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Council for Tobacco Research

Philip Morris Expands Promotional Allowances [Discusses Special Offers Made to Philip Morris Vendors]

Date: Oct 1970
Length: 1 page
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Depository Date
25 Sep 1995
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Ctrmn00000667-6967

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Amer Automatic Merchandiser
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118
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ARTICLE
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003
UCSF Legacy ID
qdr30a00

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Page 1: qdr30a00
e -; t .1 Research Council Continued from Page 60 expect si-nple answers." : The Report, revie.+ing the current tobacco-health picture and covering recent research findings, notes that "it is apparent from the great amount of research reported so far that a variet~~ of genetic and environmental fac- tors may be Involved " Through the years a considerablc number of published studies by in- dependent scientists raise questions concerning the validity of various claims that smoking has actually been shown to be a health hazard. These scientists have reported find- ings. certain of which have often been ignored or overlooked by those who accuse tobacco of being the primary cause of various diseases. These are findings from re- tuarch studies, not from hJ1>o- thesis. They come from work done In the laboratory or M•ith humansr and they sho.~ the many Raps in knowledge that exist in connertion hith smoking and health. The findings are now part of the record, however, and thev cannot alw•aVs be pushed aside or covered up by even the most zealous of anti-smoking efTorts. One thing is clear: definitive an- swers to lung eancer. heart disease and chronic respiraton• ailments arc not known and more research is needed. The answers are not around the corner. These diseases have ex- isted and have remained unsolved for centuries. They are complex and complicated in nature. and their so- lution will bc difficult and time-con- suming. Members of the Scientific Advi- sory Board of The Council and of other scientific organizations are op- timistic that the answers will be found. The Council will continue to support scientific investigations until they are. Lawrence Promoted To VP Post at MMI Frank Lawrence. director of man- ufacturing for Micro-Magnetic In- dustries. Palo Alto, Calif., has becn elevated to vice president of the company. it was announced by Jack Riddle. M1vfI president. Mr. Lawrence joined the firm in 1965. Beforc that, he was mechani- cal engineering manager for ITT Laboratories and a senior me:hani- cal eng;neer for Varian Asso- ciates. For five ycars. he owned and operated a compam• in th; elcctronics field. 61+ Tax Fighting Continued from Page 62 money rather than pass It to the cigarette vendors." I am well aware that a vcndor is in business to make money and that some of his costs have risen drasti- cally. The reason I point out the above condition existing in the legis- latures today is in order to explain to vendors exactly what they face in the future. When a tax is increased by 14 or 2e per pack and the vendor jumps the price 5e, he may have a short "grace period" be- fore the legislature can "get back at him." Legislators are not dumb. When they see one segment of an industry making what they feel to be unusual profits, they often at- tempt to regulate them in some oth- er manner. The simplest way to reg- ulate the vendors is to impose a per machine tax. This per machine tax doesn't have to be only on cigarette ma- chines, but can be imposed on each and even' other t,rpe of machine that vends products. I have seen this happen. Then the vendors come and ask, "I wonder why in the world they are dis- criminating against us°" The answer is obvious. The vendor has to decide whether he is in the tobacco industry or not in the tobacco industry. At one time he is and the other time he isn't. When a cigarette tax proposal is made and he •openly supports it, he is a member of the tobacco industrti•. When he is hit with per machine tax or is challenged on his price of cig- arettes. he then becomes a retail es- tablishment and has no part of the tobacco industry and claims inno- cence. These practices have, in the past. not been too detrimental to the vendors, but he faces a new day now. With cigarette prices spiraling because of excessive and dis- criminaton• cigarette taxes, the vendor w-ill more and more find himself in a unique and loneh situation. With bootlegging be- coming rampant, and smokers bu%ing contraband cigarettes at much reduced prices, how man} persons are going to bu% eig- arettes in vending machines ex- cept in "trapped locations?" 71e vendor will face the situation where the loss in sales of cia- arettes is so great that he eannot compensate for it by the increase /l{1M the new leader in vending publication display advertising! in price. Jf an% one glaring ex- amplc ma.• be pointed out, I~eH 1'ork would be that example. The key to any legislative pro- gram on the part of a vending asso- ciation, or in fact, any association is consistency. You cannot be for a tax one day and against it the next. Your attitude on taxx matters affects other legislative proposals because the same basic group of leg- Isiators are voting oet the various is- wes In qoestion. An association or group of individuals has to be con- sistent, has to stand up for its indus- try, and fight down the line for those things that it believes are right. Herein lies the only hope for saving the vendors from confiscatory taxa- tion. It is not enough to say that some other group within the tobac- co industry should bear the respon- sibility or that it's someone else's fault and that "George" should do it. What is needed is a unified ef- fort on the part of all segments of the tobacco economy to halt the on- slaught of higher cigarette taxes. A unified position throughout the country would do much to lend dig- nity and provide an efiective force that would work well, not only -for the tobacco industn•, but for thr vending industn. Forces are at work which would price cigarettes out of the market through the device of excessive tax- es. The vendor should be aware o this dire prospect for the simple rea- son that he will be among the fir> to suffer the greater loss. Philip Morris Expands Promotional Allowances Philip Morris increased year promotion payments effective O. tober 1. Maximum available und. the new plan now is 519.00, a jun from S 12.00. Each of the contracted bran: sold in machines that also sto. Marlboro Red 80 or 85mm u now pay 53.00 per year. The- brands include Benson and HedL. - 100's, Benson and Hedges Ment) 100's, Marlboro 100's. Virgir. Slims and Multifilter, Parliam. . 100's are an addition to the co. - tract to earn S3.0d also. Parliament 80 or 85mru n."" earns $1.00 per' year allowance Supplementing the regular allo"- ance schedule, Philip Morris i:- ports that the company will, frvm time to time, solicit further support on behalf of its products through a special offer to be made availahie to all vendors. Details of such st~:- cial programs will be announceO at the appropriate times. ANtERICAN AL'TONIATIC MCRCHANOISER • October. 1970 f TR AOt;`2 C.r l' R F t N 00,•~•.t 65"t' I It r ~ F

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