Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-01-19
Arnold Sees Medical
Decision by Court as
OF Great importance
High Tribunal Upholds
Conviction Growing Out
Of Group Health Fight

The long legal fight which found
the Government and Group Health
Association Inc, ranged against
organized medicine was ended today,
with a unanimous decision of the
Supreme Court affirming the con-
vlction of the American Medical
Association and the District Medical
Society, which were indicted on
charges of conspiring to hinder the
operations of Group Health.
medical cooperative formed by Gov
eminent employees to provide medical
care and disqualification in return
for monthly dues.
Indicted under the Sherman Anti
Trust Act in a precedent-making
prosecution the defendant medical
units argued that the practice of
medicine is profession, not a trade,
and that the charge could not be
sustained.
Speaking through Justice Roberts,
the Supreme Court yesterday said it
was not necessary to decide the
status of the two. inasmuch as Group
Health was business, and that
the defendants were subjects TO
Sherman Act prosecution for seeking
to interfere with this business.
Within Scope of Act.
whether the conspiracy was aimed
at restraining or destroying COM
petition, or had as its purpose
restraint Of the free availability of
medical or hospital services in the
market" it comes within the scope
of the act, the court added.
This particular language was
hailed by Assistant Attorney Cen
eral Thurman Arnold, who con-
Quoted the prosecution as of far
reaching importance, because it
holds that where defendants restrain
the free availability of services in
the market, it is immaterial whether
they are professional men, or
whether they are non-profit, CO.
operative membership corporations"
Commenting on the decision, Miss
Edith lockwood, president of Group
Health Association, said. 1--WE con-
slider it fortunate that the legal is
sues are settled. We believe the
decision will be advantageous to all |
groups in the United States that
are planning for medical care"
Disappointing" Says Macdonald.
DR.. A. Magruder Macdonald, pres
ident of the District Medical So
Ciety, said that the decision comes
as keen disappointment" but /
added:
However, these are too critical |
times to dwell on the result of a |
legal controversy which will have |
little meaning if We do not win the
war In which we are now engaged. /
Conditions have changed greatly |
since the antitrust suit against or
ganized medicine was initiated. No !
longer are we concerned with many |
of the problems and issues which /
seemed so important few years
ago 49,
THE people of Washington can
be confident that the Medical So
ciety will fulfill its responsible
tiles. - :"
Group Health was formed in 1887
and, according to testimony, was
vigorously opposed by organized
physicians being forbidden
to have anything to do with the
movement and hospital facilities
being denied its members.
individuals Cleared.
The Justice Department instituted |
an investigation, and in December.
1898, four corporate defendants and |
20 individuals were indicted. A de- |
murrer to the indictment was sus- /
tanned in District Court, and over |
ruled in the Court of Appeals. and /
the case eventually went to trial in |
District Court. The Harris County /
CTeX) Medical Society, the Wash |
ington Academy of Surgery and the |
individual defendants were cleared. !
Convictions brought a fine of $4,000 |
for the American Medical Associa-
ton and 81 500 for the District Med !
ical Society. The Court of Appeals !
upheld the convictions and then the |
case went to the Supreme Court.
While contending that their status
was barrier to Sherman Act prose- !
cution, the defendants contended
that if they were subject to the act,
they were entitled in this particular
instance to the immunity provided
by the Clayton and Norris-La
Guardia for disputes involving en-
ployment conditions. In brushing