Tobacco Documents Online

M.J. MATTHEWS PHILIP MORRIS USA MANAGER CONCORD NC

CONTACT: SINIKKA SARRO (212) 880-3454 FAX No. (212) 907-5739 L I MONDAY, NOVEMBER 13, 1995 TODAY'S TOPICS TOBACCO (Pgs. 2-30) •CBS/PM vs. ABC/Litigation •FDA/Advertising/Youth Smoking • Smoking/Health/Lobbying •Smoking Bans/Smokers' Rights • Environment/International •Marlboro Unlimited/Taxes •Great American Smokeout CORPORATE/FINANCIAL (Pgs. 31-39) •PM/Advertising Spending/Top 200 •Tobacco Stocks/PM/Investing •Competitor News FOOD (Pgs. 40-42) •FDA/Food Lion vs. ABC •Kraft/Advertising/Competitor News BEER (Pg. 43) •Miller/Recycled Water •Competitor News/International I AT FRIDAY'S CLOSE I I I Philip Morris 87 - 1 3/8 Anheuser-Busch 64 5/8 - 1/2 ConAgra 38 3/8 + 1/8 General Mills 55 3/8 - 3/8 Kellogg 73 1/4 + 1/8 Procter & Gamble 83 - 3/8 RJR Nabisco 29 3/8 - 1/4 DJIA 4870.37 +6.14 ~ I This publication is ec c ab . Please remove mailing label prior to recycling. I

TOBACCO PHILIP MORRIS COMPANIES INC. 7HE NEW YORK TIMES, SATURDAY, NOVEMBER 11, 1995 -2- NOV 1 3 C'BS-TVStation Drops Commercial Critical ofSmoking By BILL CARTER A television station owned by CBS killed a commercial critical of the tobacco industry on Thursday, the same day it was disclosed that the CBS News program "60 Minutes" had dropped a planned interview with a former industry executive. The commercial had been broad- cast for about a month on KCBS, the station owned by CBS in Los Ange- les. It was also sold to 20 other television stations in California, none qf which have dropped it, said Bruce Silverman, the president of Asher/ Gould Advertising, the Los Angeles- based firm that produced the com- mercial and placed it on television stations throughout the state. "After the spot ran," Sybil Mc- Donald, the spokeswoman for KCBS, said yesterday, "the station manage- ment felt the need to re-evaluate the spot because of one line in it." The line, she said, was "the more nicotine cigarettes have, the more hooked you'll be." The station's managers decided this line "implied spiking," Ms. McDonald said, "and spiking has become an extremely controversial issue in Congressional hearings about cigarettes." "Spiking" was also the crucial word in a report on the tobacco in- dustry by "Day One," an ABC News program, that led to a $10 billion lawsuit brought by Phill Morris. ABC settled the sutt ear ter t is year, agreeing to pay Philip Morris's legal costs and to make a highly unusual apology on the air. Ms. McDonald conceded that the California commercial did not con- tain the word "spiking" and said no tobacco company had threatened a lawsuit over the ad. "But because of the controversy and the fact that the issue of spiking led to ABC's retrac- tion," she said, the station's manage- ment ordered the commercial dropped. The two managers who made the decision were William Appelgate, the general manager of KCBS, and Jehn McKay, the sales manager. Both men were unavailable for com- ment yesterday, Ms. McDonald said, because they were out of the office playinp,golf. Tom Goodman, vice president of communications for CBS in New York, said KCBS had made its deci- sion without any input from network executives. Mr. Silverman "said he had learned the commercial had been dropped when he arrived at his office Thursday morning. "I had al- ready read the story in that morn- ing's paper about '60 Minutes' cav- ing in on their interview with the tobacco-industry executive," Mr. Sil- verman said, "and I had a message on my machine saying that KCBS was pulling our commercial." Executives from "60 Minutes" said they had backed away from the interview with a former tobacco-in- dustry executive who was to offer critical testimony about the industry because the network's lawyers feared a multibillion-dollar lawsuit brought by a tobacco company. CBS did not believe the interview would be vulnerable on the basis of libel, the "60 Minutes" executive said, but on an arcarie issue called tortious interference, which relates to induc- ing someone to break a contract. Ms. McDonald said, "I don't think that the decision by'60 Minutes' was necessarily the issue" in the KCBS decision. Mr. Silverman said he had protest- ed the cancellation of the commer- cial, which was paid for by the State Department of Health using funds raised by a 25-cent tax imposed on a pack of cigarettes by a state referen- dum. Mr. Silverman said the KCBS deci- sion "means the broadcast media are saying we're not going to take the risk if the tobacco industry is involved." Mr. Silverman added, "It's a bit chilling when someting like this can happen." BP

-3- NOV 13 95 LQS AN6ELEs .rIMEs NOV 111995 Channel 2 Stops Airing Anti-SipokingAd r Media: Station denies action is tied to CBS' killing of `60 Minutes' sesment with former tobacco executivc.' By UAN MORA f N~~ TIA1[5 S'T'AFY WRITU SACRAbiEN'T0-On the heels of ' decision to cancel a contro- •veraza "60 Minutes" interview with a bacc industry executive, the networ -owned aff•iliate in Los Angeles has killed a tough-edged state-sponsored anti-smoking commercial it had run for ftve weeks. FCC>;3S, the t.os Angeles afftliAte, spiked the commercial titled "Flooked." In It, an actor wearing a business suit ia fishing alone from the end of a dock. As he pulls t'tsh after fixh from the water; a narra- tor describes how nicotine In cdga- rettes makes them addictive. The spot, whioh is aimed at teen-agers, ends with a close-up of the man's darkenedteeth. "We're disappointcd and trou- bled by. the decision," said Kim i3elshe, director of the state De. partment of Health Services, which sponsored the ad as part of its anti-tobacco campaign. KCBS had run the commercial during broadcasts of "Hard Copy." Selshc said that no other stations in the state have compiainCd about the ad and that it will continue to air for another week, including on several other Los Angeles stations. Sybil MacDonald, apoKwfoman for KCBS, said the station on ita own re-evaluated the spot. Station executives decided to kill the coam- mercial Wednesday after conelud- talg that there was a problem with one linct "The mare nicotine aiga- retiss have, the more hooked you'll be." "Management felt thia impiiied [nicotine) spikiilg, which has been ari extremely contentious i$SUe," sdaclyonald said, adding that the station's decision was not the result of outside pressuro. C igarette companies contend that niootine ia not addictive, despite what Belshe calls the "tona of evfdencc produced by scientists showu'V, that it is. ` KCBS' decision comes as, the tobaCco industry has become In- creasingiy combative. Pn ,August., ABC.Settled a libel suit by tobacco giant Phili Iidor'ria by airing an apology or c aIming in one of its' news scgmente that companies manipulated; or spiked, nicotine levels in cigarettes. This week, CBS attracted Attetl- tion when ttetwork attorneys pre• valled in stopping a segment from cover,-ge avaa'able airing thii Sunday on "80 Minutee." The teieviston shpw had ploAned to run an intervicw witl.an unnamed former wn & Wiltiamson tobacco executive critie o e ndustry. CBS' legal department baliQved that by airing the segment, the network might be liable for violat- ing an agreement between Brown & Williamson and tt}e anonymous former employee that he not dis- cuss internal dompany mAtters. In Los Angeles. MacDonald said the decision to. ecase airing the "Hooked" ad had nothing to do with the "60 Minutes" action by CBS in New York. ~"It was an Internal decision;' MacDonald said, adding that the station will continue to broadcast two loss,bard-edged spota that'are part of the state anti!tobacco ad- vertising Campaign paid for by Proposition 89 funds. Beishe called KCBS' timing "cu- rtous." Bruce Silverman, president of Asher/Gould, the Los Angeles advertising firm that created the commercial,'said, "I find it suspi- ciously coincidentat: " Silverman said KCBS sales nain- ager John McKay gave him the final decision Friday, explain.iri,g that the Spot implies tobacco in- dustry officials know that the more ' nicotine t,here ia in a cigarette, the better the chance they have of hooking young uFers. ~

-4- THE NEW YORK TIMES, MONDAY, NOVEMBER 13, 1995 CBSExecutives Killed Story, '60 Minutes' Broadcast Says By BILL CARTER The CBS News program "60 Min- utes" offered its own explanation last night for why it decided not to broadcast a planned interview with a former tobacco industry executive, saying on the air that because of fears of a lawsuit, "CBS manage- ment told us we couldn't do that." Instead, the program reported on the lengths the tobacco industry has gone to muzzle its critics. In so doing, in the eyes of some journalism analysts, the program risked its 27-year reputation for tak- ing on any subject, no matter how large or powerful. "The conflict of interest between business and journalism was naked on the stage," said Joan Konner, dean of the Graduate School of Jour- nalism at Columbia University. "I felt very bad for the '60 Minutes' crew because they're great journal- ists, but they were embarrassed and it showed." "I think what happened here is proof of the primacy of lawyer§ over editors," said Marvin Kalb, the di- rector of the Shorenstein Center on Press and Public Policy at Harvard University, "It is sad that '60 Min- utes,' which has always been free- wheeling in its approach and has always produced solid journalism, should be in this position." The original report was to have contained an interview with a for- mer executive of a tobacco compa- ny. The man was to have been identi- fied and interviewed on camera. But CBS management reportedly feared, in part, that they might be held legally responsible for inducing the executive into breaking an agreement he had made with the company, upon his departure, not to disclose internal company matters, -Other CBS employees have identi- fied the company as the Brown & Williamson Tobacco Corporation. Last night's report contained a brief comment from the executive off-camera and with his voice dis- guised. A spokesman for Brown & Wil- liamson has said the company has not threatened a lawsuit and has not contacted CBS about the report. Richard Campbell, a former pro- fessor of communications and jour- nalism for the University of Michi- gan and author of a book on "60 Minutes," said last night's report contained some of the familiar strengths of "60 Minutes," mainly its ability to shed a bright light on issues that the public may have only been glancingly aware. "But I think the end result was pretty weak-kneed," Mr. Campbell said. He said he was especially struck by the program's failure to say that the management decision came as CBS stockholders were con- sidering a merger with the Wes- tinghosue Electric Company. Noting that "60 Minutes" has a spotless legal record despite all those years of investigative report- ing, Mr. Campbell said, "It just strikes me as fishy that the manage- ment would not go to the wall for an institution with that kind of track record." He added, "We've come to depend on '60 Minutes' for upholding the tradition of afflicting the comfort- able and comforting the afflicted, and they didn't do that tonight." Mike Wallace, the correspondent who reported the story last night, said in a closing "personal note" that the program's staff had been "dismayed that the management of CBS had seen fit to give into per- ceived threats of legal action." He noted that the program had broad- cast many such investigative re- ports in the past "and we want to be able to continue." He added, "We lost out - only to some degree - on this one, but we haven't the slightest doubt that we'll be able to continue the '60 Minutes' tradition of reporting such pieces in the future, without fear or favor." Mr. Campbell said when he heard those remarks, "I was yelling at the TV: 'Unless it involves the tobacco industry.' " The report mentioned both the in- ternal debate at CBS over the inter- view with the former tobacco indus- try executive and ABC's recent set- tlement of a $10 billion lawsuit filed by Philip Morris, a settlement being wi e y ct e as starting the chilling effect that helped kill the CBS inter- view, i~~V 13 410 DAILY NEWS • Monday, November 13, 1995 Mike Wallace4its- !60 Minutes'-move CBS newsman I4like Wallace 'took an on-the-air swipe last night at his network's decision to drop part of a"60 Minutes" segment critical of the tobacco industry. He did it on "60 Minutes." "We are dismayed the man- agement has seen fit to give "in," Wallace said in a brief commentary at the end of the truncated tobacco piece. Network lawyers had batked at airing an interview with a one-time tobacco exec- e utive who had signed a non- disclosure contract with Brown & Williamson Tobacco Corp. Any inducement from_ CBS to break that agreement, the lawyers believed, could expose CBS to a lawsuit. The mutilated piece includ- ed just parts of the interview. "CBS Evening News" an- chor Dan Rather had earlier expressed his displeasure with CBS management. "If you believe in your stuff, let them take you to court," Rather told radio's Don Imus on Friday. Wallace said he and the rest of the "60 Minutes" team hoped to continue the show's. investigative tradition despite last night's setback, • . Stephen McFarland

USA TODAY • MONDAY, NOVEMBER 13, 1995 INSIDE TV / BY PETER JOHNSON CBS heavy hitters decry '60 Minutes' decision '~ The old guard at CBS News, fearing the network's news- gathering reputation is at stake, is blasting CBS' decision to drop part of a controversial 60 Minutes piece. Three of CBS' biggest names - Dan Rather, Mike Wal- lace and Walter Cronkite - say the incident gives CBS News a black eye and could haunt the division. CBS revised Sunday's Minutes out of fear that it could be sued if an ex-tobacco industry employee violated his con- tract by disclosing company secrets. A potential lawsuit "would cost a lot but not as much as it's going to cost us if we get a reputation for folding every time somebody threatens us," Rather told syndicated radio host Don Imus. Minutes' Wallace, who did the report, initially sup- ported CBS' decision. But in an interview with the CBS Evening News, he seemed to back away from that sup- port Talking to CBS' Edie Magnus, Wallace said: "It's the first time that we really feel that we have ... been let down by the company, but I guess that's what a lot of people at 60 Minutes do feel: " "It's a shame that should be happening," Cronkite tells CNBC's Tim Russert to- night (8 ET/5 PT). "Those who permit such pressure to be exerted clearly are By Muty L.tlwhvidl~r, AP Walter CroNdte: Ex-anchor calls the situation 'a shame.' thinking purely of their pocketbooks and that alone - not of the people's right to know or necessity to know - and I abhor it I was never once asked to leave something out or put something in because of a commercial interest in the broadcast" Wallace concluded Sunday's broadcast by reiterating his dismay with the decision, but he expressed belief that the 60 Minutes tradition of reporting would continue. CBS spokesman Tom Goodman said the company would have no comment -5- DAILY NEWS • Saturday, November 11, 1995 Dan rips CBS for snuffing. cig story By RICHARD HUFF Daily News Staff Wr ter CBS News anchorman Dan Rather yesterday blasted net- work lawyers for forcing "60 Minutes" to "back down" from a controversial report on the tobacco industry. Rather warned the move could further tarnish the im- age of the Tiffany Network. "I can't believe this thing," Rather told WFAN Radio's hon Imus yesterday. "I don't l'ike the way it makes us seem. ;''Ifyou believe in the report- i_sig, if you believe in your stuff, ,Wt them take you to court," Rather added. "I'd rather take ;>Wy chances in front of a jury an take my chances in front corporate lawyers. ~•"Let's face it, the lawyers i:• er want you to run a story. ~'~ ey can't get in trouble if you n't run a story. I don't like it y time we back down, back back away." Rather was fuming over the i i~etwork's decision to drop ar't i interview with a former tobac= ,eo executive who was legally (iound to not talk. CBS lawyers were con- '(~erned the former exec's com- ments would have violated his contract and made the net- -work vulnerable in a lawsuit. The move came months af- 4r ABC News was forced, in e face of a $10 billion law- #&it, to apologize for a report Adleging that Philip Morris in- tentionally 'spiked" nicotine levels. Rather said that ABC "fold- ed like an accordian." ' The anchorman acknow~l- edged a lawsuit "would cost a lotI but not as'much as it's go- ing to cost us if we get a repu- tation for folding every time somebody threatens us," NOU 1 3 10@1, °. Wallace rips ~ CBS for gutting ?> cigarette story ~ on `60 Minutes' < By MICHELE GREPPI ,.~'.> Mike Wallace believes "60 Min- ~ utes" was "let down" by CBS Y when the network dropped part of cc an interview criticizing the in- 0 creasingly combative tobacco in- dustry on tomorrow's broadcast. LU "It's the first time that we reallv Z feel that we have . . . been let down by the company," Wallace told "CBS Evening News" correspondent Edie Magnus when she interviewed him for an unusually self-critical report for last night's "Evening News." ~, "But I guess WALLACE that's what a lot of people at '60 Minutes' do feel," he said. But those com- ments were ed- ited fi•om the "Evening News" report the public saw. ABC News re- cently apologized for a "Dav One" report about nicotine levels in ciga-, rettes rather than continue to fight a $10 billion defamation suit filed by Philip Morris. Critics said the resulting effect led CBS News to cave in and restrict Wallace's "60 Minutes" interview because network la«}ers feared CBS might be sued - not for libE+l . but for tortious interference. Wallaces unidentified interview subject signed an agreement not to reveal internal workings during his employment by the cigarette maker. In the "Evening News" report, Wallace told Magnus, "The people who own the network are saying you caa t do it, because if you do do it, it will conceivably cost this com- pany more than the net worth of the company." Wallace, however, was allowed to . uestion the man about death threats made to him and his family when it was learned he would talk about secret tobacco-industry prac- ~ ticies. ~ That information will air on °60 t,q Minutes" tomorrow in «'allace~s re- io port on the lengths to which tobacco ~ companies go to keep information from the public. qa Wallace declined last night taela,b- t!t orate on his tomments'editedlfmni' W the `&ening News'story: .. . . . - -

-6- NOV 1 3 166~ THE NE W YORK TIMES EWORIALS f LETTER$ S UNDAY, NOVEMBER 12, 1Q95 Self-Censorship at CBS - '. The emerging picture of what cigarette• manu- facturers have known and done or failed to do about the health hazards of tobacco is one of the biggest aria most absorbing news stories of the year. Never- thetess, "60 Minutes" has decided to spike an inter- view with a tobacco-industry whistleblower out of fear of a lawsuit that the industry had not even threatened to file. This act of self-censorship by the country's most powerful and aggressive television news program sends a chilling message to journal- ists investigating industry practices everywhere. CBS's legal concerns over the interview were said to be based on fears that the subject of the interview, a former executive of the Brown & Wil- liamson Tobacco Corporation, had an agreement with the company not to disclose internal company matters. The CBS lawyers argued that the tobacco company, instead of claiming that it had been libeled by a false report, would simply declare that its former employee was committing a contract violation. CBS, these lawyers said, could then be held' liable and be directed to pay huge amounts in damages for inducing him to do so. One disheartening aspect of CBS's decision is that the theory of liability for inducing someone to break a contract is almost wholly untested in news cases when First Amendment protections of free- dam of the press are at stake. Many legal scholars argue that.liability in such cases can be overriden when a public good is served, including •public' health. Were this doctrine to be accepted, it would devastate independent journalism, which counts on people to come f orth and speak of wrongs they know about inside protective organizations. In any event, CBS's response to a feared suit under this doctrine wa5 exactly wrong. New York-ba$ed news organiza- tions often face legal challenges in unfriendly state courts. They have an obligation to defend the jour- nalistic franchise rather than cave in at the pros- pect of litigation. But'the most troubling part of CBS's decision is that it was made not by news executives but by corporate officers who may have their minds on money rather than public service these days. With a $,54 billion merger deal with the Westinghouse Electric Corporation about to be approved, a multi- billion-dollar lawsuit would hardly have been a welcome development. Some of the executives who helped kill the "60 Minutes" interview, including the general counsel, stand to gain millions of dollars themselves in stock options and other payments once the deal is approved. "60 Minutes" promises a report on this entire matter tonight. That report should include full disclosure of how much every business and news executive involved in this deci- sion stands to make from the merger. CBS and its general counsel insist that no one acted out of personal, monetary interest, but the network's action shows that media companies in play lose their journalistic aggressiveness when they let lawyers and corporate executives make decisions that ought to be the province of news executives. The same issue was raised last sum- mer, when ABC News settled a lawsuit with the P~hili Morris Companies and the R. J. Reynolds o ac~6 co Company, rather than contest it in court. Last week, Mike Wallace, the cor'respondent who reported the story for "60 Minutes," acknowledged that CBS was influenced by that settlement when it killed the tobacco interview. None of these concerns'would be so important were it not for the fact that the atmosphere has been chilled by the big tobacco companies' attempt to save a dying industry by using money and legal threats to silence its critics. Their ugly effort will fail because the Government, the scientific and medical communities and the American people have turned against their killing products. The industry's campaign of intimidation and distortion - arguing, for instance, that curbs on advertising of cigarettes aimed at young people are an unwarrant- ed intrusion by slovenly government bureaucrats - cannot hold back the truth or the stricter regulation that is on the way. Eventually, too, the inside secrets that people from the industry have to tell will make their way into the public. Given the tide of principle on this issue, it is a shame 'that CBS chose this moment to water down its report. The traditions of Edward R. Murrow and "60 Minutes" itself were diluted in the process.

-7- November 13, 1995 B A R R O N' S Non-Running Stories BY ALAN ABELSON I T MAY HAVE BEEN MARATHON WEEK IN NEW YOR K City, but the non-runners hogged the headlines. Most prominent, of course, was Colin Powell• Mr. Powell announced that he wouldn't run in the Republican primaries for the 1996 Presidential nomination. Dictating his choice, the ex-Chief of Staff contended, was his failure to experience an inner calling that he felt a prerequisite to taking the plunge. Perhaps. But we suspect there were other considerations that came into play as well. The sudden eruption of strident opposition to the possibility of his candidacy, for one thing, not from yellow-dog Democrats but from rock-ribbed Republicans. The discovery that GOP stood for Get On Powell at the- very least must have given him serious pause. And, after soberly measuring himself against the rest of the Geld. Mr. Powell couldn't help but realize he'd come up short in several critical departments. He doesn't, for example, look as good in a plaid flannel shirt as Lamar Alexander. He couldn't hope to match the sheer charm of the front-runner, Bob Dole. Nor is his direct and matter-of-fact delivery anywhere near as riveting as Arlen Specter's adenoidal eloquence. Most unnerving of all, Mr. Powell doubtless was aware that he'd have to compare his battlefield experience with that of such heroic warriocs as Phil Gramm, Pat Buchanan and Newt Ging- rich. Political pundits in the press (an elite corps of journalistic stableboys) were quick to sneer that Mr. Powell's real problem was that he lacked "fire in the belly," Why a condition that suggests an incurable addiction to crushed hot pepper is deemed an essential qualification for the Presidency, they neglected to say. Picking through their assorted natterings, however, we pieced together the key elements of their analysis: Colin Powell's fatal political flaw is a willful refusal to play by the rules. He won't deliver a well-placed blow to the kidney or knee to the groin. He's shamefully loath to lie or to grovel. He demurs from routinely questioning an opponent's legitimacy, demeaning his manhood or even, if you can imagine, accusing him of burning the flag and hating apple pie. Whew! We shudder when we think of it: A man so disdainful of our political traditions might actually have been elected to this proud nation's highest office. Close call, America! The other noteworthy non-runner was 60 Minutea, which decided not to run a segment of an anti-^ toacco rP ogram for fear it might be sued for i on. Understand. CBS wasn't scared it'd be sued for libel. Rather, it felt in harm's way of litigation because a former employee of a tobacco company, whom it had interviewed, had a non-disclosure contract with the tobacco company. How any rational being would conclude that such a circumstance laid the network open to litigation is beyond our ken• CBS explained that it wasn't a rational being that came to that conclusion, but a lawyer. There is a difference, some perceptive observer has remarked, between a lawyer and a mackerel. One is cold and slimy and the other is a fish• And, as ABC earlier demonstrated and CBS now has confuzned, there is a difference between a television network and a jellyfish. A jellyfish has backbone. The legal term for the action that made CBS tremble is called "tortious interference," and it induces "courage NEWARK STAR 'LEDGER ~ SUNDAY NOVEMBER 12, 1995 here -t~iere,7s - smoke . .` ,~s' - ::,. ~. . ,..... .. . ..•a. . 0 I Ef you're citrious about-theA actics that fall open to any jury of tobacco farmer,s that the tobace dus .rv employs in Its ef- Brown & Willlamson•could assemble in an fort to get millions of Americans hooked appropriate courthouse In North Carolfna- on saloking, there's a certain disgruntled to- If cigarettes are indeed'as harmless and bacco executive you should iilvite to your wonderful as the tobacco people claim, 'the next party. The executive, whoever he I's, was companies shduld be glad to let the debate willing to tell all on the CBS show " M'proceed unfettered: Failing that, their heavy. Les." handed attacks on freedom of expression are But you won't be hearing from him. '. simply going to make the public even more .Tbat's what lawyers are for. • curious about their attempts to buy polf- -The lawyers at CBS backed oPf the inter- ticians with campaign contiibutions and to view,,which would have aired tonight, amid buy silence with high•priced mouthpieces. feart that the lawyers at the Brown & Willi• '. . But before we work up too much sympa= arnson Tobacco' Cqp. would sue them if the thy for CBS, we need to consider the awful kxecutive's views w1re televi'sed. . .' recedent it has set here by turning lawyers The dispute'centers not on the accurafy ~tp editors. The traditional stance of the -of the executive's views - whatever they may media toward these questions has always .be, - but on an obscure legal doctrine called beeri that it it's true and newsworthy we'll "`tort±ous Interference." The executive had p~t it. ' signed a contract with the company statin that he would not speak publicly about what ~e CBS stance, however, makes truth ~ondary: "60 Minutes" producer Don He- ';he•-' did f,eaving during his aside time the there:, ~ question of j'ust ' what ~tE said of the suit, "That's a=15 billion gun -sort of industry feels a need tp swear its em- p.ointed at your'head. We may opt to get out •ployees to secrecy for life, there li the ques- of the line of ffre. That doesn't make me ~, tion of who could be sued if you happened to proud, but It's not my money." ••. . N meet this executive at a party and somehow The clear message to every business ~ inanaged to get him to confess about his life .,that has some rather dubious secrets it ~ as a tobacco pusher• The answer. him. wants to keep: Muzzle those whistleblowers, W `I But should CBS become the conduit for The media will back down. the confessions, well, that's where the law- Keep that in mind il you tune In "60 ro.n ye,rs come in..The deep pockets of CBS then Minutes" tonight. : - W iru'v 1 3 °' interruptus" in those threatened by its emplo-vment. Bob Sack, who worries a lot about first-amendment stuff and is the only lawyer we've ever come across who deserves the appellation "learned counsel." in effect suggests that, were CBS to set a precedent, it would represent torturous interference with the gathering and spreadmg of the news. He points out that compelling journalists to obey the letter of tort law in instances like this is comparable to requiring the police to adhere to the speed limit while in full pursuit of a criminal or insisting a doctor not park illegally while attending an emergency. The news for television networks, of course, is filler between commercials, so Bob's concerns are not of the sort likely to sway the pooh-bahs at CBS. Besides, as the producer of 60 Minutes plaintively explained, nobody likes to have a $15 billion gun "pointed at your head." Especially if it's a smoking gun. Both the non-running stories - and notably the one featuring Mr. Powell - were taken beautifully in stride by the stock market, which bulled ahead once again to new all-time highs• Which is only logicaL Why should the stock market pay any heed to the fact that there's one less candidate to head up the government, when the govern- ment's about to shut down?

-8- AREZONA R«#'UBL.IC NOv 13 18@5 Tobacco honchos huff, puff, blow CBS News' house down f you tune in 60 U in,Jr!on~C,B,,,,,,S I tonight, you'Il see a so-so segment on the tobac industry. What you won't scc is an interview with a tobacco insider who had some startling things to say about his company's practices. The intervicwa: was a high-ranking executive with B owadc Williamson T_o_b_a ~^~cQ.Ca, tl nation s t trd-Ti - biggest ~c~i~g~arctte maker. "•Ils knows everything," a source familiar with the matter told the Washington Post. "He's the biggest whisde•blowcr ever to come over to the other side." CBS pulled the hotly anticipated interview because its lawyers were worried about a biltion•dollar lawsuit. They didn't fear a fibel complaint; the story's truth was not in doubt. In this case, the executive had signed a non-disclosurc contract when he left Brown & Williamson. The CBS lawyers, who prevailed over arguments by 60 Minutes producer Don Ncwitt and correspondent mike Wallace, said thc tobacco company mi;ht sue the network for its part in helping him violate the agreement. , The Suit they feared would allege "tornous interference" - a term that refers to inducing someone to break a contract. Such a enncern seems reasonnblc to raise, but kating it censor a significant story may be without precedent. Bruce Sanford, a media attorney in Washington. D.C., called it "a truly eccentric argument." rorrner CRS anchorman Walter Cronkite, who once sat on the network's board of directors, took offense at what he called commercial pressure. He said those "who permit such pressure to be exerted are thinking purely of their pocketbooks ,ir1d are not thinking of the pcople's right and necessity to know, and I abhor it." Yaui Ecksrcut, a Phocnix lawyer S 16VE W(lS4N Republic Columnist toward the tobacco industry. His company, Loews Car ., counts among its subsidianes e cigarette maker Lorilla Tnc. The head of Lori{lard happens to be his son, Andrew Tisch - a corporate coward who testified at a congressional hearing lbst year he doesn't believe ~sm_o~f{ing causes death. CBS had yet anothet motivation for spiking the 60 Mrnutes story: Next week its shareholders will vote on a takeover by Westinghouse Electric - _'f~e transaction stands to be worth C who has defended the media in many a mtllton dollar5 or more in stock cases, said he knew of no prior uses of options to several CBS executives, the tortious interference in a journalistic Post rcported. They include CBS contcxt. News President Eric Ober and general "To the extent that whistle-blower law protects employees who reveai something that is dangerous or fraudulent, a non-discloaure agreement ought not to trump that law, and I think the courts will rule that way." F,ckstein called the capitulation by CBS "a gross overreaction" to the settlement two months ago of a 3iS billion lawsuit filed by Phili yi._orris against,&AQ News. in that case, ABC gave Philip Morris several million dollars and an apology for reporting that additional nicotine is added to cigarettes. ABC has been widely criticized for not ctanding behind a weil-documcnted story. Wallace, who conducted the 60 Minutes interview, acknowledged that ABC's settlement figured into CAS' decision. "it has not chilled us as journalists, but it has chilled lawyers and it has chilled management," Wallace said, i.aurence Tisch, the owner of CBS, is a chitling man to begin with, a counsel Ellen Oran Kaden, who pressed concerns about a tobacco lawsuit. It's worth noting that ABC settled with Philip Morris shortly after its merger with Disney Co. was announced, So I see the decision by CBS as a troubling sign of not only the tobacco industry's legal clout, but also of the conflicts of interest that can arise from media mergers and can compromise news judgtnents. "CBS isn't what it used to be," Eckstein said. "Tn the old days. CBS would have gone to the wall. Many modern media owners aren't ncarly as committed to the public interest." By backing offan important story to avoid the risk of a fanciful lawsuit, CBS has set a new standard for media timidity. The network won't get sued, the public won't get informed and the tobacco company will go on reaping handsome profits from its deadty prcxlucts, bottom-line type with scant interest in As Cronkite used to say in the journalism. And Tisch has another network's better days, thut's thc way reason to be less tban aggressive it is. (Qther coveYa;e available upon rey~2st.) I

MS Smoker's Suit, Justices Agree Tobacco Harmful But No Damages Justified JACKSON, Miss. (AP) The Mississippi Supreme Court has ruled that a Lafayette County jury was correct in not awarding damages to the family of Nathan Henry Horton, who died in 1987 from lung cancer. In the same ruling Thursday, the justices agreed with the same jury's finding in 1990 that the cigarettes that Horton smoked for 35 years were " unreasonably dangerous.'' While the two issues appeared to conflict, Justice Fred Banks, writing for the court, said the jury was justified in denying damages because Horton contributed to his illness and subsequent death. Banks said the Hortons won the declaration that cigarettes were harmful. Horton's family had asked the state high court to order a hearing on damages, which was denied. Justices also denied a motion by American Tobacco Co., makers of the Pall Mall cigarettes that Horton smoked, and New Deal Tobacco and Candy Co. Inc., a Greenwood distributor, to toss out the entire case. Horton had sued in 1986, while he was still alive, for $2 million in actual damages and $15 million in punitive damages. A first trial ended in a deadlocked jury in January 1988. The second trial was moved to Lafayette County from Holmes County. Horton, in a deposition filed after his death, said he had been smoking since 1955 first with rolled cigarettes and then unfiltered Pall Malls. Horton died Jan. 27, 1987. He had been diagnosed with lung cancer in 1986. Tobacco company attorneys argued that Horton knew the dangers of smoking but didn't let that stop him. Attorneys for the Hortons argued on appeal that damages were justified in the case on grounds that the jury verdict established three crucial points: " That Pall Mall cigarettes are a defective and dangerous product; that those defective cigarettes caused Horton's death; and that Horton did not assume the risk of smoking. " The argument among Supreme Court justices centered on the issue of whether the Hortons deserved financial damages. A majority of the court said no. Chief Justice Armis E. Hawkins said the case should have been reversed and ruled in favor of the tobacco companies. Hawkins said numerous other cases on tobacco issues agree that " when a person buys a product which is perfectly legal to sell, and which he knows is designed to do certain things, he cannot hold the seller liable for the product injuring him because it precisely what it was designed to do. " Justice Chuck McRae disagreed, saying if a product to be dangerous, the producer should pay damages. did is determined McRae said while the dangers of cigarettes are now known, they were not when Horton was smoking in the 1950s and 1960s. He said Horton was never advised to quit smoking until 1986. McRae said the court should be prodding defendants to correct dangers to their products " not to promote them and prosper from them. " " Mississippi should erect billboards at all state lines which read, 'Welcome to Mississippi, where cigarette manufacturers need not pay the price for the damages their products cause.' " Today's opinion makes it cost-effective for tobacco companies across American to maim, injury and kill in Mississippi, " McRae said. Copyright (c) 1995 The Associated Press Received by NewsEDGE/LAN: 11/10/95 12:31 AM L9$LQT090Z

-10- CH4Ri.OTTE OBSERVER `Man M a fWrry': Rep. Richard Burr, R-N.C., holds a"Sensor Pad," a device that helps women detect lumps in their NOV13 fm /M0lt:RT t1AAOWC/Knipht-R1Gdr Trlbluw breasts. Burr wants the FDA to speed up the approval time of devicee like the Sensor Pad that may save Uves. New 1anaker whits FDA hard N.C. representative may be moving too fast, critics say By JOFtN MONK ot~etv.r war,inqson t3ur.w . 1A_ WASHINGTON - Richard Burr has been in Congress only 10 months. But the Winston-Salem Republican already is trying to trim thef and Dn,o Administ,r atio the $880 million-a-year, 9,000-employee agency that oversees the safety of the nation's food, drugs and medical devices. Burr wants to privatize the agency's review of new products, which he says would save money and speed approval. "He, believes in moving andge tting it done. He's a man in a hurry," says Rep. Howard Cob1c, R•N.C., the senior Republican in the N.C. House delegation. Burr, 39, the youngest N.C. member of the House, agrees: "I have got a sense of urgency. That's why people sent me here." Critics say Burr could be in too much of a hurry. , The FDA's lengthy review process keeps unsafe drugs and medical products from getting on the market, they say. Allowing private groups to take over FDA functions could endanger lives, they say. Private groups are "much more likely to be sympathetic 'to the industry viewpoint as op- posed to the public health viewpoint," says Sidney Wolfe, head of Public Citizen's Health Research Group. On Wednesday. Burr plans to grill FDA commisaioner David Kessler, who will testify before Burr's subcommittee of the House Com- merce Committee. Burr believes people might die while waiting for new products that should have been allowed to go on the market. "The FDA is riddled with mismanagement, abuse and no dear focus as to what its core m"on is," says Burr, a former Wake Fonat Please see Bun/page 8A NOV 1- 3 9 v:r,c d'.=

NoV13 19~; University football player (defen- sive back) and sales manager (electronic' goods). Burr will ask Kessler why it's taken the FDA 10 years to com- plete a review of a simple device called the "Sensor Pad" that seeks to help women detect cancerous lumps in their breaats. The FDA has refused to approve the device.,lt says it has not seen scientific evidence showing the product helps women detect lumps - and that women might think that using the Sensor Pad is a foolproof dete<•zion method. Burr retorts: "There was never a claim made by the company other than this should be. used to supple- ment a breast self-exam.". The maker of the Sensor Pad recently filed for bankruptcy be- cause of the delay, Burr says. Represertts L41acco district Burr repn~5ents o olina's 5th congressional district, which n" along the N.C.-Virginia border and also dips south into Burke. Caldwell and Wilkes counties. The 5th is a majo i arette manufacturing district. ut urr Richard Burr - 9 Bofrt: Nov. 30, 1955. • Hobbl*s: Coaching youth sports. Foflovvin6 pro basebafl and football, ootisae basketball and football.  Marrts+d+ VWe, Brcoke, married 13 years; two boys, Tyfer,11, and Wil- liam, 9.  Cot{.ga: BJ1. In commu- nications from Wake For- est University. Former Wake Forest football dta- ; fensive back. • Retfpton: presbytertan. HEs father, Dr. David Burr, was minister of First Pm- bytertan Church in Winston-Salam for tttoro than 20 years.  Motto: "It's the National Debt, Stupid." • Hero: Baltimore Otiotes shortstop Cal Rlpken, not only because of Ripk.n's talent twt also his charaa- tsr and wofit etttic. gradually reducing the time It takes s. to review dru Burr says t e report has incon- sistencies. And he notes that the report says that the time to review medical ptvducta had increaaed to 2.2 years, even though the law requues the FDA to complete its review in six months. "if we don't change that, we won't have an bi°rhusindss left in the LJS., Burr says. The FDA says It doesn't friYo• lously hold up approval. When a company sends the FDA evidence of its clinical trials of a new product. FDA reviewers have to wade through tens of thousands of • pages of documents, says FDA spokesman Jim O'Hara. "Thalidomide was a very tragic example of the need to go beyond the summary data and ask probing questions," O'Hara savs. In 1960, an FDA reviewer, suspi- cioua that the tranquilizer Thalido- mide might have side effects on pregnant women, refused to ap- prove it. In Europe, where the drt~ was legal, an estimated 10,000 chiidren were born'without arnts or legs. The deformities were traced to Thalidomide. says he's not after the FDA be• cause it wants the authority to regulate cigarettrr.s - and the nicotine in them -- as a drug. "I come from a tobacco state, a tobacco district. But my remarks on the FDA were much sooner than any propcsed new rule•mak- ing on tobacco," says Burr. who smokes Camels and Marlboros. - Burr says FDA po icl'T e-cost lives - yet he supports the to- bacco industry. "As long aa to- bacco is a legal commodity, then .its treatment should be no differ- ent than any other legal commod- ity,,he says. Burr's freshman status gives him less power tharr more senior mem- bers to influence bills. But he does have some cloiat: He's got the full blessin of House Speaker Newt Gin.,grlc~,.R-„G_&, to attaclC the FDA. Burr says he's aware of'thalidoa _ sa rying to s the i"DA - whlch ' mide and says, "No One is t ,,.. ~. y • eliminate the FDA." But the he the 'leading job killer in ~* ~~r~ he ~ Amerlra" - is a pdme example of ~n~ can y& too much regulation. Ging ch is ~earings, Buff 4 a tough supported by major phanrtaceuti- 4"ner4 cal and medical device makers, Last week. Burr began a hearing. ; th dela by scolding a.Qepariment of En- who claim leng~ ~ of ~. erav official for t~ia~agency at - "No matter ure to provide him an advance dence you have that a product i= i copy of te:timony. Then Burr flung effective, any FDA reviewer canI detailed'queations about the na- say to a company - 'Sorry, you' tion's reserve oil supply. haven't provided enough evi• • Burr says he ttks not to be nasty. dence,' " says Richard Samp, at- "You don't get a lot accom- tomey for the Washington Legal "ed up here," he says, "if you Foundation, a conservative think make a lot bf enemies" tank that has attacked the FDA. ,- Accounting Office ftleased a re- t~3 port that said the FDA had be, en t ~ ~ cr# 0 ~ cn ftVWMf 1fMt; *03"flYd . last week. the U.S. t,,enerat

-12- KANSAS CllY STAR Rpy 1 1 1995 Will ri ts be sn ed out, too?"Tombstone ads" abotit smok- ing make the cool habit sound deaclly. Joanne Wisema•n, senior vice president of club services for the Atuerican AdvGrtising Federa- tion, ex me to that jargot She if President Clin tongets his way, we'll see more tombstone ads beeause of gov- ernment'c unprecedented at tempts to choke teen- agers' urge to smokG It's just part of the c~hanges that would switch Big Brother's • regulating arm on the fra~m~tbe Federal Trade Commiasion to the Food and Dru Administra- -W'~isemaa to blam U.S. offi- cials consider it an addictive ` th nu~d~ kss to are e" de- at eliver it. Wisetnaa said the_rro~ulating agency change kills th4 rapport the to- bacco and advertising industries had with the trade oommisaton. "Mostly we don't see where advertisiag should be factored into the Food and DruAn- istration a c . that rv - ~y _ c t urg?" - - -- ; The FUA regulations won't go into eff,-ict for about a year: Rigbi. now the proposals in- clude tombstone cigarette ads in publicadons geared to children. Th~y would be limited to black- and-white, text-only pitches with no piix'rues, no logo, no slogans aad no catchy phrases Wioesnan said that tramples her industry's First Amendment right to free speech. The 9 pro- d changes are being chal- n oseged in court. "So far tobacco is still a legal product," she said. "Our rights say we have the right to adver- tise legal products." Ci aiettea are today's target, but '~Vi,:eman and others worry that liq uor could be next. The roposed regulations would for- gid outdoor ads within 1,O00 feet of schools and pla~yground9. '(Sounds like a new kid on the 'drug-free-zone block.) The I;overrunent would ban the sale of individual cigarettes and packs of fewer than 20 ciga- rettec'I'he regulztioas would forbid brand-name ads at sport- ' inS evcats and on products not related to tobacco use such as T- shirts and hats. They would require tobacco compauies to pay for a $150 mil- lion ad campaign, including TV commercials to stop young peo- pie from smoking and ban all cigarette vending machines and aelf-serve displays. Manufactur- ers, distributors aaid retailers would be responsible for under- age sales. Customers would have -to show proof that tEuyYe over age 18. ~ The regulations won't help, Wicem,tn contends. Children cZzoose their own path and aren't influenxd by atds "Thif: is such an emotional issue," Wiseman said. "Is chang- iAg or altering advertising really a solution to the problem? Can NOV 1 3 1oi~3 you demonstrate that in•fact will be a cure?" A lot of informedpeopie think so. A new stu yQ says ad- vertising is the most potent force in gettin~ childrrn to smohe_ But tobacco ftrms say they don't market to rtinors. The FDA action is just a move to- ward # smoking ban. That may not be all bad. Stud- ies show that smoking increases the chance of heart attacks, lung cancer and other itls • I worry about friends who are forced outside because of in- door-smoking bans. They're among "the new street.peopte" catching a butt in our worsening weather. For them the high price for a pack of ci$arettes isn't a deter- rent. They re addicts of a naaty habit. Nicotine has a deathgnp on their m,inds, a recent study showg tetling their brains: "°I'bat was good! Do It againf" Tombstone ads won't kill bud- ding urges to smoka But I hope it doesn't take a headstone to get smokers to finally quit. ' Send e-mail to Lewis Diuguid at diuguidLQlccstarnet.cosn, or leave l:1n: a messa~e~ at (81t7 889- Y7 and enter 1134,

ADVERTISING AGE NOVEMBER 13, 1995 Why we must defend tobacco ads Rance Crain makes two points in his Oct. 30 column: l).He does not find credible the argu- ment that cigarette ads do not influence young people to smoke; and 2) he questions why the ad- vertising associations should protect tobacco ads from government censorship. With respect to the first point, there is credible evidence that young people make smoking deci- sions based on peer acceptance and additional factors other than advertising. In addition, a strong case can be made by relying on abundant evidence establishing that bans on advertising have not reduced underage smoking. Just last month Canada's supreme court overturned a to- bacco ad ban by concluding, in part, that "there was not direct evidence of a scientific nature showing a causal link between advertising bans and decrease in tobacco consumption." This finding-and the evidence supporting it from around the world-will be presented to the U.S. Food & Drug Administration. It will be dev- astating to that agency's attempt to allow solely "text only" ads for tobacco products. The U.S. Supreme Court has ruled that the First Amend- ment requires the government to demonstrate that its regulations against truthful advertising must "directly advance" its goal-in this case-of reducing underage smoking. This it cannot do. The mission of the advertising associations is to protect advertising, not products and services. If we do not stand up against the government in this case, how can we preserve the First Amend- ment right to truthfully advertise other legal products and services? As Advertising Age con- cluded in its Aug. 14 editorial, "there is no choice," Wally Snyder President-CEO, American Advertising Federation Washington It should come as no surprise that we believe your "Back to the ramparts" editorial comments (AA, Aug. 14) on cigarette advertising were much more on the mark than those expressed by Rance Crain in your Oct. 30 issue. Without going into the specifics of this diffi.cult debate, we agree with your earlier observations that there are "far more potent influences on un- derage smoking than advertising" and that the "unmarketing of smoking to teens could be fax more effective than trying to dictate ad content." Still, the truthful advertising of a legal product is being threatened and we will continue to be "product blind" when it comes to our efforts to resist any such initiative. That's why we have fought with equal intensity when government has attempted to impose bans or restrictions on the advertising of alcohol beverages, food products, toys, casinos, "green" products, prescription drugs, etc. Certainly, we do not condone advertising that makes youth the target of advertising for adult products. Further, no representative of our asso- ciation or our industry has ever contended that cigarette advertising "reaches only users of the product." That conclusion suggests a degree of precision in mass media advertising that defies even a rudimentary understanding of the practi- cal limitations of such media. We certainly don't want to see our industry rise or fall with the fortunes of any product. But con- trary'to Mr. Crain's assertion, we believe our in- dustry incurs an infinitely greater risk if we at- tempt to modulate our resistance in accordance with a subjective evaluation of the product in- volved. If the product is legal, then both its pro- ducers and its legal users are entitled under our Constitution to the full benefit of truthful, non- deceptive advertising. 0. Burtch Drake President-CEO, American Association of Advertising Agencies New York I believe Rance Crain has completely misunder- stood the way advertising works for the tobacco industry in his somewhat emotive call for the ad- vertising industry to turn its back on cigarettes. Tobacco advertising unquestionably persuades smokers to maintain loyalty or to switch brands, as the industry'has always claimed, and indeed within any declining market there is every reason for the competing manufacturers to spend what they can afford, within the terms of any local re- strictions, in order to remain in business. But there really is no convincing evidence world-wide that such brand advertising does, or can, stimulate overall demand, and there are plenty of examples of other industry sectors where exactly the same is true. Commercial freedom of choice is important, for us all, and Crain should be supporting the to- bacco industry's stance and that of the advertis- ing trade associations, not denigrating a clear principle. Clive Turner Tobacco Manufacturers' Association London

11ONFeeu sMM Thewrong; , . 4 Dominick -T. Apx entano FDA C,ommissioner David Kessler vwaald have is polificaity impractical at the momerit, so he starts , . The wcpressed intAtt of tlie Food and DrugAd- us believe that ballboards near playgt+aiands and the the crusate with reguleCioas that aim to "1pratect ministnWWs recently propoaWregulatio.ns on-- uae oC cfigarette brand names on '~-shicts (w~hich. the children." And when these-tail, as-th e'Y muef; • . ~ f p~+od>,a;tr isto.~art •". would all ticp~rahibited~underthe,iterv regsilatbne)'the agerny'vvi{1 raturn.vith stmonger t~da okaoent eoruumptlon in Rdugh~y 3 million _ hev~e.created a<teen smoldng epidelnic -Nonaense: tions .nd aterner, ooto+ols. American,javenfies are saiO to smoke and an addi- The marginal increase in: teen smoking recorded. -- But eonti+oia are already a way of life In this : ;r tiond 1 milliori young malea usee smokeless tobao- ' since *1991 is easily svvanipe&by- the longer term Lwws a eb. #slde afl Qf 13~e other diffictilties vwith the =t ~~• ~~ng tobacco sales to minors ~ eadily dmvnward trendt a:e on the books in every state and the, District of - FvA pr+opo8,L can_thmb newsqNlations possW•- listen;ng to the FDA, onc_waad nevver know Columbia. Dozens of _~ . governmental agencies in-.. ~,FDA iopoees sevese new reatrictionson: ~~ of high school sen~swho c2uding the Department of Health andHuman. 4 undke daily has fatlen from more than 28 iuercatt Services, the FederallYade Commission and.the tlie advertising of ~ nader.the mistak~a[ - in' 1977 to Iess t~m 20 pacart in. 1994. Smoldng : Bureau of Alcohol, Tobacco and Fircarm already assumption that- thene ia- a direct relationship be- half a pack or more per day among high schoot police and regulate the industry. Every shate taxes . tw!een-advertising and the decision to begin sk_- eeniors has declined from 17.9 percent in 1975 to ." cigarettea aad-moet: like Coi~nectiaut, hrmp a saks . :~ But there is no-reliable evidence hl the Iltera--- 'approadmatelyll perant today. Yet Kesslerwould "tax on top af the e~Cise ta~r. Cigarettes u+e alreaRly tare- to support. tbis contentio~ and 'plenty of- . prohibit cigarette ve~rdingg machinea arid the distri- :mong •the most tsuoed and regulated pmoducx. In evidrnce to eonVadict-it.~ " • bidion of tobsooo" produc.~ts by'mail -even though America. ' I . - - . 3uvenile sntolw;g acxnalyy incxeased in F'inland thelrt is no evidence that a curtailment of tbese- The FDA has -.invited public oommeat, oo it . after a- eomptete ban-on-tobs~Cco adva~tising. was. - markeng technu~s Would impact teen dgaratte - shontd be toldthat fts Proposed irguiatione vvitl.not implemented in 1978: Nonvaq, which cosnpktiely oonanmption. : :. affect teen-smokirig. but will reduce employtner~t . prohibQted tobaaao adv~ectiing in 1975, has a-high•. '• : The bottom line is that these proposed prohibi- and ineome in.tobacco-related industries. It should er" peroentage of juvehile smokers than does the tiont have little to do with changing cigarette con- aLso. be told that-its oontrived rationale to regtilate United. States. And black teens in the United States, sumption by teenagers. What they 'will-do, howev cigarettes as a medical device is ws phony as a preaumaVy exposed to the same "pmrsuasivd' ad- •- er, is hurt certain advertiaers, promoters of three-dollar bill. Finally it should be told that free- vertisfng as white teeos, have far lower smking sporting evenas„ tobaceo manufacturrxs and their dom and perwasion; not regulation, are the-primar - t'atest ~ • . - employees, and .vendin.g-machine owners, among - ry social values that we choose to pass oti to our -idely acbnowledged, outside of Washing- ' otners. Even more important, they witl enhaam4tic- c-MAren i.- wDtether they-smoke-or not. ton, Aat the decision to- stait using tobacco .prod-- power of- FDA bureaucrats to exercise additional " uc#s is influenced PdY' by cudtuwro, family and control over ' . private markets and lifestyks. And -. Doniinklc T. Ann.npEnq a prufessor oJ . :peer pressare, not eorporate adve=daing: -So ban- - that's what the FDA smoke sawn is really all - ec+mmics,: is on sabbW*4ftom the Unioasitp of z ning brand-name-event sponsorships, or llavdng about HartJo~id in WistJiartfond o C c.,u MOV 121995 ppoachto. rteen smoking cigantte-brand logw oa rat* c,n and driver unf- Mali* no mistake about Jt, the FDA would Ulm .: forms, will-have no snessurabte effect on anyone'r.•to-sevex+*. restrict the aale of all cigardtea in the ' decision to light up Uitd Sthtlh3iI -.. .netaes. Kessler knows ta tota pro~ton ZqBLQTQ%Oz

NOV134 ~ THE COUR(ER-JOURNAL, Wednesday, November 8,1995 Infiuenced by peers Is it advertisements? Do kids smoke because of Joe Camel or the Marlboro Man? Today's media think we're influ- enced by colorful characters playing pool and riding into the sunset. Is that why young smokers inhale? My opinion is no. I am a 14-year- old student at Oldham County Middle School and I am in the 8thgrade. Have the media ever heard of peer pressure? It's been behind marijuana and other drug use for years and years. What does this have to do with cigarettes? The idea is the same with the kids and tobacco. Most of us who smoke do it because our friends do. It's also the older smokers who in- fluence the younger kids.... We have role models and maybe they are smokers, and we will follow their footsteps.... These older smokers influence young smokers by making it look like it tastes good. They don't seem to think it's harmful. It's like fly fishing, the big fish eats a bug off the water, the little fish thuiks that looks good. Zzzzzip, you got one! The votes are in. Many students agree with my thoughts: It's not Joe Camel or the Marlboro Man. It's our moms, dads, brothers and sisters. It's real people, not the cartoon. It's our friends and role models, not cowboys. BRANDON LOUDEN La Grange, Ky. 40031 THE WASHINGTON'POST MONDAY, NOVEMBER 13,1995 Advocacy vs. Advertising Glenn Lammi asserts ["Freedom to Advertise," letters, Oct. 31] that Richard Cohen's op-ed piece ["Tobac- co Hypocrites," Oct. 20] "decrying a tobacco company's advocacy adver- tisements" has "ominous overtones for everyone's constitutional free- doms." However, Mr. Lammi sells the tobacco companies well short when he states that their "commercial speech" is "embraced" by the First Amendment. Advocacy advertisements that urge certain political actions are not "com- mercial speech" at all but pure politi- cal speech regarding lawmaking and government policy. As such, they are entitled to the highest level of First Amendment protection. The govern- ment would have a very high hill to climb if it sought to suppress this type of expression. The counterbalance to this protection is that the media also have freedom of speech. For instance, Mr.•Cohen could point out the horri- ble significance of a tobacco company spending an enormous sum of money to warn us about government not having its priorities right. Unlike political expression, com- mercial speech is not "embraced" by the First Amendment, as Mr. Lammi asserts. Although it enjoys limited protection, the Supreme Court has long recognized that commercial speakers enjoy a much lower thresh- old of protection than political, reli- gious or artistic speakers. If Mr. Lam- mi means to extend unlimited protection to this type of expression, he has erred. The First Amendment unequivocally does not safeguard the ability of tobacco corporations to en- gage in harmful advertising for the purpose of selling a product, such as using Joe Camel cartoon characters to sell cigarettes to children. FRANK BIRCHFIELD Alexandria NEWARK STAR LEDGER SATURDAY NOVEMBER 11, Good Riddance, Joe , The folks at R.J. Reynolds Tobacco Co. must be feeling the heat. They've decided to decommission Joe Camel, the suave cartoon pitchman whom critics have charged was part of a campaign to target under- age smokers. The North Carolina tobacco giant plans to re- move Joe Camel from its billboard advertising at least through the end of the year, but it could be the begin- ning of the end for the cool dromedary with the Inde- scribable looks, Anti-smoking advocates have attacked the smooth Joe Camel persona as too appealing to child-, ren, an argument Reynolds continues to reject. It will keep Joe in print advertisements and promotional materials, a spokesman said, adding that it would be wrong to read into the billboard decision "any intent to walk away from Joe Camel." But clear-eyed observers don't believe that for a minute. The Joe Camel campaign was a powerful suc- cess, and one eritic said it's clear that "the heat they were taking on the underage smoking issue is the real reason they did it." Let's hope we've seen the last of Joe Camel's presence on the billboards along American roads. Now let's focus our efforts on eliminating those other nefarious ploys used by the tobacco industry to entice youngsters into picking up a nasty and harmful habit. 199 5

-16- NEWARK STAR LEDGER MONDAY NOVEMBER 13, 1:995 HeIpin~Tkids , . see srr~ok~• ~n . g in ' , a new light• :- .. Not long ago u:ter Bill Clinton an- nounced some efforts to discourage children' from smoking, one of the ci arette com a- nies started ruaning -page a verwse- "i'iM asking whether you wanted the deci- sion about yout child and cigarettes made by you or some feceral bureaucrat. The ada were dominated • by a huge, menacing photograph of what the nicotine.e pushers were presenting as th4' bureaucrat'• from hell - a beei~ slob of the sort that used to be seen in the nwvies as the corrupt polit-" ieal boss. It occurred to me that the previoits' time I'd seen nearly an entire page devoted, to photographic treatment of the bu-~ reaucracy was during the coverage of the- Oklahoma City bombing. Some newspapers.' rsn a page of photographs of the vfctims • -most of the adult victims could be accu- rately described as federal bureaucrats -and, to the best of my memory, none of • them looked at all like the bureaucrat in the.; cigarette ad. Whatever these ads say abontr who should not be involved in the decision on whether or not children smoke, it's clear what the cigarette companies believe abou( who should be the principal decision makeG; Joe CameL - - Another confirmation of that has noar' been provided. A study was done on how the - subject of smoking was handled by the ~ Weekly Reader, ane of the two principal magazines for grade-school children, during a period when Its owner, the Wall Stree¢ti money-4ddiing fiim of Kohlberg Kravis Rob= , erts &.Co., was also the principal owner of RJR Nabisco. ; Although its;current name makes RJR~ Nabisco sound like a bowl of cereal, it is i cigarette manufacturer 'whose original ap-.• peal to KKR was summed up in the• book ~ "Barbatiam at the Gate" in one simple' statement by a ftnancier who was not involved iu the deal• It makes a product that costs a penny to make and sells for a dollar and is addictive. ten tor umigbt e-~cboo~`i clw~dren w s~e"nc US "-4N HERAI.D a strong antl-anoking vkw. • . Guess again. Accordia` to the 1Vashing- ton Poat, this study - recentty prexnted at a Public Health Association meeting by Its lead researcher, Stanton Cilontz, a medical professor at the University of California-San Francisco. =.shops that '68 percent of the. Weekly's articles on smoking Included the tobacco industry's views while only 38 per, .cent carried a clear message against smok- ~° . : Statistics for the Weekly's competition, Scholastic T1ews, were the reverse - only 32 perce.ct of S,rie articles carried the industry's views and 79 percent included an anti-smok- ing message. Not only that: The Weekly Readec's statistics were similar to those of ScholastSc. News before. It was bought by Bohlberg Kravis Roberts & Co. Surprise, surprtse, Aqybodq who has followed the fortunei of the to'bacco-indtutry In Congress recently : should be able to predict what sort of rewafd ' Dr. t3lantz, who was working under . t Na= tbnal Cancer Institute grant, recetved for . mtldng this fascinating analysis. According to the,Post, "Rep. John Edward Porter (R- DL), , chairman of a House Appropriations subcommittee, persuaded the panel to adopt language cuttinj off the grant." A spokesman for Porter told the Post that the N&tional Cancer Institute should 'not be fun3ing "political social science." The fact that the tobacco Industry is now one of the principal supporters of the Republican puty, is notpolitic,al, of course; It's financial • In fact, all of this is financial. With all the talk of bureaucrats and individual free= donl pnd worldng thtngs out, this comes down to a simple marketing fact: All studies show that if potential customers of the to-. bacco industry don't get hooked before ;a •certain age, they, tend not to become, cus- tomers at all. So who should decide about whether they smoke? During the period of, the study, Joe Camel showed up in the Weekly Reader eight times. - _ CAlvtn TrilUrn is t New Yorlr-bssed colam- aist. . .. . . NOV1310 NOY 2 3 1995 Don' Fede:r shod • be .ooa- grstulited on his support of government - . involvement ; to reduc~e smoking b•y young peo- ple ("Teens:raoke gets inn their eyes," Oct. 25). " , . . He'e-right.~•This Is.' not 'a Repulilican, D'emocratic, con-. servat.ive,or liberal issue: It'ts a children's issue: Nearly •all • srnokers'beoome addicted as teenagers, witlt -tremendous' imp ta on their health snd on. hea,ith-cire costs-`:. : Food :and DruQ Adminis- tratlon propoasls. to regulate tobacco .products to those• under.l8 deserve the support of everyone. . By reducing access to ciga- rettes :and. reducing their ap- pea.l -• banning: outdoor ad- •vertisana' near echoo}s, restrictinp advertlsinq in.' .: youth - publicationi,~rQhtbit= : iag, the gixaWSy. o toliecco•• •bra,rid productaand.fundinga ;public education campaign -" the' RDA's - proposals would protect children. : -Douglas ,Tohnson, Boston

-17- NEWARK STAR LEDGER SATURDAY NOVEMBER 11, t995 Flemington council puts off ban on underagesmoking in public ByTEfiR[ P. GUESS -'• A scheduled vote by the Fleming- ton Borough Council on a is r,~ola~g ban for minors will be delayed as the ordi• nance Is refined to include educational programs, Mayor Austin Kutscher yesterday said the council will hold a heartng Monday and then direct an ordinance toward educating children about the Ws of smoking and possibly punishing those who sell cigarettes to them. Last month, Kutscher, a cardio• logist familiar with the damaging ef- fects of smoking, proposed an ordi- nance that would make It illegal for anyone under ! 8 to smoke in public. If adopted, the code would be the first of its kind In New Jersey. Penalties would have been a $25 fine and one day of community service for the tlrst offense and double that for a second violation. Fines for a third or SACRAM E~~3Ta BEE Anti-:rnoklag Nmpa R e'Tobacco anares,' editorial, Oct. 29: The John Pierce study referred to compares the effects of tobaccxa•com• pany advertising of the 1920s to pres- ent day. However, it doesn't make any assessments of the effects of.today's anti-tobacco advertising on curbing , teenage smokers. ': Tobacco has been banned from televi- .ion and radio, while anti-tobacco ad- vertisement: have had a freir• ride for years. Every day we read stories attack• in Phili Morris or RJ. Re molds. Cal• ifornia smo ers ave been pa ing millions in additional taxes. that ~ave gone into organizations to fight smok• ing, and atill a new generation of smok- ers emerges. Via subsequent offense would have ranged from $100 to $500, plus five days of com- munity service. Kutshcer said the council is in tUli support of a ban on teenage smoking, but that it has been working with vari- ous anti-tobacco groups to come up with a measure that also will focus on educational aspects, rather than just punishment. It should include courses on smoking and the dangers associated with the habit, the mayor said. "We're also working with them to see how effective the ordinance is, and to do some surveys both before and after" it is adopted. . The mayor said he also would like to coordinate efforts with the school system, which prohibits smoking on school grounds. "We want the department of health to have the ability to go after people who sell cigarettes, and we want to make it clear that it's not just teens at fault, but also people who sell or give cigarettes to ldds, and the tobacco In- dustry itself. "What we want to do is give a more specidc indication of what we would like the juvenile courts to do." Kutscher said the refined ordi- nance would be similar to the one that governs teenagers caught drinking al• cohol. It calls for notiBcatton of the par- ents and requiring the youngster to participate in educational programs. "The fines we are thinking about would be to pay for any expenses for education. That would be the sole pur- pose of the Hne," said the mayor, who added the fine structure is being re- evaluated, "We would hope to have the teens exposed to patients with bad lungs as part of the course, so they could see the effects" of smoking, he said. I@MI 11 1995 The editorial concluded that "the to- bacco companies are the problem:' The tobacco companies are providing a legal commodity. A tobacco company repre- sentative wasn't the one who taught me how to smoke my first cigarette. The problem is in the home and the circle of friends kids keep. The reapon- aibility is atill with parenta and- the kids. The tobacco companies are the media bogyman, an easy explanation to a more complex problem. If you are go- ing to examine teen smoking honestly, also look into the success or lack of auF cess, of the raillions poured into anti- emoking campaikns. . Julio C. Calderon Qrangsvale

-i8- NOV 1 3 &5 After decades of lying about addiction and disease, tobacco companies have launched a last-ditch scheme to continue marketing to kids: flood Congress with cash. During the first half of 1995, tobacco industry contributions to political parties skyrocketed more than 400:percent. Tobacco companies gave more than $1.6 million ($1.5 million to Republicans), becoming the GOP's largest donor by far. Why the sudden surge? President Clinton and Members of Congress from both parties are backing new limits on tobacco marketing to kids-limits that could save thousands of children from addiction, disease and death. Tobacco companies are desperately trying to buy opposition. Voters want Congress to say no to the tobacco industry. More than 85 percent say Congress should support the administration's effort to protect children. Write your Members of Congress today (U.S. Senate, Washington, DC 20510; U.S. House of Representatives, Washington, DC 20515). Tell them America's children aren't for sale. To learn more, call 1-800-284-KIDS. CArtvAi6N (ovTOACCO-FREE sKICs This ad sponsored by the Congress of National Black Churches; American Academy of Family Physicians; National Association of Elementary School Principals; Catholic Health Association; InterHealth/Protestant Health Alliance; National Association of County and City Health Officials; National Association of Evangelicals; American Public ; Health Association; General Board of Church and Society of the United Methodist Church; Secondhand Smoke • Awareness Program, National Medical Association; and NETWORK: A National Catholic Social Justice Lobby.

WASHINGTON TIM Forewarned about drugs Q,,, n~my ohaniatt, I thinlt ~~a1co- aad CUM YOU SOU'4 Y13U canY stop e++est thottgh ittb tuting yott, If sorneane asiaed you if you vvould take ~it~t h and smolse it, what you do> If you take that chance, e' i 9~5de.'~` le `di~ aw that sa~okireE aadwing tobacco could be very barmful to your tung9, mouth and affect your brain by polluting your Peovle wbo smoked ut the 1950a system.couldn't tmderstand how bad smoking could be for them and how it could also affect the health of the people around them. We now know that secondhand smoking can kill people on the atreet, In a restaurant, at your work- place, aaywhere - even in your own house. It can also badly affect the babies of pregaa t mothers who smoke, causing low birth weight and problems. Anybody can get Into alcohol once they've started..If anyone in your family drinks a lot, youve probably ex enced bad times because of it. alcohol may hurt alr.oholics by RllinQ their liver with poisons that can lead to the destruction of their liver and even death. Victima of alcohol can also MOV 1 t u5 be people who have been in crash- es on the road because of drunk dri• verc, the young people tqsztptedby the drtnker: to start, and the famf• tles of dritikers. Drugs to sotme people are just n'ledicines yai find at the pharma- cy or medicine your doctor you. It's,not jturt that to drug desl- era. Thetr,job ia to eacoura:ge young people to take drugs unnecessarily. This ia how drug dealers make a lot of money. When drug dealefs sell druEs, they don't care who diea. They only cane that they~et money. This caa lead to the addiction of small childt,~ett la.d otbers. Like eny other tetnpting household toy that Y~ can't Qct ersough of, drugs seem hnrrnless and ltut in the beginning. When you start getting the urge to do drugs regularly, It can destroy yourse ~, 3"our fadilly~ and anyone elseyou have contact with. When cigarettes, alcohol and .drugs gat inyour way, you haw to make a Eood decision and walk away. Don't be tempted m- you may be in !br a ride you didn'texpect. It~ lihe a rollercoaster with no belt and no wa~ off. Ybu are in danger of addtct~ori which can cause you to steal nsoney, kill people for wallets, • sell drtrga, deatroy your body, your li fe and tlx lives of anybody around you. Theae three are like a p" that sweeps the nation, ~t~~~t ~nt~ t~ ~~ bitbybit. • JIN SUN YOKO'Ir<1, age 11 November A. 1995 VJLLAGg YDICE -19- Show World Fashion Seyvesat Seventh on Sixth ext to football hooligans, the fashion pack probably ranks among the gnarliest groups on the planet. After four weeks of hauling their Prada bags from Milan to Paris to London to New York to N watch models swivel in no few•er than 250,000 garments, they've developed advanced cases of stiletto elbow and some pretty ugly hip-check technique. One possible source of backstage fnra.lc is nicotine withdrawal. Not even the Japanese smoke more than fashion models, who often behave as if Marlboros were a form of life supvort. "I'vegor to have a cigarettc," Michelle Hicks gasps, standing on a conga line of models waiting for the Ghost show to begin. Model Emma Balfour hands Hicks a butt, which she drags on so hard a bystander is put in mind of Richard Pryor's crack about the way his grandmother could suck a chickcn bone. I-Ecks grinds the butt out baKath her patent-leather heel, then disappears to do her turn on the catwalk. Seconds later she's whipping around backstage again, "daperau for a dgarette." NoV 13 95- ORANGE COUNTY REGISTER NOV 10 1995 LfluEFLY Study: Smokers show traits of dependence People whu sMoke ciearrttes show symptoms of depcndence' similar to those seen in coi:aine• ueers, federal health officials said Thursd.y. The Centers for Disease Con• trol and Prevention said ciga- rctte y TL6" S are taurr likely to report symptoms of depen- dence than peoplc who drink al- cohol or Amoke marijuana ev ery day. "Among daily users, .mokers ancd cocaine users tiVCre nioSt 1lkely to report that they were unable to cut down tbe amount that they uscd," said Dr. Mi- chael ErTksen, director of tlte CDC's Office on Stttoking and Health. The CDC said asut'vcy of more than 61,00 people found that 79.G percent of daily ciga- rette amokers said they were unable to reduce their con- sumption. Among daily cocaine users, 66 percent said they could not cut back. 'Almost 91 percent of daily cigarette smokrry reported at least one symptom of deprn• dene, such as being unable to cut down, feeling dependant, wanting to consume more or feeling sick when they stopped. The figure was 78.9 percent for daliy cocaine uvers, 59.8 per- cent for those who smoked nnar• ijuana every day and 48.1 per- cent for daily drinkers. 0 l

-20- WATTtE TIMES NOY 1 0 10 o ;... c9npiaint against state And-smohin ort accused of Iob '. n g~ f ~ g BY KERY MIIRAKAM! ~ 414k "They're coming after us beeause the suc- S+atW Ti»us 0tympia burezu cess we ve been having hits them in the The •obacco indus has taken aim at a pocketbook," said Bob Jaffe, former presi- state anti-smo program as part of a dent of Tobacco Free Washington. campaign it is waging against similar pro- ' The 425-page cadnpiaint ~rat based on giams around the country, thousands of pages of state Health Depart- Stuart Cloud, owner of a chain of smoke ment records Cloud received through public- shops around Seattle, filed a Public Disclo- disdosure requests. White the raquests were sure Commission complaint yesterday, say- filed under Cloud's name, and a news release ing the Project ASSIST has improperly used yesterday declared, "Small Businessmaa tax dollars to lobby for tougher anti-smoking Files Complaint with the Public Discjosure regulations: Coaamission;" tobacco interests au heavity Anti-smoking activists denied the allega- involved in the effoit tion and said the tobacco industry is attempt- The requests uld the PVC eomplaint ing to hinder effqrts to reduce Id i were prepared by the Seattle lawfuna Byrnes , & Keller.l'he finn was paid partly by'Cloud and partly by the Tobacco InSftute, an industry group. Press contacts were oootdinated by a oompoay Meroer Island . public-relations hired by the Tobacco Inatitute- Cloud said the complaint was his idea, but that he asked the Tobacco inatitute for help. However, the institute has'been involved in simi7ar complaints in otbet statea NicJri McCraw, the attorney repreaeating Cloud, acicuowiedged that Ted Tsimpa, a Colorido attorney, helped evaluate the docu- ments. Trimpa works for a Deaver law frm that lobbies in Colorado for the tobaooo industry and filed a complaint against Pruject ASSIST there as well. Snip Young, the Colorado health depart- ment's director of prevention pRoQrams, said acco Institute NOV 1 3 89 there, too, the Tobaco Institute swamped the state health depapnent with requests fot• documents abcut: tt1G., program. Subsequent- ly, it accused the state Health deparranetst oE impraperly advocatir~g for a tax increase on On~mplaitdr fd~ed' irt federal court was thrown out. A; ' bon4pWnt filed with the Colorado se~'etu~:~f atate's office N, jawd- , ingCloud's : comp ~i~intµ zavotvee ',Fro}ect •ASSIST, fundet[' `by the National Cancer Institute and managed by health departments in 17 st2tes. The money is supposed to be used for things stf:r, as reducing access to tobacco by youths, limiting tobacco pronao- tions, eliminating second-hand smoke and increasing econom? c dismcentives for tobac- co products. The n.hney, however, may not be used for lobbying, The complaint accuses Tobacm`. Free Washington, funded, almost entirely 'by $7 million in ASSIST funds, of 'lobbying for tougher tawa . and a state policy , agtinst smoking in the worlrplace. The complaint points to the group'i 1M action plan, which called foc setting up contacts with key rtate legitlaton., . Jaffe, who was president of Tobiooa pYee • Waslungton at the time, denied any' lobbying took place. "There were discussions, and some of those ideas carne up. But we never implemented the plan bepuse we realized it would be improper," he said. Instead, the organization does other kinds of advocacy work, such as writing letters, to the editor and organizing protests in amoking sectiona of restaurintM he said. 0 cn ~ LR V 07 o~ 00

-21- November 14, 1995 VILLACE VOICE The Sell Nicoteen Meets the Memoboro Man at the Tombstone Ad NOV131~9ti Cigarettes, Death, &Taxes BY LESLIE SAVAN ome of you probably noticed the odd placement three weeks ago of a full-page ad for Moonlight Tobac- co Co.: it faced my column, which smoked Moonlight for, among other things, not mentioning its R. J. Reynolds parentage. The placement was an accident-the computer did it! (Ad pages are assigned by computer and not necessarily checked for opposing ideas on opposite pages.) But, ad clout be- ing what it is, you're no more likely to see a repeat this week than you are to see ciga- rette ads that feature black lungs. "Every cigarette account we have called us very up- set;" says ti'oice ad director Kathy Thornton, but so far not even RJRhas pulled its very substantial buy, including the weekly "Camel Page" of club listings. Anyway, RJR has bigger embarrass- ments to dodge. Like the recently revealed 1973 and 1976 in-house memos that urge the creation of new cigarette brands for "the pre-smoker or `learner; " "the 14-to- 18-vear group." The psychographically sor- did marketing plan could have been drafted 'today: ". ..[a] new brand aimed at the young smoker must somehow become the `in' brand and its promotion should em- phasize togetherness, belonging and group acceptance, while at the same time empha- sizing individuality and `doing one's own rhing....... The memo adds poignantly, "The fragile, developing self-image of the young person needs all of the support and enhancement it can get." RJRsays it never acted on the suggestions, but Joe Camel et al. eventually accomplished the same goal: adolescents are twice as likely as adults to smoke the most advertised brands-Camel, Marlboro, and Newport-according to a government studv. Another RJR memo, from 1972, con- firms that tobacco's titans have long consid- ered nicoteen, uh, nicotine to be exactly the addictive drug that the industry now swears under oath that it is not: `°Tobacco products, uniquely, contain and deliver nicotine, a potent drug with a varietv of WHO SHOULD BE RESPONSIBLE FOR YOUR CHILDREN, A BUREAUCRAT OR YOU? AI~A~ no.~.UV F+~mf MR.~'icq w.nu m vi ~n«..rrc u..ro.,. n,.o.ueu ro. ow~~y d.i~M..^ Y. d. a..r.~4 nrs Y..rrn4 ~nww ~c~dm: a.uv, pv~ L.q. M. e ~~~ow~M n. b~rtnt.we...qW H.oY~ ~L^.n. b Rwb.url..r. w Wkn-pee~.na s.[ u.~A wi.. Mr x.. wbrmr a.e.u b tilx.r~ds rwc.b R. J. Reynolds portrays its opposition. physiological effects.. . . Nicotine is known to be a habit-forming alkaloid.... Thus a tobacco product is, in essence, a ve- hicle for delivery of nicotine. . . . " Yet an- other document, this time from Brown & Williamson Tobacco in 1991, explains how cigarette companies add ammonia to boost nicotine's impact; a'92 B&W report asserts about its Philip Morris competition: "Am- monia technology is critical to the Marl- borro character, taste and delivery." =ese menacing memos were coming to light, a second former Marlboro Man, David McLean, died c f lung cancer. It's useiiil to keep such details in mind . when weighing what to actually do and whom to support amid the storm of pro- posals and counterproposals that make up the Politix (as one Moonlight brand is named) of cigarette advertising. I must admit, Pve avoided thinking too hard about FDA and congressional pioposals for fear that any ad restrictions would butt up against sticky questions of free speech-or, worse, butt up against the popular cultural-renegade stance that would tar ad restrictors (like me) as p.c., bureaucratic killjoys. Smoky ambivalence seems so much cooler. It's easy to be cynical about the tobacco companies (the renegade stance, in fact, requires cynicism), but to support strong actions against their adver- tising can make one seem like quite the goody two-shoes. Of course, the $6 billion spent annually on tobacco advertising and promotion reinforces such social fears. Re- cent RJR ads have portrayed antismoking forces as fat old men who crave Big Gov- ernment (over the headline "Who Should Be Responsible for Your Children, a Bu- reaucrat or You?") and as.LAPD-style cops (the "Federal Anti-Smoking Police" hand- ctiff'a middle-class white guy). But considering that commercial free speech has never enjoyed the same protec- nons as political speech and that smokers are not really the next Randy Weaver, Pve come to a conelusion: Let's go, FDA! Let's go, doomed Senate bills! Tax the ads to death! Or cripple them. The Clinton-backed, teenage-targeted FDA proposals would de- clare cigarettes a drug-delivery device and would: ban tobacco billboards within 1000 feet of schools; allow only "tombstone" ads (black-and-white, text-only ads) for all out- door and in-store advertising as well as for pybiications that have at least 15 per cent of their readers under age 18; prohibit 's~.it7t"s(a) ~

-22- !C~orq`~ vending-machine and mail-order sales; end brand-name sponsorship of sporting events; and zap give- aways of gear that carry tobacco lo- gos. This would pretty much leave publications with primarily adult readers as the only place to find ciga- rette ads as we know them today. Depending on how the rules finally shake out, the Voice, for instance, might have to bury its Camel Page under tombstones. (Of course, the Voice could decide to refuse cigarette ads in the first place, as have some daily newspapers.) These tough proposals may be softened by the time they leave the public-comment stage, now extend- ed to January 2. The FDA already faces major lawsuits by the cigarette companies and advertising organiza- tions, not to mention a counterpro- posal by Senator Wendell Ford (D- KY). It would prohibit the FDA from regulating tobacco at all and would substitute watered-down re- strictions on underage cigarette mar- keting, the one issue over wtuch even tobacco-state diehards mustn't look too mercantile. Nevertheless, the tobacco and advertising industries are gasping for more ad breath, and their ritual invocations of free speech and slip- pery slopes have become louder and angrier. "The sweeping regulations proposed by FDA demonstrate that agency's complete disregard for the First Amendment," says John Fithian, counsel to the Freedom To Advertise Coalition, a group of advertising organizations that have filed suit against the FDA. Harold Shoup of the American Association ofAd- vertising Agencies, part of the coalition, adds, "We are concerned about the rights of marketers to advertise legal products and the precedent this would set for other `po- litically incorrect' but legal products." But it's not as if all legal products were ad-regulation-free. In most cases, ads for securities exchanges may appear only as ! i•t ,'4 they write [a prohibition on such a ban] in- to the law? We could go with that." 4r'•"''.'Gi1&the #'amous tf~ufc=tfiat`''Fr~ti -'" ~ ing kills 419,000 Americans a year, more than most other bad things combined (car accidents, homicides, suicides, alcohol, heroin, cocaine, crack, fires, and AIDS) - don't cigarettes deserve ad regulations a bit stricter than they currently have? Basically, the rules are: Don't advertise on TV (except in plain sight as sporting event sponsors), run the token surgeon general's warning, and claim to hold reverent the undustry~s 1964 voluntary code, which includes such often violat- ed commandments as "Cigarette advertising shall not suggest that smoking is essential to social prominence ... or sexual attraction.. . ." Still, the FDA proposals are constitutional- ly up for grabs. `°Ihe Supreme Court has pro- tected commercial speech less than political speech," says Paul Rothstein, a Supreme Court scholar at Georgetown University. "It has al- lowed restrictions on advertising. You can regu- late where billboards are allowed. There are re- stricaions on the advertising of alcoholic beverages in many states" But the Court tends to tun each case through a four-part obstacle course to determine whether commercial speech may be limited: the speech must concern lawfiil activity and not be misleading; the proposed limitations on that speech must have a substan- tial government interest, direcxly advance the government's interest, and be no more extensive than necessary to serve that interest. Under such criteria, "the FDA proposals could probably fly sf it can be shown that they're very narrowly drawn to target ads directed at children," says Rothstein. "Ihough in today's world, that's a pretty difficult task." Well, yeah, kinda There may be surer ways to pass constitu- tional muster while still discouraging cigarette advertising. Yes, taxes. Proposals for excise taxes on cigarette sales are perennial, but the more in- teresting angle would eliminate the tax de- ductibility for the advertising and promotion of tobacco products. Bill Clinton said he was stir- prised to hearofsuch an innovative approach when Tabitha Soren suggested it to him on MT`k; hut actuallv senators Harkin and Bradley have cosponsored such bills in'91,'93, and this year. Permitting deductions "allows almost $2 billion in subsidics in the torm of tax breaks for tobacco advcrtising;' Harkin said last March. "How can wc: talk about wclfarc rcfi~nn and cut- ting school lunch programs when we're subsi- dizung tobacco companies?" An RJR spokesman argues, "Everyother producer of a legal consumer product has the right to deduct advertising costs as a business expense. Why shouldn't we?" The answer, of course, lies in the danger of the product. "Congress has the power to deny tax deductions for harmful produccs;'says Roth- stein. And compared to a probably protracted court battle over the FDA proposals, "Tax de- ductibility may be the safer way to go," he says- tombstones, while most prescription phar- maceutical ads must provide extensive warnings and a summary of side effects, contraindications, and effectiveness. "Why shouldn't tobacco-a product that has no positive effects on health-be held to at least the same advertising standards as phar- maceuticals?" asks Scott Ballin, chair of the Coalition on Smoking OR Health, which has been instrumental in pushing for FDA authority over tobacco. `°11iis rhetoric that tobacco advertising restrictions are somehow a slippery slope that will lead to the banning of caffeine or foods that have fat in them is ludicrous" Ballin says. "Foods are already subject to FDA regulation for safety, labeling, chemical additives, and marketing. But the cigarette industry is not required to list what's in its products.... If they're so concerned about the FDA banning their product, why don't 1C,._-ituf though tobacco forces might still argue in court that it's a disincentive to exercising their free speech. (Another wav to over- come the charge that such legislation un- fairly singles out tobacco is to end or limit deductions for the advertising ofall prcxi- ucts, an idea that alnxost became law in several states only to be txaten back by an apoplectic ad lobby crying, "11ie sky is falling!") Even if tlu tax tactics could stand up to constitutional challenges, they'd never survive a Gingrich Congress in the first place. "Congress's so-called health committees have been a graveyard for tobacco control legislation over the years," says Joe Marx of the Coalition on Smoking OR Health. So don't hold your breath waiting for a major retreat of cigarette ads. By the time the FDA's proposals have gone through the courts, Clinton could lose reelection (or just change his mind), FIDA chief David Kessler could be out, and the chance of any change at all could go the way of health care reform. S o don't cry for Philip Morris, America. Even if traditional cigarette advertising were styniied„PM has a database with the names and addresses of at least 26 million smokers, to whom they can ply more product and then pluck for "grassroots" support when pressure must be applied. (Of the 40)000 letters of comment piling up at the FDA, 30,000 are form letters.) Phili Morris~ is also distributing a CD ROM-base3 game to bars- players match images from Marlboro's ad cam- Paign, promotional materi ,saT-an37arlboro Gear catalog. (This is what real Marlboro men do nowadays.) 'Me game is part of a program, . +r, nt'd; ra O u Cs r+ t.q 4 t>z -.~ ~

-a 3- '~ N0V 13 "Marlboro Unlimited," thatAdAge says "may be one of the largest marketing efforts in pack- age-goods histot)•." Marlboro Unlimited will peak in a sweepstakes, offering (a millennial) "2000 people a tour of Mirlhnrn rrninn,,in a specially designed train;" where, free from Belt- way bureaucrats, they c.vi hrestunably smoke till they croak. ' At the same time, Philip Mcrrris and RJR are both promoting :uttiunderagc smoking cam- paigns. Philip Morris's Artion Against Access" attempts to dissuade stores from selling cigs to minors (thciugh Minnesota's attotneygener.il re- a:ntly charged that I M's l,iromise to penalize re- tailers convicted of such sales "was made without any plan for serious implementation"). And even as its past youth-market ploys cQme to light, RJR continues to hype its pro- gram, "Right Decisions, Right Now" (resonat- ing pleasantly with die Coors slogan "It's the right beer now"). One Right Right school poster shows two kids sneaking a smoke in the restroom with the headline, "AND YoUTI11NK THIS LOOKS COOL?" Well, yeah, maybe luke- wami cool. Right Decisions is meant "to ad- dress the central issue of peer intluenccn Adver- tising influence is never mentioned, but a paper in die Journal of the National Cancer Institute last month reports that 12- and 13-year-old kids are much more likely to be influenced to smoke by cigarette ads and gift-fraught promos than they are by pressure from peers and family members. Apparently, Right Decisions, launched in 1991, hasn't helped many kids make them. Between 1991 and 1994, according to the Centers for Disease Control, the preva- lence of smoking among eighth graders rose 30 per cent (a period that also saw the rise of RJILs phallic phenom, Joe Camel). Reality is sounding way too much like Thank You fvr Smoking, the hilarious Christopher Buckley novel, in which top tobacco flack Nick Naylor dreams up a teenage antismoking campaign-not to discourage their smoking, but to get the do-gooders off his back. When his adman, Sven, devises a hard-hitting campaign that threatens to be effective, Nick tells him to replace it with "a turkey. It's going to have to gobble, or my people aren't going to go for it:" After swallowing his creative pride, Sven unveils the new line: "Everything Your Parents Told You About Smoking Is Right." "You know what I love about it?" Sven said. "Its dullness.... And yet," Sven said, "its brilliance, if I may say so, is in its deconstructability" "How's that?" [Nick asked.] "Say the last three words out loud:' " `Smoking Is Right: " `°Ihis Looks Cool:' You don't have to be p.c. to want to stop promoting a drug in ways that are false. Cigarettes themselves are not evil (except maybe when they contain am- monia); what is, is the Ge multiplied millions of times that says smoking is right. There is something gluttonous about advertising an addictive substance. It double-dips into our psyche: It pushes something that is addictive as if it weren't and it does so through a ptocess-advertising-whose life calling is to addict us to any and all products. + Reuarrh assistance: Cl»iscine Orxskavicli and Seeta Gangadharan THE NEW YORK TIMES METRO SUNDAY, NOVEMBER 12, C I T Y SmokingStudy: Law Keeping Some Home By EDWIN McDOWELL Smokers are dining out less be- cause of the new restrictions they face in New York City restaurants, but nonsmokers are eating out more, a Cornell University study has found. Nearly 40 percent of the smokers surveyed in Manhattan said they were dining out less,often, largely because of the law, and a similar percentage said they were taking less time to dine, often skipping des- sert or after-dinner drinks. Nonsmokers, however, who made up about 65 percent of those sur- veyed, are dining out 17 percent more often, the study found. It was not clear how much of that increase could be attributed to the smoking restrictions, which went into effect in April. The Smoke-Free Air Act, as the law is called, prohibits smoking in all restaurants with indoor seating for 35 people or more, unless separate rooms are available to smokers. In the study, 5 percent of the smok- ers said they were eating out more often and 37 percent less often. Of nonsmokers, 17 percent said they were dining out more often and 2 percent less often. 1995 Even though the smokers sur- veyed are dining out less than be- fore, they still eat out more often than nonsmokers (6.6 meals a week compared with 5.6) and spend $133.24 a week compared with $111.45 for the nonsmokers: But be- cause nonsmokers make up almost three-quarters of the population na- tionwide, they spend almost two and a half times as much in restaurants as smokers do. The study, financed by the Center for Hospitality Research at Cornell's School of Hotel Administration, polled 134 smokers and 255 non- smokers in August at 19 Manhattan restaurants. The restaurants were Sammy's Famous Roumanian, Chin-Chin, the Assembly Steak House, La Petite Auberge, La Ripaille, Bon 75 Restau- rant, Umberto's, Sequoia, Three De- grees North, the Hard Rock Cafe, Square Rigger Pub, New World Grill, La Parisienne, Rose of India, the Blarney Stone, Le Figaro, Mac- Menamin's, Rathbones and the Pas- qua Coffee Bar.

-24- BosroN GLOSE NOV 111995 Smoking-ban,sthdy sees econoniic gain By Frank Phillips That claim was strongly disputed GLOBESTAFF by some restaurant owners who say -~- their sales have dropped dramatical- Brookline restauisnts haven't ly since the ban went into effect in lost business as a result of the July 1994. They contend that the town's first-in-tbe-state -sm~-,ol-d-n~n state-funded report is tainted be- ban in eateries and bars+ b°stion cause it was undertaken with the University researchers conclude -' goal of justifying the smoking ban. in a gtUdy Q~at some believe could "That ie just absolutely not the snuff out one of the strongest ar- case; [receiptsl are down big time," gumentr agAinst such bylawa said Bruce Potter, director of inem- Indeed, the study snggestsJ" bership services for the Massachu- that Brookline.restai,ii'r`ant re- setts ReatavxantAssociation. cei~ts.__at-?"east in the more up- acale establishments - may have gotten a boost from out-of-town diners dropping in to savor not just food, hL1t smoke-free air, too. "Our analysis of meals and sales tax data clearly sbows that the Brookline smoldng, ban did" not have an immodfatC.~adverse im,FacC•on xestaurant business," concluded the researchers, who conducted the study under co47.- tract to'the s,t$te. Depaftirient of .~blie treal~th, which has been conducting a vigorous antismok- ing campaign. The report, ob- tained by the Clobe, ia slated to be released Monday. • - SMOKING. BAN, Page 16 Potter said his association's members In Brookline ran prove that their sales have nose-dived. He said that some restaurants, such as China Sails and Ciro's, went out of business In large part because of the bylaw. "Thia data is tainted in the way they already had a preconceived goal," Potter said. "1 could use any set figures and have them say what I want them to say." Nevertheless, by comparing meals tsx receipts before and after the ban went into effect, the BU re- searchers say they came to a differ- ent conclusion that of Potter's. Townwide, they found a slight in- czease in meals tax receipts over the period just prior to the ban. The atudy doesn't rule out the possibility that sorne restaurants lost `Z`hfs data Is t*ted In the way they Allready had a preconceived goal: BRUCE POTTER Mamchusetla Restaurana Awcw'wn business after the ban, tfut even in restaurants that serve alcohol, where the ban was expected to have the most impact, there was no de- cline in receipts, the report says. In fact, those establishments saw a 5 percent growth in receipts between 1993 and 1984, after falling 2 to 3 percent between 1992 and 199'3. While Brookline saw its receipts go up In the months following the ban compared to the same period in 1992, restaurants In surrounding communities - Boston, Cambridge, Newton and Watertown -loet busi- ness during that period. New customers drawn by the promise of smoke-free dining may explain some of the increase, the re- searchers said. _ "This suggests that there may have been a border-crossing effect resulting from patrons of Cambridge restaurants choosing to dine in Brookline's imoke-tree environ- ment," the study states. . But for Roger Whiteomb, man- ager of the. Village Smoke House, the ban has decimated his establis- ment's liquor business. "Monday football used to be the best nights at the bar; but since the ban, we don't get one eustomer at the bar," Whitcomb said. "When the Patriots played Monday night, the iirst time in 12 yeara, not one cus- tomer showed up. We closed early " Whitcomb said the dining room wasn't hurt by the ban. "We never had any probiem with the dining room. Just give us the bax," he said. Potter said the rising meall tax receipts cited in the BU study may reflect the fact that the restaurants whose business rose are more ex pensive establishments that cater to customers who do not smoke and want a smoke-free room. `This could be white-collar vs. bhae-collar. It's-very close to a class. issue;' Potter suggested. "Another factor is the restaurants that are hurting could be closer to the border of the town " NOV 13 19~~

-25- THE NEW YORK TIMES, SUNDAY, NOVEMBER 12, 1995 PRACTICAL TRAVELER Scrambling for Airplane Seats By BETSY WADE cided it wanted to join the other airlines in assign- ing seats in its coach cab- ins so the people using higher-fare unrestricted tickets would get aisle seats in the front of the cabin, a practice common to • almost all airlines in some form. "It sounds easy," said Bruce C.. Haxthausen, the line's spokesman, "but it meant the reservationists :had to use a split screen on their computers and it created a tempo- rary tizzy." A result of the computer difficulty was that starting in mid-August; Air France became unable to assign any coach seats in advance, although it continued to assign seats in first and business classes. Coach travelers were told they would get seats and boarding passes at the airport. It has not been a popular move. A letter to this department in Septem- ber from a man in Boca Raton, Fla., said that as a senior citizen he was appalled at the "specter of standing in an endless line" before departure. Air France has begun to get its computers under control, Mr. Hax- thausen said, and by Nov. 15, it ex- pects to be able to assign all seats in advance. The airline will then re- sume a policy of assigning seats for most travelers when a flight opens for sale, 360 days in advance. This policy also applies to tour groups and people with tickets bought through consolidators - companies that buy blocs of tickets to resell, often at prices below those adver- tised by the airline. And Air France will now allot the seats in the front of the main cabin to those paying full fare, which was the original goal of the exercise. Some of these will be held until the last minute for travelers booking late, who are forced to pay the higher fare. This has been the airlines' practice at least since 1993. However, advance seat assign- ment is an area where all airlines, are definitely not alike. Ordinarily, I AST summer Air France de passengers covet aisle or wutaow seats in the front of the coach sec- tion. The airlines usually set aside a number of these for their favored customers. If the airline still permits smokin a seconda stru le is for ;ionsmoking seats: notismo ers in- sist on them an even smo t-Ters o en want them, preferring to wa e se- where to smoke. Airlines' Policies Here is a rundown on seat-assign- ment policies for coach class on air- lines flying the Atlantic. British Airways has an elaborate policy. John W. Lampi, the line's spokesman, said that people buying unrestricted full-fare coach tickets could get seats on reservation, as early as 364 days before the flight. For the rest,•he said, there is "no pat answer." Those buying heavily discounted promotional fares, he said, are not allowed advance selection; they se- lect from what is left when they get to the airport. Passengers with restricted tickets requiring purchase 7,14 or 21 days in advance may get an advance choice, depending on how full the flight is, although British Airways holds 30 percent of the seats in each of these fare groups for those who book late, Mr. Lampl said. That leaves 70 per- cent available on reservation, al- though many may go on the first day to group sales. To add to the uncer- tainty, Mr. Lampl said the airline NOV 1 3 Q5 constantly fine-tunes the numbers. Lufthansa, according to its spokes- man, Dan Lewis, will also assign seats as soon as a flight opens for sales, 364 days in advance. This car- rier keeps a scattered group of Geats available until the last minute in smokin and nonsmokin areas. Al- though the seats are not he out specifically for business travelers, Mr. Lewis said, passengers who pay full fare tend to be those who book late and use these seats. Alitalia opens its flights and seat selection 332 days in advance, ac- cording to Juliana MacDonald, a spokeswoman, but saves 25 percent. or so for assignment at the gate. Alitalia also provides multiple smok- ing sections in the main cabins of its 747's and A-300's, so those who want to avoid smoke need to ask how far front the nearest smoker ey wi seated. " 1';fE ST's{Fi,T' st3i'RNAL i420NDAY, wOVEMF3ER 13, 1995 Pepper. . . •and Salt • ~ . "Let me remind you. Wherever I happen to be is a smoking area." THE WALL STREET JOURNAL f

OENVi_R-RQ:.KY MOUNTAIN NEWS M 13 1995 Gays gain power with. Conseniatives suppoited bi71 intended to protect wa_rkerss eri."s.1b x«~t,x~.tw~.c~rora~ A 1990 •s",Zn ,, _,o{oeis' ii ~ta•• 1•atir that was bacJoed by some oon9ervatl.e la.rmake=s and condemned by many liberals has be- come a powerful tool for homosexual cights. Iawmaters on both sides say the' were surprised by Thursday's ruling by the state Court of Appeals that put a new spin on the 5-~ear- ld law Pushed by the tdrao~4loift.1he Iaw pcn- tects waYkers ftvm being pen.Imed for legal activities they do off the tob. The Coiotado Court of Appeals Thursday cited the law ivhenupholdwg a lower court's decision to award $91,000 to a gay lawyer fired by his law fnrn. ••I guesa you could ~ tlus`.t~e la+si ~ of unintended consequenoea; ` said Rej Jeanne Adkins, R-Parkez1iwe's no dou - that issuewaiaever inentioned."-: The question now is whether Ieps~ will try to amend or eCnninate the lm Some want to wait until the 'U.S. Suprnme Court rules on the ooastitutionali- ty of Colorado's anti-gay rights Amendnent 2. If the court declares the 1992 memblent constitutional, most agrte that decision would wipe out the ability to use the siaoac- ers' rights law to protect gays and lesbians in the workplace. When the issue was first debated, the ~fight was over jelly doughnuts and-cW aettes-not gay orlesbian rights. "It really. v.asn't a smoloetn' rights biit," said former House Majority ;.LeAder Chri* Paulson, 'R-Littleton. "Whe~ the Iogi.lfturd. RIQiHTS tram 4A passed it, what we were trying to avoid, was having somebody ds- eiiininate against an employee for eating beef aeating ""fhe principle at stake was whether or not employers should intrude into~prna te Iives. Most people-.would agree that they should not." , House :Vlyjoraty Leadeir Tira Foster. R-Grand junction, said the law now has much broader ramifi- cations, and that doesn't bother hun. He said it originally involved some firefighters whose jobs sniak~ed. dangered because they "It's - reaUy none -of your employer's business what you do on your off time as long as it's tegal; ' Foster said. `That's the tiL8LQT0Q0Z point of the law. What you and I do on our own time is our own-busi~- ness." One critic, attorney joe Zeimet of the Mountain States Employers Couna7, uttered prophetic words, althougfi they got little attention at the tiune. Zeimet, no longer with the council, argued that potential issues could eoncern sexual prac- tices, lifestples, morality issues, moonlighting, a spouse who works for a compctitor, inember- ship in the - Nazi or Communist pazty, drinking during the lunch hour and dating s-supervison Rep. Jeannie Reeser, D-Thorn- ton, who :sponsored the bill, ~ to fight any effort to change "I took a lot of-heat over that bill,- but I really thought I was d the right thing," Reeser "Now I lcnow more than ever that I was rigbt . The biU's supporters included such conservative lawmakers as former House speaker Carl "Bev" Bledsoe, R-Hugo. Without B[ed- soe's-. assigning it to a friendly committee, the bill likef y would. have died. The bill also had sup- port from now-Congressman Scott Mclnnis, Sen. Charles. Duke, R-Monument, a hero of the militia movement, and current ' -House Speaker Chuck Berry,"R: Colorado Senate Majori- ty I,eadrrr J~ells, It-Colocaclo 5pnngs, was the Senate sponsor. Opponents included former. larvmakecs such as Denver first lady Wilma Webb; Revenue DDuec- tor Renny Fagan; lbny Hernan- des, ' regional- director - of US. Housing and Urban Development; and Phil Hernaadm dir+ectoc ot Denver's social services.

-27- LEXINGTON HERALD-LEApER, LDCINGTON, KY, a TUESDAY, NOVEMBER 7, 1995 Smokers need space There is a major dispute over smokers' and non-smokers' rights. 'I am a non- smoker, but I feel that we all should have rights. Most businesses, federal buildings and schools have already done away with smoking in the buildings. A smoker now has to go outside to smoke, even if it is 10 degrees below zero. Everyone has their own opinion about smokers' rights, but I think that there should be a designated area for smokers in every building. People shouldn't have to be treated like animals and be put outside in the rain, snow or whatever the weather just to take a break. N01113 IR15 ' ANGIE HARRIS LONDON The dead trees  A distinguished scientist says pollution threatens our mountains. We ought to be iistening. I rofessor Robert Bruck of N.C. State University says llu rom the Ohio Valley .an ennes.see, in the form of,acKt in and acid fog, have killed the spruCe-fir forest on top of Mount Mitchell and could destroy many more acres of mountain fonest unless it is stopped. For reasons he explains in a story on the front of this section today, he isn't convinced the 1990 Clean Air Act will stop it. Gov. Jim Hunt, who ase this the Year of the Mountains, ought to be listening. Professor Bruck has doctorates In forestry and in , plant pathologyr, and be knows other factors can cause or contribute to the death of trves. dut he has studied dead forests on , ~~, Even when othu factors are Impli industries conoerned about the coats of ab+~te• ' csted, he belkves arIiity makes trees weaker ment are ernphatizing c,iuset other than air and more vulnerable. But to prm that would pollution to explain the dead trees. require a controlled lraboratory experiment tt isn't necesscary to have absolute proof to duplicating conditions across acres of moun- agree that public ugh t to be baaed on taln forest, wtuch is impossible. - the a~umptiott t~ ~laidott caa. kill tr+eea. Dr. Bruc.k's credentials are outstanding, his That ought to mean mone research and close rexareh is impreisive, his data are unchal• monit of the effeetiveess of the 'Ckan lenged. But his conclusions are the subject of AJr Act, which. Dr. Bruck belieim is seriously debate and controv+ersy. No one suggests that flawed. That mfot well lead to pressm for acidity can't danuge trees, but some scientists stricter federal regulation. ' doubt that pollution is the naor cause. They Regulation 'costs -money. Qut inadequate point out, for eaa.mpk, tfw the balsam woolly federal reguktion can be a lot more costly, aphid caa kill Fraser fir aU by itse.lf. particularly In North Carotttw, where the Dr. Bruck doesn't diragree. But he likes to envirorunes~t and econort~y -at~t threatened by ux unaki,z as an analogy to make the case pollution from outside t#tie Itat&, Mount Mitch.!!'and elsewhere for more than a lrsdusay have trjed ~~~dorvn the rtih~,s of and he says the common factor t6.tl~„ unoking, Dr. Bruck iciettists pald by decade agaiM air poUution. For example, your doctor ian't. lilcely to tell you not to worry about G,;~arett* ~ becatae other things can kill you smoke or not. The -analogy also applies to the lack of proof. No one has proved in a laboratory that smoking kills people. The evidence is statistical: dead smokers. The o industry, can point out that many of the smokera were also over- weight, ate.foods that clogged their arteries; drank too mudh, and didn't wear seat belts But scientists have concludedbe)*nd reason- able doubt that smoldng fs bad .tor ua, and publicpo~y based on that conclusion has extended mijlions of Iives Just as se'tbes employed by the tobacco,

-28- LG ANGELES TIMES NOV 1219% Smoking Rate Continues .. Soar in Russia ,.  Health: Western-style a4"are : partly blamed for rise from 45,%= of pc)pulation in mid-198Qs ta~S91o de~pite anti-smoking rampai~'ris.~ .. BySaNNI i:FltoN TlME3 STAFF WRITLR M . ..,,r, OSCOW-Nadezhda Seva4tyan.p- va feaned against the cold-walj;Qf a subway statinn, dragging,deeply on he- Winston ei ett as if to etavq+Q0 the fa ; 3ue she carrie un er her eyeo~ , ,., °EvNz'ybody knows 'The Ministry „of Healta warns that smokintt is harmfulybut we keep smoking anyway," the 3$~,yqar- otd bookkceper safd. "I know I attoufc smoke. It's a stupid habit. I don't want•my child to smoke." , , ,~ Like millions of Russians, Sevastyanova just can't bring herself to quit. Inste4 she tries to hide her vice from her T-yearnold son. ., r, ..x• Whi1e smoking Lt on the w&ne ip 1riAUy industrialized countries, the Russian rzt~,'f; one of tho highest In the developeQ,rvor~,d Moreover, the pereentage of amoker'pr has risen from about 1596 of the popu1a1Vpt}jn the mid-t$80s to about 59%, said Galina4B. Tkachenko, the chief anti- bacc urad- er at the Russian Ministry of e • Pubh(' health officials say cigazetf,qq~- and th : stress, poverty and despair that drive Russtans to smoke more heavily,- are contributing to an unpreceden'w Vop In life expeetancy. They also btame a barrage of '~itzy Weatern-styte tobacco advertising'ibr glamorizing cigarettes. Smoking rates°ate even htgher in urban area,i, where'sop- ave acis for Marlboros are as ubiqultons as 3ortraits of V. I. Lenin were iri "So'vfet :i1nC$. .,•> ,. 11 NOV 13 W S ince January, 199~4, tobacco produqers have spent i15.5 million on televisfon passet3 ay.taw banning televiaian id~ia- and print advertising in Riutiaia, acdording ~g of >obaccio and alcohol as of l9~ it to the Monitoring Co., a Moscow tirm that is not clear that this law will be ~ eraed tracks consuMer advertising. with +nY more t'igor than • the " qi~ee Zlrachenko aays the ads-combined ~dth Yeltsin signed last year. 4 the flood of Npeating Western branc3s.t,hat Sti11,1'kaehenko has a long waZ'fp~J6in now compete with stubby, unfitteresi Ruuian the 'fight to get ~te government to'~ qke ciguettee-hmvs eroded the old notion'that anti-smoking tncasures a priorityF,~~~ ~.le srnoking is unbecoming, espcctatly to wprrien, discussing Russia's worsening heateiq*i• "When there were no ads and no long, sfs. several of her colleagues lit b~Jf 1~a- beautiful cigarettea, people smaked„ less," rettes as they spoke. =~^' 'Tkachenko said. "our ctigarettes wea nof so attractive. ... Many women now aIso udant to smoke because they want to lose rjieig2lt:° So do men: Alexander, SAmotlov, 43, the - burly head of-an electronics factory,;,siotn- pliined that be quit smoking and begar}• to balloon. ;.,; "I greW out of all my cto~es," he sa,id. "i had no coat, no shirtt, no T-shirtQ..MeWy because I had no money to buy atl fao.w clothes, I started smoking again. Now, I want to quit, but I can't." Instead, Samotlov, bas awitched from Rus"sian-made Yava-brand •cigarettes, which cost only 35 cents a pack, to C.amels. whichgoforil,10or.more, : , Though dgarettes have groam more cost- Iy since the demise of Sovtet-era subsidles-- + ur,tike alcohol, which has become chenper- I there has been no drop in consumption b'r in smoking-related ilInes~e3. Lung cancer rates, for example, have risen 32% since 1970.. Moreover, offlcizls iwte a marked inc.rcasc in smoking among teen-agers and women, a trend that bodes W for the future. Boys as yo'ung as 8 puff away on Mos'cow streeta. A recent survey found that 149'0 of fifth-grade boys smoke; by the 10th grade, the rate i1539'0 of boys and 28% ot girls.•- Tkachenko acknowledges that it wil! be tough to persuade adults to give up the habit, but she is determined to fight it in a new generation of Russians. A decree signed by President $oris N. Yeltsin last year Wnning cigarette''ahd alcohol ads had little impact, mainly be- cause the government lacked any means of enforcement. ' Meanwhile, lobbyists for the tobacco giants, who'cite the huge investments•the companies have made in Russia,' tried to derail harlfainent's attempts to pass a`7hw cementing the decree, Tkachenko sa1d: • In a m*r victory for the Healtk'Minis- try, however, Pariiauaent this • dutiuner I

ANITA CREAMER Marlboro Country just a smoke screen T he images IIash before my eyes, and Y'm mesmerized. Sunrise over the Rockies. Big Western landscapes of incredibly rugged beauty. The rush of whitewater, the glint of a serene sunset over craggy peaks. Horses galloping free through vast high country pastures. I'm telling you, the images will take your breath away. In fact, I'm wheezing right now, after only having viewed a short promotional video for Marlboro Unlimited, a contest sponsore y ar ro, the country's most popular cigarette. Normzlly, I hate to mention this kind of thing, for fear of unintentionally pro- moting something that shouldn't be pro- moted. ' Cigarettes, for example. But let's consider the context. Last month, yet another Marlboro Man died of lung cancer- an actor named David McLean, who for years appeared in Marl- boro's TV commercials. Too, teens contin- ue to smoke in record numbers. American tobacco companies, continue taking their M cts overseas, making a killingin World countries. The damage is profound and lasting. The manufacturers' denial runs deep. And so does the stubborn hypocrisy of promotions like this. Says the deep-voiced announcer on the video: "It's the land without Iimite. Sun- rise to sunset. Summer to spring. Adven- ture rolls through the Marlboro Country." ..Indeed, it does: You warit to play in Mailbor.o Country? Fine. Let's talk em- physema. Heart disease, Lung cancer. .~U the least, years of reeking clothes and hair, bad breath, teeth stained brownish- yellow; lowered stamina and chronic problems with phlegm So.that's the real Marlboro Country, a thrilling, life-threatening adventure. (Theupside of lung canoer-someone -29- -,with the American Lung Association once told me - is that it tends to kill fast. You don't suffer long,) , I always swore, when I still smoked, that I'd never become one of those horri- ble, thundering nonsmoker vigilantes, the kind who seem to be on some sort of eternal seek-and-destroy mission against . cigarettes everywhere, Now, having been a smoker, I'm sympathetic with people who can't manage to shake tobacoo's physical and emotional addiction -but I'm also quite cynical about tobacco com- panies. About their refusal to acknowledge that tobacco causes disease. About theii tentacles into the food in- dustry, as well ab their connections with government. And about their marketing ploys. Which brings us to this Marlboro Un- limited promotion, a sweepstakes whose 2,000 winners ("adult emokers," the pro- motion stipulates, because my goodness, we wouldn't want youngsters to partici- pate) wiil travel the West in a special all- smoking train. With glass-domed railcars to eqjoy the views, if you can see past the big clouds of smoke. 've saved my favorite part ot tae pro- motion for Ia.st: "Winners will have'the opportunity to take unique side trips when they leave the train and explore the American West via horseback riding, whitewater rafting, biking, hiking, fishing, hot-air ballooning and sightseeing," aooordinE to a press re• , lepse. . Truly, this Pd love to see. Some 2,000 veteran smokers, hiking up the side of a mountain. And biking on rough back- country trails. And shooting the rapids. And collapsing in sweaty, gasping heaps on the sides of trails, lungs aching, heads pounding, breath coming in short, ragged puffs. And stopping for quick ciga- rette breaks alongside pristine mountain streams. In the real world, smoking doesn't usu- ally march hand in hand with physical fitness. ' But in Marlboro Country, women•and men are as rugged as the land. They age fast. And then they're dead. ANITA CREAMER's cokmn appears Monday, Thurcday and Friday in ,Sce++e. Write her at P.O. Box 15779, Sacrarrwnto 85852, or oall (916) 321-ti36. NOV13W;

THE WALL STREET JOIJRNAL, FRIDAY, NOVEMBER 10, 1995 What Price Civic Pride? One of the more interesting results in Tuesday's election was the Republi- _ can victory in Allegheny County, Pa. Voters from the Pittsburgh area elected a pair of Republican county commissioners on a platform that in- cluded the issue of-sports. Democrats wanted to spend something like $200 million to replace the city's 25-year-old baseball stadium, Three Rivers. For- get about it, said the electorate, and ended 62 years of Democratic rule. Clevelanders also considered the issue of sports spending. The Democ- ratic administration there wan e o raise $150 million to $170 million for a new Browns s adi um by hikin2' "sin taxes" on ciaarettes and alcohol. Fine, said Cleveland voters, who wanted to keep their football team. But approval came too late; Baltimore had already lured team owner Art Modell to quit Cleveland; part of the attraction was a $50 million "moving fee," paid for by Marylanders., Certainly, citizens are proud of their teams and seem willing to pay for keeping them. Typically, though, sports developers and sympathetic politicians are not content with an ap- peal to civic pride. They instead rely on the largely fallacious argument that spending money will spur the econ- omy- createjobs and local commercial activity. The trouble with that argu- ment is that city, county or state budget is a finite pie. Money spent on sports de- velopment is money taken away from the construction of a downtown park- ing facility-or from where it really be- longs, in the taxpayers' pockets. Analysts at, a Pennsylvania think tank, the Allegheny Institute, have looked at the problem and concluded that a new stadium is not in their county's interest. Their work is backed by a 1994 study by economist and bas- ketball coach Robert Baade of Lake Forest College in Illinois. Mr. Baade compared cities with at least one pro team in baseball, football, basketball and hockey with other cities lacking such amenities. He also studied cities where the number of pro teams changed, and those where new stadi- ums were built. The general conclusion was that there was no effect on growth in real per-capita income. In some cases-St. Louis, Washington, D.C., and San Francisco/Oakland-the ef- fect of new stadiums was negative. The logical answer to sports spending is private money, and cities seem to be recognizing this: Conces- sionaires put up millions in Bal'timore and Texas for baseball fields. Some sports economists, such as the Al- legheny Institute's Paul Kengor, advo- cate raising money via sports lotter- ies. That's how Baltimoreans are funding the Browns' move. If public money is on the line, we say stick to referendums; let citizens decide what they're willing to pay for civic pride. Our own sense is that most city citizens, sports fans included, will vote more like Pittsburgh than like Cleveland. DAILY NEWS • Sunday, November 12, 1995 STAYING Call It Quits Stamp'em out Thursday for the 19th annual Great Ameri- can Smokeout. The American Cancer Society's hotline aims to help with friendly support, guides and class referrals from 9 a.m. to 8 p.m. through Thursday: 1-800-417-1ACS. To participate in Smokeout events in the city-motiva- tion al speeches, ti ps and give- aways- head to 19 W. 56th St. Thursday from 6 to 8 p.m. or call (212) 237-3834. I

-31- CORPORATE/ FINANCIAL PHILIP MORRIS COMPAMES INC. ADVERTISING AGE. NOVEMBER 13. 1995 Hearst aims to hold PM tobacco Publisher fights against another exit like Kraft By Keith J. Kelly With ad closing dates for February issues fast approach- ing, Hearst Magazines is in frenzied negotiations to capture at least some Philip Morris Cos. business for 1996. The stakes are high in what is seen as one of the most cru- cial tests of Hearst Corp.'s resolve. The publisher cut rate bases 10% while upping ad rates 5% and hiking both news- stand and subscription prices at 13 of its 15 magazines ef- fective Nov. 1, yielding cost-per-thousand increases of 15% or more. Advertising Age estimates that for 1995, PM accounted for some $50 million in ad revenue and 500 ad pages across all Hearst magazines. That would make PM Hearst's top advertiser in ad pages and third behind Procter & Gamble Co. and Nestle in real revenue. At stake right now is the $20 million in PM tobacco ad- (Continued on Page 8) More fallout:  Elizabeth Arden: "Dis- turbed and'upset" by changes.  J&J, Nestle: Agencies said to be having a "field day" with the publisher.  P&G: Told agencies it reached "a mutually agree- able solution" with Hearst; the deal may have further angered Kraft. (Continued from Page 1) vertising that ran in Hearst titles this year. This week, the tobacco wing, Philip Morris USA, is ex- pected to reveal its ad schedule for next year. Already lost is vir- tually all the estimated $30 mil- lion in Kraft Foods ads that ran in Hearst books, insiders concede. Said one Hearst executive: "Kraft is dead. It's too late. There may be some limited Kraft schedules in books like Victoria or Cosmopoli- tan, but basically it's nothing." "I think [Kraft] will spread [its business] out to the other books in the women's service field," said 4t-'oman's Day VP-Publisher John Fennell. "I know we're seeing in- creased size of schedules on the Kraft food side." "Hearst is having a very hard time," one agency media executive said. "I'm not saying that it's dis- mal, but a lot of people are using this as a crutch to beat them up. They were right to do what they did from a business standpoint and try- ing to make magazines healthier, but their timing and the way they handled public relations was a nightmare. ... There's also a sense of that, just as Hearst was intracta- ble when it laid the plan out, [ad- vertisers] can be too." "There is no Kraft General Foods business in Good House- keeping in January, but I remain optimistic," said Publisher Alan Waxenberg. "I think there is no problem that can't be resolved." But as a result, the tobacco ne- gotiations have taken on a new urgency and Hearst executives in- cluding President Claeys Bahren- burg are involved. "We've had meetings [with Philip Morris executives]," Mr. Bahrenburg said last week. "We think they're productive." NOV 1 3 1$@5 The way competitors and Hearst insiders now view the situation, Hearst is expected to hang on to some but not all the tobacco busi- ness it had last year. How much? That's the big question. Competitors are already making inroads. "We're real optimistic on our own business with Kraft for 1996," said Jerry Kaplan, VP- group publisher at Meredith, re- sponsible for group sales at Bet- ter Homes & Gar- dens and Ladies' Home Journal. "We think they [Hearst] will prob- ably come through tobacco all right." The big Sunday magazines are also in the hunt. ''It's like sharks circling in the wa- ter,'' said Brett Popper, president of USA Weekend. "Anytime you see ... money is up for grabs, you can be sure about 30 publishers will come running." Automatically out of the picture are Good Housekeeping and Country Living, which don't ac- cept cigarette advertising. Right now, it appears to be a bat- tle of positioning and there may be some break in ranks between the tobacco unit's main agency of rec- ord Leo Burnett Co., Chicago, and the food wing's main media agency, Young & Rubicam, New York. Both agencies declined comment. The wording of the PM corporate edict was such that individual brands that still wanted to use the Hearst books had to write justifica- tions to put them into the ad sched- ule for the following year. January rCo- :,<,

-32 NOV 1 3 W ~ ")t'd) books are already at the printers- with no Kraft business. The tobacco side ad contracts ran through Janu- ary, so crunch time is now. Last week, a Kraft spokesman said there was no significant change in its position, but the door was left open a crack. "We will re- view all proposals from our ad agencies on a case by case basis. You might see some brands in Hearst," she said, adding, "We con- tinue to be in dialogue with them." But while the food side has been loath to make exceptions, the to- bacco side has been more willing to listen. That's because Philip Morris USA is keenly interested in the targeted au- dience reached by the young wom- en's books Cosmo- politan and Marie Claire and to a lesser extent men's books such as Sports Afield, Popular Mechan- ics and Esquire. The two women's books are rarities in the current standoff because they are still under consideration for full ad schedules for next year. For other Hearst books, run- of-book campaigns appear now to be out of the question. The cam- paign has shifted to a battle to keep Philip Morris USA brands in the titles in such lucrative postion as the inside cover and the so- called third and fourth covers on the back of the magazines. As Conde Nast Exec VP Jack Kliger was attending the American Magazine Conference in Boca Ra- ton, Fla., last week, he was also fe- verishly directing his ad sales troops back in New York, trying to clear up covers in various books. For PM, this is a battle to main- tain a unified corporate stance against the CPM increases while trying to reach the audiences it wants. And PM isn't alone. There are also rumblings from other Hearst advertisers. Indeed, it appears a quiet deal reached late last month with P&G may have further fueled Kraft's anger. P&G acknowledged as much with a statement to all its agencies that said, "We've enjoyed a long and mutually beneficial re- lationship with Hearst ... We were pleased to have arrived at a mutually agreeable solution." The agency media executive who said Hearst's changes lacked timing said agencies for both Nestle and Johnson & Johnson are having a field day with Hearst. Just about any agency of record "for print where you have clients that can go either way to fashion, beauty or service titles is probably torturing them," he said. In the cosmetics industry, Peter England, president-CEO of Eliza- beth Arden Co., said, "I am dis- turbed and upset by the rate in- creases and circulation cuts." He plans on meeting with Unilever media director Joe Campion to discuss Hearst. Hearst's plan is designed to shed marginal readers and con- vince core readers to pay more for the product. It also wants adver- tisers to pay 5% more to reach that core. "They are losing the peripheral value reader," said Mike White, exec VP-director of media for DDB Needham Worldwide, Chi- cago. "They are weeding out cir- culation and ... focusing more on the core readership who have truly bonded with the magazine." Still, he cautioned, Hearst has to be competitive: "It is hard to be competitive when you raise rates and lower your audience." El Also contributing to this story: Ira Teinowitz, Michael Wilke and Pat Sloan.

ADVERTISING AGE NOVEMBER 13 1995 No. 1 AT&T proves an easy target By R. Craig Endicott The grip ad expenditures have on market share grew visibly tighter in first-half 1995, accord- ing to Advertising Age's Top 200 megabrands report. The quarterly report once again found AT&T ensconced at the top at $359.4 million in media spend- ing, off 1.5 % the prior year. The 200 tapered to CBS-TV network at $20.2 million. AT&T spending has been slip- ping the last two quarters from '94 levels as MCI and Sprint boosted their outlays by 20.2 % and 8°0. re- specttvely. Since'84 these two have chipped off 17% and 9% shares from the AT&T monolith, now at 57%. The Baby Bells and GTE have taken another 17 % , Media spending is just one of a number of factors in share build- ing, yet it serves as a key indicator of share movement, particularly in established markets like auto- motive, pain reltevers- toothpaste and retading. Automotive led the Top 200 in category spending at $2.85 billion for 30 brands, up 123%-the mix of a first-quarter uptick of 24 3% and second-quarter growth of 11.4 % Eleven Asian marques out- raced media spending by Detroit and the European brands in both quarters, up 30.1% and 14.6%, re- spectively. But only Toyota among Japan's, Big 3 advanced in U.S. car sales- up 4A"6 to 399-538 units for 91% share of market (up from 8.2% in the prior year), according to Auto- motive Neras, sister publication of Ad Age. Spending for Toyota cars and trucks grew 30% in this pe- riod to $222 million. There were pockets of growth. Dodge cars and trucks advanced the most rungs in the 200's top 10 landing at No9 with spending of S186 7 million, up 58 9%. That helped deliver a strong showing at dealers where sales of Dodge cars grew 11 8% to 222,760 units, rais- ing Dodge's market share 0.8 points to 5.1 °o Chevrolet, the highest ranking auto brand in media spendrng, plowed 37.1 % more into media and boosted sales 1.3% to 448.108 units. Chevy registered the largest market share growth among all car brands, up 2.3 points to 11.8% of market. Ford is market leader at 15.5 %, according to Automo- tive News. The 200's 23-brand personal care & remedies category hit a mercurial 32% gain in media spending to $803 million in the first half. Five analgesics claimed just over a quarter of the total- or $225 million, up 35.4%. Aleve from Procter & Gamble Co. has turned this subcategory, valued at $2.7 billion in retail sales, into more than a showcase for Tylenol. Introduced in spring '94 with a marketing budget esti- mated at $ 100 million, Aleve grabbed a 5.4% share for the year ended August '95, according to three-outlet sales data from Infor- mation Resources Inc. Aleve was supported by $34.4 million in first-half media spending. As the total market grew only 1.5% in sales through August, Aleve grabbed its $143.3 million sales largely from competitors, parttcularly Tylenol. and from the bottom tier of the market. Tylenol slipped to a 30.3% share from 32.8% in August '94 as sales fell from $872 million to $808.3 mil- lion, according to IRI. Mentadent's share and media movement in the toothpaste mar- ket, valued at $1.4 bilhon (up 6%), have proven meteonc Backed by $34.3 million in media in the first half, up 130-8%. the baking soda/ peroxide product from Unilever held the market's No. 3 spot at an 11.9 % share for the year ended July 2, up from 7.0% in nud-'94. Lcader Crest slipped to 29.4 4% (dow2.2 points) and Colgate fell to 18.4`/0- according to IRI. Consumer elertronres. one of the few bnght spots in retailing, con- tnbuted $244.9 million in medta, up 10%. The subcategory harbors re- tail's fastest growing ad spender. Best Buy, its outlays up 172.9% to $31.5 million. Best Buy and Circuit City are locked in a virtual dead heat, each with a 9% share of the $49.8 billion market for consumer electronics. Circuit City, spending $4 to every $1 by Best Buy, may be rethinking its media strategy. Its first-half outlay dipped 1.9 % _ In entertainment, market share at midyear was tightly packed around 18% each in ticket sales for Univer- sal Studios. Warner Bros.and Buena Vista, according to Variety. Hollywood flooded the top 200 with 14 studios that mounted a collective $930.2 million in media spending, up 28% from the prior year, an indication not only of more releases (up 19% through the summer) but bigger marketing budgets. ^ Top 10 companies by first-half 1995 ad spending Totsl measured ad spending Rank I 2 Company ; General Motors Corp: : Phllip Morris Cos. 1995 1994 $809.4 $687 9 756.2 664 0 % ohq 177 139 a roc er am e o. 'Tw[----= M 4 Ford Motor Co. 497.0 471 1 55 Cht)nler corp. 4t4A 383.7 26.4 t PepsiCo 40f.t 369 9 100 7 : AT&T Corp. 36111-3 3661 -t 6 • WaltOisneyCo. 312.5 2320 347 9 Toyota Motor Corp. 291.7 236 7 232 Johnson & Johnson M.{ 237.3 11.9 Notes: Oollan we In mllllons. Source: Competltlre Medla Reporlinr. Ad spendin0 by brands in 200 1995 1994 •/. ch0 $767.6 S659.7 16.4 485.6 410.5 183 237.5 1591 492 469.7 4500 44 469.0 365.6 _ 28.3 344.5 3051 129 359.4 364 7 -1.5 310.3 229,9 35.0 291.7 236.7 232 175.4 139.2 26.0 Top 10 categories by first-half 1995 ad spending Measured ad spending Ad sptndiag by media Numbn Rank Category 1995 1994 •/. ch0 Prlnt eroadcast Olttdoor of brands I Automotive $2,90.7 $2.427 8 173 $9421 S1.8884 $162 30 2 Food 1,685 1.3485 82 1605 1.2944 36 ; 27 3 lfellf 1,193.7 1.1166 69 6287 563.5 15 24 4 Entedainment 1,iM.i 837.7 253 4966 5439 91 19 Restaurants M/.7 785A 12.1 10.9 851.7 18.1 = 12 6 Telephone tifA.9 7739 12.5 1875 6763 72 = 9 7 : Personal care A remedies 802 609.0 319 2112 5916 0.4 23 Ar Financial 4Q9 476.7 -2.9 1462 313.0 3.6 12 9 : Computers 6 sotlware 2pS 1355 944 1420 1212 0.3 : 6 Bnr 24i.7 246.8 -0.8 4.e 224.0 16.5 4 I Xotn: Oollant are In m1111ons. Totals Incluee only brands from the top 200. Saurce: Competitive Medla Repanlnl. Total measured media spending for first-half 1995 Total measured ad spending Ad spending by brands in 200 Rank Media 1995 1994 N. chg 1995 19" % ch0 I Newspaper f6,3M.2 s5.685 1 10 9 $1.430.1 51.187 0 20.5 2 Network TV 1241.11 6,080.0 2.7 4,0411.4 3,6503 10.9 3 Spot TV 1-11174.7 5.6773 70 2,086-4 1-920 9 86 4 Mapaiine 4,71f.S 3.9667 20.3 1,6236 1,289.6 25.9 5 Cable TV networks l,ip.9 1.3793 163 7033 5865 199 6 STndicatedTY 1.111.1 1,063-1 46 458.3 466-9 4.6 7 Natlonatspotradio 633.1 5552 140 1953 . 1349 448 0 National newspaper SM.4 5499 36 168.1 167.7 0.2 9 Sunday magazine 52t2 4910 76 212.7 1786 191 10 Outdoor 4722 4256 110 119.9 94A 27.1 11 Network radio 3651 3086 185 1734 1297 337 Total 29JBa1 26,181.7 9.5 11,U7.3 9,806.2 14.7 Nntes Dollars are In millions. Source: Competillre Media Reportlnr. tCpM"C'.- 1B9L9TQS4Z

-34- NQvi 3 9 ^Arit'112 Top 200 mega-brands by first-half 1995 ad spending Rank Total measured ad spending Rank Total measured ad spending 1995 1994 Brand, product or servica Parent company 1995 1994 °: chq 1995 1994 Brand, product or service Parent company 1995 19U °° chg 1: t~ AT&T telephone svcs AT&T Corp ; 5359,350•7 ; S364.671.8 ~ •1.5 101 ~ 150 : Nabisco cereals Phdip Morris Cos.: 535.73A.6 522,941 4~ 55.8 0 3 2; 2; Ford can & trucks Ford Motor Co ; 294,756•1 ; 277.641 4; 6,2 rr ar mones Sony orp ;- ; 57 5 3.: 6:Chevroletcarsitrucks GeneralMotorsCorp„ 287,993.7: 195,502.t ; 37.1 103 ; 72 :Mercedes•Benzcan Daimler•BenzAG; 35,010.4: 40.901~4 t•144 4: 3: KelloOg cereals Kellogg Co. : 259,911.5 : 249.286,9 : 4,3 104 ' 104 : Nynes telephone services Nynex Corp : 34,946•6 : 31.066.1 : 12.5 ~ 4: Stan stores Sears• Roebuck & Co. : 232,493.9 : 210,628.1 : 10.4 11[al 109 ~ Kodak products Eastman Kodak Co, : 34,605.9 ; 28.326.0 : 22.9 • 6; 5 : McOonald's resUurants McDonald's CorD. ; 230,666.7 ; 209.253.3 ; 10,3 106 ' 69 ; MasterCard credit card MasterCard International ; 34,636.5 ; 41 910.9 .174 7: 7: Toyota cars & lrucks Tpypta Motor Corp : 222,013•7 : 170,752.3 ; 30.0 07 : 165 ; Maswell House eoftees __ Philip Morris Cos. ; 34,619.7 : 21.9983 : 57 4 6: 9: MCI telephpne svcs MCI Communicatmns Corp: 196,601•9: 165•339.9 : 202 10a • 161-'. Revlon cosmetics acAnerews orbes Holdings • 34,599.0 • 22,149.8 . °~ ~ 13 : Dodge cars & trucks Chrysler Corp.: 166,701.5 j 117A60.0 : 589 109 •1.010 : Aleve pain remedies Procter & Gamble Co : 34,46/.7 ; 1,098.7 : NA 8; Chrysler cars & trucks Chryster Cprp. ; 164,447.5 • 165.682.9 ; -0.7 JIM 263 ; MeetadeM dental care products Unilever ; 34,347•3 ; 14.882.5 ; 130.8 11 : 12 ; Nissan cars & trucks Nissan Motor Co.: 153,561.6: 123.017.6 ; 24.8 111 : 114 ; Tide laundry detergent Procter & Gamble Co : 34,064.9: 28.048.5 ; 214 12 : 10 : Disney entertainment Walt Disney Co.: 143,739.1 : 131,817,8 : 9.0 112 : 95 : Montgomery Ward stbres Montgomery Ward & Co. : 33,501.6: 33,7787 : .08 13 : 17 : Honda cars & trucks Honda Motor Co.: 133,212.6 ~ 111.393.2 : 19,6 113 ~ 94 : BMW cars BMW AG : 33,214.0 : 34.714.9 : .4.3 14 j 11 ; Circuit City electronic stores Circuit C ty Stores ; 125,677.1 ; 128,3672 ; -1 9 114 128 ; Merrill Lynch linancial sres Merrill Lynch & Co. ; 33,167•2 ; 25.490.7 ; 302 ~ 18 ; Columbia movies & reeordinqs Sony CprD-: 123,255.5: 106,898.7 ; 15.3 ~ 136 : Gillette personal care products Gillette Co. : 32,600.6: 23,928.0 ; 36.2 16 : 16 : Mazda can 3lrueks Mazda Motor Corp. : 121,535.2 : 113.3535 : 7,2 116 : 92 : Little Caesars pizza Little Caesar Enterprises : 32,584.4 : 34,782.2 : •6 3 17 : 31 : Warner Bros. movies Time Warner : 119.287.9: 82.005 6: 45 5 117 : 224 : Sprite & Diet Sprite beverages Coca-Cola Co. • 32,160.4: 168770 : 906 18 ; 57 IBM computers IBM Corp ; 118,635.0 ; 54255.8 ; 1190 116t ; 345 • Best Buy appliance & electronics stores Best Buy Co. j 31,547.6 ; 11 5620 ; 1729 19 • 29 : Jeep & Eagle vehicles Chrysler Cprp. ; 117,621.0; 82,4508 ; 42.9 119 : 151 ; Canon electronics Canon Inc : 31,294.6 : 22,9274 : 365 ~ 14 : Budweiser beer ' Anheuser•Busch Cos. : 114,661•0 : 117,098.4 : •1.9 ~ NA : Milk Milk Industry Foundation : 31,267.2: NA : NA . 21 • 15 : KnN tpad products Philip Moms Cos • 113,765.6: t 16.634.1 : -2.5 121 • 74 : Nestle candy & tood products Nestle : 31,196•3: 39,7180 :•21.5 22 ; 21 • General Mills cereals eneral ihs • 112,11a•9 ; 105.865.3 • 5 9 122 ; 83 ; Pantene haircare products Procter & Gamble Co. ; 31,03/.5 ; 36.045.6 ~•t3.9 23 ; 23 : Burger King restaurants Grand Metropphtan t 107,073.0 ; 100.385.6 ; 6 7 123 : 281 : Hollywood movies Walt Disney Co ; 29.706.9 : 13.916.5 ; 1135 24 : 28 : Post cereals Philip Morris Cos : 105,954.6 : 82.932 5: 278 124 : 134 : Lipton fopd products Unilever : 29.448.9 : 24.1487 : 219 IM[ 24 • Sprint telephone ivcs prmt orp. • 1. .; 96,355,2 8. 194 : Bell Atlantic telephone svcs Bell Atlantic Corp. : 29,261.6 ; 19,616.7 : 49.3 . 26 • 26 ; American Espreu credit card Amencan Express Co ~ 102,949.5' 84.651.2 ~ 21.6 126 : 122 ~ Midas mufflers Whitman Corp. ; 29,223•7 ; 26,491.5 ~ 103 27 : 53 : Paramount movies Viacom : 97,020.6 : 58.372.8 ; 662 127 ; 164 ; Radio Shack slores Tandy Corp. ; 29,047.7 ; 22,043.1 ; 318 20 : 43 : Buick cars General Motors Corp : 96,256.4: 71,4263 : 348 128 : 84 : Campbell's soup & sauce products Campbell Soup Co : 26,657.6: 35.877.3 .196 29 ' 20 : J.C, Penney stores J.C. Penney Co.: 96,04.11,11 : 106.111.6 : •9.5 129 : 126 : Mattel toys Mattel : 28,658•6: 26,1142 : 9 7• MCI 33 j Tylendl remedits Johnson & Johnson ~ 93,545•6 ~ 81.264.4 : 15.1 11= 157 ~ Hardee's restaurants Imasco Ltd. ; 23,640.8 ; 22•421.5 ~ 27.7 31 : 40 ; Taco Bell restaurants PepsiCo' 86.040.5' 72.992.6 j 206 131 ; 574 ; Subanr cars & trucks Fuli Heavy Industries : 26,582.2: 4,995.t j 4722 32 : 30 : Pizza Hut restaurants PepsiCo : 66,q34.6: 82.1809 : 7 t 132 : 130 : Savoy movies Savoy Pictures : 26,167•6: 24.893 4: 132 33 : 25 : Cadillae cars General Motors Corp.: 64,965.4 : 90,051 6: .56 133 : 117 : Maybelline cosmetics Mayhellme : 27,735,5 : 27,531.0 : 0.7 34 ~ 36 ~ Mercury can & trucks Ford Motor Co ~ 83,607.0 ; 80.745.2 ~ 38 134 ~ 145 ~ Builders Square stores Kmart CorO( 27,666•3 ~ 23,2025 ~ 19.2 MEI 35 ; Franklin Mint collections Roll Internatienal Corp, j 63,667.4 : 81,218.3 ; 3.0 I[Eng 143 t Covtr Girl cosmeties Procter & Gamble Co. : 27,519.0 ; 23,515.2 ; 170 36 : 37 : Wendy's restaurants Wendys Internatmnal : 62,459.0: 79.948.0 : 31 136 1 260 • Jell•0 desserts __ Philip Morris Cos. : 27,424.1 : 150204 .: 82.6_ 37 : 45 : Nike shoes & apparel Nike Inc, : 60,609.9 : 67 469 0: 198 137 • t66~ tfict Oepot stores Ofhce Depot • 27,191.6 • 21.962 0: 23.8 38 ~ 32 ~ Pontiac cars & trucks General Motors Corp : 76,697.4 ~ 81427.0 ~ •3.1 138 :1 J80 ~ Red Oog oeer Philip Morris Cos ~ 27,182.6 r NA : NA 39 I 19 ; Miller been Philip Morns Cos. ; 76,467•5: 106,694.8 ;-26.5 139 ' 176 : M&Ms candies Mars Inc. ; 26,927•3 : 20.9714 ; 284 . ma s orts ma orp.. 1, •54 70 :TlmnLite products i servica Time Wamer : 26,611•7: 41,905.1 :•36.0 41 : 48 : KFC restaurants PepsiCo : 75,144.0 : 64,737.2 : 161 141 : 138 : Mtrvyn's stores Dayton Hudson Corp, : 26,574.4: 23,779.1 : 11 .8 42 22 ~ Coke & Dlet Coke beverages Coca-Cola Co. ~ 73,975.1 105.352,6 -29 8 142 ~ 199 ~ Calqale dental eare products Colgate•Palmolive Co. 26,506.9 ; 19121.2 : 386 43 ; 294 j Buena Vista movies Walt Disney Co ~ 73,513.3 ; 13.209.9 j 456.5 143 7 182 ; Discover credit card Dean Witter, Discover & Co. ; 26,439•0 ; 20.477.1 ; 29.1 44 : 38 : Saturn cars General Motors Corp : 72,516.6: 79,0850 : •8.3 144 : 91 : Quaker Oats cereals & loeds Quaker Oats Co. : 26,35/.0: 35.3764 ; .25..5 27 : Universal movies Seagram Co.: 71,071•3: 84.513.2 :•15.9 IN= 125 : Foley's stdres May Department Stores Co. : 26,326.1 : 26,388.3 : -0.2 46 41 : Mllsubishl cars & trucks Mitsubishi Motors Corp ~ 70.636.9 ~ 72,283 6~ -2 3 146 • 193 j Lysol housthold products Reckitt & Colman : 26,195.2 ~ 19.681.4 : 33.1 47 ; 42 ; L'Oreal halrcan 1. cosmetics L'Oreal ; 69,797.1 ; 71.641 5; •2.6 147 ; 203 ; Neutrogena personal care products Johnson & Johnson ; 25,993.9 ; 18.790.9 ; 38.3 47 ; Lesus cars Toyota Motor Corp : 69•6/1.6 : 65,9507 : 5 6 1 " : 163 : Steutfen food products Nestle : 25,667.7 : 22,089.1 ; 17.1 49 : 39 : Pepsl & Olel Pepsf beverages PepsiCo : 68,580.1 : 74,261.8 : •7.7 149 : 191 : Allstatt insurance Allstate Corp : 26,716.5 : 19.780.1 : 30 0 ol~ 59 ~ 20th Century Fox movras News Corp, : 66,177.0 ; 51,320.5 : 32.8 lg~ 82 ~ Fideliry financial services Fidelity Investment Cps. ~ 25,617•6 j 36.508.5 :-29.7 51 ; 52 ; Lincoln ears Ford Motor Co ; 6L564•7 : 598244 ,; 129 151 ; 185 j NBC TV network General Electric Co ; 25,442•i! : 20.220.6 ; 258 52 : 49 : Vlsa eradit card Visa Internatipnal : 65.289.0 : 62,817.7 ; 3 9 152 : 200 : Fox TV network News Corp. : 25,316.9: 18.852.7 ; 34 3 53 : 62 :Oldsmobile cars & trucks General Motors Corp : 64,091•9 : 474451 : 33.7 153 : 195 : Hallmark cards & produtts Hallmark Cards : 25,176.3: 19.5275 : 28.9 , S4 44 : Acura cars Honda Motor Co.: 63,647.6: 69,1418 •7.7 154 147 : Ltnscnhen opticians Luxottica Group ; 25,051.2: 23.071.2 : 8.6 67 ; Mtdhoro elqanttts PhiliD Morris Cos. ~ 62 477.1 : 44.286.5 t 41.1 ~ 386 j Kool eiganhes B.A.T Industries ; 24,/56•5 ; 9,620.1 ; 158.4 56 Wrigley gums Wm Wrigley Jr Co, : 61,047.6 ; 55,388 7; 10.2 156 ; 115 : US West telephone svcs US West ; 24,835.6 : 279442 ,; •11 1 57 : 51 : Hershey loods Hershey Foods Corp : 60,199.3: 62A58.0 : •3.0 157 : 170 : Eseedrin pain remedies Bristol-Myers Squibb Co ~ 24,773.4 : 21,6742 : 14 3 58 : 46 : Cllibank financial services Citicorp : 59,619•9 : 66.197.2 : •9 9 159 : 149 ~ Coon liqhl beer Adolph Coors Co. : 24,761.9 : 22.977 8: 7 8 59 65 j Nabisco todd products RJR Nabisco Holdings Corp; 57,762•6 ~ 46.002.2 ; 25.6 169 ~ 116 ; Mry/AObinson stores May Department Stores Co. ; 21,691.1 ; 27.587.4 ~•10 5 ~ 50 : Macy's stores Federated Department Stores: 56,691.6: 62.257,1 ; •8.6 ~ 354 : Dodtos snack chips PepsiCo : 24,690•9: 10,9742 : 1250 61 : 56 : General Motors cars, trucks & credit General Motors Corp-: 56,364.1 : 55.297 0: 1 9 161 : 139 : Hewlett-Packard computers Hewlett-Packard Co : 24.557.4 : 23,682 4: 3.7 62 : 227 : Microsoft sohware Microsofl Corp. : 55,990A : 16.850,2 : 232.3 162 : 85 : Volkswagen cars & trucks Volkswagen AG : 24,535•2 : 35.860.6 316 63 ; 76 ; Jahnson & Johnson personal care Johnson & Johnson' 55,066.6 ; 39.133,2 ; 428 163 j 214 ; Sis Flags amusement parks Boston Ventures j 24,172.4 j 18.076 7~ 33 7 64 • 68 :WOl•Martstore3 Wal•MartStores' 53.243.0; 43.1194 ; 23.5 164 ' 100 ;NarthwestAirlines NWAInc.: 23,766.3: 31.8593 3 ;.253 146 : Hyundal cars Hyundai Corp, : 52,769.6: 23,186.9 : 127.7 ~ 167 : MotNn remedies Uplohn Co.: 23,961.9: 21,756.8 : 8.8 ~ 54 : Goodyear tires Goodyear Tire & Rubber Co : 50,504•2: 55.8585 : -9.6 166 • 187 : Walgreen drug stores Walqreen Go ~ 23,659.3 : 20,141 1: 175 ; 23,644.1 ; 23.4974 ~ 0 6 67 ; 66 ~ Olllard's stores Ddlard Department Stores ~ 49,663.6 ; 44668,2 ; 112 167 ; 144 ~ Charles Schwab finaneial services Charles Schwab Corp 66 : 73 ; Advil remedies American Home Products Corp : 4a,601•3' 40,3160 : 206 166 : 101 ; Hertz car rental Ford Motor Co : 23,616.5: 31.7524 ;25 6 69 : 71 : Isuzu cars & trucks Isuzu Motors' 47,381.0 ' 41 5306 .6 : 14 1 169 : 212 :OuPont products OuPont Co : 23,632.1 : 18.125 .7 : 298 ~ 81 : Infinitl ean Nissan Motor Co. : 47,293•0 : 37.384 6: 26.5 ~ 129 : Sealy mattresses Sealy Corp : 23,212,4 ; 24,943.7 : -6 8 71 • 77 ~ Geo vehicles & cars General Motors Corp j 46,694.7 • 38,9968 ~ 19 7 171 ; 111 ~ 2Jenny Craig food & diet Jenny Craig International ; 23,144,11 ; 28.209..9 .180 72 : 108 ; 011 of Olay skincare products Procter & Gamble Co : 46,069.0: 28.549.6 : 614 172 : 169 ; Estee Lauder cosmetics Estee Lauder Inc ; 23,130•1 ; 21.681 6; 6 7 73 : 58 : U•S. dairy products U SS dairy farmers : 44.673.7. 51.8319 : -t3 8 173 : 135 : Bank of America BankAmerica Corp: 23,099.4 : 23.930 3: .3 5 74 : 99 : Home Depot stores Home Depot : 44,246•4 : 32453 .3 : 363 174 : 196 : Bradford Exchange collectibles Bradford Exchange : 22,905.6 : 19.493 3: 175 IS" 97 j Red Lobster restaurant Darden Restaurants 44,16/.4 33.511,5 j 31.1f IRIM 230 ; Apple computers Apple Computer ; 22,617.2 ; 16.7436 ~ 35 1 76 : 120 ; GTE telephone services GTE Corp: 44,124.7; 26.6232 : 65.7 176 ; 184 ; Snickers candy Mars Inc : 22,251.9 : 20.321 2 j 9 5 77 : 75 : Purina pet loeds Ralston Purina Co.: 43,230.0 : 39.3308 : 9 9 177 : 190 : BMG music service Bertelsmann AG : 22,237.9: 19,812.1 : 122 73 : 140 : Fotgers coUees Procter & Gamble Co : 43,156.4: 23,555.9 : 832 178 : 119 : Publishers Choice products National Syndications : 22,114.5: 27285.4 190 79 ~ 86 ~ Target stares Dayton Hudson Corp ~ /2,669.3 ; 35.735 5~ 200 179 ~ 133 ~ Alka•Seltzer remedies Bayer Group ~ 22,1166.9 : 24.1533 : •8 6 131 j Minmas movies Wah Disney Co. ; 42,252.2 ; 24,8124 f 70.3 ~ 118 t CompUSA computer stores CompUSA ; 21,969.7 : 27.312.9 ;•20.0 1111111 : 93 : UPS delivery svc United Parcel Service : 41,607.8 : 34.768.2 : 202 181 : 238 ; HBO cable TV channel Time Warner : 21,601,4 : 161385 : 33 9 82 : 78 : Subway resnurants Franchise World Headquarters : 41,604.2: 38,662.1 : 81 182 : NA : Fteeasa nasal spray Glaxo Wellcome : 21,556.6: NA : NA 63 ~ 90 ~ NordlcTrack fitness equipment CML Group ; 41,625.3 ~ 35.408 1~ 176 183 ~ 160 : Century 21 real estate sves Metropolitan Lde Insurance Co. ; 21,436.2 ; 22,1703 : -3 3 64 : 107 ; United Airlines UAL Corp ; 40,660.3: 28.982.5 ; 403 164 ; 153 ; Snappit teas & fruit juices Quaker Oats Co. ; 21,419.3 ; 22.850.2 ; .63 ~ IMCM 87 : Domino's pizn Dominos P zza : 40,696,0' 35.674.1 : 138 ~ 112 : Broadway slpns Broadway Stores : 21,415.7: 28,174.2 :•24 0 • 66 : 121 : New Line movies Turner Broatlcashnq System . 40,L/9.3 : 26.5598 : 523 186 • 358 : Olive Garden restaurant Darden Restauranls : 21,303•2 : 10,B72 5: 95 9 ~ 67 ~ 124 : Volvo cars & trucks Volvo AB : 40,159.9 : 26.4060 ~ 52 1 107 ~ 178 ~ Nintendo electronic products Nintendo Co. ; 21,271.3 ; 208105 ,~ 2.2 8! ; 103 ;Blockbustervideostons V,acom; 39,338.3; 31,105.3 ; 26.5 154 ; 211 jPerthaircartproduets Procter&GambleCo.; 21,217.2: 18.298 2 2 ; 160 69 : 175 : Ameritech telephone svcs - Ameritech Corp' 39,012.6 • 20.994.3 : 85.8 169 ' 370 : Carnival cruise lines Carnival Corp : 21,166.1 : 10.233.9 : 1070 61 : Oella Air Lines Delp Air Lines: 33,303.9 : 48,794.7 :•21.5 ~~y 60 : Prudential financial services Prudential Insurance Co.: 21,15i•1 : 49,277.7 :•57.1 . 91 80 : Reebok shoes & apparel Reebok International : 36,292•6 : 37.533.8 ~ 2.0 191 • 208 ~ Winn•Oisie tood stores Winn Dixie Stores ; 21,125.2 ; 18.5623 ~ 138 92 ; 127 ; Clairol haircare products Bristol-Myers Squibb Co. j 31,32g•7; 25.8778 ; 442 192 ; 64 ; Touchstane movies Walt Disney Co. : 21,067•2 ; 46.1302 ; •54 3 93 : 123 : U.S. Army U.S, Government; 37,262.2: 26•450.8 : 40,9 193 : 172 : C1oros household products Clorox Co : 21,056•3: 21.331 4: .13 9{ ' 96 : Kletnes tissue & baby products KimberlyClark Corp : 37,255.0 : 33.6028 : 10 9 194 ' 256 : Digital computers Digital Equipment Corp : 20,695,3 : 15.343 0: 362 ~ 132 : MGMNA movies Credit Lyonnais : 36,927.4: 24•646.8 494 ~ 352 USAIr aiNlna USAir Group ; 20,671.1 ; 11.073.5 86.7 96 ; 98 j Wiz electroniu stora The Wiz ~ 36,560.1 ; 33.375.5 ; 96 196 ; 411 ; Motorola products Motorola Inc. ; 20,602,6 ; 8.673.6 ( t37.5 97 : 173 : Cellular One telephone svos Cellular One : 36,509.3: 21,248.7 ; 71 8 197 : 270 : Calvin Klein fragrances . Unilever: 20,574,4: 14,294.7 ; 439 9a : 154 : Southwest Airlines Southwest Airlines: 36,149.7: 22.846 4: 58.2 196 : 290 : Saab cars Investor AB : 20,426•0: 13.353 7: 530 ~ 63 j American AlAlnts AMR Corp.: 36,143•0: 46.6778 : •22.6 199 • 293 ; Dort skincare products Unilever; 20,195•4; 13.272 5 ; 52 2 79 ;OrPepperngularidletNwnges CadburySchweppes; 35,992.0; 37,934A ; -5.1 1~ 243 ;C6STVeetwork CBSInc.; 20,197.4; 15,911.9 ; 26.9 • Kotes: Oollan an Ie thawaetls. Maadartl aNdla Include ma9ulnts; Bunday ma9aaiea; leoat aad natieeal ea.rspapart: eatdear, eetwerk, spot, syndleated aed cable TV: eatlonal spot adie and xtwork radle. Swrec CawptHlre Media Reqtrtrnq. . _. _... _. . _ _ _. . ._. _,. _ - . AA ckut Ktvle 9rewa 2C5QZ37882

-35- DAILY NEWS • Sunday, November 12, 1995 NOV 1 3 W5 Investor set to take stock of the road to high yield By ANDREW LECKEY Q. I'm seeking stocks that pay high dividends. Which industry groups and individual stocks currently have the highest yields? A. Dividend investors have been plugged into the best-performing group for a long time. The electric utility group is highest in yield, with an average of 5.9r"r among representative stocks, accord- ing to the Standard & Poor's Index Products Group. Next is tobacco at 4.7(,r: tele- phones. 4.2,-i(,: international oil. 3.9r~. and douiestic oil, 3.9('r. 1tleanwhile, .the highest-yielding stock was NAB Asset Corp. with a dramatic 30';~ yield, according to Standard & Poor's Compustat data base. Following it were Ajay Sports Inc.. at 29.6~,~; Hallwood Energy Corp., 21.41'c; Smith Corona Corp., 16%; Jamaica Water Supply Co., 11.9%: Ryan Beck & Co. Inc., 10.4~,;; Long Island Lighting Co., 10.3%, and Polaris Industries Inc.. 10.1%. Always look beyond the yield to the company itself and its prospects. A higher yield can signal greater risk or the likelihood you may not get much stock price appreciation. Q. My company's insurance consul- tant surveyed the mutual fund mar- ket and came up with several funds of the American Funds for our 401(k) plan. What do you think of the Ameri- can Balanced Fund? A. This fund doesn't believe in the star system. instead dividing up re- sponsibilities to achieve its conser- vative goals. The $2.7 billion American Bal- anced Fund, up 20.3''~ over the past 12 months to rank in the upper one- third of balanced funds, utilizes four managers and a research team in its decision making. Its three-year average annual re- turn was 11.2%, ranking in the upper half of its peer group. Recently, more than half its portfo- lio was in stocks, about one-fourth in bonds and the rest primarily in cash. Its strategy emphasized financial stocks, cyclicals, health and utilities. "'L h iYiiS'AGrii>5~: < The largest equity holdings were Phili biorris Cos.,1<Zinnesota Mining & 1Manu acturing, Allstate Corp., Warner-Lambert, Phillips Petroleum and Wal-Mart Stores. "American Balanced Fund seeks low-priced stocks with good earnings and has overall goals of capital pres- ervation, current income and lonb term growth of capital and income," explained Kathleen Hartman, ana- lyst with the Morningstar Mutual Funds investment advisory. -"While some might say this fund is too conservative, it is nonetheless a fine example of the American Funds Group, which accumulates impres- sive assets through proven results without flashiness." It has a 5.8% load (initial sales charge) and $500 minimum initial purchase requirement. For individ- ual retirement accounts, the mini- mum is $250.

® Trouble Ahead? 7 Funds Take Few Chances in the Long Run Low Risk Is Easy To Get. The Trick Is Making Money. By TIMOTHY MIDDLETON F you've quit smoking, lost 10 pounds, cut ~ fat out of your diet and started exercis- ing, you know what it means to reduce risk. To take the same approach with your portfolio, you would strip away the most volatile investments - like technology-Iad- en mutual funds - that would probably plummet in a market downturn. What you would replace them with, how- ever, is not so obvious. "It's easy to buy a low-risk fund," said Thurman l.. Smith, editor of Equity Fund Outlook, a newsletter published in Boston. "But that's not the ultimate goal of an investor. You have to make some money." Though most low-risk stock funds have generated very low returns, at least a hand- ful have managed to keep pace with the stock market the Inst 10 years. Tltese ftmds are Intended fur the long run, not to dazzle in a roaring bull market. Most are in the growth and income and equity income cate- gorles, meaning they have steady income from dividends or other sources to cushion them should stock prices fall. Often adher- ing to a value style of investing they are what Mr. Smith called "good choices if you are In a defensive mood" And who isn't feeling a little defensive, what with the Dow Jones industrial average toying with new highs last week and with pundits noting how long it has been since the .last market correction (the last time the Dow industrials fell 10 percent was in 1990). ; Among the 340 diversified equity funds with 10-year records tracked by Morning- star Inc., the fund analyst in Chicago, 7 funds in the lowest 10 percent in risk have produced average returns of at least 14 percent a year - roughly even with broad market gauges. Tttere are many measures of risk. For this purpose, the proprietary scale from Morningstar was used. On Its scale, [he average for equity funds is 1.0, and to find the 10 percent of funds with the lowest risk. Morningstar searched for funds with a risk measure of 0.7 or less. The seven funds have fallen 30 percent less than the average equi- ty fund in down months over the last 10 years MUTUAL SERIES Run from the Short Hdts, N.J., headquarters of the investor Michael Price, the Mutual Series funds are perennial favorites of value investors. Three of the family's funds. Mutual Beacon, Mutual Qualified and Mutual Shares, made the low- risk, solid-performance list. Bill Mahoney, an investment adviser at the Rise Company in Oxford. Mass., said, ^What I love about Price's funds right now Is that they're really low in technology, so when the 20 percent correctiun hits, these funds shouldn't be hurt as much as other funds." Each of the three funds has produced average total returns of more than 15 per- cent in the last decade, and none have a 10- year Morningstar risk measure over 0.65. That means they have roughly halt the risk of the average diversified equity fund. The Mutual Series funds are virtual clones of each other, investing primarily in midsize companies. Mr. Price's strategy is to buy cheap and hold. He favors corpora- tions on the mend from failures and in the process of reorganizing, often buying huge stakes in such companies, like Sunbeam- Oster, and taking an active rule on their boards. It was Mr. Price who stampeded Chase Manhattan Bank into a merger with Chemical Bank eartier this year, by taking a big stake in Chase and publicly hounding its management to strengthen the stock price. T. ROWE PRICE EQUITY-INCOME "I love this fund," said Clint Willis, editor of the Independent T. Rowe Price Adviser, a monthly newsletter. "You have two forms of protection on the downside: They buy really cheap stuff, nnd you've also got above- average Inconte." Since 1993,the fund has been managed solely by Brian Rogers. Before that, Tont Broadus was co-manager. They share a zeal for value, buying large company stocks when out of favor and holding on. Among the top huldings are stocks once or continually despised: Philip Morris, Exxon, Upjohn. Mellon Ban . urnover was a scant 27 per- cent last year, and a minuscule 4 pe:cent in the last bear market, in 1990. "Sometimes they are early in their calls," Mr. Willis said, "but, judging from their record, not too early too often." The fund's performance record is third best on the low-risk list, with annual aver- age returns of 15.36 percent over 10 years. The Morningstar risk measure is 060, meaning that, in market downturns, this equity income fund has fallen 40 percent less than the average equity fund. Mean- while, the fund is yielding 3.2 percent, signif- icantly more than the Standard & Poor's 500 index- PUTNAM GROWTH AND INCOME Man- aged since 1993 by Anthony Kreisel and _- David King, the Putnam fund has attributes of both the value and the growth styles of • investing. Once or often-controversial names like Philip Morri~s, Eastman Kodak and Exxon abound in rts portfolio, but it also ~ has industrial stocks like General Mutors' and utilities like US West and Nynex, stocks that tend to rise and fall with the economy. I Having gatned an average of 14.86 percent , a year over the last decade, the Putnam. fund is ahead about 29 percent this year. Its managers called the big bond rally of 1995, at one point holding 6 percent of assets in Government bonds, then taking profits. The portfolio is about 90 percent invested in the S Not Superstars, but Steady Among the 340 diversified stock funds wdh long track records and low risk scores (0.7 or less on Morningstar's risk scale, which assigns 1.0 as the average), these seven have the best relurns S & P. 500 Pat Regnier, a Morningstar ana- lyst, called it "a good choice for investors 'who don't want to venture much beyond the S.& P. 50fl, but who can't quite bring them- selves to index." With a Morningstar risk measure of 0.55, the Putnam fund is much less volatile than the S,& P. index. 10.yur Annwl Y.ar-to-date annualized Category turnovar• retuma" RLk rtlumat Mutual Beacon Growth and income 70% 22 21 % 0 49 15.93% Mutual QtaAfied Growth and income 67 23.26 0 53 15.45 T. Rowe Price Eqttlty-htcotrte Equily income 36 2634 0.60 15.36 Mutual Shares Growth and income 66 2560 0.55 15.17 Putnam Fund for Growth and Incotrt. A Growth and income 48 28 89 0 66 14.86 Scudder Growth and Income Growth and income 42 23.70 0.70 14.28 MAP-Equity Growth 39 1947 0.68 14.27 ........... S&P 500 32.07 15.47 Sou•cn rl4vnnparar In[ 'As a percentage °Thraugh 1Through jot ol portlolio in the Nov 9 ~a Oct 31. last hscai year G,]11 MQ{Tf.X! 11.t7r,0Sr

By GLENN COLLINS A ND now, meet corporate America's newest cham- pion of shareholders' rights: Bennett S. LeBow, the sometime corporate raider who has been vilified by angry stockholders, accused of plundering their companies' assets and sued when his businesses went into bankruptcy. Mr. LeBow's crusade is even more incongruous because his target is Charles M- Harper, chairman and chief executive of the RJR Nabisco Holdings Corpora- tion. Mr- Harper has been a missionary of shareholder value, transforming every dollar's worth of stock in Conagra Inc-, which he took over in 1974, into the equivalent of f200, excluding dividends, by the time he left in 1992. But Mr. Harper has yet to work his magic on RJR since his arrival in 1993, four years after the company was the subject of the biggest leveraged buyout ever. Before Mr. LeBow made his move In August, RJR's share price 19nguished in the mid-$20's range, kept down largely by legal jitters over the company's tobac- co business and Mr. Harper's inability to raise the market share of its full-priced cigarettes, which have declined for a quarter-century. So Mr. Lellow, who happens to run his own tobacco company with a sliding market share, brought in his erstwhile archenemy, the financier Carl C. Icahn, in a bold bid to force a complete and immediate spinoff of RJR's food business, the Nabisco Holdings Corporation. The new partners hope to push up the combined stock value of the resulting companies and win a handsome dividend to boot for RJR's current roster of 450,000 shareholders- Some analysts say that quest is hardly quixotic. As the parties head for a seemingly inevitable proxy fight, Wall Street is already framing the struggle as a Mutt-and-Jeff contest between two tobacco-compa- ny-owning former smokers: Mr. Harper, the 68-year- old, 6-foot-6-inch food expert with his big rumbly voice and folksy gravity, and Mr. 1-eBow, the bearded, feisty, blunt-spoken 57-year-old deal maven who is, as he says pugnaciously, "5-foot-71,~ in shoes." Mr Harper has rebuffed the LeBow-Icahn pro- posal, calling it "imprudent° and "irresponsible," claiming that it would expose the company to dire legal liabilities and the prospect of court injunctions as welL as a plummeting credit rating. But Mr. LeBow says RJR executives are exces- sively risk averse, unnecessarily fearing bondholder suits if the company breaks its pledge not to do a spinoff before 1997. He claims they are also overly concerned about charges that a spinoff would hide assets from potential creditors if tobacco-liability lawsuits ever throw RJR Nabisco into bankruptcy- Managemenl's personal attacks against him "are just a smokescreen," he said, apologizing for the pun. C.tJ "In my opinion, without me and Carl, this company will ContinuedonPage 10> • ~eltj.'~~y CJl

NOV 1 3 Q5 t ~;O;A'd) Continued/rorn Page 1 never do a spinoff." That's not the case, said Steven F. Gold- stone, RJR Nabisco's new president. "I defi- nitely think the tobacco liability climate will change," he said, "and I see a spinoff as a viable possibility before 1998." Mr. LeBow and Mr. Icahn say that share- holders should not have to wait until then. The two insist they are interested only in a spinoff, and then "Carl and I will go away," as Mr. LeBow put it But Mr. Harper said simply, "They want to control the company," citing their plans to field a slate of pro-spinoff directors. He reserved some cutting language for Mr. LeBow: "He's doing this to enrich himself. LeBow is interested in lining his own pock- ets, but we are trying to build a company." Mr. LeBow is trying to persuade share- holders that his concern, too, is to build equity. And some analysts, like Roy D. Bur- ry of Oppenheimer & Company, believe that the new team of barbarians at the gate of RJR Nabisco has a chance to win the first battle, approval of a nonbinding shareholder resolution calling for the spinoff. Mr. LeBow is now busy working to present his slate of nine directors before a Nov, 20 deadline. Indeed, these days, former dealmakers at Drexel Burnham Lambert, which handled three of Mr. LeBow's trans- actions before the firm's demise, have been getting calls from potential board nominees asking about Mr. LeBow. "They're all phoning to check him out, to see if there's some harsh stuff they don't know about," said one former Drexel bank- er, who insisted on anonymity. "I tell them he's very smart, very purposeful, and you can't underestimate him as an adversary. There is a lot of bad stuff out there that has been said about him, but there are no funda- mental problems about the guy." Mr. LeBow knowa the difference between being aggressive and crossing the line, said another former Drexel dealmaker who has worked with him. "His deals were always very carefully lawyered," this dealmaker said. "Ben is a connoisseur of lawyers." Those who know him well portray Mr. LeBow as a man interested in highly com- plex deals who has a fondness for the rough and tumble and an outward simplicity of the what-you-see-is-what-you-get variety. The Philadelphia-born Mr. LeBow, who runs his holding company, Brooke Group Ltd., from Miami, "can be crude and he can tell the off-color )oke, but he's real," said a banker who has often worked with him. "He has no need for social acceptance, he's not trying to be some white-shoe guy to get into the Harmonie Club or Maidstone. And that gives him freedom and flexibility." In print, Mr. LeBow has been called ev- erything from a "master finagler" to "a weaselly raider" and a vulture, but he de- scribes himself as "a contrarian investor." He targets distressed companies because of the challenge, he said, but one Drexel alumnus commented that "bad companies attract less competition," adding: "There are fewer people stalking the halls." The way Mr. LeBow sees it, "the vulture guys buy distressed debt and beat up on companies to get value." "But I'm an equity guy," he said. "I want to get involved in managing compames and turn them around. If that's a vulture, then I'm a vulture." Some former shareholders do not accept his assessment. "He does not build compa- nies," claimed Robert S. Leventhal, the for- mer president of Western Union who left the company stormily in 1988 after Mr. LeBow took controL "I think LeBow pursued his own agenda at the expense of the company; " said Adol- phus B. Orthwein, who served on the credi- tors' committee of the New Valley Corpora- tion, the former holding company of West> ern Union that Mr. LeBow now heads. "I thought he wasn't listening to the sharehold- ers. But ironically, those shareholders who stayed with him made a lot of money." Indeed. Mr. Orthwein said, "I made good money in my investment," adding, " I was How Shareholders Have Fared ... Under Charles M. Harper 1. CottAFa Inc. [CAGI He became chief executive in 1974, when shares were trading at the equivalent of 14 cents a share, adjusted for splits, Company resumed dividend in 1976. Mr. Harper retired in September 1992, with the stock price at $30 and paying annual dividends of 52 cents a year. 2. RJR Nabisco Holdttss Corporation IRNI He was hired as chief executive in 1. Ocremut tcr TM Ne. Ycrt Timq May 1993, when the stock was at $28.125, adjusted for a subsequent reverse split. The company has paid out a total of $1.125 in dividends since then. Stock closed on Friday at $29.375. sa,.cs" corrpany rdvps. "wws critical of LeBow at the time but I have to say in retrospect that I pretty much admire the man." Some stockbrokers swear by Mr. LeBow. "I've been investing in Ben's companies for two or three years, and I have dozens of clients who have made enormous amounts of money doing that," said Tony Tedeschl, a broker in Philadelphia with Smith, Barney. "But you have to stay with him over the long haul," Mr. Tedeschi said. "People are tmpatient and they sell out and lose money and then they get angry." Now Mr. LeBow controls a pile of $300 million in cash that his companies received during the reorganization of New Valley under bankruptcy protection. On the down side, Brooke has $375 million of long-term debt and has reported no profits from opera- tions since 1992. Still, investors profited handsomely if they held onto the stock, which has more than trebled since the summer of 1994. The company's compounded rate of return to stockholders over the last four years - Its combination of stock price appreciation, dividends and interest earned on dividends - has been 29.3 percent. During the same period - dating to Feb- ruary 1991, when Kohlberg, Kravis, Roherts & Company took the company public again - RJR Nabisco's compounded rate of re- turn has been fairly flat. But if RJR has had difficulties with its giant R. J. Reynolds tobacco unit, Mr. Le- Bow has also struggled with Brooke's ciga- rette company, the tiny Liggett Group Inc. "Liggett is not doing very well," said Mr. Burry of Oppenheimer. "It's mostly a pri- vate label company now and ever since Marlboro Friday, that segment is contract- utg. e was re erring to the industry up- heaval set off by the Philip Morris Compan- iy~'s decision to slash the pnces of tts pre- mtum brands in April 1993. Mr. LeBow countered that Liggett's full- priced brands are holding their own, and that "we're not making a fortune, but we're a niche player with good cash flow." Under Bennett S. LeBow 1. M.A.I. Systams Corporatlon [NOW] Acquired for $11 a share in 1985. The company went public the following year for $15 a share and paid a $1 dividend in 1988. Company went bankrupt in 1993, wiping out the common stock. Reemerged in 1994 with all stock going to creditors. 2. Haw Valley Corporatfort (form.r Wastern Uttiort) (HVLY) He bought control at $2 a share in 1987. Company went bankrupt in 1993. Emerged from bankruptcy this year. Senior bondholders, like Carl C. Icahn, profited nicely. But original shareholders merely got to keep their shares, now trading at 36 cents 3. Att»riean Brands fAMBI By September 1988, when the shares were about $24, Mr. LeBow had a sizable stake and sought government permission to buy halt the company. He got it, but instead quietly sold his shares, profiting from the takeover premium in the stock. 4. Brooke Group (RGLI Those who bought Brooke Group shares when Mr. LeBow took it public in 1987 - just before the crash - have had a wild ride. But they profited if they held on. The company, which owned the Liggett tobacco company, went public at $12 a share. By 1990, after a very complex reorganization that critics said bene6tted Mr. LeBow at the expense of public shareholders, the price fell to just above $6. Then Brooke issued a contingent vaiue right, a complicated security that guaranteed that the stock - plus any dividends paid in the meantime - would be worth $21 by Nov. 15, 1993. In fact, the share price fell, but Brooke issued shares of Skybox International to its shareholders. and brandished an evaluation of those shares as being worth $14 each, or considerably more than Brooke shares were trading for, to avoid making good on the contingent value rights, It turned out Brooke was right. Skybox was acquired by Marvel earlier this year for $16 a share. Add in the value of a partial share in M.A.I. distributed to Brooke shareholders earlier this year - now worth $1.59 - and the current $8 price of Brooke Group, and investors have cash and securities worth $24.59 for each $12 originally invested In any event, investors have not always done well by Mr. LeBow, even It they stayed the course. For example, stock in Mr. LeBow's M.A.1. Systems Corporation, a minicomputer com- pany, went from $11 when he bought it from Asher Edelman in 1985 to zero when the company went bankrupt in 1993. It emerged from bankruptcy In 1994; creditors got all the stock in the company. 'N his bid for an immediate RJR spinoff, Mr. LeBow is asking shareholders to change the company's bylaws so that a vote of 25 percent would be enough to hold a special meeting to consider the split. Curiously, the bylaws of Mr. Lebow's own Brooke Group show that holders of 50 per- cent of the shares are needed to force a special meeting at that company. That means only Mr. LeBow could call a meeting, since he controls 57 percent of the stock. "I never looked at that," Mr. LeBow said. "We'll change our bylaws to 25 percent tomorrow." Shareholders in LeBow companies have been on the outside before. While many of those who stayed with him long enough have profited handsomely, he often did even bet- ter personally, critics have claimed. Some of the deals he arranged for man- agement services and other support func- tions "were between one of his companies and another he owned, and there is always a suspicion of unfair treatment when that happens," said Mr. Orthwein of the credi- tors' committee. Mr. LeBow has also received personal loans and unsecured credit lines from Brooke. "I am the first one to admit I have a high-flying life style," he said. "Look, do you think Henry Kravis lives terribly?" Last year, Mr. LeBow settled a suit brought by Brooke shareholders, repaying more than S20 million in personal loans, with interest, about half of which were unse- cured, he said. "I always had the intention of paying them back without the lawsuit," he said. "There was a repayment schedule." LDt.6o P Rcmero/Tl,e Nrw Yert Tlnw But Mr. LeBow's penchant for making ancillary deals with his companies has even been challenged by Mr. Icahn. In their sea- son of enmity in the New Valley reorganiza- tion, Mr. Icahn put pressure on Mr. LeBow to forgo more than $1 million a year in management fees, which he agreed to do. "Carl Icahn used to be his archenemy," Mr. Orthwein said. But after Mr. Icahn was paid 100 cents on the dollar for his New Valley bonds, "LeBow and Icahn were sud- denly big buddies," he added. About the 52-year-old Mr. Icahn, Mr. Le- Bow said: "We fought in New Valley, before we fell in love. Look, he had bonds, I had equity, that's going to happen. Now we both respect each other. I love the guy - it's a love thing." Love is not enough. Mr. LeBow and Mr. Icahn have promised in a Federal filing that almost qualifies as a prenuptial agreement that either would pay the other $50 million if he pulled out of the alliance and sold his stock back to the company. "Carl wanted that," Mr. LeBow said. "It's our no-green- mail pledge to each other." Mr. Icahn said that he and Mr. Ler4ow would not accept greenmail, or payment to abandon a hostile offer. In the past, Mr. LeBow has never accepted greenmail; Mr. lcahn has. RJR's Mr. Harper said that he wanted it to be clear that his company would not pay "greenmaii, blackmail or pinkmail." Mr. LeBow and Mr. Icahn have amassed 13 million RJR Nabisco shares, making their partnership the second largest block of RJR stock, after Fidelity Investments, the giant mutual fund company. On Friday, the stock closed at $29.375. To Mr. Icahn, the attacks of their opponents "are ad homi- nem, and have nothing to do with the value of RJR Nabisco," Shareholders should know "Ben and I are shareholders and we want to do the best for ourselves." Mr. LeBow certainly has done that. He declined to state his personal worth, though it is at least $47 million, the value of his 57 percent ownership of Brooke. 'Carr'd)

-39- 'Cof}{'(ij Mr. Lettow promised RJR shareholderi that If he and Mr. Icahn win the fight an6 install directors, he will take no personal loans or "affiliate transactions," he said, "without outside investment-banker ap- proval." He said that his personal debt is now "zero, except for $1,000 on my Visa card.'• He contrasted his RJR share purchases with his 57 percent ownership of Brooke: "Look, I won't be owning a majority of stock at RJR. I'm not going to be able to do bad things to the company." But Mr. Burry said: "If he wins the proxy fight, and gets control of the board, then the shareholders would suffer. When these guys have gotten control of companies, outside shareholders have not benefited." M R. LEBOW'S aggressive style cer' tainly has prompted his share of lawsuits over the years, including one even brought by a downstairs neighbor, Ed Heil, in a condominium on Fisher Island in Miami. Mr. Heil, a New Valley sharehold. er who declined to be interviewed, became an anti-LeBow gadfly on the New Valley. creditors' committee. "I used to joke that my plumbing might accidentally flood his apartment," Mr. Le- Bow said, adding that he recently moved from the condo for reasons unrelated to Mr. Heil. Mr. LeBow was also sued over his 1993 spinoff of Skybox International, Brooke's sports trading-card subsidiary. To reassure unhappy investors when he reorganized Brooke in 1990, Mr. LeBow offered the com- pany's public shareholders instruments called contingent value rights, or C.V.R.'s, that guaranteed the $12 stock would be worth $21 in 1993. The C.V.R.'s had inverse value to the stock. Since the C.V.R.'s were traded separately, some hedge funds bought them up, acting in effect as short,sellers, betting there would be a downturn. But Mr. LeBow wound up spinning off Skybox International to satisfy the promise. "The shareholders who stuck with us did very well; " he said. In the process, he also successfully fought off lawsuits from C.V.R. holders and others who charged that he had tried to protect the assets of Brooke and its Liggett subsidiary from creditors through the spinoff. It was this experience that emboldened him to believe that RJR Nabisco could survive similar spinoff litigation, just as he had. A spokeswoman for RJR Nabisco says the situations are not comparable. Plaintiffs' lawyers would be more likely to assault giant RJR than Brooke Group, she argued. Also different this time, she said, was the threat from a class-action suit that could bankrupt all tobacco companies and which could be invoked by those blocking a spinoft. In 1989 Mr. LeBow won more negative headlines when he failed in a hostile bid to take over Prime Computer Inc., which found a white knight and later went out of business. "They failed not because of what I did," he said, "but because of the problems in the minicomputer industry at that time." "It was Prime that supposedly made me a corporate raider," he added, "but it was my only raid." Before that, Mr. LeBow had begun amassing shares of American Brands, another tobacco company, after it would not agree to be merged with his Liggett unit; the stock price shot up and Mr. LeBow sold out, making a profit of what is believed to be $30 million. For his part, Mr. Harper dismissed Mr. LeBow's comments about his supposed risk- averse nature, saying that as a chief exectr tive it has been "my job to take risks." He cited five acquisitions as "make-or-break deals" as chief executive of Conagra. He also introduced Conagra's successful Healthy Choice line of reduceddat foods that "would have sunk me, though not the com- pany" if it had failed. Some tobacco analysts, like Gary D. Black of Sanford C. Bernstein & Company, say that a strong pro-spinoff vote by share- holders this winter could make the Nabisco board flinch, forcing it to boost the dividend in a big way or hasten its spinoff timetable. But Mr. Harper says he is digging in. "Quoting Churchill," he said, "we shall fight on the beaches, we shall fight on the landing- grounds, we shall fight in the fields and in the streets." C NOV33 a

-4')- PHILIP MORRIS COMPANIES INC. FOOD THE WALL STREET JOURNAL MONDAY, NOVEMBER 13, 1995 FDA Investigates : T hether Food Lion (7ot Irtspection Tip By MAxTxn BRANNIGAN Staff Reporter of TuE WALL S rneE•r Jovxrrwr. The U.S. Food and Drug Administra- tion confirmed that it is investigating allegations that an FDA employee leaked information to Food Lion Inc. about which of its.stores were to be included in a 1994 inspection that resulted in high rat- ings by the agency. FDA spokesman Don McLearn said that the investigation, reported Friday by the Associated Press, has been going on for several months and is focusing on whether an FDA employee "tipped off" company officials about where inspections would occur. "The allegation is that Food Lion had foreknowledge of our inspections and we're investigating that allegation," Mr. McLearn said. The allegation that Food Lion, a Salis- bury, N.C.-based supermarket chain, was tipped off surfaced in a lawsuit filed in state court in North Carolina by several current and former Food Lion supervisors who are alleging age discrimination against the company, according to their attorney, Joyce Brooks. Ms. Brooks, based in Charlotte, N.C., said several of her clients recently have been interviewed by the FDA as part of its investigation. In 1992, ABC's "Prime Time Live" reported that Food Lion used unclean and deceptive procedures for handling meat and fish, accusations the company stri- dently denied. Food Lion has been dogged ever since by allegations - mostly from union activists-that its stores aren't sani- tary. Last year the company eagerly had pointed with pride to the FDA's bill of clean health. Food Lion said the allegation that it received pre-warning about the inspec- tions is totally without merit. "There was no impropriety on Food Lion's part, and we believe there was no impropriety on the FDA's part," Chris Ahearn, its manager of corporate communications said. Ms. Ahearn said the allegation about inspection improprieties was made public at a July 1995 news conference by Con- sumers United with Employees, which is a coalition of trade union and other organi- SAN ANTa(v1O EXPRESS-NCWS zations that has been trying to discredit the company. CUE - citing the Food Lion employees' age-discrimination suit - also had urged the FDA to look into the allega- tion of inspection impropriety in a letter last spring, according to FDA's Mr. McLearn. Robert Harbrant, who is presi- dent of Food and Allied Service Trades, a department of the AFL-CIO, and a spokes- man for CUE, couldn't be reached for comment. NOY:1 3.1396 to set'the wa w Kraft The combincs 1'sce y y P[cantc 'aucc and Vc7viceta's Pace on new venture uritet! 1'rocess Ch6ee SpeakinY of reglo»at foitid, Pace Fooda - a Sdn Antonio unit N JAWsed Carn of CAmden . pread. The jWntprur:otlo~t rettocta a proceas ot 1t c owh: bo- btanding Itnk4 esial ui3W : . , SounCo, - and,Knft M , producta owmdby. ov.*r: . hti 10 o£F o-rtn~i'atd, ,ZII',rm W 1; pbegut XMpWIlei, i.- :.i..; crl airing new•toleviaiQn I ; ! .- NouioLy, Unc caMp& s : Q , actvcrtising promotu'tg 1ts prevlously anncwnced jotnt.• venture product: Pam , Velveeta . Pieante • on Quoeq. _ markcting t~tncy ha,° r~ ig.' •Tex~a totECh. Temerli ' cCls~n • ir;!>esed,1n napaa,Wtv;bWingr ' in exceac of =550 millln&•. • ~ cn v ~ ~

-41- THE WALL STREET JOURNAL MONDAY, NOVEMBER 13, 1995 MARKETING & MEDIA PBcG Withdraws Some Talk Shows' Advertisements By SALLY GOLL BEATrY And RAau NAarserri Staff Reporters of THE WALL $TREET JOURNAL Procter & Gamble Co. is pulling its ads from some of TV's hottest talk shows, adding its mammoth clout on Madison Avenue to a growing list of big advertisers fleeing from the racy shows. Elizabeth Moore, a spokeswoman for the consumer-products giant, confirmed that P&G withdrew all advertising from several nationally syndicated. television talk shows at the beginning of October. She added that the ad budgets involved were "in the millions of dollars" but declined to elaborate or identify the shows. One industry executive familiar with P&G's move said the shows are: "Ger- aldo," hosted by Geraldo Rivera, "Sally Jessy Raphael," "The Montel Williams Show," "Charles Perez" and "Jerry Springer." P&G talked to producers and distribu- tors of talk shows in spring 1995 and asked them to "raise their standards and improve content" based on guidelines de- veloped by the company, Ms. Moore said. "We don't feel like controversial sub- jects should not be on talk shows," Ms. Moore added. However, she said the com- pany does want to avoid shows that feature gratuitous sex, foul language and refer- ences to violence. Questions over content could increase this month as producers scramble to at- tract viewers during the coming sweeps period, during which ratings levels are used to help set advertising rates. P&G is in discussions with producers and distributors of other talk shows that it currently advertises on, informing them that the company "clearly expects to see changes within a reasonable time period," Ms. Moore added. She declined to provide a deadline for any future action by P&G. • Efforts to reach the producers of the NOV 1 3 1a5 talk shows on P&G's list over the weekend didn't yield any comment. CBS News re- ported last week that P&G was withdraw- ing some ads. The move comes amid a campaign by. Sen. Joe Lieberman (D., Conn.) and for- mer Secretary of Education William Ben- nett who together sent letters last week to pressure big media companies to stop supporting daytime talk shows. The let- ters, which were sent to the heads of Time• Warner Inc., the Tribune Co., Sony Cprp. of America, a unit of Sony Corp., and others, urge the executives to "reconsider your support of trash TV talk." P&G's action follows Sears, Roebuck &, Co.'s move in the last year to cut its ads in some daytime talk shows, calling them "increasingly controversial" and citing, fears of "alienating customers." Another giant advertiser, Unilever NV, said it pulled its ads from two unspecified talk shows earlier this year. Also this year, Unilever saw its advertising practices at- tacked by the American Family Associa- tion in a full-page New York Times ad that urged a boycott of Unilever brands. Monday, November 13, 1995 • DAILY NEWS Can we talk? Cincinnati: John Leo's recent Op-Ed column about TV talk shows suggests that Procter & Gamble, a major advertiser, was unwilling to discuss t e increasing sensationalism. This, is an outrageous distortion. I would like to set the record straight:  P&G is a responsible advertiser. In the spring, we encour- aged the producers and distributors of all talk shows with whom we do business to raise their standards. We subsequently dis- continued advertising in four shows. We are continuing to work with the other producers to improve content.  Because programing varies widely. P&G spends hundreds of thousands of dollars annually to review program content be- fore making advertising decisions. We regularly decline adver- tising opportunities based on content. Last year, we pulled ad- vertising from nearly 1.000 episodes of talk shows. We will continue to review closely all programing we sponsor and pull our advertising when content is inconsistent with our guidelines. I doubt you will find another company that puts more effort into making responsible advertising decisions. Robert L Wehliitg, senior vice president .

-42- ADVERTISING AGE NOVEMBER 13. 1995 What's in it for women? M ore women are going online. According to a new survey from Nielsen Media Research and CommerceNet, one in three Internet us- ers today is a woman. That's good news. Then there's the bad news: What is online now may not keep them there. There's growing awareness of the problem among advertisers and online media developers. Last week's conference in Washington on "How to Market to Women Online" is evidence of that. Moreover, to major marketers that closely watch de- velopment of the online world, this issue is a funda- mental one. Procter & Gamble Senior VP Robert We- hling was brunt in his assessment of the problem ear- lier this fall: The "biggest reason" the new media aren't further along as relates to advertising is that "there hasn't been enough attention up to now to bringing women into the new-media environment. Meaningful content for women has got to be a critical factor." Nov13 VE In recent months, several World Wide Web sites that directly target women have popped up-from marketers such as clothing retailer Express, health & beauty aids marketer Bristol-Myers Squibb, maga- zine publisher Lang Communications and food mar- keter Kellogg Co. But segregating information for women may be a big mistake. Women want to feel safe online, but they don;t want to be pushed into a corner. Why not work to make the entire online world more comfortable for everyone? Marketers that hang back from online media because they think women aren't there will miss the boat. If the goal is to have new media reach more women, then it behooves the interested marketer to support the online media in searching for new ways of doing so. Choosing to wait for some day in the future when there's some "critical mass" of women online-what- ever that might be-is a critical error. El

PHILIP MORRIS COMPANIES INC. -43- BEER 'DEMI9iPo5i Ip! 12 69S STREET SMARTS Nc rsl: ject Jay Lano zinged Coors last w.ek, notiag that beeo asked tn or a use recy cled sewer water to brew its beer there..Now, you could follow that sat• up with any number of puneb•lines about Miller, but l.eno added: "Don't we already have have'an alcflholic beverage made from sewer water? It's called iima." THE NEW YORK TIMES, MONDAY, NOVEMBER 13, 1995 Conagra Completes Offer for Malting By Bioomberg Business News OMAHA, Nov. 12 - ConAgra Inc. said Saturday that it received 97.5 percent of' Canada Malting Compa- ny's outstanding shares, completing a $405 million (Canadian) offer for the brewer. . Conagra received 19.44 million Canada Malting shares and expects to buy the remaining shares this year. The company said payment for shares would start Wednesday. Canada Malting, which makes malting barley for brewing, recom- mended on Oct. 30 that shareholders accept Conagra's sweetened acquisi- tion bid of $405 million (Canadian). Conagra's earlier bid was $395 mil- lion (Canadian). Canada's two largest brewers, Molson Companies and Interbrew's Labatt Brewing Company, each aerPad tn sell their 19.6 percent stakes in Canada Malting to Cona- gra, which is based in Omaha. It makes brand-name grocery prod- ucts like Healthy Choice cereal and Orville Redenbacher pppcorn. Malting has been a growing part , of Conagra's grain-processing busi- ness since acquiring Australian- based Barrett Burston International about three years ago. NOV 1 3 95 k