The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-01-30
City News
DRUG TRUST WILL
INVADE THE CITY
UNITED DRUG STORES ooMpAN7
LATEST COMBINATION
Object Is to Operate Retail Stores from
the Atlantic to the Pacific and Same
Group Of Capitalists Is Said to Be
Back Of United Cigar Stores Com
pany.

The latest combination, the drug
trust, is to invade Minneapolis.
The drug trust came to light yester-
day in New Jersey. It's title is the
United Drug Stores company, and it is
capitalized at $10,OO0,000. George J.
Whelen, who organized the United
Cigar Stores company, which now oper-
is back of the drug combine. The in.
corporation papers give as his assoc
ciates Jacob Fischel of Newark, Morris
Klein and j. Vessel Parker Of New
York. These latter three are under
stood to be "dummies, - and it is
stated that practically the same group
of capitalists back of the United Cigar
Stores company is behind the new ven-
ture.
The papers pronounce the object Of
the corporation to operate retail drug
in: New York, Philadelphia, Chicago,
st. Louis, Minneapolis, San Francisco
and other cities. In New York the
greatest concern is expressed by both
the retail and jobbing trade over the
probable effect of the entry of the new
competition. Fhe purpose is to follow, as
| closely as possible, the plan of opera
ton of the cigar store chain that has
proved so profitable.
Retailers Get Together.
One element in the trade takes pessi-
| mistic view and believes that the new
company will demoralize matters gem
orally, for from its very nature it will
either cut prices direct or offer coupon
| or other inducements to purchasers. The
| fact that the New York officers of the
| Natioral Association of Retail Drug
| gists, the National Wholesale Druggists
| association and the Proprietary Assocla.
tiOn of America, held meeting lmmedl-
ately following the news of the forma-
ton of the new company, and drew the
lines tighter as to price-cutting and
trade regulation, indicate that the move
! is taken very seriously.
Optimists in the trade say that in its
final working out the thing will be bene-
fetal, for they predict failure, and long
| quiesence following. George J. Whel-
en- made great success of the cigar
store combine, and this, the druggists
of longest experience say, will lead him
On to a fall: The plan: they say, can
never be made to 60 The company. no
doubt, will start in by picking out some
druggist, in leading city, whose cigar
trade is holding it's own against their
competition, and will open up a drug
store nearby and slash prices. The ques-
tion is whether the trust will be able
to make any money at 1t.
a. The trust announces that it will start
business next month. It is doubtful If
it will invade Minneapolis Immediately,
but it may be expected to show up here
sOon. --..-
/ -cs Voegeli Incredulous.
Thomas fVoegeli, formerly president
of the Retail Druggists National asso-
citation, when asked about the trust S
plans, said today:
i 81 am not inclined to place much
credence in the reported scheme, altho
/ have heard of it. It seems to me
that if this reported drug trust intend
!, ed to establish line of retail stores
from coast to coast and that Mime
apolis was to be included, we should
have heard more of it. I cannot say
anything about the prospects Of the
, venture until [ know something def
mite about it,