The Oklahoma News (Oklahoma City, Okla.), Vol. 33, No. 72, Ed. 1 Friday, December 16, 1938 Page: 1 of 24
This newspaper is part of the collection entitled: Oklahoma News and was provided to The Gateway to Oklahoma History by the Oklahoma Historical Society.
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SCRiPPS HOWARD
VOL 33 NO 72
PROSECUTOR SAYS
CAPSHAW TOLD OF
RELAYING PAYOFF
I Oil Broker to Take Stand in Own Defense Former
- School Board Members Called as
1 Witnesses in Trial
(Photos pore 6)
County Attorney Lewis R Morris took the witness
stand in the L H Capshaw bribery trial today and testi-
fied that Mr Capshaw told him he had paid $500 of the
$600 in the alleged Wheeler royalty payoff to Frank
Wilkins former School Board attorney
Mr Morris's testimony ended the state's case
The defendant was scheduled to take the witness
stand in his own defense this afternoon Defense wit-
nesses subpenaed include Otto Rose former School Board
president Roscoe H Price - Mrs J S Poole and Earl
Johnson former board members—------
and Robin Knight present member inki Atm Ani n
of the board
CaAled By Grand Jury Atri Arw LIULLI
Mr Morris' testimony climaxed
the state's case He was questioned sEEN ToNIGHT
by his amistant John Eberle
He said that on June 6 Mr Cap-
thaw had been called before the —
grand Jury There he was asked a
few formal questions immediately Maybe Snow Tomorrow
before the noon hour and then was
Invited to go to Mr Morris' office Weatherman Says
to talk during the recess to the
county attorney and Randell Cobb TEMPERATURES
assistant attorney general Midnight 4 S a m 41
Mr Morris said he informed Mr : : 44 4 a m 45
15 14 a m 44
Capshaw in Mr Cobb's presence 3 m 44 11 a m 44
that Robert Dalgleish A Ben Chad- 4 a m 44 12 a m 52
54
well and George Pasquella oil' : : : 36
brokers already had testified before' I in 42
the grand Jury that they had paid (Weather Detail Page 6) '
Mr Capshaw $600 to get the royalty'
capsnaw souo to get tile royalty
deed for the Wheeler School prop-
erty Said It Was Commission
"Mr Capshaw finally said he got
the $600 but it was a commission
I asked if he paid the money to
Frank Wilkins and he said 'No'
that it was a commission" the
county attorney narrated
"He said he had given Frank
Wilkins $60 or $70 as a fee on a
law suit I asked him if immedi-
ately after the $600 was paid he
didn't drive right on out to Wilkins'
home and after some hesitancy he
said he did go out to Frank Wilkins'
home but that he didn't go directly
"I said 'You paid him that
money didn't you?' He said he
didn't I told him I wanted him to
tell the truth and I was sure the
grand Jury would grant him immu-
nity He still maintained that it
was Just a commission
Cobb Left Office
"I told him he was going to fool
around and get himself prosecuted
"In that conversation the defend-
ant would hesitate and look up at
the ceiling and finally Mr Cobb
—
(Please turn to Page 2 Column 5)
Having Fun?
Hundreds of News readers are
having fun in preparing their
— entries for The NEWSpaper of
1939 Contest
Originality and ingenuity have
brought scissors paste and col-
ored pencils into use by the con-
testants for the prize of two
trips to Miami and the O IL-
Tennessee game in the Orange
Bowl
But it doesn't take something
fancy to win the contest The
prize will go to the writer of the
hest criticisms and suggestions
for The News—and every News
reader has an 'equal opportunity
There's still plenty of time to
get in your entry Rules and full
details of the contest are on
Page 2
Today's Index
Broun 4
Comics 23
Crossword —21
Deaths 2
Editorials 4
Mrs Ferguson 4
Mr Plait 22
Johnson 4
oil News —21
Pyle 11
Peg ler 4
Radio Log 10
Society 8 9
Sports 18 19
Serial 23
Short Story —17
Another touch of winter Will
sweep into the state tonight and
tomorrow with raiz" falling tem-
peratures and possible snow flur-
ries Weatherman Harry Wahlgren
said today
It will be mostly cloudy unsettled
and colder in the city tonight with
minimum temperatures ranging be-
tween 28 and 36 he said The heavy
cloudsshould bring rain to the
city by late tonight with the pos-
sibility of snow by tomorrow he
said
Hopes 'of farmers for rain to
break the long dry spell and
save late crops now facing de-
struction may be answered by
the rains tonight and tomor-
row Mr Wahlgren said
There were scattered showers
here and in other sections last
night Precipitation here was three
one-hundredths of an inch up to
7 a m It wasn't enough to help
crops Mr Wahlgren said
Rain Needed Badly
The need for rain is reaching
serious propor'ions in many parts'
of the state he said Wheat is suf-
fering most but all crops are in a
poor to very poor condition
In several parts of the state wa-
tering ponds for stock have dried
up and water is being hauled long
distance s Although the recent
snows were helpful it will take sev-
eral inches of soaking rains to make
up for the losses already suffered
Mr Wahlgren said
The mercury will dive to the
freezing mark in the north central
portions of the state tonight and
it will be generally colder except in
the extreme southeastern portions
Mr Wahlgren said
Miami Nice and Warm
Temperatures over Oklahoma
ranged from 40 to 42 this morning
In the city the high in the last 24
hours was 56 at 4 p m and 42
at 7 a m
Miami Fla was the warmest spot
in the nation' yesterday-72 degrees
Helena Mont was the coldest-12
BOREN TO SPEAK
To POSTASTERS
By 'United Press
SEMINOLE Okla Dec 16---Congressman
Lyle Boren will be prin-
cipal speaker tonight at the district
convention of postmasters
Postmasters George Watkins of
Tulsa and Joe S Morris of Okla-
homa City were to address the
meeting this afternoon
The problems of being a mayor provided material for a con-
versation between Mayor J Frank Martin of Oklahoma City
left and Mayor R H Fonville of Houston here with a group
of Houston business leaders to attend a Chamber of Commerce
Ilificheon honoring the Texas city
N
STATE BABY
LOSES RACE
WITH DEATH
Strangles as Oxygen
Supply Gives Out on
Dash to City
Sen Josh Lee announced presi-
dential approval of WPA projects
today on the eve of his departure
for Washington He dosed his office
in the Federal Building yesterday
while on his first visit to the city
since his recent illness with a throat
infection and made final arrange-
ments to leave the city
The projects are: Stephens Coun-
ty gymnasium landscaping Co-
manche School District Two $4050:
A fellow worker Guy Quisenberry field ornce unaer we new plan
38 of 1009 NW 23rd-st suffered a Many of the Tulsa officers are ex-
fractured hip They were working pected to be transferred to Okla-
on an addition te the laundry I homa- City
Forecast: Cloudy and unsettled tonight rain and colder to morrow
OKLAHOMA CITY FRIDAY DECEN1BER 16 1938
CITY FALL VICTIM Emmett L Rice state director of
the Home Owners Loan Corp went
STILL UNCONSCIOUS I to Tulsa to plan removal of that
city's HOLC administrative of fices
Still unconsclus from Injuries re- "-' s-"""'"'"' —
ceived when he fell from it scaffold deputy director said today He is
yesterday Cecil Rhodes 45 of 15211expected back tomorrow
NW Seventh-st was reported inl Under the new plan with all ad-
serious condition at the Oklahoma' ministrative duties handled here a
City General Hospital today 120 per cent cut in employes in the
He suffered a fractured skull and two offices is contemplated There
injured left shoulder when he are 70 employes in the local office
plunged 12 feet onto a concrete150 In Tulsa Local offices will re-
floor from a broken scaffold at thel main in the Perrine Building
Crystal Laundry 1646 NW Fifth-st1 The Tulsa office will serve as a
A fellow worker Guy Ouisenberrvifield office under the new plan
This Is News: Texans Come to Oklahoma for Something to Eat
FINAL
HOME
PRICE FIVE CENTS
91Po
Exposed Drug Financier
Shoots Self to Death
Copies were to be sent to Leon
14
'''''''''''''''''''
A Ponca City doctor lost a ' '
race ":::::
': "::!::::::::'' ::::'::::' ::::'::'':? '' a ' : : : :IN "r nrotners ot uoster
with death and a baby lost hee : 4:::::'::::i:::::::::::::::::::: :: : ':: )461 :: : 2: : k:::: :
life today because an oxygen tank i ::::::::::: :::: : H1: - l :C::: ''fril
was emptied : ::':: " : :::: : 0' :: ::::': - : ip!::::: :: Ry EARLE R STEELE
One-year-old Rosamond Clarice " 1
t C:: ::: : ::::N United Press Correspondent
'
: t4' :::: ' : : r: : : ::'
Barnett died near Perry as Dr RB i i:: '": NEW YORK Dec 16—F Donald Coster one of the
homa City from a Ponca Ci
Gibson was rushing her to ty hos-i Okla-1 7!41 :1''''''": : Hit : charges of violating the securities act of 1934 in connecs boldest swindlers of the century killed himself at hi
pital to perform an operation be ' K e
:: :: r:::: : -
suburban estate at Fairfield Conn today as investigating
I: 9'1'::::::: 4::::: :::::::- :::::'::::::
felt sure would save her life :::: r ' ''''':: ' : '''"''V agencies unearthed increasingly fantastic angles of his ac
An operating room was in readi- ii::::: ' :: : :: -4'w : :i: ' I f : :: ' tivities as president of McKesson & Robbins Inc the na- ness at St Anthony's Hospital and1::::::::'v:: '::: '4?: : :: '!' '::k: ": i :' ::::::: ' tion's third largest drug firm
Sergt Dale P Petty of the High- v::::'i::::: V::J'?''': ::' ' Exposed as Philip Mu Dr
sica eldest 'oller and "brainsil
oxygen in his car preparing to meet
way Patrol was loading a supply of r::::':: '' - '6''' '''''''' ': of the swindling Muca family which perpetrated a $1000
the doctor north of Giqrie Y
:
si
i::::::::::
i s : 44zØ1
$: :
000 "human hair" larceny in 1912 Coster put a bullet into
"A piece of tapioca tuck In the
'Started Dash Here' !: : : his bead as United States authorities closed in on him In the
s "::::::::: ' i::: :
child's bronchial tube while she was !':: drug company scandal
::::: :::: :':::::::: :
eating breakfast at about 8:30 aI : : His suicide ended a swindling career which extended
in" Dr Gibson said "We took her
over nearly 40 years the first 20 as the brilliantly darin0
t "
to the Ponca City Hospital We soon: et k i 7yA Philip Musica and the second as the mild-mannered and
learned that an immediate opera- i apparently conservative F
Donald Coster
tion would be necessary to removei Here are some of the principals in the New York drug fraud :
the tapioca which was climaxed today by the suicide of F Donald Coster left Re-arrest of Three Brothers Ordered the turn of the can- Coster and two of his brothers—who posed a
C:°)
"A bronchoscope would be needed identified as Philip Musica notorious swindler at s Georgie
in the operation There was none in fury Investigations also revealed that George Dietrich firm execu- Dietrich assistant treasurer of McKesson & Robbins and
Ponca City tive center is George Musica brother of Philip At the right is ry George Vernard Canadian manager—had been indicted on
"We put the child in an auto and Julian F Thompson treasurer of the drug company who made a pri-
started for Oklahoma City We vat e investigation which started the whole expose
were speeding as fast as we could — tion with $18000000 in missing assets of McKesson-Robbins
going 70 to 80 miles an hour realiz--- —: ouston ty n te in But following the disclosure that Dietrich was George
H
ing that every second saved meant FUND AGENCIES TO Musica and Vernard was Arthur federal authorities were
a better chance to save the baby's ci Ui
-1-N1 TDIU DIMPCIT AtIllki
life -
preparing to re-arreA Coster OD new and more serinue
iiie '
I HIM MAUL I HAIN — -rut 171 SM 1MTY tti 11-t II PUL e Ael 1CP U79
Supply Is Exhausted S crhges
"As we got near Perry I realized '
Super " Highway Plan!
I Involvement of the Musica family abruptly returned
she was sinking" I Further trimming of budgets of to life after more than two decades of obscurit3r apparently
And the supply of oxygen which
did not end with Philip Arthur and George
the doctor had been using to keep A super-highway from Canada to the Gulf of Mexico long discussed!
the 17 Community Fund agencies'
by Oklahoma and Texas civic leaders came nearer realization today as
to keep expenditures within the
the child alive was sinking too Arthur Musica alias Vernard admitted after hie re-
It was exhausted shortly beforel leaders from two cities near which It would pass met at the Chamber of 'final solution today to the Fund's'
1 arrest here that Robert Dietrich who posed as the brother
i Commerce problem of a 950000 shortage
her death
i The Proposal for such a highway passing through Oklahoma City At a meeting yesterday of the of the assistant treasurer and was a McKesson & Robbins
While the doctor's car raced was brought to a head by the visit nd executive committee with
production manager also was in reality a Musica
along the road to Oklahoma City ' — -
of 19 Houston Tex business and agency executives a committee was
Iki
with the Highway Patrol clearing !civic leaders They came here to appointed to meet with the various! Seek to Identify Woman As Sister
its path Ponca City police radioed COMMISSIONERS ASK attend the Friday forum luncheonlagencv leaders and work out budged Authorities had not known of the existence of a fourth
Highway Patrol headquarters here I brother but Vernard asked if Robert Dietrich was his
to send additional oxygen to meet W PA FUND PRORATION of the chamber this week dedicated IrevisiOns with them The revised budgets will be sub- h
to Houston i ! i other replied:
Leaders of both cities pledged me
Dr Gibson north of Guthrie on tt d to the Fund general board
U S Highway 77
-
'Why should I try to kid your
Perry where the child died of A strong themselves to work together to get ' at a meeting
action on making the cuts official
Tuesday The formal
Federal authorities said also they were investigating the
i‘
strangulation is about midway be- resolution 1 the highway routed through Okla-
or taking some course to raise the possibility that Mrs Coster involved in the quiry when a
tween Ponca City - and Oklahoma Works thte
home and Texas rather than down 450000 will be taken
$100000 balance in her brokerage account was tied up by
City pro-rate Prteiotgsresis inionAddsmandstia ti
jobosn too:
the Mississippi Valley as proposed
The child was the daughter of ons In' in valley cities ' ' and went so far sented at yesterday's meeting but' Louise A number of solutions were pre- court order might actually be one of the Musica sisters
Oklahoma instead of o 65
107000 unemployed t pers000
now ' '
!as to appoint a steering budget cutting The Fund goal was The M
committee I
Mr and Mrs Leroy Barnett who employed was adopted today b the to further the project
empy y
live 12 miles east of Ponca City the was!
1
usicas children of Italian immigrants who came
legislative commission of the State all were discarded in favor of the ouise or Grace
h f Naples i883
Highway Patrol reported Airline Road 6325000 but only $275000 has been began their amazing career before
Association of County Commission-
The proposed highway would beraised to date 1910 when under Philip's leadership they built up a tidy
LEE HEADS BACK ers an airline road extending straight!
d inorf f Canada t 'THREE CITY CARS IN They advanced to bigger game in 1912 when with
h and south from anaa o a
"Unless something is one a I little cheese-smuggling business
r
TO WASHINGTON isis will spee
will bring untold suffering and
'then bending to the east for an-
dily result which !point between Dallas and Houston
other straight shot to Houston and TRAFFIC MISHAPS' Philip still showing the way they borrowed $1000000 from
—
a score of banks on a worthless shipment of hair and tried
of our Galveston Three city-owned autos were in- to flee the country'
citizens from exposure and 1
cause death to many I
t
Sen Josh Lee announced pr th
esi- starvation" e re s o I 0 t i o n volved in traffic accidents within' But the achievements of he Musicas before they dis-
24 hours it was reported today
It would be built to accommo-
bYI carded the name and sought to bury their past in 19'20—by
dential approval of WPA projects adopted by commissioners from
today on the eve of his departure 35 counties said date commercial tourist and in the event of necessity military
Sergt A L West bead of the
for Washington He closed his office
I creating new identities through forged birth certificates—
in the Federal Building yesterday Conies were to be sent to Leont travel' police accident squad A fire-truck going east on NW! were small compared with the charges in preparation against
3 a m m 44 1 1 a m gp life a Dette4 UlltillUe ivIJ bU VW WC vctuy a --- --- — — -- 7 — - 4 preparing to re-arreA Coster Oft new and more aerinul
4 a 44 12 a m 52
li a m - 45 1 m 5
Supply Is Exhausted
6 a m 44 2 p p m 36 4 "As Super - Highway Planl TRIM BUDGETS AGAIN charges
I Involvement of the Musica family abruptly returned
!
7 a m 42 1 we got near Perry I realized
(Weather Detail Page 6) i chn Ira c tirstrino " I 1 v I- -I 4-ts 1fet nf4 m 41 rs 4 -3 - -I - - Z 1 1
:
C Phillips governor-elect Ron
Stephens Works Progress Admin-' The U S Government has con- 13th-st clipped a fender on a ear them now
sidered building three such nation- driven by Hubert W Roysten of Linked In Many Activities
istration director the two U S
IsPanning highways one in the east-!811 N Broadway at the Broadway
senators and nine congressmen The Department of Justice the state attorney general
:ern section of the nation one on intersection District Attorney Thomas E Dewey the Securities and
The group is headed by Carl Prix the west coast and one in the' A detective cruiser driven by
of Sequoyah County The commis- central portion Howard Hilbert was involved in a Exchange Commission and the U S Postoffice Depart
'
:
stoners also asked the 17th Legisla-1
It is to eliminate the possibility minor crash at Broadway Etna! Kesson & Robbins in the person of its president engaged ment were piling up evidence which indicates that Mc-
L'
ture to enact a law giving the of this central highway going too Choctaw-av with a car driven by
in
counties an additional 1 cent of the far east to serve Oklahoma—or to:D Lewis 39 of 2210 SW 13th-st illicit activities ranging from bootlegging to gun-running
4-cent gasoline tax This would demand a fourth highway through Claude Wylie 23 of 110 NW 10th-
amount to about $4000000 an- Texas Oklahoma Kansas Nebraska at was charged with reckless driv- Investigators belied '
that:
"
mancne ocnool 1-n81111:Id I wo 4)41JDU
' stoners also asked the 17th Legisla-i
Cleveland County improve general It is 4:o eliminate the possibility
ture to enact a law giving the
drainage in and near Norman 843 of this central highway going too
counties an additional 1 cent of the far east to serve Oklahoma—or to
859 Pottawatomie County addition !
to high chool building landscaping' 4-cent gasoline tax This would demand a fourth highway through
School District 85 84146 Comanche' amount to about $4000000 an- Texas Oklahoma Kansas Nebraska
County organize and operate library and the Dakotas—that the cities
service $8016 Blaine County pre- nually
pledged themselves to work together
pare and serve school lunches Four Traffic Lanes
81431 McIntosh County free home HOLC MOVE TO CUT Under plans discussed the super-
assistance 811200 and prepare and OPERATING COSTS highway would be 40 feet wide and
serve school lunches $7040 ' consist of four traffic lanes
nually and the Dakotas—that the cities! ing Sergt West said after his car
pledged themselves to work togetherIstruck a car driven by G M Head
HOLC MOVE TO CUT' ' Four Traffic Lanes license inspector of 926 NW 23rd-
Under plans discussed the super-
at at NW 24th-at and Shartel-av
OPERATING COSTS Ihighway would be 40 feet wide and
consist of four traffic lanes
A roughly drawn map of the pro-1 ACTION IN SPANISH
Emmett L Rice state director of
posed road shown at today's conH
the Home Owners Loan Corp went
I ference shows it passing some 25 WAR ASKED IN LIMA
to Tulsa to plan removal of that Imiles to the east of Oklahoma City
city's HOLC administrative offices and passing through or near New-
to Oklahoma City R C Phillips kirk Stillwater and Sulphur in By tinilki Pregg
deputy director said today He is Oklahoma ' LIMA Peru Dec 16—Cuba pro-
expected back tomorrow Four-lane side roads would link posed to the Pan-American Confer-
Under the new plan with all ad- it to Lincoln Kansas City Wichita ence today that the American re-
ministrative duties handled here a Oklahoma City Dallas and Fort publics attempt mediation of the
20 per cent cut in employes in the Worth Spanish civil war
two offices is contemplated There The highway sacrificing every- Tha Cuban proposal was opposed
are 70 employes in the local office thing else to provide a straight line by Uruguay among others The
50 in Tulsa Local offices will re- for safety and high speed would steering committee will meet to-
main in the Perrine Building miss all of these cities most of them morrow to decide
The Tulsa office will serve as a by 25 miles or less All grade cross- Other matters coming before the
field office under the new plan ings would be eliminated conference today were projects for
Many of the Tulsa officers are ex- Funds for the road would be pro- continental solidarity among the 21
pected to be transferred to Okla- — republics and lowering of trade bar
1 reput
(Please turn to Page 2 Column 3) hers
A proposed four-lane super highway (rom Canada to the Gulf of Mexico and passing through both
Oklahoma City and Houston was the important matter for discussion at conferences of leaders from the
two cities Discussing the highway here are D A Simmons attorney for the Houston Navigation District
and one of the speakers at the luncheon left R T Stuart chairman of the city group greeting the visitors
and D L Johnston
Three Other Executives 01
Company Revealed as
Brothers of Coster
COSTER George Dietrich and Vernard were together
responsible for the $18000000 shortage in the 105-yearold
-drug firm's listed assets The sum represented $in
000000 in drug stocks and $8000000 in accounts receiv-
able fraudulently in the company's crude drug department
found to be non-existent
THAT COSTER was the financial backer of the mu-
nitions ship Mar Cantabrico captured about two years ago
by the Spanish rebels when it attempted to run a blockade
to loyalist Spain "-
THAT COSTER several years ago went to Bolivia
and attempted to obtain a quinine monopoly by offering
the natim money and probably guns to aid in the prose-
cution of its war with Paraguay over the Gran Chaco
THAT COSTER may have been involved in the huge
illicit alcohol business of prohibition days and that he
may have been drawn by his money lust into the nar-
cotics smuggling racket
Coster it was learned had been drinking steadily
since 1 a m He was deeply depressed and spent some
time in conversation with Leopard Jenkins his brother-in-law
and Phil Rich brother and assistant to his chief
counsel Samuel Rich
Saw U S Officers Waiting At Gate
Coster looked out the window during the morning and
saw newspaper men waiting for the United States marshals
to appear with the arrest warrant He had been informed
that he was to be re-arrested and held in $100000 bail
Not long before noon he went upstairs and Jenkins de-
cided to take him a highball
It was just after noon when Jenkins rapped on the
door and asked Coster if he wanted a drink
"I'll be right there" Coster said
Jenkins heard a shot When he opened the door of -
the bathroom he found Coster dead lying fully dressed in
the bathtub into which he had toppled Rich got an am-
bulance and a physician Dr Curtis Behin who made the
official pronou ncement of death
Mrs Carol Jenkins Coster the widow moaned over
and over again:
"Why did he do it? He should have faced it He had
been through it once"
Criminal Record of Family Missing
Edward R Carroll chief clerk of the Court of Gen-
eral Sessions disclosed that papers bearing the Musica
family's criminal history were missing from his files
"We've been looking for them for 24 hours It may
be they were mislaid or put under a different initial but
we've not been able to find them"
The missing papers included indictments fingerprint
records and other documents filed in connection with
forgery and bribery charges against Philip and grand lar
ceny charges against Philip Arthur and George and their
A D Simpson president of the father Antonio
National Bank of Commerce at Since 1922 when he built a hair tonic business staritd
Houston enjoys a joke at an a a m on a shoestring into a concern of sufficient size to enable'
breakfast held for the visitors at the
Chamber of Commerce (Please turn to Page 2 Column 1) A it
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Hills, Lee. The Oklahoma News (Oklahoma City, Okla.), Vol. 33, No. 72, Ed. 1 Friday, December 16, 1938, newspaper, December 16, 1938; Oklahoma City, Oklahoma. (https://gateway.okhistory.org/ark:/67531/metadc2014634/m1/1/?q=j+w+gardner: accessed July 17, 2024), The Gateway to Oklahoma History, https://gateway.okhistory.org; crediting Oklahoma Historical Society.