Lilly & Co., the Ell

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF THE ELI LILLY & COMPANY MODIFYING CEASE AND DESIST ORDER Docket 155. Order, January 28, 1938 Order modifying Commission's prior cease and desist order in 1 F. T. C. 442, directed against respondent's resale price maintenance practices in connection with resale by its wholesale distributors of respondent's drugs, pharmaceuticals, and similar products, so as to permit, as in said below modifying order specified, resale price maintenance agreements covering resale of commodities where lawful for intrastate transactions under statute, law, or public policy of particular State or other jurisdiction concerned.

M1•. Simon Jfichelet, of Washington, D. C., for respondent. ORDER Modifying ORDER TO CEASE AND DESIST The respondent herein, The Eli Lilly & Company, by its attorney, Simon Miehelet, Esq., having filed with this Commission its motion to modify the order to cease and desist issued herein on May 27, 1919, in the light o:f the provisions o:f Title VIII o:f the Act of Congress, approved August 17, 1937, entitled "An Act to provide additional revenue for the District of Columbia, and for other purposes," and the Commission having duly considered the said motion and being fully advised in the premises, Now, therefore, it is hereby ordererlJ, That the said motion be and the same is hereby granted, and that the said order to cease and desist be and the same is hereby modified so that as modified immediately :following the proviso immediately after subparagraph numbered (6) of the said order the following be and the same is hereby added :

P1•ovided, That nothing herein contained shall prohibit contracts or agreements prescribing minimum prices for the resale of a commodity which bears, or the label or container of which bears, the trade mark, brand, or name of the producer or distributor of such commodity and which is in free and open competition with commodities of the same general class produced or distributed by others, when contracts or agreements of that description are lawful as applied to intrastate transactions, under any statute, law, or public policy now or hereafter in effect in any State, Territory, or the District of Columbia in which such resale is to be made, or to which the commodity is to be transported :for such resale, and Provided Order 26F. T. C.

further, That the immediately preceding proviso hereof shall not permit any contract or agreement providing for the establishment or maintenance of minimum resale prices on any commodity herein involved, between the respondent The Eli Lilly & Company and any other manufacturer or producer, or between wholesalers, or between brokers, or between factors, or between retailers of the products of The Eli Lilly & Company or between any persons, firms, or corporations in competition with each other in the products of The Eli Lilly & Company.

DRADAS & GHEE~::., INC., ET AL. 583 Syllabus