Drug Trade

wholesale, time, drugs, druggists, association, pharmaceutical, rebate, plan and founded

Page: 1 2 3 4 5 6

Of course, it must not be imagined that chemistry is the only agency that has been ative in shaping this development. One of the first in importance among these agencies has unquestionably been the °United States macopceia.a The first pharmacopoeia published in the United States was printed in phia in 1778. It was made up for military poses. The next publication of the kind was issued by the Massachusetts Medical Society in 1808. But these did not have a considerable circulation, and, as a matter of fact, up to the beginning of the 19th century, and even for some years thereafter, drugs were dispen d according to the pharmacopoeias of fore gn countries; jt was not until some time tween 1810 and 1820 that any attempt was made to better these conditions. In 1820, the first edition of , the "United States Pharmacopoeia" appeared, and this work, which has passed through successive decennial revisions up to this time, is regarded the world over as the standard in all manipulations of drugs and medicinal chemicals, from the identification of the crude material to the final stages in its preparation for the use of invalids. The names of Proctor, Maisch and Rice are inseparably connected with the early issues of this great work.

The governmental inspection of imported drugs, which commenced about 1825, was largely the result of the initiative taken by the newly-established pharmaceutical colleges in New York and Philadelphia. This inspection, still conducted by the national officials, has an important effect in upholding the standard of purity in drug imports.

The first law regulating the retail sale of drugs and poisons that was passed in the United States was enacted by the State legisla ture of Rhode Island, in 1870, but since that time almost every State in the Union has placed a similar act upon its statutes. While there, is a lack of uniformity in these laws, in general they cover the same ground by' restricting all dealings in drugs, as well as all compounding of prescriptions to such persons as have been able to pass a satisfactory examination before a board of pharmacy. As such laws were not retroactive their beneficial effect has been only partially determined, as those who were engaged in the drug business prior to the passage of these acts were allowed to continue regardless of their ability to pass an examination.

Another agency that has accomplished im portant results in the betterment of the drug trade are the various associations that have been founded since the middle of the 19th century. The first association instituted for the conserva tion and advancement of the material and pro fessional interests of the business was the Amer ican Pharmaceutical Association, which was founded by 21 active pharmacists in 1852. This

association holds annual meetings for the dis cussion of scientific and educational questions, and other matters relating to the welfare of the trade, has a membership of 2,490 (1916), and one of the effective features of its work is the annual publication of its proceedings, a work which presents a complete review of the scientific progress of pharmacy, and the monthly publica tion of The American Pharmaceutical Associa tion Journal. One of the most important in fluences exerted over the retail trade is repre sented by the various State pharmaceutical as sociations, the oldest of which, that of New jersey, was organized in 1870, while one of the most notable events in the history of the whole sale drug trade during the 19th century was the organization of the wholesale houses of the West under the name of the Western Wholesale Druggists' Association. It was founded in 1876, and was called into existence by the peculiar conditions of the times. In 1882, many of the prominent Eastern druggists joined forces with the Western wholesalers, at a meeting held at Cleveland, Ohio, and, at this time, the name of the organization was changed to the National Wholesale Druggists' Association. To secure trade, and, afterward, to hold it, required a competition that finally became so sharp that concerns which had hitherto been regarded as prosperous houses found themselves unable to make profits. As the result a committee was appointed to try to introduce a system that is now known as the "rebate plan." According to the old system such articles as patent medicines had been sold on a very close margin, and the new plan was devised to give the wholesale druggists an opportunity to obtain a fair profit upon such preparations. By the adoption of the "rebate plan," therefore, the wholesale drug gists consented to sign a contract by which they agreed to maintain established prices, on condition that they were to receive 10 per cent redUction, or rebate, upon the regular wholesale price, and with the penalty of being placed upon the "cut-off" list, and thus debarred from buying from the proprietors, in case they were guilty of violating their agreement. At this time the only profit to the wholesale trade was this 10 per cent rebate. The plan worked well for a time, but was completely demoralized by the. entry of the department stores into the drug business, and their policy of using cut prices on drugs and druggist's sundries to attract custom for other articles. The steps taken to correct this situation brought the trade up against the restrictions of the Sherman anti-trust law, and the government brought suit against the pro tective combination. The net result has been to reduce the margin in the wholesale drug busi ness to a bare 3 per cent.

Page: 1 2 3 4 5 6