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C02D' IDE?rTIAL REPORT TEE COUNCIL FOR Z0PACCO RES£ARCH - U.S.A. June 8, 1955 _ Attendance Robert B. Walker Cyril F. Eetsko Janet Brown Addlson Yersan Albert J. Clay Paul D. GoddBrd W. T. Reed Jr. Brooks George Jonathan W. Old Jr. Frederick P. Eass Morgnn J. Cran.--- John Russell Joseph F. fw..1'-An 3rd Paul D. S13ith Bovran Gray Henry H. Ram M. Peter Schveitzer Jaz:e s E. i+'ood George V. Allen T. V. Eartnett ChB.ndler H. Kibbee K. T. Hoyt Sir.on F. O'Shea Dr. C. C. Little Dr. Robert C. Eockett 7HIS DOCUMENT SUBIECT 10 AUG. ?'. 1985 NON •DISSEMINATION ORDER IN ROGERS AND OUKE CASES. The AWerican Tobacco Cocpary n w w ~ w w w w Brovn & Williaason Tobacco Corporatioa Burley Auction Warehouse Associatioa Bia'ley Stabilization Corporation Larus & Brother Company, Inc. w w n n n Liggett & Myers Tobacco Co. w n tl w w P. Lorillard C=pa.ny, Inc. n w n n Philip Morris, Inc. w n n R. J. Reynolds Tobacco CoWpB.ny w n 1/ /1 /1 Peter J. Schweitzer Division Stephano Brothers, Inc. The Tobacco Institute, Inc. Cha L-~en Treasurer Executive Director Assistant to Executive Director ScientiSic Director Associate Scientific Disector 1. Mr. Eartnett opened the meeting, and velcor_ed Mr. George V. A11en, President of The Tobacco Institute, Inc., as a visitor. 2. The Chair~an stated that the report of the Msrch 5, 1964 Council meet:n7 ^ had been sent to all ae- .bers. It was u*+an1 nously agreed to dispense with the reading of the report. The Chaiimen appointed the Executive Director to act as Secretasy of the meeting. ~. The Chairsan expressed the deep regret of The Council at the passing of txo of its associates, Zach Toms and J. B. Hutson. He also reported that the Scientific Adv1sory Board had sustained a great loss in the death of v:. E. B. Wilson, vho had served with great dlstinction on the Board since 1954. CTR CONFIDENTIAL: MINNESOTA CTR HN 004007 "- TOBACCO LITIGATION

1985 NDN-DISSEMINATtON ORDER k_. Tbe Chairman reported that the Executive Coxmittee ba.d;K.E~ UKE CASES. held September 10, 196L, agreed to an increase in the budget for grants- in-aid 1Y= $1,000,000 in 1954 to $1,500,000 in 1965. The Executive Coraittee also approved an aazinistrative budget of $525,000. The Council uraairous],y approved the action of the Executive Ca=ittee in setting a 1965 budget totaling $2,025,000. (Attachm ent rh shovs the 1965 budget in detail co=pa: ed to the 1964 budget and actual expenditures.•) It vas pointed out that, althcuyh moving costs of some $21,000 had not been budgeted in 1964, they had been absorbed nevertheless. Attachment J2 vas presented by the Executive Director,'vho described it as being self-expl.r.natory and merely a review from the beginning of the organization, by years, of the money received from contributors, the budget against which it vas drawn and total expenditures for a11 purposes. ~. The Executive Director reported that the Scientific Advisory Board bad approved grants-in-aid avards totaling $2,018,278 since the last meetirr, of The Council on llerch 5, 1964. The Council unaninous7,y approved new grants in the amount of $2,018,278. This brings total awards since the inception o: the program through Aiay 15, 1965 to $8,127,430. 6. The Executive Director reviewed steps taken to establish a Retirement Plan for The Council's eligible employees under directions provided by The Council at its meeting on I/Arch 5, 1964. As a result: a. It was reported that a Deferred Paynent Plan has been established, effective February 1, 1964, for Kenneth Austin due to the fact that be does not meet the age qualificatiors of the Retirement Plan. It provides for annual defe_:ed cot-j>ensation equivalent to 15% of base pay. b. Legn,1 counsel for The Council has drafted a Retirement Plan retro- active to February 1, 1964. The Plan has been approved by the Executive Co =ittee and sub_ltted to the U. S. Internal Revenue Service for qualification and exe=ption from taxation under Sections 401 and ;01 of the Internal Revenue Code of 1954. A Trust Agreement has been signed and delivered to First National City Bank in order to qualify with I.R.S. requirements. Tne Chairman has appointed a Retirement Plan Co-ittee composed of Chnndler H. Kibbee, Cyril F. Hetsko and Addison Yea-"an. It vas pointed out that The Council's 1965 budget carries an overestimate "provision for retirer-ent" due to the withdrawal of the Chairman from participation in the Deferred Payment Plan. In order for the Trustee to effectuate the Retirement Plan, the following two resolutions were proposed and adopted Am+{*+{*~usly: 1. RESOLVED, that the action of,the Executive Coaaaittee on December 18, 1964 authorizing the Chairma n and Executive Director to execute v:th First National City Bank, and to deliver, a Retirement Plan L-Ust Agreement and the execution and delivery by the'Chair.nn and the Executive Director, pursuant thereto, of the Trust Agreement dated as of February 1, 1;~64, hereby are in a11 respects verified and aFFroved. CIR 6413 ,CQSt(UEM1IYAL: N.IRNtSOTA r,,,.,F,,, ,, ~, , 004006 1 1C1F~ACCU I177GP.i1Jt ~ ~ ~ ~~'~ :

THIS DOCUMENT SUBJECT TO AUG. :' - 3 - . 1985 NON•DISSEMINATION ORDER IN ROGERS AND DUKE CASES. 2. RESOLVID, that the action of the Chairass.a and Executive Director k executing and delivering to the First National City P,asilc an agreement dated Yjay 4, 1965 providing for payrsent of the baak's fees as Trustee of the Retirement Plan Z-ust is hereby ratified and approved.. 3. The Executive Director reported that the Internal Revenue Service has requested various minor amendmenta to the Retirement Plan. He therefore asked for the adoption of a resolution which vould grant the Executive Comittee the power to anend the Retirement Plan by a sse.jority vote of its meabera. The Council ++*unim+usly a.dopted the folloving resolution: ' RESOLVED, that Section 9.01 of the Retirement Plan for Fh:ployees of aie Council for Tobacco Research - U.S.A. be and it hereby is amended effective as of Febnlary 1, 1964, by changing the period at the er3 to a co-a and adrling thereafter the following: "except that any amendnent may be adopted by majority vote of the me~bera of the Executive Coazaittee of the Fmployer." • The section of the Retirement Plan amended by this resolution, as approved by the corporate me~bers, xill read as follows: 9.01 The Employer expects the Plan to be permanent, but reserves the right to amend, suspend or teradnate the Plan at azy ti.^.e, provided that no such aaendnent, suspension or termination aha11 adve_rsely affect ary right vested hereunder. Any such anendnent, suspension or te_r=ination rsust be approved by the affirr.ative vote of a aajoz-ity or the corporate members of the E~=loyerLr._7 t except that a.ny anends.e.^.t rav be adopted by cajoritv vote of the =e=bers of the t".cecutive Co.=.ittee of the B=ployer. Copies of the Retirement Plan in its finally approved form vill be se_~t to each of the mezabers. 8. The Executive Director reported on the adainistration and activities of The Council. Among the points he covered were: The reorganization of The Council and the supplementing of its staff, which took place in the first half of 1964, had been completed with a ninimum of complication and no adverse publicity. The aervices of Dr. Vincent F. Lisanti have been obtained as a pa.-t-ti=e assistant for Dr. Robert Hockett. He is now devoting 604p of his tire to The Council. It is possible that be aay become a full-time eszployee later this year. -- The search for a statistic.ian is continuing and, pending the employment of a full-tipe statistician, a.-rangements have been made to have statistical work done for The Council by competent people on a consulting basis. In August 1964, The Council was held exempt from federal income tax, dating back to its inception in 1954 as the Z'ZFtC. This exe-,Iption comes ur.der the provisions of the Internal Revenue Code Section 501(c)(6). C T R 6414 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATIO N CT t t~ ~,{( Il'F 004009

THIS DOCUMENT SUBJECT TO AUG. 20, The Annual Re 1985 NON DISSEMINdATIOhN 0 QER port for 1964-65 is in the process of, ~}o ~ lJ be issued this ausmer, which is approxisately one year Yr~~i=t~e ~ .. Distribution siailar to that of past years is anticipated totaling approxi- tntel,jr 25,000 copies, some 13,000 of which go to doctors whose specialties migbt involve a concern vith mstters regarding tobacco use and health. FSctensive distribution is also planned to the press and other news media. During 1964 and early 1965, congressional testimony was prepared by Drs. Little and Hockett and a coe:plete description of The Council's activities va.s filed in vritten fora vith both House and Senate coffiaittees in connection vith cigarette labeling legislation. The literature research department of The Council continues to aonitor, abstract and excerpt more than 3,000 medical and scientific publications for tobacco and health references. It has provided a wealth of source mate_rial for grantees, the AMA-FPF Co=ittee for Research on Tobacco and Health, T^.:e Tobacco Institute and others. A scientific exhibit continues to be displayed at various medical and public health meetings under the direction of Dr. J. Y.. H*ady. A new exhibit is being prepared which vill supplement the present one and be designed more specifically for medical meetings. Liaison has been maintained with the AYA-ERF Co=ittee for Research on Tobacco and Eealth. While no effort is nade to co=pe.re scientific judg"..e:.ts, it is hoped that a aSnimin of duplication and overlapping of efforts will result froa continued discussions. -- Liaison is also maintained with the Tobacco Research Council in England, Wissenschaftliche Forschungsstelle in Germe•n,y and other inte_,national groups studying tobacco and health. The Council was named as a defendant in a law suit brought by tA--. Andrew }t. Fine Jr., plaintiff, along with leading cigarette manufacturers, The Tobacco Institute, Inc. and Hill and Knowlton, Inc. The law fira of Clark, Carr & Ellis has been retained to represent The Council in this rE:.ter. ~. The Scientific Director, Dr. Little, discussed the progress of the reseesch program during the previous year. He stated that the industry continued to make a very real contribution to tobacco and health research. He noted that the Scientific Adviaory Board, in recognition of the prcuth of the grants-in-aid program, is giving careful consideration to where, how and if its progran should be re-cast. He pointed out the difficulty in establishing specific finrsicial guidelines for this type of program, but fel't that the Board had voluntarily =ade great strides in this dir ection as indicated by its budget request for 1965. He told The Council that the established success of the grants-in-aid program encouraged him and the scientific staff of The Council to consider expanding the inspiration and initiation of research projects in order to fill gaps in information or to achieve certain specific rese°s-ch goals which are not satisfied through the process of voluntary applications for grants-in-aid by individual investigstcrs. He explained, however, that any such projects would be handled just as a.~.~• other grant-in-aid -- through the approval of the Scientific Advisory Boa--05. CTR 6415 CONFIDENTIAL: MINN6SOTA '-TOBACCO LITIGATIO ~'~ ~ ~ ~_~ `~ ~,~~. i 0040 ~ ~„ N L

5 JZAJ Itvit•VIJJCinlnnllvit vn.i-n IN ROGERS AND UKE CASES. Dr. Little reported that during 1965, one of these ataff-initiated projects was authorized by the Board with the award of a grant for a five- year study to Dr. Freddy Eomburger of Bio-Research Consultants, Inc., Boston. Dr. 8omburger will study the effects of whole smoke exposure on experi.:.ental a•nipals vith special reference to the effects on mortaJ.ity of such exposure. Dr. Little also told The Council that the staff is currentl,y planning an inforanl conference on the bucca.l cavity and cancer of this site. From this, he is confident, projects can be initiated to study the buccal cavity. He said this particul.tir field of re•search has so far been largely ignored eWd that the buccal cavity is of considerable interest since it experiences ms,ximu9 acoke exposure during anoking aad since there is no epide=iologica_ evidence of a rise in cancer incidence of this site. He also outlined matters of interest to the scientific staff in the fields of epiderlolog,y and statistics, but indicated that additional scient_°ic consultation or conferences would take place before any special projects are form.Llated or initiated in this field. Be also told of staff interest in coordinating the collection of data relating to tobacco and health in statistical studies of tvins. Be said that plans are underway to sponsor a conference devoted to this latter problem, probably in cooperation with the University of Chicago. Dr. Little concluded by asking for endorsem:ent of the plan of staff- initiated research projects with the understanding that their approval would be obtained through regular Scientific Advisory Board channels, that they would be adrinistered as regular grants-in-aid but that thei-- fi:encizl sup_crt mny require extra funds above the budget agreed to by the Board. The opinicn of The Council was favorable to this general plan. 10. Dr. Robert C. Hockett, Associate Scientific Director, discussed various ~ research findings reported during the previous year. fie stated that recognition of the fact that smokers are not a randomized population has increased. This realization, he said, hqs encouraged research into the special characteristics of both s=kers, and of individuals who become subject to the various constitutional diseases that some statistical studies have associated with snoking. He told of the work of Dr. Caroline Bedell• Thomas, vhich has de~onstrsted a correlation between amoking, a fanilial history of cardiovascular disease, certain physiological factors and ce_-tain psychological characte.^istics. Be also told about studies going on in South Dakota, which are attey^pting to catalogue psychological patterns in young people for later correlation with their patterns of smoking behavior. All of these studies, Dr. Bockett said, atte=pt to evaluate the ways in which smokers may be a specially-selected rather than a randomized group, and to understand the significance of such selection in relation to the incidence of verious constitutional diseases. Dr. Bockett said that the studies being conducted unde_ the direction of Dr. Hor•.bur6er should help to deter=ine whether smoke exposure has any effect on the li: e span of randomized experi: ental anirsls. If s.:.o't.ino vere a significant environnent.al health factor, its effect should be obvious in such a randomized animal population. C T R 6416 ,CONFIDENTIAL: MINNESOTA "- TOBACCO LITIGAT10y ~°'~'~£~, ~~,-j 004011 [.r Fa~'~, t !!'t

-6- 1g85 NON•DISSEM{NATION ORDER IN ~OGERS AND = CASES. Dr. Eockett told Zhe Council of a recent conference held by the • Scientific Advisory Board to discuss methods of exposing experiaental a:.+-°,s to vbole snoke. $e also said that various physiolooical tests had been developed to a,ea.sure the actual sr.oke exposure obtained in experimental studies. • Be elao reported on recent studies vhich see-ed to suggest that liver darage increases the rate of carciaogenesis in experimenta.l Ani=als. Ee speculated that methods migSt be developed to prevent liver damage and -thereby reduce the incidence of cancer. Dr. Eockett also discussed various expe,-i=ents conducted vith germ- iree aniznl.s, and outlined so= of the implications of these atudies. 11. The Chairesaiz discussed vith The Council possible future meeting dates. It vas agreed that the next regular meeting shall be held in the second half of October 1965, at which ti:e the 1966 budget vi11 be presented. 12. The meeting ves adjou.~-ned. atts. (2) CONFiDENTUL: MINNESOTA ~~"~ 0(~ f., „ r.,C.~(~,~~,r-~ TOBACCO LITIGATIO ~, ~ ~ ~,,,,~,,,~ I"' ,, ,~ , ' L.N

i(li COUIJCII. FOR 101L1CC0 IZF: iEARCIi - U.S.A. A'ii.*-.C:i::;i: r „'I ~ ~ 1S4; 1964 1r,D i Dudj•ct Dudgct Exparli lurcc ~ A --~ ~ :.CIk7rrIFIC ADVI:;ORY BOARD ~ ~16 35,000 11o,2o5 ~ ~ v ~ ADl•m1ISTRATION ,~y o b Salary: Chairman, Executive Director & Staff 72,000 71,069 Expenses r 0 10,000 9,550 y Salary: Scientific Director & StafS 95,00o 8o,7o7 ~ Expenses 10,000 ~- Services: Administrative & Other Provision for Retirement w 73,000 40 000 - 75,892 24,675 ~ 06 TOTAI. ~ : 30~000 ~,5~ 33 302,~ ~ ~ OFFICE E):PE?ISES Rent & Facilities 39,000 39,000 32,135 U Telephone & Telegraph 61000 61694 Messenger, Postage & Expense 3,000 2, 81; 5 Stationery & Supplies 4.4000 4,391, Depreciation 1,000 8147 Insurance 10,000 9,283 Amortization 1 000 26 TOTAL b4,0 109,000 _ 57,12~+ OUTSIDE SERVICES PrintinQ & Reproducing 31,000 28,250 Special Reports & Services 5 000 ' ' 3 766 TOTAL 000 36 , 32 6 .,PECIAL SERVICES & CONTD+IGENCIF.:3 85,000 75,000 77,100 AQ SCELWIEOUs 25,000 9,068 < FURitITURE, FIXTURES & LEISEIIOLD IMPROYEMENl'S 17,803 ~. oz ToTnT. 525,000 592,500 95~,209 z E:, Z < 5F GRANTS (starting calendar year 1964) 1,500,000 1,000,000 1 194 01 GRAND ZCYrAI. $2,025,000 $1,592,500 $1,689,226 F' U z~ 'u< 06 o . -*-Includes legal fees, outside consultants and other contingencies. xF• U/

TMi4 DOCUIMENT SU~IECT TJ Au3. 2", 1985 NON•DISSEMINATION ORDER 1N RQGERS AND DUKE CASES, Received or Due troa Contributors . Budget Cash Expenditures 1954 1,2k0,672. 1,230,000. 746,342. 1955 801,000. 1,061,500• 953,163 • 1956 (1) 1,028,625. 994,ooo• 1,089,501. 1957 (2) 1,078,469• 1, 087, 5 00 • 1,060,673. 1958 88+,599• 882, 537 • 793,864. 1959 739,325. 812,150. 819,818. 1960 914,356• l,006,500. 1,003,895. 1961 1,092,875. 1,176,050. 1,00'-,378• 1962 1,137,625. 1,207,200. 1,055,662. 1963 1,352,805. 1,373,950. 1,356,395• 1964 1,624,813. 1,592,500. 1 713 926 •* 11, t9 95, 164. 1.2, 2 11)594,617. 1965 1,901,410. 2,025,000. $13,796,574. $14,448, 887 . (1) (2) Includi:,g, supplementa.ry $200,250.00 Lncludir.o supple=entazy $210,343.75 *_$115,242 provision for deferred coxpensation not ebovn. CTR 6419 .CONPIDENTIAL: MINNESOTA '\ TOBACCO LITIGATfON CTR [IN 004014