Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-05-09
The DRUG Trust
70 Be PROSECUTED
Attorney General Moody Begins
Suit Against the Druggist
Combination
AN INJUNCTION ASKED FoR
Proprietary Association Of Ameriea,
National Wholesale Druggists A.
soeiation and National Retail Drugs
gist. Are Parties to the Action
Other News.

Washington, May 9.-Attorney Gen-
eral Moody today made the following
statement: "The government today
filed in the circuit court Of the United
States for the district Of Indiana, PEI
tition for an injunction against cer-
tain associations, corporations and in-
dividuals, comprising what is common.
ly known as the drug, trust" Of the
United States. The parties defends
ant, specifically named in the bilIs
have voluntarily combined together
to control prices at which proprietary
medicines and drugs shat be sold to-
the consumer thru the retail drug
gists, in violation Of the Sherman ans
ti-trust act. Parties to the combina-
tion include the Proprietary Associa-
ton Of America, National Wholesale
Druggists Association, and National
Association of Retail Druggists
After pointing out the scope and
character of the above named asso -a
Citations, the bill charges in substance,
That the associations, their officers
and members are all engagfl in a com
mon undertaking to wit, the business
of manufacturing. buying and selling
patent medicines, drugs, and proprie-a
tary articles tlhruot the United States,
that these associations and the menu
bers thereof have entered into q con-
spiracy to arbitrarily fix and regulate
the price at which such articles shall
be sold to consumers. That they have
established rules and regulations
to enforce such an unlawful agreement
by restricting the purchase and sale OF
such commodities to those members Of
the several associations who shall live
up ITO and observe the rules and regu-
lations thus arbitrarily prescribed by
the respective associations. There's
but one ultimate object of conspiracy
viz, to fix the price which shall iDe Oh.
served by all retail druggists In selling
to the consumer various commodities
manufactured by 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 wholesaFo
druggist or manufacturer OF a proprie.
tary medicine unless such retail drug
gist becomes member Of the Nation
al Association of Retail Druggists, and
in order to become such member he
must agree to observe the established
price at which such proprietary
medicines shall be sold to the
consumer II such retail drug
gist, after becoming member Of
49, Int ~ ko{1
Druggists, cuts prices in the sale Of
such articles to consumer, he is im- j
mediately placed upon the list Of what
is known as aggressive cutters" and
thereafter such retail druggist Is un-
BILE to obtain from any manufacturer
who is member Of the Proprietary
Association, or from any other whole
sale druggist who is member OF tho
Wholesale Druggist Association, any IT
the commodities which may be manu-
factured and sold by them or any Of
them"
Henry W. Loder, Of Pennsylvania.
recently brought suit in the United
States circuit court Of Pennsylvania.
under section seven, OF the Sherman
antitrust act against these three as
sociations. The evidence produced
upon the trial for the purpose Of show
ing the existence Of a conspiracy, es-
tablished case substantially the same
as that charged in the governments
bill. Judge Holland before whom the
case was tried, In his charge to the
jury held such evidence was sufficient
to show combination in restraint
to trade within the meaning Of the
first section Of the federal anti-trust
act"
The plaintiff obtained a substantial
verdict. The pointed out the evidence
showed conspiracy between several
manufacturers to fix the price of their
manufactured articles to wholesaler
and conspiracy among wholesalers
with manufacturers to fix price al
which they should sell to retail dealers
and a conspiracy among retail dealers
with wholesale druggists and manu-
facturers to fix and maintain prices
which such retail dealers should OBJ
serve in making to the general public
that is to the consumer. For several
months prior to the trial Of <he Loder
case the department Of justice had been
engaged in an investigation Of this
conspiracy. The attorney general hav~5
ing reached conclusion. the colnbin-
alton Is one prohibited by the terms
Of the Sherman antitrust act, has dis
rected the district attorney for the dis
trict Of Indian TO file this bill.
The INDUCTION is prayer for prOhibit-
ing these associations from acting in
concert for the purpose Of maintaininU
prices and individuals, firms and cor
porations who are members OF the re-
spectiye associations from acting to-
gether for the purpose Of maintaining
uniform prices to consumers thruouts
the United States. 4
indianapolis, May 9.-Acting under
instructions received from Attorney
General Moody, District Attorney KsaI-
ing today filed in the United States
court a petition for an Injunction
against several corporations and ind1-