The Harvard Coop decided this week to continue giving Coop members a rebate on drugs charged at Chester Baker Pharmacy, despite allegations that the store's prices are high and Baker's refusal to advertise the rebate policy.

Nancy Glimcher '74, chairman of a Coop committee which is investigating Baker Drugs, recommended at the Coop Board of Directors meeting on Wednesday to continue the rebate policy with Baker Drugs temporarily.

The Coop's investigation of Baker was sparked by the release last Spring of a drug price survey conducted under the auspices of University Health Services. The survey showed that the prices of some drugs were three times higher at Chester Baker and five other pharmacies near Harvard Square, than at outlying drug stores.

"We're satisfied with Baker's price level," Glimcher said yesterday. Howard W. Davis, Coop General Manager, also said that Baker's prices were as reasonable or more reasonable that other pharmacies in the Square.

Glimcher said that the Coop would not discontinue its arrangement with Baker because of its prices. "The problem has been that Coop members are unaware of the policy," she said.

"The owner of Chester Baker told us that if the advertised the charge rebate with the Coop, he would lose the cash sales of some of his regular customers," Glimcher said. Chester Baker now gives the Coop 15 per cent of each sets charged with a Coop card.

A druggist at Baker yesterday refused to comment on the pharmacy's advertising policy. The owner was unavailable for comment.

Glimcher said that the Coop will not make a final decision about Baker Pharmacy for at least another mouth