Anne Landman's Collection
840000 Corporate Affairs World Conference Rye Brook, New York 840912 Plenary Session
Abstract
This document is a transcript of a Philip Morris (PM) Corporate Affairs World Conference from 1984. It contains key speeches by people who were formatively involved in PM corporate affairs. It describes PM's attitudes and tactics for fighting public health. For example, it describes how PM pressed its food and beer subsidiaries into service to provide a "grassroots" response against legislative proposals to regulate tobacco. It also contains other telling comments, like: "We're now facing a global anti-smoking campaign...Here and abroad, passive smoking is a particularly dangerous issue because it supports restrictions on smoking where smokers spend nearly half of their waking hours--in the workplace. " [2025421661]
and
"We're increasingly sophisticated at reaching minority constituencies. Our pace-setting support for the [blank..presumed "minorities"] softens our controversial edges with influential friends." [2025421664]
The document also shows PM's battle-mentality against the will of U.S. citizens. Citing the company's first loss on a ballot initiative in the U.S. (in San Francisco,1983) a speaker says,
"Well we've learned from that. We've sharpened our weapons and the next time around, we did, in fact, preclude similar legislation in other cities in this nation and we'll do even better in the future...That's what we've got to do, over and over, year in and year out in city after city, state after state, country-- sharpen our tools, do battle..."
Perhaps most telling is the bizarre attitude expressed by Harvey Sapolsky, a professor of Political Science from the Massachusetts Institute of Technology, and a featured speaker at the conference. Sapolsky complains that society discriminates against smokers because people are no longer allowed to smoke while taking the bar exam, while waiting in hospital emergency rooms, or while serving on a jury. Sapolsky laments,
"A friend of mine a few years back [took] the Federal Bar Exam. And I assume it's a tense experience. I haven't taken it, but I presume that smokers who have taken that wouldn't mind lighting up every once in a while. But she wasn't permitted to do that. She was marched out every hour for a cigarette break out in the hall by a marshal and had to stand there and waste her time on her exam while the non-smokers were allowed to continue. I think that's unfair--discriminatory.
I've also seen clips in the newspapers that there are now jury rooms, I think the state is Oregon, where there's no smoking around. Perhaps it's more widespread than that. That's terrible. It's unfair to the people on trial as well as the people who are on the juries. And that's discrimination...
I accompanied someone to an emergency room and I was in the waiting room. And they don't allow smoking in the waiting room. That's discriminatory. People are waiting there for their loved ones, maybe a terrible accident and they're not allowed to show any signs of being human and smoking at that time. They're supposed to go out in the rain or something like that, [and] that's unfair. And something ought to be done about that..."
In his speech, Leonard Zahn (a public relations consultant to the industry) says the conclusion that nicotine is addictive is "the second-most serious problem...facing the industry today," and claims that the National Institute on Drug Abuse (NIDA) "are doing that to cover up for their failure to deal with their assignment--drug abuse."
This document reveals the antipathy and disrespect that the Philip Morris tobacco company held for public health authorities, describes the tactics PM used to fight these authorities, and gives us a look into the belief systems of key people who influenced the tobacco industry to engage in such a furious, behind-the-scenes battle against public health.
Fields
- Quotes
[Page 7]:
In San Francisco recently, we lost our first ballot initiative. Well we've learned from that. We've sharpened out weapons and the next time around, we did in fact preclude similar legislation in other cities in this nation and we'll do it even better in the future...That's what we've got to do over and over, year in and year out, city after city, state after state, country--sharpen our tools, do battle, and hopefully win more victories.
The answers to these people that we just saw come I guess from a very simple group of people who say, "Has anybody got a cigarette?" or "I'm dying for a beer..."
Those are the people who are really out there on our side. We get all these attacks and yet the simple truth is that we have millions of people who want to use our products.
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People believe their health is at risk. And I think that's particularly strong in the cigarette case. I think the cigarette issue has gotten to the point where there's really nothing that can be done about the health issue. You can't be belileved and I don't think even smokers will join you on that subject.
All the nonsmokers I know now have an allergy to smoking. And that was 20 years ago, no one had an allergy for smoking as far as I know. Now they all have an allergy. And I think that's just a polite way to say they're scared to death of smoke in the atmosphere.
And all the smokers I know, perhaps this room being an exception, feel terribly guilty about their practice. As a result, there's a great acceptance for the segregation of smokers. As we know, there's no-smoking offices and non-smoking meetings except for this one, and smoke-free rental cars, and smoke-free motel rooms and smoke-free moving bans. And worse, there's discrimination now about smokers. My secretary as we were leaving for this conference, she was looking for an apartment--she's a smoker--she was looking for an apartment and she wasn't looking for a rommate, she was looking for an apartment. And she discofers that many of the apartments are now being advertised as smoke-free, even though she's going to occupy it by herself. And that's discrimination.
And there's also job discrimination that's coming. All the advertisements for secretaries at my institution now contain, often contain the phrase this is a non-smoknig office, and they won't hire smokers.
Well I don't think you can deal with the public's fear of the health fears, but I think you ought to be able to shift the guilt. And for discrimination, people ought to be told they're practicing discrimination. I have some what I think are outlandish examples of discrimination where they really aren't being challenged.
A friend of mine a few years back [took] the Federal Bar Exam. And I assume it's a tense experience. I haven't taken it, but I presume that smokers who have taken that wouldn't mind lighting up every once in a while. but she wasn't permitted to do that. She was marched out every hour for a cigarette break out in the hall by a marshall and had to stand there and waster her time on her exam while the non-smokers were allowed to continue. I think that's unfair--discriminatory.
I've also seen clips in the newspapers that there are now jury rooms, I think the state is Oregon, where there's no smoking around. Perhaps it's more wide-spread than that. That's terrible. It's unfair to the people on trial as well as the people who are on the juries. And that's discrimination (laughter).
I accompanied someone to an emergency room and I was in the waiting room. And they don't allow smoking in the waiting room. That's discriminatory. People are waiting there for their loved ones, maybe a terrible accident and they're not allowed to show any signs of being human and smoking at that time. They're supposed to go out in the rain or something like that, [and] that's unfair. And something ought to be done about that.
And then ther also, something ought to be done to buck up the feelings of smokers if they're so oppressed. If smokers are going to be in the back of the airplane, that ought to be the place where there's free movies or free drinks or somethings to reward them for their experience as opposed to penalizing them...Moreover, if there's going to be separate facilities, there ought to be at least equal facilities...
- Company
- Philip Morris
- Author
- Clephas, Vincent R. (PM Public Affairs Dir. (1981), Communications Dir. ('79))Director of Public Affairs at PM c. 1981; Director of Communications at PM, 1979
- Maxwell, Hamish (PM President c.1984)
Took over at time of Cippolone. Cleaned house. Carried company into a strong defensive position.- Pittman, D.
- Sapolsky, Harvey Morton, Ph.D. (Political Scientist, MIT, PM consultant, Industry Expert)
Massachusetts Institute of Technology Political Science Department- Scott, S. Stanley (VP & Director, PM Corporate Affairs in 1985)
S.S. Scott served as a Vice President and Director of Corporate Affairs for Philip Morris, Inc. in 1985. (Source: Philip Morris Summary - PMI Liability Notebook)- Zahn, Leonard S. (CTR Public Relations consultant)
Leonard Zahn & Associates, Public Relations consultant to the tobacco industry - Maxwell, Hamish (PM President c.1984)
- Recipient
- Attendees of Philip Morris 1984 Corporate Affairs World Conference, Rye Brook NY
- Region
- Global
- Named Organization
- 1984 Corporate Affairs World Conference
- 3rd World Corporate Affairs Conference
- 4th World Conference on Smoking + Health
- 5th World Conference on Smoking + Health
- 7 Up
- Alcohol + Drug Abuse Comm
- American Assn for Cancer Research
- American Cancer Society
- American Heart Assn
- American Lung Assn
- Center for Science in the Public Interes
- Civil Aeronautics Board (Ruled on smoking in U.S. airplanes)
- Conference on Business Opportunities
- *Council for Tobacco Research-- U.S.A. Inc. CTR (Formerly Tobacco Industry Research Committee (TIRC))
Created and funded by the tobacco industry to award grants to study of the link between smoking and disease. Part of a four decade effort to cast doubt on the links between smoking and disease.- Distilled Spirits Inst
- Fortune Magazine
- Miller Brewing
- Mission Viejo
- Mit
- Mothers Against Drunk Driving
- Natl Conference of State Legislatures
- Natl Heart Lung + Blood Inst
- Natl Inst on Alcohol Abuse + Alcoholism
- Natl Inst on Drug Abuse
- NCI, Natl Cancer Inst
- Ny Post
- TI, Tobacco Inst
- Tobacco Advisory Council
- US Brewers Assn
- US Congress
- US Senate
- Washington Univ St Louis
- World Health Organization (Concerned with global public health)
International organization concered with public health worldwide- World Health Assn Subcomm on Internation
- 3rd World Corporate Affairs Conference
- Litigation
- Stmn/Produced
- Named Person
- Aristotle
- Boley, J.
- Clephas, Vincent R. (PM Public Affairs Dir. (1981), Communications Dir. ('79))
Director of Public Affairs at PM c. 1981; Director of Communications at PM, 1979- Colman, H.
- Cullman, Joseph Frederick III (PM President & CEO (1957-1970))
Executive vice president and senior marketing executive of Philip Morris in the 1950s. Exec. VP 1955-57. President in 1958, held that position until 1967. Chairman from 1968-1972 and acquired title of CEO. Chairman of the Executive Committee, 1979-85. On the Board of Directors from 1954-1985.- Donohue
- Galbraith, J.K.
- Hathaway, W.
- Hawkins, P.
- Jacobsen
- Koop, C. Everett, M.D. (Surgeon General ('81-'89))
former US Surgeon General (1981-1989)- Maxwell, Hamish (PM President c.1984)
Took over at time of Cippolone. Cleaned house. Carried company into a strong defensive position.- Mccormus, P.
- Murphy, J.
- Pittman, D.
- Ruder, William (Ruder & Finn, PR firm used by tobacco industry)
Served on TI Communications Committee- Sapolsky, Harvey Morton, Ph.D. (Political Scientist, MIT, PM consultant, Industry Expert)
Massachusetts Institute of Technology Political Science Department- Scott, S. Stanley (VP & Director, PM Corporate Affairs in 1985)
S.S. Scott served as a Vice President and Director of Corporate Affairs for Philip Morris, Inc. in 1985. (Source: Philip Morris Summary - PMI Liability Notebook)- Surgeon General
- Weissman, George (PM Chairman & CEO '79-84)
Vice President of Philip Morris from 1954 to 1956. Vice President and Assistant to the President in 1957. Vice President of Marketing from 1958-59. Executive Vice President of Marketing in 1960. Exec. VP Overseas in 1961, Exec. VP PM International 1962-66. President from 1967 to 1972. President and Chief Operating Officer in 1973. Vice Chairman from 1974-78. Chair and CEO from '79-84 and on the Board of Directors from 1959-84. "Mastermind" of Philip Morris' direction.- Zahn, Leonard S. (CTR Public Relations consultant)
Leonard Zahn & Associates, Public Relations consultant to the tobacco industry - Boley, J.
- Type
- TRAN, TRANSCRIPT
- LIST, LIST
- Subject
- Corporate strategy
- Corporate image
- industry activity
- industry influence
- industry strategy
- taxation
- smoking attitude
- smoking restriction
- legislation
- Corporate image
Document Images
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2 1984 CQILPtBATE A"AI>ft8 WOQi.D CtHrBR=CR
8YE BStCK,. I= Y QRC
. S9PV"U 12, 1984
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MJL. STANLEY S. SCtn"!: Good morning.
We shoaed those commsrcials because they weneresponses
to challenges. They were opportunities seieed. As
you know, challenge and opportunity are what we're
trying to sort out this week.
Aeturning challenges into opportunities
Philip Morris w uund up 35th an the F urtune 500 list in
revenues -- 15th. Among the 500 in that earings.
Corporate affairs played a mQ j or role
in Philip MJrris t achievement of that rec ord. Jim B oley
is a hard act to f ollow.
But let's look again at some of the iaa-
mages we just saw. We're learning to live with that and
naybe we'xe uecming a bit complacent. That could hap-
pen in a year or two if you ask anti-alcohol extremists
are not blocked at achieving the goals they announced
this spring.
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Even that isnet out of the question, be-
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cause iegislaturs thirsty for revenues have started slap-
ping taxes un suft drinks.
I don't have to tall you there is an
intensifying squeeze on c onsuers freedom to purchase our
products. The fact is in 1984 our industries have all
been hit wc-xld-wide with more chAl$nges and more opposi-
tion in ,rwre places, at more levels of government, than
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ever before. In ttis country in 1984 for the first
time, Congress has been considering multiple bills
that could severely damage our cigarette business
4 through taxation, stiffer warning labels, and self-
5 extinguishing cigarettes.
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6 ? Just this year four states have already
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10 W The drone beat of municipl regulations
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11 z and referendums is louder than ever. Right now 22 pend-
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12 ? ing bills call for workplsce restrictions.
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13 ~ bince January, seven others have passed.
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14! 'Eiaht lucaliti©s have considering sampling ba;;s including
15 ~ major cities like Boston, Philadelphia, New York and
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o' Jur U,6, cigarette adversaries 9me11
18 ~' blood,, and are nuw unified around their new rallying cry
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19 o of a smuke-free society by tha year 20f9U.
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20 Z In the 13te 197C?'s tha anti-smoka crusader-
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21 z' ilas centered primarily in North America. In Norway,
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Sweden, the U.K., Germany, and Australia. But a turn-
around came in 1979 at the 4th WoridCanference on Smoking
and Health in Stockholm. This milestone conference stren-
gthened aworlci-wide network of anti-smoking professionals
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who a=e-in a position to dictate policy, And dictate
they -U3.
Within a year, for sample, virtually
every- Kiddla-Eastern country required warning Icbels
on cigarette packs. Within three years, those same
~ countrias in the Middle East restricted or bannad tr3-
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'No ditional forms of cigarette advertising.
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The fifth World Conference took place
9 uor. in Winepe ; last sumeaer and that conference eccellerated
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We re now facing a global anti-amoking
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cnority, tisan it h-ad before in the last 5urgeon Genpra1's
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apan ar.
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priority in uther caIntries, inclu ing
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21 z Perhaps a chief weapon against consumars
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all our pr.oducts is the excise tax. People used to think
of excise taxes as mostly revenue-raisers. Nuw the antis
are usirg excise tax as weapons to curb the use of our
products to try and put us out of business.
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8ere in the US thereEs talk of heighten-
irtjj the federal exxcise tax to 32 cents per pack. At
the name time, state taxes are spiraling upward. As
if it weren't enough, we face pr oposals for targetted
taxes on cigarettes, besr and soft drinks to pay for
l+jeedicade and alcohol abuse treatsent. Beer is beginning
to be the target f or so®® other familiar attacks like
the demands for health warnings and ingredient labela,
The iegitimate concern with alcohol abuse
::s turning to a tax on alcohol use.
We see more and more proposals to restrict
beer advertising, hours of sale and campus.marketing.
Environmentalists are putting pressure
on Philip Morris Industrial and which is sune-
thing our people in soft drinks and beer can underatand
too,
Our soft drink and beer people of course,
the principal environmental issue is a forced deposit
beverage laws or b ottle bills. In the cigare4te ware
are seasoned domestic federal troops in the United Statea
have had to learn todo battle in the state trenches. Now
in beer, our state forces are having W learn the federal
terrain.
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Today, wetre also facing strains in our
U,S, tobacco coalition of farm+irs andasnufacturers. I
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part, because the imported leaf issue threatens the
farmers.
Clearly, we ive got a lot of cultivating
to 35. Our tobacco family has topu12 together. We 've
5 1gat to organiae our most obvious constituency. Those
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6 ~ people who enjoy our products.
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7 I Not unl,y lthat, but we ive got to change
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4 O ge uplcs that ch oose to enjoy them.
10 z Peuple may ask why our industry {s aL=t~ays
11 9 uvder attack. The answer is sisiple. Weere easy to pick
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13 ~ ever since folks lar.ded at Jaeneatowr~ in the ~Ie~,, ?.T~~irlci
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14 fvhere ttibacou was actualty used as cash currency.
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~ What were the issues then? AcRaz-S n;. Tax-
16 z_ ation, prciduction and health.
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& , Our adversaries would have our consumers
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O' Lq in. Well, we knuw that's ni".kt true. Anj i:u;. job i.s
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21 z victories and we think we can.
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Our outreach tv the inveetcuent c.m:unity
23 is respected here and abroad. The views --)f our executives
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cx=nrnl a hearing. Our good re Iati ons with the plant cum-
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munities get results. And the fact is, yL,4z s.ru the very
- on because wee re highly visible. And weive been that way
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best at what you do.
Wei*re expanding our contacts with Ieb
ing internationaletatesmen and with leaders in Washingt
the states and the cities.
Abroad we've had some success recently,
in holding the difficult line on excise taxes in places
I like Argentina, canada and France. In England we f ound
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8(2 out how to make headway with the tobacoo Advisory Council*s
tough tell the taxman campaign.
We're increasingly sophisticated at
reaching minority constituencies. Our pace setting sup-
port for the softens our controversial edges
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14 ~ What we've got to learn to do better is
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ask those friends' for support when we need them. And
weire also
learning from some of our negative expariences,
In San Francisco recently, we lost our
first ballot initiative. Well we've learned from that.
We i ve sharpened our weapons and th9nelt time around, we
did in fact, preclude similar Iegisiation in other cities
in this nation and we'll do even better in the future
because w;aire counting on aLI of yw,
That# s what we've got to do over and
over, year in and year out in city after city, state
after state, country -- sharpen our tooLs, do battle,
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and hopefully win wre victcrries,
I have a few 3;deas about how we can win.
And ftse of you who know me know that I'll welcome your
ideas because on any given day,we need as many ideas as
we can muster,
First, I think that we rve got to further
strengthen our partnerships between our operating.cam-
paniea, and between them and corporate. In July for
example in the United States, Miller Brewing Company,
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Philip Morris,
U.S.A*
and corporate kept a committee of
the National C onference of State Legislatures meeting in
Boston from endoxed,ng a prohib'ition on beer and wines ad-
vertised on television. That pr oposal cuuld have been a
f oot in the d'oor to banning of all of televised beer
advertising on television.
This summer we got similarly outstanding
collaboration from our operating companies including in-
ternational at both of the national political conventions,
The plain fact is if we don't communicate
well internally, weire going to do a lousy ,job externally,
Communicatiuns tatcea memos, it takes phoneca4.18, it takes
time, we've got to stay in close tough,
The partnerships and good communications
should help us with the third task I see ahead. And thb t's
expanding our constituency base. That's a buzz w ord and'
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wv're facing a buzz saw.
Add third-party defenses as Bill Ruder
3 csiis them are poserful. All the old techniques wiil
4 have to go into overdry. Especially searching out
5 1groups with whom we can make commun cause and common
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6 ~ causes around whichwe can meke groups. We ~re in fact
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7 I taiking about coalitton buildng. Our years of build-
v$5-~. ing expertise in computers are over in the United
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10 z yor example, n+xa we can track our history
11 fziof relationships with leaders and with future leaders
12 ~ who graduate from staff jobs to state legislatures, to
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~ governor ships to the C ongress and to the White House.
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~ We can push computer buttons and tell who's with us and
15 ~ wh+~ls opposed to our efforts. The information is there.
16 z We have t o d o an even better j ob of using it.
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~ Another fact of life is that fewer and
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y fewer legislators come from the tobacco business. I
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, have large numbers of tobacco people among their consti-
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tuenciee. They are just as Pikely to be teachers, lawyers,
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or real estate agents. So as these legislative bodies
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change, we rve got to keep adapting our tactics.
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$ ource. They gst involved in issues affecting us. And
these employees plus the sales forces in our plant communities
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were there when the Civil Aeronautics Board proposad
to ban smoking on f iights of two hours duration. We
got :5f?,000 petition signatures in four days. As a
matter of fact, our company effort generated 45 per-
~ cent of 1he industry ' e support.
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Our uni uns in Phi Ii p Morri s, U. SA4 have
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I give us the green light of their memberi to join TAP,
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8 0 our Tobaaoo Action Program. By the and of this year,
9 o TAP could more than double from 6,000 members to 15,000.
10 z Tbis means 9,000 more employees available to help support
11 ~ our enlightened self-interest.
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~ big direct-buy customers across the U.5. Jn issues of
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14 ~ common concern from restrictions on sampling to tax in-
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~ creaaes.
16 z I say to you support for our industries is
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out there if we go out there and get it. We can find
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18 ~ friends. We can make common cause with third partiAs.
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p We can build pawerful. coalitions. But we have to approach
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~ the task with vision and creativity and 9taying pa~rer.
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~ We soon will be collaborating with our
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ourth we
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every presentation we can find to keep hammering our key
23 I themes. We 've got to raise the public 's awareness of how
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discriminatory and regressive excise taxxes are. We
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need to keep emphasizing that our interest importance is
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important to the localities in terms of oconv®ics, 1n
teraa of jobs, In terms of corporate citis..nsbip. We've
got to stress freedom of choiee.
Opinion svrvoys nwr shar that three out
of five pe ople inchdiug nori-smokers oo+i say, ne've heard
enough about non-sookers right, it's time to.pritect the
rights of th ose wh o en j oy smoking.
A final chail"o..# our fiaal challenge
in my view is to help promote our brands. The opportunities
are there. Just]ook at 7-Oprs feisty moves against other
companies in the soft drink wars. It's a big agenda.
Building partnerships, internsl cawunications, consti-
tuency building, messages and marketing. But we have
great big res ources, of head and of heart.
We all know that if our opponents can
go after one of us, they can go after all of us. And we
know, too, what happens if we don't do battle each and
every day. Let's not forget we 've got a fine case of the
accomic contribution we mate around the world. And for
giving consumers free choice. Lat's not f orget that if
we work to get it, support f or our industries is out
there.
And finally, Laes not forget that at
Philip Morris, we've got something that's especially
precious.... a great and well-earned reputation. We
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support good causes and we make good things happen,
More than 60 years, Philip Morris has built a strong
image: Weire an enterprise whero quality, creativity,
integrity, fairness, and sensitivity only began to des-
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~ Philip Morris. The reason I submit has something to do
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( with what Philip Morris stands for. We've got to keep
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on deserving that reputation and we've got to keep on
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s legitimate right
~ proudly fighting f or the corporation
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ThatTS our chalienge sad thatt
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~ opporturtity. Thank you. (Applause).
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~ Now itis my very special pleasure to
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z introduce somebody whocsn tsY1 us everything we always
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wanted to know and more about the challenges and oppor-
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tunities that are ahead our businesses and our company.
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F The Chairman and Chief Executive Officer of Philip Morris,
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Inc, , Hamish Maxwel l.
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Those of you whomLght not have had a
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chance t o meet him yet might like to knom that he 's had
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more than 30 years in tobacco business. His father was
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a famous leaf-buyer in his native England.
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Hamish started with Philip Morris as a
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1 salesman in gi.chmnnd when the company was literaliy
2 an infaat. gver e-ince, hets been a part of the team
3 and haa engineered an enozmoars
growth and profitability.
4 A strong batkground in marketing and advertising and
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deft managerial hand, h.s played major roles in making
6 ~ us a world-class company.
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7 ~ I know Hamish as someone who cares about
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people and their perfor.ance# A nice guy who likes, in-.
sists on finishing first,
Hamiah, we ic oeoe t o our Third 6J or ld
Corporate Affairs conference, We're delighted that you
took tive out from your schedule to be with us and we're
looking forward to hearing what you have to tell us.
Hamish Maxwell..... (APPIAUSE) .
MIL. HAMISIi MAMLL: Good Morn*ng and
thankypu Stan. And I would really like to congratulate
y ou on what I thought was a terrific keynote speech, It
really se t the stage for what I hope is a very productive
meeting for all of you.
I think this is my first Corporate Affairs
Conference. I'm relieved to know there were only two
before. But I'm very glad to be here and to try to con-
vey to you my optimism and confidence about our future
together at ?hilip Morris.
John Murphy and Hugh and I have been
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able to make the smooth transition we have enj oyed
largely because weive been backed by an experienced
and dedicated team. And that includes all of you.
. PhiLip Morris has the history of growth
and success achieved by good people and we've done bet-
ter in the past, but weive done better in tb.e past I've
got t o say thag we''re doing now. Tha0s not bad -- we're
doing we 11 now. But we have daoe better in the past and
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p for that reason we're going m have to work even harder
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10 ~ than we have in the past to keep up that good work. I'm
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~ sure werll do it.
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~ Let sae bring you up to date a little
bit on where Philip Morris stands and then touch on s ane
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ambiti ons for our company and on your role in achieving
15 Q our goals. The lastest results for the first 8 months
16 z of 1984 show that in unit seles, 5 of our 6 operating
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17 o companies are ahead of the same period last year. The
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exception is Missi an Vie j o where sales of homes are down
because of high ititerest rates. This is an off-set how-
ever by gains in our industrial and commercial activities
and we're going to have a good year in Mission in spite
of the lower house sales.
Overall, the corporation's operating
revenues are up about 8 percent so far this year. Our
operatig income and net income are up substantially more.
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We should again achieve our annual goal of profit in-
creases that are at least 10 percent higher than the
rate of inf2ation.
Dtcsv let's look at the opesating compan-
ies. In Industrial, demand f.or east of our paper pro-
ducts continues to be strong,and margins are improving.
We're going to have a good year.
-
7-Up this year.Miil muva from into the
red to into the black in terms of income. And extract
sales of both regular and diet 7-Up are at record levels.
Miller has moved up slightly in shipments
and market share. And 5as offset declines in Highlight
and bwenbrau with sales of Meisterbrau and Milwaukee's
Best, our twu njw brands.
Wetre confident that we'll be able to
maintain the momentum although thesix in the productline
is depressing profitability this year and represents a
c ontinuing challenge.
Philip Morris international with solid
marketshare gains in companies like Italy, West Germany
and France, Australia, Mexico, and many others ia showing
a very satisfactory increase in unit sales by 5 percent
so far this year and in profits, despite the c ontinuing
negative effects of the strong U.S. dollar.
Philip MorrisU.S.A. thanks largely to
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Marlboro is again doing better than the iddustry.
Whi.le the indwtry is off slightly in uiteits, we are
up. That increase plus price increases is helping
us achieve a higher level of incme.
you
Looking b4*ind the ligures, most of
are aware that in the domestic cigarette business,
the center of attention has beea pricing and genetics.
Cigarette price competition has been largely knknown
in the United States f or as long as all of us can re-
oiersber, but itx s something that we have lived with in
most of our markets around the world. We pr-obabiy are
as well-versed in price compatiti on as any consumer goods
corporation and we think we know how to handle it.
At the moment, we don't see any need t o
cut our prices in the United States or to enter the 1 oa
price segments. First of all,we know our brands are
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stronger than our competitor's. They tend to appeal to
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Secondly, we don't see generics at the mo-
ment gaining much more than their current share which is
rogghly 4 to 5 percent of the totall market.
Of course, if our assumptions are wrong,
and the low-priced products of our competitors should
start to move up and hrt our grcarth, or to put it another
way, if we felt we couidntt grow without entering the loW-
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priced market and obviously we woW enter and we are
ready to do so.
Overall as I have said, the current ~
trend in cigarette sales in the United States is slightly
dawn. ?aaatim and price increases hove had their ic,-
pacts. But another trend is that the move to ultra-
low-tar cigarettes has flattened out. Sanokers are return-
ing to taste and one reason Marlboro is doing so well is
that smokers aeb it as the good-tasting cigarette.
As you know, we always have some products
in test. We've introduced Marlboro 25's in spokane and
Indianapolis add we're moving into Hartford and Atlanta
this month, two additional test markets. This is a
line extension for Marlboro. In other w ords, it's a
different kind of pack, with each stick fully priced.
It's not a price proposition. By providing a conveniencedto
smokers who use more than a pack a day, we hope to strengthen
brand loyalty and get people who don't smoke Marlboro to
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switch. The results of this test do far
aging - test market.
are very eni our-
We have other products in test here including
Virginia Slims Ovals and we will be out in the msrket with
at least one other new products bef are the end of the
}Teare
Elsewhere in the woxtd, in England cce're
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hating very gaud success with the intrxuctit-m of
&aftles, a V;Lrginia cigarette in 100 milimetar seguient
that has a pack similar to the one used here for Players,~
After reaching nearly a 6 percent share in the London
market earlier this year, we launched Rafflea nationally
in the U.K. this cnunth.
In Australia,.we extended our Peter
Jackson brand into packings of 30 cxgarettes, That's
in a market W}+ere 25's were already very popular. And
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si nce then the
brand has d uuhad
Its roarketshare to 12
percent. And revereeci Philip Morris * weralL marketshara
decline in Auetralia.
Everyone of our opera ting cs u:.panies haq
i7ti1¢'r inilJval:itnlij in the [4o,iSs. That inc.''.l;ldes a[lar;?fiy
L.q,., iw-aicuhol beer ior MilIar which is in te:,t ~~31-
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ket as of last' month.
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0' The sales and earnings of Philip Morris
18 ~ 1;;oK uka,. w'hat about the standing oi the c--xnpani? The
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20 w e,;~en~t universally approve of ai1 that wc~ d:~ ;nti cr~ake.
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21 'z T believe tna t a s a c cxmpany, we ar e wel I-
22 respected, I've already thanked George Yjei.ssman and Qoe
23 C=slffsan ro_ making my part so easy. Bease nuw accept rry
24
11 thanks to yuu, all (i; you in corpu:ation aziaars. icA.tq aC
25 II
Pd ayed abig role. k')u can ar,d must pj.ay {.?vi: 'inu:'.r ;
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positive role in molding tbe corporation in keeping
our reputation high.
What we say we ara, whgt you say we
are, and what we say we mean influence the way we ac-
tually are and what we actually mean. This can help
make us a better and more successful enterprise. And
it's imporrtant to everyone we deal with from empbyees,
communities, to customers. You can and should play a
positive role in activities such as opening and expand-.
ing our markets. The cuopeation of PM International and
our Washington office helped to open up the Japanese
market more for us this last year or two.
Nua wesre working and focusing on new
aQaLkets which have been closed to us like South Korea
~ and TaT~aan,
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z At the same time, of course, you also
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(play a vital, defensive rule in defeating regulation and
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legislation that can hurt in the marketplace and reduce
our ability tu do business,
A year or so ago at a Public Affairs Meet-
ing we had at International, our industry I compared, I
was speaking of the cigarette industry, but as Stan says
all our industries are to some extent under attack, I
cumpared the cigarette industry to a house that had a
fire burning in it and that fire had already consumed
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part of our industries, takmn the groeth in the cigar-
ette industry already. And tl>tat.fire is beiag fanned
by people who are well-meaning in their dwn sense, but
really opposed to us and determined to do what they can
to put us out of busisess in the cs#garette business.
The point about the fire,analogy is that
there is not a fire brigade that we can call. We have
to deal with it ourselves. Only us who are going to be
able to do it and that means s11 of us.
Another responsibility of corporate af-
fairs includes mobilizing all of the available resources
that defend our industries in Philip Morris itself. Those
resources include all of managewents. You shouldntt feel
it ta 7ust up to you in the front rows of the trenches on
corporate and public affairs. Itls up to you to mobil-
ize the management, your managements and the managements
of all ofus. All of us areaready to do it and we just need
toauoperate and to work together to the beat possible
advantage.
Y ou also are the people with the skills
that let the world know that Philip Morris is a socially-
responsible company, a company pledged to theeconomic
health and progress of its tvase ccanounitiee under the
national and world econonies. A company which both prea-
ches and practices affirmative action, equal opportunity,
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and fair treatment for all,
Uur traditions of good corporate citi-
zenship and support of the arts and other worthy cau-
ses have helped us. We have a reputation for excellence
and we all have got to work together to maintain and
improve that reputation.
In short, your skills and the role of
corporate affairs are vital to our progresss
Stan Scott in his remarks has defined
your role extremely well. The only addition I will
make is to express my own full confidence in Stan's
wisdom and leadership.
My other ambitions for Philip Morris are
fairly eimple. We've got to continue being a company of
decent ~uman beings with consideration and respect for
one another. We knnw and we have demonstrated that team
w ork is effective. We mean t o keep it that way. We have
got to -sot high standards of performance f or oursehes
a±ac' reward the achtevement of ambitious goals. That
means the careers and job responsibilities of Philip
Morris people will be determined primarily by the results
they achieve.
At the rowrent, our results are good. But
we willl need to work even i>Hrder and smarter to maintain
and improve on our record.. One reason is that most of
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principal products are in so-called mature industries.
Swone outsiders regard rsrket `qaturity tiith skepticiso.
We think we knvw better,
We know that good companies graa and
~ prosper in sia+ industries, and Philip Morris has shoWn
6 c.0
" it.
7
' We o* have 35 percent of the domestic
~
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° cigarette market and only 6 percent of the international
:~4
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>. market, We have only about 20 percent of the U.S, beer
10 ~
z market and much less than that in soft drinks both in
11 q
~ the U.S. and overseas.
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z There is plenty of room Jbc us to gra+
13 EW_
H at the expense of our c uanp® tittw9 .
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runger n evar,
ur
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~' objective is to grow even more and even faster. We really
16 0
Z_ have a fantastic opportunity. I can't stress this too
17
~ awch. In due course, we may very well want to diversify
18 "~
y our business further and broaden its base as we have in
19 ~'
P the past. We have extraordinary opportunities to grow
20 z.
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' in tie businesses in which we are.
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Otsr position in the U.S. cigarette in
particular is emenseiy strong and this is the time to
make hay while the sun is ehining competitively.
F ortune Magazine is thinking of including
us among the ten most innovative companies in Amerisa. I
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want to make sure that you understand that may not
happen. HaQever, we tried to convince them we were
innovative. (Laughter).
If we don't aiake you see the story and
I w.tre not in it, you see it's a reflection on me and
00
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6° Stan, we;re just not convincing enciugh. (Laughter).
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7 I Initially Fortune, like many people,
8~ thought of us primarily as mairketers. But that's not
u
9 o really what I think we are. In fact, we are a company
10
z that makes superior products that markets them well.
11 ~ Hdpefully, better than anybody else.
]2 U) It all starts hopever, with product. (kur
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14 I new products together with innovative ways to makret
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them and for that matter to do all our jobs more effe-
]6 z ctively, that is paramount.
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~ The economist John Kenneth Galbraith
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Opportunities two years
~ told a Conference on Business
19 0
H agu, so I'm told, aging in an organization cumes when
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20 W excellence is defined as whatever mcst resembles what is
H
21 z already there. That's actually a hell of a thing to agy
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I think. It just means dcxi't go on being so self-coaj~ra-
tulatory about yourselves, your business, all of us, that
you forget that in fact that we may have lost touch with
reality. I don't think that's the case, but it'g a
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warning. Aging in this case also I think means deter-
i oacation.
That's a particular danger in an urgani-
xatian with a history like our's. It's easy to be con-
fident and even complacent while everything is going
well. W"at we need is the kind of confidence anacrea-
tivity that remains and deveLops throughwre difficult
times.
Tbatts gni.ng to take the courage, backed
by judgments. It's going to be meaning taking risks to
gain major rewards. ?'hose risks are gaing to have to be
calculated, but I want all of you to be c:yvcageous in cum-
ing up with new ideas. In all our businesses, John
Murphy, Hugh Colman and I are trying to encourage the
kind of'` atmosphere in which people feel free to bring
u p neW ideas, even if the ideas they bring up have noth-
ing to do with their i~emediate area of respansibility. We
want people to know that they're expected to stick their
necke out and they're not going to be chopped off. They're
welcome to make a mistake or two -- donot wratee too many.
(Laughter).
But I'm serious, if we donRt lose some
sort of - if we don't keep and gain sowe sort of sense
that this is an environment in which you really med to
come up with ideas, stick your neck out, take a chance or
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two, we lre not going to succeed thi; the way we should..
You also have "fio be good at getting new
ideas accepted. Tbat4s .ore thrn half tho battle. 8ven
,
at-Philip Morris, a good idea needs to be.pushed through
~ against the natural resistance of change. Dont' gst
.
(7)
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disc oaraged.
1' In everything -i.}portant we do, we have
8 o g ot to use all the resources that are available to us
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9 o within this co®pany, One of the benefits of working for
10
z a large and successful organization is the availability
of exparience, skills, and ideas. Philip Morris has
12 ran
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-4 these resources and in particular to repeated old mistaicos
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14 ~ through ignorance of what went on somewhere ®lso in the
Q
pride whi:* re -
15 ~ c ompany or through the kind of personal
16 z_ jects ideas that are as they say, not invented here.
~
17
0 That I think is the unforgivable sin.
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~ As a coanpany, Philip Morris has an ambition
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19 0 for all its business in all its c ountries, to increase
20 Z
~ our share of market and to isaprove our profitability.
21
z Your job is to protect our fight to pursue that ambition,
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- thtse in abundance. The rmforgivable sin is to ignore
whic h includes the right of consumers to exercise free
choice in the use and en j oyment of our products .Remember,
we are not alone in facing regulatory andlegislative chal-
lenges. Most businesses are under some kind of attack
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these days. We need to be paritive, not just c#efensive.
We mustn't feel victiaised.
Abwe, all, we can't be trapped by old
thinking. Part of the new exertion we need is in com-
ing up with new ideae. So lett$s be cheerful this week,
rrver the years your jobs have bean done well. To each
of you, I have one thing to add. Bs ambitious each
day to do your j ob better. Philip MOrlris and wants and
~
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I knae you'll give it.
needs the bett you have.
Thank you very asuch.
(APpiause).
Mt. SCU,[T: Thank you very muo,h Hamish
for those significant remarks. They all reveal on where
we are and where we vre headed. And more important'Ly,
on whattg required to get there. I'm certain that each
and every one of uedjriBg ourr deliberations this week
will carry forth your wordaas we conceptualize and try
to come up with n®w ideas and better ways in which to
get the job done. Thank you very much.
I guess what we have here today is a
room full of ambibion ready to make opportunities out
of the challenges Hassish that you've just given ue.
Weire going to start right off by taking
a hard look at our opposition. Can we roll that film.
FIIM SHOWAI.
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DR. SCt1fT: Why do they think that way?
And I;1a turn that question over to Vince Ciephas, our
director, C orporate Public Atfairs and his panel of
eaperts.
M, VINCENT R. CIFPNAS: Thank you Stan.
7
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See what a good job we do in getting our message across
I our TV?
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$° A couple of minor notes. When we conclude
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this panel, there wiii be a short break if you need to
get a cuppof c offee, and s o f orth.
And also after our speakers have had the
chance to take our positions, we will turn to you for
questions in whatever remaining time at that point.
Further, in the interest of time, through-
out this conference, we will rely upon you and your well-
known reading ability to look in the little conference
booklet and to examine as you will the biographies, the
inf ormation on our speakera. And theref ore , you w on st
have to Listen like Vince Clephas stand up heee and either
overdo it or underdo it. And i.tis never quite right. So
we will keep all of the introductions quite brief, but
depend upon you to understand through those reading skills
just who all of these folks are and why they are here.
I tthink it 's just marvelous to look around
this room and find that they built this room to fit our
A-28
l group -- it's just fu11. I khow, we will aIl congratu-
2 late S®ily Later this week on the arrangements that we"ve
3 11 fvund so ntce. already.
4 The answers to, these people that we just
5! saw c ome I Bues s!r om a very simple group of people who
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6~ say: "Flas anybody got a cigarette?" or "~I 'm dying for
7
I a beer, has somebody got something cold to drink?"
8 ~ Those are the pe opLe who are rea l ly out
u
9 o there on our side, We gat all these attacks, and yet
10
~ the sinaple truth is that we have millions of people who
il z want to use our products. And why are all these other
12 vi
people hamaI
ering against thest and their right to use those
z
13 E_
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< products? And consequently, of course, hammering away at.
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~ us those who produce those products? That's what I want
Q
15 :_~
~ to ask our three panelists here. Why are they like
16 z that? Why are they doing this to us? And I guess here
Q
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0
U in private we can take that kind of point of view, that
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18 ~ my G od, they're beating up on us. Out in public, we~ve
19 0
p got to be stronger than that. But we will ask that
~
20 ~
~ question bvth of Leonard Zahn who is a science writer
F
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and long-time associate of Philip Morris. He travels
22 (I
around the world to a lot of conferences on science. Dr.
23
Harvey Sapoisky, friend of us, professor of policy and
24 II
organization at M'P in Boston, add from Washington Uni-
25
versity in St. Louis, Dr. David Pittman who is the Chairman
A -29
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of the Department of Sociology. So I ttiak we can ex-
2
psct something from these chaps. Tllday#re al+1l-qualified,
3
4 We will first call on Leonard ZahA.
LBQdARD ZAHN: - g'eel free toasoke. Thank
5 11
00 you Vince and thanks to Philip Morris for givig me the
6 CO
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(0 opportunity to be here todaq.' I go as` Vince said to a
number of inedical and scientific meeting where smoking
is not per®itted, This is a trend I've seen grvw f or
~
9~ the last 10, 12 years. So it's a pleasure for me to be
15 a
here also because smoking is permitted,
I've been associated with the industry
awn and b oy for nearly 30 years as a public rdations c on-
sultant. fiRy client has been what is now known as the
C ouncil for Tobacco Research. This is an organization
~ that was organized by the major cigarette campanies and
16 0
Z svae growers and warehousemen in 1954, Philip Morris
17 ~
0
Q was a founding member of what I call CTA, the Council for
18 ~
.1 Tobacco Research. And in fact, the CounciZ's first
19 ~
H chairman was Parka Mccormus who was I think at the time
~ z
2
w president of Philip Morris,
21 z
From those early days, there were just a
22
handful of anti-smoking peopZe. That handful has grown
23
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as you obviously know to an army, to a dozen armies herto,
Canada, around the world literalLy.
Their arsenal at the beginning considted
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of a crude experiment in which cigarette tars,.s®oke
condensate was psited ca the bacics of ad.ce. This was
the story, the experiment in the early 50"s that got
Research.
treaendous public attention. And I suppose ®ase then any-
thing else Wase responsible for the indu$try getting to-
geCher and orgaQiaiag what isw now the Council for ?Oacco
~
~
A large part of the evidence against sook-
ing today interestingly, is stittistical, statistical epi-
demioiogic data. I won't go into why I think it's wrong,
not wholly scientific to basm the charges on snoking on-
Z
12 ~'
~ such data which are valuable and necessary. But let get
~
13 ~' me to my assigned theme of why they ttink as they do,
~
14 (,
First, let me identify wh o the anti's are
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15 ^'
~ in my view, Some of them were identified in the film.
16 0
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17 "~
They are both individuals and organiza-
0
U tions, They1re really not many in number, but they are
w
18 a
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~
19 0
effective as he11. They are bud and effective as you
E.., --au avao
20 Z
W They run organizations like the American
~
21 ~
Cancer Society, The American Heart Association, The Ameri-
22
can Lung Associati on. These are the thaee leading anti -
23
smoking agencies, They are voluntary health agencies.
24
They arethe leaders of scientific and medical associations
25
and societies. They are scientists at government agencies,
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3
4
at research organisationa, at medical schools. They
are politicians at every level
-p
national, state, and
lncai.
We can also include certain press peo-
;1., if not the press generaiby.
Most of these people are sane, rational,
honest, dedicated, They believe in what they're doing.
They believe in what they say. They believe that smok-
ing does everything that they_say it does,
But among them are a number of real
loonies - nuts, eatremeists, manadics, zealots, do-
5 1' 1
00
T)
6 02
7
CO
N
~4
9 cc
0
10 ;3:
w
z
11 r-1
Z
12 ~
z gooders. They kncw what's good for society -- whether
w
13 ~ it 's smoking, c offee, alcohol. They knoW whAt 's good
~
14 ~
for you by Gud and you had better listen to them. And
Q
15 ~
~ you saw one uf them in the film, The man in the white
~
16 0
-z uniform with the yellr,w epelets Captain Ahab with the
17
0
u beer, that's Surgeon General Kook. And I have seen him
18 a
~ in action and believe me, he is a dedicated, sincere man
19 O
~
20 z
rx
h
21 z
22
23
24
25
and he knows how to save you from dying.
Many scientists involved in the smoking
and health area lie, cheat, distorp,ignore, omit. Theylrs-
like the rest of us. (Laughter). Itts true. I really
didn't intend or want to get a laugh from that. But
they're people, they're hu®an~e. Except that when they
d o things like that, they have a much more serious effett
A o32
1
2
3
4
5
on their profession and on society than we do.
But why do they think that way?
A number of ressons. Tobacco is an easy
target. The industry as a whole is big business and a
lot of paople, regardless of their profession or walk of
liRe are aaii-big business. And God kncros, the tobacco
industry today and for the last 15 years at least is
8 ~ extremely vulnerable._
~
9 o Ths Cancer 5'ociety, the Heart AssociAtioa,
10 z the Lung Association used tubacoo for fund-raising, t
>> f_~
got a iot oY cney, to get a Lot or puni.tcs.ty ana expos-
country
resent G od
s
of course
re
s
nci
r
Th
,
,
,
,
p
e
e age
z u
e
e,
13 r~ and mother. They can do no wrong and when they issue
~
14 i
Q
15 ~
~D
0
22
23
24
25
statements and hold press releases relating to tobacco,
they are believed.
Politicians use tobacco as awhipping
board. They get puliicity, tbey get national exposure,
self-enhancement, they help faise taxes, they seize on
an issue in which thVy really can't be opposed.
G overnment scientists at agencies like
the National Cancer Institute, the National Heart, Lung
anD Blood Institute, National Institute on Drug Abuse,
use tobabc o to get more funding fr om government f ox their
agencies.
In regard to that iastiaamed agency,
A -33
t
2
3'
4'
5 l[1
00
National Institute on Drug Abuse, believers of that
for the last 2 to 3 years havn besA prvowtig niccotine
as an addiction, as an addictive factor. This is the
secaAd-mc»t serious problem in my view facing the in-
dustry today. And I thidc the NIDA officials are doing
6 a)
~'
that to cover up f or their failure to deal with their
7 C.0'
~
assignment -- drug abuse.
$ ~t
o' '1'l~ie press tidds tobacco an easy subject
~,4'.
9 p' to write about, easy to get into print, it=s a popular
10 ~ topic.
z
t t ~ Scientists, as I've said, most are dedi-
~
12 v~i
z
w ~ ~ ~tb
cated and haemst. But others use smoking a a aa
1.5 ~ a®eans of getting grants -- research funding. Several
~
14 [ have made a full-term career out of attacking tobacco --
15
t5 ~ they do very well. A lot of scientists in the smoking
16 z and health area get publicity, they get invitations, they
17 ~
o attend rotingi around the world. They lead a nice life.
w
18
~, Some people who oppose tobacco are driven
~
19 0
F by an almost religious fervor. Surgeon General COOP is
d
20 W one of them. 1')is type of person is against any form of
21 z
22
23
24
25
pleasure -- whether it's alcohol, tobacco, sex (Laughter).
The church or churches have not been in-
volved to any great degree. The latest most prominent
incident deals with the Baptist Church in NorthtArolina
and I'm sure yuu're all familiar with that sizuation. ItI s
0
N
A
N
M+
~
GD
~
A -34
1
2
3
4
5
6
very recent.
And then thete are the doctors and sci-
eAtists who like many of us, go along with their coi-
leagues. I'll give you a recent example. 1'he American
Association for Cancer Hesearch
the Leading organiaa-
,
M
C0
00
a?
(0
N
tiuia in this country in that `area, held its annual meet-
7
i iog last spring. And for the firsttime, adopted and
~
8° issued a public statement. What was it on? Obviousiy
~
9 o it was on smoking and health. A very strongly-worded
10
~ attack on t©bacco.
11 ~
The resoiution, the statement was prepared
12 U)
msmber of the organisation who was not and is
b
a em
an
y
z
,
W
13 ~' not involved in smoking and health research. He had been
U)
14
~' asked to do it by the leaders of the organization. He
~
15 ~
~ spent three months reviewing the literature and that's
16 0
Z how he put the statement together.
17 0
~ At the mseting'at which the stateement
~
18 ~
~ was proposed and adopted, a prominent cancer scientists
Z:
19 0
whom I've known for a number of years, a sane, rational
20 z'.
F inan, felt so moved by the rhetoric of the document, that
21 z
22
23
24
25
he got up and rambled on a bit and tried to make the
theae that the industry should not be permited to de-
duct its advertising dollars from their taxes.
It was a shock for me for -him to do it,
but he went al ong with hi a c ol leagues . A very c ommon
H -35
1
2
3
4,
caccurrence.
On the other hand, I was encouraged
a few moths ago when I was at a®eating oa stress and
heart disease, to see a world-famous cardiologist whom
5 1' i.'ve knaaA for more than 20 years in a keynote address
co~
6 ~' attack the fanaticism of the antf-smokers. He stressed
Co
N
7 1 the theme that in a democracy, adults can make up their
n
8 0' tywt't mind ab out smoking and dri nking.
~
9 p' This is a very serious danger with sci-
10
z entists who claim to put smo[sing and health In perspec-
t tive. As scientists they're permitted to take that ap-
12 z pruach. But they don't do it, And unfortunately, a number
w
13
k ' o f them dork do it detiberately. They know of the com-
~.
14 1piax2ies of cancer, anct uf heart disease, anti!uf oth9r
15 ~
5 ailments with which smtking has been iir.ked. And yet
16 z they simplify this false situation to a one to one basis.
Q
17
a It ta smoking and nothin$ etso. I think this is a terribly
w
18 ~ dangerous thing for science and a terribly dangerous thing
19 z
P f+rr society.
~
20 ~ Keep ii~ wind one thing that I ha ve be+n
F
21 z saying to the indu9try for yeais, and I think it's only
22 ~
in the last several years that tey're beginning to believe
23 me, the anti's are c,ut f or. on ly one thing, and that' a to
24
eri:adicate cigarette-smoking in our sfxeity. They don't
25 want to restrict ity they want t5 destroy the i"tJ~J9t7.'y.
1
2
3'
4
They aent to wipe eut smokittg.
Why does the public thxak the way it
roee generally? The public, like many phyeiciarrs and
rany scientists, gets ibs information ab out smoking
5
CO and health from the ciedia, daily newapapers, the news
CO6 ~'
magaine®, radio, and teievisicn. And what they reasi
CD
N
7 I and hear cumes ffan these relatively few camparativgly
~
8~ f ew anti-smoking leaders.
u
9 O Thank y cxs . (APPIAUSF. ).
10
~
MC[)F.RATCR CLEPTr}AS. Thank 'y+Jt,t
z -
t t z r1e '1], go right on Harvey Sapotsky.
~
12 ~
HARVEY MPOL:~KY : First, I want to say
z
ua
.
13 2
d
.
dis.qpt~vit~tnd T., mm that I o~ gr~{n~ to ~{ r~s r.he ~ t~~-'.bcir~I
F
w..
14
'
I
m nnr ,`ang to
Cookrnat, "?'hey cnovac it to - dPy that i
ca
15 ~a
~ be here. I was looking :forward to seeirg the MarlborFa
16 zman making chil#i in this Benson and Hedges aettir.g. It
17 2
0 woutd have been fun to see. (7.At1GHTER).
w
18 ~ t,at Iet me turn to the subJect tu"Jsy
z
19
0
ave to worry about is not tho
and what I think
ou b
.
y
N
~
20 WhAZiefs and motivations of the xti3ti°amokinry leaq,,~rA, N
E_
21 z CA
22 t;`-sA beliefs and the erativations of the puQiic at large - A
N
N+
the smokers and ncn-9ookers alitc2.
~
23 ~
24 The a.eaders of s ocia t rnavemsnts :,01ton W
25 bxve str2n,e azyd t»t;ndeYful, bel.ief.s. Pu!`
ta;~ir follcyaers r?Y13.r shsre the san^:, tde,39. ~-ii
A --37
1
2
3
4
exastple along these lines is the floridation contro-
versy. I pick that because that's wher. I made my
9mall martr In my disciplin., so that's my favurite
example. But in tr.,at siL-uatiofl, you'1l rene.+ber that's
the addition of fI via:da cc~upounda to the water supply
t u reduce touth decay. And tt1>en that was first being
prvpcsseca., there was lots of uppusitiun and many refer-
0 enda on the auh jects were defeateci. And much 3ttenti on
x
9 o wss placed on the leaders of the anti-f3.oriuataion move-
10 zn-:-rt 3rd t,h:; ac:alysis shuwed that they were terribly
t t ~ilieirated fr uas s ocietyr. Many of' them believed that flar-
12 b~i
z
13 EW-
~ st:Ir,r r>zat: ara ccmauraist pluts - it was probably not
~
14 (
22
23
24
25
`" i:3ation was a connunist plot as you'll recall. Well I'm
floridation that thu comuaists were working L,n at the
dime. 3ut navQrthaless, that was the beiief lUz many of
the 1$aders. And they taQk off after flvridation and won
maay of the -,ampsigns.
3ut I think it was ans.atake to focus
on zh* pulice t4a tAaders, 'Vecause the ptsalic wasn't
w± ianated Xiice tZha 1~:adera, but ratrrer Vote pubLic was
:,impiy jiist warridri abcmt its ;ie=Yi; h dnd unaiii.ting to
z:i,sk tha :Lealta +.)'I themeelves and their chiis:en on what
:hjuah' :ia4 an experx4ieiit to - a raaae experiment aL
:it) thv analy3is .;A' t'rie atticudes and
A-38
1
2
3
4
motivations of the smoking Ieaders I think is mis-
leading to understandig that issu+e. Amd I think the
same thing applies to a l.arge extntto the swoking c9rr-
troversy. The anti-smokers may be motivated by all
s ort s of w cnderfu i idea s. They may have a psth oi c#1ga1
hatred f or big business ae was mentioned. They may have
I a desire to attone for the loss of a loved one. They
1i
8 `O
0
22
23
24
25
way have a belief in their
moral and physica i
superior-
ity. Or they may Hesire to maintain their organizations.
But the public doesn't necessarily share those beliefs.
What the public is worried abnt is its
health. And they've learned that many of their c3onamon
consumer pro<iucts contain risky ingredients. And they're
afraid uf being done in by their morning cup of c offee
or the ir af tern oon hershey bar.
Now these fears of course, are reinforced
and exaggerated by our society. The advertising for
competing products mention those awful ingredAents. The
media is aiways Zooking fora story and promotes them and
aciantiats are always looking for some new research topic
tu pursue and to promote. And that is not that the haattln
of the Americans is improving very rapidly. Peo0e believe
that their health is at risk. And I think that's parti-
cuiarly etrang in the cigarette case. I think the cigar-
ette iasue has gotten to the point where there's realty
A -39
1
2
3
4
5
CO
CO
6 COOO
7
8
CD
nothing that can be done Aout the health issue. You
can'C be believed and I d©n't think even smokerswiii
join you on that subject.
AIL the non-smdkers I know now have an
alergy to smoking. And that was 20 years ago, no one
had an allergy for smoking ai far as I know. No+ they
N
I all have an allergy. ANd I think that's just a polite
~
cO
0
way to say tlrey Ire scared to death of smoke in the stmos-
~
9 O phsre.
10 z Arld aII the smokers I know, perhaps this
lt ~ room being an erception, feel terribly guilty about
t2 z their practice. And as a result, there's a great ac-
13 H
~ ceptance for the segregation of smokers. As we knaw,
W
14 I there 'a non-smoking offices and non-amoking m3etings ex-
15 ~
~ cept for this asA, and smoke-free rental cars, and amcake-
16 z free motel rooms and smoke-free moving vau. And worse,
Q
17 a
0' there's discimiation now about smokers. My secretary
18
~ as we were leaving for this confrence, she was looking
19 z
ro for an apartment -- ahe's a smoker -- she waa looking ±`ar
44
20 z
w an apartment and she wasn ~t Looking for a roommate, she
E-
2t ~,z was looking for an apartment. ind she discovers that
22
23
24
25
many of the aprtmsnts are nov being advertised as smoke-
free, even though she's going tocccurpy it by herself.
And that's discrimination.
And there's a Is o j ob discriminati" that' s
1
2
3
4
craring. All the advertisements for sAcreteries at
my ine titution naa contain, often contai.n the phra:p
this is a non-smoking office, ad they won't hire sme-
kers.
5 1 ', Well I don't think you can deall with..
CO6 2.0 ' 2
7
~ pubJ.ic e rear of the heaith rears, but I think you
~
I ought to be able to shift the guilt. And for disCrim-
a°±nation, people ought to be told that they"re prattic-
x :
9 o' ing discriraination. I have ecime what I think are out-
10 zla.ndi.sh examnies of discrimination where theyy really
i l ~' aren rt be ing cha llened.
~
12 vi
z
13
I
~
Federal 6ar Exam. And I assume it's a tense expecience.
~
14 ~ 1 haven't taken it, but I pr, esuanE- that ®mokera who hava
~
15 ~ taken that wcwldn't mind:lighting up avery once in a while.
16 0
~ Rut shb wasn't permitted to do that. She was marched out
17
0
every hour f or a cigarette break out in the hal l by a
w .
18
a
~ ri-irsha?1 and had to stand rhere and waste time on her
19 z0
~ exzm while the non-smokers were allaaed to continue. I
~
20 Z
~ ti2j_ak that's unfair - discrimir+atury.
~
21
22
23
24
25
'" A friend of mine a few years hack the
I've also seen clips in the newspapers
that there are naw Jury rooms, I think the state i® Oregond3hYe there's no smoking around. Perhaps
it's more wide-
spread than that. That's terribie. Itl's unfair to the
reuple on trial. aa well. as the pegip1e who are on the
A -41
1
2
3
juries. And that's discrimination. (Laughter).
I accompanied so®eons to en- emergency
room and I was in the waiting room. And they don't a1-
4 iuw smoking i.n the waiting ro,cxs. That's discriminatory.
CO
LI) 6 00'
People are waiting there for aheir loved ones, maybe a
~' terrible accident and they're nut allowed to show any
~
7
( signs of bein human and sa~aki $ ng at that time. They're
.
'IT
8~ supposed to go out in the rain or something lik6 that,
u
9 o if that's unfair. And something ought to be daie about
10
z that.
t t ~ A nd then there a ls o, s ome thing ought t o
12 M
z
13 H
~ su oppressed. Ilf smokers are going to be in the back
U)
14 1' of the atrplane, that ought to be the place where triere's
Q
~'
15
~ free m+}vies or free drinks or something to reward them
16 z f or their experience as oppoeed to penalizing them. If
17
0 there's going to be smokfngcasre on trains, they ought to
w
18 ~ be clean and well-ventillated. As I understand from the
19 z
0
r_aewspapers, that's not of ten the case. And if there's
~
20 Z
W going to be no-smoking sig'ns in offices, then there
E-
2t z ought to be signs in other offices saying this is a friendly
22 II
23
24
25
" be done to buck up the feelings of smokers if they'r
ofgice,your peftle are wmi4comed to come here and awoks.
And what I'm saying is that you shouldn't took toward to
the attitudes of the leaders of the anti-smoking movement
assuch as the attitudes that are prevailing in the society.
b -42
t
2
3
4
7
And if tbe discrimination i,s involved, it aught t u be
poited out. Mr+rewer, if ttwrils going ea be separate
facilities, there ought to be at least equal facilities
and better yet, there ought to be better facilities
made f or pe ople wh o reake the choic e not t o sm oke .
Thank you.
~
I MEmSRATt7R CIRPNAS: Thank you. And now
V
8~ with a somewhat ahift, sooAething of a shift in our per-
~4
9 o spective, over to alcbhol, David F3.ttman.
10 z DAVID FITZTSAN: First of all I id like to
ii
~ say it's a pleasure to be here at Yhilip Morrie, Most
12 z' of our experience has been with the United btatea Brew-
13 F ars Association which unf urtunately Miller is no Icx3ger
14 I
a member. And with the Distilled 5pirits Institute.
15 ~ What I want to speak to you about today
16 0
z explicitly is the threat tuWards Urinking behaviur and
a
17
0
the blurring of the line between abusive and moderate
18 ~
~ or infrequent drinking.
19 0
E- Probably aaost of' yuu assumed that with
~
20 ~ the pepeal of prohibitio~n in Daceaober of 1933, that the
~
21
22
23
24
25
warfare over the manufacture, sale an6 distribution of
alcoholic beverajes in the United btates and in most parts
aEthe Western world was passe. That huwever, is no ionger
the case in 1984. As earLy 1976 in preparing a working
paper for the U.6.B.A. And I was struck by that this
?t -43
morairtg, that I had noted that therc were nine action
: agenda iteos for what are texvied at that time the nao-
3
prehibitionists. This was scme 9 yeers ago. That nd-
4 vartiaing restrictions in bevesal alcohol including ads
c an ms
t3 I t
ic di xould
d i b th i t
5 b b
~
~
6 °O
n
s
r
eing nn+~ n o pr a a e e
a
~ b e c oming 3 orth.
~
7 ( This su~r iA'Boataa I ras one who
~
q gave the caunter-artu.entbefine the National Conference
8
u
9 0 of State Legislators at which the Alcoholic Inaustry
10 z had united for one of the fera3imes in recent years to
tt ~ beat back this motion at the state Legi.slature, and that
12 c`~n
z
13 W
Also that alcoholic beverage udvertising
U)
14 ~$s a business tax deduction would be dissllcsaed. *arsda-
t5 ~ t ory health warning labe ls - I vas caught u~ ir t~,a t fight
01 16 2_ beiore the Congress of the United States in 1979 with the
17 Q0
entrepreneurial senator William Hathaway of
~
18
~ Maine attempted to get those health warning labels plncad
19 p
~ or. containers of alcoholic beverages. That i:g she was
d
20 Z
fir$d from DIAB that is Eurfacigg a;air: under the illu9-
~
2t z
,i trious leadarshipT of Pauia Hawkins, the aerrel entrepre-
22
23
24
25
- was a very positive thought.
naur from the stats of Florida who is now in charge of the
Senate A lcohol and Dtug Abuse G omittae. S o woo be unt8
us in the 1985 congress is the Republican majority is
maintained,
A -44
1
2
3
4
5
6
7
8
Also indicated that there would be an
inareasing activity to raiws the miniow purchase age
I and here 's the med ia's msde a tresaend ous ,srr or in it s
discussion of the issue - they talk about a legal drink-
ing ap. Congress has no more passed the legal drinking
00
Go
~° age or legal consumption age than lbc. Scott wants to
~
~
I provide alcoholic beverages f:or his children if he has
IT
o any as perfectly Legal and the government.has not in-
~
9 p truded, But the media has made it appear that the legal
10
tt
~
W drinking age will become 21 years of age. That's absurd,
z
~ and personified.
12 ? The purchase age will go to 21 despite
z
13 ~ all of the lack of success in California and Missourt
H
00
14 1 and In enforcing this particular law.
Q
t5 ~D Increased taxes at the local, state,snd
16 z federal level on beverage alcohol despite siumping sales
17 o and distilled spirits and also aiuonping sales and the
U
~18
a,b.er industry which is a mature industry. And a wined
.
:C
19 ~ glut in the United States, 1955 which will be the year yr:
'
1<
20 Z
which the turkey or the goose of the beer industry is
E--
2t z' going to be gobbled at by the massive deficits which
22
23
24
25
confront the United States of America. So don't pat
ourselves on the back and say, well distilled spirits
or hard bnoze got it last time and nothing is going to
happen to dear old baer. Ws the ;ood-oid bIue-calar
A -45
1
2
3
4
7
22
23
24
25
ro
N
and w.'ve got tremendous allies. I think everybody
got snuckered on the 21 year age thing by thinking that
since the President of the tJnited States was opposed
to it, the work was not doae fsz the state capitols, it
was not done in the federal legislative branch, and all
of a sudden the moral entrepreneurs or the mothers agaist:
drunk driving or move intoxicated drivers, everything was
getting straighted out for the1984 election.. Boomo -
here comes the 21 year eainimur purchaee age under the
guise that we were protecting all of the innocent and
young individuals.
The agenda goes on and on. Mandatory
earmarked taxes f or a1c oholic rehabilitatiun. Y'uu're
going to hatie a iot mure inf ormatiun being placed out
on the poor; hopeless, helpless alcoholic and chere's
always a very good answer to that -- alcoholic beverages
are being taxed oxcessieiy naw and the funds for this
should come out of general revenues. The agenda is very
much alive.
Now the sociological question is why
such a vigorous onslought on alcoholic beverage usage
tn the United States today and throughout western Europe?
One would say that prohibition reallynever
died in this country and it really never died in Western
Europe. The almost like a v#.rus, it has lain dormant
A-"
1
2
3
4
5
in the society.
In recent y.ars, the analogy has beea
used that alcohol.which legitimately is a drug, is
r+taily anestitizing the country and furthermore, car-
Co
01)
6 0°
ryig this one step further, the whole barrier between
" moderate drinking and abusive dr#nkisrg is being obli-
7 ~
7 I teratedo
~
8 o Now I think to understand why the obli-
~
9 o terati4m between moderate and abuse drinking has occurred,
10
w one has to look at what I refer to as the new moral entre-
z.
11 ~' preneurs that have c ume on the seene, b oth fr om the pub lic
~
12 r
n
z.
t3 ~ taik about the pub9.~,4 ,aector, but think itIs more to the
W
14 II poibt to go to the year 1970 with the creation oE the
15 5 National Ins titute on A Tc ohol Abuse and A le©'hoi,iam which
0
16 z was to pr ovidc, treatment services f r,r the chronic, addic-
17 ~
0 tive alc oholic. Since 1970, the National Institue on
w
18 a Alcohol Abuse and Alcoho],iam has been disseminating a
~
1' p r
P g.,oup of propagandistic materials and ?tr. Zshe, I couldn't
20 Z
agree with you more, that bureaucrats, academicians,
w
N
21 ~ scientists "lie, c:heat, diatorj%, and are abo very entre-
22 preneurial in their careers.
23 II Due to the inadequate funding as they saw
24
25
- and from the private sectors,, Originally I wae going to
it, compares them to the drug institute, the meMal health
institute, the lung instttute, the cancer institute and so
A-4?
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forth, they had to create epede"ca to justify their
eaci.tenae and their increased appxopriation.
ikre can only look at their press releases
over the last 15 years and one will find the problems
intimately related to alcohol uses fatal autwnobile
crashes, homoaides, property crimes, aggrivated assaulta,
suidides, hame fires, aircraft accidsnta, boating acci-
dents, spwse abuse, rape, birth defect; liver serosis:..
It's aLmost like ae cataiogue of social evils in society
that the moderate use of alcohoiic beverages by indivi-
duais who c ommit hcmd.side then becomes the pcptnatory
variable for the commission of haoiaide itseif,
Alcohol equals crime; alcohol equals
child abuse whether its moderate or abusive. Probably
the greatest success has been achieved in something that
was discovered generations, centuries ago by Aristotle
that heavy excessive consumption of alc ohoiic beverages
created or brought about the condition for defective
children. But to listen to the observers from the acs-
demic cc~aarunity particular medical schodf, .yop would feel
that the fetal alc ohol syndrome just was discovered in
1973 under federal governmental auspices and nom it is
reached the point that almost every female is frightened
to death that if she has had one drink of wine, one can
of beer bef oce she even kn cxws that she 'a pregnant and an
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there in front of the cash register. This is supposed
to the center of enlightenment. That would be laughed
off the streets of Milwaukee and 8t. Louis, great beer-. :..
producing centers that they are. But the moral sintre-
prBaeurs are there. We cannot accept the fact that the
accident happens -- and I put that in quotag -- of a
child who fs mentally retarded or who is hyperactive
ar so forth, it was due to that obe can of beer that
this particular wa®an drank. That's how bad it has
bec o14e.
Naw York City now 13.ttle posters up
12 can
government to which your taaes are being paid, that
z
13 ~
~
F burocrats mat create problems, epidemics and magnify
~
14 {
Q
those epedemics to increase their appropriation. They
1'5 a
5 live only for escalatian of propa. And that is regardless
~
16 C~
z_ of the party which is in control.
22
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Move ovr to the private sectoY and you
have my friend Mr. Jacobsen on the television there - a
microbiologist by training.. No scientific credentials
whatsaever in this particular area. Yet, the madia loves
him. Why? Because -he 'e controversiai-. And alcohol is
c ontrowerdal.
His recent book from the Center for Science
in the Public Tnterest, what a name. Who knows what the
public interest is. And he surely isn't a scientiat in
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this area. But none of uo is quite abbrasive enough,
e*cept *ar a few of us, to day that he doesn't have
the credentials. None of his material hs ever been pro-
duced or published in a scientific peer referee journal.
And none of the media people will ask Mr. ,Tacobsen why
don Et you dubmit it to peer review for saepie, let
I your colleagues look at it. - There's nothig but sheer
$ o
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propagaada. And it is pl.acod by the media as being
scientific truth, But people such as Dunohue on whom
i've appeared, they i we c ontroversy. S o they m3ke good
livings of that. Yhey rra entreprsneuria 1. And as Mr.
Msaweill said, I'm sure that their sales have increased
snd their pitofit ssotive has gone up.
Ttieu we get int® the act and it's not to
be derogatory, the moral entrepreneurs who have beeu hurt
severely and who have organiaed themselves and make a
career out of it. Mottrs Against Drunk Driving, r'®ova
intomicat®d drivers, students against dYunk drivers.
And I think the Sndytry sowt.irnes does itself a disser-
vice by what I call the appeasement techniquo: of pravid-
ing funds to these particular organiaations as one group
did recently to students against drunk driving. Or as the
Wine.Institute did in capitulating on 21 yeaYg as being
: he legal drinking ags. These moral entrepreneurial
gr,oups cannot be appeased. You cannot give them an inch
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or to use the old saying, to give the® an iacb, they'll
take a sM.le an you. Dm't feel that tbey will accwimodate
for in the final anaiysis, the hialth goai is paramount
and 3,n the alcohol area the blunting between moderate
511
drinking and abusive drinki4is so blurred now that
~
~
6~ despite the protestations otherwise, the goaal is to go
~
7
~ forth for a reduced consumptioe of alcoholic beverages,
~r
$° not quite as far advanced yet, but with an ultimate goal
x
9 0 of an alcohol-free society. But it will be done ostensibly
10 z under reduction of consumption, doing away with advertiae-
11 ~ mants of the electronic media so we NilZno longer have
12 vai
~
ou
Wiif
er tiome or Sed tiiae or Coors time or ~ahatever
,
z
y
13 H
~ have. And furtherasore, the other major isaue that will
~
14 I
be fought in the next year is the taxation iseue on beer
Q
15 a
~ andwins.
16 z
nd lastly, the increasing attempt to
17
0
cbreak through and find new epedeoics and I'm sure we will
w
18 a
y eee that most child abusers have bean drinking when they
19 ~'
F abused that child or most sexual abusers will have been
20 z
W; drinking when they did the sexual abusing. It's the
N
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linkage of inappropriate behaviorwith the use of alcoholic
22 ~
beverages whether it occurred or not. N
23 ~
I cannot reiterate too much to you that ~
24 ~
the individuals who are the moral entrepreneurs here ~
25
have a profit and lose statement themselves. They are
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interestsd in increasing their profits. Governmental
agencies through appropriat6cas; private agencies through
increased oe®bership.
And in conclusion, this is also a aes:Id-
wide and I hate to "y it conspiracy, but *e individuais
seem to have unlimited govr-mr-tal and private resource
funds to g-o to the world Realth Qrg,anisation t+ntalk about
the internationaiiaation of the alcohol trods. The plot-
ting. of alcoholic beverages
on p oor, undeve 1 oped na ti ons
in the third world and so forth. And an attempt has
been at that particular area to staket alcohoi responsible
for the loss of generations of aambien psychiatrists who
the undermining of the health of the undrdeveloped nations
of the world. Because it is not only national, it is
also international in its movement and tragically sp"k-
ing funded basically by th. tax dollars.of the western
countries of the. Untted STates.
Thank you very;such. (APPLAUSE).
MGQ)ERATCR CIEPHAS: We'll take just a
couple of questions and then take a break. If there are
questions...
Q18;STICH: I have a question for Mr. Zahn,
In yesterday's I9sa York Post, there was a full-page arti-
cle on ambient smoking. Ono of the statistice that I re-
called t3: om the article was that ambient smoke gives a person
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iA a room 46 times more arsonis, five simea morscarbon-
dimcide f rsr the smoker himsetf. Nuber oise, if I'm
not ab.staken, that's ju$t snt true. Aad secondly, sy
question is two-fold. tne, where in *#e heck did they
get those figures? Secondiy, wtfat would you rec,ommend
w s can do. T1tey're takivgthis goslpei.
Mt, ZAHN: Did a1L of you hear the ques-
tian4 Paisive smoking is ths`industry's most serious
problem now. I call it passive smoking, others do.
Still others call it environmental tobacco smoke. I
don't know where the data came from but you can generate
data from almost any source. I don't knaw whether it was
a contrived experiment which would be totally unrealis-
tic to any kind of human situaticm. There have been ex-
periments in which they have put smokers in a very small
room without any ventiliatioo and had them smoke 2, 3
cigarettes,each within an hour and they find a load of
materials in the ambient air. It doesn't mean anything
as far as life is aoncerued, real living is converened.
But that's haw the data are generated.
I think you meant carbon monoxide, not
carb on dioxide. How does the industry refute this? It's
very difficult. The industry through the Tobacco Institute
usually commeflte on ma#or stories of thatparticular nature.
They comment after the fact, saEturaily except in those
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relatively infrequent occasions when they know of
something io advance. The tudustry's c+©®rseat does
go6 into print in reduced fore usually and as a tag-
xine to a story that most p.opie never gst to see be-
~ cause they don'fi read down that far. It'a a very
~
6 ccoo
7
~ tough situation, very diffiault.
~
~ MCCBRATtR CIX.PMS: Thank you. Any
~
8 ~ more?
~
9 0 Q>t$: TI ON: (NOT HgARD )
10 ~
z MR. ZAHN: Yes, that's true. I think
11 ci
I can best answer you by telling you what a science edi-
12 v`~i
tor of a me4
ood friend
ar daii
nees
er who is aiso a
e
z
p
g
y
p
13 EW-
14
~ of mine said to me a few years ago. He told me he would
Cn,
I tever carry a story that was "pro-tobacco" regardless of
I
15! ~
Q
,,the source. And here supposedly is a reporter who was
16 U
~ there to report the news. That again is a very dangerous
17
0
terrible kind of situati on. I d on't think he would adhere
ra
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y t o that fully, although he was dacnned emphatic when he
19 ~
p said that to me. And yet he'll attend Cancer Society and
20 ~4
~ Heart Association press conferences and meetings and re-
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port without too much critical cumment or questioning on
what they have to say dvut tobacc o. Very very c asmon.
MGDERATQi. C1lPHAS:' Thank you. David asade
reference to the international aspect of these movementa
and it's true of course in the tobacco business at least
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as much as in alcohol, prhaps mtaire, And with that too
many of those organisations are religious Ict nature,
They eoms forward.
MR. PITTMiN: In the alcohol easenent
it's particularly, and Sc ott made reference to this, the
World Health Association which has a sub-cnmmittee on
the Internationalization of the A lcohoi Trade. American
alcoholic product and British alcoholic products are being
pushed almost like a drug.
Nit. SAPOLSKY: I have a comment on an
earlier question and some of the comments by the other
speakers. c3Qe thing I tlink you can't do is to attack
your opponents on the basis of theirecientific credentials
because I think the public can't tell the difference be-
tween an engineer and a scientist and one kind of sci-
entist from another. And the fact that Mr. Jacobsen has
g ot a degree in micro-biology and he's talking about al-
cohol doesn't register I ttfink with the public. There's
,still, they w ould view him as a scientist, even though
he may not in a scientific meeting stand up as being one
of the mo#t outstanding scientists, And so trying to
attack peoples' credentials I think is a losing propos-
ition if they had any marginal claim on being a scientist,
MCDSILAT{R CLEPHA ;: 1rA[y I conclude with one
question? And to just all of you. Ar6 these particular
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industries targets in the poass particularly becauae
it looks like a quick and essp solution to some very
deep sociological prc>blemst
MR. PI'!'Tl~1AN: I think that nothing il-
lustrates that better than the cheapness of incruaing
the Iegal purchase age to 21 years of age. That will
make a lot of people and media ieei that something is
being done about impaired driving on the part of the
population and it doesn't c ost anything for the federal
treasury.
11 9 Mt, SAPOLSKY: I'd agree with that.
12
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13 Ew
F
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V)
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I think actualy the cigarette industry at least comes
out pretty well in he media 3nterms cf the amount of pub
licity given to other issues. And I think that's an
aftantage for you as opposed to being a disadvantage in
the media. The c mcern f or things like EDB and caffeine
also comes up deflects from the attention that could be
brought to cigarettes which is I think quite large, but
it would be much larger if we could have the media chas-
ing these other issues all the time.
Mt9DERATi3R CIEPHAS : I want to thank all
three of our speakers. Thank you all. (APPLAUSE).
25
