The Birmingham age-herald., 1906-05-10
Proprietary Drug Associations
 Are the Defendants
GOVERNMENT ID PROSECUTE
Suit Is Filed In Circuit Court of the United States for District of h. diana and Charges Conspir-
 acy to Control Prices

Washington, May 9.-The attorney gem eral today made public the following statement:
 'The government has today filed in the circuit court of the United States for the district of Indiana a petition for an in- junction against certain associations. cor | poratlons 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 to- gether to control the prices at which pro prletary medicines and drugs shall be sold 1 to the consumer through the retail drug gsts in violation of the Sherman anti trust law.
 '',rhe parties to the combination include l the Proprietary Association of America, the National Wholesale Druggists asso- citation and the National Association of Retail Druggists
 Continuing the statement says:
 "The Proprietary Association of Ameri- ca is an incorporated association of 90 per cent of all the manufacturers and proprietaries of medicines. drugs and proprietary articles In the United states.
 "'rhe National Wholesale Druggists as- sociation is also an incorporated associa- ton composed of nearly all the wholesale druggists In the United States. These wholesale druggists act as the distribut- ing agents for the manufacturers and pro prietors of patent medicines. chemicals, drugs and proprietary articles purchas- ing the same direct from the manufactur- CTS and supply the same to the retail druggists.
 s Membership of 2o,ooo,
 The National Association of Retail Druggists is also an incorporated associa- tion, composed of delegates from af- fiiated local associations of local drug gists located in the various states of the United States. and 1t is claimed that this association. through it's 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.
 ",rhe bill charges in substance that the associations, their officers, delegates and members are all engaged in common un- dertaklng, to-wit: the business Of lnanu- featuring. buying ard selling patent medi- cines and drugs and proprietary articles throughout the United States. That these associations and the members thereon have entered into conspiracy to arpi- trariIy fix and regulate the price at whieh such articles shall be sold to the con sumer. and that they have established rules and regulations to enforce such an unlawful agreement by restricting the nurchase and sale of such commodities
 .'rhere Is but one ultimate object or the conspiracy. viz: TO fix the price which shall be observed by all retail druggists in selling to the consumer the Varlous commodities manufactured by the several members of the proprietary associations. The plan by which such object is effected is in brief as follows
 Enforced Membership. l "No retail druggist can obtain goous from a wholesale druggist or manulac- l turer of proprietary medicine unless sucn retail druggist becomes a member or the l National Association of Retail druggists and in order to become such member ne must agree to observe the established price at which such proprietary meoicihes shall be sold to the consumer.
 of such retail druggist after becoming | n r,emher of the National Association or | Retail Druggists. cuts prices he Is im- | nlaced upon the list of what IS known as | ihe Progressive cutters and therealter such retail druggist Is unable to ootaih from any manufacturer, who IS fheihper of the nronrietary association or from any | other wholesale druggist who is member of inc Wholesale Druggists association. anv of the commodities which may be n,an,,facttlred and sold by them or any of them , l Henry w. Loder of Philadelphia recent
 TN...N NAI flf faC n emit court for the eastern district Of Penn svlvania under the Sherman antitrust act against these three associations ana oo- tained a substantial verdict. | The attorney general having reached the | concluslon that the combination IS one prohibited by the terms of the sherman anti-trust act had directed the district attorney of the district oi ihoia"a 'o Ht' 1 this bill. | "An injunction is prayed for prohibiting l these associations from acting in concert | for the purpose of maintaining prices ana l the individuals, firms and corporations | who are members of the respective Asso- | citations from acting together TOT the pu'- pose of maintaining uniform prices to the consumers T. ughout the United States.
 Defendants. | Indianape ld May 9.-Acting under | instructions received from Attorney Gen.  | States district attorney, today filed in | the United States court before Judge A. E. Anderson a petition for an injunction against several corporations and individ- uals comprising which is alleged to be a l drug trust.
 1 The defendants named In the complaint are as follows
 | The national Association of Retail Drug | gists and It's officers. agents and mem 1 bers.
 | The direct contract proprietors and It's | agents members and officers. l The National Wholesale Dru 'gists asso- | ciation and Its members, agents ana | officers.
 The ''tripartite proprietors and it's l members, agents and officers. | The blacklist manufacturers ana its | agents officers and members. | The Wholesale Contract Proprietors' as- | sociation and its agents, members ana
 (contInued on Eighth Paoel