BIG BANKRUPTCY

Grey River Argus, 10 December 1938, Page 13

BIG BANKRUPTCY

U.S.A. DRUG COY. _ Fraud Revealed INVESTORS’ ENORMOUS LOSS. [Aus. & N.Z. Cable Assn.] (Received .December 9, 9.20 p.m.) NEW YORK, December 8. The bankruptcy has occurred of McKesson and Robbins, one of the largest drug and chemical firms of America. Its failure is expected to have an adverse effect on the business world. The market value of the stocks of the firm, whose assets were alleged to be eighty-seven million dollars, has dropped by thirty million dollars in the course of a few days on the Stock Exchange. Some of the stockholders in the company began a suit, alleging that there had been fraudulent listing of assets, the fraud amounting to ten million dollars. This action precipicated an investigation of the assets, and the investigation has disclosed many irregularities, including a warehouse which was alleged to be maintained by the company in Canada, the only mailing address for which was in New York.