The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1906-05-11

Washington, Nav 9.-The attorney
| general today made public the follow
ing statement:
The government has today filed in
the circuit court of the United States
for the District of Indiana q petition
for an injunction against certain asso-
Citations, corporations and individuals,
comprising what Is commonly known
as the drug trust Of the United States.
The parties defendant specifically
named in the bill have voluntarily
combined together TO control the
prices a t which proprietary medicines
and drugs shall be sold to the consum-
er through the retail druggist in vio-
lation of the Sherman antitrust law.
The parties to the combination in
clude the Proprietary Association OF
America, the National Wholesale
, Druggists Association, and the Nation
al Association of Retail Druggists.
AN injunction is prayed for pro-
hibiting these associations from acting
| in consort for the purpose OF main
tanning prices and the individuals,
firms, and corporations who are men,
bers OF the respective associations
from acting together for the purpose
of maintaining uniform prices TO the
consumers throughout the United
States
The bill charges in substance that
"these associations, their officers, dele
gates, and members are all engaged
| in a common undertaking, to wit, the
| business of manufacturing. buying.
and selling patent medicines and drugs
and proprietary articles throughout
| the United States. that these associa-
tions and the members thereof have
| entered into a conspiracy to arbitrarily
fix and regulate the price at which
such articles shall be sold TO the con-
sumner, and that they have established
! rules and regulations to enforce such
| an unlawful agreement by restricting
| the purchase and sale Of such COM
modities to these members Of the sew
eral associations who shall live up to
and observe the rules and regulations
| thus arbitrarily prescribed by the re-
Spective associations.
| There Is but one ultimate object
| of the conspiracy viz: to fix the price
which shall be observed by all retail
druggists in selling TO the consumer
the various ommodities manufactured
by the several members OF the pro-
prietary association. The plan by
which such object is effected is In brief
as follows: No retail druggist can OBJ
| tain goods from a wholesale druggist
or a manufacturer OF proprietary
midicine unless such retail druggist
becomes a member Of the National As
sociation Of Retail Druggists. and in
order to become such member he must
agree to observe the established price
at which proprietary medicine shall
be sold TO the consumer.
IF such retail druggist, after be-
coming a member of the National As
sociation of Retail Druggists, cuts
prices in the sale OF such articles to the
consumer. he is Immediately placed
upon the list Of what Is known as ag-
gressive cutters, and thereafter such
retail druggist Is unable TO obtain from
any manufacturer who Is a member Of
the proprietary association, OF from
any other wholesale druggist who IL a
member of the Wholesale Druggists
Association, any Of the commodities
which may be manufactured and sold
by them or any OF them.
Henry w. Loder OF Philadelphia,
recently brought suit In the United
States circuit court for the Eastern
District of Pennsylvania, under Section
of the Sherman antitrust act. these
three associations.
THE plaintiff obtained a substan-
tial verdict. The court pointed out
that the evidence showed a conspiracy
between several manufacturers to fix
price of their manufactured articles
TO wholesalers, and a conspiracy
among the wholesalers inter Sc and
with the manufacturers to fix the price
at which they should sell to retail
dealers, and conspiracy among the re-
tail dealers inter sc and with the
wholesale druggists and manufacturer
to fix and maintain prices which such
, retail dealers should observe in max
/ ing sales TO the general public-thai
is to the consumer"