The Price They Paid

The Veterans Administration has long known that artificial legs which Government orthopedic shops made for $62 were being sold by private firms for as much as $450. When the Administration tried to get lower prices through competitive bids, it often got identical bids from all members of the Association of Limb Manufacturers of America, which makes over 80% of the nation's artificial limbs and 90% of the parts.*

Last week the Department of Justice did something about this. It had the A.L.M.A., 45 member firms, and 34 individuals indicted under the antitrust laws. The charge: conspiring to fix high prices for artificial limbs, prevent competition.

Most servicemen amputees (about 17,000 to date) get their artificial limbs from A.L.M.A. members. The Army fits them only with temporary appliances before discharge. Then the veteran gets a permanent limb, paid for by the Veterans Administration, from a private shop.

The Administration once tried to make all of its own limbs (the few shops it has now are only yardsticks). But the A.L.M.A. talked this project down. It argued that Government manufacture of limbs would destroy free enterprise and inventive genius.

* For other troubles of the Veterans Administration, see NATIONAL AFFAIRS.

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