Tobacco Documents Online

S7'AT!':ci IJ1S'hitl CT COURT t,'OR T'i.Ll Da STitYCT Ol, oitEGON '1'O'3A;.:,::U Ci>iiP, , OreE.;on j(:}Yi C:lbEi I"ACIF'1Ci `.TUDACC0 LtC)i,+'~•;d: ~~', P2 " :1_n tla.ff, , 'i'H:: k;v'i;R:iCAN TOBACCO COIf!'A:TY , 1:NC. corpov.atio:a; AN:E.RaCAN } RAIv~~`~, :CNC., a Nek -JerseSr corporation, et al, Defendants. Civil No. 70-86 , llH:POS]:TI:ON OF' STANLEY E, HAF,rflIAN Taken in Uenalf of Defendant The American Tobacco Company,.Inc. American Brand;, Inc. ~ . ~ Volume VII P~.,€;es 804 - 982 Aug,ust 12, 1970 and MIC1'IELE'i, SOWERS, JOHNSON & COMPANY COURT REPORTERS 7" Pacifit Duilding, Portlend, Oregon 97204 . Phone ?•281,671 •

Volume VII 4 S 7 ~ .,;xamin.:ati.on i by Mr. Griesa. ---______-___.,__ --.-.833 to 927 l:;xa.a7ina+..ion by 'lr . '.Icl,17en ---______.._-r.._____ --_927 to 964 1,xi,mination hy t1r.. Hart to 982 INDI,X OT' EXHIBIS'I' 10 11 12 13 14 15 16 17 18 19 20 21 22 7.3 24 7S 1i1;a'l., q U:Vi 4 T ' S R. 11 ~uw_Iber. Description P. age _ 1'7 A cony off a statement to Richs Cigar St:ore, dated 3-31-67, fxom Pacific Tobacco Co. 844 lh A copy of an Empire Candy & Tobacco Company Invoice No. (:1 and 2) B 4699 to Bel. Aire Pharmacy, dated 3/29/67, stapled to a copy off an Empire Candy & Tobacco Comnany Invoice No. B 6475, dated 4/19/67 to Bel ni.re Pharrlacy, (marked 1 and 2 resPe (-- ctive3.y) . 847 19 A letter to Mr. lloward U. St:ei-nbac?i, dated April 10, (1 through 4) 1.967, from Dr.ucr Toa:ics, signed by Charles G. D' ltuyvetter (rlarked 2) ; a classified ad from Drug Toni.c.s (r+larked 1) ; a cony of a leti:er~ to ;1r. Charles G. 1-)'1iulivetter, dated April 13,1967, from Iloward fiteinbac`Z (marked 3) ; and a letter to Harrison S. Fraker, dated April 13, 1967, from Howard St.einbach (marked 4) . 20 Copies of six harres of a tranc;cri.pt of a tape. (1 trrrounli c ) 850 880

INPJ:x f'!I' C?:;Ill.tz'1'S (COWINl7!•;I)> :•1 UiiNO 3' I`escrin ti.on Paae 21 A cony of ~~I chec?: to G. A. Coornonulo and Co., Inc., dated 3/15/G7 from Pacific Tobacco C'or.)-)any. 891 22 A cony of a letter to t'r. Panoa Georgopulo, dated June 20, 19G7, from Stan Hartman. 891 2 3 P. cooy of' a check to G. A. 10 (:eorgonulo & Co., dated June 20, 1967, ain the amount of $776.23 from Pacific Tobacco Company. 891 11 24 A letter to Pacific Tohacco 12 Corn., dated 7!uclust' 9,• .1970, 13 from A. P. A.nderson, attached to two balance sheets. 902 14 25 A two--pane copy of a letterr to 15 Presa.dent P. L7. fieynolds Tobacco Co. '.dinston-Sal.em, North Carolina 903 16 unsigned. 2G A cony off a letter addressed to 17 ":3lank Distributor" unsigned. 903 18 27 ?A cony of' a letter to Panos 19 Georgonu]o, dated :1nri1 13, 1967, from Stan Ilartman. 905 28 A t,,%,o-nac~e cony, of a letter to 21 :Izde 3. Patterson, ;t.13.1i., dated Anril 26, 1967, ffrom Rbnalc9 G. Vincent, M.1). . 911 22 2:7 A copy of a letter to Baleon Tobacco Co. , dated May 31st, 1967, from Iioward Steinbach, 912 24 attached to a l.etterr to C3osc:1 2S ticnc7r,z a'ohacco Co., dated t-lay 31, 1967 ffrom Ifo•aard Steinl>acli and a cony of a letter to Tobacs-Trans. :;toinba&i. (a]so mar.l:n.r3 P 1, P.2, an(I 1'.3) 913

~ 01' 2 nl.I,i;;as)r, a1" S S , 3 V urI',) c r 4 30 S 6 31 7 8 (1 and 2) 9 10 32 11 12 13 33 14 15 16 nr;F'I :Ill~'~ 1T' S Al3 17 93A 18 19 20 21 93t3 through J 22 23 93Y. 24 25 i, _•F; cr r_ i. n t ii on P~^ T cony of a letter from the Iionrl 3;cmri Cenr.ral C'»mher of Cor,Unerc:i , dated 1. Ariril 1967, acl dre,se(; to "I)ear Sir,." 914 T,. col-.)y nf a lett^rr from Cidar.ette }?actcr.y Private Ltd., Janakcur-, Nenal, dated 'Nov. 14, 1.967, to Dear Itr. st!.i.nhach,• attached to a copy of a r.eplv letter to G. Ii. Devacota, dated Decer.lhc;r 916 5, 1.967 (also marked 1 and 2) 917 Coni.es of a four-page document entitled "IsNNUAL RRPORT 1966 CO`I7`INI.NTAL TU3ACCO CO'1PP-NY nI' SOUTH C11I:OLIN11. 919 A copy off a letter to Conti.nental Toba.cco Co., dated 1-23-70 from Stanley lIar_tman. 920 A cony of a docPment in UEFENnA.UT'S TxIIIBI;l AI3 93, entitl`(? "SThTE, OF OR.r CoN CI Cr.RFTTr DI sTI:]: i3UTOr,' s T?1X I'.I;TUI?'d STrT::'i'na Cn'-I;iISSIO'N Period henun Ilarca 1, 1967 Period ended Anril 1, 1967. " 896 A ryroun of State of Oregon Cidarette l;istril:)utor.'s Tax Return i in DI:PI,NnT-N `C' S rXI[IIiIT M 93 from the neriod be(jinning 4/1/67 through Docen).'ber 31, 1967. 899 A yellow shc:ot of pantirr with two adcli.ng machine taPes ntapled to it. . 902

3 4 5 6 7 8 9 10 11 12- 13 14 15 16 17 18 19 20 21 24 11 I f?T:F;';.^NI)11`~rl'~ r Pi1 ; I uml')e r l. »I;hENDMT " s r,M ]. .,._.~_..-------- _ INDL;Y. O1' T;X,iII3IT> (('n'4TI:1ULI)) Descrintion Pauc R lettor to ;!r.. Henry ?(ane, dated Octobnr 21, 1969, ffrom 2'lie Tobacco Inst.itute, Inc., si.c3ned by .1acv Galhr.oath. 944 Copies of a document entitled, "UNI'1'FD STr1T1:S DISTRICT COURT FOR THE DISTRICT OF ORE GOV PnCZ FIC T0;3ACC0 CORP., and Oreclon cor;~or.ati.on dba P1ICIFIC TO3ACC'0 COPIPZ:NY, Plaintiff, v. T;lr A.•1L:PICAN `1'O3TCCO COMPANY, x1•1C. , a Delawar.e cornoration, et al, Defendants, CIVIL NO. 7(1-f3G PLAINTIFI'' S fi1S;IERS TO IN-• TI'.P,ROGI:TC)RII:S OF DEFI]iJDNJT LICCI.Tl` & P1YERS, I"7CnI:PC)MTED. 965

_ ., .._. ~... ._••_..~....-,.-..... _ ...~=a:c: • rsa.za rul!>:aTPaG SES:;IOtd Volurrte VII Wednesday, August 12, ].974 9:40 a.m. I:PPrTI',ANCIss : Mr. lio-nry I;ane, Attorney for Plaintiff; Messrs. Wayne 1lilliard and Stanley R. Loeb, Attorneys for Defendants The r,merican `1'o}>acco Company, Inc. and American Lirands, Inc. ; Messrs. Thomas i•a. Trinlett and Thomas P. Griesa, Att:orneys for Defendant R. J. Reynolds Tobacco Comnany; Mr. Fred P+.. Aebi, httor.nev for Defendant Loew's Theatres; Inc. ftr. Donald :J. Mc;.wen, Attorney for Defendant . Phi lip 1•lorris, Incornorated; Nr. Dennis t9. Skarytad, Attorney for Defendant G. A. Geornonulo & Co., Inc; Mr. Allan Hart, Attorney for Defendant Liggett & ~,ye rs, Incor. porated; Mr. John R. Sabin, T.t:tornev for American Machine & Foundry Con~oany., A`1F. PnOCr1.,DI:PJGS MR. GRIESA: Mr. Kane, during yesterday's session you sa:i.d. that you would make a search of your office and seQ if there were any additional documents covered by the subpoena which you could discover. MR. KAP71:: Yes, Mr. Griesa. I did that. Isnent several V 0 goin9 throuql~i each of the file y, including the files that o . ~ m w 00

wex•c mercly rleadi»g,<1nd in the m.zterial »rova.ded by somn of 4 6 7 8 9 10 11 .12 13 14 IS 16 17 18 19 20 21 22 24 25 khe def:endants checking ever.ythind against I:xhibit A to the subpoena. P'irst I can verif:y that each off the numbered files had nothinn toithdrawn from ther,i. I.verythina called for has been pr.oduced. In addition -- wait a second. Let me finish, or did you want to i.nt-c:rrunt me? MR. GRILSR: Let him finish his statement. MR. LOEB: Finish yourr statement. MR. KANE: 'The closest to a failure to produce is the reference to cigarette sales vouchers. It says Pacific Tobacco Cor-lDorati.on cigarette sales vouchers for 1967 to 170. 1 have he.ree an Empire Candy •& Tobacco.voucher that ;•Yas discovered in our attorney work product file dated -- two of them, dated--~ 3/29/67, Invoice 13 4669, which lists or states, "Credit 1 carton Cancer Cigarette" and then 4/19/67, Rmpire. Candy & Tobacco Company, Invoice No. B 6475, and it says., "Credit 2 carton I'ilter.." Doesn't say ---- MR. LnhE3: P4r. Kane, are copies of those in the record? MR. GRIESA: Let him finish. MR. K&NE: These are the two things that are not specific tohac;co sales vouchers, but which were discovered in the attorney wmr'; product. I hand those to you now. MR. GRYrSA: Anything else? t4lt. KhNL : 'Now, in addition to that I went through the fS..a.es to determine if there was anything that would support the

., . 2 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 0 inat.erl i.a]. that has been prr.sented. I state to you catccyoricall.y th,at: everything called for by this exhibit ha s been produced. There are some brand new or very recent orders. Iler.e is the currr.nt: liel. l,ire Pharmacy deal and that show> some recent orders anc3 sor.n correspondence or induir.ie , as we ca11 it. So this is a small handful. I haven't tallied them. I hand you an li. S. Smith & Son Invoice P 14058 12-28 1966 on the first sheet. Attar.hed to it is a white piece of paper that appears to be a pencil design for Cancer Cigarettes and the third page is an 11. S. Smith & Son, what looks to be an invoice, Vancouver, ;•Ia>hinaton, 12-28-66, saying, "Credit 2 Package King Cigarettes," and it says, "60 cents." I hand that to you. That is outside of the period. I al.so.hand you another item that is not called for hy the subpoena. It is a copy of the assumed business name of Pacific Tobacco Co., filed December 29, '66, with llr. iiartman as the representative. The gent].emeri were not even aware that thE:y had it until -- orr is this -•--- `1'H1; tr'ITN1?SS: There is one thing about this. In reading this I think this may have been an application fill-out. I don' t)cnow whether this was ever consummated or not. I had even forgotten a!)out it, Henry. '1''4hat's the only -- wc stumbled onto t.hiltt c3ocument. }9I;. KnNL•': There is a filing datr_. That was di scovered la~:c.~ last night. llere is. the t•lackoul Tobacco Co. Pur.chase Order. 'fiI c~ y are lastc~d as ~•~holcsale di ,t:ri}~utors This has been i th n e ... .9 .t 1 tn

.._.~.~.. 2 i 6 l0 11 12 13 14 t5 16 17 18 19 20 21 24 . orc'.cr i.ncjui.ry file and t.?tic, is ciatec3 2-7--Gt3, "1 case Cancer Ciyaret.tes" in the amount. of $190. We nulled from the or.dGr f.i.l.e the reference to ----- MF;. LOI:B : Is that the order file that is in her(--, or the ones tFlat are in your office? MIt. KMIa: Very large ones that ---- MFt. LOI:T3: That were not received. MR. KANE: Were not received, but in the interest of a complet:e record we pulled these records out. liere is a Ramsays, a set of material referr.inq to Ram,ays or from Ramsays of Las Vegas, that apnear to be a steady customer and wanted to sell. I am holdinq a Post-Kwik form letter to Pacific Tobacco saying, ":7e are interested in re-order.ind your -----" 14R. LOEM: You can look at t.'1e 5tuhs . ;•IR. K11N1.: There are a num')er of those and here is anotherr brand new or recentt order. 41e also checked the -- I should mention that before the deposition resumed I handed Mr. Grie:.=..a a file called, "Wall "treet Journal Correspondence - Pacif v. nr!ynolds 4540,"and underneath it in writing it says, "Observer Refusal to advertise ----" It shows the national or the 'hrun Toni.c.s correspondence referred to yesterday and the returned classa.fied ad for distributors that was submitted. We also ch(!c};.ed the Rmer.ican Interrogatories to the plaintiff with respect to Tar Card to determine why the r.iztter.ill was not added to thr: orr placed in that distri.hutor file and l.isted is a

c3istributorr offer. This ;aa:', clonc! last fall. and we also have a tar>e which goas into that, or copy of a tane recordi.ncJ and it woul{3, I•1I't. LOLr3: tlhich goes into .•rhat? I1J2. J:h;qE : '-1hy the status of this T.Zr Card Venturai thinq G anei it: turns out that it was classified as not an offer. It ~aas, :merea.y an expr.ession of interost on the aart of Mr. White. They did not consider him as having made an offer. MR. LOI:I3: . nre you testifying here at this time? 7 8 10 MR. K11NiJ : I am giving you the background of the file. l1 Anyway, that's my copy if you want to look at it. 12 MR. GRIESA: All ri ght. MR. KANE: And Mr. Iiartman has brought some Garden Home 13 19 phc>nca bills and some miscellaneous correspondence in terms of ].et:ter_:a hca has written that have no relation as far as I can l5 see t:o this case, but here they are. 6 •7 71It. GRIhSA: Let me ask you this: I: asked this yesterday and _[ .rei?eat today, the files that your client turned over to your office, have they all been produced, either to Reynolds last sor.i.ng, Reynolc3s' attorneys or on thi> de»osi.tion? .9 t0 11 t1R. Ic71NI:: Yes, with the exception of attorney work product. u MR. GRIESA: Well, do you cl airn --- let me ju st finish then. Do you claim that any of the files turned over to you by your client contained attorney work product? That's what I am .ldctres>ing myself to, fil.c, turned over to you by your client. t3 Yd l;i