Tobacco Documents Online

® t < .FOR ~ , THE TOBACCO Il'1STITUT F FOR RELEASE DE' . -.,. MIDER 27, i9o'o : •. THE TOBACCO ECONOMY s i RESEARCH CENTER L 6R ~..n PHILtP mORR r<,:.4¢S 1960 REVIEW AND OUTLOCXC t,. ' . .. -. . . .x.., . .. . . ,., _ .~>2~.. : . ~ By GEORGE V. ALLEN i President, The Tobacco Institute,'Inc. Upon taking office as president of The Tobacco Institute, Inc., •;;5~ 1r ~{^4a "!rN'.~Yw~~, ' ~ . h 1 S , :,~ ~ ,: . -- . , . ~.'... ~ -. .. ~:: . -..^~~., ... ...,.~ ....... . . .. ~. . . ~ .. ~. -.. ... .,:. .,,... ,.!'.~ ~ ~ •'r` .~°5 k late in 1960; I was impressed with the record achievements•of the tobacco•.Y't,, ... , . . ~ : .. ... ,.. . .. . ~ . ~.,-; industry during the past year and also with the promise of continued ~ •. - . . _. .. .... . ~~~ .~:.. .: . . ..~• : . .... ~~' . ...- . ~j.. ~ . ~ . . ,. . . . . ~{•_ ~ progress in 1961 and future years. The tobacco economy in 1960 continued to set new records t . ,._:.,. particularly in output, acceptance and use by a growing consumer population; . . . . . . :4.. - 3: . . . " - , :. . iy and greater contributionito the social and~economic well-being of the ~ nation's agriculture, business and'governments. There is every indication that comparable progress will continue Y f in the next and'succeeding years. The accomplishments of the industry stand out in any 1960 review, ~ C despite the fact that tobacco this year, as in other recent years,1has uC,'' continued to be subjected to attacks ranging from health scaresto unfair' G taxation and labeling proposals. To lendunderstandin, to this seemingly paradoxical situation one of the aims of the Tobacco Institute to which I hope to give impetus. In its first three years, under excellent leadership and planning, the Institute has laid the foundation and built up a broad progr=to inform the American public of the real and'broad significance of the r ~~iT!!1 tobacco industry in the nation, and indeed, the world. Along with the . , . . • . . .: _ : '. . . - . . ~ - _ . . . _ - . . •r'r 4'4 9' `^"Yr1~ lk:- Tobacco Industry Research Committee, which has been sponsoring independent e (more) :~...::..~:~ ... .-.. N~Q_ G Y ?. yH rr~7, .~h 44 iq 4

a. . ... S• % .t. NY' 'FF { z {}~t {14 qFJ,.+. ! ~Y. .: ~t^S4 '.t { of cancer health research since 1954, the Institute has been helping to give the publ.ic an intelligent understanding of how science actually views the 1..; M..~' .~ - . l1...`( .~t.t.. L ~..._... ...~. . r. < f{t.r..± relationship between tobacco and health. r Facts are finally replacing opinions~ and the general public t•r1 ~' ~ 1 ~Y becoming aware of this IMedical and research scientists are seeking more or .., .. ... . . "r..t~ ~,iS` 9".. 3 ~t.:.L._ ..:....a'. ..!r•- .,'•~:' . ._..'A ...... .. ... .. t . . < .~s... intensively than ever to fit together all the many pieces`that may some ,a FL~j 5!~ ~4~y t f., ~k~~~•~~}~ t' day yield the answer to the puzzle rheart disease. Because of the , ': - ` t ~ r : ~ - ~;'~ + J ~ r.fer•,~1 "~~w+ '4 ~ --i J }`q t r ,r~ ~'~ ~• ~ fd'~. ! a i 145 especially lung cancer,.and steadily increasing long lives of our ' : , n• ':. 1iw !` 1 1 ,( 4 tt;'.;, ~+ C, ' x 1 y;_ r11 ^ population, these ailments have become the number one'subjects for medical research. rr~ Ce--•tainly,'a growing bodY'of scientific research findings has . , . , :. : .. .,, ': ,.. . , <.. . - . . , . . .. . .. . .a ,,.. i failed to support the many charges thrown at tobacco use during the past - ` ~ • ' t ~ Y ~"t 7. . :. t. ~C.. , : ~ 1 ''' ..'. .(~.. '.'\ ~~ t} ~ } •~~~si t':'~ " ~': ~ ~ " 'y i .. , . t , . : ~5k~s~ } i, ~T; l ~ ' few years. These charges come largely from statistical compilations attempting to establish a relationship between tobacco use and longevity - this in a period when Americans are living, on the average, nearly 75 : . . , . :,-. percent longer than they were 60 years ago. Statistics can be used to ' .. . . ~. , . . , , , . " prove avariiety of conclusions on this subject. ?, pt , .. . . .: . .. _, '. -, .;, : ,. ~ ,.. .. ., . ,,, ,;, , ... ~. ;.•, .~,:„ `~ tt4.1 During the past year,the Tobacco lndustry Research Committee ~~,..~..tn~ •..j;,r 'rri.f,-: .• _r .. .~'t, ...: . .,C~ ..'.:t ' .':- " .. . ..,.. .....,~ .,.. .r~~~'l.~f ncreased to $4 million the funds for its grants to researchers studying all aspects of tobacco use and hum.an health. There could be no better , indication of the determination of the tobacco industry to help solve -~; ~r ~A ~:<~•,•;;;~ ;' ;; these vexing,questions. I have found that tobacco men are more interested "•. in finding out the true facts about tobacco and health than anyone else. We are determined to search out every avenue of approach in this matter, as objectively as is humanly possible. more .~ .......~i.,~~:r.~,~~. rm/ ~

half . a half-billion more than in 1959. A substantial part of this rise reflects increases in state cigarette taxes during the past year and a Users of cigarettes in 1960 spent about Per capita smoking of cigarettes inthe U.S. amounted to 3,940 1960 (197 packs of 20), according to Department of Agriculture estimates which are based on the population of the age groups concerned. "This 321 Percent totaled 352 million pounds -- up a million and a quarter pounds. tobacco dropped slightly to~a total of about 652 million pounds; snuff more than in 1959 and 16 percent more tharn five years ago. Use of cigars and cigarillos was up about 22 percent; smoking tobacco totaled 73 million pounds, about the'same as last year; chewing Taxes Total tax collections on cigarettes alone in 1960 are estimated at $2.87 billiony compared to $2'.5 billion in 1959. (more) Tobacco users continued to carry a disproportionate load of taxation. `"y:,=-T 1 M°~;

© f~ # k : 4 rra~s ~ ~.~`f,'3~t~y}',t'Y L tlt .. .• . , . The federal government collected $i,8~+6 million in cigarette taxes during ~~ the ~ y~ ear..: State governments collected 6 million and municipal $9 5 " 1 ... .., .. . ~ ,~. , ...a~ , }i ~ . r. ~ ., a overnments $1+1 million. All three showed sh arp rises over the previous S ., ~ ~ ~t'f Y~ 1~~ Y` ° ` r r Yf a t ~ ~. , ' r .,•F J ... C. 1..11 -. f ~ .. l4 .t 1 I Kf` 5.~ 71 SF S ear . t , ,< CA' r.~if :a.k9 > r y rt•tuT ~~~, L There were numerous increases . in state tax rates during the past lt~'t~ T~F~! `.}~i3 fk7 ~. year and a half Forty-seven out of the 50 states now have special , cigarette levies. k r , ..;r st f Cigarette Exports i ; ` ` From years of personal experience'abroad, I know that Amerzcan .~ ~.} iNl~1 ~'~U~ T~ "}4 r. a F F =.P v ~, r ranks'.. i Exports of the popular"American cigarettes have risen steadily , '`,since the early 19301"s. For the 1960 fiscal year ending June 30, they totaled 20 billion b 5 million, up 8.8 percent fromithe P .+ revious year. ~ : ;Although cigarette expolts to both Cuba and Venezuela have been virtualSy ' j ; cut of' since June, making a significant reduction, I am hopeful that < ill these wbe temporary set-backs E Records For Growers For tobacco growers there were also records in 1960. Flue-cured . . : .. .. - tobacco in the -Sot.i:_ern states brought an average of 60.5 cents per pound. This was the highest average on record and compared with a net of 58.3 cents per pound in 1959. Department„of Agriculture officials said that flue-cured leaf this year averaged 1,768 pounds per acre, compared with last year's previous recordof 1,691 pounds. `'In 1950 the average was f ..-• only 958.4 per acre. y'" ;'. .._.., . . ,.. _ i +f : - • .. a 1 - . .,... .._ . .,..+ p lE(s5;?i .,C ~ ~ tbdtre o oacco proucs a amongur good will ambassadors of longest standing.' p g o e ,acco n o us ry is in t e front .Thi.s is especially significant now, in view of the continued outflow of ,~ . . . .. ... . , , ... .. , . +,n, . . gold and the import-export imbalance. In the campaign to p ` ~ s American - ; ..'i; } ~:r .: .~. .,, .. . .. , . . _ . .. • roducts instead of old abr ad th t b i d t h a r ,,. "k, f (more

/ r Ct s > ~ }_. ingredients of cigarettes. compared elect John F. Keri.nedy crop control program. nothing. This < Tobacco Farm Program Endorsed spot" in the agricultural situation. grower, the consumer, the government Notable during the year were endorsements written by President- , . Burley . Burley tobacco also,got off to a record start when~ the auction - . .-.. , ,.: ;..._.. . _. . , . . market opened'at the end of November.` (Burley and'flue-cured are the chief . V Burley was_`averaging'67 cents per pound,. } i r S 4 On the manufacturing side, expansion of company research facilities and programs continued during the year. New and improved products were introduced. Many plants were expandedfor greater production. I have been particularly impressed with the architecture and landscaping of the i new plants and research facilities I have seen~. They are ornaments t the communities in which they are located. The industry continued to _. . ,::.~... grow with the cot:ntry, as it has done since John Rolfe grew the first commercial toba.cco crop in the Jamestown Colony in 1612. With the construction of handsome and efficient new factories, the expansion of research laboratories, and the straightforward investigations of the health question, the industry is entering today into a new and adult age. 12/9/60 and Vice President Richard Nixon approving the tobacco , President-elect Kennedy called it "the one bright . . .. .. . . - ~ ' , . , .;. .... , . _: .. . .., , ._,: .. ;.. .,,:,, r . ~ , - Both agreed that it was fair to the .. . _, .., and cost the taxpayer practically is unique among,agricultural support programs. i