PAGE TWO
The OREGON STATESMAN, Salem. Oregon, Tuesday Morning December 20, 1933
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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 .
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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).
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Charles F. Michaels, San Francis
co baslness man and executive
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ttsHbttMMi
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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),
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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.