The morning call., 1893-03-05
DRUG COMBINE.
Suit Brought by a Com-
pany for Damages.
THE PATENT MEDICINE WAR.
Two Accounts of the Trouble Between
Rival Retail Druggists of
This City.

The Owl Drug Company, after having
waged war with the druggist combine here
in the city since their opening, the 11th of
last June. has now brought suit for S20 600
damages for loss of business through
system of boycott that the combine has
continuously kept up against them.
The complaint was filed yesterday by
its attorney, John Whitworth.
The defendants are the San Francisco Re-
tail Druggists Association. and James G.
Steele, j. A. Boyken. C. A Kerny, G. A.
Bailey, Il. E. White and two or three others,
the executive committee of the association.
The following story was told by d. W.
Kirkland and r. E., Miller. the president
and secretary Of the Owl Drug Company. to
a CALL reporter:
ave would have brought this suit before,
for we had taken legal advice as to our
rights, but we first wished to show the COM
bi0e that we could carry on business and
sell at our own prices in spite of it and
make money at IL, and it Is not till il has
acknowledged itself beaten that we have
begun this action.
Before we started in business delegation
OF the combine came TO us and demanded
we should first sign an agreement to keep
up our prices to the limit fixed by it. We
asked them TO wait till the meeting of the
board OF directors of our company to be
held two weeks thereafter, as we had no
authority. but instead of doing so a circular
letter, OF which we have 4 steTeotyped COPY,
was sent to all the wholesale druggists in
the city two months before we started In
business, ordering them not to sell US any
goods until directed by them.
since that time regular system of boy
colt has been carried on against us by the
association, which every druggist in the city
belongs 10. and the membership in the city
and State numbers 600.
the combine has sent letters TO manu-
facturers and wholesale druggists all over
the country forolddlng any goods being sold
to US.
The power OF the association is so great
that we cannot buy a single article In the
city, and in the East even their mandate is
so universally obeyed that it was only few
houses who refused TO have their prices
governed by the association that would sell
to us.
''Only a short time ago we heard OF case
in point in this city showing the power of
the combine. A druggist asked drummer
Drug Company and he thoughtlessly
answered, Yes Then said the drug
gist, you don't sell 10 me- From this you
can see how the Eastern houses were con-
trOlled.
"The result to MS has been that everything
we wanted we had to send East for, and If,
in filling an order, it happened there was
something in IL we did not have, 1t was i'm
possible to purchase it here in this city, as
every one OF the druggists was in the COM
bine. We have lost lots of orders this way
that We could have filled easily but for the
absence of some trifiing thing in stock and
the boycott prevented US from purchasing.
I'VE have. never heless, good business,
which the combine has coms TO appreciate
so much that it has weakened iI its war on
u !, and within the last thirty days it has
attempted for the first time since we started
to induce US to join il.
1--WE have refused, for the reason that we
are going TO do all we rRn to break it up,
and we have concluded 1t is now about time
fcr us to 20 for them, and have brought
this suit in consequence"
James u. Steele, secretary OF the San
Francisco Retail Druggists Association,
was seen by CALL reporter last night, and
when asked for statement regarding the
suit he was very much surprised. as he lad
not heard Of anything regarding it until ap-
preached by the reporter
Without hesitation Mr.. Steele said that it
was purely scheme by which the Owl
Drug Company expects to obtain free ad-
Yerlisng.
But now that they have brought the
suit" said he, I'VE will make 1t hot for
them.
I'VE will fight it to the end and when
the trlai comes OFF you may hear of some
interesting disclosures. Since last October
there have been eight or ten failures in the
retail drug business. As soon as the Owl
Company started into business 1t ccm-
menced cutting prices on patent medicines.
The association fought against this, and
The wholesalers refused to sell the Owl
Drug Company any more goods. But of
course the Owl Company bought goods from
tho wholesalers all the same, by dealing
through third party, which the whole
salers could not prevent.
Since the Owl Company has brought
suit against us, we may file a cross-eom-
plant against it for acts which will be
detailed in that document"