; i | anes e ° oa > — ist Issue May, 1961 WESTERN CANADIAN LUMBER WORKER Federal Report Shows > ann AD Canadian Drug Prices Highest In World. Canada's drug prices, the highest in the world, are inflated by excessive advertising, unnecessary research and: lack of compe- tition, according to a federal government report. The combines banch of the federal Department of Justice has handed a report to the Restrictive Trade Prac- tices Commission, the Ottawa Citizen revealed recently. Four Factors The report, product of three years’ study, says four factors are respon- sible for high drug prices in Canada: 1. Monopoly control by manu- facturers over many valuable drugs through exclusive patent rights. Drug manufacturers re- corded a 10.5 per cent profit — one of the highest in Canada — in 1958, the report states. 2. Costly and largely unneces- sary advertising, promotional and research activities. Advertising costs were 25 per cent of the sales incomes, according to a survey of drug firms. 3. No competition among retail drug stores. Usual agreed mark- up is close to 40 per cent. 4. A federal sales tax of 11 per The sales tax merely pushes Ca- nadian prices above already-inflated _ prices, the report says. This has ‘the mM | A nurse, effect of making Canadian prices higher than U.S. prices, and gives Canada the distinction of having the highest drug prices in the world. U.S. Monopoly Most drug products sold in Canada originate in the United States. Drugs, manufactured and patented in the U.S. under laws which give the manufacturer a virtual monopoly over his product, supplied to the Canadian market either directly or through a Canadian subsidiary. Prices are at least as high as that charged in the U.S., according to the report. In the case of new patent-control- led drugs, prices are high in the sense that a large mark-up over the cost of producing the drug is taken by the manufacturer. Then it goes to the retailer. The report hits hard at retail drug prac- tices. Manufacturers’, wholesalers’ and pharmacists’ associations circu- late lists suggesting prices to the re- tailer. Druggists almost invariably adhere to these lists — and complain to their associations about any drug- gist who doesn’t. Price Code Mark “Tt may be noted in passing that pharmacists are urged to use a code to mark the price which they have charged on a prescription so that, if it is refilled by another pharmacists, the same price can be charged,” the report states. “Failure by a druggist to observe these accepted prices is frowned on as chiselling and as verging on un- ethical conduct The usual markup, the combines branch says, is 40 per cent of the selling price. On top of this is added a 75 cents “prescription fee” for each prescription filled costing less than $15, Turning to the claim that high prices are the result of research, the report states: Advertising Costs “The cost of advertising and pro- motion is one of the major expenses of doing business and is of course, reflected in the prices charged for the product . . . The large expendi- tures on advertising and promotion by the big prescription drug firms is admittedly one of the reasons why the products of such firms are fre- quently higher priced than those of smaller firms”. Markups by manufac- ‘turers often far exceed production and research costs, the report says. The “high-pressure promotion” leads to a multiplicity of substantially similar products which have “no medical justification to be marketed and sold, and the widespread use of complicated and potentially danger- drugs for trivial illnesses is being encouraged.” Genuine research is of great bene- fit to the public. “The practice which is criticized is that of producing com- binations which are only slightly dif- ferent from the basic drug or from other combinations already on the market and promoting these new combinations almost invariably under trade names as new and important developments,” Wonder Drugs This specific criticism is levelled mainly at the practices of drug manu- facturers outside Canada since so little research is carried on in this country. Most of the world’s leading drug firms have branches in Canada and most of these so-called “new” wonder drugs are normally available to Canadians soon after their develop- ment. Because of the structure of the Canadian drug industry—most firms are subsidiaries or branches of U.S. companies — U.S. patent laws affect Canadians as well. In the U.S. prices are set on the basis that the patent holders have a legal monopoly on the sale of the products. Canadian laws insist that drugs patents must be licensed to other companies under certain conditions. However a Cana- dian patent-holder, forced to grant a licence may withhold valuable infor- mation necessary to the production of a new drug development. Exorbitant Prices It is in the realm of patented won- der drugs that the likelihood of exor- bitant prices is greatest, the report states. Following the procedure set down in the anti-combines legislation the Justice Department has turned its report over to the Restrictive Trade Practices Commission. The commis- sion is circulating the report across the country and has reportedly said it will hold public hearings, The young student nurse was down- cast. The hospital doctor had broken their engagement. She told her girl- friend all about it. “My goodness!” exclaimed the friend, “He actually asked you to give him back all his presents?” “Not only that, sniffed the pretty “he sent me a bill for 27 visits.” * * * The aang “I suppose the baby is iE fond of you Father: ftacs of me! Why, he 3 sleeps all day when I’m not home and : stays up all night to enjoy my com- > pany.” * * “I was just thinking,” said the girl's little brother to the girl's suitor, “you come to see my sister so often, don’t You haye one of your own?” ca a. We * Catty girl at party: “Don’t you think looks terrible in that lowcut S toged as far as I can see.” * man” walked into a restaurant, “d the waiter two vitamin pills, him to ‘dissolve them in a bowl of clam chowder. After a long interval he asked why he hadn’t been served yet. “You'll get your soup, sir,” said the waiter, “as soon as we get the clams to lie down.” * * * Tourist — Is Ballpoint really the name of your pig? Farmer — No, that’s just his pen name. * * ‘ Friend (at funeral): hard to lose a wife Bereaved: Almost impossible. It must be * * * A campaign was waxing hot and heavy in a county down South: re- garding the local option of whether or not to have prohibition in the area. Several of the natives were sitting around a little crossroads store dis- cussing the matter one afternoon when a grizzled old man spoke up. “AJl this talk about prohibition is the bunk,” he declared flatly. “It was whiskey that saved my life once.” “Snake bite?” inquired one man. “Snake bite, nothing,” exclaimed the native. “I was digging a well and came up for a drink, and while I was gettin’ it, the well caved in.” MEMBERS of Local 1-405, IWA, from the West + Rese area attending one of the Weekend Institutes conducted by the Local with the aid of Regional Research & Education Director, Joe Miyazawa and Interior Regional Director, Clayton Walls. (Local 1-405 photo) Whats New For You .FLASH: Time to get up! Here’s an alarm clock that wakes you with light instead of noise. Works by flash- ing a beam of strong light at rapid intervals toward’s the sleeper’s face. U.S. manufacturer claims it will do the trick for even the most stubborn snoozer, but, just in case, an emer- gency buzzer goes off 5 min. later. * * * SHOE FABRIC for shoe uppers that handles like leather and can be lasted and cemented in the usual way, has been developed in the U.K. Avail- able in 17 fashion shades and varying textures. Material resists water, water stains and abrasion, maker claims. Can be sponged clean and polished. * * * SAFETY SHIRT: Chemical packet in inside pocket inflates shirt automatically when wearer falls into the water. Will support an adult up to 45 min., maker claims. Additional air fnay be added through a mouth valve. Smartly cut in shirt or vest styles for adults and children of all sizes. * * * PORTABLE GENERATOR, de- veloped in the U.S. weights only 82 Ib. and provides 1,500 watts of inter- mittent AC power. Has new idling control that saves up to 60% in fuel costs, maker says. Direct acting elec- tro-magnet has no moving parts. * * x NUCLEAR GAUGE: Small nu- clear thickness gauge, using beta radiation, has been developed in the U.S. for use in industrial labs and pilot plant operations. Only 22 in. long, new gauge accurately measures thicknesses of sheet materials up to 12 in. TE * FOR LEAKY HOSES: Coupling made of Zytel nylon resin for %-in. or 7/16-in. garden hose won’t break, leak or rust, it’s said. Can be used to replace broken or rusted metal coup- lings or inserted at leaky spots. Retail prices: 79c for Y%-in. size; 59c for 7/16 in. * * * OFFICE PAPER CUTTER for fast quantity cutting eliminates turn- ing of wheel to clamp and unclamp the paper. One motion clamps and cuts. But for safety, both hands must be used in operating — one on the clamp handle and the other on the blade handle. Table models come in three sizes. U.S. prices: $119, $269, 389 * * * STUTTERING HOE. developed in the U.K. can hoe 2,000 yd. of cab- bage, lettuce or beet in an hour, it’s claimed. Drawn by a tractor, the hoe “stutters” its way along two rows at a time. A man places a stick in front of each plant to be saved causing the hoe unit to rise out of the ground and swing to one side. Three men (one driving the tractor and a stick man for each row) can do the work of 12, manufacturer says. * * EVEN TAN is what you'll get from new ultra-violet ray machine soon to be available in Canada. Rea- son: you stand on a turntable that revolves once a minute. Comes in domestic, vending machine, an clinical models. The cost to the patient of a doctor’s prescription in Britain is 28 cents, regardless of its con- tents. year. penalty of fine, imprisonment or holt: collecting the facts required. Canadian Census Facts The 1961 Census begins Thursday, June 1. The bulk of counting is expect- |“ ed to be completed in cities in two weeks, and in rural areas in three weeks. x * * * * In the Middle Ages, censuses were taken to levy taxes and raise armies. But Canadian law forbids the use of census data for any such purposes. + * * * * Canada has the distinction of taking the first “modern” census. This was the Census of the Colony of New France in 1666, ordered by Louis XIV. It recorded a population of 3,215, compared with an expected 18,200,000 this 6. ke oe Answers given to the census taker are strictly confidential. Every census‘ taker is under oath not to reveal a single item about any individual, under * * #£ For the 1961 Census, cea, vl have 1,336 census commissioners and about 26,000 census takers. Each census taker will travel from door to door e& % & The census questions which will be asked are listed in a green leaflet being sent to every household in Canada during the last week of May. x * * * * You can Help Canada Count by leaving the answers to census questions with the person likely to be at home when the census taker calls. IWA 1-217 Savings, Broadway & Chemainus & District Prince e & Dist CREDIT UNION DIRECTORY IWA Credit Unions and other Credit Unions supported by IWA Local Unions in B.C. Alberni District Credit Union, oor Argyle Street, Port Alberni Quebec Streets, Vancouver 10 IWA (N. tab 2 sea Union, Room 21, Wes' Local 1- 118, nIWA (Victoria), 904 Gordon Street, Victoria Credit Union, Box 229, Leake Cowichan and District Credit Union, Lake Cowichan, B.C. Courtenay Credit Union, Box 952, Courtenay Duncan & saa sweat Galey Box 1717, Duncan 046 - 4th Avenue, Prince George Nanaimo rig Dietiict aint Union, 499 Wallace St., Ladysmith & District Credit Union, Box 154, Ladysmith, BC, United Labour Credit Union, 1475 East 43rd, Vancouver Salmon Arm Credit Union, Shuswap Ave., Salmon Arm, B.C. 774 Columbia Street, New hemainus Nanaimo Five-Cent Beer Possible A five-cent glass of beer is now possible, maybe, if the brewers are willing to consider the pock- et-books of thirsty customers. Research men have accomplish- ed a “breakthrough” on a con- tinuous flow process of malting. The new automated process will cut costs by more than 25%. It opens the way to total automation of beer production. The process has been in- stalled in a Toronto brewery. Malt produced from top-quality barley is fed into a self-contained, automatically operated machine from which it emerges as malt Malt is a key cost in beer produc- tion. No figures have been released to indicate the possible reduction in the crew of brewery workers. No More Pain? Electronics has added a new wea- pon to the armoury with which the medical men fight pain. Electric brain stimulation (ESB) gives hu- man patients immediate relief from pain. They “laugh out loud and actually enjoy themselves”. Experiments have shown that a carefully placed electrode in a cer- tain part of a rat’s brain “is more pleasurable to the rat than food, drink, sex, or any other reward in the world”. It is claimed that ESB can be used repeatedly without damage. There is no danger of addiction, as with most pain-killing drugs. It does not dull the mind, say the re- searchers. A leading authority has stated, “This immensely important scienti- fic development, like the develop- ment of atomic energy, has great potentialities for both good and evil. To fail to determine how ESB may affect mankind, and how mankind should control its use, may be just as perilous as our previous failure to pas and control nuclear devel- opmen US. Stati: & Seekers A New York firm called Gemsco has recently discovered to its sur- prise that it is using almost as much gold bullion thread to make blazer crests as it used to make officers’ braid during World War II. The reason is the crested blazer, the club button and the old school tie that symbolized “be- . longing” for the club men of Vic- toria, England have been taken up by Americans as status symbols for today. THE "MILL-RITE” WATSON'S No. 108 Lumber Glove Cut from new soft tan Pearl Mule Split leather. These gloves are reinforced with double sewn thumb strap and wrist patch for added strength. A B.C, Product Union Made by JOHN WATSON “LIMITED 127 EAST SECOND AVE. Vancouver, B.C.