Tobacco Documents Online

-k- s. Exhibit 3 vas prtiseated covering the financial status of the Special Projects J1uyd vbich, as explained at the January 27, 1967 meeting, is separate fr=:the gra.ats-ia-aid program. 10. It was decided to bold the aext anaual meeting of The Couacil oa January 30, 1970. , T}11S DOCUMEta SE~ NA ~~N 0 DER , lgg5 NON D IN RD~A11D0~~' C T R (; 4 3 5 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION CTR E!!''t 004030

- - - EC . ' ~~ SpB~ 0", ~~EM 0 ~ Trt}:(~ov:ccrr,Fott TOr~.~cc RESEn~tO>z-U.S.A. ~S 0~p E~nIT 1 ~ -0 ow Received or Due from Contributors audget Cash Expenditures 1954 1,240,672 1,230,000 746,342 1955 801,0W 1,D61,500 953,163 1956 (1) 1,028,625 994 ,000 1,089,501 1957 (2) 1,078,469 1,087,500 1,060,673 1958 884,599 882,537 793,864 1959 739,325 812,150 822,790 1960 914,356 1,oo6,500 1,003,096 1961 1,092,875 1,176,050 1,016,310 1962 1,137,625 1,207,200 1,C44,573 1963 1,352,805 1,373,950 1,349,483 1964 1,624,813 1,592,500 1,740,423 1965 1,901,410 2,025,000 1,731+,979 1966 1,954,150 2,020,000 1,792,103 1967 2,027,419 2,294,000 2,119,0188 1968 (Subject to final audit) 2,159,454 2,760,000(3) 2,377,021 $19,937,597 $21,522,887 $19,644,209(4) (1) Including supplementary $200,250.00. (2) Including supplementary $210,343.75. ~3 Including supplenentary graAt budget of $400,000.00. 4; 2(ot including the provision for deferred corspensation totaling 3146,275.CC CTR f;43G CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION CTR VIN 004031

Tn}: C'oLxcu. Fotz Toa.%c( RE.SE.%ucTi-U.S.A. . E)OMIT 2 BtMdARY OF GENWAL flAtD ACTIVITY 1S DOCUMEHT SUBIECI YO AUG. 20, ISSEMINATIONCRD1K I,ANDQ~ 10 ~ NON•D111 nudget Received or Due Fracs - Contributors Actual Grant Authorizationa , & Adm. Sxpenses Yees•End flmd Bclarc or (Defici-, Dec. 1953 to Dec. 31, 1963 10,831,387 10,270,351 10,149,241 121,110('- 1964 1,592,500 1,624,813 2,331,433 (585,510) 1965 2,025,000 1,901,410 1,68i+,251+ (368,354) 1966 2,020,000 1,954,150 1,972,624 (386,828) 1967 2,294,000 2,o27,k19(1) 2,037,116 (396,525) 1968 (subject to final audit) 2,760,000(2) 2,159,454 2,595,503 (832,5u+) $21,522,887 $19,937,597 00,770,171 ($832,574) Includes Liggett &"rs' share of deficit. (3) Includes supplementary gre.nt budget of $400,000. Does not include $280,062 of grants and fellovships authorized at Decelaber 31, 1963, peyable over periods comnencing subsequent to that date. These amouats are included in the 1964 figures. , 1 t' 1 Z 6437 CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION C!6 RHt't 004032

J Tn}: ('~>L'~crT. Fc»t Ton..cc RESr~:..aci[-U.S.~~. EXHIB:T N~S pOC~~~~A SPi~IAL PROJECTS 1Vl7D' SL2+~+iAR~ ~~yr ~oN.p1SSpN~~ AS oF JA2Pt1AR7 22, 1969 !k. ?und deficit, 12/31/67 '(107,807.23) Adjustments and cancellations of prior year authorizationa 66,0c,-8.77 1966 contributiona 315,600.00 Less: Projects authorized in 1968 (annexed) (210,177.00) ?~md Balance a63,711+.5t+* •-Represented as follovs: Cash in bank, 1/22/69 Accounts rtceiveble, 1/22/69 Less: Unexpended appropriatioss (See aasxxed. ) Subject to finel nudit. 65,514.54 13,200•00 (15,000.00) 453,714.5I+ CTR 6438 ,CONFIDENTIAL: MINNESOTA ~ TOBACCO LITIGATION ~,` T ~ ~"`~ ~ 004033

Tnr: C'0cacri. Fott TO1;.%CC RF-SEnnCn •U.S..,. Proposed 1969 Eudget SCIENTIFIC AWISOR7 BOARD 42,000 ADIIHISTRATIOH Salary: Executive Director & Staff Lxpenses Salary: Scientific Director & Staff Yxpenses Services: Ad:ainistrative & Other Provision for Retirement Psyroll Taxes OFF'ICE EJO'ENSES Rent & Facilities Telephone & Telegreph 73,000 10,000 15w 000 6o,00o 9,000 Idessenger, Postage & Expense 2,000 Stationery & Supplies 3,000 Depreciation 2,000 Insurance 12,000 Amortization 2,000 50,000 OVTSIDE SERYICES Printing, Reproducing, Subscriptions & Translations 40,000 Exhibits, Special Reports & Services 4 ~0 00 ,~ , ~ 44,000 WYI3iG Fx'E2tSE (Architect, Furnishings, etc. ) 13,000 (2)SPECLIL SEAYICES, C0hZ7N=CIZS & ~QSCELLAHE0IJ5 125,000 71.0,000. CRA2,TS S~ryplerent 2,500,000 $210 000 Less refunds of prior years ' CO1r'r1JLt:TIAL: MINNESOTA ~ j°~""['t t ~ N TOBACCO LITIGATIO .. F . DCmI^4 1968(1) Actual Lzpenditures 1968 Budget k1,633 35,000 •69,88+ 70,000 8,137 10,000 147,4a6 150,000 27 k99 , 28 000 , ~ ,356 77,000 6s4d+L 36, 000000 371,746 7 Coo 43,455 43,000 9,010 9,000 2,275 2,000 2,522 3,000 1,307 1,000 12,595 12,000 1,851 2 000 73,015 2,000 32,630 45,000 477 2,000 107 50,000 182,950 125,0Co 660, ooo 1,890,050(3) 1,700,000 400,000 #2,595,So3 $2,760,OOC (1) Subject to final audit. (2) Includes legal fees, outside consultants and other contingencies. (3) Scientific Advisory Board epprovals during calendar year 1968 1,c,09,146 1o pod) , 90,050 CTR 6439 }~..qj,.,~j j'~~j~j-0 -~s4 t i i t '~"r' ~

i 7}iIS DOCUMENT SUBJECT T0 AUG. 20, 1985 NON•DISSEMINATION ORDER CpUIDExTZAL REPORT IN ROGERS AND DUKE CASES. THE COUNCIL FOR TCBACCO RESF.IRCB - U.S .A. 74, January 31, 1969 Attendance Robert B. Walker Qrril F. F6etsko F. S. Royster E. P. Finch Addison 7eaman Paul D. Goddard J. 8. Caszpbell W. Brooks George J. E. Bennett Philip R. Grent Joseph F. CulLman 3rd Paul D. Smith A. R. Galloway Renry H. Ramm Will.iam S. Smith Jr. W. B. Bennett The American Tobacco Compe.rLy r w M r~ Brigbt Belt Warehouse Association, Inc. Brown & Williamson Tobacco Corporation w w w n ., Burley Stabilization Corporation The Laperial Tobacco Co., Ltd. Larus & Brother CompatLy, Inc. P. Lflrillard CccpaW, Inc. w w w „ Philip Horris, Incorporated rl R N R. J. Reynolds Tobecco Ceo:pen,y w w n n n w ~ w w w United States Tobacco Ccmpary Janet C. Brown Chandler H. lCibbee W.T.Hcrrt C. C. Little Robert C. Rockett J. Morrison Brady John H. lCreisher Vincent F. Lisanti Chadbourne, Parke, Whiteside & uoL'° Treasurer (Philip Morris, Incorporated) Executive Director Scientific Director Associate Scientific Director Associate Scientific Director Associate Scientific Director Scientific Associate 1. The Executive Director called the meeting to order and presented the report of The Council meeting held on January 24, 1968, explaining that it had been sent to those present with the call for the present meeting. The report was unanimously approved with the correction of a trpographical error under point 4, referring to grant awards through the calendar year 1968. Due to a typographical error, this was changed fros 1968 to 1967. 2. kr. Rartnett's letter submitting his resignation was read to those present. It was expl.ained that he is presently a pitient at The Johns Hopkins Hospital. His resignation was accepted and the Executive Director was asked to write him to that effect, expressing the deep gratitude of the members of The Council for his great service. CTR G432 CONFIDENTIAL: MINNESOTA CTR H~~ ~~~~~'. ~~ TOBACCO LITIGATION

THIS DONONED SSEMiNAHON ORDEROI 985 - J + IN G R AND DUKE C&01M %. Major evaluations of health and 'smoking have been based o`a •peinting • souse skins with artificia.lly prepared smoke condensates. But the relative desrees of cancer-forning response observed in these experiments neither parallel nor coincide with statistical data on the association of tobacco smoking asxf diseases in man. "S. Interpretation of certain lung tissue changes folloring sssoking as being unique or 'precancerous' is in dispute among pathologists. "6. Rapid progress is being made in the develop©ent of isproved methods for experiaental exposure of saimals to whole smoke for the sake,of better control and more accurate evaluation. "Tbe whole field of smoking and health requires a great deal more research and inforaution before a proper evaluation can be aade." 7. ILr. gockett gave a detailed description of specific research projects that are currently underway, results that are being obtained and plans for the future. 8. The Treasurer presented a resuae of the budget, cash expenditures and receipts from The Council's inception. (Exhibit 1.) This statement is presented, as it has been at each budget meeting of The Council, and is used to show where The Council stands on a cash basis. He also presented Exhibit 2, explaining that in 1964 The Council changed its books from a cash to an accrual basis, the reason being that as the grant progx-em grew and as deferred payments to erployees ac a-ued its uncollected receivables or deficit had to be recognized. Exhibit 2 shows the financial status of The Council on an accrual basis since that tine and indicates that, at the end of 1968, a deficit of $832,59k•G0 exists which, at some point in time, will have to be paid. He further stated that, through the years, total grant a%rthorizations and adaiaistrative expenses have been less than the amounts budgeted which would show as a surplus were The Council working on a cash basis but, since it has only drawn down each year the cash needed to operate, the uncollected receivable item in colur.n 4 shows as a deficit. The Executive Director presented a proposed 1969 budget (Exhibit b) with cozrparison to 1968 actual expenditures and 1968 budget. The budget, as prepared, vas approved. It was the sense of the meeting that the record should show that the staff of The Council is instructed to hold grant expenditures to the limit of the budget as approved. It vaa further resolved that it vas also the sense of the meeting that the Board recognizes the likelihood of a$2,500,000 grant budget for the calendar years 1970 and 1971. - Cash requirements for the year were discussed and the Executive Director stated that the 1968 contributions were at the rate of 7/16 of a cent per th.ousand tax-paid rtzoval,s in 1967. Re expected that, vbeti the final tax-paid removal figures were available, the contribution requireaents for 1969 should be at approximately 11/16 of a cent per thousand tax-paid removals in 1968. , CTR 6434 CONFIDENrT1AL: MINNESOTA TOBACCO LITIGATION CTR HN 004029

I - 2 - _ 1HJS DOCUMEHT.. SUBIECT ZQ-AUr 2n 1985 NON•DISSEMINATION ORDER IN OGERS AND UI CASES, ~. The Executive Director explained that The Council's lease at 633 Third Avenue expires Hay 1, 1969, and that he had requested authorization and had received approval from the Executive Coamittee for a budget not to exceed $57,000.00 annuslty for a new lease for approximately 5700 square feet with a five-year term.. He outlined the difficulties encountered in obtaining space with these specific.requireaents, and stated that he vould probably need greater latitude in mahing a coamitaent. It vaa resolved that, upon obtaining agreement from the Treasurer, the terms of the lease could be altered as needed. 4. Grant awards approved by the Scientific Advisory Board since The Council meeting - on Januazy 24, 1968, amounting to $1,890,050, were approved bringing the total grant awards to $13,662,050 through the calendar year 1968. It vas reported that these awards vere made to more than 350 different scientists in 200 institutions and that, resulting froa these grants, 688 scientific papers have been published. ~. In general discussion it was brought out that the Annual Report for 1966-67 vas late in production l,ast year. As a consequence, efforts are being made to speed up the 1967-68 Report for distribution by mid-year. The Council continues to conduct a variety of routine services, for example, liaison with the AMA-ERF C-ittee for Research on Tobacco and Health, the Tobacco Research Council in England, the Wissenschaftliche Forschungsatelle in Germany, and other international groups studying tobacco and health. It continues to cover medical and rcientific meetings and presents an exhibit of its activities at aany of these meetings. It carries on various industry and public information services. The Council Library continues to research the scientific literature and scan, abstract and excerpt from more tha.n 3,000 medical and scientific publications. These are indexed and catalogued as source material as needed. 6. ar. Little reported on The Council's scientific program, and explained that vithin the Scientific Advisory Board a PlanIIi:g Committee had been established for the purpose of refiaing the present grant program and developing specific research projects which xill be aimed directly at fil.ling gaps in knowledge by greater concentration on planned projects. The following pertinent points which he made were, at the request of The Council s.eabers, subsequently released to the public: "The gaps in knowledge are so great that those who dogmatically assert otbervise - vhether they state that there is or is not such a causal relationship are premature in judgment. If anything, the pure biological evidence is pointing away from, not toward, the causal hypothesis. "1. The genetic makeup of the individual largely determines his suscepti- bility to ceacer, cardiovascular disease.or chronic respiratory disease which may appear after exposure to various envirormbental challenges. "2. Hes~y factors other ths.n smoking are significantly associated with cancer, cardiovasculer disease and chronic respiratory disease. "3. Statistical associations between smoking and lung cancer, based on study of those two factors alone, are not proof of causal relationship in the opinion of most epideaiologists: C T R 64-33 CONr"IDENTIAL: MINNESOTA TOBACCO LITIGATION C14 R ! ! N 004026