Tobacco Documents Online

PROPOSAL 3 RE: LOBBYING The Board of Directors believes that the report requested by this proposal would serve no useful purpose, and urges the shareholders to vote against the proposal. The Company has engaged in lobbying efforts to protect smokers from discriminatory legislation, and to oppose excise taxes that are regressive and impose a tax burden on those least able to pay. It has also exercised its rights under the laws of the United States to gain access to foreign markets where discriminatory tariffs and other restrictions have previously made it impossible for American cigarette manufacturers to compete fairly with local manufacturers and government-owned monopolies. All of these activities have been lawful and fully sanctioned by the Company's Constitutional right to petition the Government. The preparation of the requested report would involve the expenditure of considerable time and money. The Board of Directors believes that such a report would be of no benefit to the Company or its shareholders. •