The people's voice. [volume] (Helena, Mont.) 1939-1969, 1958-02-07

nave lii
as meaning that while the report it
self may make "tame" reading, com
mission lawyers will use evidence
gained during its preparation as the
basis of suits against major drug
manufacturers.
Among the things which have
aroused the curiosity of the commits
sion are the long-term stability of
certain antibiotics prices despite fluc-
tuation in production demand the
other factors. Other areas of concern
are mark-ups and patent practices.
The report has been a matter of
controversy within the ETC almost
from its inception. 1t was first dis
cussed as early as 1851. In July
1853, the commission passed reso-
luton authorizing the investigation.
1t has been repeatedly prodded by
Congress, which has taken pains to
provide funds for the study. However,
as late as July, 1855, Stephen Spin
garn, a former member of the COM
mission, charged that little or nothing
had been done to advance the probe.
CHANGE OF ATTITUDE
He also told House subcommittee
investigating the ETC that the Eisen-
hower-appointed chairman of the
agency, Edward F. Howry, wanted to
avoid general review of the patent
situation in the drug industry. Many
experts believe that patent practices
lie at the heart of high drug prices.
Howry has since resigned and been
replaced by Chairman John w.
Gwynne.
Gwynne has slowly proceeded to
infuse better morale and a more ag-
gressive attitude into the agency. In
the meantime, however, the drug work
resided in the hands of the Bureau
of Economics under DR.. Simon Whit
ney, conservative economist, who
has remained unenthused about the
drug study, according to informed
observers.
The commissions 1857 report states |
that antibiotics study was the "major
work" of the Division of Economic |
Evidence and Reports in Whitney's |
bureau. 1t complains that very little
economic literature exists about the |
relatively new industry producing
the so-called wonder drugs.
A release date in early summer had
been indicated However, in a turn
about, the commission pushed the date
forward to Labor Day and issued a
new QUESTIONABLE to the industry.
DELAYS DOG REPORT
Since then delays have continued
to dog the report. Conflict is believed
to have developed between Whitney
and Harry Babcock, director of the
Bureau of Investigation, who report
eddy favors a breakdown on the drug
makers.
Last December the new version pre-
pared by Whitney's subordinates was
passed on to Babcock's unit and to
the Litigation Division and the Cen
eral Counsels office. This is normal
procedure preliminary to release. But ,
it gives these "police" units of the
agency chance to delete material
the presence of which might prejudice
future legal action against the in
dustry involved.
AS result, the industry has bad .
case of filters. Typical of its state is :
the comment of leading trade paper: :
mo matter how tame, publication of
FTC's antibiotics report probably will :,
focus public and congressional atten-
ion on the high cost of medicine
:" e
The high cost of medicine is of leg d
innate concern in a nation where t
medical care costs for worker fami- v
les has zoomed 38 per cent since t
L947-49. According to the Depart S
nent of Labor, medical costs have +
isen more than any other major item Il
n the cost of living.
ANTIBIOTIC COSTS W
Part of this cost goes for the l. W
100000 prescriptions that are filled F
Y druggists across the nation every NJ
ay The drug industry sells approx I'll
lately $2.8 billion worth of medicines &C
year, and collects before-tax prof OF
of about half a billion. it