Tobacco Documents Online

0 THE TOBACCO INSTITUTE, INC. MINUTES OF THE EIGHTEENTH MEETING OF THE EXECUTIVE COMMITTEE ~r * * * * * * The eighteenth meeting of the Executive Committee of The Tobacco Institute, Inc., was held at 10:30 A.M. on June 18, 1963, at the Institute's offices, 808 Seventeenth Street, N.[a., Washington, D. C. The following members of the Executive Committee were present: Messrs. Morgan J. Cramer William T. Reed, Jr. Zach Toms Robert B. Walker - There were also present Messrs. William S. Smith, Jr., and Charles B. Wade, Jr., of R. J. Reynolds Tobacco Company; Mr. Robert K. Heimann of The American Tobacco Company; Mr. Cyril F. Hetsko, of counsel fo The American Tobacco Com- pany; Mr..Edwin P. Finch of Brown & Williamson Tobacco Corporation; Messrs. Paul D. Smith and James C. Bowling of Philip Morris Incorporated; Mr. Dan E. Provost, III, of Liggett & Myers Tobacco Company; Mr. George V. Allen, President and Executive Director.of the Institute; Dr. Frank J. Welch, Executive Vice President of the Institute; Mr. Edward F. Ragland, Vice President and Secretary of the Institute; Messrs. Richard W. Darrow and Edward H. DeHart of Hill and Knowlton, Inc.; and Mr. Stanley L. Temko of counsel to the Institute. In the absence of Mr. Bowman Gray, Mr. Allen presided at the meeting. Mr. Temko acted as Secretary and recorded the minutes. Mr. Allen stated that the meeting had been called principally to consider two matters, the possible develop- ment of an Institute code of advertising ethics and prac- tices, and a report on the meeting of representatives of the Institute with officials of the National Association of Tobacco Distributors.

2 • _ Mr. Walker announced that The American Tobacco Company had already decided to terminate its entire college promo- tional program and that this decision was effective and being implemented. Mr. Smith stated that R. J. Reynolds had al- ready cancelled its advertising in college publications for the coming fall and that the Reynolds Company had also de- cided to terminate its coll.ege promotional program. Mr. Cramer stated that the Lorillard Company had also already decided to terminate its college advertising and promotion. Mr. Finch indicated that Brown & Williamson Corporation had been considering the matter, and that it had decidedto terminate its program. Mr. Toms said that the Liggett & Myers Tobacco-Company's current view was that it was going to terminate its college promotion, with the pos- sible exception of college publication advertising using the same copy as they used in'national magazines and newspapers. Mr. Paul Smith said that Philip Morris had been considering the question of college advertising and promotion, but that Mr. Cullman was out of the country and that Philip Morris had not reached any decisions on its policy. It was the consensus of the group that the Institute should not affirmatively seek to publicize the individual decisions of the various companies to give up college adver- tising and promotional activities. On the other hand, it was felt that, if Mr. Allen should receive inquiries from the trade press or other areas, it would be proper for him to reemphasize the industry's position that smoking is an adult custom and report the fact that, to avoid any con- fusion and misunderstanding in the public mind as to this position, a number of the member companies of the Institute had each decided to discontinue college advertising and pro- motional activities. Mr. Allen then called upon Mr. Bowling, as Chairman of the Public Relations Committee, to report on the meeting that he and the members of the Committee composed of the chairmen of the Public Relations Committee Subcommittees had recently had with Mr. Joseph Kolodny, Director of the National Association of Tobacco-Distributors, and certain of his associates. The meeting followed the invitation ex- tended in the address to the Board of Directors of the In- stitute by Mr. Harden E. Goldstein, the Associate Director of the NATD, for the Institute to cooperate with the NATD in defending the tobacco industry against discriminatory measures against tobacco.

n - 3 - • Mr. Bowling reported that at the meeting Mr. Kolodny had suggested that it would be desirable to call a meeting of the representatives of 1JATD membership from all the states at which the importance of industry cooperation in defending the industry against discriminatory legislative or other proposals would be emphasized. Mr. Kolodny had suggested that at such a meeting there should be explained to the representatives the plan of NATD to use as the theme for its April 1964 convention a well-coordinated explanation to its members of their basic dependence upon cigarette distri- bution for their livelihood and the reasons why it is in the self-interest of the members of the NATD to make every effort to defend the industry against discriminatory state taxes, labeling proposals, or other legislative proposals advocated by anti-cigarette groups. Mr. Bowling stated that his com- mittee recommended that the program of'cooperation be accepted and that the Institute authorize the expenditure of a budget of approximately $100,000 to implement the pro- gram. Based on preliminary estimates, $25,000 would be required as an Institute contribution to help defray the cost of the meeting of'the NATD representatives, and the remaining $75,000 was the tentative estimate a.s'to the pos- sible cost to be incurred by the Institute in assisting the NATD in developing its opening day program for the April 1964 convention. Thereupon, upon motion duly made and seconded, it was unanimously RESOLVED, That the report of Mr. Bowling's Committee be accepted and that the expenditure of approximately $100,000 be approved. FURTHER RESOLVED, That $25,000 of the sum of $250,000 additional authorized by the Board of Directors on May 24, 1963, for the "Administra- tive and General" budget be approved for expendi- ture in connection with the meeting of NATD repre- sentatives to consider the program of cooperation between the NATD and the Institute. _ FURTHER RESOLVED, That Mr. Bowling's Com- c mittee be directed, in consultation with the Institute, to maintain-liaison with the NATD and to serve as the Institute contact with the NATD for development of the cooperative program. N O N N Ca ~ ~. ~ ~ ~

0 4 to u,Tith respect to the remaining $75,000 approved as a tentative budget, it was the consensus of the meeting that no further action was required at this time and that further approvals of expenditures out of the present 1963 Institute budget or recommendation to the Board of Directors to adopt any neces- sary increases of budget could be considered when budgetary plans were developed in a moxe definite form. Mr. Allen then briefly reported on Institute activ- ities and on recent developments in the tobacco and health field, including reported action by parent-teachers groups and various state medical societies. It was also mentioned that the American Medical Association was currently meeting in Atlantic City and was considering various resolutions re- lating to smoking and health. Mr. Allen also reported that he had recently re- ceived a letter from President Collins of the National Association of Broadcasters evidencing Collins' continued interest in the content of cigarette advertising. There was discussion of the status of the report of the Surgeon General's Advisory Committee on smoking and health. Following this there was consideration of the pos= sible development by the Institute of advertising guides relating to cigarette advertising. Among the matters dis- -cussed were possible guidelines to emphasize that smoking is an adult custom, such as avoidance of use of youthful models and advertisements employing popular sports heroes. Other areas brought forward for possible consideration were guides designed to insure that cigarette smoking was not associated with unduly romantic situations or exaggerated sensual pleasures. It was suggested that a draft outline of possible advertising guides should be prepared by the Institute staff and Institute legal counsel and considered by the Executive Committee at its next meeting which was set for Tuesday, July 9, 1963, at 9:30 A.M. at the Insti- tute offices in bVashington. There being no further business, the meeting was thereupon adjourned. /s/ Stanley L. Temko Acting Secretary N O N N t0 ~ ~ O