Philip Morris
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DATE March 9, 1994
TIM 11:30-12':00 PM(ET)
STATION ABCLTV
PROGRAM Nightline
A Affil'iote
TRANSCRIPT
Ted Koppel, host:
Unidentified Protester: Bingling out one industry in
order to try to'try to finance this health-care bill is
just totally unfair.
Koppel: A spontaneous demonstration fr=the tobacco
industry (footage of a pro-tobacco rally).
Unidentified Protesterr We're being asked to pay for
the entire Clinton health-care package and that's just
totally unfair.
Koppel: Well, not entirely spontaneous. Actually, the
tobacco i'ndlustry gave its workers the day off andd
chartered busses so they could come to Wa'shingtonito
protest.
Unidentified Protester: I think it's unfair to single
out one.
Unidentified Protester: Take one industry.
William Campbell (President and CEO, Philip Morris USA)':
To pay for the increased health-care costs.
Unidentified Protester: By putting us out of'business..
It's just unfair.
Koppel: Tonight, the tobacco industry gasping for air..
(Unrelated material omitted)
* * * * * * *
N
Koppel: The battle has been going on for so many years O'
that it is a surprise sometimes to realize that it's AM
still in progress. The tobacco industries starchly
~
insisting that the evidence on smoking andilung disease Q'
or heart disease is suggestive, but not conclusive. WI
More and more, however, the industry's apologists are 4~6
coming to resemble those Japanese soldiers, discovered N'
on remote islands twenty and' thirty years after the end GJ
of World War II. They had never realized the war was Cll'
ov'er.
.
Material supplied by Video Monitoring Services of Americo, Inc. may be used for internal review,
onnlysis or research only Any edjrihg, reprodwction, publication re-
broodcosting,, public showing or public,display is torbidden and may violdte copyright low
A!videotape ot this Nanscript is available in anylormatJora, period or3T days lrom oir date, audio
cassettes for 14 day.s. Coll'any 1YMS office.

-2-
The war ajainst smoking, of course, if far from
over. Fifty million Americans still smoke, four hundred
thousand a year tobacco-related deaths. But a
significant corner has been turned. Almost forty years
of'medical warnings and anti-smokingicampaigns, decades
of lawsuits and public-service announcements, and
endless nagging from concerned family members and~
friends have indeed convinced~millions of us to quit.
The tobacco industry has lost significant ground. They
and their workers are worried about losing evenn
more--speci,f'ically, the imposition of a new
seventy-five-cents-a-pack tax~on cigarettes to help,
finance the Clinton health plan. Andi s+o today they came
tolWashington. My colleague Chris Bury and I have
spent a goodipart of the day talking to people on both
sides of the issue--Chris in the field and I here in
the studio (Rore footage of rally).
Chis Bury reporting:
On a chilly, damp, uncomfortable day, they came:
from the Carolinas, Virginia, Kentucky, and other
tobacco strongholds--sixteen thousand who work in the
factories and'farms. They marched from the White House
to the Capitol, the latest soldiers or perhaps pawns in
the public-relations war the tobacco inrlustry has beenn
losing for years.
Campbell: This is'n't a rally about tobacco companies,
it's a rally about real people, real people that work in
our industry. It's about workers and their families and
how they have to raise and support those families.
Protesters: No more taxes! No more taxes!'
Koppel: The angry voices were bussed in from the
factories of Philip Morris and RJ!Reynolds--bussed in
and paid a day's wages'.to appear as victims of President
Clinton's proposed seventy-five-cents-a-pack tax
increase on cigarettes:.
Unidentif'ied'Protester: Our message to the President is
think about working people a little bit more. We're
losing a lot of jobs overseas and global economy.
We've got to take care of'our own a little bit.
Unidentified Protester: I feel like they're just
cracking down onithe tobaccolindustry too hard. You
know, I mean, that's our freedom to smoke or whatever,
and I feel like they're:taking our freedom from us.

-3-
Bury: Not only do the tobacco workers marching today
fear the law is closing in on them, there's a great
sense of outrage that they are being unfairly
singled-out to bear the burdens of a health-reform plan
that is supposed to benefit everyone.
Unidentified Protester: I'm in favor of national
health-care. But we're not going to singae us out and
tax one industry to try to pay for the whole program for
everybody else. It's not fair.
Bury: The fears for their livelihood are genuine..
Those jobs have been disappearing for a full decade and
the workers who rallied today were really beingiused.
Accordingito a critic~of the tobacco industry...
Cliff IDouglass (American Cancer Society): The tobacco
manufacturers are showing an act of desperation todlay.
While they've been laying-off tens of thousands of their
workers left and right over the past decade, they've
made billions more cigarettes in the process because
they've increased automation. Now, today, we've seen,
them bring the remaining workers out from tobacco
manufacturing plants to protest and put a human face on
this:effort on behalf of the big companies.
Steve Parrish (Philip Morris USA): In this country,,
there are 2.3 millionijobs generated by the tobacco
industry in this country. And that's not just tobacco
growers and tobacco workers. Those are the people inn
the retail business, inithe wholesale business, in:the
transportation business, truck drivers. So~, the effect
of this tax will not be,, contrary to what some people
would like you to believe, felt just in tobacco-land,
and felt just by tobacco growers and tobacco workers.
You're going to see lay-offs in the retail industry, in
the wholesale industry, the.transportation industry.
It's going to have an effect all across this.country.
Koppel: Why do the jobs have~to disappear? I'mean, I
can understand they're not going to be doingithe same
thing that they're going to be now that they are selling
or retailingior packaging or in any way involving
themselves in tobacco. A reasonable assumption would be
maybe they'll find another job.
Parrish: Well, we have a...the economy is growingi
somewhat right now, but we still have an unemployment
problemlin this country. I don't think our economy
right now is at the position where we are willing to
turn two hundred andiseventy-five thousand people out of
work. That's not the way the economy in this country

-4-
works, with the government telling people what businesss
they should work. Our economy is.based on choice:and
the free-market system ought to be allowed to work.
Bury: The industry's scariest number is that a
seventy-five cent tax increase will cost two hundred and
seventy-five thousand jobs in a ripple effect of losses.
But only four hundred twenty-six thousand people work in
all of the nation's tobacco factories and farms and
warehouses. Economists figure cigarette smoking would
go down, maybe by twelve percent. But demand for US'
tobacco:would drop by much less, as almost half of the
US'croplis now exported.
Lawrence Adelman (Dean Witter Reynolds Analyst): The
biggest markets outside the:US for the major tobacco
companies are Continental Europe and the United Kingdom.
They're growing rapidly in the Asian markets as well,
and those businesses are enjoyingivery good volume gains
and good earnings increases.
Bury: And a study in today's `Journal of the American
Medical Association,' asserts aldecline in smoking would
not cost jobs, so much as move them around, as people
spend the money on other things.
Professor Kenneth Warner (University of Michigan) On
balance, we would see relatively little change in
aggregate national employment. My suspicion, based on
our study, is that we would see a shift of'some jobs,
from the southeastern tobacco states to the rest of the
economy, to the rest of the country.
Bury: The tobacco workers who came to convince the
Capital today know they are in a last gasp fight.
Koppel: The tobacco industry was saying...the Parks
Department said sixteen thousand, the tobacco industry
says twenty thousand, but there are a lot of people out
there on Capitol Hill today protesting this tax.--tobaccoo
workers, people!in related indhstries. Does that ever
have an impact on you!and your colleagues?
Representative Henry Waxman (Democrat Health and
Environmental Subcommittee) I don't see how anybody's
going to be moved by that appeal wheniwefre talking
about raising that tax for two purposes: one, to help
fund health-care, and a leading cause of disease is
cigarette smoking; and, secondly, to try to discourage
.people from smoking because the price:is going to go
higher.

-5-
Bwry: Inithe halls of power those tobacco-workers
roamed today, smoke-filled rooms are a relic of a
cliche'. Smoking is;banned in two hundred ninety-eight
offices here and, iniall of Congress, only forty-three
members still admit to lightingrup.
Koppel: From McDonald's to the Fentagon to the state.of
Maryland, the drum-beat to rid the public of smokingg
intensifies. We'll be back with that story in a moment.
(Commercial Break)
Koppel: For the past thirty years, the actual physical
space:in which smoking,is permitted has shrunk. It is
gone fromibroadcast ad1vertising, from domestic flights,
and, increasing,l , from public places. Once again,,
here's my colleague Chris Bury.
Bury: The government's war on smoking is now thirty
years old
Dr. Luther Terry (Surgeon General) (Footage from ai1964
speech): There's a very strong relationship, and
probably a causal relationship, betweeniheart disease
and cigarette smoking.
Bury: For the cigarette industry, that was just the
beginning (clip of a commercial for Marlboro
Cigarettes). By 1972, the Marlboro Man, along with
other cigarette commercials, was booted off the
airways-- both radio and TV--and reports.fromithe
Surgeon General's office kept piling up..
Dr. C. Everett Koop (Surgeon General): Imthe 1982
Report on Cancer, we concluded that cigarette smoking,
wasithe single greatest cause of excess cancer mortality
in the United States. In 1983, our report on
cardiovascular disease identified cigarette smoking as
the most important modifiable risk-factor for coronary
heart disease. In 1984, we identified cigarette smoking
as the major cause of chronic-obstructive lung disease
such.as emphysema and chronic bronchitis. The 1986
report thoroughly reviewed the evidence that
involuntary or passive smoking is harmful, including
that involuntary smokingiis a cause of' lung cancer in
healthy non-smokers.
Bury: That report moved airlines to ban smoking on all
domestic flights in 1990.

-6-
Unidentified Northwest Pilot to Crew: A gentle reminder:
we do have smoke alarms in all of our lavatories.
Please don't try to sneak in there:and get one. Thank
you.
Unidentified Waiter: Would youlcare for smoking or
non-smoking?
Unidentified Customer:. Non.
Bury: Many businesses andirestaurants had already begun
to segreg;atre smokers or to ban smoking entirely and
public service announcements took off the glove,
attacking the cigarette manufacturers themselves.
Unidentified Actor in an Anti-Smoking Commercial: So,,
forget about all that cancer, heart disease, emphysema,
stroke stuff. Gentlemen, we're not in this business for
our health.
Parrish: The fact of the matter is, we have allittle
prodluct whichlis enjoyed by fifty million people and I
don't think the federal government ought to be in the
business of social engineering and telling those fifty
million people what they can do in terms of'making their
choices.
Koppel: The federal government does that all the time..
The federal government's taken thirty, forty, fifty
percent of our income for all kinds of things that we:
have no say over. So why not impose it on something
that medical knowledge, insofar as it exists today
is firmly convinced, is costing us four hundred
thousand lives a year.
Parrish: When you talk about taking it in and applying
it someplace, let me just tell you that right cigarette
smokers already pay thirteen billion--that's billion
with a`b' more in taxes than non-smokers do. This is,
not the way to achieve.meaningful health-care reform.
Eapecially...it'wunfair, it's a regressive tax, it falls
more heavily on lower and middle-income people than
others. That's not where our government ought tolbe
taking us.
Waxman: When they're manufacturing a product that's
hazardous, that, in fact, kills people, that can't be an
argument to allow cigarettes to continue at the level of
pricing where it becomes so readily accessible to a lot
of'young people, particularly and the money that can be~
raised'fromitobacco smokingican be used for
health-care, which is a perfect symmetry since it's a
leading cause.of preventable disease in this country.

-7-
Koppel: But they would take the position, they would!
say, 'Henry Waxman, you're not really saying that if we
raise the price of a pack of'cigarettes to two dollars
or two-fifty or three dollars, you're going to leave us:
You're out to put us out of business.' Sooner
or later that's what you want to do, isn't it?
Waxman: You know, I think what we ought to hope for is
that the American people go to a smoke-free society.
But that's going to have to be done voluntarily.
Prohibition won't work; we've tried that with alcoholic
beverages!. But we need to discourage people from
smoking. I just think that ought to be a major part of
our public policy agend&because it is important for the:
health of the American people to encourage smokers not
to smoke and non-smokers not to take up this habit.
Bury: The growing government drum-beat on smoking has
apparently had some success. By 1965, the year after
the first Surgeon Generals report, forty-two;percent of
Americans smoked. By 1991, that number was down to
twenty-six percent, and!in just the last six weeks, thee
news for the tobacco industry has not been good.
McDonald's agreed to ban smoking in all of its fourteenn
hundred'company-owned restaurants; the Utah legislature
banned smoking in most places of work; and Maryland may
soon become the first in the nation to ban all
workplace:smoking, including bars and hotels. And the
Pentagon announced that grabbing a smoke, long the one
approved~vice of American military men and women, would
no longer be permitted in the workplace, presumably
war-zones not included.
Koppel: Mr. Parrish, you folks in the tobacco industry
must be feeling a little like Old Testament lepers these
days. We're all closing in on you a little bit?'
Parrish: Well, we've certainliy seen in the last few
days, in the last couple of'weeks, a lot of, what I
consider to be unfounded, and I'think the facts show
unfounded attacks on our induistry. We havelthe
health-care~diebate, along with a proposed excise tax onn
cigarettes, which we saw twenty-thousand people in the
streets of Washington today marching against that N
proposed tax. O
iV
Koppel: You!guys gave them the day off'and you ~
chartered the busses for them, right? O
N, .
Parris h: No, actually, the way we did it was we 04
provided the busses for themiand we gave them a choice. N.
They could work, in our instance in Richmond, at the ~

-8-
factory or at their regular job; or they could be paid ai
regular day's wage and come up to Washington.
Bury: Thirty years into the war on smoking, the tobacco~
indhstry, its workers and smokers themselves are under
almost constant siege from the government, from society,
and from science.
Koppel: Smokers know its bad for them. Most of them
will even acknowledge it can kill them. They know that
second-hand smoke can harm someone they love, but they
keep on doing it. Why?' That part of the story when we
come back. (Commercial break)
Roppel: It may be banned for more and'more places, but
the addiction to smoking exerts aistrong hold and
there's new evidence that the tobacco industry may be
chemically stacking the deck.
Bury: Any smoker knows that the kick from a cigarette
comes frominicoti!ne--a drug found naturally in tobacco.
Even the tobacco company's own researchers say they
believe that nicotine is why people smoke. A 1992
study, co-authored by a RJ'Reynoldi's scientist,concluded
the beneficial effects of smoking on cognitive
performance.are a function of'nicotine absorbed from
ci'garette smoke.
Nicotine reduces anxiety and increases mental
alertness and its addiction--so addicting to the Surgeon
General, that nicotine!makes quitting,smoking as
difficult as quitting cocaine or heroin. The Food and
Drug Administrationlrequlates nicotine as aldrug.
Nicotine patches and nicotine gum are controlled. So
why hasn't the FDA ever tried to regulate cigarettes?
According to~a letter written by Doctor DavidiKessler,.
Commissioner of'the FDA, the tobacco companies were
given the benef it of the doubt, as ~ to whether they
intended!their products to be used as drugs, or the
cigarettes were intended to dlispense nicotine.
Decades ago, in a confidential memo, a Philip
Morris official called a cigarette pack, `a storage
container for a days supply of nicotine.' A cigarette
was a`dispenser for a dose unit of'nicotine:.' Now the
FDA may be changing its view on cigarettes. An
investigation by the ABC'News Broadcast Day-1 foundd
that cigarette:companies carefully control the amount of
nicotine in their cigarettes by adding precise amounts
of tobacco extract which contains nicotine.

-9-
Unidentified Former RJR Manager: They put nicotine im
the form of tobacco extract,intoa product to keep the:
consumer happy.
Clifford Douglass (American Cancer Society): The public
doesn't know that the industry manipulates
nicotine--takes it out, puts it back in, uses it as if
it were sugar being put in candy.
Koppel: Our sister-program, Day-1 &couple days ago,
did a report on the tobacco industry and the revelationn
of that program--and, I must say, it astonished me--and
that is that you folks have actually been adding
nicotine to the prodiuct, to the tobacco as a means of
causing people to become more addicted to the product..
Parrish: It astonished me because that's not why, and
Day-1 knew that before they aired the show. The fact of
the matter is, number one, nicotine is a natural
substance in tobacco. Wie do absolutely nothing in the
manufacturing or processing of'our tobacco which results
in more nicotine inithe final product that's in the
naturally occuring tobacco. In fact, the nicotine
levels in the cigarettes we make are lower than in the
unprocesseditobacco. So for somebody to make those kind
of claims is not only inaccurate, itls ludicrous, and
it's outrageous as far as I'm concerned. Day-1 had
information in advance of that show that contradicted
the cliaims that they made showed that they weren't true.
It's very unfortunate.-
Koppel: Says who?(?).
Parrish: We are tryingitolget the facts out.
Bury: The facts, accordingito the tobacco companies, are
that they only add'tobacco extract to enhance the
flavor, not to raise the nicotine content.
Matthew Myers (Coalition on Smoking or Health): The
recent ABC Day-i report revealed substantial new
information that, combined with FDA's own investigation,
has brought the whole issue into a new focus. We:mow
know that the tobacco industry consciously manipulates
the level of nicotine in tobacco products tolinsure that.
they're addictive. What that means is that tobacco
products don't have to be addictive. They're addictive:
because tobacco manufacturers have consciously chosen to
turn a once agricultural product into a drug.

Waxman: I have just become aware ofit, when the head
of the Food and Drug Administration informed us that he
has found a substantial amount of evidence indicating
that the tobacco indiustry is adding nicotine to their
product. Nicotine is the addictive substance. The
National Institute of Drug Abuse has called it one of
the most highly addictive substances around. I just
find that unconscionable that they would try and make a
product more addictive, and a large number of smokers
would like to give it up, but they can't do it because
this hook has been placed on them by the tobacco
industry.
Koppel:~ And they deny it, of course. You know that.
The tobacco industry denies it.
Waxman: They deny it, and of course they even deny that
tobacco smoke causes illness of any sort.
Bury: The revelation that cig,arette companies
manipulate the nicotine in their products has led FDA
Commission Kessler to conclude that cigarette
manufacturers may intend'that their products `contain
nicotine to satisfy an,addiction on the part of some of
their customers.' And Kessler says itls obvious people
buy cigarettes to~`satisfy their nicotine addiction.'
If the FDA couldprove that simply statement, it would
then be able.to regulate cigarettes as drugs. That
could ultimately mean, in the words of Dr. Kessler, the
removal from the market of tobacco products containing
nicotine at levels that cause or satisfy addiction.
Waxman: The Commissioner told us Congress has got to
dleal with this question. It clearly...he's not about to
ban cigarettes and we're not about to ban cigarettes.
But we ought to have some regulation on the level of
nicotine and we ought to~at least warn people on
cigarette packs and'other places that nicotine is in
this prodiuct that is addictive., That we've known for
some time, but we haven't been ableto get that message
out.
Bury: Congress will soon holdihearings on the
allegations that cigarettes are deliberately designed and
marketed to keep~smokers hooked. Even the industry's
harshest critics don~'t believe a ban on cigarette sales
is politically possible, but that the FDA is even
considering such a thingiis a sign of how far the tables
have turned on the nation's deadliest habit. This is
Chris~ Bury for Nightline in Washington.
#` #` #
