Jasper County Democrat, Volume 10, Number 6, Rensselaer, Jasper County, 11 May 1907 — KNOCKOUT BLOW TO DRUG TRUST [ARTICLE]

KNOCKOUT BLOW TO DRUG TRUST

Perpetually Enjoined by the Court from Continuing Its Operations. Indianapolis, Ind., May 9.—The socalled “drug trust” has been perpetually enjoined from continuing its operations by the entering of a decree in the United States circuit court for the district of Indiana on the complaint of the United States government, filed by Joseph B. Healing, United States district attorney. The decree just entered was dictated by the government attorneys and agreed to by the defendants. With the entering of the decree the itigation came to an end with a complete victory for the government. Ninety-Two Defendants. The defendants, ninety-two in number, who are the members, officers, directors, agents and attorneys of the National Association of Retail Druggists, the National Wholesale Druggists’ association, Trl-l’artite Proprietors, “Backllst Manufacturer,” “Direct Contract Proprietors.” “Who’.esole Contract Proprietors” and Charles C. Bombaugh, are perpetually enjoined from combining and conspiring to restrain trade in drugs, fix prices by agreement, blacklist retailers who cut prices, or to refuse to sell to any retailer on equal terms. All publl -atlou of blacklists is forbidden and all contracts and agreements covered by the charges are declared void. The direct contract serial number plan is prohibited as well as the securing of the adoption of schedules for the sale of drugs.

Charges Against Bombaugh. Charles V. Bombaugh was charged in the bill of camplaint with being engaged in printlngand circulating lists called blacklists which contained the names of druggists throughout the country’ who sold proprietary and medicines at prices less than those which the alleged combination ordered. As charged, he would send a list each month to every retail and wholesale druggist in the United States who belonged to the asso iatlon of those accused of cutting prices and as a result of this these “aggressive cutters.” as they were called, could n >t buy goods. It was further charged that those accused of cutting prices on proprietary medicines were unable to purchase any kind of drug from the members of the several associations. All such practices are perpetually enjoined. . “Direct Contract Proprietors.’’ The “direct contract proprietors’’ are enjoined from continuing the direct contract serial plan and from co-op. erating with any of the other defendants In carrying out such a plan. They are enjoined from requiring and dealer to enter Into a contract restraining trade in the articles of their manufacture and from placing serial number* on the retail packages for the purpose of keeping records and tracing sales •nd from requiring the vendee to keep records of and report sales by serial numbers. All acts tending to restrict the free purchase of the articles of their manufacture are forbidden. The same prohibitions are ordered against the “wholesale contract proprietors” and they are further enjoined from securing the adoption of schedules for the sale of the article* of their manufacture and of other articles In any market