NYSA TI Multipage 2
W_here the Industry Now Stands A FACT FILE: TOBACCO AND HEALTH
Abstract
On Janua..ry 11, 1964, the Surgeon General's Report was issued. This lengthy statistical document began a wave of concerted activity of antitobacco forces.
Fields
- NYSA numbers
- 3050 B1793 03B
- Named Organization
- Adventist Church
- American Cancer Society
- American Dental Association
- American Heart Association (Voluntary health organization that focuses on cardiac health)
Voluntary health organization that focuses on cardiac health and stroke. AHA occasionally teams with tobacco retailers to engage in promotions/fund-raisers (see http://www.smokefree.net/doc-alert/messages/247136.html and http://www.rawbw.com/~jpk/stand/Pictures.html).- American Medical Association (physicians group)
Professional trade group representing American physicians.- American Newspaper Publishers Association
- American Public Health Association (Public health organization)
Professional organization for people working in public health- American Tobacco Company
- Association of National Advertisers (Ad group)
Group of advertising entities nationwide.- Bellevue Hospital
- Brown & Williamson Tobacco Corp.
Brown & Williamson Tobacco Corp.- California Medical Association
- Committee on Interstate and Foreign Commerce
- Council for Tobacco Research - USA (CTR) (Formerly Tobacco Industry Research Committee (TIRC))
Originally organized as the Tobacco Industry Research Committe(TIRC) in 1954, and renamed Council for Tobacco Research - USA, Inc. (CTR) in 1964.- *Department of Health, Education, and Welfare (HEW) (use United States Departmen (use @hew_dept)
- Federal Trade Commission (Enforcement agency for laws against deceptive advertising)
Enforces laws against false and deceptive advertising, including ads for tobacco products. Ensures proper display of health warnings in ads and on tobacco products;collects and reports to Congress information concerning cigarette and smokeless tobacco advertising, sales expenditures, and the tar, nicotine, and carbon monoxide content of cigarettes.- Federal Trade Commission (FTC)
- Food and Drug Administration (FDA)
- Institute of Psychiatry Maudsley Hospital
- Jackson Memorial Laboratory
- Liggett & Myers Inc. (Pioneer in the generic cigarette business)
Cigarette manufacturer; Pioneer in the generic cigarette business; L&M is the manufacturer of Chesterfield, Decade, Dorado, Duke of Durham in 1958, Eagle, Eve, L&M, Lark, Pyramid and Stride cigarettes- Mayo Clinic (Located in Rochester, Minnesota)
Has a nicotine dependence center; runs the smoking cessation program at the Mayo Clinic- McCann-Erickson, Inc. (Advertising firm used by RJR)
- Memorial Hospital
- Mercy Hospital (Pittsburgh)
- National Education Association (NEA)
- National Interagency Council on Smoking and Health
- National Library of Medicine
- National Tuberculosis Association
- Philip Morris & Co. Ltd. (Cigarette manufacturer, incorporated in U.S. in 1902)
Philip Morris & Co. Ltd.., was incorporated in New York in April of 1902; half the shares were held by the parent company in London, and the balance by its U.S. distributor and his American associate. Its overall sales in 1903, its first full year of U.S. operation, were a modest seven million cigarettes. Among the brand offered, besides Philip Morris, were Blues, Cambridge, Derby, and a ladies favorite name for the London street where the home companies factory was located - Marlborough.- R.J. Reynolds Tobacco Co. (Cigarette manufacturer (Camel, Winston, Doral))
Cigarette manufacturer (Camel, Winston, Doral)- Roswell Park Memorial Institute
- Royal College of Physicians (Monitors the quality of Canadian/U.K. medical education)
- *Scientific Advisory Board (SAB) (Only use SAB with name of specific org.)
- Senate
- State Department
- United States Tobacco Company (Producers of Copenhagen/Skoal chewing tobacco)
Producers of chewing tobacco- University of South Carolina
- University of Tennessee
- Virginia Medical Monthly (scientific periodical)
- Washington University in St. Louis
- Yale University
- American Cancer Society
- Named Person
- Berkson, Joseph, M.D. (CTR Special Projects, Biostatistician, Mayo Clinic)Wrote articles and letter expressing doubt that there was any real connection between cigarette smoking and cancer.
- Blatnik, John A. (Representative (D - Minnesota), subcommittee chairman)
- Bolling, Richard
- Burford, Thomas H., M.D. (Thoracic/Cardiovascual Surgeon, Washington U, Industry Exper)
- Carlile, Thomas, M.D. (ACS, Radiologist, Mason Clinic)
- Carr, Duane, M.D. (Thoracic Surgeon, U of Tenn, Industry Expert)
- Clark, Joseph S.
- Diehl, Harold S.
- Douglas, Paul H.
- Finch, Edwin P. (BW Pres; TI Exec. Comm.)
Finch was President of Brown & Williamson in 1963.- Foote, Emerson (Ad exec.; Promoted Lucky Strikes in 1930s)
- Guthrie, Eugene H.
- Hicks, Carl T.
- Horn, Daniel (Dir., U.S. Nat'l Clearinghouse for Smoking & Health, c. 1968)
Born: 28 May 1916, d. October 7, 1992 Frenchtown, NJ- Jackson, Roscoe B.
- James, Walter
- Lan, Hiram
- Little, Clarence Cook, Sc.D. (CTR Scientific Director, 1954-1971)
- Lynch, Kenneth Merrill, M.D. (CTR Scientific Advisory Board 1954-74)
Kenneth Lynch was on the CTR SAB from 1954-1974. (Source: NM Tobacco Companies Personnel List)- Macdonald, Ian (Clinical Professor of Surgery University of Southern Califor)
- Moore, George
- Moran, Thomas J.
- Moss, John E.
- Ochsner, Alton, M.D. (President, Ochsner Foundation, Early Anti-Tobacco Expert)
Plaintiff- Perrone, Joseph A.
- Ran, Paul
- Rappaport, Israel
- Royster, Fred S.
- Sterling, Theodor D., PhD (Industry Consultant, Statistician Applied Mathematics)
Theodor Sterling was a statistician with Simon Fraser University, Canada. He is listed as a consulting scientist for the tobacco industry in 1988 memo PM 2023034933/4946 from Andrew Whist to R. Murray. Sterling presented the industry's poibnt of view at indoor air symposia in Tokyo, 1987 and in the U.K. in 1988. Industry Consultant and CTR Special Project recipient.- Terry, Luther L. M.D. (Surgeon General, 61-65, U of Pennsylvania, Anti-Tobacco Expe)
Luther Terry was former Surgeon General of the United States Public Health Service from 1961 to 1965. Terry was emeritus professor of Research Medicine at the University of Pennsylvania School of Medicine in 1984 (E. Whelan 1984).- Warthen, Harry J.
- Wolffe, Joseph
- Blatnik, John A. (Representative (D - Minnesota), subcommittee chairman)
- Date Loaded
- 27 Jan 2005
- Box
- 0728. Smoking: Constitutional factors - anti-smoking orgs.
- Folder
- Smoking: Benefits 3/1981
- Division
- Library
Document Images
W~here the Industry Now Stands
A FACT FILE: TOBACCO AND HEALTH
On Janua..ry 11, 1964, the Surgeon General's Report was issued. This
lengthy statistical document began a wave of concerted activity of anti-
tobacco forces.
On April 27, 1964_, as evidence of responsible atti~:ude and action, the
major tobacco companies adopted a voluntary Cigarette Advertising
Code, with the effective date of January 1, 1965. " The Code, with an
absolutely free and impartial administrator, prohibits health claims
and direct appeal to young people. Violation of the Code carries a
$100, 000 fine.
On July 13, 1964, announcement came of the formation of the National
Interagency Council on Smoking and Health, later to be headed by Emerson
Foote~ading the list of national agencies and organizations are the
United^l~ublic Health Service and the American Cancer Society. They
are joined by sixteen other prominent groups in the fields of health and
education, all with the avowed purpose "to develop and implement plans
and programs aimed at combating smoking as a health hazard. " Signifi-
cantly, the American Medical Association, which h~s not officially
adopted the Surgeon General's Report, refused to accept the Council's
invitation to become a member. Serving as the principal communica-
tion medium for the Council is the National Clearinghouse on Smoking
and Health, a unit of the U.S. Public Health Service, and rec~nt re-
cipient of a $2, 000, 000 appropriation from Congress.
TI05430008

On July 13, 1965, after hearings by the Commerce Committees of both
Houses of Congress, legislation was enacted which will require a caution
notice on all cigarettes manufactured, imported, or packaged for sale or
distribution within the United States after December 31, 1965.
On July 27~ 1965, this statute was signed into law by the President. Eight
Congressmen, in a letter to Pr6sident Johnson, had urged a veto of the bill
on the grounds that it "protects only the cigarette industry. " Signing the
letter were Senators Gayl.ord Nelson of Wisconsin, Paul H. Douglas of
Illinois, Joseph S. Clark of Pennsylvania, and Robert Fo Kennedy of New
York; and Representatives John A. Blatnik of Minnesota, Richard Bolling
of Missouri, John E. Moss of California,. and Morris K. Udall of Arizona.
This measure pre-empts all other Federal, state, or local authority in
requiring a statement relati-ng to smoking or health, other than the caution
notice specified by the enacted law, on any cigarette package.
Further, the law provides that: "No statement relating to smoking and
health shall be required in the advertising of any cigarettes, the packages
of which are labeled in conformity with the provisions of this Act. "
Finally, the law requires the Secretar~ of Health, Education and Welfare
to submit a report to Congress within 18 months after January 1, 1966,
and annually thereafter, concerning "(A) current information on the health
consequences of smoking and (B) such recommendations for legislation as
he may deem appropriate. "
The Federal Trade Commission is also required to. submit such periodic
reports concerning "(A) the effectiveness of cigarette labeling, (B) current
practices and methods of cigarette advertising and promotion, and (C) such
recommendations for legislation as it may deem appropriate. "
Thus, the situation has become very complex. Anyone concerned with the
tobacco industry should be fully acquainted with the many facets and main
facts of the situation. In the following sections, we have attempted to
delineat.e..~..1 important areas: the forces of opposition, our real and
tential strengths, expected difficulties, and possible....opportunities in the
crucial period ahead:
December, 1965
T105430009

SECTION I:
SOME PERTINENT ~UESTIONS
• . . AND TIMELY ANSWERS
T1054.30010

Question: What does the Tobacco Industry mean to the American Economy?
Answer: It is a tremendous econom~force whose magnitude is little appre-
ciated and understood. (See Section H. )
Question: Why did the Tobacco Industry adopt a Cigarette Advertising Code?
Answer: This was a voluntary action on the part of the nine leading ciga-
rette manufachlrers on April 27, 1964, approximately four months after
the S_urgeon _General's Report was issued. The purpose was to establish
uniform standards for cigarette advertising and to set up a means for ascer-
taining compliance. Evidence of the manufacturerst spirit of responsibility
and good faith has been demonstrated by strict adherence by all members
to the letter of the Coders provisions. (See Section IH. )
.Question: Did the~ Tobacco Industry want a caution notice on cigarette
packages?
Answer: The InduStry did not want the caution notice. We do not believe
it is necessary either on cigarette packages or in advertising. But if a
warning is unavoidable, we prefer to have it by congressional statute
which pre-empts the field--one that is uniform with all manufacturers
and phrased in a fair and factual manner. A warning in adve.rtising
would be punitive in nature, and the Industry is unalterably opposed to
such a warning. (See Section IV. )
Question: Does the Federal Trade Commission pose a threat to the Industry?
Answer: The agency has shown every indication of its intention to impose
regulations on cigarette advertising which the Industry believes to be un-
warranted. Leaders of the Industry have displayed their determination to
resist the FTC h~reat. (See Section IV. )
• Question: Have the findings of the l~Blue Ribbon Committee~ of the Surgeon
General found unanimous, acceptance in the scientific and medical community?
T1054-30011

Answer: Not by any means. Before Congress, some 32 statements
questioning the case against cigarettes were made by physicians and
scientists. Numerous other highly reputable authorities have also
challenged the statistical assumptions of the Surgeon General's Report.
The case against cigarettes is far from having unanimous acceptance.
(See Sections IV and VHI. )
~uestion: What are the forces against tobacco?
Answer: At no time in history has there been a greater concerted effor~
against tobacco. The enemies are highly organized and resolute in the
"information and education" campaign to discourage smoking, restrict
advertising, and destroy the Industry. (See Section V. )
~uestion: Is only the cigarette .industry being attacked?
Answer: "From now on," B&W President Edwin P. Finch has said, "it
is a question ofsurvlval of the whole--of tobacco itself. " The entire
tobacco business-.l-not just cigarettes--is at risk and danger. (See Section
V.)
Question: Who are the enemies?
Answer: The most formidable enemy is the National Interagency Council
on Smoking and Health. It is composed of 18 government agencies and
national organizations whose avowed purpose is "to develop and implement
effective plans and programs aimed at combating smoking as a health hazard. "
And there are other groups with the same determination. (See Section V. )
Qiestion: What is the Industry doing to protect its interests against these
attacks ? '
Answer: First of all, it is acting responsibly by recognizing: (1) that all
the facts are not in and the real truth must be found; (~-) that there is a
common danger to all segments of the Industry; (3) that there must be
unity of purpose and effort; and (4) that the baFale is not over--that it has
just begun! (See Sections VI and VII. )
T105430012

Question: What has the response been within the Industry?
Answer: The leadership of growers, warehousemen, and others have
joined with the manufacturers in meeting the common threat. What is
needed now is the individual support of all who gain their livelihood from
tobacco.(See Section VI. )
Q~estion: What are the facts about smoking and health?
Answer: The "true" facts are still being sought. So far only statistical
correlations have "established" a link between smoking and cancer. What
is needed is more clinical and experimental research into the complex
cause-and-effect problem. (See Section VII. )
Question: Look at the record sales of cigarettes. Is there really a "prob-
lem" ?
Answer: We may :well be in the lull before a big new storm. " We don't know
what the public's reaction will be to the labeling on cigarette packages. But
we can certainly anticipate a tremendous increase in acti.vity by the anti-
tobacco forces, particularly those within the Interagency Council on Tobacco
and Health. They can be expected to point to the labeling as official govern-
ment recognition of the dangers of smoking. The "educational" campaigns
have already shown signs of this approach, and the Council is vigorous pur-
suing the establishment of "anti-smoking clinics" throughout the country.
As already mentioned, there is the Federal Trade Commission's continued
desire to impose warnings on cigarette advertising. It is privileged to rec-
ommend to Congress such legislation as it may deem appropriate within 18
months after the cigarette labeling goes into effect on January 1, 1966. The
same is true of the Secretary of Health, Education and Welfare.
No, ..th,e battle is not over. It has just begun!
T105430013

SECTION II
WHAT THE TOBACCO INDUSTRY
MEANS TO AMERICAN ECONOMY
. . . A Vital Force Threatened
T105430014

A VITAL INDUSTRY AND ECONOMIC FORCE:
In 1964, around 70 million Americans, more than half the adult
population including overseas armed forces, bought:
over 511 billion cigarettes, above any previous year except 1963.
more than 9.1 billion cigars, up 1.8 billion over 1963.
about 84 million pounds of smoking tobacco, up 13 million pounds.
nearly 66.2 million pounds of .chewing tobacco, up 1.4 million
pounds.
over 31.4 million pounds of snuff.
Tobacco users spent $8.1 billion in 1964 for tobacco.products. Of
this, over $3. 3 billion went directly to federal, state, and local governments
in excise taxes ($2.1 billion to federal, $1.1 billion to state and local govern-
ments).
Tobacco ;products pass across sales counters more frequently than
anything else--except money. ,
Here are some more facts about the agriculture, the manufacture,
distribution, taxation and the costs of services of the tobacco industry.
FARMING
TOBACCO
GROWERS:
Tobacco is grown in 9.1 of our nation's states by some
750, 000 farm families, averaging 3 to 4 workers to a
family. In 1964, 503, 733 farms harvested 1,077,800
acres of tobacco.
MAJOR CROP:
Tobacco is the fifth largest cash crop in the country
following cotton, wheat, corn and soybeans, and ranks
third in agricultural, exports.
FARMER'S
INCONI]~:
Farmers received $1.4 billion for the sales of tobacco
crops, representing 8.3 percent of the total for all crops
in the United States. The income from tobacco crops
of the major states in 1964 was:
TI05430015

North Carolina $558 million Virginia $98 million
Kentucky $349 million Georgia $76 million
South Carolina $ 93 million Tennessee $93 million
Other tobacco producing states include: Alabama, Connecti-
cut, Florida, Indiana, Louisiana, Maryland, Mass.achuse~s,
Missouri, Ohio, Pennsylvania, West Virginia, Wisconsin,
and to a minor extent: Kansas, Minnesota and New York.
FACTORIES:
EMPLOY-
MENT AND
WAGES:
ASSE TS AND
STOCK-
HOLDERS:
NUMBER OF
BUSINESSES:
FARMER'S
EXPENSE:
MANUFACTURING
About 550 toba~c0 products factories~ large and small,
operate in 30 states. Cigarette production in 1964 exceeded
541 billion cigarettes (including exports).
North Carolina leads in cigarette production, followed by
Virginia and Kentucky.
Tobacco manufacturers directly employ approximately
100, 000 men and women. In 1961 {the latest available
figure) employees of U.S. tobacco manufacturers re-
ceived $379 million in wages.
The net assets of publicly-held tobacco companies total over
$3 billion and there are over 300, 000 stockholders of record
of tobacco stocks.
About 1.5 million businesses share in the tobacco trade
supplying equipment, materials, transportation and distrib-
uting and merchandising services.
Tobacco farmers paid about $155 million for hired labor
and about half a billion dollars for other expenses such as:
$45 million for fertilizer and lime
• $8 million for tobacco plant bed cloth
$2.5 million for twine used in tying tobacco
* $1.5 million for ~obacco seed
• $2.5 million for plastic covers used in plant beds
T105430016

OTHER
SERVICES &
SUPPLIES:
In addition to the amounts paid for tobacco, wages, ma-
chinery, precision instruments, electronic equipment,
wooden hogsheads and cases used for shipping, the tobacco
industry spent:
$ $25 million for cigarette paper
# $79 million for transportation, mostly by truck
And annually uses:
$ over 40 million pounds of moisture-proof cellophane
$ more than 71 million pounds of aluminum foil
$ nearly 27 billion printed packs and 2.7 billion cartons
SALERS:
RE TAILE RS:
EXPORTS:
EXPENDI-
TURE:
DISTRIBUTION
Over 4, 500 independent wholesalers handle the distribution
of tobacco products, buying them directly from the manu-
facturer.
Tobacco products are sold by more than 1.5 million outlets
in the United States, .including thousands of small retailers.
Over 28 percent of the tobacco leaf sold in free world mar-
kets in 1964 came from the U. S. --some 510 million pounds,
up 5 million pounds from 1963: the total was valued at $413
million, up 270 from 1963 and the highest on record.
In addition, the U.S. continued to be the world's leading
exporter of cigarettes--25.1 billion in 1964, valued at
over $114 million, compared with $68 million 7 years ago.
In 1964 the total consumer expenditure for tobacco products
was $8.1 bi]/ion. More than $7.1 billion of the total expend-
iture was for cigarettes, up some $312 million over 1962.
TOTAL
EXCISE
TA~S:
TAXES
Federal, state and local excise taxes on tobacco products
in 1964 yielded $3. 3 billion, nearly 3 times the amount re-
ceived by tobacco farmers for their crop. Over 98 percent
of this came from excises on cigarettes. The Federal
Government received $2;069,000, 000, states $1,196, 000,
and local governments $64, 0000 000.
T105430017
