APPENDIX BRONX, N.Y., July 3, 1967. Hon. JOHN D. DINGELL, 2361 Rayburn House Building, Washington, D.C. HONORABLE SIR: I am one of the pharmacists that testified before the Select Committee on Small Business.1 On June 30th, due to the conditions I explained at that time, I had to liquidate my business. However, no bankruptcy was involved as I tried to pay off my creditors in an honorable way. Almost all the manufacturers and wholesalers were willing to take back merchandise I bought from them in order to straighten out my debts. McKesson & Robbins of the Bronx refused to co-operate! After some wrangling they agreed to take the merchandise if I would accept 50% of retail value and deliver it to some distant place in Queens. I did not try to settle with them, like most other retail stores that go out of business, for 10 or 15%. I wanted to return merchandise wholesale value, dollar for dollar that was coming to them. (I owe them less than $300.00) I think they are doing same to get even for my testifying before your committee. The man I dealt with was a Mr. Lubin. I would appreciate it if you would straighten out this matter for me. Thank you! Very truly yours, NATHAN SHRAGE. P.S. The name of my concern was Bennett Pharmacy, Bronx, N. Y. SELECT COMMITTEE ON SMALL BUSINESS. SKINNER'S PHARMACY, Plymouth, Ind., July 9, 1967. GENTLEMEN: Following the presentation of my statement to your committee on April 3, 1967 Chairman Dingell requested that I forward to the committee some data pertaining to minimum dollar value order requirements of pharmaceutical manufacturers with which I had had personal experience. The following information is submitted: Abbott Laboratories has a minimum order requirement of $15.00 and a minimum annual purchase requirement of $500.00. Ayerst Laboratories has a minimum order requirement of $100.00. Ciba Pharmaceutical Co.'s minimum order requirement is $50.00 and their minimum annual purchase requirement is $750.00. A representative of the Ciba Co. advised me that this annual requirement was soon to be raised to $1000.00. Lederle Laboratories and Merck, Sharp & Dome do not have minimum requirements but discounts of 7% to 15% may be obtained by purchasing from them in dollar amounts of over $50.00 to over $100.00. MS&D catalog explains this. E. R. Squibb and Son has a minimum order requirement of $25.00 and an annual purchase requirement of $750.00. The Upjohn Co. has no minimum requirements but rewards the purchaser with a 15% discount for buying direct from Upjohn rather than buying the same product through a full service wholesaler. The Wyeth Co. will accept orders of no less than $50.00 and have no annual purchase requirements. 1 See p. 171, vol. 1 of these hearings. See p. 36 of vol. 1 of these hearings. 78-783 0-68-vol. 2 -58 A169 Obviously there is no uniformity and each company must be sounded out for its own pricing policy. If I can be of further service to the committee, please fell free to call on me. MERRITT L. SKINNER IOWA METHODIST HOSPITAL Des Moines, Iowa, March 22, 1968. Hon. JOHN DINGELL, House of Representatives, Washington, D.C. DEAR SIR: I have noted in several trade journals your committee is investigat ing drug manufacturers pricing policies. The area that interests me is denying hospital pharmacies exemption from the Robinson-Patman Act. I feel once again the picture has been distorted. The retail pharmacist has complained long and hard about the unfair business world. For years the retail pharmacist has said hospitals dispense to out-patients. When they are asked for definite proof of this, usually it is not at hand. Of course there are some hospitals who practice this, I will not deny it, but they are few and far between. We also do not receive discounts from manufacturers that even approach 50% They range from .0% to 15% discounts, based on list prices. Most are about 8% to 10%. I have never purchased an item from a manufacturer that the com pany did not make a fair profit. This idea of companies giving of themselves to hospitals is absurd. Though the discounts are not as large as have been reported, they are substantial enough. We would like to receive them, as they are passed on to the patient. If hospitals do lose their exemption from the Robinson-Patman Act. only the patient will suffer for any increase in price will be passed on to the patient. Half of my working days are spent trying to buy medications cheaper and still keep quality. These savings are passed on to our patients. I would hate to have the Federal Government force us to increase prices even more. Further, we are told that drug prices do not increase and many decrease. Yet, almost daily I receive price increases from the drug industry. We in hospitals feel the rise in our costs and the rise in patient cost as much as anyone. We are not here to gouge the public but to serve them. Hospitalization is expensive today, however, our profits are not exorbitant. We try to show surpluses so that money will be available to extend facilities and services. This is due to public demands for better hospital service and more extensive diagnosing and care facilities. We would like to see room rates at the price they were 20 to 30 years ago. I would also like a nickel beer and groceries for $1.00 a bag. However, in those years past, hospitals were a place to go and die. Today, they are treatment centers where they go to live and complain about the high cost of living. There are always two sides to every story. I would appreciate you consider ing ours. I think with a little sincere effort by you and your committee you will find the picture is not so dark. Thanking you for your time and consideration, I am Very truly yours, ROBERT G. CLARK, Chief Pharmacist. new oral contraceptive from Searle- Img. Ovulen combines low dose with low cost for greater patient acceptance. Ovulen is packaged in the unforgettable Compack Tablet Dispenser and Compack Refill offering convenience plus economy. EXHIBIT III THE NATIONAL WHOLESALE DRUGGISTS' ASSOCIATION STATEMENT OF ELECTION TO ACCEPT THE DISTRICT OF COLUMBIA NONPROFIT CORPORATION ACT To: The Recorder of Deeds, D.C., Washington, D.C. Pursuant to the provisions, particularly Section 29-1099b-e, of the District of Columbia Nonprofit Corporation Act (Title 29, Chapter 10 of the Code of Laws of the District of Columbia) (76 Stat. 265, August 6, 1962) the undersigned corporation, organized on May 3, 1910, and existing under the laws of the District of Columbia (31 Stat. 1283, Ch. 854, §§ 599-604, as amended) (Title 29, Chapter 6 of the Code of Laws of the District of Columbia), which is organized not for profit and is without authority to issue shares of stock, and is organized for purposes for which a corporation may be organized under the provisions of the District of Columbia Nonprofit Corporation Act, hereby elects to avail itself of the provisions thereof. First: The name of the corporation is "The National Wholesale Druggists' Association”. Second: The National Wholesale Druggists' Association has elected to accept the District of Columbia Nonprofit Corporation Act. Third: (a) At its meeting on June 23, 1966, the Board of Directors (designated as the Board of Control) of The National Wholesale Druggists' Association unanimously adopted a resolution recommending that The National Wholesale Druggists' Association accept the District of Columbia Nonprofit Corporation Act and directing that the question of such acceptance be submitted to a vote of the members having voting rights at their next annual meeting: (b) on Novem ber 17, 1966, an annual meeting of the members of The National Wholesale Druggists' Association was held, pursuant to its By-Laws and the notice to its Active members dated October 10, 1966 and deposited on October 10, 1966 in the United States mail addressed to each such member at its address as it appears on the records of The National Wholesale Druggists' Association, with postage thereon prepaid, at which annual meeting a resolution to accept the District of Columbia Nonprofit Corporation Act was adopted; (c) of the 368 Active members of The National Wholesale Druggists' Association, who were the only members entitled to vote on such proposal, 149 were present at such meeting and constituted a quorum, pursuant to Section 4(a) of Article VII of the By-Laws: and (d) the resolution accepting the District of Columbia Nonprofit Corporation Act received the affirmative votes of 271 Active members, which votes represented at least two-thirds of the 285 votes entitled to be cast by Active members present or represented by proxy at such meeting. Fourth: The purposes which The National Wholesale Druggists' Association will hereafter pursue as a trade association and business league not organized for profit and no part of the net earnings of which shall inure to the benefit of any member or individual, are as follows: 1. To promote amicable and social relations and respect among wholesale druggists of the United States, to guard against feelings of distrust and jealousy which might arise from time to time among such wholesale drug gists, to discountenance all customs not in accordance with sound business principles, and to establish rules and regulations whereby all grievances and differences that may arise may be fairly and equitably adjusted. 2. To foster sound business principles in all phases of drug distribution in the interest of the public as well as retailers, wholesalers and manu facturers. 3. To acquire and disseminate on such terms and in such manner as it may deem desirable business information on all phases of the manufacture. distribution and use of drugs and related products. 4. To assist its members to improve their efficiency through research and education. 5. To promote the use of full service wholesale druggists by retailers and manufacturers. 1 Fifth: (a) The National Wholesale Druggists' Association has members and there are four classes of such members, designated, respectively, Active members, Associate members, International members and Honorary and Complimentary members; (b) pursuant to Sections 29-1012 and 29-1030 (a) (5) of the District of Columbia Nonprofit Corporation Act, The National Wholesale Druggists' Association hereby elects to set forth in its By-Laws and not in its Certificate of Incorporation or Statement of Election to Accept, the manner of election or appointment and the qualifications and rights and limitations of the members of each of such four classes of members; (c) Associate, International and Honorary and Complimentary members are not entitled to any vote on any matters affecting The National Wholesale Druggists' Association; and (d) pursuant to Section 29-1016 (a) of the District of Columbia Nonprofit Corporation Act, The National Wholesale Druggists' Association hereby confers upon its Active members, and only upon its Active members, the right to vote on any matter affecting The National Wholesale Druggists' Association, and each Active member shall be entitled to cast one vote on all such matters properly brought before The National Wholesale Druggists' Association for decision by the Active members including, without limiting the generality of the foregoing, the election of members of the Board of Control, as provided in the By-Laws of The National Wholesale Druggists' Association. Sixth Provisions for the regulation of the internal affairs of The National Wholesale Druggists' Association, consistent with law and the District of Columbia Nonprofit Corporation Act, are contained in its By-Laws. Seventh: The address, including street and number, of the National Wholesale Druggists' Association's registered office in the District of Columbia is 918 Sixteenth Street, N.W., Washington, D.C., and the name of its registered agent at such address is CT Corporation System. Eighth The names and respective addresses, including street and number, of The National Wholesale Druggists' Association's officers and directors (designated as members of the Board of Control) are as follows: |