Drug Family

Shout Drug, Inc.! at the casual U. S. passerby and he will stare blankly, show no recognition. Yet Drug, Inc. products are familiar to almost every literate U. S. citizen. What do babies cry for but Fletcher's Castoria? What have physicians endorsed for 50 years but Phillips Milk of Magnesia? Of what should one accept no substitute but insist on the genuine but Bayer's Aspirin? What works while you sleep but Cascarets? These and many other household products belong to the Drug, Inc. family. So do 525 Liggett stores. So do 10,000 Rexall stores, which, though independently owned, market Drug, Inc.'s Rexall products. For Drug Inc. is a holding company for the United Drug Co. of Louis Kroh Liggett, combined with the onetime Sterling Products Co. (Feb. 1928) into the present drug chain which serves 25% of the U. S. public plus many a Canadian and Englishman.*

Last week Drug, Inc. announced the acquisition of Bristol-Myers Co. and 3-in-1 Oil Co. The Bristol-Myers addition put several more famed names in the Drug, Inc. family album. There is Sal Hepatica which clears the system promptly. There are Gastrogen Tablets, which relieve in digestion with none of the embarrassments of gas and rumbling. There is Ipana, the tooth paste you should use if you have Pink Tooth Brush. And, by a recent merger, there is Ingram 's, the cool shaving cream. Bristol-Myers showed a 1928 net income of $1,483,159 or with Ingram, of $1,609,191.

Comparable, in the drug field, to Stand ard Brands of General Foods in the food field. Drug, Inc. has back of it no J. P. Morgan, no E. F. Hutton. Its central name has been Louis K. Liggett, board chairman and founder of L. K. Liggett Co. and United Drug Co. Beginning his merchandising career as a traveling salesman for John Wanamaker, Mr. Liggett soon went into business for himself, making and selling headache powders that sold three for a quarter. The headache powders were not very successful, however, as people only had one headache at a time and were likely to lose or throw away the other two powders and thus become discontented with the product. Then Mr. Liggett became interested in Vinol, a proprietary medicine. Vinol, popular, was widely distributed but the various drug stores handling it started a price cutting war. Thereupon Mr. Liggett appointed one store in each locality as Vinol selling agent, ended the price war and began his chain formation. It was with 40 of his Vinol agents that he formed United Drug Co. in 1903.

Only setback to steady United Drug prosperity came in the post-War deflation in which Mr. Liggett's company was threatened with insolvency. At this date, however, he had many a Rexall agent throughout the country and these Rexall agents, loyal, raised $1,500,000, helped him through the deflation period. Last year Drug, Inc. had a net income (11 months to Dec. 31, 1928) of $12,014,000.

*Through 36 Liggett Canadian stores and the controlled Boots Pure Drug Co., Ltd., with 800 English stores.