The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-05-10
THE DRUG TRUST
BEING AsSA|L.E|:.D|.
All Injunction Asked for to Pro.
hibit Association from Main
tanning Prices.
CoNspIRE TO REGULATE PRICE
Evidence Shows a Conspiracy Be-
tween ali Concerned in
tie Matter.
lRv a ssoclated I,ress.l

(ByEAssociated Press.)
WASHINGTON. D.. c., May e.--The
Attorney. General to-day made public ~
following statement:
"The government has to-day fed IN
tho Circuit Court Of the United States
for the District of Indiana petition for
an injunction against certain associa-
tons corporations and individuals, con-
prlsing what Is commonly known as the
drug trust OF tho United States. The
IA rites defendant specifically named IN
the bill have voluntarily combined to-
gethcr to control the prices at which
proprietary medicines and drugs shall be
sold to tho consumer through tho retail
druggist In violation OF the Sherman
alti-trust law. ~
"rho parties to the combination include
tho Proprietary Association OF America,
tho National Wholesale Druggists Assoc
citation and the National Association OF
Retail Druggists.
& "An Injunction is prayed for, prohibit
Ing these associn tons from acting IN con-
sort for tho purpose Of maintaining prices
and the individuals, firms and corpora
lions who are members Of the respective
associations from acting tosetner or,the
purpose OF maintaining uniform prices
10 the consumers throughout tho United
States.
"rhe bill charges in substance that
these associa tione their officers. dele
gate. and members are all engaged IN O
common undertaking., to-wit, the busi-
ness Of manufacturing, buying and sell
Ing patent medicines and drugs and pro-
prletary articles throughout the United
States: that these associations and Inc
members thereof have entered into g.
conspiracy to Arbitrarily AK and regulate
the price at which such articles shall be
sold 10 the consumer, and that they have
established rules and regulations to en-
force such mn unla wful agreement by re- :
strctlng the purchase and sale OF such
commodities to those members OF mo
several associations who shall live up to
and observe the rules and regulations
thus arbitrarily prescribed ~ inc re-
spcctive associations. l
There is but one untllmate object OF
the conspiracy viz, to fix the price which
shall be- observed BY all retail druggists
III selling the consumer. the various com171
tnodities manufactured ty the several
members Of the proprietary association.
Tho plan by which such object Is effected
is III brief, as follows: No retail druggist
can obtain goods from wholesale drug
gist or a manufacturer OF a proprietary
medicine unless such rotatl druggist be
comes member OF the National Asso-
iations of Retail Druggists, and In order
to become such member he must agree 70
observe the established price at:ewhch
such proprietary medicines shall beEsold
tn the consumer. s23
"If such retail druggist. after. becoming
d rne,tiaer OF the ,Na tional Association Of
Retail 5Druggists cuts prices III the sale
OF such articles to the consumer. he Is
Immediately placed upon the list Of what
IL known MS aggressive cutters. and there.
after such retail druggist Is unable to
obtain from any manufacturer who is n
member OF the proprietary association
or from any other wholesale druggist.
who is a member Of the Wholesale Drug
gists' .Associat ton, any OF the coTHodi-
ties which may be manufactured and
sold by them or any OF them,
'IIenry w. I.oder. Of Philadelphia. re-
Gently brought suit In the United States
Circuit Court for the Eastern District
Of Pennsylvania under section OF the
Sherman antitrust act, against these
three associations.
1.-THE plaintiff obtained a substantial
verdict. The court pointed out that the.
evidence showed a conspiracy between
several manufacturers to fix the price
OF their manufactured articles to whole-
salers, and 4 conspiracy among the whole
salcrs Interested. and the members TX
the price at which they were 70 sen 70
retailers, and a conspiracy among the re- re-,
tail dealers. inter Sc, and with the whole,
sale druggists and manufacturers to ~.
and maintain prices which such retail
dealers should observe In making sales 10
the general public-that Is, to the con-
sumcr.