Additional information—Continued McKesson & Robbins, "What McKesson Improved Discount Program Page New York Post, March 25, 1967, Alexander's advertisement-.. Peoples Drug Stores, Washington area prices for prescriptions----. Introductory announcement of Libritabs. Letter to hospital administrators, August 8, 1966.... San Fernando Valley, statement by members of Pharmacists Profes- sional Society of the, re effect of multiple pricing of drugs by Skinner, Merritt L., article, "A Community Pharmacist Looks at Dif- ཚ་ཆ ོའི 37 APPENDIX A139 A166 A140 A156-A163 Big L discount self-service drug ad, March 25, 1964. Hospital Purchasing Service pharmaceutical contracts and ments "A Community Pharmacist Looks at Differential Discounts". Hospitals pricelist----- Wholesale druggists pricelist_. Barnes-Hind Pharmaceuticals, Inc., Sunnyvale, Calif Burroughs Wellcome & Co., Inc., Tuckahoe, N.Y. Central Pharmaceutical Co., Seymour, Ind. A104 Stadnik, John, Miami, Fla., letter to Hon. John D. Dingell, May 23, 1967__ Notes pertaining to irregularities and unfair distribution practices in Washington Evening Star, drug ads, Feb. 6-Mar. 2, 1967. A160-A165 SMALL BUSINESS PROBLEMS IN THE DRUG INDUSTRY MONDAY, APRIL 3, 1967 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON ACTIVITIES OF REGULATORY AGENCIES OF THE SELECT COMMITTEE ON SMALL BUSINESS, Washington, D.C. The subcommittee met, pursuant to notice, at 10:15 a.m., in room 2359, Rayburn House Office Building, Hon. John D. Dingell (chairman of the subcommittee) presiding. Present: Representative Dingell. Also present: Representative Horton of the full committee; Gregg Potvin, subcommittee counsel; Myrtle Ruth Foutch, clerk; and John J. Williams, minority counsel. Mr. DINGELL. The hearing will come to order. Today the subcommittee opens hearings on "Small Business Problems in the Drug Industry." The drug industry is one of great importance. Its products through thousands of small daily miracles extend and make safer the lives of all of us. It is one of the most substantial sectors of our economy. This industry, perhaps more than any other, vividly illustrates the need for both small and large firms within our economy. Research and development are required to continue the rapid progress which has been made in combating man's ancient enemies of illness and disease. The manufacturing of these products also requires extremely substantial investments and industrial plants. In the distribution of drugs, however, the small business wholesaler and particularly the retailer contribute much to the task of insuring ready access by all our people to their lifegiving products. In recent years there has been a continuing decline, both in market share, as well as actual numbers, in the independent sector of the industry. During the past year the committee has been receiving, with increasing frequency, complaints by individual small businessmen from throughout the United States concerning certain policies and practices of the manufacturers and others in the industry. Many of these complaints specifically allege conduct that would be violative of the Robinson-Patman Act and other portions of the antitrust laws. During the weeks ahead we shall receive testimony concerning the matters complained of. The focus of our attention will be directed primarily to antitrust violations which result in higher prices to small businessmen than those charged their larger competitors. There are, however, a number of other practices which will also be covered. In each instance those against whom allegations of illegal conduct are lodged will be afforded full opportunity to appear and respond to those charges. 1 With me today is my good friend and colleague from New York, Mr. Horton. It is expected that other members of the subcommittee will be present shortly. I have requested that observers from the Antitrust Division of the Department of Justice and the Federal Trade Commission attend these hearings. And it is hoped, gentlemen, that you will identify yourselves to the committee staff so that necessary liaison may be arranged between you and the agencies concerned and members of the subcommittee staff. As our first witness today the subcommittee is most honored to have one of the authors of our antitrust laws. He is one of the most distinguished Members of the Congress, of extremely long and valuable service, presently the chairman of the Banking and Currency Committee, and the former chairman of the House Small Business Committee, and presently the senior member of the committee. It is both a privilege and a personal pleasure to recognize our colleague, the distinguished gentleman from Texas, Congressman Wright Patman. Mr. Chairman, it is a privilege to have you with us today, TESTIMONY OF HON. WRIGHT PATMAN, A MEMBER OF CONGRESS FROM THE STATE OF TEXAS Mr. PATMAN. Thank you, Chairman Dingell, and Congressman Horton. I am glad to be here with the members of this subcommittee, members of the Small Business Committee of the House. This committee has a fine reputation, not only in Congress, but throughout the country, and I am glad to see that it is continuing to be very, very active in working for the cause of small business in our Nation. It is a real pleasure for me to be here with you today for the opening of your hearings. I would like to thank you for your courtesy in scheduling me as the opening witness for the very important and significant work on which you are about to embark. Mr. DINGELL. Mr. Chairman, if I may interrupt, it was the opinion of the subcommittee that there is no man in Congress who is better qualified to speak on the problems of small business, certainly no one who could better speak with regard to the history of the RobinsonPatman Act than you, and certainly no man in Congress who has a more distinguished record of service on behalf of small business and the people of this country. So we are indeed grateful and privileged that you could be here this morning. Mr. PATMAN. Thank you, sir. I feel highly complimented, Mr. Chairman. You and your subcommittee are to be commended on holding hearings on distribution practices in the drug industry and their effect on small business. I am particularly pleased that the central focus of your hearings will be on the Robinson-Patman Act. As I understand, you will be receiving testimony concerning alleged violations of this act, together with testimony from those Federal officials charged with the administration and enforcement of the act. You will, I am sure, receive much valuable testimony from the witnesses you have called. I note that the opening sessions of the |