The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1906-05-11
Attorney General Files q
Petition for Injunction to
Restrain Allied Associa-
ton
PRICES UADULY RAISED
CONSPIRACY TO ARBITRARILY
SETTLE COSTS CHARGED BY
THE PAPERS, WHICH ARE
DRAWN UNDER ANTITRUST
LAW

LAW
Special to 1.-THE Jersey city News.'D
/ WASHINGTON, May 10, 1906. The
Attorney -G eneral has made the following
statement:
The Government has filed in the Cir
cult Court of the United States for the
district of Indiana, a petition for an in
junction against certain associations, cor
porations and individuals combined to-
/ gether to control the prices at which
! proprietary medicines and drugs shall be
sold to the consumer through the retail
druggists in violation of the Sherman
antitrust law.
'sThe parties to the combination in
clude the Proprietary Association of
America and National Wholesale Drug
gists' Association and the National Asso-
.ciation of Retail Druggists
'srhe Proprietary Association of
America is an Incorporated associa-
tion of ninety per cent of all the manu-
factures and proprietaries of patent
medicines drugs and proprietary
/ articles in the United States The yari-
Gus members of this association reside
IN and do business in the various States,
and the products in which they deal are
manufactured in the several States of
the Union and sold and distributed from
the States in which they are manufac
tured to wholesale and retail druggists
throughout the United States.
'sThe National Wholesale Druggists
Association is also an unineorporated as
lsociations composed of nearly all the
wholesale druggists in the United States.
These wholesale druggists act as the dis
tributing agents for the manufacturers
and proprietaries of patent medicines,
chemicals, drugs, and proprietary arti-
cles, purchasing the same direct from the
manufacturers and supplying the same
to the retail druggists in various parts Of
the country
''The National Association of Retail
Druggists is also an unincorporated as
sociation composed of delegates from
affiliated local associations Of retail
druggists located in the various States of
the United States, and it is claimed that
this association, through its affiliations,
has membership of about 10000, or
nearly all the retail druggists in the
United States who purchase and sell
patent medicines, chemicals, drugs and
proprietary articles to the consumer.
i 'sThe bill charges in substsnce that
these associations, their officers, delegates
and members are all engaged in a COM
mon undertaking, to wit, the business of
manufacturing, buying and selling patent
medicines, and drugs and proprietary ar
ticles throughout the Unated Statas; that
these associations and the members there
Of have entered into conspiracy to arbi-
trarily fix and regulate the price at
which such articles shall be sold to the
consumer and that they have established
rules and regulations to enforce such an
unlawful agreement by restricting the
purchase and sale Of each commodities to
those members of the several associa-
tions who shall live up to and observe
the rules and regulations thus arbitrari-
ly prescribed by the respective associa-
tons
i sThere 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 commodities manufactured by the
several members of the proprietary asso-
citation. The plan by which such object
| is effected is in brief as follows:
"No retail druggist can obtain goods
from wholesale druggist or manufac-
turer of proprietary medicine unless
FLORIDA AND CAR8LlNA RE-
SONTS. ATLANTA. BlRhBIN0.