when the car skidded. Her companions were unable to free her. Tragic Shopping Trip Death ended a Christmas shop ping trip to Klamath Falls for Oswald Mills, 31, Algoma, who was killed when an automobile a riven by his wife overturned. John B. Matson, 55, was Port land's 55th traffic fatality of tho year. He was fatally Injured by au automobile as he steppe i into a street intersection. James Peter Murie, 54, Ban don, was killed when a tree he was falling At the Pat Cornell logging camp near Denmark twisted and struck him. Infant Is Victim Ramona Lee Thomason, 6, daughter of Mr. and Mrs. Roamle Thomason, Klamath Falls, died at Eugene of injuries suffered when an automobile in which she was riding with her parents and W. O. Whiting, also of Klam ath Falls, overturned outh ot here. Miss Cella Branisn, 22, of Alo ha, died Sunday when a car in which she was riding with C. L. Henry, Yakima, Wash., her fian ce, skidded on Icy lavement and crashed into a power pole near Goldendale, Wash. She was en route to her mother's home at Hood River to be married. atriKe on stage mi . rv i nreat mminisne PORTLAND, Ore., Dec. 19-(JP)- -Negotiations for the Union Pa cific stages and 125 union em ployes apparently had forestalled a strike today after reaching a contract renewal agreement Sunday. The company drivers, members of the Amalgamated Association of Street and Electric Railway and Motor Coach Employes of America, all employed on the Salt Lake City-Portland division, will vote on the proposal. Officials, who refused to di vulge terms of the agreement, said it contained no mention of reemployment ot two drivers dis charged by the company. The na tional labor relations board order ed the men reinstated, but the cir cuit court of appeals reversed the decision. The union later broke off contract negotiations and threatened to strike. Europe's Mercury Strikes low Spot LONDON, Dec. 19-UP)-Snow and sleet laden winds swept over Europe today causing at least 20 deaths and crippling com munications in virtually all parts of the continent. Temperatures tumbled to rec ord lows from northern Scotalnd to southern, Greece. Meteorolo gists predicted freezing weather would continue probably over Christmas. Britain, where the mercury fell to an unusual low ot 26 degrees, Fahrenheit, counted 10 dead. Many mines were closed in Corn wall and Wales when thousands of workmen left their Jobs be cause ot the cold. London anticipated its first "white Christmas" in 10 years. Germany experienced its cold est December day In .83 years and the prospects were for a further sinking ot the thermo meter. At 7 a.m. Berlin had a reading of 10 degrees. Three Pedestrians Receive Injuries Three women pedestrians were slightly injured shortly before 6 o'clock last night when a car driven by Roy Cole, 190 Cen ter street, collided with the trio at the intersection ot High and Center streets. The three, who were taken to the Salem General for treatment, were: Mrs. W. A. Sampson anJ two daughters, Mildred and Joyce, all ot 1095 North 15th street. Mildred sustained a cut head not severe; Mrs. Sampson sustained numerous bruises and suffered from shock; and Joyce was unhurt except for a general shaking up and shock. 30 Die as Ferry Crashes Dredger LISBON. Portugal. Dec. 19-JP -Thirty passengers were reported dead and many, missing , today hn & f errvboat sank after a col lision with a dredger on the rlTer Tagus. The ferry sank within, three minutes at a point 609 yards from the shore when rammed by the dredger. Gorrie Promoted SEATTLE, Dee. l-(ff-Frank G.; Gorrie, . an Associated Press man for mors than' 2 0 years, to day was promoted to chief ot the Seattle .bureau in charge of news operations in Washington. Alaska, northern Idaho and western Can ada. ; Chinese Picketing On Docks Spreads SAN FRANCISCO. Dec. 19-F -Chinese picketing to prevent the shipment of materials to Japan from San Francisco spread to- ht to a second ship and was scheduled to extend tomorrow to the offices of Almon Roth, presi dent of the San Francisco Wa terfront Employers association, in protest against what spokes men for pickets asserted was his threat to tie up the port. Lim P. Lee, publicity director' for the United States Chinese so cieties, and I. B. Tolins, public relations director for the United Committee for the 3oycott of Japanese goods announced to night pickets had been assigned to stop longshoremen from load ing the English freighter Beck- enham which arrived today to load cargo for Japan. Tne said a committee repre senting the two organizations called on Roth late .today and that Roth threatened, to close the port of San Francisco If pick et lines were not removed and longshoremen did not return to work immediately. To protest Roth's position, the publicity men said, both organizations would place pickets around the Federal Reserve bank building yhere Roth's offices are located. Demand Is Brisk For Turkeys With Prices 22 to 26 PORTLAND, Dec. 19-;P-De-mand was fairly brisk on the local turkey market today, with buyers offering 22 cents f toms and 25, occasionally 26, for hens. Resale to retailers ran 1 to 2 cents more than the buying pric es. Some handlers reported frac tional advances in the retail market and said there was a pos sibility of consumer reaction. fg d d i t i o s . . . in the Nets MAYVILLE, N. Y., Dec. 19-() -Lester A. Miller, 50, a volunteer fireman who liked to attend the parties the Dunkirk fire depart ment put on after each call false alarms excepted was sent enced to a year, in prison todav for arson. Judge Lee L. Ottaway said Mil ler set fire to a railroad shed, joined his company in fighting the blaze and went to the part afterwards. NEW YORK, Dec. 19-!P)-A trip to tbe headquarters of tbe Amazon river might solve tbe problem of thinning hair. Richard C. GUI, Washington. D. C, explorer who returned with his wife today from a seven-months' search for rare drags, said none of the natives was bald. He discovered thc used a root extract on their hair which "seems to be so good a cosmetic that they can almost grow hair on eggs." GIRDLETREE, Md., Dec. 1! (fl)-A boast cost George Hudson. 14, his life. , , Playing with two young friend yesterday, George bragged about how much electricity he could stand. To prove he could "take it," George hurled a coil of chlckeu wire into the air across a high tension line. . The shock ot 2.300 volts ot electricity killed him instantly. OKEMAH, Okla Dec l&HP) -Jasper Steel pot on his sock, although they still were a lit tle damp, and extended one foot toward an open gas stove to warm it. . The fire that followed put Steel in an Ok em ah hospital with a badly burned foot. The socks had been washed in gasoline.