Omaha daily bee., 1906-05-10
AFTER DRUG COMBINE
Federal Government Takes Action Against
Association Of Medicine Dealers,
SUIT IS FILED IN INDIANAPOLIS
Injunction Asked Against Makers, Whole
salers and Retailers.
CONSPIRACY TO FIX PRICES ALLEGED
Unlawful Agreements to Restrict Trade
Are Also Charged,
BOYCOTT SAID TO Be THE WEAPON
Retailers who DO Not Charge Prices
Fixed by Wholesalers or Manu-
factuFers Are Unable to
Get Supplies.
Unlawful Agreements to Restrict Trade
Are Also Charged,
BOYCOTT SAID TO Be THE WEAPON


WASHINGTON. May s.-The attorney
general today made public the following
statement:
The government has today filed in the
circuit court Of the United States for the
district of Indiana application for an in
Junction against certain associations, cor
porations and individuals, comprising
what Is commonly known as the "Drus
trust Of the United States" The parties
defendant specifically named in the bill
have voluntarily combined together .
control the prices at which proprietary
medicines and drugs shall be solo to tho
consumer through the retail druggists In
violation of the Sherman antitrust law.
The parties to the combination include
the National Who;esaie Druggists asso-
citation and the National Association OF
Retail Druggists.
Allegations of Attorney.
Continuing. the statement says:
The Proprietary Association Of America
Is en- Incorporated association of 80 per cent
OF all the manufacturers and proprietartes
OF patent medicines, drugs and proprietary
articles In the United States.
The National Wholesale Druggists asso-
citation Is also an Incorporated association,
composed OF nearly all the wholesale drug
gists in the United States. These whole
sale druggists act as the distributing agents
for the manufacturers and proprietors OF
patent medicines, chemicals. drugs and pro-
pTietary articles, purchasing the same di-
rect from the manufacturers and supplying
the same TO the retail druggists in various
The National Association of Retail Drug
gists is also an Incorporated association,
composed Of delegates from affiliated local
associations of retail druggists located in
the various states of the United States. and
II Is claimed that this association, through
it's Affiliations, has a membership Of about
10000 or nearly all the retail druggists in
the United States. who purchase and sell
patent medicines, chemicals, drugs and pro
prietary articles to the consumer,
Each OF these three associations have
officers who are charged with the transao-
tion OF the business Of the respeetSe ass1 $50,
defendant to the suit, as we'll as certain
other individuals, firms and corporations
who are members of the respective asso-
How 'Trust" IL Operated.
The bill charges in substance that these
associations. thsir officers. delegates and
to wit: The business of manufacturing,
buying and selling patent medicines and
drugs and proprietary articles throSsho;ul
tionb ana rneTnbesz thereof have entered
into a conspiracy to arbitrarily fix and
shall be sold 10 the consumer, and that
they have established rules and regula-
tions to enforce such an unlawful agree
ment by restricting the purchase and
sale of sucn commodities TO those men,
bers Of the several associations VIII shu
live up to and observe the rules and regu-
lations thus arbitrarily prescrib,u . .
respective associations.
There is but one ultimate object of the
conspiracy, viz: To fix the price which
shall be observed by ali retail druggists
in selling to the consumer the various
members of the Proprietary association.
A plan by which such object is effected Is
in brief as follows:
No retail druggist can obtain goods from
wholesale druggist or manufactures
Of proprietary medicine unless such re-
tail druggist becomes a member of the
National Association of Retail Druggists
and in order to become such member nt
must agree to observe the established
n IRh
shall be sold to the consumer
An Injunction is prayed for prohibiting
these associations In acting in concert fol-
the purpose of maintaining prices OF the
individuals firms and corporations who
are members of the respective associations
from acting together for the purpose OF
maintaining uniform prices to the con
sumers throughout the United states.
Names of Defendants.
IlfDIANAPOLIS May s.--Actins under
Instructions received from Attorney Gen.
eral Moody. Joseph b. Healing. United
States district attorney, today filed il
the district court before Judge A. B
Anderson, a petition for au injunction
against several corporations and individ
uals comprising what is alleged TO be
drug trust
The defendants named in the compIair.t
are as follows:
The National Association OF Retail Drug
gists and its officers, agents and mem.
bers.
The National Wholesale Druggists as
sociation and it's members agents anC
ofhcers.
The Tripartite Properties and its mem
hers. agents and officers.
The Black List Manufacturers and it,
agents. officers and members.
~
soeiation and IT'S agents members an,
ofhcers and the following Indianapolis de
PENDANTS:
The Eli Lily Co, Joseph f. Toms. w
J. Mooney John n Cary ana Frank 4
Holiday
Secretary WOoten interviewed.
CHICAGO. May s.-Thomas V. WoOteu
secretary OF the National Association O
Retail Druggists when informed Of th
action taken by the attorney general, said
The action is "A surprise TO me We ar
not in any trust, nor are we q party 4
any agreement 20 hold up prices. We d
endeavor TO get from individual proprietor
contracts by virtue OF which price cuttinj
will be prevented. We do this simply 70
sda ee sns Bot With A snT men sesTs So handle
W putting up prices on the consumer.
Statements by Local Dealers.
G. f. Weller. president Of the Richardso
Drug company of this city and st. Louis
at one time president OF the Nationa
Wholesale Druggists association, said:
That association was formed as a socia
organi1atlon and 10 promote the bushes
II the druggists. Our efforts to this tim
have been 20 protect manufacturers agains
naving their articles killed by underselin
20 the part OF department stores and IN