The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1906-05-16
PROSECUTING DRUG TRUST.
Petition Filed For an Injunction
Against Certain Associations
Charged With Violating the Sher-
man Antitrust Law.

Charged With Violating the Sher-
man Antitrust Law.
Washington, May 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, a 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 at which proprietary medicines
and drugs shall be sold to the con-
sumer through the retail druggists in
violation of the Sherman antitrust
laws.
The parties of the combination in
clude the Proprietary Association of
America, the National Wholesale
Druggists and the National Retail
Druggists Association.
IAN injunction is prayed for pro-
hibiting these associations from act
ing in consort for the purpose OF
maintaining prices and the individuals
firms and corporations who are mem
bers of the respective associations
from acting together for the purpose
of maintaining uniform prices to the
consumer 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-
tons and the members thereof have
entered into conspiracy to arbitrari-
ly fix and regulate the price at which
such articles shall be sold to the con-
sumer, and that they have establish
ed rules and regulations to enforce
such an unlawful agreement by re-
stricting the purchase and sale Of
such commodities to those of the
several associations who shall live up
10 and observe the rules and regula-
tions thus arbitrarily prescribed by
the respective 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 the consumer
the various commodities manufactur-
ed by the several members Of the
proprietary association. The plan by
which such object is effected is in
brief as follows: No retail druggist
can obtain goods from wholesale
druggist or a manufacturer Of a pro-
prietary medicine unless such retail
druggist becomes a member Of the
National Association Of Retail Drug
gists, 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.
eff such retail druggist, after be-
coming 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 aggressive cutters, and thereafter
such retail druggist is unable to OBJ
tain from any manufacturer who is a
member of the proprietary association,
or from any other wholesale druggist
who is a member of the Wholesale
Druggists association, any Of the
commodities which may be manufac-
tured and sold by them or any Of
them.
Henry w Loder Of Philadelphia
recently brought suit in the United
States circuit court of the eastern dis
trict Of Pennsylvania, under section Z
OF the Sherman antitrust act, against
these three associations.
"The plaintiff obtained a substantial
verdict. The court pointed out that
the evidence showed a, conspiracy be-
tween several manufa ctured articles to
and conspiracy among
the wholesalers inter Sc and with the
to fix the price at
which they should sell to retail deal
ers. and a conspiracy among the retail
dealers inter Sc and with the whole