National Laboratory

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IN THE MATTER OF NATIONAL LABORATORY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. li OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2900. Complaint, .Aug. 11,, 1936-Decision, Oct. 30, 1937 Where a corporation engaged In sale and distribution of its alleged "Nuga- Tone" tablet remedy for treatment of those suffering from diseases and ailments of the stomach, Intestines, and other organs, and in transporting and causing its said product to be transported in commerce among the several States, direct from its place of business to consumers in other States, to and tlJrough wholesale druggists for resale, and otherwise, in competition with those engaged in offer and sale in like commerce of compounds or Preparations for use in treatment of same or similar ailments and diseases; In advertising its said "Nuga-Tone" by radio and in periodicals and news- Papers and by mail- ( a) llepresented that it was a combination of bitter stomachic tonics, or a Valuable and effective alterative tonic, which might be taken over long Periods by anyone without harmful results, and constituted an effective remedy or cure for indigestion and stomach or intestinal ailments, and would uid digestion, relieve pains or discomfort following eating, increase the appetite, and permit one to eat anything; (b) llepresentcd that said "Nuga-Tone" removed the causes of aches and pains in the muscles, nerves, and bones, and gave new power and energy to the muscular and nervous system, and constituted an effective remedy or treatment for poor heart action and for loss of power and energy, which would Protect the body against the most serious diseases and stimulate and invigorate the entire system, and act directly on the vital organs, and make sick people strong and healthy and cause paleness to disappear, and produce normal sleep; and (c) llepresented, through use of word "Laboratory" in its corporate name, that It owned, operated, or controlled a laboratory, and made use of such statements on labels, cartons, etc., as "Distributed by" or "From" National I!'1 Laboratory, etc.;

nets being prcpat·atlou in question contained arsenic, corrosive sublimate and strychnln, and constituted dangerous composition, by reason of presence of Bald fatal poisons, which should only be taken under prescription of physician and which no good doctor would thus combine for any purpose, no warning against use for children was Included in connection with sale thereof nor that product should be taken under doctor's prescription, number of tablets which, as asserted thereon, could be taken at one time safely, would result, based on aggregate content of aforesaid poisons thus involved, Under accepted medical authority, in dosage for child far beyond accepted standard, and In fatui dosage under maximum suggested for adult, preparation had no such value and brought about no such effects as above set forth, but constituted "shot-gun" prescription, of type carefully avoided by modern medical profession, and product which could not be taken indefinitely Without harmful results, and dangerous mixture with its three aforesaid Complaint 2:3 F. T. C. futal poisons, presence of none of which was disclosed to purchaser, and It did not maintain, conduct, or operate a laboratory in connection with said preparation or have laboratory at its three-room place of business, or at any place:

With tendency and capacity to cause members of purchasing public to believe that said "Nuga-Tone" was harmless and might be taken with impunity and constituted valuable combination of bitter stomachic tonics apd preparation which was remedy or cure for, or would afford relief for, stomach and intestinal troubles and other human diseases and ailments, and relieve persons suffering therefrom as above indicated, and completely restore them to health, and with result that many members of public, acting under such erroneous beliefs induced by such various misrepresentations, purchased its said "Nuga-Tone," and with effect of unfairly diverting trade to it from competitors engaged in sale in interstate commerce of drugs, preparations and remedies which are truthfully adver· tised and represented and recommended for use in connection with treatment of the various diseases and ailments involved herein; to the sub· stantial injury of competition in commerce: Jleld, That such acts and practices were to the prejudice of the public and competitors and constituted unfair methods of competition. Before Mr. lV. W. Slteppard, trial examiner. J.fr. Marshall Morgan and Mr. T. H. Kennedy for the Commission. Newby dJ Burditt, of Chicago, Ill., for respondent. Complaint Pursuant to the provisions of an Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Com· mission, to define its powers and duties, and for other purposes," the Federal Trade Commission, having reason to believe that Na· tional Laboratory, a corporation, hereinafter referred to as respond· ent, has been and now is using unfair methods of competition in commerce as "commerce" is urfined in said. act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent National Laboratory is a corporation organized. under the laws of the State of Illinois, with its office and principal place of business located. at 767 Milwaukee Avenue, Chi· cago, State of Illinois.

Respond.cnt is now and for more than one year last past has been engaged. in the manufacture and. in the sale to wholesale druggists located in the various States of the United States other than in the State of Illinois, and. in the District of Columbia, of a remedy known as "N uga-Tone," designed by respondent for treatment of human beings suffering from diseases of the stomach, intestinal, and other organs. There is now and has been fo:r more than one year NATIONAL LABORATORY 1193 1191 Complaint last past a constant current of trade and commerce by said respondent in the aforesaid product, N uga-Tone, between and among the 'Various States of the United States and in the District of Columbia. In connection with the sale and distribution of its said product, "Nuga-Tone," respondent causes the same to be transported in interstate commerce from its place of business at Chicago, Ill., into and through States of the United States other than the State of Illinois to the vendee~ thereof at their respective points of location. In the ~course and conduct of its said business, respondent is and has been In substantial competition with other corporations and with partnerships and individuals engaged in the sale and distribution in commerce between and among the various States of the United States and in the District of Columbia, of remedies designed for the treatment of the stomach, digestive, and other organs of the human body. PAn. 2. In the course and conduct of its said business as described in paragraph 1 hereof, respondent has been and is now soliciting the sale of and selling its aforesaid remedy "Nuga-Tone" through the medium of radio, magazines, and newspaper advertising, and by mail. Sales are made direct to wholesale druggists. These in turn sen to the retail trade and in this way respondent's product, moving through the channels of commerce, reaches the consuming public. Said consuming public is informed of respondent's product "Nuga- Tone" principally through the medium of weekly broadcasts over a large Chicago station.

PAn. 3. In offering for sale and selling in interstate commerce its Product "Nuga-Tone," respondent, among others, has made the following statements and representations:

Use of term LABORATORY as part of the trade name. A valuable Alterative Tonic.

Stimulating Tonic. A combination of Bitter Stomachic tonics, .Alterative tonics, Intestinal tonics, and Stimulating Tonics, arranged in accord with Moul'rn Medical Science.

AA an .Alterative Tonic-aids in re-establishing a more healthy functioning In the processes of Nutrition.

nitter Stomachic Tonic-to increase the activity of the mucous membrane or the gastro-intestinal tract by increasing its tone--stimulating the appetite. Stimulating and increasing the tone of the general system. People who are weak or sickly should take NUGA-TONE • • • that lllakes you strong and healthy.

N'UGA-TONE has given millions of men and women in all parts of the world better health and greater strength.

It You have little appetite and what you eat causes distress in your stomach, or if you have pains in your stomach after eating take NUGA-TONE just a few days and notice how much better you will feel. Your appetite will be better, food will taste better. It will digest much easier and the paln and Complaint 25F.T.C.

distress in your stomach and intestines will disappear. There is no need to suffer from this ordinary stomach complaint if you take NUGA-TONE. Go to your druggist and get this wonderful remedy. When you are bothered with aches or pains, be sure to take NUGA-TONE. It removes the cause of aches and pains in the muscles, nerves and bones, and gives new power and energy to the muscular and nervous systems, and is a wonderful help to protect the body against more serious disease. If you are discouraged with lite, are weak, get tired easily; stomach does not function properly, nerves are unstrung and your previous eagerness bas disappeared-then use NUGA-TONE and you will again enjoy the pleasures of good health.

NUGA-TONE acts on the whole system-not only on the stomach, nerves, blood, appetite, etc.

Almost every man or woman, particularly those past middle age, need a tonic to keep their system in full activity. NUGA-TONE stimulates and in· vigorates your entire system. It acts as an aid to rundown vital organs, helping them to function as they were intended, and gives you power and energy of younger days. The worries of old age disappear and life again becomes a pleasure.

Are you troubled with being unable to sleep nights, which causes you to become nervous and irritable? Then take NUGA-TONE which is a wonderful and efficient remedy for the nervous system. It contains no opiate or hnbit-formirig drugs, is not habit forming. • • • Alter using NUGA-TONE I feel entirely well • • • I was su!· fering badly with indigestion, bad headache, poor appetite and could not sleep at night. I used various remedies and pills but they did not help me. After taking NUGA-TONE the condition of my ltealth improved, stomach became regulated, headaches stopped and now I have a good appetite and can sleep nights. NOW I MUST HAVE NUGA-TONE REGULARLY AS WITil· OUT IT I CANNOT LIVE.

You can keep taking it without harmful results. Normal sleep wlll again be possible and you will cease to be nervous or irritable.

If you are pale or without vigor you should start taking NUGA-TONE, tbe great health and body builder • • • your blood is probably like water. Dulld 1t up without delay or you may contract some more serious condition. NUGA-TONEJ contains a form of iron which is quic:kly absorbed by the system and is necessary in good red blood. Paleness will disappear, in its place will be a rosy complexion, Indicating a healthy blood condition. Strength and vigor will return to the pale and weak.

If you feel that your strength does not respond to your will, that you are weak and infirm, that life bas no value to you-it is best evidence that your organs do not function properly. No doubt you need a good tonic to e:Umnlate your organs to JJntural activity.

A guaranteed remedy which will bring back your old time strength and health is NUGA-TONE.

This remarlmble remedy acts directly tJpon your organ~limlnatlng the causes of your diHabllity.

If your appetite is poor nnd whnt you eat causes distress In your stomncb, or if you have pains In your stomach or intestines after entlng, headaches, dizzy spells or a weak ~<tomach-take NUGA-TONE just a few days and notice 110\\' NATIONAL LABORATORY 1195 1191 Complaint much better you will feel. Your appetite will be much better-food will taste better. It will digest much easier and the pain and distress In your stomach and Intestines will disappear. There Is no need to suffer from this ordinary stomach complaint if you take NUGA-TONE.

When you are troubled with indigestion, stomach or intestinal sluggishness, Poor heart action, nerves exhausted and all unstrung or lack of confidence in Yourself, remember NUGA-TONE is a speedy way of remedying these ms. It has been found that men and women suffering from general debility • • • are quickly aided by taking this unequaled remedy, NUGA-TONE • • • gets the stomach to function as It should. It is remarkable remedy for ridding the system of poisons which cause dizzy BPells, stomach pains due to poor digestion, headaches and similar aliments. NUGA-TONE acts directly upon your vital organs and stops the causes of your troubles.

It is a genuine red blood builder, .Almost immediately nervousness will ~;top. • NUGA-TONE will give wonderful results in only a few days • • • nervous troubles wlll disappear • • • No more bloating after eating; foul breath or sour stomach caused by improper digestion or poor elimination. You can eat anything that you want when you take NUGA-TONE. One of my customers returned from the late war In very poor health. I persuaded him to try NUGA-TONE nnd he did. Now he has rcgained his health and Is n strong, powerful man.

I was in a weak, rundown condition. Everything I ate hurt me. 1\ly father, having taken NUGA-'lone some years ago and being relieved of indigestion, advised me to try it. In so doing, I am completely rellcvcd • • • W. T. Vance, Union, Miss.

Gas and bloating In the stomach quickly disappear. NUGA-TONE contains the elements that are used by all good doctors tor correcting these troubles.

It is a doctor's own prpscriptlon.

Makes you strong nnd hcultby.

PAn. 4. In truth and in fuel the foregoing representations of respondent are false, deceptive, and misleading in the following, among other, particulars :

The therapeutic claims expressed in such advertising are false a.llllost in their entirety. . This product is not an efficient remedy or treatment for lost manhood, indigestion a.nd stomach troubles; nor will it make one strong and healthy;

This product is not of value as an a.lterative tonic; nor will it retnove the cause of aches a.nd pains in the muscles, nerves a.nd bones; This product does not give new power and energy to the muscular an<l nervous system; nor will it protect the body against more serious disease;

. This product will not cause the worries of old age to disappear and hfe to become a pleasure again;

1196 FEDERAL TRADE COl\:Il\IISSION DECISIONS Findings 25F. T. C.

This product is a potentially harmful character and particularly dangerous in the hands of lay users, which fact is not disclosed to the general purchasing public.

PAR. 5. Among the competitors of respondent referred to in paragraph 1 herein, there are those who sell and distribute in com· petition with respondent remedies designed for the treatment of stomach, intestinal, and other human ailments, and who advertise and represent their said products fairly and accurately. The above mentioned false and misleading representations in connection with the sale of respondent's said product have induced and do induce the consuming public to purchase said product under the erroneous belief that it is a remedy or cure for stomach and in· testinal troubles and other diseases and ailments of the human body, n.nd that the use of respondent's said product would relieve or com· pletely restore health to persons suffering from the aforesaid ail· ments or diseases. The marketing of respondent's said product is directly contrary to the interest of the public welfare, the consum· ing public has been and is being deceived and misled, trade is being and has been diverted to respondent from such competitors in inter· state commerce, and thereby substantial injury is done ami has been done by the respondent to competition in interstate commerce. PAR. 6. The acts and things above alleged to have been done and the false representations alleged to have been made by respondent are to the prejudice of the public and the competitors of respondent and constitute unfair methods of competition in commerce within the intent and meaning of Section 5 of an Act of Congress entitled "An Act to create a Federal Trade Commission, to define its powers nnd duties, and for other purposes," approved September 26, 1914. Rerort, FINDINGS As TO THE FACTs, AND OnuER Pursuant to the provisions of an Act of Congress approved Sep· tember 26, 1914, entitled "An Act to create a Federal Trade Com· mission, to define its powers and duties, and for other purposes," the Federal Trade Commission on August 14, 1936, issued and there· after served its original comphtint in this proceeding on National Laboratory, charging it with the use of unfair methods of competi· tion in commerce in violation of the provisions of said act. After the issuance of said complaint and the filing of respondent's answer thereto, testimony and other evidence in support of the allegations of the complaint were introduced by Marshall l\forgan and Thomas 11. Kenne<ly, attorneys for the Commission, before ,V. ,V. Sheppard, NATIONAL LABORATORY 1197 1191 Findings an examiner of the Commission theretofore duly designated by it, and in opposition to the allegations of the complaint by Newby & Burditt, attorneys for the respondent, and said testimony and other evidence were duly recorded and filed in the office of the Commission. Thereafter, the proceeding came on for final hearing before the Commission on the said complaint, the answer thereto, testimony and other evidence and briefs in support of the complaint r.;1d in opposition thereto; and the Commission having duly conf'ldered the same and being now fully advised in the premises, finds that this proceeding is in the interest of the public, and makes this its findings as to the facts and its conclusion drawn therefrom; FINDINGS AS TO THE FACTS P ARAGRAPII 1. The respondent is a corporation, organized, existing, and doing business under and by virtue of the laws of the State of Illinois, with its principal office and place of business located at 767 Milwaukee Avenue, in the city of Chicago. Respondent is now and for several years last past has been engaged in the business of selling and uistributing an alleged remeuy known as "Nuga-Tone," in tablet form, designed by respondent for treatment of human beings suf· fering from diseases and ailments of the stomach, intestines, and other organs.

• PAn. 2. In the course and conduct of its said business as described In paragraph 1 hereof, respondent, National Laboratory, in response to orders received, has offered its said product for sale and has sold and transported and caused the same to be transported in commerce among the several States of the United States direct from its aforesaid place of business in Chicago to consumers located at points in States of the United States other than the State of Illinois. In the course and conduct of such selling, respondent has been, and now is engaged in competition with corporations, firms, partnerships, and individuals, offering for sale and selling in like commerce, com- Pounds or preparations for use in the treatment of the same or similar ailments and diseases.

PAn, 3. Respondent, in connection with the sale and distribution of the aforementioned prouuct "Nuga-Tone," has advertised the same by radio, and in magazines and newspapers and by mail. Respondent sells direct to wholesale drug~ists who in turn sell to the retail trade, thus reaching the ultimate consumer and general public. ~ales are not limitcu to druggists or pharmacists, however, nor to hcensed physicians, surgeons, dentists, or veterinarians. Respondent l.lses pasteboard cartons which can be employed in addressing and Findings 25F.T.C.

mailing individual bottles of Nuga-Tone tablets. Respondent company has used the United States mail in distributing its product in interstate commerce, sending larger quantities by express or freight, or by parcel post.

Through the use of radio, magazines, newspapers, and mail, as aforesaid, respondent has advertised and represented its product Nuga-Tone as a valuable alterative tonic; a stimulating tonic; a combination of bitter stomachic tonics; as a bitter stomachic tonic in· creasing the activity of the mucous membrane of the gastro-intestinal tract; as an intestinal tonic; as aiding in establishing a more healthy functioning in the process of nutrition; as stimulating the appetite and the tone of the general system; as making the weak and sickly strong and healthy; as having :given better health and greater strength to millions of men and women in all parts of the world; as relieving stomach distress, i·emoving the causes of aches and pains in the muscles, nerves, and bones and giving new power and energy to the nervous system; bringing back the pleasures of good health to those who have been distressed with life, who are weak, get tired easily, whose stomach does not function properly, whose nerves are all unstrung and their "previous eagerness has disappeared"; as in· vigorating or acting upon the entire system, aiding run-down vital organs, helping them to function as they were intended, giving back "the power and energy of younger days"; causing the worries of old age to disappear and life to become a pleasure again; as a remedy for sleeplessness and irritability, toning the nervous system; as some· thing one can keep on taking without harmful results; as a remedy for those who are pale or without vigor and whose "blood is prob· ably like water"; as stimulating to natural activity the organs of those whose strength docs not respond to their will, who are weak and infirm, life having no value to them; as a remedy_ guaranteed to "bring back your old-time strength and health"; as a remedy for those troubled with indigestion, stomach or intestinal sluggishness, poor heart action, exhausted nerves and "lack of confidence in your· self"; as a remarkable remedy, ridding the system of poisons causing dizzy spells, stomach pains due to indigestion, and headaches; as being a genuine red blood builder; as eliminating bloating after eating, foul breath or sour stomach; and as enabling the patient to eat anything he wants.

PAn. 4. Each tablet of Nuga-Tone contains three deadly poisons, namely, arsenic trioxide, mercuric chloride, otherwise known as cor· rosive sublimate, an<l stryclmin sulphate. NATIONAL LABORATORY 1199 ll!Jl Findings Respondent's Nuga-Tone, the record discloses, is composed of the following ingredients:

Corrosive sublimate--------------------------------------Gr. %o Strychnin sulphate ____ .., _________________________________ " lko Arsenic 'l'rloxide _________________________________________ " ~o Reduced Iron-------------------------------------------- " Ih Extract Gentian __________________________________________ " lh Extract Cascara Sngrada--------------------------------- " ~.;, Extract Taraxacum-------------------------------·------- " lf1 Zinc Phosphide •• ----------------------------------------- " %o This formula has been used by respondent since about 1916. Arsenic Trioxide is a white odorless, tasteless powder used in the manufacture of pigments, glass, shot and bullets, insecticides, rat poison, cattle dip, weed killer; as a hide preservative; and in medicine being a violent irritant. The average dose of arseruc for medicinal use is given in Volume II of the Pharmacopoeia of the United States. ht 1/30 grain.

Mercuric Chloride, otherwise known as corrosive sublimatet is a white crystalline powder, very poisonous, variously used in the manufacture of calomel and other mercury compounds, and in medicine as a remedy for syphilis, rheumatism, and as an antiseptic. It is also used in the manufacture of various articles of commerce. The average dose as given by the United States Pharmacopoeia is 1/15 grain.

Strychnin sulphate is a hard white crystalline alkaloid, very bitter· in taste and very poisonous. It is used in medicine as a stimulant to the nervous system. The average dose of strychnin according to the United States Pharmacopoeia is 1/30 grain. The United States Pharmacopoeia in treating of arsenic, mercuric chloride, and strychnin carries the following identical warning as to each:

Caution • • • Extremely Poisonous On one sitle of the bottle in which the product Nuga-Tone is sold and delivered in interstate commerce to the consuming public Nuga- Tone is described as a "Stomachic Alterative and General Tonic" "' "' * containing eight active drugs, six of which are indorsed by the United States Pharmacopoeia and each tablet contains a full adult dose. On another of the four sides of the bottle under the heading, ''Directions for Taking," it is stated:

To obtain highest brnrficlal results, Nugn-Tone should be taken regularly for nt least 30 uays or longt>r. Take one Tablet three tlmt>s daily before or lifter eating, lio8121 1"-3!l-78 1200 FEDERAL TRADE CO.l\IMISSION DECISIONS Findings 25F.T. C.

Neither the label nor the carton discloses the ingredients of N uga- Tone. There is no indication on the label or elsewhere, that Nuga- Tone contains three deadly poisons I The preparation some years ago was sold with this wording on the bottle: Do not give to Children under 16 Years of Age. The directions at this time do not contain this warning nor do they suggest that N uga-Tone should be taken under the advice of a physician. Respondent in connection with the sale of Nuga-Tone has never made any representations or given any warning to the effect that the product should be taken under the direction of a physician. On the contrary, respondent has represented that one can keep on taking Nuga-Tone without harmful results. Each tablet contains %0 of a grain of strychnin, %0 of a grain of mercuric chloride, and ¥4,0 of a grain of arsenic and the person engaging in such self-medication has no way of knowing that he is taking these three poisons into his system.

r AR. 5. Bitters are only effective as such in liquid form and respondent's product is a tablet. Leading medical and pharmacological authorities treat "bitters" under the title or heading "Stomachics". Bitter, aromatic, and sharp drugs have been used since antiquity as "tonics" and in functional dyspepsias. They were supposed to increase the appetite and improve digestion, and thus favor nutrition. These are divided into two principal classes, "simple" and "aromatic." "Bitters" are always administered shortly before meals, it being conceivable that they act as as sort of "chemical dinner bell." Bitters are substances that are employed to give a bitter taste, the object of their administration being to improve the appetite. When the appetite is below normal, a strong stimulation of the taste buds will often restore it; and substances with a bitter taste that is not otherwise disagreeable, tend to act as stimulants to the taste buds. The bitter effect on the appetite is solely the local one on the taste buds. The effects of bitters depend on the taste. The value of a bitter, therefore, is not obtained if the bitter is hidden, as in capsules or coated pills, although this is often done. It is useless to administer bitters in the form of pills and tablets. If a bitter is put into a pill or capsule, a patient does not taste it and it does not produce the effect that a bitter is supposed to produce. Bitters have no me(Ucinal effect "except to the taste." Through the taste bitters stimulate; through the mouth may stimulate gastric secretion if one likes the bitters. The "taste buds" are found in the mouth and throat of human beings, the tongue, palate, tonsils, and fauces comprising important units. To affect the brush-like ends NATIONAL LABORATORY 1201 1191 Findings of the nerves of taste, which ramify in the taste buds, substances must be soluble. Bitters given after the meal are useless as such. Pharmacologists do not carry corrosive sublimate or arsenic in lists of simple, astringent or aromatic bitters, and strychnin is not so listed except when "well diluted."

PAR. 6. The various representations of the respondent in respect to the diseases, ailments and. conditions for which respondent claims Nuga-Tone to be a remedy or as affording relief or accomplishing certain stated results as hereinbefore related, were carefully considered in connection with the ingredients contained in N uga-Tone and in the light of a knowledge of medicine and the accepted methods of the treatment of such diseases, ailments and conditions. As a result of the testimony of competent medical authorities, findings are as follows:

N uga-Tone is a dangerous composition because of the corrosive sublimate, the strychnin and the arsenic. Arsenic, corrosive sublimate, and stryclmin are fatal poisons which should only be taken under the prescription of a physician and no good doctor would make this combination for any purpose.

Nuga-Tone contains one element, strychnin, that might have a stimulating action, but a dangerous stimulating action, for a specific depression. Strychnin increases the excitability and activity of the spinal cord and brain. Stryclmin is ordinarily given to patients under the care and observation of physicians. Strychnin increases 1he excitability of the spinal cord to the point of convulsions and death if taken in excess. Strychnin is a foreign substance and any amount of strychnin is an excessive <.lose unless there is a prior diagnosis by a physician that this poison will help. It should only be taken at the doctor's prescription when the situation specifically calls for it. Strychnin sulphate does not stimulate the gastric reflexes nor the appetite. It can be classed as a stimulant in that it t·aises the excitability of the spinal cord which is not desirable in the normal individual. Stryclmin sulphate does not aid digestion; it does not have any effect on the appetite. All that strychnin does is to increase the reflex excitability and a person who has excessive :eflex excitability will be harmed by it. Its use as a tonic must be tnterpreted in such a way as to understand that it will only act as a tonic if it happens to fit the case. No Doctor would give or would be foolish enough to prescribe strychnin as a stimulant to increase the flow of the gastric and biliary juices.

Arsenic, supposed under certain conditions in small amounts to stimulate the rate of production of red cells, is a dangerous drug ) 202 FEDERAL TRADE COMMISSION DECISIONS Findings 25F.T.O.

and can produce chronic poisoning. The arsenic in the composition would possess for the ordinary person the danger of chronic poisoning, which if it went too far would tend to impairment. Arsenic is a remedy that is used in syphilis and related conditions. Arsenic trioxide is not used extensively now for anything. It was formerly used by some in the hope that it would stimulate the red bone marrow, increase the production of red cells, improve the hair growth and the form of the skin. These were hopes and guesses of formerdays. There is no known effect that arsenic would have on eithergrowth or nutrition except in an injurious way. Arsenic is not used by any competent doctor in the treatment of blood cells or like conditions.

Corrosive sublimate is not a stimulant and Nuga-Tone as a whole is a dangerous composition because of the corrosive sublimate, the strychnin and arsenic, three fatal poisons. Nuga-Tone is liable to produce serious diseases because it contains these poisons, especially arsenic and corrosive sublimate, if used without discrimination and for a certain length of time. It is not customary for doctors in writing prescriptions to use three poisonous substances in one. To use a mixture like this is termed tho worst kind of malpractice. Taken as a whole Nuga-Tone must be regarded as a dangerous combination, and it would not rightly be described as a stimulating. tonic.

The cascara in Nuga-Tone might have a slight action on the bow£>1.,. Zinc is essentially an antiseptic. Zinc phosphide tends to increase the degree of dilation of blood vessels. It does not stimulate metabolism nor increase red blood cells, nor may it be used as a sedative for nerves. The iron might help an anemic condition. The only ingredient in the preparation that might affect the appetite is the gentian and it is doubtful whether it increases or has any real effect on the appetite. Extract of gentian docs increase the flow of saliva. but does not increase "the flow of gastric juice. The term "alterative" is not used in modern medicine at all, that is,. as pmcticed Ly modern doctors in the last decade or twenty-five years. It is an olcl term. An alterative was supposed to modify the activity of the alimentary canal, particularly the liver. A good many of the substances which were supposed to change tho action of the liver, the action of the alimentary canal, were called alteratives in the old days.

Nuga-Tone is not a valuable alterative tonic; is not a combination of bitter stomachic tonics, alterative tonics, intestinal tonics and stimulative tonics, arranged in accord with medical science; it does' NATIONAL LABORATORY 1203 1191 E'indings not aid in reestablishing a more healthy functioning in the process of nutrition; it is not effective in increasing the activity of the mucous membrane of the gastro-intestinal tract by increasing its tone or stimulating the appetite; it does not stimulate and increase the tone of the general system; weak and sickly people should not take it to make them strong and healthy; it is not a wonderful remedy and does not remove the cause of aches and pains in the muscles, nerves and bones; it docs not give new power and energy to the muscular and nervous systems; it is not a wonderful help to protect the body against more serious diseases. Nuga-Tone possesses no properties which would alleviate nervous conditions. Persons past middle age do not need a tonic of this description. N uga-Tone does not act as an aid to run-down vital organs, helping them to function as they were intended, nor give persons past middle age the power and energy of younger days. It does not aid in producing sleep; it is not a great body builder nor health builder; it will not make food digest more readily; will not cause pain and distress in the stomach to disappear; will not aid poor heart action, will not tend to relieve general debility; is not a remarkable remedy for ridding the system o£ poisons; is not a genuine red blood builder; will not cause gas and bloating in the stomach to disappear; does not contain the elements that are used by all good doctors for correcting the various troubles outlined hereinbefore and will not make one strong and healthy.

"Self-medication" cannot be approved at any time because it is harmful to the patient. * * * A patient harms himself by taking a medicine that may not relieve the cause of his condition, but actually aggravates it.

. PAn. 7. Respondent's product, by reason of the varied nature of lts ingredients and the numerous therapeutic claims made for it, qualifies under the heading of a "shot-gun" prescription. A "shotgun prescription" is defined as one containing many ingredients or ~eaturcs o£ which one is expected to prove efficacious. It contains Ingredients having various kinds o£ effects. If one might fit the <:ase another might not. Prescribing so many ingredients in one Prescription is stated by medical authority to be one of the worst rneclical practices. Our forefathers in medicine are stated to have done that as long as they did not understand the way in which medicine acteu but nowadays the medical profession very carefully avoids employing so many ingredients in one prescription. PAn. 8. Respondent's representations as to the harmless character of "Nuga-Tone" are deceptive, false, and misleading. In its adver- Findings 25F.T.C.

tismg matter respondent has represented that "you can keep on taking it without harmful result" and respondent in support of this representation, variously contends through the medium of a medical expert that Nuga-Tone may be taken safely two, three, or four times a day for two or three years with no harm at all resulting to a person; that it would do no harm to children in meJ.icinal doses; would not thus hurt a child above three years of age; that a chil<l four or five years of age could. take a full pill without harm; two or three doses would. not hurt such child. l\Iedical authority prescribes the dose of corrosive sublimate for a child up to three years old as 1/100 of a grain anJ. 1/75 of a grain for a child 5 years of age. A tablet of Nnga-Tone contains 1/60 of a grain. The dosage of strychnin for a child three to five years of age is 1/100 of a grain. A tablet of Nuga-Tone contains 1/60 of a grain of stryclmin. The dose of arsenic for a child three years of age is 1/150 of a grain and 1/100 of a grain for a child five years of age. Each table of Nnga- Tone contains 1/40 grain of arsenic, nearly four times the dose prescribed for child.rcn three years of age and more than double the dose suitable for children five years of age. The label on a bottle of Nuga-Tone contains no caution against the administering of the drug to children. Respondent in further support of its representation that one may keep taking its Nuga-Tone without harmful results also asserts through the medium of a meJ.ical expert that ten pills may be given to an adult at one dose "with perfect safety." In taking ten tablets at one time the adult would have in his system at the same time 1/6 grain of corrosive sublimate, 1/6 grain of strychnin and 1/4 grain of arsenic, in all 7/12 grains of three deadly poisons. Accepted medical authority is to the effect that 1/12 grain of stryclmin is a fatal dose.

PAR. 9. The respondent do('S not operate, conj.uct or maintain a laboratory. The bottle or container in \which Nuga-Tone is distributed in interstate commerce contains as a part of the label thereon the following language:

Distributed by National Laboratory Chicago, Ill. U. S. A.

The carton in which the bottle is kept contains the same wording and the so-called shipping carton contains language reaJ.ing: From National Laboratory 7G7 1\IIlwaulwc Ave., Chicago, Ill. U. S. A.

NATIONAL LABORATORY 1205 1191 Findings The directions enclosed with each bottle of Nuga-Tone, printed in ~several languages, carry the following in English: Distributed by National Laboratory, Chicago, Ill. U. S. A.

National Laboratory has been in business twenty-one years, selling the product Nuga-Tone during all that period from Chicago. The respondent's place of business is in the Security Bank Building, Milwaukee and Ogden Avenue, Chicago, occupying three rooms in such building. Respondent has no laboratory at such address; does not have a laboratory at any place. A laboratory was maintained by the late Dr. C. E. Cessna for a period of seven years prior to his death. Cessna was a doctor and compounded some prescriptions there. Some of the equipment still remains but it has not since been used.

At the time the complaint herein was issued, Nuga-Tone was being :manufactured for respondent by Parke, Davis & Company, of Detroit, Mich., shipped to respondent in bulk, packaged by respondent at its place of business in Chicago, and transported from there to respondent's various customers throughout the country. The product is at Present being manufactured for respondent by the Shores Company of Cedar Rapids, Iowa, and by them sent to respondent in Chicago, Where it is packaged and distributed.

The formula for Nuga-Tone was originated many years ago by the late Dr. Charles E. Cessna, father of the real and present owners of the formula. Dr. Cessna died in 1929, and since that time the business has been carried on by his sons. Since Dr. Cessna's death, there has been no doctor connected with respondent company, and respondent has not had anything that might be called a laboratory for many Years.

PAn. 10. The various statements and representations made by respondent, througl.t the medium of radio, magazines, newspapers, and by mail, as set forth and enumerated in paragraph 3 herein, in selling and offerino- for sale its product "Nurra-Tone" in the resr)ec-t" b 0 IVe states of the United States, were and are, as shown in para- ~raphs 5 and 6 herein, false, deceptive and misleading. Nuga-Tone Is not a valuable alterative tonic, nor a combination of bitter stolllachic tonics, alterative tonics and stimulating tonics arrange.d in accotd with medical science. Nuga-'lone does not provide a remedy for or prove effective in treating or relieving the diseases, ailments and conditions set forth in paragraph 3 hereof. Nuga-'lone is not a ProdilCt one can keep on taking without harmful results. On the contrary, Nuga-Tone is a dangerous mixture containing three fatal poi- Conclusion 25F.T.C.

sons, the presence of none of which is disclosed by respondent to the purchaser of said product. Respondent does not maintain, conduct or operate a laboratory in connection with the preparation of N uga- Tone for sale.

PAR. 11. There are among the competitors of respondent as referred to hereinbefore, corporations, partnerships, firms, and persons who are engaged in the sale of preparations which are recommended for use in the treatment of such diseases, ailments, or conditions as those mentioned by respondent in its advertising but who truthfully represent their products and the therapeutic value which may be attributed to them, and honestly vend the same. PAR. 12. The use of the aforesaid false and misleading representations and practices on the part of respondent in the sale and offering for sale of its product known and designated as "Nuga-Tone" has had, and now has, the tendency and capacity to cause members of the purchasing public to form the erroneous beliefs that respondent's said product Nuga-Tone is harmless, and may be taken with impunity, is a valuable combination of Bitter Stomachic Tonics, and is a rem· edy or cure for or will afford relief for stomach and intestinal troubles and other diseases and ailments of the human body, and that the use of respondent's said product will relieve persons suffering from the aforesaid diseases, ailments and conditions and completely restore them to health. Acting under such erroneous beliefs, induced by the various misrepresentations of the respondent as herein detailed, many of said members of the public have purchased respondent's product "Nuga-Tone." As a result the aforesaid representations and practices on the part of respondent have and have had the capacity and tendency to unfairly divert trade to respondent from competitors engaged in selling in interstate commerce, drugs, preparations and remedies which are truthfully advertised and represented and which are recommended for use in connection with the treatment of the various diseases and ailments enumerated herein. Thereby substantial injury has been done, and is being done, by respondent to competition in commerce among and between the various States of the United States and in the District of Columbia.

CONCLUSION The aforesaid acts and practices of the respondent, National Laboratory, are to the prejudice of the public and of respondent's competitors, and constitute unfair methods of competition in com· merce, within the intent and meaning of Section 5 of an Act of Congress, approved September 26, 1914, entitled "An Act to create a Fed- NATIONAL LABORATORY 1207 • 1191 Order eral Trade Commission, to define its powers and duties, and for other purposes."

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission, upon the complaint of the Commission, the answer of respondent thereto, testimony and other evidence in support of the allegations of the said complaint and in opposition thereto, taken before ,V. ,V, Sheppard, an examiner of the Commission theretofore duly designated by it, and briefs filed herein, and the Commission having made its findings as to the facts and its conclusion that said respondent has violated the provisions of an Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and ior other purposes."

It is ordered, That the said respondent, National Laboratory, a corporation, its officers, servants, employees, or agents, individual or corporate, in connection with the offering for sale, sale and distribution in interstate commerce or in the District of Columbia, of a Pharmaceutical preparation in tablet or other form, designated as ~'N uga-Tone," or any other preparation of substantially the same Ingredients sold under that name or under any other name, legend or title, do forthwith cease and desist from: 1. Representing it is a combination of Ditter Stomachic Tonics or a valuable and effective alterative tonic and may be taken over long periods by any one without harmful results; 2. Representing it is an effective remedy or cure for indigestion and stomach or intestinal ailments and will aid digestion, relieve Pains or discomfort following eating, increase the appetite and permit one to eat anything;

3. Representing it removes the causes of aches and pains in the muscles, nerves and bones, and gives new power and energy to the muscular and nervous system; . 4. Representing it is an effective remedy or treatment for poor heart action and for loss of power and energy; . 5. Representing it will protect the body against the more serious diseases, stimulate and invigorate the entire system and act directly on the vital orO'ans · 6. Representing0 'it will make sick people strong and healthy, <'nuse paleness to disappear and. produce normal sleep; 7. Representing, through the use of the word "Laboratory" in its corporate name, or in any other manner, ?r through the use of any 1208 FEDERAL TRADE COMl\IISSION DECISIONS • Order 25F. T. C.

other word of similar import and meaning, or through any other means or device, that it owns, operates or controls a laboratory until and unless it actually owns and operates or directly and absolutely controls a laboratory wherein said preparation is actually manufactured by it.

It is further ordel•ed, That the respondent shall, within 60 days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with this order.

SHEFFORD CHEESE COMPANY, INC. 1209 Complaint