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Diversification a Trend .. 3 ;~.- y :~c.;-,_~ F-._..- J;•rvP , .. bacolndst's Bi Bys : ocurygu,. ; By Lawrence White THE MEDICALCASE AGAINST SMOKING is OppositiontoSmoking is one of the few now proven beyond a reasonable doubt. At genuinely nonpartisan public health issues. least 350,000 Americans die each year of Conservatives such as Senator Orrin Hatch smoking related diseases. Lung cancer, of Utah and liberals like California Con- which is almostentirelywused by smoking, will soon replace breast cancer as the num- ber one cancer killer of women. Even more people die of heart attacks as a result of smoking than cancer. Emphysema, a horri: ble lung disease that suffocates its victims, afflicts primarily smokers. Over 40,000 studies of its health effects show that smok- ing is harmful. The overwhelming majority of doctors agree thatsmoking is the number one preventable cause of death and disease in our society. gressman Henry Waxman agree readily on the menace of smoking, even if they don't always agree on how to deal with the issue. Indeed, the R.J. Reynolds'adsth'at purport to discuss the "controversy" about smoking are intended to project the image that there isstill a controversy. In fact, the only people who defend cigarettes any longer are those who make money from selling them. These should be deservedly dark days for the people who make cigarettes, but they are , - , CONTINUEDONPAGE6 PUBUCATION OFTHE AMERICAN COUNCILON SCIENCE AND HEALTH • 1995 BROADWAY • NEW YORK, NY 10023 (212) 362-7044 Inside Bottled water - better than tap? PAGE2 ICecream - Islt Jt. good for you? PAGE 12 Dangers of vitamin B, PAGE 14 Recommendations to keep you healthy ' • ' PAGE 15 JHE NEW THREAT OF TOXIC TORTS which poison or contaminate persons or places. In this article, the consequences of over-use of In currentusage, `toxic torts' refers to those cases of injury caused by any of the array of agents litigation are shown to establish quite another definition. = . By Elvoy Raines A DISTINCrIVE FEATURE OF MODERN AMERICAN CULTURE is the choice of litiga- tion as the preferred method of dispute reso- httion. The election to sue - as opposed to . arbitration, mediation or bargain-to-com- promise - has implications for the legal process and even greater meaning for the individuals and industries targeted by the injured of body or sensibiGty who become plaintiffs. Claims of tort, or personal injury, prompted by perceived failures of product or performance have reached record num- bers, with an astounding impact upon the availability and affordability of insurance, The consequences of this evolving crisis of .'toxic torts" may be inestimable, but the immediate imporr is clear - we are suing ourselves ognof business, and in the process, diminishing incentives for innovation and product development while increasing costs to individual and institutional consumers. Litigation in the United States is epi- demic, and the frequency and severity of lawsuits forpersonal injury and productlia- bility are reaching new heights each year. No industry, profession or social institution is safe from our predilection to sue: aceount- ants, architects, attorneys, clergy, banks, physicians, engineers, savings and loans, cit- ies and towns, chemical companies, drug Across the nation, 20 percent of obstetriciins have raised their tees more than 30 percent in the psst two years to keep up with increases in liability Insurance ntes. houses, oll and gas corporattons, and cont- puter firms - all are facing a new reality, that of being sued or so threatened that insurance against loss is expensive or not even available. - The purpose of this article is not to dimin- ish the existence of injuries which are deserv- ing of a legal Yemedy; ratherit is to point out that the overutilization of litigation weakens the system than serves those who do have a r-•,~x legitimate claim. Too often, marginal ques- tions of insult or affront reach the courts simply because there is no proper dispute_ ~'_ resolution mechanism. At the same time, then, certain legitimate claims are shoved aside or delayed because of crowded court dockets. For instance, litigation currently in progress in many states regarding the liabil- ity of cigarette manufacturers for injury or death ofsmokers presents a legitimate ques- tion of responsibility for injuries which quite obviously resulted from smoking. The important question to be answered by the eournis who is responsible - the smoker or the manufacturer. Thatcase has had to fight for access to the court, competing with other CONTINUED ON -AGE 10 W

a 19 2 By9ohanna M.Omark Botded Water Healthier than Tap? UTIL 197Y 607TLED w'.4TER BARELY MADE A RIPPLE in the U:S. beverage industry. Then Gustav Leven introduced Perrier, a spar- kling mineral water from Vergeie in south- ern France. The company spent $4 million annually.to promote its beverage as a"natu-rat" alternative to soft drinks and cocktails. The advertising was directed to the health conscious who comprised, a fast-growing,., avant-garde segment of the population. Sales rose from 3 million bottles in 1976 to almost 200 million bottles in 1979:. Perrier's success accelerated the bottling of domestic bottled'waters. Water bottled in ~ the U.S. easily beat the price of imports,, because of high shipping costs. Growing public concernn over contaminatloninmunieipal supplies further encouraged'the switch from tap to bottled'water. 6 L Today, Americans drink7hree times as much bottled water as they did in 1976, and consump- tion is expected Yo'double by 1990.55 Today, Americans drink three times as much bottled water as they did in 1976 and consumption.is.expected to double by 1990. Imports and carbonated mineral water accounn fon less than 10 percent of sales,, while bulkp,urchases of non-carbonated drinking water account for the remaining 90 percent. Per capita bottled water consump- tion is almost 4lgallonss a year„with Califor-nia alone credited with half the total con- sumed in the U.S. Ant' while health may be the primary motive behind most bottled: water purchases, there is no scientific evi- dence to support the view that bottled water is healthier than aap. Wells, rivers and streams form the source of most municipal water supplies. Bottled water sources include privately owned wellss and''springs and municipal supplies. AII source waters contain varying amounts and mixtures of carbon ~ dioxide, mincrals and organic compounds. All waters must be fil- tered to remove impurities and treated to prevent bacterial contamination. Other treatment processes may be used when a change in flavor.orcomposition is desired,.. Municipal supplies areusuallye trcated with chlorine gas orincreasingly with chlor- amines for disinfection. According to the International Bottled Water Association ( tB\\'A), an industryy trade group, most bot- a 7•J © LM " l . :' V1 lll hn. Spr'ing Water tel-Ac a M tld•d water companies use ozone (0,), a form of oxygen, jordisinfection. Ozone is consid- erably more expensive than chlorine„but it lacks the aftertaste or smell some people find offensive inchlorinated water.. Wfienused properly, ozone and chlorine are equally potent as disinfectants. However, ozonee is lessstablethamch'lorineand less potent as a long-term disinfectann. The filters used to purify chlorinated water supplies are manufactured from car- bon to remove any free chlorine generated during the disinfection process. Free chlo- rine hass beem found to~react with organic compounds to form trihalomethanes. These compounds are suspected of causingcancerg or causing genetic mutationswhieh promote cancer. Thee levell ofl trihalomethanes in municipal drinking water isstrictly monid tored and regulated by the Environmental Protection Agency (EPA)) in cooperation wiih state and local governments. Trihalo- meth'anes in excess of 0.10 milligrams per literi(1IXl~partsper billion) arestrictly, pro-hibited. Levels below this are, in the best judgment of scientists, free of any risk to health andcompletely, safe for human con-sumption. The use of chloramines, a group of ammonia-chlorine compounds whi¢h are less reactive than chlorine gas, has increased~ in the effort to minimize trihalomethane formation. III Frac Growing concern overconlaminativn in municipal supplies encouraged the switch from tap to bottled water. Perrier sales rose from 3 million botlles in 1976 to almost 200 millionn battles in 1979. The Food and Drug. Administration. (FDA), which establishes quality standards for bottled water, also sets a limit of' 0:10 milligrams per liter for trihalomethanes- All'bottled waters including imports are subject to this regulation. Bottled' waters from a non-chlorinated source are unlikely to need treatment to maintain safe levels of trihalo- methanes. LL To remain free of bacterial contaminants, water musrbe handled properly in the home and workplace. Bottled water in bulk containers (S gallons) is at highest risk of contarnination from improper handling. 9 9 Beyond disinfection: and filtration, fur- ther processing is generallynot requiredford municipal supplies.. A softening treatment may be used to reduce total dissolved solids (EB4 limit = 500 milligrams per liter = 500 ppm), This procedure usuallyy involves replacement of calcium or magnesium ions with sodium or potassium ions. In many, communities fluoride is added'to achieve

W TABLE 1 MAXIMUM CONTAMINANT LEVELS Concentration in milligrams per liter (ppm) SUBSTANCE Arsenic Barium Cadmium Chloride Chromium Copper Iron Lead Manganese Mercury Nitrate Phenols Selenium Silver Sulfate Total Dissolved'Solids Zinc Turbidity Color Odor Corrosivity Foaming Agents pH Endrin Lindane Methoxychlor Toxaphene 2, 4-D 2, 4, 5-TP Silvex Trihalomethanes Radioactivity Gross Alpha Gross Beta * No matumum level for FDA Bottled Water Standards levels effective in inhibiting tooth decay, usuall,L at a level of 1.0 milligrams per liter (I ppm): Ih contrash the processing of bottled watersvaries.considerablyfrom product to product. Some bottling companies manipu- late the mineral composition of a source water to achieve a desiredlflavoc.Mineral5can be added, removed or left unmodified. r (3 (5 Carbon dioxide.may,be added!for efferves- cence(carbonation):The prod'uctlabelisth'e consumer's best guide to the processes and the source waterused in bottling a partieular producc. Natural water is water that is unmodified by,mineral addition or deletion. It may come from a spring, a well or an Artesian well. Spring.waterrises to the earth'ss surface FDA/EPA STANDARDS 0.05 1.00 0.01 250.0 0.05 1.0 0.3 0.05 0.05 0.002 10.0 0.001 0.01 0.05 250.0 500.0 5.0 5.00 15.0 3.0 Non-Corrosive' 0.5' 6.5 - 8.5' 0.0002 0.004 0.1 0.005 0.1 0.01' 100 ppb Concentration in picocuries per liter under its own pressure. Water bottled from springs may be taken from the natural open- ing in the ground or from a hole bored nearby.,It ma,vbe collected and transported using pumps, pipes;, tunnels or similar devices. Well! water remains underground and must be removed from a hole bored linto the ground- %lellsthat flow, without pump- ing are called Artesian wells. Both springs , and wells are fed byground-svater reservoirss known as aquifers. An aquifer is a water- bearing stratum of permeable rock, sand or gravel. AqpifNrs are ultimatelyy fed byy rain and snow in a complex process known as the !, h'ydrologiccycle... Natural Spring water is water, that comes il from a spring and is unmodified by mineral addition or deletion.. Artesian well watenr comes from ~an Artesian well and is unmodi- fied by mineral!addition oridelttion. Min- era1water is an indefinite term. All water except distilled water is tech'nically mineral water. The FDA has no standard of identity to legally define what is and what is not mih•erallwater. However, the state of California,. !, which claimsalfnost '/i of all domestic bot- I tled!waterproduction,andtheIBWA,which, I claims representation for more.than~80 per-cent ofthe 324 domestic bottling companies,, j both require that a mineral water containn more than 500 milligrams per liter of total dissolved solids. 1%linerals may be added, removed or left unmodified to achieve a I, desired flavor or compositiom. Natural min- eral water is.usually from a spring.and'.is , unaltered in minerallcomposition. Drinkingg water is another vague term used to describe bottled water. It is usually non-carbonated or "still" water. It may ' come from a spring, well, municipal Isupply, or some combination of these sources,,Fre- 'i quently, it..ist demineralized,.also known as Purified, and then~remineralized to achieve a specific composition and flavor. Purified waterwhich is then vaporized andd con- densed is called distilled water. Geolbgically; the mincrall content of water is derived' from the soil and rocks through which the water moves under- ground. The different kinds andlamounts of minerals give each source water its unique taste. The taste of!tap water varies from city to city and state to.state because of varia- tions in the soil and rocks in the different . source waters. Because taste is a significant factor in consumer choice of bottled water, many companies choose to~maniputate the mineral composition of their source water. ry~ Bottled water may, also be carbonated. w The carbon dioxide may occur naturally in the source water(Natarally Sparkling).orit ~ may be removed+,transported and injected ' from another source water (Sparklingt.orit = mayy be manufactured and injected,., e.g., iseltzer.and club soda. Bottlers.using natural ~ carbon dioxide claim its bubblesiast longer .a than those produced by manufactured car- ?bon dioxide. This is unlikoly . since the car- zbon dioxideprodu.ced is chemically identical 7 and virtually unreactive with water. C W Ib

f".,.". , t.' . . .. TABLE 2 4 I r? .p. .f.* ~4?. _ ._ .. - COMPOSITION OF SELECTED BOTTLED VS TAP WATERS (milligrams perliter) ARROWHEAD SPARKLETTS PERRIER s<` EYIAN -' -YOUR MOUNTAIN CRYSTAL- 7MPORTED IMPORTED TAP SUBSTANCE SPRlNG FRESH MINERAL MINERAL WATER' ".t 3 Calcium 15.2 0.7 133 Magnesium ~ ' 2.7 0.8 3.8 Sodium 9.4 3.8'' 12.5 Potassium ' 1.5 • ' 0.83 Chloride 7.5 . 3.5 29.2 Fluoride -' 0.12 0.0' 1.0 Iron 0.015 0.0 Bicarbonates 67.1 ~ ; 5.8 179 Sulfates 3.4 7S Nitrates 0.8 ?''V 0.0 Spring 89e/gallon Very Good 1 Call your city or state water department and ask to speak with a laboratory chemist. 2 5.0 in Sparklelts Crystal-Fresh Fluoridated Water. 3 No data available. 4 1.0 in Sparklelts Crystal=Fresh Fluoridated Water. 5 Consumer Reports, Septemtier 1990. All treatment processes used in bottling water must' be conducted under sanitary conditions. Any shipping or storage must occur under conditions that maintain water purity and quality. The FDA monitors and regulates bottling facilities and procedures in the same way it does food manufacturing plants. Under provisions of the Safe Drink- ing Water Act of 1974, the FDA established standards for bottled'watercomparable to the EPA's national drinking water stand- ards. Both standards ser limits for toxic sub- stanees including residues of certain pesti- cides, radioactive substances, micro- organisms and chemical elements (see Tablt " 1). Both EPA and FDA standards are virtu- ally identical and are enforced in coopera- tioo with state and local governments. Members afthe IBWA also participate in a plant inspection program administered by the American Sanitation Institute. - Certain bottled waters are not regulated by the -FDA as "bottled~ water." These include seltzer, club soda, naturally spar- kling water and mineral water. The first three are regulated as soda water which is defined as "a class of beverages made by ',absorbing carbon dioxide in potable water." This class also includes flavored'soft drinks such as cola. Seltzer water is usually tap water filtered and carbonated with manu- factured earbon dioxide. Club soda is tap 41 water filtered and carbonated and'to which minerals are added for flavoring. Naturally sparkling water was identified earlier. The FDA permits soda water manufacturers to add small amounts of eaffeine, not to exceed 0.02 percent by weight. Because the amount is regulated, manufacturers are not required to declare caffeine content on the product label. Other ingredients including flavorings and sweeteners must be declared. Mineral water is not defined by the FDA. As mentioned previously, the state of Cali- fornia andd the. IBWA define mineral water on the basis of total'dissolved'solidr. The FDA does have regulations to insure the purity and safety of both domestic and imported mineral waters. The regulations for bottled' and public drinking water ensure its purity and safety to the point of delivery. To remain free of bac- terial contaminants, water must be handled properly in the home and workplace. Boc tlcd water in bulk containers(5 gallons) is at highest risk of contamination from improper handling. Bottledlwater sold in smaller quantities is generally consumed before any contamination can drvelop: Tap water is more resistant to bacterial contami- nation than bottled'water, because ozone is chemically less stable than chlorine or chlor- amine. The risk for bulk bottled water decreases with frequent cleansing of the dis- penser and turnover of the supply. Water chemists typically recommend cleansing the dispenser thoroughly with warm soapy water each time a new shipment is received. Water is required by the body for virtually all of its functions. ICcomprises about one- half to three-quarters of body weight depending on age and body fat. Loss of 5 to 10 percent of body water can result in severe dehydration and greater losses in sudden death. The safety and' purity of drinking water prevent the spread of waterborne dis- eases and control exposure to potentially harmful substances. At the present time there is no evidence supporting the notion that bottled water is safer or nutritionally superior to tap water. Taste, mineral icompo- sition, particularly fluoridation in levels that prevent tooth decay,cost and personal convenience are important factors to.con- sider when evaluating tap versus bottled water. Table 2 is presented to assist you in your evaluation. It includes a column for you to list the chemical analysis of your tap water and compare it to popular bottled; waters. Call your city or state water depart- ment and ask to speak with a laboratory chemist for analysis of yourtap water. ,,.~ ~f JohannaM. Omark, M.P.H., R.D., isaJree lance writer. - 4

Roger P. Maickel, Ph.D. Professor of Pharmacology and Toxicology Purdue University West Lafayette, Indiana - LL We, as scientists, have become more concerned for individual 'efforts (our research is almost a hobby) than forYhe betterment o mankind_ Too much emDhasis is nlaced on `basic' versus `analie ' research. » Education: B.S.,1954, Manhattan College; M.S., 1957, Georgetown University; Ph.D., 1960, Georgetown University. Research and Professional Interests: "My principal interests include: "Analytical chemistry methodology - the development and application of new and simple technology for the quan- titative determination of organic chemi- cals cals (drugs,, endogenous body com- pounds, foreign chemicals) in body fluids and tissues. "Chemical pharmacology - how '°chemicalsinteract with rthee various body " systems as well as how body systems change endogenous or ingested chemi- cals. "Forensic pharmacology this may also be called 'drugs and public safety.' It includes drug abuse, drug effects on research at the National Institutes of Health, This research led to M.S. and Ph.D. degrees with a unique combina- tion of biochemistry, chemistry, and pharmacology. This program started (for me) in 1955; it was clearly the turning point in myeareer, as, 30 years lnter, I am a pharmacologist/toxicologist and not'a chemist." Personal Health Code: "My personal health code can beaummed up in a single word -'moderation.' " Major Public Health Concerns that Ameri- cans Face Today: "f believe that a num- ber of public health concerns,face both Americans and the world today. Each is different, based'on the characteristics of the site, situationa and population involved. For example, intestinal para- sites are not a major problem in the United States, but are of significant human behavior and performance (i.e., drugs and driving), and the interactions of drug usage with society. -- "Stress - the effects of exposure to stressful stimuli' on the organism, how these are manifested, and their possible modulation by drugs or other chemical substances such as dietary components. •. . - "Pedagogicpharmacology-teachingc principles of pharmacology (and toxicol- , ogy) to medical, pharmacy, and nursingg students, and to the general public."' Turning Point: "I started out as a high school studenrwith an interestin science, mainly chemistry. When I was an under- graduate, this was enhanced by a curricu- lum that had 47 hours (out of a total of 1431) in chemistry. After I had spent a year of graduate study in chemistry, my mind desired something more 'alive' than beakers, flasks, and chemical reac- tions. An opportunity arose to continue my graduate education in a situation where my academic coursework (im chemistry, at night) could be comple- mented by a daytime effort in biomedical i Roger C Maicket, Ph.D. "We need to remove the problems associated with various aspects of the use of animals in biomedical research. There is no question that there are no alterna- tives to such use unless we wishYo greatly expand (with the consequent risks)', research with human subjects. "We, as scientists, have become more concerned for our individual efforts (our research is almost a hobby) than for the betterment of mankind. Too much emphasis is placed on 'basic' versus -'applied' research. Scientistss should be more concerned'with curing (or prevent- ing) diseases and with improving human health or the quality of human life than with being able to better understand how A influences B -.. . _ c . - -- . . Major Public Health Accomplishments Expected in the Coming Years: "I hope to see significant improvements in a impact in many, tropical areas. Nutri- number of areas of public health i includ- tional imbalances (not starvation per se) '• ing (but not limited to) the following: are different problems for different _ °Better understanding of a variety of areas, populations, and lifestyles. •_' human diseases, how they are caused, "In the United:States, I'can identify ' how they are transmitted, and howtheyw four general areas that should be of con- `might be treated with chemical agents. cern to biomedical scientists like myself: "Reductions in the direct financial "We need to enhance and improve the eost of medical care as well as in the cosn dissemination of information regarding to the individual in terms of worktime health concerns, health problems, envi- lost and'personal discomfort. .; ronmental health, etc. The current cha-"Improvement in nutritionalldietaryy otic state regarding AIDS is an excellent status otn a worldwide basis, so than example of poor communication. When . severe problems will ~ occur only as a health information is disseminated, ideo- result of extreme climatic disorders.^ logical andd political biasess should be clearly removed. Science is the search for Why Did You join ACSH? "I joined the a truth; the scientific material presented ACSH Board of Advisors because I felt o should be the truth. that it would afford an opportunity to ~ "We need to remove the present exces- sive interposition of the legal system into health and public health affairs. We have become a nation of lawyers, legal proc- esses, and judicial proceedings. The truth of scientific findings often runs second to jurisprudence; the facts of scientific data often fall behind trial decisions. use my tal@nts as a scientist and as a com- ~ municator to aid in the dissemination of ~ scientific knowledge to the general pub- ~ 1ie. I firmly believe that I have an ethical/ e ~. moral responsibility to be active in this way. ACSH gives me an opportunity to do this in an organized and professional ~. manner." <

Tobacco Industry's Buys ~ CONTINUED FROM PAGE I ' not.Thetobaccoindustryisnotonlysurviv- ing; it is actually becoming more powerful than ever. Using the deep rivers of money generated by cigarette sales, the tobacco -companies have embarked on a course of diversification and corporate acquisition that is unprecedented in scope. The American Tobacco Company Starts the Trend The American Tobacco Company began the trend toward diversification in the 1970s and is now a division of American Brands. Almost half of the company's revenues come from businesses as varied as life insur- ance, golf balls, and Chip-A-Roo cookies. Ironically, American Brands' Franklin Insurance Company offers discounts to nonsmokers. But of all the conglomerate's businesses, it is still tobacco that generates more than half the operating profit, at least $500 million per year. But American Brands is one of the smallesrof the cigarette com- panies, taking less than 6 percent of the mar- ket. LL Among the reasons that ciga- rettes are prof table is that con- sumers of 7his product are like no other-most are addicted to smoking. 95 Spurred by the need'to do something with . the vast amounts of cash generated'by ciga- rette sales, the industry leaders began to buy op huge companies in the past few years. R.J, Reynolds (RJR) bought Heublein in 1982 forSl.3 billion, and Nabisco in 1985 for about $4.6 billion. In between these two giant acquisitions,,RJR began the building of a gigantic new factory thao will cost $2 billion, The list of brands owned by the tobacco company appears in •fatile I and boasts a wide variety of famous names- from Kentueky,Fried'Chicken to Oreo cook- I ies to Del Monte canned fruits and Wall atreel Journal reported in August 1985 . that they were guaranteed double their annual'salaries and bonuses for three years ifthey were fired by RJR. Most importantly, the tobacco companies have bought gold plated brand names that are almost guaran- teed to provide an unspectacular but steady income far into the future. Differing Views There are several differing views of tobacco industry diversification. Optimists hope that in view of the health hazards of smoking and the declining consumption of cigarettes in this country, the industry is try- ing to jettison cigarettes and move into safer products. But this overlooks a fundamental truth-cigarettes are far more profitable than any other product. Ji Tylee Wilson, chairman of RJR, declared, and we can take his words at face value, that the purchase of Nabisco was not for the purpose of reducing the firm's dependence on tobacco. Jim. Thompson, PM's vice president for media, said in 1984 "the energy behind the diversifi- cation and growth of this corporation has been generated by our cigarette products:°W hether the metaphor is cash cow or golden goose, the bottom line is that tobacco pays far better than cookies. Cigarettes are profitable for a number of reasons. Consumers of this product are like no other-most are addicted to smoking. Also, cigarettes occupy a uniquely privid leged niche in the consumer market. Except for the warning labels, they are subject to virtually no governmental health and safety regul8tion.Other products that are meant to be ingested or applied to the body must'be tested to determine if they are harmful, but not cigarettes. They have been immune from governmental, regulation by federal law since the early part of this century. Ciga- "zel-;a.,-f__~ , :- ~ I rettes are also profitable because cigarette manufacture is not capi4al-intensive and sales have undergone a steady expansion throughout7 the world for the past eighty years. John Maxwell, whose "Maxwell Report" is the accepted authority on ciga- rette sales, commented recently, "i, can't think of anything more lucrative than those little white tubes." I "Synergy" for the Tobacco Companies The buzz word among merger-conscious business people these days is "synergy". The mere addition of companies to a conglomer- ate is no longer considered wise planning, The acquired eompanies should interact with their new parents as a unified orga- iL America's largest cigarette company, Philip>Vforris, now owns America's largest food company, General Foods. yy nism. By concentrating on consumer prod- uct companies, the tobacco giants are prob- ably attempting to build business empires thatcan protect theii main source of profit, cigarettes. We will most likely see this syner- gistic effecuinfour areas: advertising, mar- keting, the legal arena, and politics. Even before the latesti mega,mergers, the tobacco companies loomed 18rge on Madi- son Avenue. Despite being banned from television and radio, cigarettes are the most advertised product in our society. The sheer volume of dollars spent to promote ciga- rettes is staggering, $1.5 billion each year. To introduce a new, brand! named Player (no relation to the British brand), PM spent -,-, vegetaoles. - . . Philip Morris' Big Buy Philip Morris (PM)„which now has the largest share of the cigarette market (37 per- cent to RJR's 34.5 percent) has onlyrecently begun to diversify. Burnow they've done it in a big way, by buying General Foods„the nation's largest food company, for $5.8 bil- lion. America's largest cigarette company now owns America's largest food company. These were expensive acquisitions. Nabisco went for 3.2 times book value, and General Foods for 3.5. PM is paying more than twice what General' Foods' shares traded for last year. RJR also sweetened the pot for Nabisco's top Il executives. The The purpose of the diversification Is nol tornable R. J. Reynolds, Philip Morris and the rest ta gel oul of the cigarette business, but toinsulate cigarettes from social and legal challenges with thick layenof corporate muscle. - .

-. ~-5100 million on advertisements. Poor little " Lorillard, which is much smaller than PM or RJR, could only afford to spend S40 million to introduce its new brand. Satin: - .. The new mergers have overnight cata- pulted the tobacco companies from mere preeminence to virtual sovereignty over the ad world. RJR/Nabisco now controls an advertising budget of more than one billion dollars per year, nearly $150 million higher than the next largest, Procter & Gamble. The PM/General Foods budget will be even bigger. Out of a total U.S. advertising budget of about $88 billion, about 53.0 billion will be controlled by the six major cigarette companies. ~ LL Whether the metaphor is cash cow or golden goose, the bottom line is that tobacco pays far better7han cookies. 9 9 Wielding Awesome Power How will the tobacco companies wield their awesome power in the advertising world? If experience is a guide, they will not hesitate to use it to protect cigarettes. Already there is plenty of evidence that mag- azines and newspapers do not report news- worthy stories ofthe health hazards of ciga- rettes because they fear the loss of advertising revenue from 4he tobacco com- panies. Standard practice among those few who ever report adversely on smoking (and there is no other way to cover the story, since there is no good news about it) is to notify the tobacco advertisers of an impending storyso that they can keep their ads out of the offending issue. For magazines like Newsweek on Time, this means the loss of a million dollars in advertising revenue for a single week. - The tobacco industry's new acquisitions increase their reach considerably. Television stations and networks which have not been amenable to tobacco industry blackmail since the government banished cigarette advertisements from the airwaves in 1971 could now see heavily advertised products such as Birds Eye frozen food or Fleiseh- mann's margarine used as threats in case they dare to report on the health hazards of cigarettes. Another area of new influence is in the ad agenciesthemselves_ We camexpect that even those agencies or executives that do noP for ethical!reasons work on cigarette ads will have to be sensitive to the desires of the tobacco barons. If, we see an increase in casual smoking in commercials for products like canned fruit or cookies, it will be because the advertising professionals will have become aware that their ultimate clients are cigarette makers. CONTINUED ON PAGE 8 FAMOUS BRANDS FROM RJR Domestic Tobacco Brands C.Ggarettes _, :, t..a.~:.;,•. Bright Camel Century. Doral More NOW Salem Sterling Vantage Winston Chewing Tobaccos Apple Sun Cured Brown's Mule Cup Days Work R.J. Gold Reynolds' Natural Leaf Reynolds' Sun,Cured Top Work Horse Smoking Tobaccos Apple Carter Hall George Washington Madeira Gold Our Advertiser Prince Albert Royal Comfort' Top International Tobacco Brands Five brands listed above plus 14 regional brands on three continents Foods Del Monte Canned Vegetables Del Monte Tomato Products . Del Monte No Salt Added Vegetables Del Monte Canned Fruits Del Monte Lite Fruits Del Monte Dried Fruits Del Monte Fresh Fruits Del Monte Frozen Foods Del Monte Pickles and Pickle Products Del Monte Single Serving Fruit and Pudding Cups Del Monte Seafood A.1. Steak Sauce Chun King Oriental Foods Escoffier Sauces Grey, Poupon Dijon Mustards Morton Frozen Foods Ortega Mexican Foods Patio Mexican Frozen Foods Regina Cooking Wines and Wine Vinegars Snap-E-Tom Tomato and Chile Cocktail Milk Mate Chocolate Syrup My'T'Fine Puddings and Pie Fillings Vermont Maid Syrups Award Frozen Foodservice Entrees Brer Rabbit Molasses and Syrups College Inn Broths and Heat & Serve Entrees . Davis Baking Powder Wright's Oiquid Smoke Beverages Canada Dry Soft Drinks and Mixers Sunkist Soft Drinks Hawaiian Punch Del Monte juices, luice Drinks and Nectbrs Barrelhead Root Beer 'C' Plus - Tahitian Treat Wink EDITOR'S NOTE: The above products are owned by R.1. Reynolds and their new subsidiary, Nabisco. This is one example of wharone of the major tobacco companies owns. Not on this list are products of American Brands (including Carlton, Lucky Strikes, Chip-A-Roos Cookies, Jergens Lotion, AcushnerGolf Products, RegalChina, Swingline Staplers, Rexal OfficeProducts- and the list goes on). Or, consider Philip Morris (Seven-Up, Miller Beerand, now as a result of acquiring General' Foods, Jello, Maxwell i House Coffee, Minute Rice, Stove Tbp Stuffing, Birds Eye frozen foods, Post Cereals, Kool-Aid, Tang, Oscar Mayer meats, Entemanns baked'goods, Ronzoni Products ... ). 7

Nabisco Brands USA Uneeda Biscuits WaverlyCrackers Wheatsworth Stone Ground e''i' ' ' Wheat Crackers Wheat Thins Snack Crackers Biscuit Products Almost Home Cookies Barnum'sAnima! Crackers Better Cheddars Snack Thins Biscos Sugar Wafers Cameo Creme Sandwiches Cheese Nips Crackers Chicken tn A Biskit Flavored'Crackers Chips Ahoy! Chocolate Chip Cookies Easy Cheese Pasteurized Process Cheese Spread Escort Crackers Fig Newton Cookies HeydayCaramel Peanut Logs Honey Maid Graham Crackers I Screams Sandwich Cookies Lorna Doone Shortbread Mallomars Chocolate Cakes Mister Salty Pretzels Confectionery & Snack Products Baby Ruth Candy Bar Bonkers! Fruit Candy. Breath Savers Sugarless Candy Bubble Yum Bubble Gum Butterfinger Candy Bar Care•Free Sugarless Gum Charleston ChewfCandy Bar Chuckles Candy Junior Mints Candy Life Savers Hard-Roll Candy Merckens Chocolate Pearson Specialty Candy Planters Peanuts, Mixed Nuts, Deluxe Nilla Wafers ,.. Mixed Nuts, Cashews and Sesame Nutter Butter Peanut Butter Sandwich Nut Mix Cookies , Planters Cheez Balls, Cheez Curls, Oreo Chocolate Sandwich Cookies Corn Chips and Pretzels Oysterettes Soup & Oyster Crackers Sugar Daddy Pop Party Grahams Cookies Pinwheels Chocolate Cakes Grocery'Products PremiumCrackers _. Ritz Crackers Social Tea Biscuits Triscuit Wafers - CONTINUED FROM PAGE 7 Marketing, an Important Factor in Mergers Marketing was also an important factor in the new mergers. RJR's chairman J. Tylee Wilson admits that one of the attractions of Nabisco was its established global market. RJR, whose foreign sales accounted for less than 16 percent.of its operating income, is anxious to expand its overseas operations. Cigarette sales in some paras of the world, especially the Third World, are growing, .`whileAmerican sales are either stagnant or declining. PM, which has an extensive foreign marketing operation, acquired Gen- eral Foods, whose markets are primarily, domestic. Some mergers don't work because two companies appear compatible but have deeply different marketing,approaches. If the PM/General Foods merger doesn't work, iCwon't be because of this. PM has surged ahead of RJR in the last few years because of its ability to sharply define the markets for its different brands and target advertising directly to that market. Kent Mitchell, General Foods' vice president for f ; Blue Bonnet Margarines Butcher Bones Dog Snacks Cream Of Wheat and Cream of Rice Cereals ~ : (New Mem ~~ : Dromedary Dates, Pimientos and Cake Mixes Fleischmann's Egg Beaters Cholesterol-Free 99% Real Egg Product - Fleischmann'sMargarines, Vinegar and Yeast Fosters Lager Australian Beer Home Hearth Yeast Bread Mixes Milk-Bone Brand Dog Biscuits Moosehead Canadian Beer - Nabisco 100% Bran Cereal Nabisco Shredded Wheat Cereal Royal Gelatins, Puddings and No- Bake Pies Spoon Size Shredded Wheat Cereal Team Flakes Cereal Toasted Wheat & Raisins Cereal Nabisco Brands Ltd (Canada). 26 Brands in Canada International Nabisco Brands 65 Brands on Three Continents Quick-Service Restaurants ; Kentucky Fried Chicken Restaurants Zantigo Mexican Restaurants LL Out of a total U. S. advertis- ing budget of about $88 billion, about $3, 0 billion will be con- trolled by the six major cigr:rrette companies. ~~ marketing, believes in the same approach. He said recently that segmenting the market is criiical. The days when a food company could market its products to a broad cross section of the population are now gone.. Sharply defined identification is the key to success. Will:PM try to take advantage of' the favorable image of GF's brands and identify cigarette brands with them? This is a dffinite possibility. Owning the giant food companies will also help the cigarette companies fend off the mosnseriouslegalchallengethey've ever had to face. Dozens of product liability{aw- suits have been filed against the industry and ifleven one of them is successful, as now seems very likely; hundreds perhaps thou. sands more will soon follow. Eachnne could

Il Spirits American Creme -- V. 71_ 1_Z_.y,"I a, a.~1-:; r : Smirnoff Silver (90.41proof) Smirnoff Vodkas (80 and 100 proof) Steel Peppermint Schnapps Arrow Cordials and Flavored Brandies = Arrow Flavored Vodkas Bahia Coffee Liqueur Black Velvet Canadian Whisky Boggs Cranberry Liqueur . ChSteau de Laubade Armagnac Caldwell Vodka, Gin, Rum and Bourbon Cuervo 1800 Cuervo Especial Tequila (gold) Don Q Rum Heublein Cocktails Irish Mist Liqueur Jeremiah Weed Bourbon Liqueur Jos@ Cuervo Tequila (white) Malcolm Hereford's Cows Matador Tequila McMaster's Scotch and Canadian Whiskies Milshire Gin Ostrova Vodka Patrician Amaretto Patrician Sambuca Popov Vodka Relska Vodka - Smirnoff de Czar Special Reserve Vodka (82.6) proof) LLEzceptfor7hewarning ",_ labels, cigarettes are subject to virtleally no governmental health orsajetyregulations. 9 9 The Club Cocktails Viejo Vergel Brandy. Yukon Jack Canadian Liqueur Imported Wines Babycham Perry " Black Forest Girl Bouchard Pere & Fils Burgundies . Brugo Gattinara, Ghemme and Spanna Capezzana Carmignano Casal Thaulero Montepulciano and Trebbiano Ceretto Barolo and Barbaresco ChSteau La Garde ChSteau Olivier Bordeaux Conde de Caralt Sparkling Wines Contratto Asti Spumante and Gavi Duval French Vermouth EgriBikaver Hungarian Wine Fassati Montepulciano Fazi-Battaglia Verdicchio Fontana di Papa Italian Wines Giannozzi Chianti' Harveys Bristol Cream Sherry Harveys Other Sherries and Ports Kiku Masamune Sake Ladoucette Pouilly Fume Lancers Ros@,,White, Red and Vinho Verde represenrliability for millions of dollars in damages. The recent demise of the asbestos industry must give tobacco executives night- mares. Johns Manville Corporationtipow a shadow of its former self, seemed impregna- ble only a fewshort years ago. Butthe asbes- tos companies stood alone;, the cigarette companies are building an economic ark so huge that even a tidal wave of lawsuits may not be able to swamp it. Political Clout - With economic might comes political clout. Imthe past, the tobacco companies have not hesitated to use their food subsidi= aries to promote the interests of cigarettes againsnhealth motivated assaults on smok- ing. When SanFraneisco Supervisor Wendy. Nelder introduced an ordinance regulating ' ~ T-~.~-- :+ Livio Felluga Picolit Mastroberardino Lacryma Christi'and Taurasi - _ Monsanto Chianti Classico ' Oliver de France French Bordeaux AC Wines Regaleali Vino da Tavola •Tenuta Caparzo Brunello di Montalcino - - Tiberio Frascati and Orvieto Tokaji Azsu Hungarian Dessert Wine Torresella Pinot Grigio and other Varietals Valbon French Table Wines Vinya Rose California Wines Beaulieu Vineyard Wines Citronet HMS Frosl Inglenook Navalle Wines Inglenook Vineyards Napa Valley Wines, Jacar@ Wines T.J. Swann Refreshment Wines Specialty Retailing Harry and David' Fruit-of-the-Month Club, Fine Fruits and Foods Jackson & Perkins Roses and Garden Plants smoking in the workplace, she was approached by Del'Monte executives, who told her that their parent, R..L Reynolds, was very unhappy about the law and wanted her to drop it. In another, incident, Del Monte was ordered by RJR to retract its offer of funding for a nutrition program produced by Dallas public television station KERA because the station had produced several shows about rthe hazards of Ismoking- Del Monte is, of course, small tomatoes compared with Nabisco and General Foods. Local, state, and even, . federal'lawmakers who are not amenable to tobacco industry pressure may be vulnerable to pleas or political threats from the industry's food subsidiaries. - . ft will certainly take some time for the dust to settle before we can know the full effects of the tobacco industry's recent moves. But one thing seems certain. The purpose of the diversification is non to enablf RJR, PM and the rest to get out of' the cigarette business, but to insulate ciga- rettes from socialland legal challenges with thick layers of corporate muscle. t--~- Lawrence While iran attorney who is a jre- qtrent contributor to NEWS & VIEWS.

Li The purpose of this article is not to diminish the existence of injuries which are deserving of a legal remedy; rather it is to point outYhat the overutilization of litigation weakens the system that serves those who do have a legitimate claim. 99 eases where the issues are not nearly so elear; where even the question of injury is in doubt, where causation is at issue, and where the source, if any; of the affront is anyone's guess. It is this larger body of liti- gation of questionable merit which has brought us to the present dilemma of afford- ing to stay in business while dealing with lawsuits from every sector of society, from individuals, interest groups and govern• ment. The realm of toxic torts is the fertile field for such litigation. - Fertile Field for Litigation . In 1984, there were 10,745 product liabil- ity lawsuits filed in the federal courts, an LL Litigation in the United States is epidemic, and the fre- quency and severity of lawsuits for personal injury and product' liability are reaching new heights each year. ~~ increase of 16.5 percent over 1983; U.S. Dis- trict Courts reported a 50 percent increase in medical Imalpractice personal injury cases in Fiscal Year 1983, with 1,496 new filings insurers. Excessrooverage - for that realm of risk above normal limits - has been pur- chased from the "reinsurance" market,, exemplified by the famous Lloyd's of Lon- don, generally the last resource of reinsur- ance and historically willing to insure any, risk. Now even Lloyd's is having second thoughts. Particularly hard hit by health, product liability, and environmental claims and judgments in U.S. courts, Lloyd's has recently assessed its principal investors sub- stantial amounts to meet expected losses. For example, victims of asbestosis have been paid over $2 billion;, and payments could reach SIO-30 billiomby the year 2000, so rates for umbrella coverage - for the excess loss over limits of other, general liability pol- icies - will grow 100 to 200 percent this year. Lloyd's is reacting, making its insur- aneemore selective, more limited, and pri- mary insurers are responding by trying to limit losses and more accurately predict annual losses. For that reason, claims-made coverage (limited to claims filed during the year the insurance contract is in effect) is , becoming more popular, displacing tradi- lional occurrence coverage (insurance for claims filed in any year bun arising out of incidents which occurred during the year the insurance contract was in effect). But turn- ing to claims-made coverage, lowering lim- its, and raising premiums will not solve the reinsurance problem, and!the nation faces a situatiom that appears to be growing worse (compared to 997 for FY 1982). The increase '. in litigation reflects a change in consumer attitudes, according to behavioral scientists, indicating a diminished'respect for certain institutions, and greater expectations of safety, security, and services. Theoretically, insurance against loss is actuarily gauged to anticipate demand, but following a period of years in which investment income of insurers kept ahead of lossess newly increased awards and settlements, coupled with lower interest rates, have stunned the insurance industry. It is reeling under the onslaught of claims and losses. A resulting pattern of change is apparent in the casualty insurance industry - cover- age is more restricted, either less compre- hensive in its breadth ordess availablrto cer- tain enterpiises of risk, and it is more expensive where available, with higher retentions (deductibles) and lower limits for excess liability. Firms and individuals are faced wit h few choi¢es: pay the ever-increas ing rates, live without insurance coverage, or go out of business. Fon most of those affected„the only realistic alternative is to pay the rate and attempt a pass-through of costs to buyers. For years, companies have purchased basiccoverage from a competitivemarket of 10 in every area of business life. " Physicians Experience Increase in Litigation Physicians„for instance, and particularly surgical specialists like obstetricians, have experienced'd startling increases in the fre- quency and severity of litigation against them, with the expeaed increases in rates. Between 1935 and 1975, medical malprac- tice claims grew in frequency exponentially: 80 percent of the claims were filed in the final five years of that forty-year period. Almost two-thirds of all theabstetricians in the United States have been sued, and 20 percent have been sued three or more times. In New York State„48.8 percent of the ob- stetricians have been sued three or more times and'their insurance now costs up to $72,000 per year. Across the nation, 20 per- cent of obstetricians have raised their fees more than 30 percent in the past two years to keep up with increases in liability insurance rates. So the patients will eventually,pay the bill. For directors and' officers of corpora- tions, the epidemic of toxic torts is reaching a variety o6industries, notably banking„oil and'gas, computers, and drug and'chemical i companies:,D&O insurance, as it is known, covers risk for lawsuits f iled'by shareholders and others. The new frequency of lawsuits iss causing outside directors to flee boards, ass rates are three to ten times what they were last year, due to heavy losses. In years past,, coverage was inexpensive and plentiful (less than S200,p00 for $100 million coverage) ) but now it is expensive (over S l million) and scarce (usually an upper limit of S50 mil- lion). Perhaps no group has been so affected as have the pharmaceuticallcompanies. Wide publicity has focused upon the A. H. Robins LL Particularly hard hiCby health, product liability and environmental elaims and judg- ments in U. S. courts, Lloyd's of London has recently assessed itss principal tn vestors substantial amounts to meet expected losses. ~~ Company of Riehmond; Virginia, and~ its intrauterine device, the Dalkon Shield. It sold 4.6 million of the devices (1.7, million abroad) before it took the IUD off the mar- ket in 1974. Alleging pelvic infections, spon- taneous abortions, infertility and even death, there have been over 12,000 lawsuits filed against the company for this one prod- uct, leading Robins to announce in April, 1985, that it was setting aside $615 million to cover losses, the largest fund ever set up to handle medically related' claims. The set- aside wiped'out its net worth, causing the company, to suspend dividends through 1987. Robins made $58 million in 1983 but reported a 5461.6 million loss for 1984. Both ABC news and CBS' 60 Minutes reported! this summer that Robins was seeking Chap- ter 11 protection for reorganization. Billions in punitive damages are sought, and'another 8,300 lawsuits could pile up in the next 17 years. Merrill Labs' morning sickness pill Ben- dectin also saw its share of litigation. The lit- tle round pill was the onlygenerally effective and widely prescribed! medication to deal with pregnant women's nausea before it was alleged that the drug caused birth defects. Although animal studies suggested that even massive dosages were not conclusively caus- ative, FDA hearings did not prevent contiin uous claims and settlements until, when `t