New York, Dec. 18.
The fact that Scotland Yard assisted in the investigations which led to the downfall of Philip Musica, Alias F. Donald Coster, whose arrest was ordered by Federal authorities on December 13 on a charge of filing false financial statements, was revealed by Mr. James Caffrey, who directed the investigations, He said that a printer told him that Coster had had elaborate letter-heads printed, representing a dozen reputable British firms. He also had invoices meticulously designed for various fictitious corporations throughout the world.
On this stationery, said Mr. Caffrey the McKesson and Robbins Drug Corporation, of which Coster was President, received, through their Canadian agents, fictitious receipts, bills and notifications of money owing to McKesson and Robbins.
Mr, Caffrey said he cabled Scotland Yard and within ten hours it informed him that the McKesson firm had no business connections with the London and Liverpool firms.
Nevertheless, he said, there was correspondence from throughout the "world—Australia, India, South Africa and everywhere.
The investigations, declared Mr. Caffrey, are likely to continue for many months,—Reuter, While State Department officials professed themselves to be without information concerning the shipments of arms to belligerents, Acting U.S. District Attorney, Mr. Gregory F. Noonan, said that investigations had so far revealed large-scale shipments to belligerents in Bolivia and Spain. Mr. Noonan said that the evidence of large-scale munitions deals had already reached such proportions that he had called a conference of all investigating agencies on Monday to consider that phase of the investigations.
The ramifications of the scandal tonight reached such a magnitude that the New York Attorney-General's office ended its public hearings and was learned to be taking secret evidence involving charges that someone concerned in the firm had supplied arms to Bolivia during the Gran Chaco war hoping to corner the Bolivian quinine market.
Arrests For Gun Running Expected Federal agents this evening res vealed that others "just as important" as Philip Musica were involved in the affair. The Assistant U.S. District Attorney Mr. Irving Kaufman said: "Based on certain facts in our possession we know there are other people.—I would mot say higher in the scheme, but just as important as Coster The three surviving Musica brothers, George, Arthur and Robert, were still held in jail tonight, being unable to furnish bail which was set at U.S. $100,000 each. In addition, subpoenas have been issued to one Republican and one Democratic politician in Connecticut, and also to two of the Musica sisters. It was also strongly hinted that other persons unrelated to the Musicas might be arrested shortly in connection with the gun-running and other crimes attributed to Philip
Text read from the printed page and cleaned; old type leaves the occasional error.