Los Angeles herald., 1906-05-10
SEEK TO ABOLISH
THE DRUG TRUST
ATTORNEY GENERAL AFTER AN
INJUNCTION
Claim Set Up That Certain Corpora
tlons Control Trade and Prices
Of All Patent Med
clnes

Pv Associated Press.
WASHINGTON, May s.--The attor-
ney general today made public the fol-
lowing statement:
"The government has today filed In
the circuit court Of the United States
for the district Of Indiana petition
for an injunction against certain as
sociations, corporations and individ-
uals, 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
at which proprietary medicines and
drugs shall be sold to the consumer
through the retail druggists in VIOLA
ton of the Sherman antitrust law.
"The parties to the combination in
clude the Proprietary Association of
America, the National Wholesale
Druggists association and the National
Association of Retail Druggists"
Includes Ninety Per Cent
Continuing, the statement says:
"The Proprietary Association of
ATIleTlCa Is al uIllHCOTDOIdleu dSSOCld-
tion Of 90 per cent of all the manufac-
turers and proprietaries Of patent med
icines, drugs and proprietary articles
in the United States.
"The National Wholesale Druggists
association is also an unincorporated
concern, composed of nearly all the
wholesale druggists in the United
States, These wholesale druggists act
as the distributing agents for the man
- tnfo rfa nf foVa
medicines, chemicals, drugs and pro-
prietary articles, purchasing the same
direct from the manufacturers and
supplying the same to the retail drug
gists In various parts Of the country.
Membership 10000
"The National association of retail
druggists is also an unincOrporated as
sociation composed of delegates from
affiliated associations of retail drug
gists located in the various states of
the United States, and it is claimed
that this association, through its affil-
iations, 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 proprietary articles to the con-
sumer.
Each of these three associations has
officers who are charged with the
transaction of the business of the re-
spective associations.
"These officers are made party de-
fandants to the suit as well as certain
other individuals, firms or corporations
who are members of the respective as
sociations.
Try to Fix Price
",rhe bill charges, in substance, that
these associations, their officers, dele
gates and members are all engaged in
common undertaking. to. wit: The
business of manufacturing, buying and
selling patent medicines and drugs and
proprietary articles throughout the
United States: that these associations
and the members thereof have entered
into a conspiracy to arbitrarily fix and
regulate the price at which such art
icles shall be sold to the consumer, and
that they have established rules and
regulations to enforce such an unlaw-
full agreement by restricting the pur-
chase and sale of such commodities to
those members of the several associa-
tions who shall live up to and observe
the rules and regulations thus arbi-
trarily prescribed by the respective as
sociations.'
An injunction is prayed for prohibit
ing these associations from acting in
concert for the purpose of maintaining
prices and the individuals, firms and
corporations who are members of the
respective associations from acting to-
gether for the purpose of maintaining
uniform prices to the consumer
throughout the United States.