Show Corporation Accounting Faces Review in ill Coster Case Wake Wale NEW YORK Dec 30 UP The UP-The The The mystery of how an shortage in the assets of McKesson and Robbins Inc was concealed from auditors for 10 years resulted today in an order by the Securities securities securities and exchange commission for a public hearing into the whole system of corporation accounting Price W Waterhouse ate rho use Co one of the best known accounting firms which regularly inspected and certified McKesson Robbins Robbins Robbins Rob- Rob bins accounts without discovering that the firms firm's president Philip alias F. F Donald Coster had been looting it since the day It was incorporated was ordered by bythe bythe bythe the S SEe E C to prepare a full explanation explanation explanation ex ex- for the hearing to start next Thursday Query to Be De Made l First witnesses it was understood understood understood under under- stood will be those who actually audited McKesson Robbins' Robbins books They will be asked how it happened they never discovered that the company's crude crud drugs department department department de de- supposed to own six warehouses in Canada stocked with worth of ot goods and 8 8 in accounts payable from reputable drugs firms all over the world never in fact existed Directors of the company already have testified at a state attorney generals general's hearing that even the most cursory inspection would have disclosed that the supposed warehouses warehouses warehouses ware ware- houses were nothing but mailing addresses and that letters to one or two of at the supposed debtors of the crude drug department would have revealed that they owed noth noth- ing Examiner Named The S SEC E C appointed Adrian C. C Humphreys as trial examiner and the tone of the order made It plain that the investigation would seek to determine whether the standard audit procedure was used on McKesson McKesson McKesson Mc Mc- Kesson and Robbins' Robbins books and if it so whether there were loopholes making it possible for other corporations corporations corporations corpor corpor- to conceal shortages the way Coster did Two more men were arrested last night on a charge of having blackmailed blackmailed blackmailed black black- mailed Coster forcing him to buy their silence because they had known him when he was the cheese smuggler swindler bootlegger bootlegger bootlegger boot boot- legger and ex Two men and a woman had been arrested previously on the same charge Pair Named One of those taken last night was Michael Patrella 40 who was said to have taken over the Adelphia Adelphia Adel- Adel phia Drug company in Brooklyn from in 1923 when he moved to Mr Vernon organized Girard and company a hair hair- tonic firm and changed The other w was a s Joseph 57 whose connection was not revealed Gregory F. F Noonan assistant United States attorney said that the five persons used such methods as pretending to borrow money from the swindler to finance projects projects projects for them or collecting bills that had left behind |