The Oregon statesman. (Salem, Or.) 1916-1980, February 15, 1948, Page 3, Image 3

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SalemHeld Virtually Free of
Eye-Correction Rebate Racket;
Basis for Collections Detailed
By Marguerite Wright
Staff Writer. The Statesman
Mention the rebate racket to most any opthalmologist, optome
trist or optician in Salem and he will hasten to explain that everything
in his highly ethical field is on the up-and-up and that inter
professional relations in Salem are very cordial. And most of the
specialists and craftsmen interv iewed . by The Statesman want no
part of the mudslinging making headlines in other western cities, i
(A Chicago dispatch includes oculists in Washington and Oregon
among 2,750 accused by the government of accepting rebates).
But in P rtlrnd, Sar. Francis
co and elsewhere. Better Business
L ireaus are tracking down opti
cians and oculists who have been
the most regular p-actitioners of
the kickback system which jacks
up prices of refractions to pad the
pockets of eye doctors and eye
glass dispensers.
Racket Condemned
The racket, euphemistically
termed a "credit" or "commission"
system, means a hidden charge to
the customer and has been con
demned by the American Medical
association and other professional
groups.
It doesn't happen in Salem,
however, several local oculists,
optometrists and opticians protest
ed. At least, the local rebate prac
tice is on a small-scale and could
hardly be proved, they said.
The system operates like this:
An oculist (or opthalmologist) af
ter examining the pdtient (for
anything from free to $15 or
n.ore), prescribes the proper lens
and sends the customer to an op
tical dispensing firm. The dispen-
oser overcharges the patient and the
doctor gets the overcharge his
commission for dispatching pa
tients to the wholesaler. It has
been estimated that U.S. oculists
rake in about $35,000,000 every
year in secret kickbacks a prac
tice which could make necessary
visual correction a high - priced
luxury for the average consumer.
Someone Talked"
Albert Q. Maisel, in the Janu-
WE SPECIALIZE III
HADE TO ODDED
STORE FIXTURES
Of AH Types
O Restaurant O Jprocery
O Meat Market e Tavern
O Drug O Clothirrg
KITCHEN CABINETS
WARDROBES
LINEN CLOSETS, ETC.
FREE ESTIMATES U
BEAVEDCDAFT GO.
575 N. Lancaster
Salem, Oregon
Phone 9414
ary Readers Digest, attributes the
racket to companies (like Ameri
can Optical and Bausch and Lomb
which control - two-thirds of the
eye-glass business) which report
edly hatched the scheme to keep
peace between competing optorne
trists and oculists. If everyone
patronized oculists or opthalmolo-
gists (MDs) the non-medical pro
fessional eye examiners and glass
dispensers (optometrists) would go
broke. The rebate system has some
oculists' cooperation because many
of them are not adverse to extra
cash, especially when the patient
is in the dark.
The racket is also common in
some areas with physicians rebated
by pharmacists and physicians
collecting kickbacks from sur
geons, but the oculist-optician deal
was publicized, evidently, because
someone who didn t get ms cut.
"talked,"
Jealousy Blamed
At least. Dr. Harry A. Brown
of Salem thinks it is all the re
sult of professional jealousy. Med
ical doctors (usually eye-ear-nose-throat
experts) have not
been fond of optometrists in some
areas, al t h o u g h optometrists.
trained vision specialists, refer pa
tients needing medical care to their
MD competitors, he said.
So, by pointing out the sins of
gome oculists, some optometrists
are revenging the slighting they've
taken from the medicos. And in a
recent Oregon supreme court case,
State vs. Standard Optical com
pany, the firm's general manager
took a boke at optometrists with
his assertion that "it has been the
practice of optometry to charge
. 1 .1 . . . ! V
ail uie iraxnc uu ucoi .
Propaganda Charged
Manager G. Lewis of the Salem
Riggs Optical company blames the
opticians union for the expose.
He says it's all "malicious propa
ganda by the Guild Prescription
Opticians who want to force the
eye glass business into retail
trade." The Riggs firm Is
wholesale dispensary whose work
ers are non-union. Lewis warns
that "if the Guild opticians take
over, glasses will cost 30 per cent
more than now."
In the Maisel article the Guild
is mentioned as one organization
opposed to the rebate system.
Dr. W. N. Thompson, of the
Findley, Clement, Baum, Thomp
son and Dunham clinic, said Riggs
Optical was their agency for
grinding and dispensing glasses
and that Riggs did not handle the
financial transactions thus ne
gating any opportunity for rebat
ing. He pointed out that the rebate
system was more common when
there are several competing dis-
Stock Market
Continued to
Grow Steadier
NEW YORK, Feb. 14 -P)- The
stock market continued to dis
play selectively steadier tenden
cies today, after Tuesday's sharp
est break since last April, but
dealings were the slowest in more
than three moaths and the ave
rages showed a substantial loss
on the week.
An early rally in recently
slumping commodities, which did
not follow through for grains,
buoyed sentiment for securities
to some extent in the final ses
sion. From Monday on nose-diving
staples had received part of
the blame for the retreat in
stocks. Bidding, mostly- by pro
fessionals, in the concluding ses
sions was credited mainly to the
idea a technical comeback was
overdue. Throughout the week,
however, brokerage customers
held aloof or sold holdings be
cause of persistent doubts re
garding business, taxes, European
economic situations and labor.
In today's proceedings, varia
tions for virtually all pivotal
issues were in fractions. Trans
fers of 280,000 shares compared
with 330,000 Last Saturday and
were a low since last November
8. The five-session aggregate was
4,812,590 shares against 5,126,100
in the preceding six sessions. The
Associated Press 60-stock com
posite was unchanged on the day
at 60.5 where it was only J2 above
the low of last May 27. For the
week the decline was 1.5 points.
pensing opticians who give "com
missions" to drum up traae.
Not Here "To Any Extent"
This situation does not exist in
Salem "to any extent," those In
terviewed said, and most of them
eye the inter - professional feud
- . .... . M 1
with distaste Decause incy xeei
there is "room for all of us here."
Meanwhile. Better Business Bu
reaus in other cities have launch
ed campaigns against the rebate
system because they believe the
profit motive can destroy the
whole structure of ethical stand
ards and that the public, which
foots the bill In any case. Is en
titled to know where the money
goes.
Scout Leader
i 1
' , . - -
t
J LI - 1-
' . .' .
r '' C
Mart P.' BoshncIL national Boy
Scoot training officer from Los
Angeles, who Is cond actios
three-day training coarse, end
ing today, for about 30 faculty
members of the Cascade area
council adult training and lead
ership committee at Silver
Creek recreational are camp.
BoshneU will leave Monday for
Aberdeen, Wash., to conduct
similar eonrse.
i Public
Ulceortls
MUNICIPAL COURT
Darrell Miner, Salem route 9,
driving without driver's license,
posted $5 bail.
Blaine Merritt Cline, 879 N. Lib
erty st, violation of basic rule,
posted $10 bail.
Carl T. Cox, Salem route 7, vio
lation of noise ordinance, posted
$5 bail.
CIRCUIT COURT
C. . McKibbon vs Hattie Mc
Kibbonr Default order Issued.
Anna C. Holmes vs Earl Holmes:
Default order issued.
Mortimer A. Rowe vs Elizabeth
CRowe: Default order issued.
Rosemary Spraker vs James
Spraker: Suit for divorce asks $500
alimony, possession of certain per
sonal property and restoration of
plaintiffs former name of Rose
mary Grenz. Married March 30,
1946, at Vancouver, Wash.
Vera Jackson vs Charles Wesley
Keller and L. Allen Perkins: De
fendants file answer admitting and
denying.
PROBATE COURT
Frank R. Burns estate: Order ap
points Mary Ellen Burns as ad
ministratrix and I. N. Howe, Lil-
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First Church oi Christ Scientist, Salem, Oregon
Announces
A Free Lecture on
CHRISTIAN SCIENCE
ENTITLED
CHRISTIAN SCIENCE
It's Practical Application to ETeryday Llla
BY
SIM ANDREW KOLLXNER, C. S. B.
of Saint PauL Minnesota
Member of Um Board of Leetareshlo of The Mother
Chares. Tho First Charch or Christ, Scientist,
fas Boston, MassaehasctU
In the Senior High School Auditorium
Fourteenth and D Streets
Tuesday Evening, February 17 at 8 o'Clock
All arc cordially invited to attend
The Statesman, Salotn. Orogon, Sunday, Fobruarf IS. HlS3
lie J. How and George Pense ap
pointed appraisers.
POLK COUNTY RECOBDS
Ctrcelt Coart
DALLAS J. K. Parmenter v.
Harvey Wheeler; plaintiff asking
Judgment for $1420.24 for labor
and material allegedly delivered
to defendant and for costs.
Lloyd V. Henry vs. Juanlta S.
Henry; cruel and inhuman treat
ment cause for action. There is
on minor child.
Ceanty Coart
DALLAS Winona O. Riggs has
been appointed executrix of the
estate of Cecil Lynno Riggs, do
ceased. Claims to be presented
within six months.
Marriac Applications
DALLAS Theodore F. Nova,
truck driver, and Dolores Wallace,
waitress, both of ValseU-
John William Agard, Monmouth,
sawmill worker, and Donna J,
Vanderf een, - Independence, typist.
Look over The Statesman clai
I fled columns for bargains, opportunities.
Grain Price
Plunge Halts
CHICAGO, Feb. 14 -i?V Tho
plunre In grain prices was halted
on the board of trade today.
Wheat and oats ended with mod
est gains while corn contract
were mixed. Soybeans extended
their dive and lard advanced.
Brokers said the mulket was
the moit orderly since the cur
rent break began on February 4,
although there was on sinking
spell late in the session when
corn tumbled several cents with
in a few minute. The Urgent li
quidation appeared at least tem
porarily ended, traders said.
Wheat closed ,4-2, higher.
May $2.34 1-: corn was ' low
er to 1 cent higher. Mae Ui
i; oats were lVi-2 higher. May
$1.02,i-4, and all soybeans were
down the S-cent dally limit,
March $3.25. I
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