Tobacco Documents Online

0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF OREGON CIVIL NO. 70-86 PACIFIC TOBACCO CORP., an Oregon Corporation, dba PACIFIC TOBACCO COISPANY, Plaintiff, vs. THE ANERICAN TOBACCO COr'iPANY, INC., a Delaware Corporation, et al Defendants. Deposition of: CHARLES B. WADE, JR. . ._.._. . , . w r .. .. w .. .. .. w The deposition of Charles B. Wade, Jr. was taken in Room 217 of the Downtowner'Pgotor Inn, Winston-Salem, North Carolina, commencing at 1:30 P. M. on the 2nd day of Febru- ary, 1971. APPEARANCL'S For the PlairJ1-,iff: ROGr'R TILBURY, Lsq., of the law firm of Tilbury and Kane, 1110 Standard Plaza, Portland, Oregon, 97204. For the Defendants: MAX CROHN, JR., Esq., Reynolds Tobacco Company, 401 Main Street, k'inston-Salem, North Carolina, 27102. THOMAS P. GRIESS, Esq., of the law firm of Davis, Polk & hardell, 1 Chase Manhattan Plaza, New York, I1. Y. DONALD W. McEWL'N, Esq., of the law firm of Cake, Jaureguy, Hardy, Buttler & Mcy`wen, 1408 Standard Plaza, Portland Oregon, 97204. DANIEL J. 0'NEILL, Esq. of the law firm of Chadbourne, Park, kr'hitesida & Wolff, 25 Broadway, New York, N. Y. 10004. J. Edward Switzer, Jr., Official Court Reporter. ~ GRAHAM ERLACHER & ASSOCIATES OFFIC/AL GOURT REPORTERf ASHE DRIVE WINSTON•SALEM. N. C. PtiONE: 765•0636

I N D E X I 2 3 4 5 6 7 8 9 10 11 12 13 14 1S 16 17 18 19 20 21 22 23 24 25 1r, ITt1ESS EXAMI?dATION BY Charles B. Wade, Jr. Mr. Tilbury S X H I_ BI T S PAGE 4 NUt.SBER IDMIFIED 0 0 f 00 6~- 0 0 ~ GRAHAM ERLACHER 8 ASSOCIATES . OIFICIAL COURT RErORTERf ASHE DRIVE WINSTON•SALEM.N.C. PMONt: 763 •0636

. 1 STIPULATION 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 By consent of Counsel for the Plaintiff and the Defendant, the deposition of CHARLES B. WADB, JR. was taken by J. Edward Saitzer, Jr., Notary Public, at the Downtowner Motor Inn, Room 217, Winston-3alem, North Carolina, commencing at 1:30 o'clock P. M., on Tuesday, February 2, 1971. All formalities with reference to notice of time and place and purpose of taking the deposition were expressly waived. Formalities with reference to sealing and filing the deposition were waived, and it is stipulated that the original transcript, upon being duly certified by the undersigned Court Reporter, shall be filed with the U. S. District Court Clerk, District of Oregon. It is further stipulated that all objections to questions and motions to strike answers need not be made at the time of the taking of the testimony, but may be made at the time the testimony or any part thereof is offered in evidence. GRAHAM ERLACHER 8 ASSOCIATES Oi11C1AL COURT REPORTER{ ASHE DRIVE WINSTON-SALEM. N. C. PMONE:765.0616 3

C 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Z%::REUPON, N r CHARi.I'S B. h'ADr,, JR. - . . .. _ -. - :~ first being duly sworn, testified as follows: .:. LXAV:II3A T I0N BY MR. TILBURY Q Mr. j;ade, would you state your name and address for us, please? A My name is Charles B. '0.ade, Jr., my-office address is for the 1-:ain Street R. J. Reynolds Tobacco . Company, Winston-Salem. Q How long have you lived in Winston-Salem? A Thirty-three years. Gt How long have you been employed by R. J. Reynolds, Tobacco Company? A Thirty-three years. Q In what capacity, sir? A My current title is Senlor Vice President and Director. Q: And what other positions have you rad in the Company? A I started as a foreman, vtorked in production, ~ecccm e I cams Assistant Personnel Manager and then Assistant Superintendent of Manufacturing and then Personnel Manager then Vice President and Director. . Q Now Senior Vice President, are you the third ranking officer in the Tobacco Company? : - GRAHAM ERLACHER & ASSOCIATES OlfiCiAL COURt REPORtERS ASHE DRIVE WINSTON•SALEM. N. C. PHONE~.*765•0636

A Yes. t 3 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q And you are with the R. J. Reynolds Tobacco Company? A Yes, I am.also Director of R. J. Reynolds In- dustries. Q All right, sir, are you a member of the 1-'cecutive Co=:..ittee of either of those comoanies? A I am not. Q Are you on the Board of any other companies, except °or Reynolds? A Yes. Q Of which companies, please? A I am a member of the Board of h:anagers of 'Wachovia Bank F, Trust Company, and a member of Board of Atlantic and North Carolina Railroad, and I am a member of the Board of fsennis Freight Lines. Q Have you also served on the Tobacco Institute? A Yes. 0 In what capacity, sir? A As Chairraa.n of it's Public Relations, and now cali~~d C=unications Cory,m-ittee. Q ,~Fould you tell us what that Committee did? A That Co=ittee is composed of representatives of other companies, other companies who are members of the Tobacco Institute, and it meets at the call of the Chairman GRAHAM ERLACHER 5 ASSOCIATES OFFICIAL COURT REP'JRTERS ASHE DRIVE WINSTON -SALEM. N CPnONE.765•0636

I 0 2 3 4 5 6 7 8 9 10 11 16 17 18 19 20 21 22 23 24 25 or at the call of the President of the Tobacco Institute td explore the problems of the induatry and make recommenda- tions to the industry concerning those problems. Q What type of problems for example? A Well, the greatest type of problem is that which relates to the public, the reaction to the smoking and hcalth controversy. : Q And what in particular has the Tobacco Institute done with regard to this controversy? A The Tobacco Institute has tried to make visible the other side of the smoking and health question. Q How has it done so? A News releases primarily, so:ne publications for handouts in the form of pamphlets, and some advertising which would r,ormally be called institutional advertising. Q Has it conducted a scientific experimentation of any kind? A The scientific experiments are done in another or4anization which we support - The Council for Tobacco R:~search; very often the material that we use in the Tobacco Institute comes from studies done by the Council's Tobacco Research. Q Is there any connection bets;een the two Organi- zations? A None. GRAHAM ERLACHER & ASSOCIATES OiFIC1AL COURT REPORTERS ASHE DRIVE WINSTON•SALEM. N. C. P..or.[: 765-0696

3I t1 G Who are the members of the Tobacco Institute, e 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 20 19. 17 18 21 22 23 24 25 the Company or corporate members? A Yes, sir, rather than the individual members. I think every maJor manufacturer of tobacco products in the United States is a mcwber at this time except the American Tobacco Company. Q Are there some minor ones as well, and if so, which ones, please? A The U. S. Tobacco Company; Larus & Brotheri; 6ECr~c•fu Ia .... I do not recsa.l. Q Have they employed lobbyist, the Tobacco In- stitute, that is? A Yes. 4 And have these lobbyist entered into the contro- versy with regard to health problens, if any? A Not to my knowledge. Q Hotave they lobbied the Federal Trade Commis- sion or i:embers of Congress in support of their position on this subject? A They, of course, have conversations with the F'ri rrln.•/ ~~l Federal Trade Coru.ission and Members of Congress, Prima:Vy to furnish information that is not obtainable from r~a~ sources other than the Tobacco Institute and the Research arm of the industry. t>i How is it financed, that is the Tobacco Institute GRAHAM ERLACHER & ASSOCIATES Di//C1AL COURT RErOR1ERS ASHE DRIVE WINSTON-SALEM. N. C. PHONE: 765.0636

c 0 3 4 5 6 7 8 9 ~ P 10 il 12 13 14 15 16 17 18 19 20 21 . 22 23 24 25 A By proportionate share of the dues based on published figures about the share of market of the parti- cular company. Q 1;here are these figures published? A For years we have based the matter on what is called the 1,iaxwell Report; the Maxwell Report has been published in several, in at least two publications. Q Does the share of the Reynolds exceed that because of its greater volume? A Yes. C Your Company, I believe, is number one in manufacturing of cigarettes in the United States. A Let me go back to the question-the share of Reynolds is no greater than any other company's share based on it's sales. Q Will you explain that a little for me, please? A ttell, if we are paying- on a basis of thirty-two percent of the share of market, that share to our company and to it's stockholders is no greater than the share of a cozpany that has fourteen percent of the markot. It's more money but it's not more corporate proportion of the money. _ 0 Nvho has done the public relations tUnctions for the Tobacco Institute? A Currently? GRAHAM ERLACHER & ASSOCIATES OfFICIAL COURT REPORT[Rf ASHE DRIVE WINSTONSAL.EM. N. C. ' F'-ONE: 765-0636 0

• , 0 2 3 4 6 7 8 13 14 15 16 17 ls 19 20 21 22 23' 24 25 A Yes, sir. Currently the Tobacco Institute does not retain public relations counsel in terms of a firm, it retains a man who for::lerly was a public relations counselor but he heads no organization. Q And the name of the individual please? A Harold Brayman, Wilmington, Delaware. Q Is he a full-time employee of Tobacco Institute? A No. Q Has Reynolds distributed some of the publication of the Tobacco Institute? A Yes. Q To whom? A To our employees and our stockholders. Q Has your company undertaken to do any investi- gation of itE own with regard to the health aspect of smoking? b«I A. Not internally, and we have in years past had a few cracks im medical scnools, but we do not do basic scientific research in the smoking and health area. Q Does your lcompany work ::~ostly in the area of 1'E'Sc.'4!'[~7 ~Yl7Pr'S cancerAthrough txrbacca- research,, for this problem? A Yes. 4 hvcq~i :IYoes it work for any other organizations? - A- The American iiedical Association Research Foundation. GRAHAM ERLACHER & ASSOCIATES OFFI(:IAL COURT REPORTERS ASHE DRIVE WINSTON-SALEM. N. C. P..owE: 765-0636

, 0 0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1s 19 20 21 22 23 24 25 Q With regard to Tobacco Institute, is this open to all manufacturers of cigarettes in the United States? A Yes. Q Have there been any companies that have been rejected for membership? A TJo, to my knowledge, not. Q Do you know whether or not membership was open to the Pacific Tobacco Company, my clients? A Ameri-cary--T'obaceoz~Campany 2 0 No,Pacific Tobacco Company, my clients company, or their manufacturers. A I suppose that depends on how we define the term, their cigarettes were manufactured by somebody else, they were not mainufactured by themselves. I.have no knowledge of that. Q Are you familiar with Continental Tobacco Company? A Is it a manufacturer? Q I believe it vras at one time. A I am not. Q You know of no companies vrho have applied have not bcen granted membership? A No. U Is there sone measures for enforcing decisions made by the Tobacco Institute? GRAHAM ERLACHER & ASSOCIATES Oii1C1AL COURr REPORTERS ASHE DRIVE WINSTON-SALEM. N. C. P..OrrE: 765 0636

0 2 3 5 6 7 8 9 10 it 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I M. 0' NEILL, Object to the form of the question. tii'ITiFESS: There is none. Q (By rr. Tilbury) Does the Tobacco Institute distribute or assist in any way with regard to the cigarette advertising code? A i1To. k4 1ias your Company subscribed to the cigarette advertising, code? A At one time - did at one time. Q I take it that it's not at the present time? A 240. Q Z:hy is it no longer? A Well, the og,,aru-ation wasn't viable when it dwindied dokn to two or three members. Q When did that occur, was that last year? A I think last year. Q Now as far as the operations of the cigarette advertisir..g code, how did your company participate in it, what did you do? A I'd have to go back and add something to the' other question too. Q Please do. A The advertising code undertook advice on the ~ . ~ question of television and radio advertising,AmaJor portio ti: c S tL•aS of thc coripsny's budget wer,z in this field with that~pre- GRAHAM ERLACHER d ASSOCIATES OfFIC1AL COURT RlPORT[RS ASHE DRIVE W/NSTON-SALEM-N.C. PHOkE:765-0636

0 0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 an?, ft"w4 In•Jn fY'lFd empted " by law in April, 3~:vii~ =8ffn~t January the 2nd. Q 1971? A 1971. There was no point in continuing the code unless the whole industry was participating. Q All right. During what period of time did your compo.ny subscribe to the code? A From 1962 or '64, whenever it was established. Q tisas all of your advertising submitted to the code during that period of time? A Yes , sir. Q t.as any of your advertising re3ected by the code A I understood that it was. Q On what grounds, sir? A On the grounds that it violated; , in the opinion of the code it violated the provisions of the.code. G In what respect? A This could be the-using iaodels for example that were twenty-five and seemed to be--and girls look yo=,rcr all the time to me; and I presumed they did to ti1c- yn e ~- I .Mr. r in3r, that's the type of thing, sensuousness, and these are very arbitrary areas of opinion. Ib:EylJc'r'S Q 'I~otit was Governor 'r•;i-nors s decision binding in all cases? A So far as I know, only,clour company; only,, our coMpeny his decisions were binding. We would attempt to GRAHAM ERLACHER & ASSOCIATES OFFICIAL COURT REPORTEkS ASHE DRIVE WINSTON•SALEM, N. C. PHONE: 765-0636

0 x 3 6 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 comply with the wishes of the administrator. Q As I recb.ll, there was provision in the code providing for penalties of up to a Hundred Thousand Dollar for violation of the code? A Yes, sir. 0 Do you Icnow if any companies that were required to pay such pcnaltics? A I do not. Q hll right. You meant no, not just the hundred thousand? A I don't. Q. Did Mr. Thomas Austern, an attorney I believe in Wasriin~;ton, do some work for the Tobacco Institute? A . Yey. Q Af ter t::e tcrainGtion of the cigarette advertis- ing code as you have described it, did your company then cooperate with the National Association of Eroadcasters in some kind of code or formal or in-Lormal code that they utilized? A I do not know, I would presume that it did. Q Did your co:_pany reqTaest' inlormation of the Tobacco ar.sta.tute with rcspect to the plaintiff here, the Pacific TobGcco Company? A t~o . G r.ould they uz:dErtake or did they undertake the GRAHAM ERLACHER a ASSOCIATES OffIClAL COUNT REPORT[RS ASHE DRIVE WINSTON-SALEM. N. C. PNOkE:76S-O636

0 3 6 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 investiDation from time to time-of specific request from Tobacco Companies liko that of any other particular companyi, for exaraple? ~ A I have no knowledge. 0 Now wh.ich of your officers besides yourself-- i1r. Wa~.e participated in 'any way in the Tobacco Institute? A The President of our company has always been a member of the Board of Directors and a member of the Exe- cutive Comnittee of the Tobacco Institute; our General Counsel has always participated in what is called the Legal Committee of the Institute, and I have always participated in the Comm. unications Com.^;ittee. 0 There are some records that appears to have been identified as publication has been marked as ExTiibit ?-lo. Cne, vould apply to the ci£arette advertising code, is there only one code that you are familiar with? A . That' s -al l . (The docuwnEnt above-referred-to was rGrked ---:c.hibit I.o. 1 for identification.) Q This particular document which has been marked as P14 intiff's E-x.hibit No.One , has some material w-ritten on the side of it by someone--I'm not sure who did it rcally--showinG a notation of a few provisions were aus- pended in Dece;ii'oer of 1967? A Yes. GRAHAM ERLACHER & ASSOCIATES Ofi.C1AL COVRT REpORTERS ASHE DRIVE WINSTON-SALEM. N. C. P~4or:E. 765•OG36

3 6 a Could you tell me please if those provisions w ere suspcnded about that time? A I do not know. Q Do you know of any provisions that were sus- p-Unded any ti:.,e? A I beard th3t there were provisions that were suspended, but I have no knowledl;e of t':era. Q Do you know why they were suspended? A I do not. 10 11 12 13 14 15 16 17 1s 19 20 21 22 23 24 25 G Are you ~: Yes. KICE'~'~~'r acquainted with a 2f:r. +:itliam -~.:-loeper-? Kleep~ef 0 Did :-Ir, r,i-o~r work with you? A Yes. U In wht:t capacity was I.15•tiytt }e for the '.t,obacco Csmpany rie employed? A Iae was employed as Vice President for Public Relations. C< I:ave 'you in connection with your work for the ~ecvrcy^pu Ic ^eyr.o2cis t;o:.: ;any e7couzitcrtd the t:=Lor Fj-.:*% Corapany at ~ ., .: ~. . G"!S • ~ ~ _f A I'o . C~. Are you pcrsonally a member of any other Associa-I tions other than those you h: ve identified? Q Do you attcnd conventions of one kind or another? GRAHAM ERLACHER 8 ASSOCIATES OFf'ILI.L COURT REPORTERS ASHE DRIVE WINSTON-SALEM. N. C. PNO..E: 765•0686

. A Very seldom. 0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q ti'hat sort of conventions would you attend if you--when you have the opportunity to do so? A N;ore meetings than conventions I attend; the raeetin; of the Tobacco Growers Information Committee, I believe that's the only industry connected--tt:e neeting that I attend. 0 Who does that consist of, the Tobacco Growers InforLZatio~j Committee, who are members of that? 1 r i lit(+r. ~ ~ A Prd-mar-j-the agricultural people, warehousemen, - farmers. Q Are there major tobacco companies members? A No. Q V'hat are the associations or trade groups with the Reynolds Conp4ny be a member of insofar as they relate to the Tobacco Industry? A I know of no;ze. Q Did you in connection with your work have any contact in anyway with the subject of cancer cigarettes with Pacific Tobacco Company? A I did not. C Did any ~.~emorandas that were written by any of trie R. J. Reynolds Tobacco Company come to your attention on the subject? A I have seen no mcmorandums written about it. GRAHAM ERLACHER & ASSOCIATES OFf1C1Al COURT REPORTERS ASHE DRIVE . WINSTON•SALEM,N.C. P..Or+E: 7f,5• 0636 (n O ~ ~ do

. 0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 iR. TILBURY: Off the record. (Discussion off the record.) Q (By iTr. Tilbury) Mr. k'ade, could you identify for us please, the subsidiaries of the R. J. Reynolds - Co:::pany? A Yes. Archer Products, Inc., R. J. R. Foods, Inc, Sea Land, Inc. of r.cLean Industries. No. GRIgSw:" You mean Sea Land is a subsidiary of McLean which is in turn a subsidiary of Reynolds? Wlli~~iSS: Right. R. J. Reynolds Lurope, ;. A. There are some subsidiaries in Archer that are parts of their business--Filaco, Inc., that's the only one I recall. Q (By Xr. Tilbury) Has your company recently acquired--I believe- a"hundred pereent d'"the stock in the American Independent Oil Company? A Vot a hundred percent of the stock. Q What percenta~e of stock do you own? A I think we own more than fifty percent, but I ara not positive. Q Are you in the process of acquiring the remaininf fifty percent? A Not that I know of. Q Is it fifty percent or is it more than fifty? A I think it's more than fifty percent. GRAHAM ERLACHER 6 ASSOCIATES Off,c1A: COUNT REPORTERS ASHE DRIVE WINSTON-SALEM. N C. PHONE 765-0636 f

4 0 3 4 5 6 7 8 9 10 li 12 13 14 15 16 17 18 19' 20 21. 22 23 24 25 Q Is Penick and Ford another subsidiary? A Yes, it is, and you'll have to forgive me for forgetting to mention it to you, but we are having to divest of that and I am apt to keep it out of my mind. Q Docs your co::ipeny license other companies to manufacture ciEarettes? A Ye:~, we do. G And which companies do you license? A In the Philippines. The Philippines is the only liccnsee that comes to my mind right at the moment. Q Do you have some in Holland and Peru, for exa, ple? _ .A I don't think we do in Hollan'd~ because we make ilQUs 11nu£rUurr cigarettes for those countries at i?ou3e= ~tiu~ nb under R. J. Reynolds P. Q Does your company maintain research laboratories for testing tobacco products? A Ye s, we do.'~~.c=-~ontra~t- #s~~nf~=out -z =o1-land~si ~ h~ ~;.~ire==-Com?any -nake s =the:n - for - o s . G I see. Do you maintain a research laboratory-- A In 1/.inston-"alen. C In any place? A Yes. Q And are they equipped and do they analyze cigarette products? GRAHAM ERLACHER & ASSOCIATES O-F/CIAL COURT REf`ORTERS ASHE DRIVE WINSTON•SALEM.N.C. Pr4OnE765-0636 .

A Yes, 3ir. 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Does your company do business to any extent with A. ri. F. , American Machinery and Foundary? A Not to my knowledge. Q From which source do vou acquire your machinery? A Hoeniy, Molins, primarily. Q 1That do you do with your used machinery, how do you dispose of it? A I haven't known us to dispose of any machinery- of consequence in twenty-five years, and I don't know how we disvosed of it and when we do. Q Have you had any dealinGs of your own with any of the distributors or retail accounts in tl:e state of .Oreson within t;ie last ten years? A ivo, sir. .Q Have you made trips in that-area for any rEason. at all? ' A No, sir. a Does your company do business with any other - r:ajor tobacco companies in any respect? A ~:e s---ll--you're talking about doing business with--we supply them with some foil which ve ma.he in the Archer Company. :~ To whicYh other tobacco companies is it sold? A Ve sell some to Lorillard, some to American, GRAHAM ERLACHER & ASSOCIATES OPsIciAL COURT REPOQ7ENt ASHE ORIVE WtNSTON•SALEM. N. C. PMONE: 765-0636 0 0 ~ OD 61

0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 some to Liggett and rjyers, I believe we sell some to Philip r:orris, and that's all that I recall. Q Do you buy products from any of those.companies? A Not that I know of. 0 Lo you exchange products with any of them? ~* ,o. 0 Do you utilize Turkish tobacco in connection with any of the products that you make? A Yes. • Q Do you buy any of these products from the `?`urtsish State Monopoly? A We have a subsidiary in the near k:ast -P,nd we buy from that company; where they acquire tobaccos, I don 't 1mow. 0 Approximately how long does it take to train your employees to be able to operate the cigarette nar.ufn cturin;; m4chines? A As a cigarette machine operator? Q Yes. A I would think that it could be done in these days in three or four months. Q t:ow about a mechanic to service such a machine? A A year. Q Does your companj mAnufacture any private brand ci.-arettes at any tine? GRAHAM ERLACHER 6 ASSOCIATES O«/.1AL COURT RCPORTERS ASHE DRIVE WINSTON.SALEM. N.C. PMOH[:765-0636 v QD

a 0 0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 ls 19 20 21 22 23 24 25 , A Not to my knowledge. Q Do you know the reason for that policy? A k'e are busy making our own. G Did you have any capacity which could have been used to increase the production in 1967 of cigarettes? A I should think that we would be a poorly managed business if .:e found ourselves in a position not to be abi to increase production of our cigarettes, with a fluctuat- ino demand and an effort on our part always to sell more. 0 Do you know, Ir,r. 1:nde, why, I believe this to be a fact, no response was made to a request on the part of my clients for Reynolds to manufacture it's cigarettes? A I have no knowledge of them making a request. Q Does your company buy products from blenders of tobacco products? A From blenders? Q Yes, sir. • A Would you mean that people would sell us blends that we could use? G Yes, sir. A :Tio, sir. a Do you buy the raw tobacco then directly through your own people o is that the way it's done? A Yes, sir. Q Do you se11 any portion of your blend to anybody else? GRAHAM ERLACHER & ASSOCIATES OfrICIAL COVRT REPORTERS ASHE DRIVE WINSTON•SALEM. N C. PHONE: 765.0G36

q r 3 6 A Not to anybody that we don't oum as a subsidiary.~ ; ~. TILIIU^,Y: All right, sir, thank you. M. ?^cLZ-:."N: ,to questions. ;•M. 0' 21-:~I?.L: No questions (_.,M OF _1-.t:f_.-:zNrATlo1q) 10 11 12 13 14 15 16 17 18 19 20 21 23 24 25 GRAHAM ERLACHER & ASSOCIATES OFiiCIAL COURT REPORTERS ASHE DRIVE WINSTON-SALEM. N. C. PNONE 765•0636

0. i 3 6 10 I1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 THIS IS TO CIRTIFY T}V.T TH.: Ti;STI;:ONf H"t:.R:.IN GIV':IN BY '1~ IS T:?L.: A?'M CORRLCT TO TIiF BEST OF :•:Y K.NO;i;'L :DG:~ ANI) ~ „~ ExLil:,.~ . Charles 3. F:ade. Jr. Date: GRAHAM ERLACHER & ASSOCIATES OFFICIAL COVitT REPORiERS ASHE DRIVE WINSTON-SALEM.N.C, PnOVE• 7C.S-O636

e4 .l © 3 6 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 C':'ztTIFICATT' STJ'_TF OF IJJaTH CA.TZOLI:ITA COli~~TY CF FO?SYTH I, ~.'_'di:ard S-•r3.tzer, Jr. , Notary Puhlic, in and for the CoWnty of Forsyth, '-",tate of North Carolina, do hereby certify: That on the 2nd day of February, 1971, there appeared before me the foregoing witness in the above-entitled case That the said statement was then taken at the time and place mentioned, beginning at 1:30 P. Pi. on February 2, 1971; That the said witness was sworn by nc and examined to tell the truth, the whole truth, and nothing but the truth in said case; That the fore'-oing testimony was taken by me on stEnomask and thereafter reduced to typewriting under my sur~:xvision, and the foregoing twenty-three (23) pages conta i n a fuZl, true a,nd correct transcription of all tho testimony of said witness; That the under; irned J. Edward Ewitzer. Jr. is not of kin or in any wise associated with any of the parties to said cause oi' action or their counsel, and that I aru :r.ot interestcd in the evcnt thereof. IN I have hereunto set my hand this l!% V'k day of IMarch, 1971. Notary Public alnd Cou.rt fteporteri i:y Cor~~issio7 e~:pires: ~ Fe~: t ,~~:ry ~.._~, 1 ?70 GRAHAM ERLACHER & ASSOCIATES OffK1AL COURT REPORiERS ASHE DRIVE WINSTON-SALEM. N. C. Ps.Ord£: 765-0636