NYSA TI Single-Page 1
Dade County and Smokers Tobacco Contributed $50 Billion in 1977
Abstract
The U. S. tobacco hutustry contributed nearly $50 billion to the nation's economy in 1977, a major new study reports. Nearly 2.3 percent of the nation's work force was employed because of tobacco.
Fields
- Named Organization
- Advertising Age (periodical)
- American Lung Association
Voluntary health organization concerned with fighting lung disease, promoting lung health and advocating clean air, indoors and out.- Appropriations Committee
- Army
- Baltimore Sun
- Civil Aeronautics Board (Ruled on smoking in U.S. airplanes)
- Covington & Burling (Tobacco Industry law firm)
Tobacco industry law firm. Was involved in organizing the Whitecoat Project.- Department of Agriculture (USDA)
- *Department of Health, Education, and Welfare (HEW) (use United States Departmen (use @hew_dept)
- Duke University
- Federal Reserve System
- Free Choice Inc.
- Journal of Occupational Medicine (scientific periodical)
- Journal of the National Cancer Institute (scientific periodical)
- Liggett Group Inc. (American cigarette manufacturer)
American cigarette manufacturer, was the first to start selling discount brands (GPC)- Miami Herald (Newspaper)
- National Union
- New York Times
- Office on Smoking and Health
Responsible for creating reports on the health effects of smoking. Created by the Public Health Service.- 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.- Philip Morris U.S.A. (See Philip Morris Incorporated)
See Philip Morris Incorporated- Public Health Council
- R.J. Reynolds Tobacco Co. (Cigarette manufacturer (Camel, Winston, Doral))
Cigarette manufacturer (Camel, Winston, Doral)- Reader's Digest
- Reader's Digest Association
- Saturday Evening Post
- Senate
- Social Security Administration
- Tobacco Institute (Industry Trade Association)
The purpose of the Institute was to defeat legislation unfavorable to the industry, put a positive spin on the tobacco industry, bolster the industry's credibility with legislators and the public, and help maintain the controversy over "the primary issue" (the health issue).- Tobacco Observer (periodical)
- University of Arkansas
- Wall Street Journal
- Washington Star
- White House
- American Lung Association
- Named Person
- Anter, Harry J.
- Bogart, Humphrey (Actor, Smoker who died of lung cancer)
- Bonnet, William
- Brown, Jerry
- Califano, Joseph A., Jr.
- Carlson, Regina (GASP, Founder of NJ chapter)
- Caroline, Queen
- Charles, King
- Churchill, Sir Winston Leonard Spencer (British Prime Minister (1940-45), cigar smoker)
- Columbus, Christopher (European explorer, Introduced tobacco in Europe)
- Dane, Doyle
- Danforth, John C.
- DeWitt, Wallace (In Charge of Reader's Digest)
- Duke, Washington
Defense- Eisenhower, Dwight D.
- Graham, Billy (minister)
- Graham, James A.
- Hammond, Mary
- Helms, Jesse (U.S. Senator, (R-North Carolina))
Strongly pro-tobacco- Jamerson, Diane
- Jones, Walter B.
- Kane, John
- Kelley, Catherine
- Knight, Ruth H.
- Kornegay, Horace R. (TI President and Exec. Director)
VP Leaf Ops (RJR), TI Chairman (1985)- Lewis, Jerry (actor)
- Low, Nancy
- Macarthur, Douglas
- Miller, Larry
- Miller, Laura
- Monahan, James (Reporter for Readers Digest)
- Moock, George
- Morgan, Robert B.
- Pinney, John M.
- Pitney, Kathleen
- Rabb, Harriet
- Randall, Tony
- Relic, John
- Robbie, Joe
- Rogers, Jacquelyn
- Roosevelt, Franklin D.
- Ross, Harold
- Roy, William
- Schreiner, Samuel A., Jr.
- Speigel, Bob
- Taylor, Robert L.
- Thorn, Frank
- Wallace, Lila
- Waller, Charles
- Whitley, Charles O. (TI Spokesman, U.S. Representative (D-NC))
- Wortman, Donald
- Yoder, Edwin M., Jr.
- Bogart, Humphrey (Actor, Smoker who died of lung cancer)
- Date Loaded
- 16 Mar 2005
- Box
- 8228
Document Images
The U. S. tobacco hutustry contributed nearly $50 billion to the nation's economy
in 1977, a major new study reports. Nearly 2.3 percent of the nation's work force
was employed because of tobacco.
Dade County and Smokers
Tobacco Contributed
$50 Billion in 1977
resent 3.2 percent of the total taxes
collected.
Tobacco, its products and related
products and services, contributed 2.6
percent of America's gross national
product in 1977, the study says. Nearly
2,3 percent of the national employ-
ment was attributed to tobacco.
The year 1977 was the most recent
for which all data necessary for the
Voters Reject Restrictions
study were available. It is the second
major application of Wharton's recent-
ly developed appro~h for linking a
model of an industry with a national
econometric model.
Tobacco affected all s~ctors of the
economy, the study said. It shows, for
instance, that 28 percent of total U.S.
sales of outdoor advertising is attribut-
able to cigarettes; 11 percent of the
sales of aluminum foil; and 6 percent of
The U.S. tobacco industry contn'b-
utcd nearly $50 billion to the nation's
economy in 1977, according to a study
by the Applied Research Center at the
University of Pcansylvania's Wharton
School.
Some 2,067,000 were employed in
1977 either in the tobacco industry or
in other industries beeanse of the to-
bacco industry, the study found. These
people were paid $25.2 billion.
-- Atso,-tobaoco~ontributed SLL9J)il~hoxnagaziue advertising.
lion in federal taxes and $7.3 billion in The study also breaks down th~c0~--
state and local taxes.These figures rep- tribution of the tobacco industry by
state. It finds, for example, that New
Jersey is the fourth leading state in
terms of employment of people in
cigarette-related support industries.
In New Jersey, 4,300 jobs arc attrib-
utable to the tohaeco industry, $58.8
million in wages, and more than $174
million in excise, income, and other
tax revenues.
Although the tobacco industry re-
gards itself as the nation's oldest, dating
from the first export crop in James-
town, Virginia, in 1613, no survey of
both direct and indirect contributions
had been made until the current study
was undertaken.
The Wharton study was commis-
sioned by the Washington, D. C., firm
MIAMI, Fla.-After an anxious eve-
ning waiting for a morning count of
more than 3,200 absentee ballots, arid
then a recount, Dade County officials
announced that voters do not want to
severely restrict public smoking.
Only 27 percent of more than 700,000
registered voters turned outon astcamy
May day for the special election. Final
tallies show 96,512 (50.21%) voted
against the proposed ordinance, 95,692
(49.78%) in favor.
The ordinance, more restrictive than
the Proposition 5 proposal defeated in
California, would have prohibited
smoking in virtually all enclosed build-
ings except private residences. Smoking
would have been banned in many work
It would have mandated that every
restaurant, even tiny ones, would need
a no-smoklng area.
No-smoking signs would have
sprouted in l~de County from barber
shops and howling alleys to shopping
malls and train stations. Maximum fine
for violations was $500.
The ordinance was put on the ballot
by a lO.O(}O-sigmture l~ition,'circu-
latod by the Group Against Smokers'
Pollution (GASP). It used the slogan:
"Be Fair. Vote for Chain Indoor Air."
D~le Voters fsx Free Ckoicc was
formed to fight the ordinance, Through
advertisements it stressed that the pro-
posed law would meddle in people's
lives and businesses. 'q'he ordinance
punishes workers and consumers by
raising business costs," the ads said.
A study by a certified public account-
ant firm showed that the immediate
costs of the ordinance would have been
$8 million to public and private sectors.
For instance, the 23,172 buildings in
the county would need signs at public
cntrances-a projected $2,1 million
The cost to provide Miami Interna-
tional Airport with smoking and
smoking sections would have been
$807,000, the firm said,
Dude Voters for Free Choice spent
more than $1 million to defeat the meas-
ure: this amount became a campaign
issue. Besides tobacco companies,
other contn'butors included Kentucky's
burley tobacco farmers, restaurant and
hotel owners and private individuals.
"As far ~s the tobacco iodustry is
eoneerncd," a Dude Voters spokesman
said, "it seems totally logical for them
to do whatever they could to help assure
that our voters knew the full implica.
tlons .... You can't present facts, start-
ing from scratch, in a populoos commu-
nity like Dade County without it
lag money." GASP had been given 53
the anmber tmrehased by Dade Vo~ers.
Bilingual City
Dadc, a sprawling county, contains
more than 1˝ million people. It includes
a heavy proportion of older people: one
out of six voters is over 65.
The bilingual city of Miami, hecom-
inga large Latin American trade center.
is in Dade, as is the tomato-growing
region surrounding Homestead, and
Miami Beach, still noted for tourism.
Tourism, in fact, was an election is-
sue. Some 4.2 million tourists spent
Cont. on pg. 5
of Covington & Burling for its client.
The Tobacco Institute.
In order to protect the confidentiality
of certain competitive data. The Insti-
tute authorized Covington & Burling
to coordinate the project. The Applied
Researoh Center worked in conjunc-
tion with Wharton Econometric Fore-
casting Associates.
A summary of the findings is avail-
able from the Wharton Applied Re-
search Canter and The Tobacco
Institute.
Joe Robbie. president of DoMe Voters for Fm~ Choice, tell~ the Miami med~a that
~,oters rcje~ed a ~al to ~ ~,m,~ in mecf p~bl~ pl~ee~.
Ti53180757

Congress Rejects
,Expo, Tobacco Ban:
WASHINGTON. D. C.-Tbe U.S.
House of R~pres~ntat/vcs
an effort by Rep. P~ter
N.Y.) t~ proh~it financing the sale of
$300,000 oftobaoco to Guyana.
Cougressmcn Walter B. Jones.
Charles O. Whitley, and L. H. Fountain
(D-N.C.L plus William H. Natch~r
(D-Ky.) and John W. Jenrctte (D-S.C.)
argued against th~ prohibition.
Fountain said the proposal "'is anti-
tobacco and it is anti-farmer."
In a press release, Fountain stressed
that anti-tobacco forces in Congress
had renewed their attacks. Battles
against these forocs "may cause ulcers
and severe tensions, but they must bc
fought and won today, tomorrow, and
forever," he said.
"lax Pmlxmal~
In March, t~,vo Midwestern Con-
gressro~n introduced bills to increase
the federal excise tax on cigarettes.
with tim added revenues being targeted
for special purposes.
S~n. John C. Danforth (R-Mo0 intro-
duced bills to increase the federal excise
from the current 8 to 18 cents per pack.
Danforth wants the money, an esti-
mated $2.9 billion, spent on his pro-
posed national catastrophic health in-
The plan was immediately criticized
by North Carolina State Agriculture
Commissioner James A. Graham, who
said, "Here we arc in the worst kind of
inflation, and they want to increase cig-
arette taxes by 10 cents!'"
"The purchasers of tobacco pay more
than their share of the national tax
burdeax" said Richard R. ld~d~r,
mr of rr~dia relations at The Tohaoco
h~st/tut~, in a letter in a Raldgh n˘ws-
Rap. Richard A~ Gaphardt (D-Mo.)
introduced a bill to increase tim faderal
tax to l0 cents per pack. Gaphardt
wants the money to help offset Social
Security deficits.
Another bill, introduced by Rep.
Millicant Fenwick {R-NJ.), would
quire cigarette manufacturers to help
compensate workers disabled "'as a
suit of employment-related diseases"
caused by asbestos inhalation and~or
inhalation of tobacco smoke.
Reuas Letter
Also in the nation's capital, Rep.
Henry S. Rcuss (O-Wis.) wrote the
OffiCe ofM~m~nt an~Budget urg:
ing the govcromcnt to initiate "a pro-
gram to wean American farmers away
from tobacco."
Rcuss wants a program of crop sub-
stitution, citing success with programs
in Asia and South America, where
farmers plant crops such as wheat and
lentils instead of those which produce
narcotics.
In the United States, tobacco prod-
ucts arc distributed through approxi-
mately 1.35 million retail outlets, rang-
ing from vending machines to the
tobacco departments of chain-operated
department stores.
Maryland's tobacco auction opened this spring with traditional fanfare, plus the
unveiling ofR. J. Reynolds Tobacco Co.'s "Pride in Tobacco" campaign. Tobacco
Institute Presidenl Horace R. Komegay told farmers that Department of Health,
Education, and Welfare Secretary Joseph A. Califano Jr. "is to tobacco what the
boll weevil is to cotton .... Callfano' s actions may unify the tobacco industry in a
way that it has never been unified before."
Califano's Charge Lacks Basis
A complaint by Department of Health, Education,
and Welfare Secretary Joseph A. Califano Jr., that
smoking-related illnesses account for more than $1
billion in Social Security disability payments appar-
ently has no factual basis, according to officials of
The Tobacco Institute.
Califano made the charge last October during a
political campaign appearance in Connecticut. This
spring, legislation was introduced in Congress, in-
spired by the Sccreta~'s statement, to increase clga-
rette [axes to help defray Social Security medical
expenses.
Meanwhile. The Institute had asked HEW, under
the Freedom of Information Act, to supply the basis
for the Caiifano declaration.
The Institute said the response showed that the
request was sent by HEW staffto the Social Security
Administration, a branch of the deparlmcnt, for reply.
Califano's statement would mean that one out of
every $13 in disability costs could be attn'buted to
smoking.
According to The Institute, this was the history
of tbe Callfano st~isti˘, coataincd in government
memoranda oblained from the Social Security Ad-
ministration:
In December 1977, Califano asked the acting
Social Security Commissioner, Donald Wortman, to
investigate whether data were available indicating
how many persons were on disability rolls by resson
of diseases which he said are caused by smoking.
In t~n days, just before Callfano's Jan. 11. 1978
declaration of"war" against tobacco. Wortman sent
him tables indicating payouts for disabilities "for
diagnostic categories in which there is a risk factor
because of smoking." He did not refer to illnesses
"caused" by smoking.
Wortman included in his message to the S~crotary
a memorandum from Herbert Blumenfald, M.D.,
acting chief medical officer in the disability insurance
buroan of Social Security, which stated. "It is not
known what the smoking habits of this specific popu-
lation were, nor can it be determined that the dis*use.
in any sin#e individual, was caused by smoking."
Califano wade no reference to the matter in his J an.
I 1, 1978 speech. In April of last year, a Ms. Laura
Miller of his stuff sent him another memorandum in
which she said 28 percent of disability awards were
g~ing to persons who had diseases she said arc linked
to smoking.
Miller applied a pcrocn~gc in each disease category
to obtain the number she said could be caused by
smoking, and concluded that nine percent of the
$13.3 billion annual Social Security disability bill-
more than $1 billion-was therofore the fault of
smokers.
She indicated, in parentheses, that there was no
actual case of a reported smoking-caused disability.
however.
These and other memoranda in the government file
contained warnings about the calculations, such as:
"'No data is readily available on tbe smoking pat-
terns of disability bencficiarias."
"'This reasoning depends on broad-brash assump-
tions."
"'Assumptions have been made that may not be
correct, it is difficult to know how reliable the con-
clusions arc.'"
Institute officials said they have no knowledge
whether warnings about the unreliability of the infor-
matinn were actually sccn by Califano before he
made his ~at pronouncement in Connecticut. "They
said there apparently was no such information avail-
able on Capitol Hill before the tax increase mcnsures
were introduced in rospons˘ to that pronouncorr~nt.
TI53180758

WASHINGTON. D.C.-The To-
hacco Institute in a letter to Depart-
ment of Health. Education, and Welfare
Secretary Joseph A. Califano Jr. sa~d.
"'We are confidant that cigarette brand
adverdsing is not the reason young peo-
ple begin smoking."
The letter, from Tl's Fre.sidant Hor-
ace R. Kornegay, quotes the new Sur-
geon General's report on smoking.
which suggests that peer pressure
might be a primary factor in teen
smoking.
Califano recently told a San Fran=
eisco audience that smoking among
teenagers has declined 25 percent since
1974. He sa~d that slightly more teenage
Imcco industry that sr~kin~ ~ ~n adult
Tl'~ p~ident If~t~ a n~mber
t~en ~ implement tM~ ~cy, i~b~
ing votuntee~ng in 1969 to c~l
advertising io the television and
media "be~nse of their unique app~l
to children."
Ko~e~y ~d that "'seff-~s~nt...
h~ chamtefi~d ci~tte ~v~ising
for m~y ye~."
T! also ~d, in ~ e~lier p~s
statement. ~at "just th~ mnths
~o, Mr. ~ff~o w~ t~ing to ~
the count~ by wfin#ng his ~nds over
what ~ called a te~ble incr~e in
. -- --gifts thanA~oycnow smoke~cigar~eates.~ youth tobac_c.o .s.mokj.ng which he said
H EW's Secretary subsequently wrote
the chief executive officers of six major
cigarette companies asking that the in-
dustry allocate ten percent of its adver-
tising and promotion budget "'to a spe-
• cial campaign aimed at teenagers and
children, emphasizing that smoking is
not for children."
Kornegay's letter to Califano said,
"'It has long been the view of the to-
was the result of sinister advert/sing
campaigns.
"At the same time, he already had
the data showing that tccn tobacco
smoking was down and that teen mari-
juana smoking was up sharply. Yet do-
body has advertised pot. dust recently
his department announced that more
teenagers have tried alcohol than to-
bacco," Ti said.
Award-Winning Editorials
Decry Anti-Smoking Zeal
Edwin M. Yoder Jr., editorial page
editor of The Washington Star, won
journalism's top award, the Pulitzer
Prize, this year for his editorials.These
included attacks on Department of
I~l'ealth, Education, and Welfare Secre-
tarydoseph A. Califano dr.'s anti-smok-
ing campaign. Yoder is a pipe smoker.
"What Mr. Califano is doing with his
anti-smoking hoohah," the Star wrote,
"is illustrating further the tilted concept
of the reds as parents and the citizenry
as recalcitrant and contrary children, to
be coerced if they will not heed. This
corrosive thesis has become as ubiqui-
tous within federaldom as it is dubious."
Writing about Califano's z~al, the
Star said, "We fear that one of these
days he may decide to abstain, too,
from an occasional taste of grape or
grain-and mandate a round of celery
juice for the boys in tic back room."
Of a Washington, D. C., ordinance to
prohibit public smoking, the Star said,
"'The anti-smoking zeal that is widely
translating itself into legislation is a
brilliant example of authoritarian recti-
tudo-a manacling of the individual for
his own good .... What this is, simple
and unadorned, is a gratuitous intrusion
-by a local government that would
have. a passerby might think, issues
more deserving of its enor#es."
The Star also criticizecl the proposal
in California, which voters re..~ctod, to
restrict public smoking.
"'We say Califom~'s "proposition"
before long they'll declare that smoking
in the woods is detrimental to non-
smoking wildlife and want to ban smok-
ing in the High Sierras."
Nation's Airlines
CAB Seeks Comments on Smoking
WASHINGTON, D. C-The U. S.
Civil Aeronautics Board is asking for
public comment on a number of pos-
sible new rules concerning smoking on
commercial aircraft.
Among the proposals CAB is con-
sidodng are requiring that cigar and
pipe smokers be separated from non-
smokers by at least seven rows, and
establishing a buffer zone of at least
one row between smoking and non-
smoking sections.
Other possible rules to be debated
include requiring partitions between
smokers and nonsmokers; requiting
smokers to extinguish cigars and pipes
on request; banning all smoking on
srmdl alrcrall or short flights; and re-
quiring cigar and pipe smokers to sit
by the air vents.
CAB member Richard d. O'Melia
ur~d LVa~t "reli~lc seiontific te~ts on
the llow of smoke" he undertakan.
"We need more hard information.'"
q~etme and hanmgue, before we can,
in the back of the plane or in the win-
dow seats or throw them out alto-
gether."
Comments are to be sent to Docket
29044, Room 71 I, Civil AerOnautics
Board, 1825 Connecticut Avenue.
N.W., Washington, D.C. 20428. The
deadline for initial cormnants is Aug.
20.
Smokers "Fed Up"
Exactly how smokers and nonsmok-
ers arc separated depends on the air-
line. Most place smokers in the rear.
Alaska Airlines currently is experi-
moating in first-class by putting smok-
ers and nonsmokers on selmrate sides
of the aisle, according to Connie
Ziehall,a spokesman for the airline.
CAB's new regulation that pipe and
cigar smokers be seated to the rear of
cigarette smokers resulted in a number
of ~idincs b,..i~ ~ and ci~,
acoording to a Tobacco Obee~rver
survey.
Mta. East--, Natiot,~l. and B.qmiff
some variation on exactly how this is
done.
A spokesman for Air Florida said
that smokers may soon revolt. "'People
keep telling them they have to be
pushed aside because they like ciga-
rettes, and they're getting fed up,"
he said.
The Tobacco Observer
presents information and comment on
publle events of interest to the tobacco
industry. It recognizes that there is
diversity of opinion akmut tobacco use
and that charges against tohac˘o are
widely publicized while less attention
is given to differing views, which are
included in our columns. Its aim is to
aid full, free and informed disea~ion in
the public interest, in the conviction
that the smoking and heaith contro-
versy must be rtsohted by sciemifie
Pablkhed by The Tefmeea lnaatute
Horace R. Kornegay, PreMdent
Paul Kn*~ck. Edict
Vicl~e Wilton. Cimulation Director
TI53180759

Cancer: Com,plex Diseas e
The ~ industW has ahvays
stressed that scientific resea~ch~ not
and-smoking campaigns and rhetoric,
will solve the smoking and health
controversy.
One of the more interesting recent
~earch reports concerns lung cancer
in nonsmokers.
To wit: In the Journal of the National
Cancer Institute, a California research-
er explains that surveys show that
"the lung cancer mortality rate has
risen substantially hetw~en 1914 and
1968 among persons who never smoked
tract show marked g~ogtaphic v~ia-
tions within the U.S." Such data, ~y
not~, "*have ~n us~ tu ~no~te
clu~ to t~ ~us~ of c~cer.... [t
see~ unlikely ~at smoking
~p]~n ~1 of ~c g~phic v~afion
in lung ~er."
~ey expl~n tha~ follow~p studi~
of lung ~cer ~d ~c en~m~ent
~i~ ~nducted in co~ ~ of
M~ ~d no.hem Flofid~ n~ a
1~ Pennsylv~ia zinc smelter, ~d
in southern Louisiana, whe~
leum and other industries are
cigarettes." concentrated.
This, he writes, "indicates that fac-
tors ~n addition to personal ~:igarette~-- _Can.~lia,n~ ~ea.r. ~˘rs re/~0_rted in.th~
smoking have had a signifiednt effect same journa! mat nit company workers
on the mortality rate from this disease exposed daily to crude petroleum or its
• . . A more complete understanding
of lung cancer etiology is needed."
The scientist studied lung cancer in
nonsmokers, h˘ wrote, because "no
mechanism" explaining how smoking
might caase lung cancer has been found
and hecanse many other factors have
not been examined extensively in rela-
tion to lung cancer.
Two National Cancer Institute sci-
entists recently wrote in the Journal of
Occupational Medicine that, "Mor-
tality from cancers of the respiratory
products shatistically had about twice
the risk of lung cancer as employees
not exposed. A Colorado physician
told a scientific meeting about in-
creased lung cancer death rates in an
area near a plutonium processing
plant.
These types of research projects in-
dicate the complexity involved in lung
cancer, Perhaps voluntary health asso-
ciations and others, so long accustomed
to giving facile answers, should take
notice.
Is Everything Hazardous?
A noted scientist recently told Con-
gress that America is suffering from
"cancemphobia." That seemed a bit
extreme. But after viewing press clip-
pings, we think this doctor's diagnosis
is accurate.
Black pepper apparently caused lung,
liver, and skin cancers in mice, Ken-
tucky researchers report. Asbestos,
considered a emcincgen by most sci-
entists, spews from many hand-held
hair dryers, the press informs us. It
may he contained in more than 100
common consumer products, reports
the government.
"Acid rain" falling on Kentucky may
mean increased lung cancer, says a
Louisville newspaper.
Otherconsumer products linked with
cancer in recent press headlines in-
clude cosmetics (shampoos, bubble
baths, various skin creams), soft drinks,
and chareoal-brniled steaks. Eating 40
tablespoons of peanut butter per year
iacreases your chance of liver cancer
by one in a million, says the Boston
Sunday Globe.
Scientists report that women who
have had nmnernus sexual partners
have a much greater rate of cervical
cancer than, say, nuns. (Sex causes
eaoccr?.) And Amoriea w~s shocked
when researd~ters made front-page
headlines-by saying McDonald ham-
bangers might etude cancer. (In fact
time toilet have been tl~ ~ slmke.)
o~t of every ten Americans I~leve
But even with all the gloomy news,
we are not ready to do what a friend of
syndicated columist Erma Bombeck
tried. The friend "had a great idea for
longevity. She bought a research rat
and followed it around day and night.
Everything it ate and survived, she
tried. Everything it endured without
damage, she went for."
Unfortunately, after two days the
friend called Bombeck to say the rat
had died.
"What happened?" asked Bombeck.
"Got hit by a mousetrap a block from
home," remarked the friend.
E read rr~ty I~tm's in y~ur paper
ooncecn/ng the tobacco fan~er oomplaining
about harrssarnvat of tcha~am as a pt~luct.
Why don't some of'these poople convert
to an agricultural product suitable for dis-
tilling to make gasohol?
Riohard B. King
[ have a pet peeve that l would like to
present, the use of the term "'tobacco sub-
sidy." The government does not subsidize
tobecco. It merely makes loans that are re-
paid. with interest.
Jdt'D. Vanghn
Stuart,
I would appr~iate it if you took us off
your mailing list because neither my hus-
band nor I smoke and we are greatly op-
posed to it. We don't even like anyone to
srookela our-horne~
Mary Hammond
The discovery of your journal is the
highlight of this year. lit] is the first glimmer
of sanity I have seen in years.
Mark Rohcrts
Dallas, Tex.
i will be opening a tobacco store soon
and I have been advised that The Tobacco
Observer will be of great importance in
operating a tobacco store.
John
Laacas~,
EDITOR'S NOTE: I don't know if we are
of"great importance" in opening a tobacco
store, but we sure would be happy to send
our six-time-a-year free publication to any
of Mr. Echols" customers who would like it.
I work for Philip Morris, U.S.A., us a
sales representative and I read your paper.
Currently, the cigarette is yet another "in"
thlngto object to, Anti-smokers lake it upon
themselves to preach and lecture about
something which is none of their hUSiness.
In a word, they are pests.
J. Coplln
Fddley, Minn.
I consider your paper an insult. Please
remove our name from your mailing llst im-
mediately. Feel free to donate any money
you would have spent mailing us future is-
sues of your ridiculous publication to the
American Lung Association.
John Kane
Omaha, Neb.
m~k~s" m~sey-oar mow..y-in the oar-
We aL~ oh]ce.t m tax money being sl:~,~
This is our ed. We urge those who feel as
we do to join us.
Harry J. Anter~s
SIIv~ Spring, MO.
Recently I was given a copy of your
paper. I enjoyed reading its interesting and
infennative articles.
Tohacea Farmer
Vtm, N.C.
"'Because I received so many out-
raged replies from readers" disagreeing
with my advice to a hostess that she
shauMnot forbid guests to smoke fn her
home, I feel a response is in order.
"1 maintain that 'forbldding" is not a
part of'hostessing." My husband and 1
don't smoke, but many of our friends
do. Like you, I do not enjoy the smell of
smoke in my house, but opening win-
dows and emptying ashtrays promptly
after my friends leave is a small price to
pay for the pleasure of their company.
If my friends burned my rugs or tables
or blew smoke in my face, as many of
you who wrote claimedyourfriends do,
I might feel d~O~erently. But my friends
are considerate people who do not do
those things. Many of them, ~f they find
they are the only smokers present, do
put out their cigarettes or go to another
room to finfsh them without a word from
me. But I would never think of forcing
them to step out into the rain or snow--
or even into the sunshlne-to enjoy a
cigarette!
"To tho~e of you who have very deep-
seated feelings about smokers, my only
~gge~ion is ~ ro'~i~ from asking
them to your homes.'"
TI53180760

Dare.. Voters Say ,.
Ml/d~I, FI~ - ~ti~aemally in the of the tm~osal.
v
t~ en~ to plw ~e ~r Bowl~ up ~c~ at o~er ~teb. ~o~ ~d
D~ C~n~ ci~ns cxp~uw ~e pm~ w~ld have ~t his
~ll~s to ~w ~v~nt ~ ~ $~,~ ffi ~el ~d wou~ hu~
s~t ~bl~ ~king.
~ ~
~llis Allen Nt~ ~pl~ ~t
..... ~ .....
S~ Security ~ voted ~t t~ ~ ..--. ~a u~ It ~ fl~t ~r"
pm~s~ o~ ~use ~R ~ T~ M~Fa~n
costs to ~s~ts WoulO p~ty
.... ~utlve DIr~tor
viewer ~er ~ting his b~lot at ~ .,-.~
~..M..,~,..
I~toml s~mm. ~/19m
Jo~ M. Be~udez voted no, ~yi~ "
he is ~nee~ ~ut little businesses. ~
_ _
_ "Most ms~u~ts ~ t~ sm~l to ~ convention busin~s.
~ivid~int~m~ffn~mok˘~ sec- ~li~o_0p~s~d the me~-
72-28010 Vote
Zep ills'/oters
Rejec 5imo dng Ban
ZEPHYRHILLS, Fla.-An April
effort to ban public smoking in this tiny
town was rejected, 512-200 (72-28%).
A citizen's effort led by a local res-
taurant owner, Larry Miller, helped
defeat a proposed ordinance, written
so poorly that it might have prohibited
smoking in a home or ear.
More people (300) signed a petition
to put the measure on the ballot than
voted in favor.
Zephyrhills has only 3.215 regis-
Larry Miller
tered voters, yet its population swells to
more than 40,1300 each winter. It at-
tracts northerners with moderate or
low incomes, many of them retirees.
They live in mobile homes and cinder-
block houses and e~joy a less con-
Located 29 miles northeast of Tamp~
the town was named for its roiling hills,
dotted with eitrns groves and its zephyr-
Bet it wasn't a gentle wind this
G. Donald Kossuth, a local bookstore
owner.
Kossuth's proposal prohibiting smok-
ing in certain public places, and any
enclosed area where two or more
gather, was turned down by Zephyr-
hills' council. Kossuth then collected
signatures on petitions.
His proposed ordinance mandated a
$50 fine for the first violation. A judge
would then determine the jail sentence
for additional violations. City attorney
Charles Waller said a person hypotheti-
cally could be given a life sentence for a
second offense. Kossuth told a local
newspaper that 30 days in jail would
not be out of llne for a second
couvietion.
"Police State Ordinance"
'`The issue is government interfer-
ence," says l~rry Miller, a friendly,
talkative man who formed Citizens for
Reasonable Government to, as he says,
"'beat the damn ban."
Miller was concerned, partially be-
eanso the ordinance would prohibit
smoking in his restaurant, a handsome,
oak building.
But Miller also was outraged that
"this is being crammed down our
throats. When it comes to legislating
peoples" private lives, we need to draw
the llne:' He joined with a car sales-
man, Em Ellis, and a retired business-
woman, Mrs. Catherine Kelley, to fight
the proposal.
Citizens for Reasonable Govern-
ment spent $340 in its victory-some
went for newspaper ads urging a vote
against a "polioe state ordinance."
Millor remains a little bitter that the
special election cost the city $530.
*
al~cared i~ England in 1624.
tions, he said.
His wife also voted no, saying she is
"against bureoucracy."
Freddie and Marie Bianda said the
smoking restriction ordinance would be
a "hardship on little lxople.'" Robert
Blaneo called it "too costly."
"They'll tell you when you can eat
soon," said another no voter, who
fused to give her name.
Event's Heroe~
The anti-smoking ordinance was
beaten by slightly more than 800 votes,
meaning, of course, that every vote was
important. And Frank Thorn's shuttle
system played its part.
Thorn is general manager of the Omni
International Hotel and an adamant foe
Dade
Election
ConL from I>g, 1
$1.7 billion in the county last year.
Many voters feared that the ordinance
would discourage travelers.
Also,the county collected $36 million
from cigarette taxes last year; some
worried that it would decrease.
Joe Rubble,president of Dade Voters
and owner of the Miami Dolphins, told
the media that a larger turnout would
have increased the mar~:in of victory.
Robbie deeded using a special elec-
tion to deoide the issue. According to
the county's election division, total cost
for poll workers, ballots,and computers
"There are two messages here for the
people who seek similar restrictions
elsewhere and the people who have to
decide whether to enact them or not,"
said a tobaneo industry spokesman.
"'One is that an informed electorate
is not prepared to tolerate the urmeces-
saw hordoas of such restrictions. The
other is that wberevor the issue may
that the decisior~n~kers-whether the
-are fully inrz~m~l nb~,t it.~
ure. The Dade Fraternal Order of Po-
lice handed out brochures stressing that
This voter in Dade County's special
election on a smoking restriction ordi-
nattce cast her ballot at Miami's
famed Orange Bowl. The measure
was defeated 96,512 to 95,692.
the proposal was "virtually unenforce-
able." "'It just has no valued" said Bob
Speigel, president of the Florida group.
Press Opposition
Local newspapers urged a no vote.
"'Using a sweeping legal regulation to
tell people where they may or may not
smoke is an idea whose time has not
come," said the Miami News.
"'To force every restaurant, barber
shop, and waiting room in town to pro-
vide facilities to segregate smokers is
simply unreasonable," said the Miami
Herald. "Proprietors have the right to
offer this convenience to their eastom-
er~ now, and many do."
A newspaper in Homestead said.
"'We hope that the voters quash this
issue onoe and for all at the polls ....
ing the taxpayer*" money."
The T~ Olmmwer 5
TI53180761

Duke Homestead, seen in this rare 1904 photo, was the beginning of a worldwide
tobacco empire. It is currently being restored in Durham, N.C.
• 870 Restoration
!_ Awaits Visitors
DURHAM, N.C.-Duke Home-
stead, origin of the 19th century to-
bacco empire, is being reconstructed to
depict tobacco farming in the 1870"s.
Nearby, under Carolina pine, pecan,
and black walnut trees, is a new to-
bacco museum. They make a fine
doubleheader of free atlractions.
"'Tobacco is the goose that laid the
golden egg in North Carolina," says Jim
MePherson, site manager of Duke
Homestead.
A giant cigar store Indian appropri-
ately stands at the museum's entrance
to greet 25,0(1~ visitors each year.
Excellent exhibits include a 1920
cigarette vending machine. Camels, Old
Golds, Chesterfields, and Lucky Strikes
could be purchased for 15 cents.
Matches- one cent.
A push of a button yields a tobacco
auctioneer's musical chant. Old adver-
tisements for Bull Durham and Mail
Pouch chewing tobacco are displayed.
Philip Morris' research helps grow to-
bacco inside the museum.
McPherson explains that the To-
bacco History Corp., which oversees
this historic site, has launched a
$500,0~0 fund-raising eampalgo. They
hope to construct an addition to the
museum, and to produce a tobacco his-
tory film. The museum is already forced
to store some antique machines respen-
sible for mechanization of the tobacco
industry.
Origin of an Industry
The Duke name is synonymous with
tobacco.
Washington Duke, educated at a
plow handle, served in the Confederate
Army, fought at Richmond, and was
captured near the war's end.
Legend has it that he was released at
New Bern, and walked 135 miles home.
There he found devastation, and a little
In a corn crib, the Dukes manufac-
tured a smoking toba~:m named Pro
Bono Publico ("For the Public Good"L
At first they trasled it for sup#ies; whon
it p~ved popular they eemstmeted a
two.~tory f,~etory. By 1872, they w~nu-
faclm~l I~5,~ p~m~ i~ a ~ndim~
~ involvi~ ~ filling. ~xl
packing the tobacco into cloth bags.
Duke's product was so successful
that in 1874 he moved his factory tu the
nearby hamlet, Durham.
in 1881, his son took a gamble manu-
facturing cigarettes. The venture's sue-
cess is the heritage of most modern
U. S. cigarette companies.
The two-story modest frame house at
Duke Homestead reflects its antebel-
lum origins. It has pieces of Duke
family furniture combined with period
pieces.
The Dukes' philanthropy aided or-
phanagos and churches along with en-
dowing Duke University and hospital.
Contributions from R. J. Reynolds To-
bacco Co. and the Liggett Group helped
make Duke Homestead restoration
possible.
Toronto Law
Struck Down
A city of Toronto ordinance
making it illegal to smoke in cer-
tain public facilities has been
struck down by the Ontario Su-
preme Court,
A three-judge panel ruled the
two-year-old law turned merchants
into policemen when it delegated
enforcement respons~illty to
storeowners and managers.
Writing the unanimous decision.
Justice J. Cory said that for the
city "to delegate what amounts to
a policing authority to a 'proprie-
tor' would seem to be an invalid
exercise of delegation of author-
ity."
"One can imagine the dil~cul-
ties that might be encountered by
a small, feminine proprietor of a
convenience store attempting to
caz~ out the dudes delegated to
and imlxmed upon her," Cory
The court challenge to the law
wm laxmght by Top Drug Mart,
whid~ b ~ It/lm~ri~l To-
during the 1970~, wa~ intrndueed to
western culture by explo~ers of the
Amedcan continents. In fact, the ltal.
Jan whose name was given to the new
land recorded the first example of
tobacco chewing.
In 1499, Amerigu Vespocoi landed
on the Margmita Islands, offthe Vene-
zuelan coast. And though Christopher
Columbus" diary carried the first rec-
ords of tobacco to the Old World,
Vespucci first related the chewing of
the leaf. Tribesmen chewed a "green
herb" which was sometimes mixed
with a powder; historians have con-
cluded that the "herb" was tobacco.
journey ~ ~ 1~, fi~
~. His ~y~ ~ d~cn~ in ~
15~ ~ of M~n ~m~r,
"C~mo~phi~ Int~uetio." W~d-
~emfil~r. ~cit~ ~t the dis~ver-
ies of V~pu~i. su~sted in "Cosmo-
~i~" ~t ~e ~ntin~t ~ ~
A~fca, ~er Amefigu Vespucci.
He ~te. "I do not see why we
s~uld ~tly ~sa to n~e it Amer-
i~... ~er i~ discove~r Amefcus, a
m~ of ~e~us mind, since ~th
Eum~ ~d Asia t~k their n~s from
women,"
~e ~k's ~pul~ty ~w ~d
along with it. ~eept~ce of WMd-
seem~lieFs p~sal. So when Colum-
In his letters to Piero Soderini, dated bus" achievement became widely
1504=06~esp~cc~se~hed~thena" ~n~ the name Araeriea was too en-
fives' practice: trenched in the language to change it
The customs and manners of this
tribe ore of this sort: In looks and
behavior they were very repulsive,
and each had his cheeks bulging
with a certain green herb which
they chewed like cattle, so that
they could scarcely speak. And
hanglngfrom his neck each carried
two dried gourds one of which was
full of the very herb he kept in h~s
mouth; the other full of a certain
white flour like powdered chalk.
Frequently each put a certain
small stick (which had been moist-
ened and chewed in his mouth)
into the gourd filled with flour.
Each then drew it forth and put it
in both sides of his cheeks, thus
mixing the flour with the herb
which theirmouths contained. Thb
they did very frequently a little at
a time.
to Columbia.
The practice of chewing tobacco was
carried to Europe by Spanish sailors
who were forbidden to smoke aboard
ship. They turned instead to chewing
the leaf.
In Europe, alleged medical benefits
of tobaccb brought increased use of
the leaf. Sixteenth-century citizens
heralded tobacco as trealment for
consumption, epilepsy, gonorrhea,
cancer, and "'plague fever." People
This "flour" was probably pulver-
ized shells. In this form, the lime in the
shells is released; its interaction with
the leaf produced a mild intoxicant.
Vespucci mentioned this effect, saying
natives chewed the mixture to such an
extent they could scarcely talk.
It is also believed that chewing the
concoction relieved thirst by acceler-
ating salivation. And in this tropical
culture dependent upon rainfall for
fresh water supplies, substances pro-
yoking moisture were vital on fatiguing
journeys.
The practice of chewing tobacco was
popular among Central and South
American tribes; other traveiers to the
New Wodd recorded accounts of the
natives chewing a leaf and powder
mixture.
Among those relating this sight was
Christopher Columbus' son, Ferdinand.
At age 13, the yoong Columbus
eompanied his father on the fourth
American royce. Ferdinnnd Inter re-
corded the people of Verngm (m~m
Costa Riea) chewing a "dry herb":
a dry herb into their moutks attd chew-
opposed to smoking chewed tobacco.
This practice, however, never held the
popularity of smoking.
Some people, including the Duke of
Albemarle, General George Moock,
and King Charles IL began chewing
tobacco for recreation. Another Eng-
lish monarch, Queen Caroline, chewed
tobacco as a dentifrice.
As sailors brought the chewing prac-
tice from America to Europe, they re-
turned it to the English colonies during
the seventeenth century. In almost
every port, transatlantic seamen were
seen chewing tobacco.
The pastime flourishod in the United
Stata~, especially during the nineteenth
century. And though the later years
brought a decline of tobacco chewing,
it hns expexieneed a resurgence in the
1970˘,. La~ year Americans purcl~t~d
plug. look-leaf, fine-~t, and t~iSL
TI53180762

"The whole thrust of the anti-smok-
ers' argument is that one should not
annoy others. I agree, but that truth be-
gins at home, and ariel-smokers should
observe it, too. Frankly, I think the time
has come for us easy-going nonsmokers
to practice assertiveness and start
shushing these Iondmouths.
"Perhaps we could begin an organi-
zation called PORTIA, standing for
People Organized to Reawaken Toler-
ance In America, with two principal
initial purposes: first, to have a reap-
praisal of the whole impact of smoking,
designed to convey to our 260-pound
nonsmokers that not all of their com-
placeacy is soundly based; and secondly
to induce anti-smokers not to give up
their opinions, which they have every
right to. but to express them less trucu-
lently, less vengefully, and about 60
percent more softly. I get tired of bear-
ing them across a crowded room."
Robert L. Taylor
"Sound Off" column
The Baltimore Sun Magazine
411179
"While I per~noafiy nm a non~naoker,
1 believe that S~cretary C.alifano's cru-
sade against smoking is a classic case
of Imreaueratie overkill."
Rep. Ed DerwinaM (R-Ill.)
1179
The Tobacco Imlitute's second nd-
vert~ent (above) on the public
smoking issue is apw.aring In news
maga2~ and Sunday supple-
ments nationwide. A third ad will
appear a month later.
"1 have always tried to be considerate
of others when smoking, but the whin-
ing and magnificent purity of nonsmok-
ers has finally gotten to me. How all
these people with their horrible aller-
gies. smoke-eansed nervous break-
downs and watering eyes have lived to
adulthood is beyond me. These medical
oddities can sit in a car repair shop, sur-
rounded by the noxious fumes that are
part of those shops, and then complain
about one cigarette. AmazingI"
Ruth H. Knight, R.N.
Letter to the Editor
The Washington Star
3113179
"More and more firms are seeking
nonsmokers in their job specifications.
"Interesting. isn't it, that if you were
to advertise for whites or males only,
pmsacution would come whistling after
you."
'q'here are people who only get their
real satisfactions in this life out of regu-
lating and forbidding other people.
"They do not care for the smoker and
his health, they simply take pleasure in
having found a new category of kickable
citizens, hapless recipients of lw.~wes
and prohibitions.'"
Daily Express
21217P
New Jersey Law
Faces Court Tests
TRENTON, NJ.-State restaura-
teurs are preparing to test in the courts
the constitutionality of tough new
smoking restrietinos adopted by the
Public Health Council here.
Attorneys for the New Jersey Res-
taurant Association have already filed
notice of appeal and the state's Hotel-
Motel Association has appointed
counsel to advise in its own, separate
suit.
The new law, the subject of contro-
versy for two years, goes into effect
Jan. 1 next year.
The regulations require restaurants
and bars seating more than 50 people
to designate no-smoking areas. Owners
and managers are charged with enforc-
ing the state-mandated smoking ban
and ensuring that their ventilation sys-
tems comply with 1977 construction
code standards.
And for each and every breach of
the rules, restaurateurs face fines of
$25 to $1130.
The ventilation requirements are
particularly hard on restaurant owncrs
who, statewide, could face costs of
$~0 million for improvements, and $10
million annual expenses for the new
systea~, according t~ the restaurant
Mot˘,l Associatiea's board ~ directors.
said, "We will be filing suit on the ven-
tilation requirements. We believe they
were arbitrarily enacted to hurt the
betel and restaurant industry."
Both Shaw and Bill ldenden, vice
president of the restaurant association,
say the ventilation requirements are
vague and "capricious."
'Where is a clause in the roles which
says that if a restaurant needs to make
• major" straetural ehaages, it need not
comply with the ventilation regula-
tions, but nowhere do the rules specify
in dollars, size, or scope what 'major'
means. We believe this is an area for
potential abuse, depending on who a
restaurateur knows," Shaw said.
Idendea said the new law could cost
each of the state's 4,600 affected res-
taurants an average of $14,000.
Public Health Council member
Kathleen Pitney cast the lone no vote.
saying she was "bothered" by the en-
forcement question.
The new law totally bans smoking in
most areas of museums, pharmacies,
health care facilities, classrnoms, audb
todums, and larger grocery stores.
But Groop Against Smokers' Poilu-
tion (GASP) activist Regina Carlson
has declared the measures do not go far
smo~in the w~ ~.
TI53180763

HEW"s, ,P, rty
No
WASHINGTON, D.C. -T&xpayer~
got morn than they Imrgained for when
Secretary Joseph A. Califano Jr. de-
cided to throw a 25th birthday party for
his $199.4 billion a year Health, Edu-
cation, ami Welfare Department.
For when the fired bill was totaled, it
came to a staggering $108,678-$93,-
000 more than the official $15,000 cost
estimate given to the press at that time.
The HEW affair was ordered by Cat-
llano "to portray HEW as 'the people's
Department.'"
Califano's Imreancrats were em-
ban'assed enongh by the proof of their
profligacy to stall when reporters re-
with a bang trot a $1,202 defx~iL
The gab was supposed to pay
itself in ticket sales, but instead left
HEW with a number ofbifis, including
one for $365 payable to an exclusive
local department store after staff van-
dalized two mannsquins and stole a
third on loan from the shop, according
to an HEW spokesman.
The dossier also discloses that Cali-
fano's bureancrat~ mnde special trips
to such locations, as Newark, New
Jersey, and New York and New Hamp-
shire to ex~'nine "the logistics" of
transporting to Washington various
displays and exhibits for the cele-
quested details of-their spendingmn~ration._
the May ! 978 fete. One official, Nancy Low, spent $450--
It took almost a year, and press alle-
gations that they were withholding
documents, for the red-faced officials
to releas~ cost figures, although the
Freedom of Information Act requires
government response in 10 days.
An examination of the inch-thick
dossier on the HEW birthday affair re-
veals expenditures including:
• $7,129 in what is listed on one
voucher as a glassblowing exhibit, and
a rodent display, featuring live rats.
• $9,995 to construct, install, and
decorate exhibition stands.
• $6,851 on food and liquor for a
staff hoedown attended by only 7130-
800 people.
• $881 on a custom-enlarged banner
for Califano to unveil.
• $750 on an unspecified number of
Porta-Johns for the reliefofail.
The documents also show that the
hoedown, staged by officials for HEW
employees in a staff canteen, ended not
alone traveling to see demonstrations
of program demonstrations and other
displays. She was accompanied on the
trips by yet another official, Betty
Fngg, who watched the same demon-
strations and submitted expense vouch-
ers for $252.
While Fogg and Low were flying out
of Washington, other officials from lo-
cations such as Great Falls, Montana,
were flying in in pairs to attend Cali-
fano's party, at HEW expense.
Other costs detailed include the pur-
chase of a pair of "ceremonial shears,"
($22) with which Califano cut a core-
monial ribbon ($8), a tank of helium to
inflate weather balloons ($100), and
the development of a computer pro-
gram for the Office of Information and
Health Promotion ($2,500).
Questioned why live rats attended
Califano's party, an aide said, "With-
out rats, research would be at a stand-
still. These were not your ordinary rats,
but specially-bred for laboratory
experiments."
No Extension For
Flue-Cured Sales
WASHINGTON, D.C.-The U.S. Farmers also opposed the extension,
Department of Agriculture has re- saying it would require them to go to
jeered a proposal to extend flue-cured the market more often to sell the same
tobacco sales from four to five days a amountofleaf.
week.
Congressmen representing tobacco-
producing areas are crediting Rep.
Walter B. Jones (D-N.C.) with leading
the effort ag~nst a controversial pro-
posal to extend sales frera the current
four days to five. Jones had held a
hearing to gather evidence against the
proposal.
Warehousemen opposed the propos-
al, since under the four-day system Fri-
days are used for cleaning the sel~g
floor and prelnwing for the next week's
auction. If the setliag week had been
had to open Satardays to c~mplete
thek vawk. R e~. Jones
"Big Bird" from Sesame Street with Secreta~ Callfano (right). It cost taxpayers
$2,510 to transport the Sesame Street cnst from New York to Washington and
back.
Taxpayers Condemn
HEW "Quit" Plans
WASHINGTON, D. C.-A plan by
Department of Health. Education, and
Welfare officials to spend federal tax
dollam on stop-smoking courses for its
employees has brought angry protests
from lawmakers and l~xpayers' groups.
But despite allegations from Con-
gressmen of "inappropriate" use of
federal funds, HEW Secretary Joseph
A. Califano Jr. says he has no plans to
abandon a $6,500 contract signed with
SmokEnders, a private, profit-making
company he hopes will persuade his
workers to quit smoking.
The new contract with SmokEnders
is the second for HEW; in fiscal year
1978, health officials spent $16,250 in
public funds for 270 employees who at-
tended atop-smoking courses, officials
say.
The latest batch of bureaucrats to be
offered the federally-funded program
include 8,000-plus civil servants at
HEW's Southwest Washington
complex.
They arrived at their desks one moro-
ing to find them littered with leaflets,
printed at HEW expense, advertising
the SmokEnder courses.
The 93 employees who signed up for
the course will receive not only paid
"administrative leave" to attend the 16-
hour program but will also pay only $60
toward the costs, with HEW picking
up the remaining $70 of the tab, say
off-leials. The course would cost the
man on the street $250.
men. Califano estimate~ average time
costs of $148 for every employee at-
tending on HEW time.
"Hence, total salary costs for the 93
enrollees in the course will approxi-
mate $13,800," Caiifano told Senators
Walter D. Huddieston (D-Ky.) and
Robert B. Morgan (D-N.C.).
Califano said he ordered a review of
the program after the Senators' pro-
tests. Results led him "to believe this
prognnn should be continued."
Califano claimed the HEW action is
similar to those of private employers
trying to help workers overcome per-
sonal habits "or cope with influences
that are demonstrably adverse to
productivity."
"I believe the expected 75 percent
rate of success, and the $500 in pro-
jeeted average first-year savings for
each employee who stops smoking, are
clear indications of the benefit to our
Government derived from this pro-
gram," Califano told Huddleston.
'Wast~ Of Taxpayers' Money"
News of the program has angered
national taxpayers' groups, who are
accusing Califano of squandering pub-
lic f~nds purely to promote his own
anti-smoking philosophy.
"Califano is a serf-proclaimed Mes-
siah when it comes to smoking," said
Len Riptm, administrator for the
30,000-plus member Citizen's Choice
group.
~We strongly object to him using fed-
TI5318076,4

Diane Jamerson of Asheville, North
Carolina, recently finlshed in the top 12
in the Miss U~.A. beauty contest.
Diane was dressed, in the state cos-
tume portion of the pageant, as a ciga-
rette. "My grandfather raised leaf, and
1 can tie it with the best of them," she
says, "I'm awfully proud of tobacco."
Diane works with an advertising
agency in her hometown.
HEW Plans
Cont. from pg. 8
other citizens have to pay for out of
their own pockets," Rippa said.
"Excess spending by the federal gov-
ernment is the primary cause of infla-
tion,and spending to subsidize personal
choice programs like SmokEnders
should not be tolerated-Califano can
say what he likes, but he shouldn't be
spending our money to fiuanee his per-
sanal views," Rippa added.
The ! 20,000 member National Union
of Taxpayers has already protested
Califano's actions, but the group's
treasurer says their complalats to HEW
have gone unanswered.
"This program is a waste of tax-
payers" money. If employees don't
want to smoke, 1 don't see why smok-
ing and nonsmoking taxpayers coast-to-
coast should be forced to pay for some-
thing Califano sees as an extra benefit,"
said treasurer William Bonnet.
"'This program should be stopped
immediately. Taxpayers are being
penalized for Callfano's own beliefs-
we're getting less w~rk out ot' our
eml employees for more money,"
"Totally Inappropriate"
IgBlrlg)R'S NOTI~ H ~ Imve a qms-
~: The Tobacco Institute
often points out that it does not pro-
mote smoking. If that is the case, what
is its purpose?
Answer: The Tobacco Institute is a
nonprofit, nnncommernial organiza-
tion founded in 1958. Its members ar~
companies which manufacture ciga-
rettes and other tobacco products in
the United States.
The aim of The Institute is to foster
pfeing, p~ or ~efing m-
~ or ~ p~uc~
~ T~ Ins~mte ~ four
s~k~men w~ ~ av~le ~r s~-
i~ e~en~. It publish~ b~
chu~s, ~phte~, ~ ~n~
a~ut s~ng ~ ~ ~d ot~r
ph~cs uf ~ s~ki~ contmve~y. It
~so h~ fil~ on thee top~ ~d on
tob~'s histow. ~ey ~ av~le
on a f~c I~ b~is f~m the M~
T~king Pictu~ ~wi~, 23~ New
Hyde P~k Ro~, New Hyde P~,
N.Y. 11~0.
~ lnstim~'s p~f~sio~ s~ in-
eludes p~ple with back~unds in ~v-
puhlimamderstanding_oLth~_˘m_o_king__ernmont, journalism, medicine, law,
and health controversy and public education, st~istic~,, ~eul~, ~
knowledge of the historic role of to- business.
bacco and its place in the national
Industry
To 161,3
The U.S. tobacco industry can be
traced to Jamestown, Va.. where John
Relic planted seeds imported from
Trinidad and ~ to test the Vir-
ginia soil. RolI~'s first shipment of leaf
to England in 1613 and im subsequent
acccplanc˘ by the British laid the foun-
dation for an industry that helped to
give America its rich ~rieultural herit-
age. Virginia, Maryland, and the Corm
linas combined to export annually an
average of I00 million pounds of leaf
by the end of the colonial period.
In Virginia's colonial days, tobacco
oecupiad such a centzal position in the
economy that it was used to pay taxes,
tithes, and even the salaries of the
Church of England clergy. Warehouse
~rtifi~tes~ecarne a-medlum-of ex-
change among the colonists, nearly all
of whom grew a crop of tobacco.
acre site in downtowa Nashville, Motst smokeless tobacco, the company's pnn'ciPol prodact, will be
produced at the planl.
The project is part of the physical rebirth of downtown Nashville.
ture has also angered other Congress- lion worth of waste at HEW, every taeted SmokEnders' New
Jersey head-
men, among them Rap. Walter B.Jones
(D-N.C.), who, through an aide, criti-
cizad the Secretary's actions.
"Although the effective cost to the
Government is only a few thousand
dollars, 1 feel that HEW has many
more pressing respons~ilities to which
it could devote more energy and
money," Jones said. HEW should not
be "subsidizing private courses to
change the personal habits of its adult
employees.'"
Huddleston, a member of the Senate
Appropriations Committee, sent Cali-
fano a copy of a protest letter he wrote
to the chairman of the Labor-HEW sub-
committee, attacking "'this totally in-
appropriate expenditure of federal
funds.'"
"'Why should the government in ef-
fect subsidize its own employees to
participate in what is a private under-
taking?" Huddleston nskad. "1 n its zeal.
to eliminate smoking, HEW has
cceded its authority, to the detriment
of the taxpayers of this country."
Through an aide, Sen. Jesse Helms
(R-N.C,) hit out at tba new plan as just
"another example of Califano's coer-
cive mentality."
"Once again, the taxpayers are ex-
own ~ ccmade and extrava-
dime that is used in an inappropriate
way such as this is just an affront to
American taxpayers who have to bear
the burden,"
SmokEnders
SmokEnders was the private com-
pany used by both Califano and John
M. Pinney, director of HEW's Office on
Smoking and Health, when they de-
cided to stop smoking.
It was founded in 1968 by Mrs.
Jacquelyn Rogers, whose avowed in-
tent is to turn the organization into a
multi-million dollar business, according
to one newspaper interview.
When The Tobacco Observer con-
quarters to ask if Mrs. Rogers had yet
achieved her goal, a secretary sa~d she
was "not allowed to give out that kind
of information."
Neither was the secretary allowed to
"give out" what the company's annual
profits are or what profit it hopes to
make on the HEW contracts,
The newspaper article about HEW's
SmokEnder program resulted in a
number of letters from smokers and
nonsmokers protesting Califano's use
of federal money for the courses, "Ri-
diculous," wrote one person. "It is
time for the American public to call out
in anger," said another.
lqo / mdlable
1776 K Strut. ~W.
TI53180765

Reader s
.The
From its birth in 1922, when it ~ its
first m~ti-smc4O~ piece~ the Digest's
purple pro~e on the issue has ˘mrried
such semationalh't headlines as
tine: Profile of Peril," and even, "Is
Your Sex Life Going Up in Smoke?" One
artlde about a man who quit sr~king
screamed out, "I'he story of my long
starts three years ngo ..."
But there are these who believe the
As New York physician and author
However, criticism by Coleman and
others did nothing to deter DeWiR
W~llace, owner of Rt~der's Dig˘~ A
heavy a~oker until 1961, Wallace turned
loose British writers James Monahan
and his wife, Lois Mattax-Miller, to
churn out stories which, through the
influence of the magazine, even while
Wallace chain-eraoked, influenced the
course of history for the cigarette
industry.
And, ~ the c~py flowed copiously
authored by Manahan and lVh'Ber,
helped popularize Keats, a cigarette
whine falter at that tgme gave it the low.
for and publicized by Reader's Digest.
passed to Walter Ro~s, who, whm not
writing for the Digest, is editor of an
smoking. His dual r~le, and obvious
conltkt, h~ never been pointed ~mt to
readers of tbe Digest-- or reacts of the
Cancer Society organ. Tad~,'s "push"
by the Digest is articles alxmt gases
A Dig~e~t managing editor once
daknod tl~t h~ ~ wii abray~
print beth ~des ef rely stovy, e~aecialb-
a contreve~ialissue.
But when The TOb~ Institute tried
to take him up on his offa', the ume
gest bec~me what it is today, it is nec~-
sary to have some Insight into the char-
acter of DeWitt Wallace, whoee per-
NEW YORK-High above Lake
Byram's waters stands a Norman-style
castle, built to the specifications of its
owners, DeWitt Wallace and his wife,
LilaBell.
From the ramparts of"High Winds,"
the Wallaces command an impressive
panorama of Westehester County's
most fashionable acreage.
But farther than the eye can see ex-
tends Wallace's other empire: the 30
million-plus homes around the world
which monthly receive the word ac-
cording to Wallace-Reader's Digest.
The Creator
Wallace is the publisher, former edi-
tor, chief stockholder, chairman emeri-
tus, and body and soul creator of Read-
er's Digest.
Through the condensed world of the
pocket-sized magazine, WallacCs voice
is heard in 15 languages by an esti-
mated 100 million people in 180
nations.
In the U.S. alone, the number of
people who buy the publication ex-
ceeds the combined total population of
New York, Philadelphia, Los Angeles,
Chicago, and San Antonio.
From its unpretentious beginnings
below a Greenwich Village speakeasy
in 1922, Reader's Digest now claims a
worldwide readership second only to
the Bible; and even that may change if
Digest editors complete plans to con-
dense the world's best-seller to a mere
720 pages.
The story of Wallace's rise from gen-
teel poverty to multi-millionalre pub-
lisher, from college dropout to one of
the world's foremost molders of public
opinion, is the all-American success
story.
The son of a Presbyterian minister,
Wallace was no scholar. He attended
Macalester Academy in St. Paul. Min-
nesota, where he took to sports instead
of books and was soon packed off to
evangelist Dwight L. Mcody's Mt.
Hexmon School for boys in Northfiekl,
Massachusetts.
Even in ~ early days signs were
evident of ~'s Ch4ali~m fervor,
which today dtk~s ~m~da t~ pa~s
of Read~'s Di~a.
It was ff'nfiag a ~ ~d~ at aa
lO The Toh~g~:o C~aserver
Home to DeWitt Wallace and his wife, Lila--their Norman-style castle, "High
Winds."
uncle's bank in Colorado that Wallace
got the idea of condensing articles from
magazines into one digest.
He noted some articles he read were
better than others and began keeping a
file of the salient points of the good
ones. But it was not until he was re-
covering from wounds sustained in
World War I trenches that Wallace be-
gan to try out his theory that many of
the better articles in American tonga-
culars soliciting help for the new ven-
ture and leR on their honeymoon.
On thsirreturn the newlyweds found
a surprising response: enough provi-
sional subscriptions to bring in nearly
$5,000.
Digest Ad Policy
To help get the first issue out, Wal-
lace hired customers from the speak-
easy upstairs and girls from a nearby
community club to wrap and address
the magazines, which were then taken
by taxi to the local post office.
The magazine that started on $1,300
borrowed capital now earns Wallace
millions. The profits of the Reader's
Digest Association, Inc., are a closely
guarded secret, but in 1978 it was esti-
mated in The Washington Star that
gross income was more than $780
million.
DeWitt and Lila Wallace, now both
89 years old, have no great use for the
millions they have accumulated. In-
stead, they give them away. There are
no heirs to the Wallace fortune; the
couple's only child is the Reader's
Digest magazine.
The Wallace's gifts are not bestowed
lightly, however. Most of the recipients
hold closely to the Digest ideological
line.
According to former senior Digest
editor Samuel A. Schreiner Jr., DeWitt
Wallace shows a marked preference for
the Protestant form of "'muscular
Christianity," dispensing his largesse to
"Alcohol in moderation is part of the
zincs could be condensed without los-
ing their point or flavor.
By the time he was discharged in
1919, Wallace had perfected the tech-
nique, and, instead of looking for work,
he spent six months in the Minneapolis
Public Library compiling a sample
copy of what he already called Read-
er's Digest.
He had several hundred copies
printed, but when he circulated them to
publishers in the hope of being hired to
edit the new magazine, he mot with al-
most universal re~eetion.
Wallace tempoearily shelved his iden
until he met and married Lib I~II
Acheson. Then. afler losing a promo-
tion-writing job I:~ause ~f reorganiza-
tion. in dest~ration he decided to
Berra~4ng f~em hi~ family. WaPaea
For the first time in its 57-year his-
tory, the Reader's Digest is accepting
advertisements for hard liquor.
The decision to accept the advertis-
ing was reported March 1979-only
months after a special Public Health
Service report to Congress warned that
3.3 million American youth between
14 and 17 years old had drinking
problems.
The new policy is a total departure
from the monthly magazine's previous
anli-liquor stance, as stated by Digest
founder DeWitt Wallace, who has said
that "seeing how ddicious a highball or
martini looks in an ad" could lead some
people who should not drink to do so.
But the Digest now believes the
drinking of hard liquor is socially ac-
tislng director .~arnes T. Sheridan.
American way of life and is even useful
as a relaxant. We'll be just delighted
with five pages [of liquor ads] an issue
this year," Sheridan declared in a re-
cent interview with Advertising Age.
The Digest started to accept wine
and beer ads last year, when liquor
companies spent $173 million on maga-
zine ads.
A spokesman for Doyle. Dane, Bern-
bach. which handles several liquor
company advertising accounts, told Ad
Age. "'This is a mass audience publica-
tion with tonnage." He welcomed "an
opportunity to get a lot of people
quickly, it [the Digest] has a loyal fol-
lowing and high credibility.'"
The Digest's de~siun to nccept ~
liquor ads was reported as the govern-
meat was launching a multi-million
T153180766
