The Archive · 1938

Payments to Congressmen

A responsible Government official said that a preliminary investigation had indicated that the politicians under investigation were not involved in any wrong doing.

It was learned that the drug firm had made alleged payments to a Con-grossman to make addresses in Congress bearing on the retail drug legislation.

The death of Donald Coster and the revelation of the masquerading of his brothers under assumed names followed in the wake of amazing developments of a week following the filing of a voluntary petition for reorganization on December 8.

With directors of the firm clamour-' ing for the resignation of Coster and George Dietrich because their names were linked with a court suit over the disappearance of US$10,000.000 of the company's assets, Federal agents arrested them December 14 on charges of violating the Federal Securities Act.

They posted bonds that they would appear in New York and were allowed to remain in Coster's Fairfield, Connecticut, home.

Text read from the printed page and cleaned; old type leaves the occasional error.

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