Tobacco Documents Online

Tab D: The Presbyterian Church has an active social investment program. Tab E: Richard W. Lyman, president emeritus of Stanford, is a director of Chase Manhattan Bank and IBM. The boards of both companies have recently recommended against shareholder proposals related to South Africa. Tab F: Gerhard Casper assumed the presidency of Stanford on September 1, 1992. Among his most pressing challenges are Stanford's large budget deficit (roughly $125 million over three years) and the on-going repercussions of the Government's false claim action against the university. Tab G: Robert Rabin, a Stanford Law School professor, published an article on tobacco litigation in the April 1992 issue of the Stanford Law Review. He acknowledges the assistance of Richard Daynard and financial support from the University of California Tobacco-Related Disease Research Program. Byron Sher, a state legislator and Stanford Law professor, is a critic of California's 1987 product liability act and claimed that the Supreme Court's decision in Cipollone was a victory for plaintiffs. Tab H contains background materials from previous divestment presentations. As you know, Nick Rolli is updating the financial information in the position paper. I will circulate revised versions of the paper as soon as I hear from Nick. Nick is also attempting to determine Harvard's lost opportunity cost in divesting its Philip Morris stock. Finally, John Langbein has suggested that we contact either Sandy Timson or Timothy Flanagan (Nielsen Merksemer) to get their input on Stanford's motivation in this matter. Please let me know if you would like me to do so. Attachment cc: C. Wall

r , PHILIP MORRIS COMPANIES INC INTER-OFFICE CORRESPONDENCE 120 PARK AVENUE, NEW YORK, N.Y. 10017 TO: Mr. Murray H. Bring DATE: September 3, 1992 FROM: Marc S. Firestone RE: Stanford University In connection with the upcoming meeting with Stanford University, I am attaching for your reference the following background materials: Tab A: In 1967, the University of Chicago's Kalven Committee issued a report on the university's role in political and social action. The report stated that "the university...cannot take collective action on the issues of the day without endangering the conditions for its existence and effectiveness....ln brief, it is a community which cannot resort to majority vote to reach positions on public issues.° Gerhard Casper was a faculty member at the time and knew the Kalven Committee members. Tab B: In 1986, the University of Chicago declined to divest Its stock in companies doing business in South Africa. This move sparked a great deal of controversy. Casper was dean of the University of Chicago Law School at the time. Tab C: In 1991, Stanford made several changes to its financial management organization. Laurance R. Hoagland was appointed chief executive of Stanford Management Co., which manages the university's holdings. Hoagland was previously a partner in Anderson, Hoagland' & Company, a St. Louis investment firm. He is also chairman of the Presbyterian Church's investment committee. In addition, Peter W. Van Etten was named the new chief financial officer of Stanford. Van Etten was previously deputy chancellor for management and finance at the University of Massachusetts Medical Center and appears to be active in the health community.