War Department officials said that "Musica, or Coster, never purchased rifles from the United States Government for re-sale abroad.
Army records show the War Department possessed' 1,925,000 Lee Enfield rifles used in the World War. Of this number 290,000 were sold to the Philippine Commonwealth and 59.500 were disposed of in other parts of the world and also domestically. The Government still possess 1,925,500 outmoded Lee Enfield rifles because various units are continuing 'o return this type of rifle.
Mr. Gregory Noonan, acting United States Attorney, disclosed methods through which Coster was able to foist records of reputed deals in the crude ding department, im which there is an alleged shortage of U.S.$18,000,000.
He said Coster printed fictitious Dun Bradstreet reports which were partly based on audited statements submitted to the Stock Exchange in 1937.
Meanwhile, the New York State Attorney General produced testimony that Coster was an autocratic executive whose decisions were seldom questioned.
Mr, William J. Murray, first vice-president "and director of the drug firm, testified that only last November another executive had attempted to obtain the necessary power to close the crude drug department.
Renown as "Expert Explaining the directors' apparent gullibility, Mr. Murray said that Coster was reputed to be one of the greatest experts in the world on crude drugs.
In compliance with the request of Mr. Brian McMahon, Assistant United States Attorney General General and in charge of the investigation in the activities of Coster, the police today arrested and held on the charge of "Conspiracy to violate United States. law, Mr. Benjamin Simon, a high-salaried member of McKesson & Robbins whose exact duties are still to be made clear.
Mr. McMahon sought to connect Mr. Simon with the Mr. Benjamin Simon brought to trial in 1920, at the time Coster was known as Musica and wes charged with subordination and perjury. He announced that by this arrest he hoped to establish a link between the various activities of Coster and ascertain Coster's exploits during the period of transition from his identity of Musica to Coster.
"Mystery" Young Man Reports from Philadelphia said that a mysterious telegraphic tip led to the arrest of a young man identified as Mr. Richard Mittman. He was ordered to be held in lieu of his failure to post U.S.$25,000 as bail.
Detectives said they believed him to be involved with Musica's gunrunning activities. Federal agents and Customs officials working on the vase refused fo divulge the information they obtained in questioning Mr.
Mituman:
Meanwhile, the authorities revealed that the widow of Coster, who committed suicide rather than face the charges of the Federal Grand Jury, filed an application to admit her dead husband's will She is the sole beneficiary in the will of Coster.—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.