Evening star., 1938-10-16
NEWGRAND Jury
CALLED IN PROBE ,
OF MEDICAL UNITS
lmpaneiing of 20 From List
of 500 Prospects Is to
Begin Tomorrow.
INDICTMENTS SOUGHT
UNDER ANTITRUST ACT
Group Health Officials Due to
Be the First of More Than 100
Government Witnesses.

Impanelling of an extraordinary
grand jury to hear evidence in sup
port of the Justice Departments
charges that the American Medical
Association and the Distsict Medical
Society have violated the Sherman
Antitrust Act will begin tomorrow
morning in the District Court Build
ing.
More than 500 prospective jurors
have been summoned to appear and
from this large group the court will
choose % men and women who will
weigh the advisability OF indicting
one or both organizations and certain
of their representatives.
The special grand jury will listen
to the testimony of approximately
100 Government witnesses, for many
Of whom subpoenas were issued over
the past week end. The hearing will
be held in the new Police Court
Building
The first witnesses were expected
to be volunteers representing the
Group Health Association, Inc. CO.
operative prepayment medical service
organization. for Federal employees.
Complaints by Group Health Of
"obstructionist" tactics by the A. M. A.
and the District Medical Society led
to Attorney General Cummings deci-
sion to conduct a grand jury inquiry.
May Subpoena Records.
After the investigation has gotten
under way this week, Department
of Justice attorneys may ask the Dis
trict Court to issue a subpoena duces
tecum for the production Of volumi-
nous records of the Chicago head
quarters of the A. M. A. This sum-
mons would require DR.. Morris Fish,
bein or other officials of the asso-
citation to produce the records and
identify them. The files Of the organ
ization already have been examined
by Federal agents, with the consent
of medical officials.
1t appeared likely that early Wit
nesses for the Government would In
clude DR.. Raymond E. Soldiers, medl.
cal director of Group Health Associa-
ton, and DR.. Mario Scandiflo OF the
Group Health staff, who was expelled
from membership in the District Med
ical Society because he became asso"
ciated with the cooperative body.
Several local physicians not con.
nected with Group Health also have
volunteered to testify for the Govern
ment, it was learned.
sv.t - Trade vS Theory
The evidence, carefully prepared by
Allan Hart and John Levin, special
assistants to the Attorney General.
will be intended to show that the
A. M. A. and its local affiliate. the
District society, exercised restraints
of trade" against the Group Health
Association in violation OF ANTITRUST
laws. Under this theory of the de-
partment, the practice OF medicine Is
a trade" within the definition OF the
Sherman Act.
Assistant Attorney General Thur.
man Arnold, in charge of the Anti
Trust Division of the Department OF
Justice, has charged the A. M. A. and
the District Medical Society with three
forms of restraint:
/. Threatened expulsion from the
District Medical Society of physicians
Joining Group Health Association.
causing the association much difficulty
in securing competent physicians.
2. Threatened expulsion from the
society of physicians who enter into
medical consultations. with Group
Health physicians-amounting to an
illegal boycott of the association.
3. Exclusion from Washington hos
pitals of Group Health physicians,
accomplished either in combination
with the various hospitals or by means
Of influence, which may or may not
have amounted to coercion upon
them"
Attorney General Cummings has
declared grand jury proceedings are
required in such cases. They do not
necessarily involve allegations Of moral
turpitude, he explained. The role Of
the department will be like that OF a
referee in a football game, he told le-
porters recently.
1t was predicted yesterday the in
vestigation will require three weeks
ar more