The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-05-09
after DRUG TRUST
Attorney General Begins an
Action Against 1t.
Also Reaches Out and Includes
the Retailers.
CONSPIRACY CHARGED.
Claimed That OrganizationFixe
Retail Prices.
Injunction to Stop Practices Is
Asked For.

Washington. May 9.-The attorney
general today made public the follow
ing statement:
1.-The government has today fled in
the circuit court of the United States
of the district of Indiana. a petition for
an injunction against certain associa-
tions, corporations and individuals COM
prising what is commonly known as the
drug trust of the United States The
parties defendant specifically named in
the bill have voluntarily 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.
The parties to the combination in
clude the Proprietary Association OF
America, the National Wholesale Drug
gists' association and the National As
sociation of Druggists.
Continuing, the statement says:
The Proprietary Association OF
America is an unincorporated asSoc1a-
ton of 80 per cent of all the manufac-
turers and proprietors of patent medi-
cines, drugs and proprietary articles in
the United States.
1.-The National Wholesale Druggists
association is an unincorporated asso-
ciaticn composed of nearly all the
Wholesale druggists in the United
States. These wholesale druggists act
as the distributing agents for the
manufacturers and proprieters of pat
ent medicines, chemicals drugs and
proprietary articles, purchasing the
same direct from the manufacturers
and supplying the same to the retail
druggists in various parts of the coun-
try.
"The National Association of Retail
Druggists is also an unincorporated
association, composed of delegates
/ E.. ,s<1fT a
druggists located in the various states
of the United States and it is claimed
that this association through its afhli-
ations has membership of about TO-
600, or nearly all the retail druggists
in the United States who purchase
and sell patent medicines, chemicals,
drugs and proprietary articles to the
consumer.
Each of these three associations
have officers who are charged with
the transaction of the business of the
respective associations. These officers
are made party defendants to the suit
as well as certain other individuals,
firms and corporations who are mem
bers of the respective associations.
THE bill charges in substance that
these associations, their officers, dele
gates and members are all engaged III
a common undertaking, to-wit: the bus
mess of manufacturing, buying and sell
ing patent medicines and drugs and
proprietary articles throughout the
United States. That these associat tions
and the members thereof have entered
into a conspiracy to arbitrarily hx and
regulate the price a which articles shall
be sold to the consumer and that the
established rules and regulations
to enforce such an unlawful
agreement by restricting the pur-
chase and sale of such commodities to
those members of the several associa-
tons who shall live up to and observe
the rules and regulations thus arbitrar-
lily prescribed by the respective essocia-
tions.
There is but one ultimate item Of con-
spiracy. viz: to fix the price which shall
be observed by all retail druggists in sell
ing to the consumer the various commodi-
ties manufactured by the several members
Of the proprietary association. The plan
bv which such object is effected Is in brief
as follows: No retail druggist can obtain
goods from a wholesale druggist or a
manufacturer of proprietary medicine
unless such retail druggist becomes a
member of the National Association of
Retail Druggists. and in order to become
such member he must agree to observe
the established price at which such pro-
prietary medicines shall be sold to the
consumer.
An Injunction is prayed for. prohibiting
these associations from acting in concert
for the purpose of maintaining prices and
the individual firms and corporations who
are members of the respective associa-
tions from acting together for the pur-
pose of maintaining prices to the con-
sumers throughout the United States