The opinion of the court was delivered by: Mercer, Chief Judge.
This cause coming on to be heard on the government's
petition for order to show cause why the Schlicksup Drug
Company, Inc., the defendant herein, should not be punished
for criminal contempt, and the Court having heard the evidence
submitted thereon by the parties hereto, and having examined
the written arguments and briefs of counsel, and being now
fully advised in the premises, finds as follows:
1. Defendant, Schlicksup Drug Company, Inc., is a
corporation under the laws of the State of Illinois, and is
and has been continuously since 1951 engaged at Peoria,
Illinois, in the District and Division aforesaid, in the
business of manufacturing, preparing, packing, distributing,
and selling drug products.
2. Defendant has been continuously since 1951 and is now
introducing and delivering for introduction and causing to be
introduced and delivered for introduction into interstate
commerce at Peoria, Illinois, certain of said drug products.
3. On October 21, 1953, this Court entered an order for
temporary injunction enjoining defendant from directly or
indirectly introducing or causing to be introduced, or
delivering or causing to be delivered, for introduction into
interstate commerce, at and from Peoria, Illinois, in
violation of Section 331(a) of Title 21 U.S.C.A., articles of
drugs adulterated within the meaning of Section 351(c) of said
Title, because their strength differs from that which they are
represented to possess and/or misbranded within the meaning of
Section 352(a) of said Title because of false and misleading
statements in the labeling of said drug with respect to the
quantity of ingredients contained in said article.
4. Said temporary injunction was based on the Court's
(a) Much of the equipment used by the defendant in the
manufacture and preparation of drug products was inadequate,
unsuitable, in a poor state of repair, and inaccurate;
(b) There was laxity in the control of the identification,
analysis, and formulas in the preparation of the firm's drug
(c) The deficiencies found in several finished products
which were shipped in interstate commerce resulted from the
inadequate manufacturing methods.
5. Said temporary injunction remained in full force and
effect throughout the years 1956 and 1957.
6. The president and responsible managerial personnel of the
Schlicksup Drug Company, Inc., had complete knowledge of the
terms of said injunction from the time of its issuance.
7. Each of the products described in government's petition
for order to show cause, to wit, Dapco-S, Double Hyatal,
Douchett Powder, Vee-6, and Dumate are articles intended for
use in the diagnosis, cure, mitigation, treatment or
prevention of diseases in man, or intended to affect the
structure or function of the body of man.
8. The above-described products were introduced into
interstate commerce by the defendant company between February
and November of 1957.
9. The product, "Dapco-S," described in paragraph 3(a) of
the government's petition, was 35 percent deficient in the
amount of dextroamphetamine sulfate declared on its label when
introduced into interstate commerce by defendant.
10. The label on the product, "Double Hyatal," as described
in paragraph 3(b) of government's petition, states that each
tablet supplies two complete doses. However, when introduced
into interstate commerce by defendant, this product would
release only one dose while in the human digestive system. The
failure of one dose to be released is equivalent to a
deficiency of 50 ...