FTC Charges 5 Drug Companies
With Fixing Miracle Drug Prices
WASHINGTON (UPI) - Five
leading U.S. drug manufacturers
have been charged by the Fed
eral Trade Commission FTO
with conspiring to fix prices of
a widely-used miracle drug.
The commission Saturday or
dered the companies to tear up
all price lists for tetracycline, a
drug used to cure a great variety
of bacterial, infections, and pub
lish new prices independently. -
A basic ingredient of the drug
is Aureomycin, the FTC said
The five-man commission also
claimed, in an unprecedented
move, the authority to take ac
tion to limit or completely halt
enforcement of drug patent rights
held by two of the firms, Cnas.
Pfizer and Co., Inc. and Ameri
can Cyanamid Co.
The FTC charged they had ob
tained the patents unfairly by
withholding important information
from the U.S. Patent Office.
. The other three firms charged
Were Bristol-Mycr? Co. and Bris
tol Laboratories, Inc.; Olin Ma
thieson Chemical Corp. (Squibb),
and the Upjohn Co.
The FTC said it considered
Bristol Laboratories a subsidiary
of the Bristol-Myers Co.
Deny Charges
Pfizer and Bristol Myers
promptly denied the charges, and
along with Cyanamid, said they
would appeal the order in federal
courts.
The FTC said that Pfizer's 17-
year patent on tetracycline could
yield potentially more than a nil
lion dollars in sales. Sales of the
drug, "probably the leading anti
biotic on the market today, it
said, have run more than $100
million annually.
The FTC order, which over
ruled its examiner's recommen
dations made after two years of
study, told the companies that
new price lists must be based on
individual manufacturing and
overhead costs, desired margins
For Expert, Reasonable
ELECTRICAL WIRING
ELECTRICAL HEATING
REFRIGERATION SERVICE
CALL
BRICK LEACH
TU 2-2528
of profits and "other lawful con
siderations.
The regulatory agency gave
each firm a deadline of 60 days
from the date of its final order
which was not specified. An FTC
attorney explained that the com
mission would first study and is
sue a second order dealing with
the Pfizer and Cyanamid patents.
As the basis for its authority
to prevent a patent's enforce
ment, the FTC cited Supreme
Court decisions and it own
powers inherent in the Federal
Trade Commission Act. It said it
used this power to prevent the
public from being "classed
among the mule and helpless vic
tims of deception and fraud.
The commission charged the
firms conspired by having fre
nuent contacts, including ex
change of up-to-date price lists,
issued uniform price lists, iden
tical bids to purchasers and iden
tical dosage forms.
Pfizer, in a statement, said
"We have not fixed prices. We
obtained our tetracycline patent
in good faith and without any
impropriety.
Dr. Philip I. Bowman, president
of Bristol Laboratories, said his
firm would appeal "with confi
dence that our position will be
ultimately vindicated."
W. G. Malcolm, chairman and
chief executive officer of Ameri
can Cyanamid Co., said his firm's
lawyers "assure us that the ex
aminer's initial decision exonerat
ing Cyanamid and the other de
fendants was well founded."
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U.S. Dealings
With Alcoa
Questioned
WASHINGTON (UPH - Con
gressional auditors have reported
they are "vitally concerned over
the reasonableness" of prices
paid by the government in its
dealings with the Aluminum Co.
of America.
The General Accounting Office
(GAO) made the statement in a
rexrt sent to Congress Friday- on
the sale of military aircraft forg-
ings manufactured at Alcoa's
Cleveland, Ohio, works. The re
port charged that tlie forgings
were "substantially higher than
current and expected costs of
production."
Later in the report, the GAO
Congress's watchdog over federal
spending went beyond the air
craft forgings issue.
"We found evidence during our
review," the GAO said, "that the
practices noted above are gener
ally folio 'ed by Alcoa in the pric
ing of a.l government business
amounting to many millions of
dollars annually, and we arc
therefore vitally concerned over
the reasonableness of the prices
paid."
The agency said the forgings
which were sold non-compctitive-ly
totaled $2.6 million. It said
the "known current" production
costs were exceeded by $893,300.
In addition, the report said, Al
coa rclused to allow me Air
Force or its contractors to review
Alcoa's actual cost data for pur
poses of negotialing a contract.
Alcoa took sharp exception to
the GAO findings. It said they
were in error because they were
based on information "that can
only be described as incomplete."
The company, whose reply was
included in the report, said it
charged higher than average
prices to offset lower profits and
losses from other contracts with
the same contractors.
White Citizens Council Leader
Draws Segregation Battle-Lines
By AL KL'ETTNKR
United Press International
You might take him for a col
lege professor or a successful
businessman. He is suave, intef
ligent and soft-spoken. He wears
well-tailored suits and stays
the best hotels when he is on the
move, which is often.
But when Bill Simmons intro
duces himself, he doesn't waste
much time letting you know that
what he is doing running the
Citizens Council. His organization
is regarded by many as the most
Spain May
Give Freedom
To Provinces
SAN SEBASTIAN, Spain (UPI I
Spam said Saturday it soon
would start negotiations leading to
full independence for its two rich
est African provinces.
Information Minister Manuel
Fraga Iribarne said the two prov
inces are Fernando Po and Span
ish Guinea. He made the an
nouncement following a cabinet
meeting chaired by Gen. Francis
co Franco, chief of state.
Iribarne said talks would start
soon with native leaders in the
African territories to grant auton
omy to them. He said bills would
be submitted for parliamentary
approval after the talks are
completed.
Two other African provinces
would not be affected. They are
Ifni, n tiny enclave south of Mo
rocco, and the Spanish Sahara.
Spain also has two cities on
Morocco's Mediterranean coast,
Cucla and Melilla.
militant of the nation's arch-segregation
groups.
In the constantly shifting devel
opments of the racial transition,
the voice of the Citizens Council
ebbs and flows. Its lines are out
in politics, education and even so
cial li'e. It is strongest in the
state of Mississippi where it was
born, but today it has strong
touches in many states and its
disciples travel thousands of
miles a year to spread a doctrine
that racial segregation is best for
the Negro and the white man.
Test Of Influence
The council (it doesn't like to
be called white) was organized
just 55 days after the May 17,
1954, Supreme Court school de
segregation decision. It may have
a ne'v test of influence soon, de
pending on the outcome of the
Mississippi gubernatorial runoff
between Lt. Gov. Paul B. John
son and former Gov. J. P. Cole
man.
When Coleman was governor
he cut off state sovereignty com
mission funds to the council. The
present governor, Ross Barnett,
restored the appropriations,
which come from state tax mon
ey. While the council expressed
no public support of a candidate,
it is agreed it still has no love
for Coleman.
Membership in the council is
not publicly known but it is large.
It took an upsurge at the time
of the University of Mississippi
integration crisis last September.
Discusses Goals
In an interview not long ago,
Simmons relaxed in an Atlanta
hotel room and talked about the
organization:
About critics: We don t answer
them at all. We've got too much
to do. We have one field of in
terest, segregation and states
rights. As you know, there ARE
Latin Alliance Progress Seen
WASHINGTON (UPll - Un
like last year, there will be an
observance of the second anni
versary ot the launching of Presi
dent Kennedy's Alliance for Prog
ress economic program for Latin
America.
Tcodoro Moscoso, U.S. coordina
tor for the alliance, has told his
staff in a candid memorandum
that "on this second anniversary
. . .the alliance has something ot
which ... it can be proud."
It was Moscoso who last Aug
ust, in a similar memorandum to
his farflung aides throughout Lat-
America. said there was
nothing yet to celebrate.
'Today, the brick and mortar
of construction under the alliance
can be seen in many cities and
villages, and along the highways
of Lai in America. The objectives
and principles of the alliance are
beginning to make an impact on
the thinking people," he said.
He used the President's recent
words to acknowledge that the
alliance has a "long, long way to
go." And also like the President,
he said "we ought to keep
portant, such as better tax eol-limited about $1.2 billion for de
lection systems, cooperatives sav- velopment progress. About the
ings and loan associations, re- ...., u. , ,OP th-
vised scnooi ana university pro
grams, agricultural and industrial
development banks," he added:
'In our jargon, it is institution
building. In plain language, it
is putting in the machinery that
any modern democracy needs."
During the lirst year of the al
liance, the U.S. government com-
at
it.'
The alliance was launched two
years ago on Aug. 17 ai mnia
Del Este, Uruguay, wnen me
United States joined 19 Latin
American nations in the multi
billion dollar social and economic
development plan.
Moscoso said "important prog
ess" has been made so far in
gelling private enterprise to work
with the governments in me pro
gram. He added that tlie alliance
cannot succeed without the de
velopment o( a vigorous and so-
iallv tesponsible private sector.
During the last two years, he
said, more than 140,000 homes
and more than 8.000 classrooms
have been built. "But there arc
many other accomplishments, less
tangible but perhaps more
Berlin Units
Strengthened
BERLIN (UPll The U. S.
Army announced Saturday it is
stepping up the armored strength
and fire-power of its Berlin gar
rison to make it a better-balanced
military force with im
proved flexibility and mobility.
Under the reorganization, the
American garrison will be equip
ped with more tanks and armored
personnel carriers. The new MfiO
tank, described by Army officials
here as far superior to the Soviet
T54. will replace the old M48
! tank.
the MM) is tlie best tank in
the world in its ability to hit and
destroy enemy tanks," an Army
official here said. '
In a key clement of the reor
ganization, the battle group will
be replaced as the basic Army
combat unit by tlie battalion.
The reorganization, effective
Sept. 1, will increase the number
of tanks from 25 to 30, double
the number of armored person
nel carriers from 15 to 30, in
crease automatic and anti-tank
weapons, and replace towed how
itzers by self-propelled howitzers.
American officials said the
move was part of the organiza
tion of the entire Army under the
new "reorganization army divi
sion" concept.
second year.
PAGE-U
HERALD AXD NEWS,
Monday, August 12, 1963
Klamath Falls. Oregoa
prob'ems. We are concerned w ith
those."
About the council program:
"Influencing public opinion.
Everything we do is geared to
that. We have a television-radio
program which is distributed to
all 50 states." (Northern stations
get a program on both sides of
the issue; southern stations an in
formative approach). "After hear
ing what comes through the south
ern stations, I wonder if we
shouldn't approach them much
the same way we do the north.
Also, we have printed millions ol
pieces of literature pamphlets,
tracts all the way to full-blown
essays, and a monthly publica
tion."
About the outcome of the racial
situation: "If I were an integra-
tionist, I'd be very discouraged.
All the easy cround has been
used up. As the experience de
velops in the North where they)
have had token integration until
recent years, it will create more
reluctance to go ahead with this
sociological experiment."
About the Negro's future: "They
ought to aim at being good citi
zens. (But on the voting issue,
he thought "the Negro generally
has not shown his maturity and
his ability to adapt himself to pol
itics." He felt the Negro there
fore s subject to use by political
machines.)
A b 3 u t an educated Negro's
chances in Mississippi: Unlimit
ed as long as he stays in the
Negro community. It s un-Ameri
can to hand people opportunites.
Men must make their way, be1
worthy of their hire. They should
not get it because of race, but
should develop their abilities as
far as they are able. Mississippi
has many cases to prove this."
STAR GAZER
AMES
0 1-8.58-6a
TAUIUS
AM. 21
MAY 21
Slid
GfMlM
MAY 22
JUNE 22
CN1 1-17-25-33
14-51-76-81-88I
CANCU
JUNES
JULY 23
6-18-21-39
uo -
VS24 34-394I;
Cg 43-70-74
vnoo
AUG. 2'
SEPT. 22
feTi 3- 7-264A
-By CLAY B. POLLAN
Your Daily Activity Guide
According to the Stan.
To develop messoge for Tuesday,
reod words corresponding to numbers
of your Zodioc birth sign.
1 Cxellent
2 Do
3 Visrf
4 Pl0V
5 Sup"M
6 Work
7 Tb
8 Out look
9 Better -
10 Everything
1 1 Cve
12 Work
13 Welcome
U Watch
15 Possible
16 F i none i o I
17 Attention
18 rUh.nd
19li
20 And
21 The
22 Good
23 Your
2i Your
25 To
26 Neighbors
27 Mori
28 For
29 Comc1o
30 An
UUA
SPT.2J -OCT.
4- 5-13-16
pi -49-57
31 Gain) 61 Love
32 Or .62 You A
33 Small 63 Reolue
:4iVotk 64 And
35Vveg"t 65From
26 You've ooSlnnoj
37 Entertain 67 Soc-ol
38 Scenes - 8 Personal
39 Interests t9 iee
40 Ordinal 70 For
4lTak 71 Home
42 And 72 Mutuot
43 Turn 73 Friendship
44 Senibl 74 Better
45 Much 7b Hope
46 To 76 ProctKTof
47 At 77 And
48 Day 78 Agreement
49 Are 79 And
50 Pull SQWiie
51 Debtt 81 Matters
52 Lm 82 The
53 Viewpoint 83 Keep
54Sporkt 84 Harmony
55 Woltet 85 Oocki
56 And 8o Personal
57 Out 87 Reiulri
58 To 88 Duii
59 Gout ?9 DesirM
60 To 0 Interests'
KOtno
OCT. 24
NOV. 22
12-27-29-52 jfi
2-682-87 J
2
SAGfTT A1IUS
OEC. 22 fai
2-10-15.20-4-6&83-84Vl
CArncotN
DEC 21
Jan. :
8-19.59.
I67-77-86-96VS.
AQUAMUS
JAN. 21
FEB. I
9-14.23.35
155-56-805
FtSCK
FEB. 20 Vi
MAR. 21
36i6-59a
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WASHINGTON UiPl - At
Ica.-t four nalions arranged to
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Nations announcing they would
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for the installation of a 200-ampere service entrance panel,
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water heater, and electric washer and dryer.
This allowance means that o truly modern service entrance; in your home will tost yeu virtually nothing!
HOW TO QUALIFY FOR THIS BONUS ALLOWANCE.
AHowoixes will bd made wily on pernwnent installations
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heating or wiring contractors deploying the Ca'Ore Electrical
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