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4.2 HOP' TO SET UP A TOBACCO NETWORK - U.S. HEARINGS RET4ARKS OF JOHN D. KELLY INFOTAB WORKSHOP

GOOD AFTERNOON. MY TASK TODAY IS TO DESCRIBE THE WAY A TOBACCO NETWORK IS USED. MY DISCUSSION WILL FOCUS ON THE OPERATION OF THE TOBACCO ACTION NETWORK, COMMONLY REFERRED TO AS TAN. BEFORE WE GET INTO THE WAY TAN OPERATES, LET ME PROVIDE SOME NECESSARY BACKGROUND INFORMATION. TAN'S BASIC PURPOSE IS TO IDENTIFY, EDUCATE, ORGANIZE AND MOBILIZE THOSE INDIVIDUALS WHO ARE PRO-TOBACCO, FOR TWO PRIMARY GOALS: (1) TO BE A LEGISLATIVE SUPPORT SYSTEM FOR OUR PROFESSIONAL LOBBYISTS AT THE FEDERAL, STATE AND LOCAL GOVERNMENT LEVELS WHO ARE WORKING TO DEFEAT LEGISLATION THAT WOULD RESTRICT OR PROHIBIT THE USE OF TOBACCO PRODUCTS -- IN OTHER WORDS, KILL BILLS. (2) A LONGER RANGE GOAL IS TO HELP GENERATE A SENSE OF COMMON INDENTITY AND PRIDE AMONG EVERYONE WITH PRO-TOBACCO INTERESTS, WITH THE ULTIMATE GOAL OF CREATING A MORE POSITIVE IMAGE OF TOBACCO AND THE TOBACCO FAMILY. TAN ACTIVITIES ARE CURRENTLY DIRECTED BY THE TOBACCO INSTITUTE'S 22 AREA DIRECTORS WHO ARE LOCATED THROUGHOUT THE U.S. WHO MONITOR STATE AND LOCAL LEGISLATION IN ALL 50 STATES. THE AREA DIRECTORS REPORT TO ONE OF FOUR REGIONAL VICE PRESIDENTS WHO ARE BASED HERE IN WASHINGTON.

CURRENT TAN MEMBERSHIP HAS BY CHOICE LEVELLED OFF AT ABOUT 85,000 VOLUNTEER. NATIONWIDE. THE DISPERSAL OF THESE MEMBERS RANGE FROM A FEW HUNDRED IN OUR SMALLEST STATES TO SEVERAL THOUSAND IN THE LARGEST STATES. MANY OF THESE VOLUNTEERS COME FROM THE TRADITIONAL TOBACCO-RELATED FAMILY -- TOBACCO FARMERS, MEMBER COMPANY PERSONNEL, WHOLESALERS, VENDORS, RETAILERS AND OTHERS WHOSE LIVELIHOODS ARE DIRECTLY LINKED TO THE TOBACCO INDUSTRY. BUT THERE ARE OTHER EQUALLY DEDICATED INDIVIDUALS WHO MAKE UP THE TOBACCO ACTION NETWORK -- GROCERS, RESTAURATEURS, AND OTHERS WHOSE BUSINESSES ARE AFFECTED BY ANTI-TOBACCO LEGISLATION. AND THERE ARE THOSE TAN VOLUNTEERS WHO DON'T RELY ON TOBACCO SALES FOR A LIVING. MANY ARE TOBACCO CONSUMERS. SOME ARE EVEN NONSMOKERS. THEY'VE JOINED TAN BECAUSE THEY BELIEVE IN THE PRINCIPLES OF FREEDOM OF CHOICE. THEY OPPOSE FURTHER GOVERNMENT OVER REGULATION IN THE AREA OF PERSONAL BEHAVIOR. WHILE ITS MEMBERSHIP IS COMPRISED OF DIVERSE GROUPS, TAN HAS ALWAYS PROVIDED A UNITED FRONT IN OPPOSITION TO ANTI-TOBACCO LEGISLATION. WHEN THE NEED ARISES, TAN MEMBERS DELIVER A STRONG, PROMPT RESPONSE TO THE CHALLENGES FACING THE TOBACCO INDUSTRY AND ITS CONSUMERS.

WHEN A TAN VOLUNTEER IS RECRUITED, HE OR SHE PROVIDES THE AREA DIRECTOR WITH KEY INFORMATION, INCLUDING: -- HOW THEY ARE ASSOCIATED WITH THE TOBACCO INDUSTRY, AND -- THE NAMES OF ELECTED OFFICIALS AT THE FEDERAL, STATE AND LOCAL LEVELS WHOM THEY KNOW PERSONALLY. THIS LATTER INFORMATION IS EXTREMELY VALUABLE TO THE SUCCESS OF MANY TAN MOBILIZATIONS. AS YOU WILL SEE, PERSONAL CONTACTS WITH LEGISLATORS ARE OF MAJOR IMPORTANCE. (PAUSE) LET'S GET BACK TO THE TASK AT HAND -- HOW TO USE A TOBACCO NETWORK. FOR THIS DISCUSSION, I WILL FOCUS ON AN ACTUAL TAN MOBILIZATION IN THE SPRING AND SUMMER OF 1982. THE TARGET OF THIS MOBILIZATION WAS HR 4961, A BILL IN THE U.S. CONGRESS THAT INCLUDED A PROVISION INCREASING THE CIGARETTE TAX FROM 8 TO 16 CENTS PER PACK. OUR OBJECTIVE IN THIS MOBILIZATION WAS TO GENERATE CONGRESSIONAL OPPOSITION TO THIS INCREASE, WITH THE ULTIMATE GOAL OF HAVING THE CIGARETTE TAX PROVISION AMENDED OUT OF THE BILL.

AFTER REVIEWING THE VARIOUS STATE STRATEGIES FOR DEALING WITH THIS NATIONAL TAX INCREASE, I'VE SELECTED A SPECIFIC EFFORT CARRIED OUT IN THE STATE OF OHIO. KEEP IN MIND THAT OHIO'S MOBILIZATION STRATEGY IS NOT UNIQUE. JUST THE OPPOSITE IS TRUE. THE OHIO MOBILIZATION IS REPRESENTATIVE OF THE CAREFULLY PLANNED APPROACH USED IN MANY STATES DURING THIS AND OTHER SIMILAR EFFORTS. IN THE OHIO MOBILIZATION OUR FEDERAL LOBBYISTS ASKED US TO CONCENTRATE ON FOUR MEMBERS OF CONGRESS: SENATOR HOWARD METZENBAUM SENATOR JOHN GLENN REPRESENTATIVE DONALD PEASE REPRESENTATIVE WILLIS GRADISON THEY FURTHER ASKED US TO GIVE PARTICULAR ATTENTION TO REPRESENTATIVE GRADISON, A REPUBLICAN AND A MEMBER OF THE TAX WRITING WAYS AND MEANS COMMITTEE. REPRESENTATIVE GRADISON WAS KNOWN TO BE IN GENERAL SUPPORT OF THE ENTIRE TAX BILL AS IT WAS ORIGINALLY WRITTEN IN THE SENATE. OUR RESEARCH ON GRADISON YIELDED THE FACT THAT WITH THE DECENNIAL REAPPORTIONMENT OF CONGRESSIONAL SEATS GRADISON WOULD BE INHERITING CONSTITUENTS FROM 2 TOBACCO GROWING COUNTIES -- BROWN AND CLERMONT. THEREFORE, THESE TOBACCO GROWERS WOULD PLAY A KEY ROLE IN INFLUENCING THEIR SOON-TO-BE CONGRESSMAN.

OUR OHIO AREA DIRECTOR, WORKING IN CONJUNCTION WITH HIS REGIONAL VICE PRESIDENT, DEVELOPED A STRATEGY THAT INCLUDED -- PERSONAL VISITS AND PUBLIC MEETINGS WITH GRADISON -- DEVELOPMENT OF VARIOUS COALITION GROUP SUPPORT, AND -- DEVELOPMENT OF MAILGRAM AND PHONE BANK OPERATIONS. HIS FIRST GOAL WAS TO ARRANGE MEETINGS BETWEEN GRADISON AND THOSE INDIVIDUALS WE KNEW HAD STRONG PERSONAL CONTACTS. CONTACTS USED AT THIS INITIAL STAGE INCLUDED JERRY LERNER, PRESIDENT OF A MAJOR REGIONAL WHOLESALER WHO RESIDES IN GRADISONS DISTRICT AND WHO, INCIDENTALLY, IS OUR 1982 NATIONAL DISTINGUISHED TAN ACTIVIST. OTHER CONTACTS INCLUDED A REPUBLICAN PARTY OFFICIAL, THE PRESIDENT OF A MAJOR OHIO BANK, AND THE STATE SENATOR FROM BROWN AND CLERMONT COUNTIES. THESE CONTACTS WERE FULLY COACHED AND THAN ASKED TO DETERMINE GRADISON'S STANCE ON THE TAX BILL; DISCUSS THE IMPACT OF THIS BILL ON THEIR PARTICULAR BUSINESSES; AND PRESENT GENERAL ECONOMIC IMPACT INFORMATION REGARDING TOBACCO IN OHIO WHICH HAD BEEN PREPARED AT THE TOBACCO INSTITUTE. FROM THESE EARLY MEETINGS, WE DETERMINED THAT SUBSTANTIAL CONSTITUENT CONTACT WOULD BE NEEDED TO INFLUENCE HIS POSITION. IN OTHER WORDS, GRADISON WAS DEFINITELY LEANING THE OTHER WAY.

THE AREA DIRECTOR IMMEDIATELY ARRANGED A SECOND ROUND OF MEETINGS BETWEEN GRADISON AND OTHER PERSONAL CONTACTS AS A WAY OF REINFORCING THE MESSAGE DELIVERED BY THE FIRST GROUP. THIS GROUP CONSISTED OF SEVERAL FARM BUREAU OFFICIALS, REPRESENTATIVES FROM MAJOR EMPLOYERS IN OHIO, A PRO-TOBACCO CONGRESSMAN FROM OHIO AND A STATE SENATE OFFICIAL. FOLLOWING THE PRIVATE MEETINGS, HE TOOK OUR CAMPAIGN TO THE PUBLIC. WORKING WITH FARM BUREAU AND TOBACCO COMPANY OFFICIALS, HE ARRANGED FOR 2 PUBLIC MEETINGS WHICH GRADISON ATTENDED -- ONE IN BROWN AND ONE I N CLERMONT COUNT I ES • MEETING PARTICIPANTS INCLUDED LOCAL TOBACCO GROWERS, BANKERS AND OTHER CONSTITUENTS WHO WERE DIRECTLY OR INDIRECTLY DEPENDENT ON TOBACCO FOR THEIR LIVELIHOODS. LOCAL AND REGIONAL NEWS MEDIA WERE ALSO PRESENT, ALONG WITH LOCAL REPUBLICAN LEGISLATORS AND PARTY OFFICIALS. DURING THE MEETINGS, EACH CONSTITUENT GROUP PRESENTED AN ARTICULATE AND FACTUAL SUMMARY OF THE ADVERSE EFFECTS OF A CIGARETTE TAX INCREASE. A SECOND IMPORTANT ELEMENT IN THIS MOBILIZATION WAS COALITION GROUP SUPPORT. MORE THAN 21 ASSOCIATIONS, COMPANIES AND BUSINESSES PROVIDED OUTSTANDING SUPPORT IN THIS EFFORT. THE GEORGIA-PACIFIC COMPANY, FOR EXAMPLE, PLACED US IN CONTACT WITH THEIR OWN FEDERAL LOBBYIST IN WASHINGTON AND HELPED GENERATE MAILGRAMS AND LETTERS TO GRADISON. NJ a r ~ ~ r ~ ~ ~

THE OHIO MUSIC AND AMUSEMENT ASSOCIATION CONDUCTED MEMBERSHIP MEETINGS THAT FOCUSED ON THE TAX BILL AND, FOR THE FIRST TIME, ENCOURAGED THEIR MEMBERS TO ENROLL IN TAN. WE ALSO RECEIVED EXCELLENT SUPPORT FROM THE MORE TRADITIONAL COALITION GROUPS, INCLUDING THE OHIO ASSOCIATION OF TOBACCO AND CANDY DISTRIBUTORS AND THE AUTOMATIC MERCHANDISING ASSOCIATION. ADDITIONALLY, MOST OF THE COMPANIES WE TALKED TO ENCOURAGED THEIR OWN EMPLOYEES TO SEND MAILGRAMS OPPOSING A TAX INCREASE TO GRADISON AND OTHER MEMBERS UF THE OHIO CONGRESSIONAL DELEGATION. OUR WORK WITH THESE COALITION GROUPS IMPROVED BOTH THE EFFECTIVENESS OF OUR MOBILIZATIONS AND OUR RELATIONSHIP WITH SEVERAL GROUPS WHICH HAD NOT SUPPORTED OUR ACTIVITIES IN THE PAST. ANOTHER KEY ELEMENT IN THE MOBILIZATION WAS MAILGRAM AND PHONE BANK OPERATIONS. MORE THAN 2,600 OHIO TAN MEMBERS RECEIVED MAILGRAMS FROM TAN HEADQUARTERS IN WASHINGTON, URGING THEM TO CONTACT THEIR MEMBERS OF CONGRESS. THE MESSAGE WAS SHORT AND TO THE POINT: IF YOU'RE OPPOSED TO AN INCREASE IN THE CIGARETTE TAX, SEND A MAILGRAM FREE OF CHARGE TO YOUR CUNGRESSMAN•

THE RESPONSE WAS EXCELLENT. THE 2,600 MAILGRAMS WE SENT OUT TO OHIO TAN MEMBERS GENERATED MORE THAN 3,200 MAILGRAMS FLOWING INTO OHIO'S LEGISLATORS. PART OF OUR SUCCESS CAN BE CREDITED TO A SEVEN-DAY PHONE BANK OPERATION IN WHICH THE AREA DIRECTOR AND A NUMBER OF HIS MORE ACTIVE VOLUNTEERS ATTEMPTED TO CALL EVERY OHIO TAN MEMBER WHO RECEIVED A MAILGRAM. ALL TOLD, THEY CONTACTED MORE THAN 1,900 INDIVIDUALS BY TELEPHONE. THE AREA DIRECTOR ALSO DEVELOPED A SPECIAL PHONE BANK OPERATION IN GRADISON'S FUTURE DISTRICT IN BROWN COUNTY. IN THAT ACTIVITY A LOCAL TAN MEMBER VOLUNTEERED THE USE OF HIS REAL ESTATE OFFICE AND TELEPHONES FOR THE ENTIRE SEVEN-DAY OPERATION. OTHER MISCELLANEOUS ACTIVITIES CARRIED OUT BY TAN MEMBERS INCLUDED A LETTER-TO-THE-EDITOR EFFORT TARGETED TO NEWSPAPERS IN GRADISON'S DISTRICT, AND THE DISTRIBUTION OF SPECIAL FLYERS TO INFORM RETAILERS ABOUT THE MAILGRAM PROGRAM. NOW THAT I'VE HIGHLIGHTED THE MAJOR ELEMENTS OF THIS MUBILIZATION, LET'S LOOK AT THE RESULTS. REPRESENTATIVE GRADISON WAS INITIALLY UNDECIDED ON THE TAX BILL AS WELL AS ON THE SPECIFIC EXCISE TAX PROVISION. FROM OUR EARLY PERSONAL CONTACTS, HE WAS REMINDED OF THE IMPACT OF THIS SOON-TO-BE-ACQUIRED TOBACCO GROWER CONSTITUENCY•

THROUGH OUR DIRECT CONTACTS, MAILGRAMS AND OUR PUBLIC MEETINGS, HE WAS PERSUADED TO PROPOSE A 75 PERCENT REDUCTION IN THE SIZE OF THE TAX INCREASE. GRADISON URGED HIS COLLEAGUES IN THE HOUSE TO SUPPORT HIS PROPOSAL. ON THE SURFACE, YOU MAY NOT CONSIDER THIS MUCH OF A VICTORY FOR OUR SIDE. BUT WHEN ONE CONSIDERS THAT GRADISON WAS EXPECTED TO GIVE HIS FULL SUPPORT TO THIS TAX PACKAGE, HIS CHANGE OF HEART ON THE CIGARETTE TAX WAS MOST IMPRESSIVE. UNFORTUNATELY, GRADISON'S PROPOSAL, ALONG WITH OTHER PRO-TOBACCO AMENDMENTS FROM OTHER HOUSE MEMBERS, WERE NOT ADOPTED. IN THE END, THE FEDERAL EXCISE TAX WAS INCREASED FROM 8 TO 16 CENTS PER PACK. ALTHOUGH WE LOST THIS TAX FIGHT, WE SURPRISED MANY FOLKS ON CAPITOL HILL. WITH THE HELP OF TAN, WE CAME VERY CLOSE TO DEFEATING A TAX BILL THAT HAD THE STRONG, ACTIVE SUPPORT OF THE REPUBLICAN ADMINISTRATION AND THE DEMOCRATIC PARTY LEADERSHIP. ALTOGETHER, WE GENERATED MORE THAN 90,000 MAILGRAMS TO THE PRESIDENT AND MEMBERS OF CONGRESS. IN OHIO, TAN GREATLY IMPROVED IT'S TIES WITH COALITIONS AND LEGISLATORS AND THEIR STAFFS. THESE TIES HAVE ALREADY PROVED INVALUABLE DURING OUR MOBILIZATIONS IN 1983. IN CONCLUSION, ONE THING MUST BE STRESSED. THERE IS NO SINGLE STRATEGY FOR FIGHTING ANTI-TOBACCO BILLS AT THE FEDERAL, STATE AND LOCAL LEVELS.

MAILGRAMS, PERSONAL CONTACT WITH GOVERNMENT OFFICIALS, PETITIONS, LETTER-WRITING CAMPAIGNS AND PHONE BANK OPERATIONS ARE ALL IMPORTANT ELEMENTS WHICH CAN BE USED BY OUR TOBACCO ACTION NETWORK. BUT IN EACH INSTANCE OUR PROFESSIONAL STAFF MUST DETERMINE THE MUST EFFECTIVE STRATEGIES AND TACTICS TO BE USED FOR THAT AREA AND THOSE CIRCUMSTANCES. AN EFFECTIVE STRATEGY SUCH AS THE ONE USED IN OHIO, COMBINED WITH A HIGHLY MOTIVATED GROUP OF TAN VOLUNTEERS, HAS RESULTED IN THE DEFEAT OF HUNDREDS OF ANTI-TOBACCO BILLS DURING THE PAST FIVE YEARS. OUR CONTINUED SUCCESS WILL DEPEND ALMOST ENTIRELY ON THE ABILITY OF THE INDUSTRY TO MOBILIZE LEGISLATIVE SUPPORT BOTH FROM TAN VOLUNTEERS AND BY SOLICITING THE HELP OF INFLUENTIAL INDIVIDUALS AND ALLIED BUSINESSES AND INDUSTRIES FROM OUTSIDE THE TOBACCO FAMILY. WE HAVE MET THE CHALLENGE IN THE PAST. WE WILL CONTINUE TO 00 SO IN THE FUTURE. THANK YOU.