New-York tribune., 1901-04-25
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WAR IN THE DRUG BUSINESS.
A BITTER FIGHT BETWEEN THE MANU-
FACTURERS AND CUT RATE
STORES IS ON

few of the large retail drug firms of this
city, between ten and twenty in number,
working together to meet the efforts of the
tripartite organization, comprising the National
Proprietary Association, the National Whole
sale Druggists Association and the National
Association of Retail Druggists. TO stop the sale
of certain proprietary medicines at cut prices.
Among them are William B. Riker & Son Com
pany. No. 3T3 Sixth-ave.; Oscar G.. Kalsh No
100 East Twenty-third-st.; ]. Milhau's Son Com
pany. No. 1S3 Broadway; the corporation of
Hegeman & Co., No. 1876 Broadway, and the
Bolton Drug Company. No 264 Fulton-st
Brooklyn. These are known as the aggressive
cutters" The president is William c. Bolton
of the Bolton Drug Company, and the secretary
Oscar @. Kalsh.
For some time the manufacturers of several
well known proprietary articles have been pre-
pairing TO stop the sale of their products at cut
rates. In order TO accomplish theiE purpose the
three association were organized
large number of wholesalers and retailers
said to be more than 90 per cent of the firms in
the country-became allied with the organ MIA
tions. On January l the agreement not TO sell
below certain prices went into effect A few
large drug stores in this and other cities
throughout the country. which had been selling
at greatly reduced prices. decided not to accept
prices set by outsiders.
The association then, according to these firms
began to put on the screws. BY agreement no
member Of the associations was TO sell them the
goods manufactured by the members of the Pro-
prietary Association. AS these goods have large
sales the aggressive cutters" had to have them
and get them prices which would permit them
to sell cut rates.
Mr.. Ennis, of John Mllhau's Son Company
said yesterday that they were cutting their
former cut and the prices were now below the
wholesale price. And we are making money
too" This firm is getting in a years supply of
the articles. Additional the floors
above the store have been obtained for storage
purposes.
While the cut rate retailers will not dvuge
the methods by which they get their goods yet
1t is believed hat one of the ways is that of
buying them through obscure drug firms of
which they have control. George Ramsey, of
the corporation of Hegeman d Co.. said yester-
day:
About sixty manufacturers agreed not to sell
sold to them. a great number of the best
manufacturers did not go into it, There are
thousands of manufacturers in the country
The agreement went into effect in January, but
II has not affected much. l have been able
TO get all the goods | want and expect to be
The assertion is that % per cent of the drug
stores have signed the agreement ask the
higher prices. These prices much above
the former prices, and there awful profit in
the business before About ten in New
York and Brooklyn have formed an informal
organization TO hang together in cutting the
prices.
In regard to the owning of small drug stores
in order to get goods Mr. Ramsey said
We don't have to small drug stores to
do it. Small druggists come and offer to sell
to For instance, a small druggist came to
me short time ago and said. DO you want
four gross of a certain artice?" 1t was of
the cut off articles. Il want a gross of it," he
continued, but in order to get the best price /
use it," and few days later the four gross were
brought here a truck.
Suits have been brought by cut rate druggists
in Atlanta Ga, and Binghamton, N. Y, against
those who have been endeavoring to cut off
their supplies of these articles, on the ground
that these are illegal combinations and con-
spiracies. The Binghamton case will be made
a test case in this State