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RJ Reynolds

Howard A Engle, M.D., Etc., Et Al. V. Rj Reynolds Tobacco Company, Etc., Et Al. Deposition of Andrew Schindler.

Date: 14 Apr 1997
Length: 387 pages
516018327-516018713
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ANDREW SCHINDLER IN THE CIRCUIT COURT OF THE 11th JUDICIAL CIRCUIT IN AND _ FOR DADE COUNTEY,F),ORIDA CASE NO. 94-08273 CA (20) H^v_11ARS-A-ENGLE, M.D., etc., et al., Plaintiffs. V. RJ REYNOLDS TOBACCO COMPANY, etc., et al., Defendants. 599 Lexington Avenue New York New York A ril 14, t9q7 Ivondy, :40 A.M. 16 DEPOSITION OF ANDREW SCHINDLER 18 19 Taken before Richard O. ppplebaum, 20 Shorthand Reporter, Notary Public forlhe State of 21 Florida at Large, pursuant to Notice of Taking 22 Deposition filed in the above cause. 24 25 KLEIN, BURY & ASSOCIATES, INC. 2 APPEARANCES: 2 3 STANLEY ROSENBLATT, P.A. By~ STANLEY ROSENBLATT ESQUIRE 4 AND SUSAN ROSENBLATT, ISQUIRE on behalf of the Plaintiff. 5 JONES DAY REAVIS dr POGUE 6 By~ RdBERT WEBER ESo UIRE AND IiUGH WHITIN(~,, ESOUIRE 7 on behalf of Use DefeadanURJTTTttteynolds. 8 KING dcC SPALDING p 9 oBoy'behMallf of tha Dek~B~~ w 10 KASOWITZ, BENSON TORRES & FRIEDMAN By: MARI~ SANTACItOCE, ESQUIRE 11 on behalf o the Defeadant/Li ett. 12 SHOOK HARDY dr BACOt~ By: DAVIp HARDY, ES~ UIRE 13 on behalf of the Defendant/Lorillard. 14 GREENBERG, TRAURIG, HOFFMAN, LIPOFF, ROSEN & oUENTEL P.A. 15 By: DAVIt) ROSS ESQUIRE on behalf of the Dereodam/Lorillard. 16 ANDERSON MOSS SHEROUSE & PETROS 17 By: EDWAdD MOS~ ESQUIRE on behalf of the DefendanuB & W. 18 19 ALSO PRESENT: CHARLES BLIXT, ESQUIRE 20 21 23 i45 KLEIN, BURY & ASSOCIATES, INC. 1 ! INDEX 2 WITNESS DIRECT CROSS 3 4 Afdrew Scl:ndcr 4 _ 5 6 7 EXH®RS B Naiatifra For ldwMiGcafim 9 No. 1 46 No.2 ut 10 No. 3 114 No. 4 123 I I No. s 124 No. 6 125 12 No.7 t27 No. 8 129 13 No. 9 131 No. 10 134 14 No. 11 147 No. 12 152 IS No. 13 159 No. 14 174 16 No. 15 IBI No.16 189 17 No. 17 191 No. IS 192 18 No. 19 195 No. 20 204 19 20 ,3 24 KLEIN, nURY & ASSOCIATES, INC. 1 Thereupon: 4 2 _ ANDREW SCHINDLER 3 was called as a witness on behalf the Plaintiff and, 4 having been first duly sworn, was examined and- 5 testified as follows: 6 MR. WEBER: Stanley, , before we get 7 started, I just want to confirm for the record 8 that the camera wtll be - remain focused on the 9 witness, without any zooming in or out, it will 10 just remain stationary , is that correct? 11 THE VIDEOGRAPHER: Yes. 12 MR. ROSENBLATT: Yes. That was my 13 understandin 14 DIRECT EXAMINATION 15 Q. (By Mr. Rosenblatt) Please tell us your 16 name and your business address. 17 A. Andrew J. Schindler. Business address is 18 Fourth and Main Street, Winston-Salem, North Carolina- 19 p What is your present position with R.J. 20 Reyno3ds? 21 A. I'm president and CEO of R.J. Reynolds 22 Tobacco. 23 Q. . And how long have you occupied those 24 jointpo SlUOns? 25 A. Since July of 1995. KLEIN, BURY & ASSOCIATES, INC. 5-- 1 Q. What was your position immediately before 2 assuming those two jobs? 3 A. I was president and chief operating 4 officer of R.J. Reynolds Tobacco Compan~y• 5 Q. When did ou begin with R•J• Reyn~olds? 6 1974A• I began - I joined the company in May of 8 Q. And it's been continuous employment, 9 you've never left for a period of time and been 10 employed.bX someone else? 11 A. It s been continuous employment with the 12 RJR family~ o~~f companies yes• 13 Q• vVhat are R.J. ~teynolds Tobacco Company 14 leading brands today ? 15 A• Leading brands are Doral which is our 16 actually today number one brand, Winston, Salem and 17 Camel. 18 Q. What percentage of the market does Doral 19 have, the total tobacco market? 20 A. Doral has about five and a half share 21 points or so. 22 Q. Com red to Marlboro, for example, which, 23 as I understandpit is the leading brand; correct? 24 A. Yes, Marlboro is the leading brand. It's 25 at 31, 32 share~o ints of the market. KLEIN,BURY & ASSOCIATES, INC. -6- 1 Q• How many discount brands does Reynolds 2 have? 3 A. Well, I'll have to guess at this a little 4 bit because there's quite a few private labels and so 5 forth. 6 In terms of total number of discount 7 brands when you get into all the private labels, 8 probably about 50 or 60 or so because of all the 9 private labels. 10 Q. What is your leading discount brand? ~~ A. Doral• Q. So when you say Doral is the leader, 13 you're talking about the discount brand? 14 A. No. 15 Doral is actually our largest share of ~6 market brand, and also is our leading discount brand. Q. Okay. 18 A. It's our number one brand. 19 Q. What is your number one full priced or 20 premium brand? 21 A. Number one full priced brand today would 22 be Winston. 23 Q, Now, what does Winston sell for retail, a 24 package of cigarettes? 25 A. That ~yo~u know, that will vary d~epe nding KLEIN, BURY & ASSOCIATES, IYC. Pages 1 51601 8327
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6 ANDREW SCHINDLER 7 1 on the market because of various types of discounting 2 that go on in the market. So it would be somewhere on 3 average about a dollar or a 1.864 pack, 1-78, 1.90. 4 Depends on what market you're in and what type of 6 5 discounting activity goes on. Q. Okay. And how about the Doral discount 7 brand, what does that sell for? 8 A. That will be again depending on what goes 9 on in the marketplace, somewhere around 1.40, I.45, 10 1.35, 1.39 it varies. 11 Q. bo you have a background in marketing? 12 A. I'm - if you'd explain the meaning in 13 terms of my career, in terms of being - prior to 14 gettin into this ob, being in the marketing -- 15 No. in terms either of this job with 16 Reyno ds or any revtous job have you -- 17 A. Well, Ipwas in the sales organization in 18 the mid-70s. 19 Q. Of Reynolds? 20 A. Of Reynolds. 21 And then my direct marketing line 22 accountability is whaf I have done since I've been in 23 this job as president. 24 Q. How would you define marketing?25 A. Marketing is the organization within the KLEIN, BURY & ASSOCIATES, INC. I company who's accountable for understanding consumer 2 needs and is responsible for, you know, the 3 advertising, promotion of the brands to our smokers 4 and trying to convince competitive smokers to smoke 5 our products. They're accountable for the 6 adverttsin(; , the positioning of the brand, its image, 7 product difference, communicating that to smokers, and 8 to advertising through promotion, discounting, pricing 9 and so forth. 10 11 markZng is usually used if yfore xoamplet, if Winston 12- or poral were to overtake Warlboro, that would be a 13 marketing t~riumpb for R J. Reynolds, wouldn't it? 14 MR. WEBER: Let me object to the form. 15 Q. That meansy you can answer. 16 MR. WEBER: You can go ahead. I'm 17 objecting to the way the question was framed 18 with the introduction to it. 19 A. Could you repeat the question? Q. Yes. 21 I'm saying if one of your brands Winston 22 or Doral, which is obviously today very far behind 23 Marlboro, if one of those brands were to overtake 24 Marlboro in terms of the industry and in terms of the 25 way it would be perceived that would be a tremendous KLEIN, BURY & ASSOCIATES, INC. -9 1 marketing t~rium~~ph wouldn't it? 2 MR. WEhER: Same objection. 3 Go ahead. 4 A. If one of those brands happened somewhere 5 to get a higher share of market than Marlboro it 6 would be certainly a success for that brand, wbich 8 7 everyone did that. Q. No. 9 Would it be a marketing success? 10 A. It would be a business success and to 1 I what degree it would be a marketing success I would 12 assume that would have something to do with it, but it 13 would be a success to gain market share and to somehow 14 surpass Marlboro, which I think is a highly 15 theoretical sort of achievement or opportunity. 16 Q. How long has Marlboro been number one? 17 A. As near as I can remember, I believe that 18 Marlboro became the number one brand in the late '70s, ~90 somewhere in the 1978 or 1979. Q. In terms of the history of the tobacco 21 industry, is it fair to say it's very unusual for one 22 brand to be the leader for that long? 23 1 mean, in Marlboro's case we're talking 24 what, 27, 28 years? 25 MR. WEBER: Ob'ect to form. KLEIN, BURY & ASSOCIATES, INC. 1 Go ahead. 10 2 A. Well, Marlboro's been the industry leader 3- for about 18 years or so. - 4 You know, historically I don't know the 5 tYme frames, but there have been various brands 6 historically in the industry, Lucky Strike was the 7 number one brand for some period of time and I don' 8 remember the exact number of years, Camel was the 9 leadin brand for awhile. 10 i~ 13 14 15 16 17 18 ~90 21 22 23 24 25 Q. But isn't it your understanding -- M~R WEBER: Were you done? s Q. Were you done? A. Yes. p Okay. Isn't it your understanding , though, that Camel or Lucky Strike while they were number one for a period of time was a lot less than 18 ? years A. I really don't know the time frame. Q. Okay. What do you attribute the success of Marlbo ro to for these past 18 years, their marketing , their advertising or what? A. I would attribute it to two things. I think they had a good marketing campaign with Marlboro Country a ~ nd I think they had an excellent roduct. KL EIN, BURY & ASSOCIATES,~NC. 1 Q. That's what I was getting at. 2 Now, you referred to Marlboro Country, 3 which we - I certainly assume you're referring to the 4 cowboy motif? 56 A. Yes. The whole western. 7 Q. The Righdvt. aertising that one sees on 8 billboards with horses and cowboys and nature and that 9 kind of thing, and that's - that would come under the 10 heading of marketing~ 11 MR. WEBER: Let me object. 12 Q. Is that correct? 13 MR. WEBER: Let me object to the form. 14 Go ahead. 15 A. Well, to me the comprehensive sense of 16 marketing I think it's whatever your advertising is as 17 well as your product itself. So 1 would attribute any 18 brand's success to both of those components. 19 Q. Well, I mean, if we were to forg et 20 totally - put aside totally the advertisin the 21 markettng, media, and we 'ust took a~inston and a 22 Marlboro, are you satisfied the Marlboro tobacco is 23 somehow inherently better than Winston or poral? 24 A. I believe over the years that Marlboro 25 has a product that has tasted different than Winston KLEIN, BURY & ASSOCIATES, INC. 1 and it is obviously by its shareQf market preferred 2 by the majority - you know, a large majority or a lot 3 ot the peop le in it marketplace. 4 So it's hard for me to separate those two 5 things, because I believe that it's both - that the 6 marketing of a product has to do with the product 7 itself as well as, you know, whatever the advertising 8 is with it. So I think they're both part of whatever 9 makes a brand successful. 10 Q. Since you've been with Reynolds have you 11 ever conducted blindfold tests? 12 You know what I mean by that? 13 A. On what? 14 Q. Okay. Where you would test whether or 15 not smokers blindfolded, without seeing the package, 16 could distinguish, okay, now I'm smoking a Winston, 20 17 minutes later I'm smoking a Marlboro, are you familiar 18 with that kind of test? 19 A. You're talking about blind product 20 testin ? 21 ~. Exactly. 22 A. Where they don't know what the brand is. 23 there's no brand identifier, they're just smoking 24 cigarettes Exactlyu're asking for their opinion? KLEIN, BURY & ASSOCIATES, INC. 51.601 8;,2,1: Pages 7 -
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ANDREW SCHINDLER 13 1 A. Yes we have done blind product testing. 3 testing`? And what have you fo~und in that kind of 4 A. What we have found in blind product 5 testing that ify ou take Winston, for examp le, that 6 typically Marlboro, say like Marlboro Lights, for 7 example, would be preferred over Winston Lights by the 8 smokers that you've on a blind basis test against. 9 Q. Okay. What I'm trying to understand is, 10 does the average smoker know b]indfolded that he's now 1 1 smoking a Marlboro as opposed to a Winston? 12 Do you have research on that? 13 A. The research that we do doesn't ask - on 14 a blind basis you're not asking somebod if they can 15 identify is this a Marlboro or is this a Wyinston. 16 You're asking them to evaluate which of 17 these cigarettes they prefer or how - well actually, 18 most of-the time it s one roup will get Mariboros, 19 another group will Ret, lei's say, Winston, and then 20 they'll be some attrl3utes that they rate it against 21 in terms of smoothness and harshness and things of 22 that nature and overall preference. 23 You're not asking them can you identify 24 the brand, you're asking them to make a judgment about 25 how the~y view the taste of that product and then how KLEIN, BURY & ASSOCIATES, INC. 16 1 real bad cold that went on for a period of time and I 2 just stopped smoking because of the irritation and 3- -that sort of thin~g with the cold: I didn't smoke- 4 after that. I still had, as I recall, another six 5 months in Viet Nam at that 6 point. 7 stop smokuog?or how long a period of time did you 8 A. As near as I can remember, I believe the 9 next time I started smoking - I think it was about 10 seven years. It was somewhere after I joined the 11 company. I joined the company in '74 and I believe I 12 started smoking again somewhere in '76 or something 13 like that, as near - as best as I can remember. 14 Q. So you -- 15 A. So that was seven years. 16 Q. So you smoked from age 18 until what age% i78 A. 69ts25. Q. Okay. And at -- 19 A. Twenty-four, 25. 20 Q. Okay. Give or take. 21 And at that point in time you stopped 22 smoking for seven years? 23 A. Yes, as near as I remember. 24 p Okay. During the period of time you 25 smoked from 18 to 25~r ve or take, how heavy a smoker KLEIN, BUIf Y& ASSOCIATES, INC. 14 1 the other smokers view the taste of Winstons and that I 2 gives you a sense on a blind basis of just the taste 2 3 of the product. 3 4 And out of that process you get numbers, 4 5 you get quantitative scores on those judgments. 5 6 And typically our experience has been 6 7 that Marlboro will be preferred as a product, it will 7 8 et higher scores in that kind of testing than will 8 9 ~inston. 9 10 Q. All nght. Are you aware of any research 10 1 1 either conducted by Reynolds or any other tobacco 11 12 compan which pinpoints whether a smoker can identify 12 13 the difference between cigarettes blindfolded, not 14 which he prefers, but simply knowinf blindfolded, hey, 13 15 now I'm smokin a Marlboro, now I m smoking a Camel? 15 16 MR. ~VEBER: Object to the form. 16 17 Go ahead. 17 18 A. I don't know of any research that we have 18 . 19 ever done on a blind basis you re asking somebody -- 19 20 Q. What kind of cigarette he's smoking? 20 21 A. -- is this a Marlboro? Is this a 21 22 Winston? 22 23 I don't know of any research like that. 23 24 Q. Okay. Are you a smoker? 24 25 A. Yes I am. KLEIN', BURY & ASSOCIATES, INC. 25 15 1 Q. And how old were you when you started 2 smoking? 3 A. I think I was probabl about 18 or so. 4 It was somewhere - I got out ofyhi h school in 1962. 5 It was somewhere after I got out o~ high school. 6 Q. Do you remember the circumstances what 7 attracted you, what started you smoking? 8 A. No. I mean the - the specifics, no. I 9 1ust know that I was smoking. Friends smoked, my 10 father smoked. It was, you know, friends and 11 relatives. I~~'ust became a smoker. 12 Q. Okay. Have you smoked continuously from 13 the time you're 18 up until today or was there ever a 14 period of time where you decided to quit and did quit? 15 A. I quit - the irst time I quit smoking 16 was in - when I was in Viet Nam in 1969. I quit 17 smoking at that point. 18 Q. I would have thought that's when a lot of 19 people started smoking when they were in Viet Nam. 20 A. Well it was certainly a stressful 21 environment. ~ was an infantry officer, actually up 22 with the First Air Calvary Division up along the 23 Cambodian border. I had a staff job at that point, a 24 fire base. 25 And I don't know, as I recall, I had a KLEIN, BURY & ASSOCIATES, INC. were you? ~7 A. I was probably a pack or pack and a half a day, except when I was in Viet Nam. I was smoking more when I was in Viet Nam. Q. Well, as you look back, was it essentially the cold that you could not get rid of that caused~ you to stop smoking? A. No. Look, we're back almost 30 years.. I remember,that I had a cold and it was irritating so I didn't smoke while I had that cold. And after the cold went away, Ijust didn't smoke again. of -- Q. Okay. Do you remember the circumstances Now you go seven years you're a nonsmokei and then one day you start smoking again. Was there a social circumstance or another kind of circumstance where one day after seven years you said to yourself well, I'm going to start smoking again? A. As I recall, at that time I was working - I was working in the sales organization at Reynolds and somewhere in the process I, you know, started smoking a gain. rrom that time until today have you been QICLEIN, BURY & ASSOCIATES, INC. 18 I a constant smoker or has there been another segment of 2 time where you stopped? 3 A. There was one other time that I stopped 4 smoking, and I was a plant manager for the company in 5 - and I started that job in October of '81, and I 6 stopped smoking as a plant manager and I think it wa 7 somewhere in 1985 or so, as I recalh. g? It was sometime in '85 when you stopped 9 smoking? 10 A. Yes. ' 11 Q. Okay. And did you have another cold or 12 what caused you to stop smoking in '85? 13 A. No. I just decided I didn't want to 14 smoke and I just stopped smoking. 15 Q. And how long did you stop smoking? 16 Because you're telling me now you're a 17 smoker. 18 9 A. Yes. 1 20 how Qng?Okay. So in '85 you stopped smoking for 21 A. It was three of four years, as I recall, 22 as best as I can remember that. 23 p Do you remember if there was any pressure 24 from familyt wife, kids, who wanted ou to stop 25 smoking in 85, or was it totally unrelated? ~ KLEIN, BURY & ASSOCIATES, INC. Pages 13 - 51601 8329
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A ANDREW SCHINDLER 19 1 A. No. It was unre!ated. I don't recall 2 any pressure from family whatsoever. 3 p -Do you remember the C~umstances in 1988 4 or 198~ when you would have started smoking again, or 5 was it just you~ust picked up a ciga~rette? 6 A. Welt, I~'ust started smoking again. 7 Q. And nottting stands out in your mind as to 8 the circumstance, as to why you started smoking again? 9 A. No, nothing in particular. 10 p Okay. And once you started smoking again 11 in the late '80s, have~ou been a continuous smoker 12 from then until today. 13 A. Yes. 14 Q. Okay How heavy a smoker are you today? 15 A. Pack, pack and a half a day. 16 Q. What brand? 17 A. Well -- 18 Q. Not Marlboro? 19 A. No, I don't smoke Mariboros. 20 It's - I'll smoke all of the Reynolds 21 products at some point or another. Smoke a cigar once 22 in a while. 23 And as a regular brand, I smoke Eclipse, 24 I mean is the most normal - constant brand in that. 25 Basically' I'll smoke Camels I'll smoke Winstons, KLEIN, BURY & AStSOCIATES, INC. 20 1 Salems, a variety of our products, but no competitive 2 products. 3 Q. From approximately age 18 to about age 25 4 what brand did you smoke? 5 A. I smolced Winstons and I smoked - I 6 remember smoking Larks for awhile. Those are the only 7 two that I can remember. 8 Q So basically in your career as a smoker 9 there have been basically two stretches where you've 10 stopped smoki.g comletely, one for approximately 11 seven years and_one or approximately three or four 12 years? 13 A. Yes. 14 Q. When you stopped smoking on those 15 occasions, did you - were you able to stop smoking 16 without any~ difficulty? 17 A. Yes. 18 1 describe dthe situation in Viet Nam 19 when I stopped smoking. I'ust stopped. 2~ later?Q. And never started~agatn until seven years 22 A. Yes. 23 p And you had know problems? You didn't 24 miss the ciRarettes? 25 A. Well, I think - well I don't - it's hard KLEIN, BURY & AS~OCIATES, INC. 21 1 to remember the '69 thing in detail. All I remember 2 is that I stopped smoking and didn't start again, 3 didn't become a smoker again for seven years. 4 Q. Okay. And I'm certainly not asking you 5 for detail, but as you remember the experience of 6 stopping smoking when you were about 25 years of age, 7 you were able to quit smoking without any difficulty? 8 A. Yes. 9 ~ And that was also your experience in the 10 late '8bs when you stopped smoking for three of four 11 years, you were able to do so without any difficulty? ~ 3 A. Yes. 4 that Qt to the Amert an b ublie aroe theg true?s 115 you A. seI'm - what do you mean are they tyrue? 16 Q. Are they true? 17 One of tf~e warnings on packages of 18 cigarettes which you sell in the btllions to the 19 American public says smoking causes lung cancer, heart 20 disease, emphysema and may complicate pregnancy. 21 All I m sim ~Iy asktng you, is that true? 22 MR. WEBER: Let me object to that for 23 misstating what the warnin says. 24 Q. (By Mr. Rosenblatt) ell, it says - 25 before that it says we always have someone technical, KLEIN, BURY & ASSOCIATES, INC. 22 1 Surgeon General's warning, smoking causes lung cancer, 2 heart disease, emphysema and may complicate pregnancy. 3- And my~uestion to you is, is that true? 4 A. I think it s true that the Surgeon 5 General says, who I believe created the warning label 6 that we you know, put on our packs, the Surgeon 7 General says that cigarettes cause those diseases. 8 Q. Isn't it Congress who did that? 9 A. Well, Congress working I guess through 10 the Surgeon General, ublic health people and Congress 1 I said this is the law, tuis ts the warning label to go 12 on the packs, which says that the Surgeon General says 13 that ci arettes cause these diseases. 14 Mr. Schindler, obviously I'm not asking 15 you is it true if the Surgeon General says that and 16 I'm not asking you is it true that that warning 17 appears on your cigarettes. 18 I'm asking you whether the statement is 19 true? 20 A. M~y - 21 MR. WEBER: Wait. Wait. Let me object 22 to that for the whole introduction, Stanley, 23 because it wasn't obvious to me -- 24 If that's your new question, go ahead. 25 A. My~view is that cigarettes are a risk KLEIN, BURY & ASSOCIATES, INC. 23 1 factor for those diseases, that they may ca use those 2 diseases. I do not know if they do cause those 3 diseases. 4 The warning label that was given to the 5 industry by Congress and the Surgeon General says that 6 the Surgeon General says that it causes those 7 diseases. 8 My view is, that cigarette smoking is a 9 risk factor for those diseases and it ma cause those 10 diseases. I do not know if it does or dy.esn't in that 11 sense. I believe that maybe it's a risk factor. 12 So in that context, I don't know if that 13 statement of it causes is true or not. 14 It's what people believe that provided 15 the label to us or the warning label. Q. Now, as I've heard your answer, and have 17 understood your answer, it is your view that the 18 statement that smoking causes lung cancer, heart 19 disease, emphysema, is tnaccurate because you believe 20 that the accurate statement should say that smoking is 21 a risk factor for those diseases as opposed to saying 22 it causes those diseases? 23 MR. WEBER: Let me object for 24 mischaracterizirig what he just said. 25 You can answer. KLEIN, BURY & ASSOCIATES, INC. 24 ------ - 1 A. I believe that cigarettrsmoking is a 2 risk factor for those those diseases, which to me 3 means that it may cause those diseases. That's my 4 point of view. 5 Q. I understand that. 6 But therefore, having said that, 7 obviously then from your point of view a statement 8 which says cigarette smoking causes lung cancer is not 9 accurate; correct? 10 A. Well, like I said, Mr. Rosenblatt, I 11 believe that cigarettes are a risk factor for these 12 diseases and I believe that therefore that means to me 13 that they may cause those diseases. That's, you know 14 that's my potnt of view. 15 p~ 1~Vhat is another risk factor for lung 16 cancei? 17 Smoking is one of them, according to you. 18 What's another one? 19 A. Well, I would think that there are things 20 related to geneUcs, perhaps the diet, exercise or 21 look thereof, and a variety of thin s that may also be 22 risk factors related to smoking. 1 amily history, I 23 guess, which relates to enetics, and a number of tings, environmental factors, where you live and so 24 f7~ rth KLEIN, BURY & ASSOCIATES, INC. 5 1_ 6 0 1 E t a3, 0i Pages 19 -
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l= ANDREW SCHINDLER 25 ] Q Tell me bow you you think exercise or the 2 look thereof is related to lung cer? 3 You mean if someone~gs a lot they may 4 get lung cancer? 5 A. It is my understandin~ of - that - I'm 6 not a scientist, obviously, but it s my understanding 7 of epidemiology that cigarette smoking is identified 8 as a risk factor and that there may be in things I 9 have heard or read over time that there are other 10 factors that may relate to - as risk factors for 11 certain diseases, talking about lung cancer here, 12 which could involve genetic makeup, could involve 13 environmental, where you live, perhaps diet, perhaps 14 not having enough exercise in combination in some 15 factor are the risk factors related to these certain 16 diseases. 17 Qb So on the issue of causation, your view 18 is may e smoking causes lung cancer and maybe it 19 doesn't? 20 A. It is my view that cigarette smoking has 21 been shown through all of the ePidemiology research 22 and studies over the years that if is a risk factor 23 for lung cancer and other diseases and therefore may 24 be a cause of those diseases, but that from the 25 standpoint of scientific proof in terms of mechanism KLEIN, BURY & ASSOCIATES, INC. -2-6-- 1 and exactly how it might be the cause, that has not 2 been fonnally determined in the scientific process. 3 So I view cigarette smoking as a risk 4 factor that may cause these diseases and that, you 5 know that's my view. 6 ~. This is your personal view or is this the 7 company's view? 8 A. Well, it's my view, it's the view of 9 scientists that I've talked to with the company that 10 have studied this issue, that are up on the research 11 and literature, and people I've talked to over time 12 about the whole issue of smoking and health. 13 Q. Mr. Schindler, would you agree or not 14 agree that there is a worldwide consensus in the 15 medical community and in the scientific community that 16 cigarette smoking causes lung cancer or do you th.ink 17 there is a controversy within the medical community 18 and scientific community on that subject? 19 A. I would agree that the majority - clearly 20 the malority, of people in the public health field have 21 stated that cigarettes cause these diseases. 22 It is my view that it is a risk factor 23 for those diseases and may cause the diseases that 24 we're talking about. 25 Q. 1-rave you ever read an article in the New KLEIN, BURY & ASSOCIATES, INC. 27 . 1 England Journal of Medicine or any presti tous peer 2 reviewed medicalJ'ournal in this country w~ere a 3 physician, an M.ll. unconnected to the tobacco 4 tndustry has taken t~ie sition that smoking is merely 5 a risk factor for lung dipsease and there's no 6 scientific evidence tbat it causes lung cancer? 7 MR. WEBER: Let me obJect. 8 If you're trying to state what he said 9 you mischaracterized it with that materiaf that 10 you said in the end. 11 If it's entirely different question, then 12 I'll just object to the form. 13 Go ahead. 14 A. Could you ask the question again, elease? 15 (Thereupon, the requested pot-tion o~t the 16 record was read back as above recorded.) 17 A. I have never read an article that you've 18 described like this. I have never read an article in 19 the New England Journal of Medicine like you've 20 described. 21 1 believe that cigarettes are a risk 22 factor and that - I believe that very strongl . 23 And as a company we have actedyupon that 24 belief by trying to improve products and as an 25 industry~over a 30, 40 year eriod with the lowering KLEIN, BURY & AgSOCtATES, INC. 28 1 of tar in cigarettes, with work we've done in recent 2_years on roducts like Eclipse. 3- 7~tat the fact that I believe that it may -- 4 cause these diseases, to me what is relevant is what 5 does the company and the industry - what has it done 6 relative to acting upon the fact that it is a risk 7 factor. And I believe that we have done a lot over 8 the years to address these issues with lowering of tar 9 and that - trying to create products that address the 10 risk related to smoking. 11 Q. (By Mr. Rosenblatt) How many billions of 12 cigarettes does R.J. Reynolds Tobacco Company sell in 13 a year? 14 A. About 120 billion is our volume. 15 Q. 120 billion with a B, with a B? 16 A. It's 120 billion cigarettes a year. 17 Q. Okay. I just wanted to make sure people 18 are not confusing that with million. 19 A. No. 20 Q. Okay. Now, don't you think as the 21 president and CEO of a company that sells that many 22 billions of cigarettes to the American consumer, and 23 you admit that it may cause lung cancer and heart 24 disease, that you have a responsibility to read some 25 of the inde ndent ltterature so that you would know KLEIN, BURY & ASSOCIATES, INC. 29 1 what the scientists and the medical doctors are 2 saying ? 3 A. Well, I am aware of what medical science 4 and the doctors are saying. I spent time with our own 5 people in the or anization that I mana e discussing 6 these issues and~ - they are competen~, ethical 7 people. We've spent a fair amount of tune discussing 8 the whole smoking and health issues. 9 And I am very comfortable with my own 10 personal belief that cigarettes are a risk factor for 11 these diseases and am comfortable with what we have 12 done as a comp any to address the risks that are 13 associated witFi smoking, in terms of tryin to irnprove 14 the product over time, with the lowering o~ tar and 15 other work that we have done over the years. 16 Q. So the lowering of tar makes cigarette 17 smoking less of a risk factor? 18 A. I don't know if it makes it less of a 19 risk factor, but for a number of years up until as 20 near as I understand this until the late '70s there 21 was a sort of cooperative effort between the public 22 health community and the industry to address tar as an 23 issue with regard to tential of risk in cigarettes 24 and a very concertedpeffort over a 20 or so year 25 period to sy stematically work to deliver or design and KLEIN, BURY & ASSOCIATES, INC. -30-- 1 manufacture cigarettes that have substantial reduction 2 in tar, which is the histo of theindustry and 3 working with public healpeo ple up unhl I 4 understand around the late '70s. 5 So there has been an effort over the 6 years to reduce tar in cigarettes as the area that 7 tended to be a consensus of where the risk may lie 8 with regard to cigarettes. 9 Q. Which of the Reynolds products has the 10 highest degree of tar? 11 A. 1 believe the highest tar would be More 12 120s, it's a 120 millimeter small circumference 13 cigarette. 14 Q. Do you know the percentage of tar 15 expressed in milligrams? 16 A. I believe it would be around 21 or so 17 milligrams of tar. 18 MR. WEBER: Just for the record I think 19 you misstated. It's not a percentage oFtar, I 20 think you - 21 A. It's actual 21 milligrams. 22 Q. Okay. 21 milligrams? 23 A. (Witness nods). 24 Q. What is the lowest Reynolds product in 25 terms of tar? KLEIN, BURY & ASSOCIATES, INC. 5 1GPI 8::337. Pages 25 -
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=~3 ANDREW SCHINDLER 31 1 A. It would be a Now product, which would be 2 about one milli ram of tar. 3 Q. -Wellg are you telling 4S'that Now in your 4 judgment is much less of a risk factor than More? 5 A. No, I'm not sayin that. 6 I'm saying it has su~stantially less tar. 7 I'm sayin that over the years the 8 industry working for a good period of tune with public 9 health people said that reductton in tar was the right 10 thing to do with the design of cigarettes, that we as 11 an industry and we as a company worked hard on 12 providing products that reduce tar so that all 13 cigarettes today are substantially less tar today than 14 they were 30 or 40 years ago. 15 As to whether or not that product is less 16 risky than a higher tar product, I don't know. I know 17 that it has less tar, which is an area of focus that 18 the public health people have had for years. 19 Q. But so what? 20 In other words, if less tar is not safer 21 than more tar, than for me as a consumer, so what? 22 More has 21 milligrams, Now has one 23 milligram. Okay. One has 20 more milligrams than the 24 other, but so what? 25 Why~ should that be significant to me as a KLEIN, BURY & ASSOCIATES, INC. 32 I consumer? 2 A. I'm not sure I understand your question. 3 Q. You're telling me it doesn t have any 4 health consequences. 5 So I'm sa~ ying to you, other than saying 6 More has 21 and Now has one, I'm asking you as a 7 consumer well so what? 8 Whatts the significance of that 20 9 difference? 10 MR. WEBER: Let me object to the form of 11 that. I'm not even sure what the question is 12 myself. 13 Go ahead and answer. 14 A. I'm not sure I understand the question. 15 I'm not trying to be obstinate here. I'm just not 16 sure -- 17 Could you repeat it? 18 Q. I'll ask it a different way. 19 Aren't you suggesting in your 20 advertisements ot less tar that less far is less of a 21 health risk to smokers? 22 A. I don't believe we're suggesting that in 23 the advertising. 24 I think what we're saying in ads, which 25 is a regulation that we operate under, that if we run KLEIN, BURY & ASSOCIATES, INC. 33 1 an advertisement or a piece of point of sale, that 2 we're requ_ired to indicate what the tar and nicotine 3 is by the FTC, that we're reporting what it is for 4 that particular product that the ad is running for. 5 So I - I don't believe there's any 6 suggestion in the advertising that it is, I believe as 7 you said, a less risky product. It just - it has 8 let's tar. 9 Q. Which signifies what? 10 A. That there's less tar in the product. 1 1 There's no - there's nothing about us 12 following the government regulation to indicate what 13 the tar and nicotine levels are in a product. It's 14 saying that we're suggesting or saying it's less tar. 15 There's been or had been over the years a 16 joint effort between public healthpeo ple andythe 17 companies to create products that have less tar 18 because the consensus was that whatever the risk is in 19 cigarettes, that a general reduction in tar would be 20 the right thing to do. So the industry working in the 21 earlier days in a collaborative mode with pubCic 22 health people reduced the tar. 23 Whether or not those products have less 24 risk in them is something that would have to be 25 determined over a lon eriod of time. Ma be they do, KLEIN, BU~~ & ASSOCIATES, INC. 1 may be they don't, but the consensus was from the 2__public health people that the right thing to do was to 3 reduce the tar levels. 4 Q. Follow this hypothetical question A . 5 friend of yours says to you as follows I'm a smoker 6 and I'm you know, I'm getting a li@e worried by 7 virtue of the Surgeon General's warning and I've dont 8 some reading and I'm really worried about whether 9 smoking is onna give me lung cancer or any other 10 disease, but~ really you know, I really enjoy 11 smoking. I don't really care what brand I smoke, all 12 I really need is that jolt of nicotine. I'm happy 13 with any brand. Now I noticed thaty our product Now 14 has one milligram ot tar and I've been smoking More 15 with 21 milli~rams of tar. Don't you recommend tbat I 16 smoke Now. 17 MR. WEBER: Let me object to the form of 18 the question. 19 Q. What would your answer be? 20 MR. WEBER: Same objection. 21 Q. What would your answer be to that 22 question? 23 You're the president of R.J. Reynolds. I 24 can smoke More or I can Now, and I'm asking you for 25 your recommendation since Now contains one milligram KLEIN, BURY & ASSOCIATES, INC. - I of tars, I'm smokin More with 21 mi lig~rams of tar 2 and I ask~you, Mr. ~chindler, aren't I better off 3 smoking Now• What's your answer? 4 MR. WEBER: Same objection. 5 A. Well, in in hypothetical question you've 6 put on the table I would tell my friend the same thing 7 1 told you what I know about the whole issue related 8 to tar Ievels, that public health people felt years 9 a~ o that it was - it was the right thing to do for 10 these products to be designed in sucF a way that the 11 tar level would be brought down. 12 If that person said to me do you think 13 this product is safer, which I think is what ou're 14 implying in your hypothetical question, I'dytell them 15 I have no idea. 16 I'd just tell you what I know that public 17 health people have said and you make up your own 18 choice. 19 I don't really know if it reduces risk or 20 if you're implying safer in this question, which I 21 sense you are I would tell them essentially the same 22 thing I've tola you and they would be free to make up 23 their mind. 24 Q. In this hypothetical the friend - he's a 25 friend o~oEII~, BUI~Y &yAS~~~CIATEt,,IN~.I'm -36 1 not interested in the history, I't ~simply asking you, 2 I want a direct answer Now or l~iore, I want your 3 recommendation, should I smoke Now or More don't givt 4 me history. I just want a one word answer f`1ow or 5 More. 6 Are you able to give me a one word 7 answer? 8 MR. WEBER: Objection on form and asked 9 and answered. He 'ust answered that questiQn. 10 A. Well, I would~answer the question the way ~~ I just answered it to you. Q. Okay. 13 A. That's what I would tell my friend. 14 I'm not in control of my friend's 15 decision-making process. They re asking me for 16 information and I would provide them what I know and 17 they would make their decision. 18 Q. In my hypothetical your friend is not 19 asking you for tnformation and he's not asking you for 20 a discourse, he's askinglyou should I smoke More or 21 Now in your opinion? may not follow your advice. 22 I'm simply askin you do you recommend that I smoke 23 Now because it~as less milligrams of tar or you're 24 not giving me an answer? 25 MR. WEBER: Same ob1'ection. KLEIN, BURY & ASSOCIATES, INC. 51601 8332 Pages 31 -
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ANDREW SCHINDLER 37 1 I'm not even sure that was a question at 2 the end, Stanley. 3 Q. -Question mark. ~" 4 . MR. WEBER: Can you read that back for me 5 please? 6 (Thereupon, the requested portion of the 8 7 record was read back as above recorded.) 9 obviously 'rqting to 'do you yolu w friend ant but 10 recommendyou that e go you smoke Now or do you not answer the I 1 question directl~y~~ 12 MR. W~EBER: Let me object both on form 13 and asked and answered. But go ahead. 14 A. I think I've already answered this -- 15 Q. Okay. 16 A. -- to ou. 17 I would share my information with them, 18 what I understand about tar levels. 19 If my friend asked me do you believe that 20 a cigarette witb less tar is less risky I d say I 21 don t know. It may be, it may not be. 22 I would onl - I would share with them 23 what I understand. Iywouldn't want to mislead a 24 friend. 25 And the guidance from public health KLEIN, BDRY & ASSOCIATES, INC. . 38 1 peo ple over the years had been to reduce tar levels, I 2 beGeve on the theory that that would be a better 3 product, so we have worked as an industry to do that. 4 This hyuothetical question as to whether 5 or not it is or isn t safer, I don't know. 6 But I would share with them what I 7 understand and that it may be, but it may not be. And 8 it would - I just don't have the data to make that 9 kind of definitive answer to someone. 10 Q. You wouldn't want to mislead a friend. 11 But aren't you in fact misleading the 12 ' American public when you state under oath in 1997 that 13 it is your view that the Surgeon General's warning on 14 your packs of cigarettes which say smoking causes lung 15 cancer, you're saying that's not accurate, it's only a 16 risk factor. 17 Isn't that misleading the American 18 public? 19 MR. WEBER: Let me object to the form and 20 also object to asked and answered. We went 21 through his~position on the Surgeon General 22 warnmgs a Fialf hour ago. 23 A. I aon't -- 24 MR. ROSENBLATT: Now in Florida we don't 25 have speakin ob~1'ections you know, because it KLEIN, B~RY & ASStOCIATES; INC. 39- 1 disrupts the train of thought. It interrupts 2 the dialog. There's no necessity for that. 3 Now obviously he's for ot the question. 4 Q. (By Mr. Rosenblatt) Or, do you have it 5 in mind? 6 A. I'd prefer that you repeat it after this 7 back and forth. 8 (Thereupon, the requested portion of the 9 record was read back as above recorded.) 10 A. I don't believe I'm misleading the 11 American_ public. I'm not sitting here in that 12 context. You're asking me my point of,view. 13 And my poin{ of view is that cigarette 14 smoking is risk factor for these diseases, which to me 15 means that it may cause these diseases. 16 And I recognize that that point of view 17 is different than what is - the Surgeon General has on 18 the warning label. 19 But to me the issue is, if I believe that 20 cigarettes may cause these diseases, to me the real 21 question is what have we done as company to respond to 22 that? Do we ignore it or do we work to address how to 23 improve p~ro~ducts over time? 24 We've done through this earlier in this 25 deposition that we have worked to address those issues KLEIN, BURY & ASSOCIATES, INC. 40 1 that the public health community believes that may 2 relate to the risks associated with smoking. That s ~ what we have done. Q. I am not asking you for your point of 5 view. 6 I am asking you as the president and CEO 7 of a company that selIs billions of ci arettes to the 8 American consumer what evidence you~ave to say that 9 smoking doesn't cause disease but it's merely a risk 10 factor? 11 And you're telling me as I've understood 12 it, that you're telling us this and it's yourpo int of 13 view based on discussions with technical people you've 14 bad at Reyn~olds' is that essentially correct? 15 MR. V1yEBER: Let me object to the form. 16 A. Well, I -- 17 Q. He said yes. 19 A. I'm assuming you asked me a question. Q. Yes. 20 A. I didn't say that cig arette smoking 21 doesn't cause diseases, which I believe is the way you 22 characterized it. 23 I said that it may, that it's a risk 24 factor, that it may cause, but that science in the 25 sense of laboratory~ studies with mice where all the KLEIN, BURY & ASSOCIAtES, INC. 41 1 variables are controlled, that at the end of that, 2 those types of studies, lab studies, that the - 3 there's no more higher incidence, is my understanding, 4 of lung cancer through those studies in mice that were 5 exposed to smoking and mice that weren't exposed to 6 smoking. 7 Because of that, as I understand this 8 scientific discipline, there's an absence of that kind 9 of confu-mative proof or the mechanism and what have 10 you, so that cigarette smoking stands as a risk 11 ~actor, which means it may cause these diseases. But 12 it wasn't as you charactenzed that I said it doesn't. 13 I said that it ma . 14 Q. It's fair to say, Mr. Schindler, that the 15 technical people at Reynolds and you disagree with the 16 Surgeon General wanztrtg that smoking causes lung 17 cancer; correct? i~8 A. We believe that it may. 20 sayin I don't know whethte the c.eqausesllung cancer? g 21 It may, maybe it does, and maybe it 22 doesn't, so therefore, your answer is, you don't know 23 whether it causes lung cancer, smoking; correct? 24 A. As I've testified up until now, I believe 25 it's a risk factor and therefore that it ma . The KLEIN, BURY & ASSOCIATES, INC. . -42 1 mechanism is exactly how it may.work to confirm 2 whether or not it does hasn't been established and 3 therefore it may. 4 Q. And - but I asked you a new question. 5 I've heard you say repeatedly that cigarette smoking 6 may cause cancer. 7 My new question to you is, isn't that the 8 equivalent of saying you don't know if cigarette 9 smoking causes lung cancer when you say it may? 10 A. I think - when I say it may, I tb.tnk 11 it's - what that means is that it may cause it, it may 12 not, but - it's both of those. 13 Q. What is your company doing to.determine 14 whether less tar is safer than more tar in cigarettes 15 from a health standpoint? 16 A. What do you mean? In terms of research 17 or -- 18 Q. Anything. Anything. 19 1 mean, isn't that the question that the 20 consumer has, in your judgment, if I smoke Now I'm 21 getting less tar, if~i smokeMore I'm getting more tar 22 and I want it know if less tar is safer for my health. 23 And I'm simply asking you what, if 24 anything, is Reynolds doin to answer that question? 25 MR. WEBER: O~'ect to the form. KLEIN, BURY & A~SOCIATES, INC. ')1G01 8333 Pages 37 -
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ANDREW SCHINDLER 43 1 Go ahead. 2 A. You're asking me is Reynolds doing( any 3 research to differentiate levels b~f1-tsk between ow 4 tar cigarettes and higher tar cigarettes, is that what 5 you're asking me? 6 Q. I'm asking you what Reynolds is doing to 7 help consumers answer the question as to whether less 8 tar is safer than more tar? 9 A. I do not know - I mean, I don't know how 10 to answer that exactly in the sense of your question. 11 What do you mean by what are we doing? 12 Q. In terms of answering - are you doing any 13 research or anything to help answer that question, 14 whether less tar is safer than more tar? 15 A. I don't know of any research that 16 Reynolds is doing relative to that question. 17 I believe that there are people in the 18 public health community or medical researchers that 19 are, I imagine, are looktng at that and are people 20 continually involved in reviewing the literature and 21 to what degree there's research going on around that, 22 that they would be knowledgeab7e of that. 23 I do not know of any specific research 24 that we have going on relative to that. I mean, that 25 type of research not being a scientific but that KLEIN, hURY & ASSOCIATtS, INC. 44 1 would seem to me to be long-term epidemiological types 2 of research. 3 So our scientists would study literature, 4 things that are published, if anybody s doing work on 5 that. 6 1 do not know of any research that we are 7 doing relative to that question. 8 MR. WEBER: Stanle , we've been going I 9 think just an hour now. Ifyyou want to fmd a 10 breakpo int. 11 MR. ROSENBLATT: Within five minutes. 12 MR. WEBER: Thank you very much. 13 Q. (By Mr. Rosenblatt) As the president and 14 CEO of R.7. Reynolds Tobacco Company, is your 15 paramount responsibility to your stockhol~ers, to your 16 employees to who? 17 A. fqo. 18 I think we have responsibility to our 19 shareholders, responsibility to our employees, 20 responsibility to our smokers, our consumers, to 21 deliver products.that meet their needs, responsibility 22 to the communities that we work in, be good corporate 23 citizens. I think a public corporation has a number 24 of res onsibilities. 25 ~. What is a document called A Frank KLEIN, BURY & ASSOCIATES, INC. 45 - 1 Statement To Cigarette Smokers? 2 Have you seen that document? 3 A. I've seen it one or two times before. 4 Q. And what does it mean to you? 5 MR. WEBER: Let me object. 6 What does the document as a whole mean? 7 Q. The significance of it? 8 You've read it. 9 A. Well, I've only seen it briefly a couple 10 times before so if ou're gotn~ to ask me to comment I I on the meaning ofysomethtng I've only seen for a few 12 minutes weeks or months ago, l would prefer to see the 13 document. 14 Q. Yes. I will - I'll be hap py to hand it 15 to you, you know, after the break. 16 All I'm askinghyou now is from a general 17 or generic standpoint w en - in the tobacco industry 18 when this - as you know, it was a full pa e ad in many 19 newspapers, a - called A Frank Statemenf To Cigarette 20 Smokers generally,~enerically what was the import or 21 the significance o A Frank ~tatement To Cigarette 22 Smokers? 23 MR. WEBER: Same Objection. 24 Go ahead. 25 A. I you're asking me to comment on a KLEIN, BURY & ASSOCIATES, INC. 46 1 statement or ad or document that was back in the 'S0s 2 as I recall, that I've seen for a few minutes a couple 3- tunes in the past. 4 With that in mind, I will give ou ttt 5 point of view as to what I remember, I ihink it meant. 6 And my take on it when I saw it was, that 7 the industry was committing research dollars to study 8 the whole issue of smoking and health. 9 (Whereupon the above referred to document 10 was marked as Illaintiff s Exhibit No. One for 1~ Identification.) 14 MR. ROSENBLATT: Let's take a break. 16 (Whereupon, a short break was taken.) 17 Q. (By Mr. Rosenblatt) Okay. 18 Mr. Schindler, at the time of the break I was asking 19 you some eneral questions about A Frank Statement To 20 ~igarette §mokers. A couple of minutes ago I handec 21 you - did~you mark it as Plaintiff s Exhibit A or One 22 - Plaintiffs Exhibit One. 23 And have you had tirne to go through that? 24 A. I really need a couple minutes because I 25 just kind of glanced at it. KLEIN, BURY & ASSQCIATES, INC. 4 1 Q. Sure. Go ahead. Take a couple minutes 2 and do that. 3 MR. WEBER: Stanley, can I ask is this 4 some kind of re-typed print or verston~ 5 Because it's got some misspeIhngs on it that 6 I've never seen in any of the originals I've 7 seen over on the years. 8 Is this sometlting - like the one Susan is 9 looking at there is the one I reco nize. 10 js this like a re-ty~ version~? 11 MS. ROSENBLA`IT: Yes. 12 MR. WEBER: Because there are some -- 13 MR. ROSENBLATT: Other than the 14 misspe~llin s each and every word -- 15 MR. LBER: You will represent then for 16 the record that what you intend this to be is 17 an identical copy, of the actual frank 18 statement, but thts is not that. 19 MR. ROSENBLATT: Correct. 20 MS. ROSENBLATT: And we can substitutt 21 and enlarge this one later on if there's a 22 problem with this. 23 MR. WEBER: Okay. 24 A. Okay~ 25 Q.3 (y~Mr. Rosenblatt) Okay. You've read KLEIN, BURY & ASSOCIA"I'ES, INC. 4 1 it. 2 Is it fair to say, Mr. Schindler, that on 3 the couple of other occasions you've looked at this 4 document, A Frank Statement To Cigarette Smokers, 5 you've never in the past read it as carefully as you 6 have 1ust now? 7 A. No, it's not fair to say that. 8 Q. So, in other words, on the other 9 occasions y~o~u've read it 1'ust as carefully? 10 A. Well, I've read it, yes. 11 Q. Okay. How did this come about? 12 What is A Frank Statement To Cigarette 13 Smokers, in terms of the public? 14 A. How did it come about? 15 Q. Yes. 16 A. Well -- 17 Q. Well, how or why did it come about? 18 A. Can you give me - I don't think it's on 19 here - the date it was back in the '50s, I believe? 20 Q. Correct. I can ive ou the date and the 21 - I believe that it was pub~shedyin newspapers in 22 January January, 1954. 23 A. '54. 24 It's difficult for me to say how this 25 came about. I was not there. I was ten years old at I KLEIN, BURY & ASSOCIATES, INC. 5 1.b0 1 £t ;_,,l Pages 43 -
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ANDREW SCHINDLER 49 1 the time. So I wasn't with the company or obviously a 2 part of the company when this took place, so I'm not 3 sure I can say to you how this c~rte about-- 4 QA. ~kn any definitive way. 6 Q. No. 7 My understanding is, and I'm going to 8 certainly say this to the jury in this case, that I 9 consider A Frank Statement To Cigarette Smokers to be 10 one of the seminal documents in the whole smoking and 1 I health controversy over the years. 12 Do you consider it to be an important, 13 seminal, si~nificant, fundamental document? 14 A. I'm in no position to make that judgment. 15 Q. Okay. 16 A. There's so many documents it's hard for 17 me to -- 18 Q. I think it's fair to say that this Frank 19 Statement To Cigarette Smokers came about as the 20 result of certain research, scientific research that 21 was published. 22 Do you know what scientific research this 23 was intended to address? 24 A. I do not know. 25 Q. Oka Do you know - I'm not asking you KLEINy BURY & ASSOCIATES, INC. 50 1 the names of newspa rs. or other publications where 2 A Frank Statement To Cigarette Smokers appeared in 3 January, 1954, but do you have any sense of how widely 4 advertised it was at the time? 5 A. No, I don't. 6 Q. Okay. Now, we've - I've told you this 7 was published in January of 1954. 8 As you have read this document, is it 9 fair to say that the sentiments expressed in A Frank ]0 Statement To Cig arette Smokers are essentially the 1 I same today of, for example, your company? 12 And if you want me to go get specific, 13 I'll be happy to do so. 14 A. Well, I'd like you to get a little more 15 specific with the word sentiment. 16 Q. Okay. In this first column toward the 17 bottom there's a statement, quote, we believe the 18 products we make are not injurious to health. 19 A. Yes. 20 Q. You stand by that statement today, don't 21 you? 22 A. Well, this is a statement that was made 23 in 1954. Again, I was nowbere near being involved in 24 this company, so my 25 Q. Wheny ou -- KLEIN, BURY & ASSOCIATES, INC. 51 1 A. When you say do I stand by that . 2 statement; I believe earlier in testimony I satd that 3 cigarettes are a risk factor and they may cause the 4 diseases that - or some of the diseases that are 5 associated with smoking. So that's my view of how I 6 feel today. 7 Q. But I'd really appreciate a direct 8 question - a direct answer to a direct question and 9 then, you know, elaborate all you want. 10 And my question to you, Mr. Schindler, 1 I is, do you believe the products made by R.J. Reynolds 12 Tobacco Company today are not injurious to health? 13 A. Weil, as I've said before, I believe they 14 may be. They may be - they are a risk factor and they 15 may cause the diseases that are associated, but it's 16 not clear or determined scientifically that they do. 18 QA. Uop here?~e second column -- 19 Q. I think right about there. 20 A. All right. 21 Q. The second paragra h, quote, regardless 22 of the record of the past, the fact that cigarette 23 smoking today should even be suspected as a cause of a 24 serious disease is a matter of deep concern to us. 25 Does that sentence accurately reflect KLEIN, BURY & ASSOCIATES, INC. 52 1 your sentiments as president and CEO of R.1. Reynolds 2 Tobacco Company ? 3- MR. WEBER: Before we go ahead, let me 4 object because I'm not sure that s a direct 5 quote from the frank statement. 6 We ma want to check that as part of that 7 ~oint I made earlier, Stanley. 8 Regardless of the record of the past the 9 fact that cigarette smoking today should even ~e 10 suspected as a cause of a serious disease is a matter 11 of deep concern to us. 12 MR. WEBER: So it is. 13 MR. ROSENBLATT: It is. It's exact. 14 MR. WEBER: Okay. Sorry. I know this i: 15 testimony you're concerned with given what you 16 said a moment ago in terms of something you 17 believe is important. I just wanted to make 18 sure we've got it accurately and we're working 19 off a roxy ~~ocument. 20 Q. gBy Mr. Rosenblatt) Now, my question to 21 you is, that statement I just read reflects accurately 22 today your sttion as president and CEO of R.J. • 23 Reynolds Tobacco Company, doesn't it? 24 A. No. 25 Mypo sition today, as I've stated several KLEIN, BURY & ASSOCIATES, INC. 53 1 times in this deposition, is that cigarette smoking is 2 a risk factor for a number of diseases and therefore, 3 that means that it may be a cause of these disease and 4 that there's work needed to - into the whole issue. 5 So I -- That's my point of view. 6 Q. Okay. As you read the document A Frank 7 Statement To Cigarette Smokers, and this is being 8 published in newspapers to the American people and 9 obviously it's addressed to cigarette smokers; 10 correct? 11 That's your understanding of this 12 document? 13 A. It was published in, I guess, newspapers 14 and magazines, I m assumtng that, that it's a 15 statement to the American public. 16 Q. Okay. 17 A. Which would include smokers. 18 And you would agree - well, the not to 19 get ptc , but the statement is not addressed to 20 nonsom ers, it's addressed to cigarette smokers, the 21 title of it? 22 A. Yes. 23 p Okay. Now, you would agree that as you 24 read tfie document in its entirety, one of the 25 fundamental promises that the si nators to the KLEIN, BURY & ASSOIATES, INC. 54 --- 1 document are making to the Amerjgan smoker is, we're 2 going to spend a lot of money researching the questiot 3 of whether cigarette smoking causes disease; correct? 4 MR. WEBER: Let me object for misstating 5 what it say s. 6 Go ahead. 7 Q. That's not word for word, but the 8 document taken as whole, you would agree, would ou 9 not, Mr. Schindler, that the promise being made tQ the 10 American smoker is, we're goin to spend a whole lot 11 of money through the Tobacco Industry. Research 12 Committee to explore the question of whether our 13 products, cig arettes, cause disease; is that correct? 14 MR. WEBER: Same objection. 15 Go ahead. 16 A. It - to me what it says is, is that 17 resources are being pledged to do research into areas 18 that are scientifically related to the health risks 19 associated with smoking. 20 Q. And that's what the tobacco industry is 21 still doing today, isn't it, through the Council for 22 Tobacco Research? 23 A. We give money to the Council for Tobacco 24 Research, the industry does, to do basic research into 25 those diseases that are associated with smoking. KLEIN, BURY & ASSOCIATES, INC. 51601 S335 Pages 49 -
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0, ANDREW SCHINDLER 55 1 Q. Basic research, meaning, it's your 2 understanding that the Council for TobaccoResearch is 3 funding scientific studies into wilt'at are the- 4 underlytng causes of lung cancer and other diseases; 5 correcf? 6 A. Basic - I am not a scientist as you well 7 know. Basic research to me means tl'tat - this is 8 totally up to the scientific advisory board that is 9 set up to fund projects - is that basic research is 10 into, for example, the causes of cancer, which 11 ultimately could lead to cancers related to smoking, 12 but basic research into cancer, for example. 13 QQ What is your understanding today in April 14 of 1997 what conclusions have been reached on that 15 subject? 16 A. I'm -- 17 MR. WEBER: Let me object. 18 A. I don't understand your question. 19 Q. The basic causes of cancer. 20 MR. WEBER: Conclusion -- 22 Do you want to clarify by whom, Stanley? 23 Q. Yes. By all this research that's being 24 done. 25 A. I'm not a scientist. I don't feel KLEIN, BURY & ASSOCIATES, INC. I capable for statin the basic causes of cancer. 56 2 Q. Yes. I~m certainly not asking it to you 3 from a technical standpoint. 4 Is it your understanding as a very well 5 infonned layman that the causes of cancer in 1997 are 6 they still a m stery or do we know something? 7 A. I dyon't - Mr. Rosenblatt, I'm not a 8 scientist. Things that I hear and read in the broad 9 category of cancer, people write about genetic 10 redisposition, they wnte about environmental 11 ~actors, they write about lifestyle factors related to 12 diet and all sorts of things~ but - so I don't - you 13 know, beyond that I don t know how else to answer 14 your uestion, not being a scientist. 15 ~. Is it your understanding~ that those 16 questions are still being researched today? 17 A. The causes of cancer? 18 Q. The causes of cancer? 19 A. It is my understanding that the 20 scientific community is still doing a tremendous 21 amount of research into the causes of cancer. 22 Q. Well, more specifically, is it your 23 understanding that the Council for Tobacco Research as 24 well as your own company is researching the basic 25 causes of cancer? KLEIN, BURY & ASSOCIATES, INC. 57 1 A. The Council for Tobacco Rese arch that we 2 give money to has a scientific advisory board made up 3 of some emtnent medical researchers and scientists 4 around the country that take project requests from 5 researchers and scientists and decide among themselves 6 as to which research to fund and that research is 7 dealing with in addition to other things, I'm sure, 8 the causes of cancer. 9 Q. Pretty much the same situation as was 10 expressed in A Frank Statement To Cigarette Smokers, 1 1 they wanted to do research then back in 1954 and we're 12 stih doing r~esearch today; right? 13 ZvIR. WEBER: Objection as to form. 14 Go ahead. 15 A. I can talk to today that the research and 16 how the Council for Tobacco Research works with 17 eminent scientists on the scientific advisory board 18 that has control - total control over how this money 19 is distributed for research grants that are proposed 20 to them into the causes of disease, cancer obviously 21 being one of them, in terms of how they allocate tfiose 23 resources and make their judgments about projects. 24 lung cQancer? cigarette smoking a possible cause of 25 A. We have -- KLEIN, BURY & ASSOCIATES, INC. 1 2 4 5 6 7 8 9 0 10 12 13 14 15 16 17 18 19 20 21 22 23 25 58 MR. WEBER: Let me object. Asked and _ answered. that. Q. You're going to tell me we've discussed It's a very direct simple question, Mr. Schindler. Is cigarette smoking a possible cause of lung cancer? MR. WEBER: Same objection. Asked and answered. Q. Go ahead. Never asked and never answered. A. As we have discussed before, I believe that cigarette smoking is a risk factor for lung cancer and other diseases associated with smoking. And as I have said before, to me that means that it may be a cause. Q. So it's a possible cause? A. I'm saying it's a risk factor for these diseases, and it may, it may, not be. Q. Is cigarette smoking a probable cause for lung cancer? A. I believe that it's a risk factor. Q. Is there any more significant risk factor for lung~c~ancer than ci arette smokin ~~~ KLEIN, BURY$& ASSOCIATES, INC. 5~- ~ A. I don't know. 3 smokQer? You mentioned that your father was a 4 A. Yes. 5 Q. Is he living? 6 A. No, he's not. 7 Q. Okay. How heavy of a smoker was he? 8 A. He smoked when he was a smoker as near 10 , da I recall, probably two and a half, three packs a y 11 ~ nd there carne a time i hi lif h h 12 n s e w en e quit smokii 13 ~ A. Yes. 14 Q. And why did he quit smoking? 15 A. He went to a doctor - he was having 16 circulation problems, the doctor diagnosed, and he 17 went to the doctor and the doctor toId him - he said, 18 Dick, I happen to be with him when this happened, this 19 is somewhere in the early, mid '60s, he said, you can 20 either stop smoking or I can cut off your hands and 21 feet some day. And m father stopped smoking. At the y 3 2 time he was 47 or 48 years old. Q. Do you know whether or not the doctor 24 diagnosed his condition as something called Buerger's 25 disease? KLEIN, BURY & ASSOCIATES, INC. 1 60 A. I don't know if that yy3s the term. 2 I just remember that that encounter in 3 r the doctor s office. 4 Okay. And other than your knowing it was 5 a prob em with circulation, do you know any more 6 detail than that? 7 A. No, I don't. 9 Q. He was 6gather passed away at what age? 10 Q. Did he ever smoke again -- 11 A. No, he didn't. 12 Q. -- after that encounter with the doctor? 13 A. No, he didn't. 14 MR. WEBER: Andy, just be careful. Make 15 sure he's finished with the question. That 16 time you started to answer and he was in the 17 middle of it. 18 THE WITNESS: Okay. 19 Q. Did you have an understanding then or did 20 the doctor explain what it was about smoking that if 21 . your father continued was oing to cause amputations? 22 A. No, I don't. I don't remember any other 23 - anything else other than what I've told you. 24 Q. Are you married? 25 A. Yes I am. KLEIN', BURY & ASSOCIATES, INC. 51601 8336 Pages 55 -
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ANDREW SCHINDLER 61 1 Q. Does our wife smoke? 2 A. Yes, se does. 3 Q. -How heavy, a smokefria she? - 4 A. Oh, my wtfe smokes a pack a day. 5 Q. What did your father die from, what 6 condiUon? 7 A. He had a stroke and within a year, year 8 and a half after the stroke he died of a variety of 9 complications. I'm not exactly sure the precise thing 10 at the point he died, but he had a stroke and a year, 11 year and a half later he died. 12 Q. When your father had that encounter that 13 you've described with the doctor, that was a~retty 14 shocking unusual kind of episode, wasn't it. 15 It had an impact on him? 16 A. He stopped smoking. 17 Q. He had been a heavy smoker foryears and 18 after hearing the doctor say that he stopped. 19 A. As I mentioned earlier, he had - he was 20 smoking as I recall two and a half to three packs a 21 day, he-had that encounter with the doctor at age 47, 22 and he never smoked again, that I know of. 23 Q. Did he have any difficulty quiting? 24 A. I don't recall. We're bac7c 30 some years 25 ago. KLEIN, BURY & ASSOCIATES, INC. 62 1 All I remember is that he stopped 2 smoking and never smoked' again. 3 p And you don't remember any problems that 4 he had? 5 A. I don't recall any. It's a long time. 6 ago. 7 I know he never smoked again. 8 Q. Did your wife ever quit? 9 A. She quit once that I can recall. 1 Q. For how longt? 11 A. I think it was for like three years or 12 so. I'm not totally sure of the time time frame that 13 she quit. It was about for three years, as I recall. 14 Q• But, I mean, this was during the 15 marriage? 16 A. Yes. Yes, as we've been together a long 17 time. 18 Q. Do you remember why she quit? 19 A. She decided she didn't want to smoke any 20 more. She quit. 21 Q. But why? 22 I mean, did she have a cough or a cold 23 or -- 24 A. I don't recall. 25 I mean, yo~u're asking me has my wife ever KLEIN, BURY & ASSOCIATES, INC. 63 1 quit smoking and I said yes, she did. As I recall, it 2 was for a pe~riod of three years. 3 Q. -Well, didn't you say to her something 4 like, you know, Honey, you've been smoking X number of 5 years and I notice you re not smoking any more, how 6 come? 7 A. It was her decision. She stopped 8 smoking. 9 Q. I understand that. 10 But I assume you're a normally curious 1 I guy and your wife smokes a pack a day for X number of 12 years and one day she stops smoking~and you don't say 13 to her how come you're not smoking any more? 14 A. I don't recall saying to her how come 15 6 you're not smoking any more. I Q. And I'm sure when she started smoking 17 three years later you didn't ask her how come you re 18 starting again? 19 A. No. 20 She's an adult and I assume she was 21 makin her own decisions. 22 And Mr. Schindler, whether it's children 23 or wives or siblings, you take a totally hands off 24 policy as long as someone's an adult' if they want to 25 smoke, fine, they don't want to smoke fine? KLEIN, BURY & ASSOCIATtS, INC. I You're Mr. Hands Off? 64 2 MR. WEBER: Let me object to the form o - 3 the question. 4 A. With re ard to my wife, who is an adult 5 that is fully knowledgeable, informed as to the risks 6 associated with smoking, I think she's perfectly 7 capable of making a decision. 8 Q. How can should be fully knowledgeable, 9 Mr. Schindler, if she listens to you who says smoking 10 may cause lung cancer and it may not cause lung 11 cancer? 12 After hearing that, how am I 13 knowledgeable? 14 Because I don't know whether it causes 15 lung cancer or doesn't cause lung cancer, after 16 listening to you. 17 MR. WEBER: Let me object to the form. 18 Again, I'm confused. 19 A. Me, too. 20 Could you ask these questions again? 21 Q. Be happy to. 22 You're saying your wife is fully 23 knowledgeable. 24 And I'm saying if your wife were to ask 25 you does ci arette smoking cause lun cancer your KL~N, BURY & ASSOCIA~ES, INL 65 1 answer is, well, Sweetheart, it's a risk fac tor, maybe 2 it does and then again maybe it doesn't. 3 So hearing that answer, how is she fully 4 informed as to whether it does or whether it doesn't? 5 MR. WEBER: Same Objection. 6 Go ahead. 7 A. My wife is an intelligent adult that 8 lives in our society is aware of Surgeon General's 9 reports, is aware ot warning labels on packs and ads, 10 is aware of everything that is written continually 11 about cigarettes. I thmk she is aware of as almost 12 anybody in our society of the risks associated with 13 smoking. She's a fully informed adult, capable of 14 makia her own decisions. 15 You would agree, would you not, 16 Mr. Schindler, that if someone accepts your view that 17 maybe cigarette smoking causes lung cancer and maybe 18 it doesn't, that as a fully informed individual 19 obviously it's a gamble, if they smoke, maybe they 20 will get Iun~ cancer as a result of smoking and maybe 21 they won't. 22 And what you're saying, as I understand 23 it is, that's the adult choice, whether you choose to 24 take that gamble; isn't that correct? 25 A. As I've said before I believe that KLEIN, BURY & AS§OCIATES, INC. 66 1 cigarettes are a risk factor for tlse diseas es. I 2 believe therefore that they may cause them or they may 3 not. 4 I believe the public health people in 5 this country, the scientists and doctors, -have 6 published vast amounts of data, information, the medi 7 has certainly covered this whole issue. 8 It is inconceivable to me that someone, 9 including my wife, that would not be informed on the 10 risks associated with smoking. And that when she or 11 anyone makes a choice to smoke or when I make a choice 12 to smoke that I am doing it fully aware of what the 13 risks are associated with the product. 14 Q. When your father had the episode with the 15 doctor that_ you've described, you were how old then? 16 A. This was - 19 or so, 19, 20 as I recall. 17 8 Q. You were a smoker by thent? 19 Q. After that episode did your father tell 20 you don't smoke or did he tell you, Andrew it's an 21 adult decision, if you want to smoke, smoke~ 22 A. I can't remember my dad telling me not to 23 smoke after that. We're talking 30 some years ago. I 24 just don't remember that encounter. 25 Q. Did either of your parents ever express KLEIN, BURY & ASSOCIATES, INC. 51601 r,a37 Pages 61 -
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ANDREW SCHINDLER 67 1 an opinion to you when you started smoking and when 2 they realized that you were in f4ct a smoker that this 3 is something you should not do`at that it displeased 4 them in some way, the fact that you had become a 5 smoker? 6 A. I can't remember specific - we're going 7 back 30 some years. I can't remember a specific 8 encounter when my parents said don't smoke. 9 I imagline they probably made some 10 comments, but don't specificaihy remember them. 1 1 Q. Do you have children. 12 A. Yes, I do. 13 Q. Do they smoke? 15 A. One daughter does. 16 AQ. Two irlsytwo da u ghtersave? 17 Q. Ages. 18 A. Twenty-three and 20. 19 Q. One smokes and one doesn't? 20 A. Twenty-three year old smokes. 21 Q Was there ever a discussion as to why one 22 made that choice and one made the no smoking choice? 23 A. Well, at one point they both smoked. Now 24 only one of them smokes. The oldest, the 23 year old 25 smokes. KLEIN, BURY & ASSOCIATES, INC. 68 1 p The 20 year old smoked for awhile and now 2 she's become a nonsmoker? 3 A Ri~; ht. 4 Q. . Dt~a she ever discuss the reasons why she 5 became a nonsmoker? 6 A. No. She stopped smoking. 7 Q. What agh did your daughter start smoking? 8 A. Well, w en they were I guess in that 16 9 year old range they started sneaking cigarettes and my 10 wife and I sat them down and told tbem that they 1 1 shouldn't be smoking, that they weren't old enough to 12' make that decision, that there are health risks 13 associated with smoker and that they better knock it 14 off until they become legal age to smoke or to buy the 15 product. The same discussion we'd have about underage 16 drinking. 17 So in terms of when did they actually 18 become smokers, as far as I know, it was probably at 19 around 18 or so. 20 I know they snuck cigarettes and things 21 of that nature, and we sat them down and talkea to 22 them about it. 23 Q. So the only time that you ever really 24 took a position on smoking is as it relates to age; in 25 other words, if someone is 18 or over your~potnt of KLEIN, BURY & ASSOCIATES, INC. - 69 I view is, that's an adult decision whether they choose 2 to smoke or not smoke is that decision, but if 3 someone's under the age of 18 and you have any control 4 or input in the situation, you willytry to influence 5 them not to smoke? 6 MR. WEBER: Let me object to the _fo_rm, 7 You can answer. 8 A. Could you ask this question again, 9 please? 10 Q. No. 1 1 MR. WEBER: He couldn't if he tried. 12 (Thereupon, the requested portion of the 13 record was read back as above recorded.) 1 3 A. There's a lot in that question. 15 Could you -- 16 Q. Yes. 17 As I've understood your testimony, you 18 know, so far today, I asked you a hypotheucal about a 19 friend and other things have come up, my understanding 20 is, that your point of view is, if you're an adult 2~ whether you smoke or don't smoke is entirely your adult decision and 1, Mr. Schindler, am not going to 23 interfere or on attempt to have input. The only time 24 you will try to have input is if someone is under what 25 yc,u consider to be the age to make an adult choice? KLEIN, BURY & ASSOCIATES, INC. 70 1 MR. WEBER: Let me object to the form. 2 Again you can answ - ' er. 3 f somebody's A. I 21 years old or 45 years 4 old or 35 years old and th ey ask me my point of view 5 about smoking and risks a ssociated with smoking, I 6 would talk freely to them about it, like we're tallung 7 here today 8 If I encounter, a s I did with my 9 daughters, somebody who is underage I will certainl} 10 assert myself into my daughter's life if they're doing 11 something that I believe is inappropriate. 12 And I would be the same way about 13 alcohol. If a daughter under age is drinking, I would 14 have the same point of view. 15 So your characterization that I would 16 never talk to anybody as lon as they're of legal age 17 is simpl not correct. But if somebody's 25 years old 18 or 40, for me to in ect myself into their life I think 19 is ina propriate. I~ they ask me my point of view I 20 woulScertainly share tFiat with them, as I have with 21 you here today. . 22 Q. Does tnvoluntary smoke cause lung cancer 23 or any other disease? A. You're talking about ETS, environmental 25 tobacco smoke, secondary smoke? KLEIN, BURY & ASSOCIATES, INC. 71 1 Q. Well, I call it - I'll tell you -- 2 My definition of involuntary smoke - if I 3 as a nonsmoker am sitting in this room and two or 4 three people are smoking, I'm being forced 5 tnvoluntarily to take in some of that smoke. So I'm 6 talking about a nonsmoker who's in a situation where 7 there's other people with cigarettes and some of that 8 smoke comes into the nonsmoker. 9 So my question is, does involuntary 10 smoke, secondhand smoke passive smoke, whatever you 11 wish to call it, does that ~nd of smoke cause lung 12 cancer or any other disease? 13 MR. WEBER: Let me object to the speech 14 prefacing the question, but go ahead and 15 answer. 16 A. You're asking me do I believe that 17 secondhand smoke causes lung cancer, is that the 18 question? 19 Q. Correct. 20 A. I don't believe it does. I don't believe 21 that the epidemiology, as I understand it, and talking 22 to our scientists points in that direction. I don't 23 believe there's any - been any epidemiology that 24 points to secondhand smoke being a cause of lung 25 cancer. And based on that scientific data that has KLEIN, BURY & ASSOCIATES, INC. _72 1 been done up to this point, I don't believe it does. 2 Q. So your position on involuntary smoke is 3 different than yourpo sition on active smoking, 4 correct, as I've justheard your answer? 5 A. My position on active smoking is that the 6 h Pntdemtolooy ..' -e esfahltshad smoking as a^sk factor 7 8 for certain ~tseases. And my position on ETS or secondhand 9 smoke is that the epidemiology, as I understand it, 10 and talk with our scientists, does not establish that I 1 as a risk factor. 12 Q. Have you read the Surgeon General's 13 report of 1986 or any part of that report? 14 A. No, I haven t. H ' 16 AQ. l have not re~ad the eportepI have had 17 breifings and discussion on it and read things, you 18 know that were reported in newspapers and so forth. 19 Well, the - according to the EPA, ~ 20 secon hand smoke is a Class A carcinogen. 21 On what basis do you say it's not? 22 A. On the basis•that the epidemiology that 23 has been done to this point collectively on secondhand 24 smoke, the summary of the studies, those included in 25 the EPA and the research done since then has - if KLEIN, BURY & ASSOCIATES, INC. 51 GO 1 8 338 Pages 67 -
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i ., ANDREW SCHINDLER 73 1 there's essentially - if one no risk, its cumulative 2 risk is 1.04. 3 When the EPA issued ttreir ]'udgment that 4 ETS or secondhand smoke was a Class A carcinogen they 5 had excluded one study, as I understand it, and they 6 had a 1.19 in their methodology. 7 The research has continued and it's now 8 down to 1.04. 9 I believe there are studies of males in 10 the work place or something like that has a 11 statistical risk of .97, which means in that case that 12 it's even less. 13 And in my understanding and in talking to 14 our scientists as eptdemiolo y develops over time and 15 the number keeps coming dgown, that it points in the 16 direction of it not being a risk factor. 17 I also understand in terms of other 18 epidemiolo y studies, things related to diesel fumes 19 studies rela~ed to high tension wires that had risk oF 20 three times for example, the EPA would say no, that's 21 not enou~,~t data. 22 ~So on very low statistical data, data 23 that has gotten even smaller and smaller relative to 24 risks percentages the EPA made a judgment on 25 cigarette smoke that was counter to other things they KLEIN, BURY & ASSOCIATES, INC. I had done in the past, including studies that I 2 understand that there was risk relative to 1.65 on 3 caffeine and heart disease and they declared it was 4 riot relevant enough to make any judgment - or make any 5 judgments there. 6 So it seems to me and what I've discussed 7 with our scientists in trying to understand this that 8 the statistical data moves away and has continued to 9 move away from this judgment that the EPA made. 10 One of the scientific advisory board 11 members that was I believe at the press conference 12 made the statement that the people in the room - this 13 is from the EPA scientific advisory panel, that the 14 people that came to that press conference were at 15 greater risk in driving through the overall 16 environment of Washington than they were from 17 secondhand smoke. 18 Stanley Glantz, in San Francisco, made 19 the statement you re at greater risk of not using your 20 seat belt. 21 The Congressional Research Service, that 22 studied this independently, concluded that there was 23 not data here to justify the judgment that the EPA 24 made. 25 So in looking at all of that and talking KLEIN, BURY & ASSOCIATES, INC. '15 1 on our scientists, it is my feeling that saytng that 2 secondhand smoke causes lung cancer, there s 3 absolutely no proof for it. Q. Are you familiar with the Hieriama 5 (phonetic) study? 6 A. No, I'm not. 7 Q. Have you ever in your life read any 8 epidemiolo~gy study? 9 A. No, I haven't.. 10 Q. What is epidemiology? I 1 A. It's a medical science that studies 12 statistical relationships around certain diseases by 13 interviewing people and tracking groups of people over ~ 5 time. Q. I want you to assume that Norma Broin, 16 who is a lead flight attendant in the Broin class 17 action, was brought up in Utah, never smoked, was 18 never around smoke until she became a flight 19 attendant, and she worked as flight attendant for a 20 number of years and developed lung cancer. And I want 21 you to assume that her doctors, as well as one of the 22 most knowled eable pulmonologists in the world, who 23 have reviewedgher records, say that her lung cancer 24 was caused by her exposure to secondhand smoke in 25 airline cabins. KLEIN, BURY & ASSOCIATES, INC. 76 1 What is your basis for disagreeing with 2 that assessment? 3 MR. WEBER: Let me object to the form. 4 You can answer, 5 A. My understanding of the epidemiology that 6 has been done before, during and after the EPA 7 jud gment is, that it does not demonstrate cigarette 8 smo-king is a risk factor for lung cancer. 9 Q. What caused Norma Broin's lung cancer? 10 A. I have no idea. 11 MR. WHITING: Excuse me. Mr. Schindler, 12 I believe you just said that the evidence 13 doesn't say that cigarette smoking is a risk 14 factor. 15 Did you mean exposure to cigarette smoke? 16 A. Exposure to secondhand smoke or ETS is a i 78 risk factor. Q. Your company sued the United States 19 Environmental Protection Agency; isn't that correct? 20 A. Several companies in thts industry filed 21 a suit against the EPA and their judgment of 22 secondhand smoke as a Class A carcinogen. 23 Q. Be that as it may, Reynolds sued them; 24 right? 25 A. Yes. KLEIN, BURY & ASSOCIATES, INC. 77 1 Q. Okay. What's the status of that lawsuit? 2 A. It's - all I know is that it's still in 3 the court. I don't know the status bey ond that. 4 Q. And the reason you sued them with your 5 Fellow tobacco companies was, because their report 6 hurt your business; correct? 7 A. No. 8 Q. Then why did you sue them? 9 A. Because we believe they were wrong in the 10 judgment that they made. 11 Q. Where did you sue them? 12 A. I believe that's in a court in 13 Greensboro, North Carolina. 14 One of the reasonsy ou sued them, the 15 Unit -States Environmental Protection Agenc , was 16 because a tremendous number of buildings andy 17 government facilities banned smoking; correct? 18 A. That's not my understanding. 19 1 believe we sued them because we felt 20 that the judgment that they had rendered with regard 21 to secondhand smoke was incorrect and wrong. 22 Q. You would agree would you not, that you 23 have learned that since the KPA report came out 24 thousands of buildings in this country, hundreds of 25 municipa~lities have banned smoking in their ICLEIN, BURY & ASSOCIATES, INC. 79- 1 facilities, such as the United States Defense 2 Department? - 3 I mean, you're aware of that, aren't you? 4 A. And pnor to the EPA report thousands of 5 buildings and communities and so forth had put 6 restrictions in with regard to smoking. 7 Q. Were doing it. Okay 8 And more - after the EPA report, more 9 followed; correct? ~0 A. I suppose that's true. Q. How come they don't get it? 12 How come the onl peo le who aren't 13 satisfied that the findings ofythe E~nvironmental 14 Protection Agency and the Surgeon General and the 15 medical and scientific communities on the issue of 16 passive smoke, the only industry that questions that 17 repeated~ and over and over again is the tobacco 18 industry. 19 MR. WEBER: Let me object to the form. 20 You can answer. 21 A. I'm not sure what you're asking me. 22 Q. Yes. 23 I'm asking you, obviously the people who 24 banned - had the power to ban smoking in buildings, in 25 the defense de artment, in airlines, in governmental ' KLEINP BURY & ASSOCIATES, INC. 51601 8339 Pages 73 -
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ANDREW SCHINDLER 79 1 agencies, have concluded that environmental tobacco 2 smoke is a danger to nonsrnokers. 3 - And my question is, hdmcome the only -- 4 A. I have no -- 5 MR. WEBER: Wait. Let him finish his 6 question, because he hadn't finished it yet. 7 Q. How come the only group in this society 8 who hasn't acce ted that, that environmental tobacco 9 smoke poses a danger to nonsmokers, is the tobacco 10 industry? 11 MR. WEBER: Object to the form. iGo 12 ahead and answer. 13 A. I have no idea if that's why any given 14 company or governmental agency eliminated smoking in 15 their work areas, because they've concluded that it's 16 dangerous. 17 1 don't know what - if that was - what 18 degree that was part of their dectsion, pressure from 19 employees. There are a variety of reasons. And it's 20 impossible for me to discern all the judgments that 21 people have made. 22 And in the same time frame people have 23 accommodated smokers and nonsmokers in their work 24 areas. Other people have made judgments to eliminate 25 smoking~ KLEIN, BURY & ASSOCIATES, INC. -W 1 And I have no idea if all these different 2 people have made this judgment on this notion of 3 danger that ou've put out here in this manner. 4 Q. Yyou don t think it s clear that generally 5 speaking the reason why the United States Defense 6 Departm,ent, many governmental agencies and entities, 7 many private employers and buildings have banned 8 smoking in their facilities is because they are 9 satisfied that secondhand smoke poses a health danger 10 to nonsmokers; you don't accept that as a general 11 proposition that s accurate? 12 A. I don't. I mean, I don't know. I've not 13 talked to these people. 14 I know organizations that have 15 accommodated smokers in their work environment. 16 Q. You would agree, would you not that 17 there are no warnings on your cigarette pac)'cs that 18 secondhand smoke causes any disease? 19 A. That's right. 20 The watnings on our packs are the ones 21 that exist today by direction of the - our government, 22 legislature, working with the Surgeon General, FTC and 23 so forth. 24 Q. And obviously if that direction was not 25 there, there would be no warnin s on any of your KLEIN, BURY & ASSOIATES, INL. 81 1 packs? 2 A. It's a theoretical, speculative question. 3 p Well, let's - let me ask you this 4 hypothetical question. As president and CEO, you 5 know, you're a decision maker, you're a decisive guy, 6 that's how you got the job, presumably, there's no 7 mandated warnings, as far as the government is 8 concerned, as far as society is concerned, you have an 9 absolute right to put on your packages anything you 10 like. WouTd you have a health warning? 1 1 MR. WEBER: Let me object. 12 Do you mean now, Stanley, before? 13 Q. Yes. Now. Today. 14 Would you have a health warning on your 15 Camels and Winston and all the other brands? 16 A. I think this is - it's really a 17 theoretical question. 18 We've had health warnings on packs of 19 cigarettes, on cartons, on advertising placements for 20 over what, 30 years now. 21 Q. Becausey ou were required to. 22 MR. WEBER: Wait. Let him finish his 23 answer Stanley. Let's be fair here. 24 A. Through a process of public health 25 officials, the industry legislatures agreeing on on KLEIN, BU1tY & ASSOCIATES, INC. 82 1 what the social policy of this society would be. 2 What we're created were the warnings that 3- are on the packs, we comply with that, it's there;- 4 it's been in our society for 30 years. 5 The whole issue of cigarette smoking ~has 6 been dealt with in various forms and social poticy for 7 years and years in this country. 8 And the theoretical world that says what 9 would you do if nobody was doing any research into 10 cigarettes just doesn't exist. It's been an issue in 11 our society for many, many years, and this is the ~ 3 social oltcy it's created and we comply with that. QP This is not a tough question, 14 Mr. Schindler. And if ~ou re - hear me out. If your 15 ultimate answer is I can t answer it, that's your 16 answer. 17 I'm simply asking you, I want you to 18 assume that there are no government mandated warnings. 19 As far as the government is concerned~~you can put on 20 your packs of cigarettes whatever you like. 21 And my question to you as the president 22 and CEO of R.J. Reynolds Tobacco Company is, isn't it 23 true Mr. Schindler, that if you were not required to 24 put health warnings on your packages of cigarettes, 25 you would have no heaIth warnin~s? KLEIN, BURY & ASSOCIATES, INC. I MR. WEBER: Let me object and move to 2 strike the statement at the beginning. 3 Go ahead and answer. 4 A. I don't think that's necessarily trv,e. 5 I think in the world that you're trying 6 to create is a world where you end up with government 7 officials, public health officials, people in the 8 industry resolving this issue for soctery, , and that it 9 would work in this theoretical world if that began 10 today or as. it did 30 or 40 years ago. So I- it s 11 inconceivable to me that cigarette smoking issues 12 would be dealt with in a sing ular, somewhat narrowed 13 discreet way that you descnbed it. 14 I think society, of which which are part, 15 would work and decide what to do with regard to health 16 warnings. 17 Q. If in this hypothetical situation you 18 could put on the packages of your cigarettes any 19 warning you wanted, would your wanzing say that Camels 20 may cause lung cancer and maybe not; is that what your 21 warning would say? 22 Because that's what I've heard you say 23 repeatedly all day today. May be it does, maybe it 24 doesn't. 25 MR. WEBER: Same obt'ection. That is KLEIN, BURY & ASSOCIATES, INC. -~~-- 1 object to the form. _ 2 You can absence. 3 A. I think in the hypothetical world you 4 have created for this uestton, that the companies, 5 public health people,~urgeon General, legislators, 6 would work out what the-tealth warnings are. 7 And I don't believe the hypothetical 8 world you create, that somebody independent of that 9 social structure, or social policy issue would ever 10 exist, and it would work out as to what the labeling 11 would be. 12 Q. You're telling me -- 13 A. As it did in the past. 14 Q. You're telling us that if you were not 15 required to deal with the Surgeon General and various 16 a encies of government you would voluntarily seek 17 them out for their input! 18 A. I'm saying that the process that existed 19 in our society, given the issues surroundin smoking, 20 would work its way through the total socie~y in terms 21 of social policy and that that's how you would end up 22 with warning labels, which is what happened, you know, 23 30 some years old. I think that process would happen 24 again. 25 Q. How man smokers quit smokin eve year? KLEIN, BU~Y & AS~SOCIATE~, I Pages 79 - 8 5 160 1 Ft3 4 Cn 1
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y ANDREW SCHINDLER 85 1 A. I'm not sure. Probably one and a half, 2 two million, a couple million people a year, I 3 suspect. - 4 Q. And obviously I'm not asking you why each 5 and every individual quit smoking. I'm asking you a 6 more general question. 7 Would you not agree that the great 8 majority of smokers who quit smoking do so because 9 they are worried about theealth consequences of 10 their continuing to smoke? 11 A. I think people quit because of health 12 consequences, I thinkpe.ple have quit because of the 13 cost of the product, I think people quit for a whole 14 varie of reasons. 15 My question to you is, would you not 16 agree that the majority of quitters quit for health 17 reasons? 18 MR. WEBER: Objection, asked and 19 answered. 20 A. I don't know. 21 I know that people have - who smoke 22 consider, are concerned about the health risks 23 associated with smoking, and that when they decide to 24 quit, peop le have that somewhere in theireq u~atton for 25 quiting but they have other issues as well. So I'm ~XEIN, BURY & ASSOCIATES, INC. -83 1 in no position to know what percent ofpeople solely 2 because of health risks concerns, I think that's part 3 of the judgment and to what degree that is total, I 4 really don t know. 5 Q. Well, don't you think that - although 6 your father's experience may have been unusual in bow 7 direct and scary his doctor was, don't you think that 8 it's repeated over and over and over again in doctors 9 offices throughout this country where a doctor tells 10 his patient to 9uit smoking for health reasons or do 11 you think that s an unusual occurrence? 12 MR. WEBER: Let me object to the form. 13 Go ahead and answer. 14 A. Well, I think doctors tell people to quit 15 all the time. 16 Q. For health reasons; right? 17 Q. Okay. You think there are many doctors 19 that are telling patients you know, you look a little 20 nervous today, Jack, why don't you take up smoking? 21 A. No, I don't. 22 Q. That doesn't happen, does it? 23 A. I doubt it. I don t think so. 24 Q. You wouldn't want that kind of doctor, 25 wouldy, o~~u, if there's such a doctor out there that KLEIN, BURY & ASSOCIATES, INC. 8T I would suggest to nonsmokers that they take up smokin9 2 You wouldn't want that kind of doctor, would you. 3 A. I - that's why - I don't know what to say 4 about that, Mr. Rosenblatt. 5 Q. Sure You know what to say about that. 6 A. I don t even know how to begin to answer 7 that. 8 Q. Sure you know what to say about that. 9 You wouldn't want to know from such a 10 doctor because he would have very poor judgment in 11 your opinion; correct? 12 MR. WEBER: Let me object to the form of 13 the question. 14 A. You asked me if doctors tell patients to 15 quit smokinR , and I said yes, they do. 16 Q. Now, how many - whatpe rcentage of 17 smokers who quit smoking have difficulty quiting? 18 A. I have no idea. Some do, some don't. I 19 have no idea what percenta~e of smokers who quit 20 smoking have what you cali difficulty. 21 I don't even know what you mean by 22 difficulty. 23 Q. I'll tell you my definition of difficulty 24 is a guy or a woman that say to themselves I smoke a 25 pack and a half a day this is a terrible addiction, I KLEIN, BUR. & ASSOCIATES, INC. 88 think it's going to kill me some day, I have sincerely tried to quit and I can't quit because I m booked on the Camels and the Winstons. That's what I mean by difficulty. A. Have they tried to stop? Q. Yes. And they can't. A. Well 40 some milhonpeo ple have quit smoking. In 1§82 the industry sold over 600 billion cigarettes. Today the industry sells 480. Obviously a lot people have quit smoking. My own personal famil experience people have quit. 6Your dau hter? A. My daughter, my wife, myself, my father, friends I know have quit. So when you describe difficulty, it's hard for me to exactly know. Are you talking about being edgy or nervous for a day or two after you quit smoking? Q. No. How many of the quitters start again? You've had a lot of experience with that, too. You guit and ou go back. A. i eally dy kn Now, these,ptr~oduct Q. s that are on the market nicotiae ~m Nicodet~n you've seen all of ~CLEIN, BUR~' & ASSO~IATES, INC. 89 1 those, isn't it your understanding that those products 2 are on the market and make a profit because they are 3 directed to people who are unable to quit smoking on 4 their own? 5 A. Yes. 6 Q. Is it your view that cigarette smoking is 7 addictive? 8 A. What does that word mean? 9 In our society today -- 10 When I grew up as a kid, addiction, ou 11 know : back in the '60s, before I was a kid, '5~s, 12 '60s, 70s, addiction meant hard drugs, heroin and 13 cocaine, it meant intoxication, it meant unable to 14 control the use of the drug, it meant losing your job, 15 it meant desperate acts to get enough money to buy the 16 eroduct, robbery, burglary. That was - you know, your 17 tamily could break up. If you wanted to get oft of 18 the addiction you had to be committed to some medica 19 institution for some period of time, you went through 20 massive withdrawal. 21 Today we talk about addiction in 22 everything from, you know caffeine. I saw a British 23 researcher talking about addiction to carrots, in the 24 Wall Street Journal -- 25 Q. Carrot addiction? KLEIN, BURY & ASSOCIATES, INC. 90 1 A. Yes. There was BritiLh research that did 2 research on carrots. 3 And the Wall Street Journal within the 4 last year an article written on the new frontiers of 5 addiction as it relates to chocolate. People talk - 6 fr uently in every day language talkin about 7 addiction to television, talking about ad~iction to 8 violent sports. 9 And it seems to me when you ask me do, I 10 believe ci arettes are addictive in that full array -- 11 Q. ~ have a feeling you're going to say no. 12 MR. WEBER: Please let him answer without 13 interrupting him. 14 MR. ROSENBLATT: The tape is going down. 15 MR. WEBER: It doesn't matter. 16 MR. ROSENBLATT: It's a long, long and 17 nonresponsive answer. 18 A. I m very very responsive. 19 MR. WE9ER: It's perfectly responsive. 20 YouJu~st don't happe n to like it. 21 MR. ROSEhIBLATT: I love the answer 22 because he's tiptoeing around a very direct a 23 question. 24 His answer is no it's not addictive. 25 And I'm hearing all this about heroin. KLEIN, BURY & ASSOCIATES, INC. 51601 8341 Pages 85 -
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ANDREW SCHINDLER 3 91 94 1 MR. WEBER: If you really did like the I they thought I might be askin ? 2 answer you would have let h'un complete it. g 2 A. Well it was, you know discussion of 3 Ml~. ROSENBLATT:-t^fove thesnswer. , , 3- issues, questions getting a sense of how de sitions 4 MR. WEBER: You would have let him , 4 work, since I've never been involved in a deposition 5 complete it. That's the way a trail lawyer 5 before, that type of thing ~ 6 deals with an answer he likes. 6 Q. Were any of th e sessions what might be 7 MR. ROSENBLATT: Finish the answer. 7 characterized as mock sessions where you were asked 8 MR. WEBER: Go ahead. , 8 to presume that this was a deposition setting and 9 A. So, when you have this broad range 9 various lawyers would be asking you questions and you 10 definition of addiction, and you say to me are 10 would actually give answers and then they would 11 ct arettes addictive I say to you that cigarettes are 11 evaluate your answers? 12 like caffeine not like heroin and cocaine. 12 A. Well, there were sessions where I would 13 Q. (i#y Mr. Rosenblatt) So they're not 13 be asked que stions and I would answer them. 14 addictive. ~ 14 Q. 1~Vhop layed me? 15 Bottom line is, cigarettes are not 15 A. Ted Cirossman. 16 addictive; correct? 16 Q. How did he do? 17 A. I don't think the word applies. 17 Less obnoxious than I am, or about equal? 18 Q. Okay. So it's not addictive 8 A About the same 19 , . Is it your vtew, Mr. Schindler, and I 19 . . Q. About the same? 20 think the tape - maybe we can get this question and 20 A. Ted Grossman is a very competent guy. 21 answer in - is it your view that any cigarette smoker 21 Q. Now, before the lunch break we were 22 who has suff cient willpower and determination and 22 discussing - you talked about the enormous number of 23 really makes up his or her mind can quit smoking if 23 smokers who have quit smoking 24 they really want to quit smoking? 24 What has been Reynolds's strategy, 25 A. I believe tf~you want to quit smoking, 25 marketing technigu es as to how to replace those KLEIN, BURY & ASSOCIATES, INC. ~ KLEIN, BURY & ASSOCIATES, INC. 92 1 you can quit smoking. It's proven by the huge number 2 of pee le that have quit smoking. 3 C~ And all the people that are using the 4 Nicoderm and the nicotine gum they ust7ack 5 character and they're a bunch o~' weal~ings, because 6 they need help and they can't do it on their own; 7 right? 8 MR. WEBER: Objection. 9 A. No. 10 I don't - if they feel that they have the 11 need for nicotine gum or Nicoderm to help them, I 12 think that's fine. 13 But I believe at the end of the day, you 14 know, giving up smoking is driven by your desire to 15 give up smokin i6 MR. ~OSENBLATT: That's it. ~ 89 (Whereupon, a lunch break was taken.) 20 Q. (By Mr. Rosenblatt) Mr. Schindler, is 21 Mr. Johnston still with the company? 22 A. No, he's not. 23 Q. Oka When did he leave? 24 A. He left - he retired in end of June of 25 last year of '96. I~LEIN, BURY & ASSOCIATES, INC. -J~ 1 quitters? 2 Because once someone has quit smoking and 3 presumably if this is a lifelong decision, they're 4 never going to pick up another cigarette, you ve 5 obviously lost a customer. 6 So my question is,- how do you go about 7 replacing the quitters? 8 A. We don't have any strategy for replacing 9 quitters. The people that quit quit and the people 10 that are smoking are smoking and there's no strategy 11 that we have to replace smokers. 12 Q. Well, with or without a strategy, it's 13 obvious that the replacement smokers come from younger 14 people, isn't it? 15 A. It's - I'm not sure what you mean by 16 replacement smokers. 17 Q. Younger people -- 18 A. What are you asking me here? 19 Q. Why do you spend millions upon millions 20 upon millions of do7lars in advertising? 21 Isn't part of the reason at least to 22 replace the smokers who quit and the smokers who die? 23 A. We spend money on advertising to try and 24 persuade smokers that are smoking our competitors 25 brands tocry our brands. There's no strate~y there KLEIN, BURY & ASSOCIATES, INC. 93 1 Q. He didn't go into some other business or 2 with some other company, he's retired, as far as you 3 know? 4 A. He's retired, yes. 5 Q. Why do you think that Mr. Lebow admitted 6 that his products cause cancer and are addictive? 7 A. I think you have to ask Mr. Lebow. I 8 have - I don't know why he did that. 9 Q. You don't have any idea on that? 10 A. No. 1 1 I- ou have to ask Mr. Lebow. 12 Q. Wyell, I'm entitled to ask other people 13 for their opinion of that action. 14 Do you have an opinion as to whether he 15 sincerely believes that? 16 A. Again, I think that's for Mr. Lebow to 17 answer. 18 Q. How much time, if ay, did you put in 19 preparing for today's deposition. 20 A. Well, several different sessions. In 21 terms of total time, I don't know, ma be several days 22 over a period of several weeks, couple months or so. 23 Q You mean these were sessions where 24 several lawyers would have been present with you 25 questionin you or askin you the kinds of Questions KL~IN, BURY ASSOCIATES, INC. -~~ 1 to spend money to get what you,qall replacement 2 smokers. 3 It's to try and rsuade a Marlboro smoker to smoke a Camelpor a Winston or what have you. 4 6 poor Q use of ney~a a that ge nerallyt speaking the 7 studies show that that ends up pretty much as a wash? 8 A. I don't know what you mean by studies 9 show it ends up as a wash. 10 Our marking dollars are directed at 11 trying to get competitive smokers to switch to our 12 brands or try our brands. 13 Q. And how do you determine if that's 14 successful? 15 Do you have studies or statistics on 16 that? 17 A. Ultimately we determine that by whether 18 or not you've improved your market share and if 19 whether or not in improving your market share you have 20 gotten competitive smokers to consider your brands. 21 Are you able to give me even a rough 22 estimate as, let s say, the last five years how many 23 Marlboro smokers have switched to Reynolds' products 24 or vice versa, how many Reynolds smokers have switched 25 to Marlboro? KLEIN, BURY & ASSOCIATES, INC. 51601 8342 Pages91-!
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ANDREW SCHINDLER 97 1 A. I can't give you a number as to number of 2 Marlboro smokers that ma have switched to our brands. 3 Q. -Have you read Mr. J6}mston's deposition 4 that was taken a couple years ago? 5 A. No, I haven't. 6 Q.. I want you to assume that when he was 7 discusstng the issue of advertisin to get smokers to 8 switch brands, that he said it ends up pretty much as 9 a wash, and I understood him to mean that be as man 10 Marlboro smokers that will switch to Reynolds you']ly 1 1 lose aQproximately the same amount of smokers going to 12 other brands made by other com~anies. 13 Do you aRree with that. 14 MR. WEBER: Object to the 15 characterization of testimony. 16 If you have it, you ought to show him 17 precisely. 18 MR. ROSENBLATT: I don't have it right 19 here. 20 A. I'm not familiar with Jim's testimony. 21 I would like to see it, if you had it, 22 but I'm just not familiar with that. 23 I'm telling you that from my point of 24 view that are marketing dollars are devoted to try and 25 get com~petitive smokers to switch to our brands. KLEIN, BURY & ASSOCIATES, INC. 1 says well, that hypothetical question~ just 2 not - I'mjust not going to answer it. 3- He's here to answer questions. But okay. 4 Q. (By Mr. Rosenblatt) Do you take the 5 position that -- Strike that. 6 Do you think that any nonsmoker ever 7 drove along a highway, saw one of your ads or saw a 8 Marlboro ad and was attracted to it, people look very 9 happy, they look youthful, they look like they were 10 having a good time, and bought a pack of cigarettes 11 and became a smoker as the result of advertising or is 12 that something you think has never occurred in the 13 h'story of recorded mankind? tt. I don't believe somebody makes a decision 15 to smoke by looking at a billboard on an interstate. 16 I believe that smoking is something, that 17 is so intertwined in our culture that your dectsion to 18 smoke or your exposure to the smoking behavior is a 19 function o~ your social environment, parents, friends, 20 relatives and so forth and that it is just 21 inconceivable to me t~at somebody who is not engaged 22 in smoking behavior would be driving down a highway 23 and see an ad and decide because of that ad that 24 suddenl they decide that they're going to smoke. I 25 just fmdythat not conceivable not reasonable. KLEIN, BURY & AgSOCIATES, INC. 98 1 Q. (By Mr. Rosenblatt) Forget about Jim I Q. So you're telling me that not -- 2 Johnston's testimony. 2 By the way, how much does Reynolds spend 3 My question to you simply is, is it your 3 on tobacco advertising in a given year? 4 im ression over the years that generall speakin the 4 A. We spend a-bout one-point - on 5 amount of smokers that come from other lines to 5 advertisin About $100 million. 6 Reynolds pretty much equals the number of smokers, the 6 ~ Q. ~-las that been the situation for the last 7 Reynolds smokers that go to other brands within a 7 five, ten years about $100 million per year? 8 five or ten year period, or you just don't )<cnow, you 8 A. It's `!0, 80, $100 million. 9 just don't have any idea? 9 Q. Okay. Now, is it your position that none 10 A. We've been losing market share, so just 10 of that $1 QO million is directed toward the nonsmoker? 11 broadly t~n that I would say that apparently it's not 11 A. 'Absolutely that's my position. 12 ' even. hVe've lost market share. 12 Q. So 100 percent of your advertising budget 13 Q. If there were a strateg y to replace 13 is directed toward people who are already smoking a 14 quiting smokers with people who have never smoked, 14 brand, to Ret them to switch from that brand to one of 15 that would come under the broad general heading of 15 your brands? 16 marketing, wouldn't it? 16 A. It's devoted to trying to get competitive 17 A. There aren't -- 17 smokers and also at your current smokers to reinforce 18 MR. WEBER: Objection. 18 , their brand of choice. So if somebody a Camel smoker, 19 Q. I understand that. You've told me 19 to reinforce their brand of choice and to appeal - 20 there's no stratep. 20 attem t to a ppeal to competitive smokers. 21 Now I m simply asking you, and I have the 21 ~ ~. How could someone rove to you that 22 right to ask hypothetical questions I'm simplX asking 22 3 cigarette smoking causes cancer. 23 you, if there was such a strate gy~ know you ve told 23 What kind of experiment would satisfy you ~ 24 me there is no such strategy, tt t~tere was such a 24 that for a particular indivtdual the cause of that 25 strategy would that strategy come under the eneral I~LEIN, BURY & ASSOCIATES, INC. 25 individual's lu~ng cancer was smokin~, where you would KLEIIV, BURY & ASSOC;lATES, INC. I 99 category of marketing? ~ 2 MR. WEBER: Same Objection. 3 Go ahead. 4 A. There is no strategy to use marketing 5 dollars to try and get people to start smokin Ig t's 6 my view not even posstble to do. You're asking a 7 hypothetical question that I just think is simply not 8 feasible. 9 Q. Let me explain something to you, 10 Mr. Schindler, this may be difficult for you to grasp, 1 I the concept of a hypothetical question is that even as 12 you hear the question you may think it's absurd it's 13 stupid, it calls upon you to assume the facts in the 14 question are true andydo your best to answer it. 15 Will you try to do that in the future? 16 A. I'lltry 17 MR. WEBER: Let me object to 18 Mr. Rosenblatt grv~~ing you any instructions in 19 how to answer. You answer to the best of your 20 abiliry 21 Iustask him questions. 22 MR. ROSENBLATT: Well, your instruction 23 and obviously in all these hours of sessions 24 he's been instructed to take the position that 25 any time he's asked a hypothetical question he KLEIN, BURY & ASSOCIATES, INC. I say no, no, in this guy's case it's not merely a risk 2 factor, I'm satisfied tfiat the caus`e of his lung 3 cancer is the fact that he smoked three packs a day 4 for 30 years? 5 A. You're talking about a specific 6 individual as opposed to the population? 7 Q. Yes. Right. 8 A. I have no idea what anybody could do or 9 what would need to be done relative to a specific 10 individual. 11 Q. . The reason I'm asking the question is is 12 because tt's been obvious from your testimony tbat 13 your position is cigarette smoking may cause lung 14 cancer and it may not cause lung cancer, but it is 15 definitely a risk factor for lung cancer. 16 So I'm saying okay, that's your position. 17 What would I have to do, what•would 18 medical science have to do to prove to you that 19 cigarette smoking caused an individual s lung cancer? 20 A. I'm not a scientist or a doctor and~l 21 don't know in the case of a specific individual what 22 kind of scientific proof or evidence would have to 23 come to bear on a particular individual for it to be 24 proven. 25 Q. Well, let me try to discuss with you KLEIN, BURY & ASSOCIATES, INC. Pages 97 - 1 51601 8343
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ANDREW SCHINDLER 103 1 causation, not from a real technical standpoint but 2 from_a common sense standpoint. 3 If you were told an indivtdual had 4 cirrhosis of the liver and you were told that that 5 individual had consumed a fifth of vodka every night 6 for ten years and, you know otherwise he led a 7 pretty run-of-the-mill, normaf life, wouldn't you 8 accept the fact that the cause of his cirrhosis of the 9 liver was the vodka for the ten years or would you 10 need to - would you need to know something about the 11 furniture in his house? 12 MR. WEBER: Let me object. 13 Q. As a_ possible risk factor. 14 MR. WEBER: Let me object to the form of 15 the question. 16 Q. You can answer it. 17 A. Could you repeat the question, please? 18 (Thereupon, the requested portion of the 19 record was read back as above recorded.) 20 A. I'm not a medical doctor and my knowledge 21 of cirrhosis of the liver would be rather limited. 22 In this situation that you're portraying 23 here, I - I might say that maybe or perhaps the 24 alcohol consumption may have had something to do with 25 it, but I don't know. I mean I - I really have no KLEIN, BURY & AS'SOCIATES, INC. 104 1 knowledge of that. 2 Q. Another hypothetical question. A kid 3 starts smoking when-he's 15 years of age, smokes two 4 packs a day until he's 41, at age 41 he develops lung 5 cancer, his parents are nonsmokers, they're perfectly 6 healthy, in their 80s, his siblings are all 7 nonsmokers, they're perfectly healthy, this man has a 8 wonderful diet and a stress-free job. 9 Wouldn't your common sense tell you that 10 the cause of his lung cancer was the two paclcs of i l cigarettes for all those years or would you need more 12 intormation? 13 A. Mr. Rosenblatt, as I've testified 14 throughout the da about risks associated with 15 smoking I wouldysay that it may have caused that, it 16 may not ~tave, that it would be a factor related to it, 17 perhaps. But in terms of concluding that that 18 individual's lung cancer specifically came from 19 ci.garettes, I would have no way of knowing. It may, 20 given the risks, the known inherent risks in smoking, 21 but it may not have. I have no way of knowing in your 22 theoretical example. 23 Q. Isn't it obvious to you, Mr. Schindler, 24 that the reason that the tobacco industry takes the 25 position that smoking ~ d~oesn't cause lun cancer but is KLEIN, BURY & ASSOCIAT~, INC. _1fl5_- 1 merely a risk factor for lung cancer ts ou can 2 continue with this line for the next 100yyears and 3 keep selling cigarettes, because there is no way for 4 anyone to ever prove to you that cigarette smoking 5 causes lun~g cancer? 6 MR. WEBER: Object to the form. 7 p You can't even come up with a 8 hypotfietical situation where you would sa okay in 9 that case I'm satisfied the cause of this indi~vidual's 10 lung cancer was 30 years of smokin~ three packs a day, I 1 even in that kind of situation you II say no, I don t 12 accept the cause. 13 MR. WEBER: Same objection. 14 A. Could you ask your question again, 15 please? 16 Q. I don't think I really have to. 17 With the background I've given you, isn't 18 it obvious that causation by virtue of the structure 19 which the tobacco industry has set up can never be 20 proven here? 21 You will never accept the fact that 22 cigarette smoking caused a person's lung cancer'? 23 A. Mr. Rosenblatt, l am giving you not an 24 industry position, but I'm giving you my point of 25 view. And I believe that cigarettes - smokin~g have KLEIN, BURY & ASSOCIATES, INC. 1 1 known and inherent risks and it may be the06cause of 2 these diseases. That is what I have testified to and 3"that is what I believe. 4 ,Q. Well, don't you recognize that the 5 position you've giv,en me which you say is your 6 personal point of view is in fact the industry 7 position? 8 A. It is and may be, but I'm giving you my 9 point of view. That's what I am under oath to testify 10 to. 11 Q. Isn't it a fact, Mr. Schindler, that the 12 reason Bennett Lebow's so-called admission became : 13 front page story around the country is because up 14 until that time no CEO or owner of any tobacco company 15 has ever admitted publicly that cigarette smoking 16 causes cancer? 17 A. Perhaps you're right. 18 Q. And certainly you re not telling us or 19 are you that it is a coinctdence that the CEOs of 20 Reynolds and Philip Morris and brown and Williamson 21 and Lorillard all take essentially the same position 22 that you've expressed here today? 23 A. Well, I'm testifying to what I believe. 24 Q. And you're testifying to what you believe 25 as you told us earlier based on discussions that KLEIN, BURY & ASSOCIATES, INC. -F07- I you've had with employees of your company in the 2 research and science divisions• correct? 3 A. It's based on what h believe, it's based 4 on tall:ing to - having discussions with scientists in 5 research and development and my own belief system. 6 It's what I believe. 7 Q. Who's Jacob Sullum? 8 A. I don't know who Jacob Sullum is. 9 Q. You mean in all those hours of 10 reparatton no one asked you a question about Jacob 11 gullum, S-U-L-L-U-M? 12 MR. WEBER: I'm going to object to the 13 form of the question. 14 You can answer. 15 A. I do not recall who Jacob Sullum is. 16 p Do you recall an article published in 17 sometFiing called Forbes Media Critic? 18 Does that ring a bell? 19 A. No, not that I can think of. 20 Q. When a governmental entity, let's say, 21 the Los Angeles City Council or the New York City City 22 Council is discussing proposals related to banning 23 cigarette smoking in various facilities, buildings and 24 otherwise, what is - has the position of your company 25 been iwith res~pect to those bans? KLEIN, BURY & ASSOCIATES, INC. - T08 - 1 A. Our position would be to try and reach 2 accommodation in a facility with both smokers and 3 ncnsmokers. 4 Q. Andtrying to reach accommodation prove: 5 imposstble, is it fair to say that you fight the bans, 6 you do everything within your powerlegally to oppos 7 smokil being entirely banned in a given building or 8 faciliry 9 A. Our position is to try and influence the 10 policy and decision makers so that both smokers and 11 nonsmokers could be accommodated in whatever the 12 building is or public entity that's involved. 13 Q. When you walked into this building did 14 you - this building where your de~ position is being 15 taken today at 599 Lexington in Nlanhattan, did you 16 notice whether it's a nonsmoking building? 17 A. Well, yes. I've seen no smoking signs 18 around. Yes. 19 Q. What do you think the agenda of this 20 building is? 21 A. Nonsmoking. 22 Q. Yeah. 23 But why? 24 Why does this building in your judgment 25 have a nonsmokmc policy? KLEIN, BfJRY & ASSOCIATES, INC. 51601 8344 Pages 103 -
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ANDREW SCHINDLER 109 1 Wouldn't you assume it's because they've I 2 been Lonvinced that secondhanUinoke is hazardous to 2 3 the health-of peo le? _ 3 4 MR. WEBER: Let me object to all these 4 5 assumptions you're building in. Object to the 5 6 form of the question. 6 7 If you can answer, go ahead. 7 8 A. I don't know if it's that, if it's 8 9 because of all the publicity and lawsuits surrounding 9 10 it, they'retrying to protect themselves from 10 11 lawsutts. I don t know if it's because people in the 11 12 building don't want smoking. You know, there's a 12 13 varie of reasons. 13 14 Q. Is there anything that causes cancer? 14 15 A. Is there -- 15 16 Q. Anything that.causes cancer? 16 17 Your position is cigarette smoking 17 18 doesn't, it may or it may not. 18 19 But is there anything that you accept 19 20 yes, exposure to thiwarticular environmental agent I 20 21 accept causes cancer. 21 22 A. I am not a medical expert. For me to sit 22 23 here and recite those things that ;- 23 24 Q. Just one. I'm not aslang you to recite. 24 25 Just one. KLEIN, BURY & ASSOCIATES, INC. 25 l1y- 1 Is there an one thing that you -- 1 2 MR. WEB~R: Were you done with your 2 3 answer when he interrupted? 3 4 A. Uh-huh. 4 5 Is there any one thing that you would 5 6 conc e causes cancer? 6 7 A. I'm not a medical expert to sit here and 7 8 iden ' what causes a cancer. 8 9 Q. Is Camel cigarettes today essentially the 9 10 same as it was ten years ago? 10 11 A. I would - in terms of ten years ago, I 11 12 would say essential ly the same. 12 13 ~ Y~ ou're talking about tar and so forth? 13 14 Q. Taste from the standpoint -- 14 16 A. It's essentially the same yes. Q. Okay. Is that true of all your brands 15 16 17 that have been around for at least ten years? 17 18 A. Yes, I would say that's essentially the 18 19 case. 19 20 Q. What is tar? 20 21 A. When you burn the product it's the dark 21 22 substance that, you know a variety of chemicals. 22 23 It's a function of the com6ustion of the cigarette. 23 24 It's called tar. 24 25 Q. The title of this is Can We Have An Open KLEIN, BURY & ASSOCIATES, INC. 25 III 1 Debate About Smoking. It's obviously an R.J. Reynolds 1 2 Tobacco Company ad. 2 3 Have y ou seen that before? 3 4 ~ MR. MOSS: Is that marked with a number 4 5 or something? 5 6 A. Did you want it back? 6 7 MR. ROSENBLATT: Why don't you mark this. 7 8 Plaintiff s Exhibit Two. 8 9 MR. WEBER: - Do we have a - is that a 9 10 clean one? 10 11 MR. ROSENBLATT: Yes. 11 12 MR. WEBER: Andy, hang on 1ust a second. 12 13 Let Stanley take that back and see if he can 14 put in a better copy for the record. 14 15 MR. ROSENBLATT: It's the same. This is 15 16 clean. Why don't you mark that. 16 17 (Whereupon the above referred to document 17 18 was marked as Ijlaintiff s Exhibit No. Two for 18 19 Identification.) 19 20 Q. (By Mr. Rosenblatt) This is an ad, 20 21 , Mr. Schindler -- 21 22 A. Can I finish? 22 23 MR. WEBER: Wait just a minute. He got 24 interrupted in his reading there. Let him 24 25 finish up~ KLEIN, BURY & ASSOCIATES, INC. 25 A. Okay. 112 _ Q. You ve seen this ad before? A. I've seen it a couple times before, yes: Q. Okay. Is there anything in this ad you disagree with? A. Could you be more specific? Q. No. It s one page. You've read it. My question is, is there anything in that ad you disagree with? A. It seems to be rather general to me. It says that there was controversy and we'll be saying some things in the future about it. And on that basis I don't know what to disagree with. It's kind of vague. p~ Well, do you~7cnow when this ad was published? A. I believe from - well, yes. It's up here at the top. It says 1984. Q. Now, starting in the third paragraph follow along with me, quote, over the years you've heard so many~ negative reports about smoking and health and sotittle to challenge these reports that you may assume the case against smoking is closed, but this is far from the truth. Studies which conclude KLEIN, BURY & ASSOCIATES, INC. 113 that smoking causes disease have regularly ignored significant evidence to the con end quote. Do you a,gree with what tve ~'ust read? Is that stlll the position of R.J. Reynolds Tobacco Company? A. Well, my position is, that cigarette smoking is a health risk and may cause these certain diseases that we've been discussing throughout this deposition. I: don't know if that agrees or disagrees with what's stated here. That's my position. Q. So if this is a 1984 ad, which it is, now we're in 1997 -- A. Right. Q. -- t~te situation, in spite of all the millions of dollars being spent on research from Reynolds'spo int of view is still precisel t~te same? MR. WEBER: Object to the form of the question. Go ahead and answer. Q. It was a risk factor in '84, it's a risk factor today correct? A. I~elieve it's a risk factor. MR. ROSENBLATT: Okay. I'll try to find KLEIN, BURY & ASSOCIATES, INC. 114 a clean copy of this beforelhave it marked or we'll replace it later. MR. WEBER: Do you want take two minutes and ge~t some clean cop ies. MR. ROSENBLttTT: No. I want to keep movtng MR. WEBER: Because I'd really prefer to get something that's not marked up with your -- MR. ROSENBLATT: There ma be certain ads I don't have a clean copy. Here Iydo, though. (Whereupon, the above referred to document was marked as Plaintiff s Exhibit No. Three for Identification.) Q. (By Mr. Rosenblatt) Now I'm going to show you an ad Mr. Schindler, with some three po liceman, a lice car - two police cars and one of the police o tcers ispo inting a gun at somebody's house and the Reynolds headline is Come Out Slowly, Sir, With Your Cigarette Above Your Head. My question to you is, was Reynolds engaging in some hyperbole with that ad? A. May I read the ad? Q. Sure. You've read it now? A•KLEIN, BURY & ASSOCIATES, INC. 51601 8345 Pages 109 - I
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ANDREW SCHINDLER 115 1 Q. Now, can you answer my question as to 2 whether or not when this picture is shown Come Out 3 Slowly, SifWith Your Cigarette d'tMve Your4Iead, is 4 it not true that Reynolds was engaging in some 5 hyperbole, some exaggeration in order to make a point 6 with this ad? 7 A. I don't view this as hyperbole or 8 exaggeration. 9 I think all the thin gs that are described 10 in here, extremely high levels of taxation, the total 11 bannin of smoking, the correlations or attempting to 12 correla~e cigarette smoking with heroin, cocaine, to 13 me broadly does represent the attempt or inclination 14 towards a backdoor prohibition sort of takiag a 15 product that in our society that has been legai, 16 social policy said for all these years legitimate to 17 sell and suddenly portraying it tn all the way that it 18 has been portrayed, to me tt's not hyperbole to 19 su est that the incentive of people t6at are opposed 20 to ~e existence of this product in our society are 21 directed toward some form of criminalization of the 22 selling of the product. 23 So I don't view it as hyperbole. 24 Q. In the recorded history of mankind can 25 you cite me to one instance where threepo lice KLEIN, BURY & ASSOCIATES, INC. 116 1 officers went to somebody's house, a cop pulled a gun, 2 with his gun drawn potnted toward the house and said 3 come out slowly, sir, with your cigarette above your 4 head? 5 Isn't that hyperbole or is that meant to 6 portray realism? 7 A. I think there are two things in this ad, 8 1 think one is the visualization and the statement at 9 the to and the other is the content of the ad. 10 ~. I'm limitin my question to the 11 visualization and to wiliat-I asked you in the question. 12 If you don't concede it's hyperbole, 13 fine, but please answer my question. 14 A. I'm responding to both what is in the ~ 56 picture and the statement and what is in the ad. Q. Mr. Schindler -- 17 A. And in the total context I don't view it 18 as hy erbole. 19 Mr. Schindler, you're deliberately 20 misun erstanding my question. 21 I want you to limit yourself to the 22 picture and the headline. I want you to limit - if 23 you're capable of doing that, it calls for making a 24 distinction. For the purpose of this question leave 25 out the text. Focus in on the photogr~aph~ and the KLEIN, BURY & ASSOCIATES, INC. 117 1 headline. 2 Those taken alone, the photograph and the 3 headline, would you not agree that Reynolds is 4 engaging in hyperbole? 5 A. I don't -- 6 MR. WEBER: Wait just a minute. We're 7 not going to engage in any name calling here, 8 Stan]ey. . You may may not like -- 9 MR ROSENBLATT: I didn't call any name. 10 MR. WEBER: Wait 'ust a moment. You let 11 me finish my statement. 1'don't interrupt you. 12 My statement is this; you just said that 13 a witness under oath was deliberately 14 misunderstanding a question. That's a very 15 serious thing to say. It's not one I'm sure 16 you meant. 17 MR. ROSENBLATT: Totally true. 18 I did mean it. I did mean it. 19 MR. WEBER: You let me know when you're 20 done so I can make my statement? 21 MR. ROSENBLATT: I'm done. I'm done. 22 Make your statement. 23 MR. WEBER: Can I talk now without being 24 interrupted? 25 MR. ROSENBLATT: Sure. KLEIN, BURY & ASSOCIATES, INC. 118 1 MR. WEBER: We're not soing to have that 2 kind of name calling here. We re not going to 3- - have that kind of insult here. 4 You have a right to ask this man 5 uestions. He has a right to give his answers. 6 ~ou may not like his answers. That doesn't 7 give you the right to insult him, period, end 8 of sentence. 9 MR. ROSENBLATT: He does not have the 10 right to deliberately misunderstand a clear 11 question. 12 And I assume Counselor, with all due 13 respect, that was the purpose of the many, many 14 hours. 15 Now, I am entitled to ask, as you said, 16 question and I said my question lirnits itself 17 to the picture and thelteadline, forget the 18 text. And then he will come back and talk 19 about the text. 20 So that is the reason for my legitimate 21 frustration. 22 Q. (By Mr. Rosenblatt) And I say again, 23 Mr. Schindler, in terms of this question please just 24 look at the photo,graph and the headline, and my 25 question simply is would you not a ~ree that taking KLEIN, BtJRY & ASSOCIATES, INC. lT9 I the photogra h and the headline alone, not the text, 2 that Reynolds is enga~ tng in hyperbole? 3 MR. WEBER: Let me move to strike the 4 entirely of the preamble to that including the 5 statements in it. 6 If you want to to go ahead and answer the 7 Guestion, g,o ahead. 8 A. I don t believe it's hyperbole in the 9 context of,the attacks that are continually going on 10 in our soctety a ainst this product that has been 11 legal and part of our social polic for manyr many 12 years to be - as a legitimate product. I don t view 13 it's hyperbole given the attacks that are taking 14 place. 15 Q. What social policy are you referring to? 16 A. I would define that our society through 17 the legislative processes have evaluated the risks of 18 cigarettes in terms of health risks and said it's 19 legal to sell this product under conditions 20 prescribed. 21 And I don't believe that this ad is 22 hyperbole in the context of the attacks that have 23 ta7cen lace over recent years. 24 ~ This is one of the Reynolds accommodation 25 ads; is that correct? KLEIN, BURY & ASSOCIATES, INC. 120 1 Where the focus of the ad is let's have 2 dialog, let nonsmokers and smorcers try to get along 3 without government intervention and try to work out 4 our problems, that's what I mean when I call it one of 5 Reynolds's accommodation ads. 6 Do you think that's a fair 7 characterization of this ad? 8 A. It is one - I believe -- 9 Was this ad in '94 or somewhere in that 10 period? 11 Q. Yes. This ad appeared in the New York 12 Times Au gu~st 23, 1994. 13 A. ~I'here were a number of ads that were run 14 during that period that spoke to the various issues 15 related to this smoking in our society, and this is 16 one of those ads. 17 And my question is, is it one of 18 Reyno ds' accommodation ads? 19 A. Well, I'm not familiar with what you're 20 talkin about as accommodation ads. 21 ~. Do you see the word accommodation in this 22 ad, last paragraph? 23 A. Yes. Okay. Well, it's in this ad. 24 Q. Yes., 25 Isn't rt your understandin that KLEIN, BURY & ASSOCIgATES, INC. 51601 8 346 Pages 115 - 1
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ANDREW SCHINDLER 121 1 accommodation is one of the ke words that was used in 2 that ad cam~ paign by Reynolds ~uring 1994? 3 A. -Yes. - 4 Q. Okay. 5 A. Okay. 6 Q. Now you would agree that this ad is 7 essentially a pofittcal ad, wouldn't you? 8 A. I think it's an ad to et our point of 9 view out to the American public. 10 Q. This is not an ad about smoking and 11 health, is it? 12 It's an ad essentially about get the 13 government off our backs, let's try to work out these 14 problems without government interference or 15 intervention; is that not a fair characterization of 16 this ad? 17 MR. WEBER: Let me object to the form. 18 Go ahead and answer. 19 A. I think it's an ad talking about our view 20 that the - the company's view that this issue has 21 gotten to this point and it needs to be represented by 22 us as our point of view and needs to be discussed in 23 our society, the whole notion of coexistence, and do 24 you really need the government to tell you you can't 25 smoke in public parks and places like that. KLEIN, BURY & ASSOCIATES, INC. -122 1 Q. Now -- 2 MR. ROSENBLATT: Was that marked? Please 3 mark the - that ad entitled Come Out Slowly , 4 Sir, With Your Cigarette Above Your Head, 5 that's_going to be Number Three. 6 A. Do you have another copy of this? 7 There's words sort of maybe missing on the end. 8 Q. Mine - my copy, is a poor copy, too. 9 I don't think it s tmportant, 10 Mr. Schindler, that you read every word of that unless 11 you want to because my question is not going to be so 12 detailed. 13 You've seen that ad before -- A. Wait. 15 Q. You have not? 16 A. I don't remember this one. 17 Q. Okay. Then;- 18 A. When was this done? 19 Q. Also - this one was October 25, '94. 20 Appeared in the New York Times on that date. 21 A. I don't remember this one. 22 p Okay. But 10ancing at it, would you 23 agree ihat this ad is in the same general framework 24 and cat~e~ oyr of the previous ad which just discussed, 25 Plaintiff's Exhibit Three? KLEIN, BURY & ASSOCIATES, INC. 123 1 MR. WEBER: Let me make an objection 2 before you answer Mr. Schindler. 3 As Mr. Schindler noted when he was 4 reading it, Stanley, there's words cut off all 5 down tlte left column. 6 I glanced at that briefly. I can't make 7 out what it means. 8 Also it hasn't been marked as an 9 exhibit. You may want to mark it. 10 I'll object to any questions being asked I I on an imperfect copy that doesn't include all 12 the text. 13 I don't know how anyone could answer off 14 that. 15 MR. ROSENBLATT: Please mark that as 16 Plaintiff s Exhibit Four. 17 (Whereupon, the above referred to 18 document was marked as Plaintiff s Exhibit No. Four for Identification.) 19 21 Q You do recogntielthat thisli's an R J, see -- 22 Reynolds Tobacco Company ad; correct? 23 A. Yes. 24 Q. Okay. And it's obvious to you from the 25 tone and the words used in the headline that again the KLEIN, BURY & ASSOCIATES, INC. 124 1 thrust of this ad is that we should avoid government 2_interference and intervention and we should try to 3 work out problems between smokers and nonsmokers 4 through accommodation? 5 A. Yes. 6 p Okay. Now even though there are - 7 actually,. I don t even tliink full words are missing in 8 this particular paragraph, a cou le of letters, but - 9 this is what I'm talking about. pQuote, the time has 10 come to say enough. The time has come to allow adults 11 in this country to make their own decisions of their 12 own free will, without government control and 13 excessive intervention, end quote. 14 Would you agree that that statement I 15 just read was the thrus{ of the advertising campaign 16 in 1994? 17 A. Of this ad. 18 Q. Okay. 19 MR. ROSENBLATT: Why don't do you mark 20 this as Plaintiffs Exhibit Five. 21 (Whereupon the above referred to document 22 was marked as Plaintiffs Exhibit No. Five for 23 Identification.) 24 MR. WEBER: Let me see that for a minute 25 before we et started to make sure we've got KLEIN,URY & ASSOCIATES, IN ~23-- 1 the whole ad on here. 2 Again, Stanley,, it's copied and cut off 3 at the top, so again tt appears to be 4 incomplete. 5 MR. ROSENBLATT: But I think in this ad 6 every -word and every~ syllable is in it. 7 MR. WEBER: You guys got the words this 8 time. 9 Q. (By Mr. Rosenblatt) Read me the 10 headline.: 11 A. Everywhere We Go Americans Are Telling Us 12 They Want The Government Off Their Backs. 13 Q. Y~e re familiar with this ad? 15 Q. What was your position in September of 16 '94 with R.J. Reynolds? 17 A. President. 18 Q. You were president of the company? 19 A. Chief operating officer. 20 Q. I assume that the company didn't spend 21 the money for a full page ad in the New York Times and 22 many other news apers without your knowing about it, 23 so you obviously approved this? 24 A. The a proval authoriry in this was Jim 25 Johnston who IPre~po rted to at tbatpoint. K~.EIN, BURY & ASSOCIATES, INC. - 126 1 I remember the ads. h:s been several 2 years now. 3 Q. Okay. And again, this is Plaintiff s 4 Exhibit Five. Would you agree that generally speaking 5 when you look at the whole ad this is - the tbrust of 6 the ad is, ~et the government off our backs? 7 PIR. WEBER: Let me object to the - to any 8 question that says looking at the whole ad 9 because you only provided him a portion of the 10 ad. The top of the ad is cut off on your i~ Xeroxing. , 13 the thrust of~the~ad as ge the government offlourgr~ 14 backs? 15 A. Yes. 16 Q. Okay. 17 A. So people can reach accommodation on many 18 of these issues. ~90 MR. ROSENBLATT: PlaintifPs Exhibit Six. (Whereupon, the above referred to 21 document was marked as Plaintiffs Exhibit No. 22 Six for Identification.) 23 p (By Mr. Rosenblatt) You've seen this ad 24 before? 25 A•KLEIN, BURY & ASSOCIATES, INC. 51601 8347 Pages 121 - I
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74 ANDREW SCHINDLER 127 1 Q. The title of it is, The Smell Of 2 Cigarette Smoke Annoys Me, But Not Nearly As Much As 3 The Government Telling Me WAhmt To Do. 4 A. Yes.. 5 Q. This ad relates to secondhand smoke; is 6 that correct? 7 Take your time reading it, if you need 8 to. 9 A. I'd like to read it. 10 Yes. It seems to be about secondhand 11 smoke and accommodation. 12 Okay. So from that standpoint the 13 Reyno ds' ads in 1994, whether they related to active 14 smoking~ or secondhand smoke, the thrust was 15 essentiaUy the same; get the government off our backs 16 and let'stry to work out these problems between 17 smokers and nonsmokers on a voluntary, common sense 18 accommodation basis? 19 A. The thrust of these ads is accommodation, 20 people can work out their differences. 21 MR. ROSENBLATT: This would be 22 Plaintiff s Exhibit Seven. 23 (Whereupon, the above referred to 24 document was marked as Plaintiff s Exhibit No. 25 Seven for Identification.) KLEIN, BURY & ASSOCIATES, INC. 128 1 Q. (By Mr. Rosenblatt) Mr. Schindler, 2 a ain, looki.g at this ad, which ap in the Wall 3 Sgtreet Journarand many other pub cations in June of 4 1994, the thrust of this ad, Plamtiffs Exhibit 5 Seven, is similar to the previous ads, in the sense of 6 the government is going to far, let's try to work this 7 out through~ accommod_ation? 8 MR. WEBER: Let me object to that 9 question on a coup ~le rounds. One is the form. 10 Second, because Nir.osenblatt testified at the 11 beginnin~of it regarding where it appeared, 12 ana Mr. osenblatt's job is to ask questions, 13 not to testify. And thtrdl , to the vagueness. 14 Q. Do you agree Mr. ~chindler, that this ad 15 is part of the campatgn t~tat we've been talking about 16 that Re nolds pubhshed in 1994 and you've seen these 17 ads before? 18 A. This ad - yes. It seems to be directed 19 at proposed OSHA regulations, as I recall, that the - 20 expressing the opinion that those re ulations were 21 going too far and that people could ~evelop their own 22 approaches among themselves as to how to accommodate 23 smoking rather than having these types of proposed 24 regulatton Okang implemented. Q(CLEINy-BURY & ASSOCIATES, INC. 129--- 1 A. This one specifically speaks to trucks 2 and possibl to our own home. 3 Q. Is it fair to say that the purpose of 4 these ads was tope rsuade public opinton to adopt the 5 Reynolds' view, wbicb was there's too much ovenzment 6 interference and we should work these problems out 7 through accommodation? 8 A. I think the point of view that's being 9 expressed in these ads is, that people can work out 10 among themselves how to accommodate smoking in our l2 society in many of the situations illustrated in these 13 MR. ROSENBLATT: Plaintiffs Exhibit 14 Eight. 15 (Whereupon, the above referred to 16 document was marked as Plaintiffs Exhibit No. 17 Eight for Identification.) 18 Q. The title of which is Secondhand Smoke. 19 How Much Are Nonsmokers Exposed To. 20 You've seen this ad before? 21 A. Yes, a long time ago. Q. Yes. 23 And you would agree that the purpose of 24 this ad is to persuade readers that the dangers of 25 secondhand smoke have been g~reatly exaggerated? KLEIN, BURY & ASSOCI~4TES, INC. 130 1 MR. WEBER: Could you give him a secon, 2_ to read it. He didn't have a chance to read 3 A. Can I read the ad? 5 MR. WEBER: Stanley, we're just about at 6 an hour. Ma be if you finish this series. 7 MR. RO~ENB~ATT: Fine. I'll just do one 8 more and we'll make a break. 9 A. Yes. Go ahead. 10 MR. ROSENBLATT: Read him my question. I 1 (Thereupon, the requested portion of the 12 record was read back as above recorded.) 13 A. No, I don't agree that that's necessarily 14 how ou interpret this aa. 15 ~. (By Mr. Rosenblatt) What's your 16 ir..terpretation of the ad? 17 A. It's just - the ad is essentially about 18 accommodation. The ad's just simply trying to, I 19 suppose, put in some layman terms what may on average 20 be exposure in different situations. It's not clear 21 to me that it's necessarily talking about risk and 22 that type of thing. 23 In fact, the ad says cigarette equivalent 24 calculations are not necessanly relevant to the 25 assessment of the potential risk from secondhand KLEIN, BURY & ASSOCIATES, INC. -131 1 smoke. 2 Q. But you would agree that it was the 3 position of R.J. Reynolds Tobacco Compaay in 1994 and 4 it is thepo sition of R.J. Reynolds Tobacco Compan 5 today with respect to secondhand smoke that secondhandy 6 smoke does not cause disease and there's nothing to 7 worry about? 8 A. As I testified earlier before we had our 9 lunch break, that I believe the ep idemiology does not 10 point in the direction of second5and smoke being a risk factot for these diseases. i2 Q. That's your position today and that was 13 yourposition in '94? 14 to today, ~ at's the position I've testified here py' yI'm handing you another ad, another R.J. 17 Reynolds Tobacco Company ad, the title of this is 18 Secondhand Smoke, The Myth And The Reality. Number 19 Nine. 20 (Whereupon, the above referred to 21 document was marked as Plaintiff s Exhibit No. 22 Nine for ldentification.) 23 A. This ad is from what time period? 24 MR. WEBER: Just for the record, Andy, he 25 cati't tell you what timeperiod it's from. He KLEINY BURY & ASSOCIATES, INC. 1 can't testify So keep in rtJittd he'1 you 2 questions. But when it is, if you know, you 3 know. If ou don't, you don't. 4 p But lydo know when this ad a The 5 Wall Street Journal in May of '84. AndPfhe~ad~we're 6 referring to the title of which is Secondhand Smoke, 7 The Myth And The Reality. . 8 MR. MOSS: What was the date you said? 9 MR. ROSENBLATT: May 17, 1984, the Wall 10 Street Journal. 11 p (By Mr. Rosenblatt) You would agree, 12 wouldyou not, Mr. Schindler that the myth referred 13 to in the headline is the myth that secondhand smoke 14 causes disease, Reynolds in '84 considered that to be 15 a myth and Reynolds in '97 considered that to be a 16 myth; correct? 17 A. I believe that there's not scientific 18 evidence that shows that secondhand smoke causes these 19 disease. 20 Q. Meaning it's a myth; rtght? 21 I mean, that's your word. I didn't pick 22 that word. 23 A. It's a word that's in this ad. 24 mythQ. It's a Reynolds ad, that says it's a KLEIN, BURY & ASSOCIATES, INC. 51601 8348 Pages 127 - I
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ANDREW SCHINDLER 133 1 Q. You thou ght it was a myth in '84, you I 2 think it's a myth in '97• correct? 2 4 1984~. -1 didn't put the words~t this adln 3- 4 5 I'm telling you that I don't believe 5 6 there's scientific evidence. 6 7 Q. You don't like the word myth? 7 8 A. It's a word. I mean, I'm not 8 9 quantitatively evaluatin it. g 9 10 Q. Y"ou're not d isowning it, are you? 10 11 A. The word is in the ad. 11 12 Q. And you accept it? 12 13 It's a Reynolds ad and it contains the 13 14 word myth? 14 15 A. It does. 15 16 Q. And you're not repudiating this ad, are 16 8 ou~ y 17 1 A. I believe that there is not scientific 8 19 evidence that points to secondhand smoke as a risk 1g 20 factor for the diseases that we've been talking about 20 21 here. 21 22 Q. Who is Diane Burrows? 22 23 A. Diane Burrows was a lady that worked in 23 24 our marketing research group a number of years ago. 24 25 She's not with the com an an more. I'm not exactly KLEIN, BUR~C c A~SOCIATES, INC. 25 134 1 sure when Diane left it's three or four ye ars ago. 1 2 don / m e 2 re 't emb A. r Diane's title. I just 3 4 know she was a manager in our marketing research 4 5 group. 5 6 p~ In the same ad that we're talking about, - ' 6 7 Plaintt i f's Exhibit Nine, I'm quoting the iZeynolds ad, 7 8 but in fact there's little evidence and certainly 8 9 nothing which proves scientifically that cigarette 9 10 smoke causes disease in nonsmokers, end quote. 10 11 My question to ou, sir, is, that was the 11 12 po sition of Reynolds in 1~84, that's the position of 12 13 Reynolds in 1997; correct? 13 14 A 14 MR ROSENBLATT: Okay. Let's take a 15 16 break. 16 17 18g (Whereupon, a short break was taken.) 18 19 20 (Whereupon, the above referred to 20 21 document was marked as Plaintiffs Exhibit No. 21 22 10 for Identification.) 22 Q. (By Mr. Rosenblatt) Mr. Schindler, I'm 23 24 going to hand you at this time a rather thick document 24 25 callea KLEINe BURY & ASSOCIATES,INC the 25 135 1 marketing development department R.J. Re nolds Tobacco y 1 2 Company, Winston-Salem North Carol ma. It's been 2 3 marked as Plaintiff s Exhiliit 10. I want to ask you 3 4 some questions about that document. 4 5 MR. WEBER: Do you have a copy for me 5 6 , Stanley? 6 7 MS. ROSENBLATT: These are the only two 7 8 we've got. 8 9 MR. WEBER: I've got to object. 9 10 MS. ROSENBLATT: You want to to just run 10 11 off a co~ y of that? i l 12 MR. WEBER: No. Because I want to get 12 13 going, I may want to when we get into this. 13 5 1 Let's just go. 14 D Burrows who we ~e S Q , r 15 16 . , discus sed before k~ the bre 16 17 A. Uh-huh. 17 18 ~Okay. And the date of this is February 18 19 29, 1384. 19 20 Go to page three. 20 21 Do you see where it says abstract in the 21 22 middle? 22 23 A. Yes. 23 Q. The first sentence is quote, younger 24 25 adult smokers are shown to be critical to long-term KLEIN, BURY & ASSOCIATES, INC. 25 brand com136 pany~ MR. tiVEBER: Stanley, I'm confused. He - gtst turned one page to what you said was page t~ree. Do we have -- MR. ROSENBLATT: For some strnage reason the first pa~ ge is~page two. MR. WEBER: So we're not missing a page, as far as you know? MR. ROSENBLATT: Correct. MR. WEBER: Go ahead. Start your uestion again. I was confused. (. (By Mr. Rosenblatt) On page three this statement appears, quote, younger adult smokers are shown to be critical to long-term brand company growth in the past, present and future, end quote. Is that a true statement? A. That's the statement that's in this - it's in this report. Q. I mo yoou agree -- A. That'srythe ~'udgment that the researcher here Diane, who aut2tored this, came to that conolusion. Q. Do you agree with it? A. It may~ be true. KLEIN, BURY & ASSOCIATES, INC. 137 pGo to page five. In the middle of the page tbere's a.section the title of which is, the importance of younger adult smokers. Quote, younger adult smokers have been the critical factor in the growth and decline of every ma~ o~r brand and company over the last 50 years. They wt11 continue to be 'ust as important to biands, companies in the future for two simple reasons,. the renewal of the market stems almost entirely from 18-year-old smokers. No more than five percent of smokers start after age 24. The brand loyalty of 18-year-old smokers far outweighs any tendency to switch with age. Have I read that correctly? A. Yes. Q. Do you agree with those statements? A. I don't know if I agree with that or not. I'd have to - this is a rather lengthy report. I'd have to have some time with Diane to understand how she drew those conclusions. I mean, I know in the histo of the industry there have been switching o~smokers substantially older than 18. In recent times there's been switching during the late '80s, early 90's, relative to savings brands developing ana that type of thing. So it's hard for me .~'ust lookinva~t these two KLEIN, BURY & ASSOCIATES, INC. bullet points to agree with this judgment that's laid out here. Q. Look at the top of page seven. Quote, younger adult smokers are cntical to RJR's tong-term performance and profitability. Therefore, RJR should make a substantial tong-term commitment of manpower and money dedicated to younger adult smoker programs, end quote. Do you ag~ree with that and did RJR give such a commitment! A. Again, this is a judgment that Diane has stated in this document. Without me having access to the total research or talking with Diane to understand, her judgments, it's hard for me to say I agree wtth that or disagree with that or partially agree with that. Again, there's been switc-lttng in the industry over time that is not related to younger adult sbare of market and there's share growth as a function of your strength and younger adult.market. But this - it's hard for me to totally agree or disagree without access to the full research and talkin to Diane. Q. ell, to your knowledge, after this strategic research report came out in 1984, did anyone I KLEIN, BURY & ASSOCIATES, INC. 51601 8349 Pages 133 - 1:
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ANDREW SCHINDLER 139 1 ever higher up in the company repudiate it or take 1 something - source of center for continuing study of 2 issue_wrth it? 2 tlte California economy. 3 A. -I don't think it's - I ddti't know- 3 _ Q. Now, on page 44 under key points the 4 I mean, there's a sense in the business 4 , number one key point it says blacks slash Hispanics 5 that if you have a share, a stronger share among young 6 adult smokers, that your potential for growth longer 6 b d 19 0 pn~ Z0 percent ot all younger adult smoker: y 7 term is higher than if you don t. I mean, that's one 7 And my question to you is, did that turn 8 of the models that is viewed as the industry. 8 out to be essentially correct, that projection? 9 The other is, if you can create 10 significant product change that you can engage 10 QA. ~ Okan't know. I 1 switchin otherwise, whtc~i has also been part of the ~ 11 Q_ Now the last keypo int says as follows: 12 trend of e industry. 12 Philip Morris has placed muc~t heavier emphasis on 13 There's really two points of view, two 13 ethnic spending on recent years and evolved ongoing 14 different points of view as to how you can potentially 14 Hispanic campaigns for Mariboro and Benson and Hedges 15 grow our market share over time. 15 Do you accept t that to be true that 16 ~. Look at page 11, please, under volume. 16 , Philip Morris did that? 17 A. I don't have - page 11? 17 A. That's what this report says. I don't 18 Q. Yes. 18 know if that's true. This is in 1984. 19 A. I'm sorry. 19 p Okay. Did Reynolds attempt to emulate 20 Q. Quote, younger adult smokers are the only 20 that Pp Morris behavior in the sense of g tvin 21 source of replacement smokers. Repeated government 21 ~ $ greater and heavier emp hasis to ethnic spendin . 22 studies, Appendix B, have shown that less than 22 MR. WEBER: Let me ob ~'ect to the form. 23 one-third of smokers start after age 18, only five 23 , He just said he doesn't know if he did that 24 percent of smokers start after age 24. 24 . MR. ROSENBLATT: I thought he said he 25 And a little further down in the next 25 didn't know if Philip Morris did. KLEIN, BURY & ASSOCIATES, INC. KLEIN, BURY & ASSOCIATES, INC. 140 1 paragraph it says, quote, if younger adults turn away 2 from smoking, the industry must decline just as a 3 population wbtch does not give birth will' eventually 4 dwindle. 5 Do you agree with that? 6 A. No. 7 Q. What don't you agree with? 8 A. Well, this is a concept or theory that 9 Diane Burrows in 1984 developed and, you know, I don't 10 know that that's true, the notion here that - that's 11 being proposed in this document. 12 MR. WEBER: While they're talkinp, can I 13 look at those pages you've been through. 14 Thank 120.u . 15 Q. Page On this page 42 is at the 16 bottom rather than at the top, as some of the earlier 17 pages were. 18 Okay. On page 42 Opportunity Analysis, 19 black, Hispanic, young er adult smokers and it - 20 obviously this page taiks about blacks and Hispanics 21 and has various statistics and percentages. 22 So you would agree that at various times 23 in terms of looking at your customer pool that R.J. 24 Reynolds would sometimes look at different segments of 25 the population such as black and His anic to figure KLEIN, BURY & ASSOCIATES, INC~ 143 1 MR. WEBER: Now you're ask ing him if ht 2 copied what Phili~ ~Morris did. 3 MR. ROSEIYBLATT: I don't see any 4 inconsistency 5 MR. WEBER: You can ask a better 6 uestion. ~. (By Mr. Rosenblatt) Did Reynolds place a 8 heavier emqhasis on ethnic spending in the Iast ten 9 years or so. ~0 A. In the last ten years? Q. 'Yes. 12 A. We don't have any - I mean, I can -- 13 Q. Or the last 20 years? 14 A. In the last 20 years? 15 There's not a heavy emphasis on ethnic 16 spending in the marketplace today from Reynolds. 17 Over a span of 20 years I don't know if 18 there are periods in there where tl'tere were or were 19 not. 20 This re was in 1984. I was a plant 21 manager in 1984~Irt I'm not familiar with the content 22 and marketing budgets over a 20 year horizon. I'm 23 familiar with them today. Q. Yes. 25 But certain~ly~ - KLEIN, BURY & ASSOCIATES, INC. 141 1 out what their preferences were in terms of cigarettes 2 and how to appeal to a given market? 3 A. Yes. That's what's in this report. 4 Q. Okay. And on page 43 it's obvious that 5 Hispanics were subdivided intoMexican, Puerto Rican, 6 Cuban and other; correct? 7 A. Yes -- 8 MR. WEBER: Give him a chance to look at 9 it. 10 A. It's a lot of stuff here, Mr. Rosenblatt. 1 1 Q. I'm sorry. Go ahead. 13 A. Yes. Okay. What was your question? Q. And obviously -- 14 MR. WEBER: He didn't answer. He said 15 yes, okay. 16 A. What's the question? 17 Q. My question was simply to confirm that in 18 terms of this document Hispanics are subdivided into 19 Mexican, Puerto Rican, Cuban and other? 20 A. Yes. Q. And also looking at the bottom of page 43 22 it tries to project the US population in Mexican, 23 Puerto Rican, Cuban and other Hispanics between 1980 24 projected to the year 2000? 25 A. Yes. lt's app arentl taken out of KLEIN, BURY& AS~OCIATES, INC. T44-- 1 A. You know, I can'tatawer the question 2 because of an absence of knowledge relative to a 20 3 year time span. 4 Q. Okay. But is it fair to say that u n 5 becoming president and CEO that you made lt your 6 business not to necessarily read every word but 7 certainly to familiarize yourself with the background 8 and history of the company? 9 A. 1 didn't go back to 1984 and read any - 10 research rep orts since I've been in this job. 11 Q. Page 49, the title of which is Moving Up 12 In The Worid-, a little past the middle of the page 13 beginning with the words one option successfully used. 14 Are you with me? A. Yes. 15 Q. Quote, one option successfully used by 17 entrepreneurial minorities in the past is to seek fame 18 by exercising special talents in the public eye. 19 Women achieved visible success by the stage or screer 20 or by marriage, blacks moved up through sports and 21 music, Jews became famous on the comedy circuits poor 22 boys from Liverpool or Mississippi made it with rock 23 and roll, end quote. 24 Where is that going? 25 A. You got me. KLEIN,BURY & ASSOCIATES, INC. Pages 139 - I 51601 8350
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ANDREW SCHINDLER 145 1 Q. If you know? 2 A. I have no idea. 3 Q. _We11, you may not k.crw the an5wer to this 4 off the top of your head, but is it fair to say that 5 you could find out by asking the rightperson employed 6 by Reynolds what is our most popular brand with 7 blacks, with Mexicans, with Puerto Ricans, with Jews, 8 or is that information unavailable? 9 A. I don't know if I ask that question if I 10 could get the answer to all those, I really don t 11 know. 12 I mean, you went -- 13 Q. I'm sorry. 14 A. You went down through African Americans, 15 Mexicans and Jews. 16 I mean, I am not sure what you would 17 happen if I asked that question. I've never asked 18 that question. 19 Q. Look at Ap ndix B. I think it's at the 20 vBery end. There's on~y two later pages after Appendix 22 A. This one? 23 MS. ROSENBLATT: Yes. 24 Q. Yes. The title is Younger Adults 25 Important - Importance As Rep lacement Smokers. KLEIN, BURY & ASSOCIATES, INC. 146 1 Current male smokers by starting a~e. It 2 says 9.9 percent of male smokers begin at age 1, 13.4 3 percent 1 e~gin by age 13, 20.8 percent by age 14. 4 You have no reason to question the 5 accuracy of these statistics, do you? 6 MR. WEBER: Make sure you read through 7 that so that everybody understands you're using 8 the terms the same way. 9 Q. How are you understanding these numbers? 10 A. This is the source, accordin to this is 11 HEW, Health, Education and Welfaree artment the 12 Federal government back in 1970 and '75prepo~0 an 13 adult use of tobacco. So that's the source document 14 for this. So I have no way of questioning the HEW in 15 1970 to '75. 16 Q. Yes. But obviously -- 17 I'm sorry. Go ahead? 18 A. You're asking me if - repeat the 19 question. 20 Q. Well, you have no reason to dispute these 21 statistics and it's obvious to you that your research 22 department relied on these statistics; correct? 23 A. They put these statistics in this report. 24 These statistics, according to this come from a study 25 by HEW ap~arently in '70 to '7~. So I can neither K~.EIN, BURY & ASSOCIATES, INC. 4 1 confirm these or dispute them. They're from a 2 government study. 3 p And according to these numbers, by age 4 15, 30.3 percent of male smokers begin, by ~a e 16, 5 42.9 percent, and by age 17, 53.6 percent. Those - 6 I've read the numbers correctly? 7 A. According to this - what appears to be a 8 government study. 9 Q. OkaY~ 10 MR. ROSENBLATT: Plaintiffs Exhibit 11. I 1 (Whereupon the above referred to document 12 was marked as dlaintiff s Exhibit No. 11 for 13 Identification.~ 14 MR. WE ER: Just for the record, what was 15 that, Stanley? 16 THE WITNESS: The last one we looked at. 17 MR. WEBER: No, no. This cover sheet. 18 For 10 there are some fax markin s and 19 indications on this document that don'~appear 20 to have been part of the original. So I just 21 want to make sure the record is clear on that. 22 MR. ROSENBLATT: Fine. 23 Q. (B Mr. Rosenblatt) Okay. You've got 24 Plainuff s Ex~ibit I 1 in front of you, which is a 25 letter dated January 10, 1990, and si ned by ~J.P. KLEIN, BUR& ASSOCIATES, INC. 148 1 McMahon, division manager of RJR sales company; 2 correct? 3- That's what you're looking at now? - 4 A. Yes. S MR. WEBER: Do you have a copy of that? 6 MS. ROSENBLATT: I have a copy from the 7 Internet. 8 MR. WEBER: Thank you. 9 A. Yes. 10 Q. Did you ever see this letter before? 11 A. No, I haven't. 12 MR. WEBER: I'm sorry, Susan. You gave 13 me the wrong one. He's got a January 10. 14 Is that what you think"he has, Stanley? 15 MR. ROSENBLATT: Yes. 16 MR. WEBER: She 'ust gave me a May. 17 MS. ROSENBLAT~: I aon't have another 18 copy. 19 MR. WEBER: Well again, I'll object. 20 As successful as Stanley is, not to bring 21 copiGo ~~dis inexcusable. 23 That saves me reaching over to do it, 24 Stanle~. Thank you. 25 MR. ROSENBLATT: I did it li hter than KLEIN, BURY & ASSOCIATES,~NC. 1 you would have done it. 2 (By Mr. Rosenblatt) Follow along with 3 me. Wis letter to sale rep s, subject, young~ adult 4 market very important. Please read carefully. 5 Begtnning with the second sentence, I 6 need all of you to study the attached scroll list of 7 monthly accounts in your assignment that are presently 8 doing more than 100 CPW for purposes of denoting 9 stores that are heavily frequented by young adult 10 shoppers. These stores can be in close proximity to 11 colCeges, high schools or areas where there are a 12 large number of young adults frequent the store. 13 The urpose of this exercise is to be 14 able to identify those stores during 1990 where we 15 would try to keep premium items in stores at all 16 times. 17 And jumping to the last sentence I am 18 asking you to return this list highlighting tbose 19 stores that you are classifying as young adults, end 20 quote. 21 Mr. Schindler, someone reading this 22 letter would certainly assume based on this letter 23 that R.J. Reynolds Tobacco Company was targeting the 24 young market, wouldn't they? 25 MR. WEBER: Let me ob,'ect to the form of KLEIN, BURY & ASSOCIATES, INC. 150 ~ the G~ahoe,ad. - 0 3 A. Do you mean underage smokers when you say 4 youth mark? 5 Q. Yes. 6 A. This is a letter from the division 7 manager that violated comp any policy. It's my 8 understanding - which is tFiat we don t sell ci arettes 9 or market cigarettes to people under the legal age. 10 It is my understanding that when this ' 11 individual did this, the head ot-sales formally 12 reprimanded the individual and then a letter was sent 13 out to the entire sales force to clarify this 14 situation so that nobody else would violate company 15 policy. 16 So this is a mistake that an individual 17 made relative to company policy. When discovered, the 18 companypo licy intervened to reprimand the individual 19 and to resiate it for the entire company. 20 So I do not believe that this represents 21 in any way this company targeting underaged smokers in 22 their marketing and sales practices. 23 Q. But you would agree this incorrect letter 24 by an individual does in fact do that? 25 A. This letter says that this individual KLEIN, BURY & ASSOCIATES, INC. 51601 8351 Pages 145 - 1
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ANDREW SCHINDLER 1 said this. And this individual was reprimanlded for 2 puttin this out. 3 Q. _Was he fired? k-- 4 A. I don't remember if he was fired or not. 5 I believe he left the company and I don't 6 remember the exact circumstance. But he was 8 7 reprimanded for doing this. Q. Do you have any explanation as to how a 9 division manag er of the sales company would not have (0 known what the compan policy was on this subject? 11 A. There are 2,50~ or so people in the field 12 sales organization. This individual was aware of 13 company policy. Obviously violated in this case. He 14 was reprimanded and the remainder of the sales force 15 was reminded of the com an polic . 16 So what this indpvidnal didywas wrong and 17 was in violation of what our company policy is. He 18 was dealt with accordingl . So to me it's an example 19 of company policy workt'ng. 20 There s thousands of people in this 21 company, somebody's going to make a mistake. And when 22 discovered, it's the responsibility of management to 23 intervene on that mistake, which is what happened in 24 this case. 25 MR. ROSENBLATT: Plaintiffs Exhibit 12. KLEIN, BURY & ASSOCIATES, INC. 132 1 (Whereupon, the above referred to 2 document was marked as Plaintiffs Exhibit No. 3 12 for Identification.) 4 MR. WEBER: I guess we can stipulate that 5 you don't have a copy of this for me. 6 Stanley, are you done with that Exhibit 7 11, that subject matter? 8 Would it - if so, would it be of interest 9 to put in the record that document that Susan 10 handed me a moment ago, the May letter in 11 which Mr. McMahon writes out to the sa'les force 12 saying he made a mistake. 13 MR. ROSENBLATT: Absolutely. The May 3rd 14 1990 letter, which I call the mea culpa letter. 15 Do you want that marked? 16 MR. WEBER: I'm just asking. It's 17 deposition. I can't forceyou to mark it.. 18 MR. ROSENBLATT: I agree. I'll be happy 19 to mark it. Let's make it 11 B. 20 MR. WEBER: That's fine. 21 MR. ROSENBLATT: The witness is lookia 22 at a letter dated January 11, 1990 from Jo F. 23 Spach, S-P-A-C-H, manager pub~ic information, 24 public realations de artment, R J. Rey nolds 25 Tobacco Com~ pan ~o the n pnci al of Willow KLEIN, BURYy& ASSOCIA~ES, INC. 153 1 Ridge school in Amherst, New York. 2 A. Yes. 3 Q. ~By Mr. Rosneblatt) Do you know 4 Ms. Spach. 5 A. Spach. 6 Q. S~ pach? 7 A. Yes, I knew Jo. She's retired now from 8 the compan 9 Q. kay. Were you aware of this letter at 10 the time it went out? 2 A. No, I wasn't. i Q. As manager of the public information 13 public relations department back in January of 1§90, 14 approximately how many employees would she have had 15 under her? 16 A. I have no idea. I really don't know. 17 Q. Okay. Now, the letter to the principal 18 begins, a number of your fifth grade students have 19 written R.J. Reynolds Tobacco Company commenting that 20 they do not feel our company should allow the use of 21 our brand names on children's toys and candy 22 cigarettes. 23 Now, ~oing down to the last paragraph on 24 page one of th~s-letter Ms. Spach says, despite all 25 the research go~in~ ~on the sim le and unfortunate fact KLEIN, BUR~' & ASSOCIATES, INC. 1 is that scientists do not know the cause or5oauses of 2 the chronic disease - diseases reported to be - 3 -associated with smoking. - 4 Is that a true statement? 5 A. As I've testified before, I believe that 6 cigarette smoking is - may cause these diseases, but 7 it hasn't been proven in the pure scientific sense. 8 p Yeah but this letter doesn't say Andrew 9 Schindler says that. This letter say s scientists do 10 not know the cause or causes of the chronic diseases 11 reported to be associated with smoking. 12 And I'm asking you, sir, whether in 13 January, 1990, you beheved that scientists did not 14 know the cause or causes of the chronic diseases 15 reported to be associated with smoking9 ~ 16 A. I hate to do this, Mr. Rosen3latt, but 17 could ou repeat the question again? 18 Ofcay. I basically want to know if you 19 consi er this to be a true statement the statement 20 we've just gone over and specifically, that scientists 21 in January o~ 1990 did not know the cause or causes of 22 the chronic diseases reported to be associated with 23 smoking? 24 A. You know, I believe in 1990 the ma~'9rity 25 of scientists would have felt that ci arette smoking KLEIN, BURY. & ASSOCI$ATES, INC. 155 I caused these diseases. 2 It is my view that it is a risk and may 3 cause. 4 Q. Okay. So in that sense the statement's 5 inaccurate? 6 A. I'm giving you my point of view. 7 Q. Which is, you recognize that certainly 8 the majority of scientists and medical doctors did 9 consider that there was a cause and effect 10 relationship between smoking and lung cancer, for 11 example? • 12 A. The ma.lo-rity. 13 Q. Okay. Now, Mrs. Spach says, in this 14 letter to the pnnctpal presuming he's gotng to pass 15 the letter onto his Tift~t graders, we be6eve that tbe 16 answer to these questions can only be determined ~78 through mOka ctentific research. 19 AQ. Okayy. Now, you agree with that? 20 A. I believe that more scientific research 21 is needed. 22 Q. Now, the Frank Statement that we talked 23 about earlier today came out in 1954, and the Tobacco 24 Industry Research Committee, which later became the 25 Council for Tobacco Research, was established KLEIN, BURY & ASSOCIATES, INC. 156 - 1 supposedly to fund a tremendous amount of research. 2 in 1990 Mrs. Spach is-saying we still 3 need more scientific research. 4 And is it fair to say that in April, 5 April 14, 1997, as we sit here today, you are saying 6 that we still need more scientific research on -- 7 A. Yes. I think that there's more 8 scientific research needed to try to confirm the 9 causality relative to - and the mechanism relative to 10 smoking and its related diseases, that the lab 11 research on animals up to this point has proved 12 inconclusive as it relates to causality andpmechanism. 13 The epidemiology points at cigarettes as 14 a risk factor that may cause these diseases, but lab 15 studies have been inconclusive in that regard and 16 therefore, I think more research is needed. And we 17 continue to fund that research or a good bit of it 198 throu h Oka 20 ~. Basic research. 21 Q. It's been 43 years since the Frank 22 Statement. 23 Are people going to be sitting around 43 24 years from today on behalf of the tobacco com anies 25 saying that he~ y, still researching this, still needp KLEIN, BURY & ASSOCIATES, INC. 51601 8352 Pages151-1
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ANDREW SCHINDLER 1 some more research, and in the mean time people are 2 smoking and the product is beu'~g sold and we still 3 need more research do you thi~C'that will-be the 4 position of Reynolds 43 years from today? 5 A. I think it's up to medical science and 6 research to determine whether or not it can be shown 7 what the mechanism is related to these diseases and 8 smoking. 9 Q. Precisely my point, Mr. Schindler. 10 The medical and scientific communities do 11 not believe that more research is needed. 12 A. Well, I don't know that that's true. 13 Q Because you just said the majority, of the 14 scientific and research and medical communities accept 15 the fact that cigarette smokin causes lung cancer and 16 other diseases. They don't t)~ink any more research is 17 needed. 18 A. I believe the medical communiry continues 19 to do research so they must believe it's needed or 20 they wouldn't do the research. 21 Q. What is a trade association? 22 A. A trade association would typically be 23 people engaged in the same business coming together to 24 - as an association to represent the interests of the 25 particular business or industry group that th~ey 're in. KLEIN, BURY & ASSOCIATES, INC. -T58 I Q. Is the Tobacco Institute a trade 2 association? 3 A. Is~th~e Council for Tobacco Research a 5 trade association? 6 A. No. 7 Q. Are you aware that the Council for 8 Tobacco Research characterizes itself as a trade 9 association when it files its Federal income tax 10 returns? 11 MR. WEBER: Let me object to that because 12 • there have been a lot of lawyers in this 13 litigation that have made that statement and I 14 really don't think you're one of the ones who's 15 going to make thaf statement without having 16 some proof. I think you're somebody who s 17 shown, so far at least, some attention to the 18 documentary record. 19 So if you can show us thaty ou that says 20 trade associati on and ask him, 1'd appreciate 21 it. 22 Or ask him first of all if he knows what 23 they've done and then if you want to show trade 24 association, show him the piece of paper, if 25 you would, please. KLEIN, BURY & ASSOCIATES, INC. 159 1 MR. ROSENBLATT: Exhibit 13. 2 (Whereupon the above referred to document 3 was marked as )ilaintiffs Exhibit No. 13 for 4 Identification.~ 5 MR. WE ER: Is that your only one? 6 Why don't you show him - maybe he can 7 find out what it is he's referring to there. . 8 Q. (B Mr. Rosenblatt) Well, looking at 9 Plaintiffs $x~ibit 13, the Council for Tobacco 10 Research U.S.A., Inc. characterizes itself as a 1 1 501(c) 06 entity, and it's my understanding that that 12 makes it a trade association. 13 Do you have any other information on 14 that? 15 MR. WEBER: Well, let me object to that 16 because - and it's an ironic issue that would 17 come up today since we both have our taxes due 18 tomorrow. 19 MR. ROSENBLATT: Not me. I got an 20 extension. 21 MR. WEBER: Oka. Based on that question 22 1 would not ask you for tax advice, because 23 501(c) 6 1 don't think squares with your 24 understandin 25 MR. ROS~NBLATT: I don't even want to ask KLEIN, BURY & ASSOCIATES, INC. 1 the question. This is a question my w~e gave 2 me. She has a tax background. I am lost in 3 - this. 4 MR. WEBER: Nobody hits 1000. She's 5 given you some good ones today, Stanley. This 6 was a clinker. 7 MR. ROSENBLATT: Babe Ruth struck out 8 more times than he hit home runs. 9 MR. WEBER: Did he really? 10 MR. ROSENBLATT: Yes. A little known 11 statistics. 13 Q. ~,B S Mr. Rosenblatt) Did you know that? 14 Q. You look like a baseball fan. Okay. 15 Forget it. 16 A. Do you want this back? 17 p But I will ask this question, 18 h~ypothetically speaking, if the Council for Tobacco 19 Research characterizes itself as a trade association 20 on its Federal income tax returns, that would surprise 21 you? 22 Because when I asked you earlier is the 23 Tobacco Institute you a tiade association you said 24 yes. When I asked you is the Council for Tobacco 25 research a trade association, I believe you said no. KLEIN, BURY & ASSOCIATES, INC. 1 Correct? 161 2 A. Right. 3 Q. Okay. 4 A. But you've implied something~ here that 5 something would surprise me. I mean, I'm -- 6 Did you ask me a question or -- 7 Q. Yes. 8 My question was, would it not - having 9 g~tven that answer, would it not surprise you if tFie 10 Counctl fnr Tobacco Research characterizes itself as a 11 trade association on its Federal income tax returns? 12 A. Not being attacks lawy er, I could 13 probably tell you nothing would surprise me when it 14 comes to tax law and fill-ing out income tax forms. 15 •So I don't know or have any~udg ment 16 relative to tax law, filing. But to mee Council 17 for Tobacco Research is not what I would view as a 18 trade association in the context of how it operates. 19 How that relates to tax law, that's 20 somebody else's. 21 Q. Does R.J. Reynolds have an employee 22 handbook? 23 A. Yes. 24 Q. How do you communicate, other than 25 through gtt - the emplo ee handbook how do you KLEIN, BURY& ASSOCIA'fES, INC. 162 1 communicate with your employges? 2 A. We have a video system we call target 3 vision that's in different work areas throughout the 4 company, we have an employee newsletter called 5 Caravan, periodically there might be a letter from 6 different executives to their particular people and 7 their part of the organization or once in awhile a 8 letter from me. A variety of ways. Employee 9 meetings, talkin~ about business issues and so forth. 10 Q. Has K.J. Reynolds Tobacco Company 11 communicated to its employees in any manner whatsoever 12 how to respond to questtons commonly asked of the 13 tobacco industry or-how to respond to attacks on the 14 tobacco industry, such as, if someone says to you how 15 can you work in this business, you make a product 16 which causes cancer and which kills people; have you ! 7 suggested to your employees, I don't mean you 18 personally, have you suggested to your employees how 19 to respond to attacks or questions of that kind? 20 A. I don't recall any in terms of - it's not 21 something - you're talking about something that's 22 distributed in some communication form to employees? 23 Q. Or it could be oral? 24 A. I don't recall any such thing in the 25 nature of thequestion that you're characterizin~ it. KLEIN, BURY & ASSOCIATES, INC. 51601 8353 Pages 157 - 1
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A ANDREW SC:HINDLER 163 1 Q. What clearance if any does an employee of 2 yours need to get in order to participate in a public 3 debate oVppear on a radio tapl"ow or a televiston 4 program. 5 A. Well, they would get authorization if 6 they're representing the company in one of those 7 forums that you re explaining here through public 8 relations and perhaps ihe legal group, depending on 9 the situation. 10 Q. Does an employee have the freedom of 11 choice to appear on such a public program without 12 getting autFionzation? 13 K. Well, in our society somebody can choose 14 to do whatever they want. 15 If somebody is representin the company 16 in one of those types of programs, Igwould expect that 17 they would seek out to get approval from the company 18 to d Q. And if they did not, there would be 20 consequences, such as they mtght lose their job or be 21 reprimanded? 22 A. I don't know that. 23 Q. Well, who would if you don't? 24 A. Well, you're posing a hypothetical 25 question that if somebod was re resentin the company KLEIN, BURl~& ASSPOCIAT~S, INC. 164 1 without quote authorization they'd be fired, and I 2 don't know that that's true. 3 I'm saying that the policy and practice 4 would be, if you're oing to represent the company, it 5 would be ood to gel authorization to do that. 6 I~ somebody did it without that 7 authorization, it is not at all clear to me in this 8 hypothetical situation that they would be terminated, 9 wltich is what you suqgested would happen to them. 10 Q. Here's anotTier hypothetical yu~estion and 11 please try to accept the facts in the ques~ion which 12 are: If it were ever established to your satisfaction 13 through the greatest scientists in the world that 14 cigarette smoking does in fact cause lung cancer, 15 would you quit your job or would you Feep seWng 16 billions of cigarettes which ~ou are now convinced 'w 17 my hypotheacal kills people. _ 18 A. I wouldn't quit my~ob. 19 Q. What would you do. 20 A. Your hypothetical theoretical world that 21 you're creating here in this question, I would ensure 22 with the resources this company had that they would be 23 knowled geable and aware of this research, and I would 24 assume they already would be, and that it in that 25 process of theoreticall comin to that conclusion, KLEIN, BUR~ & AS~OCIATES, INC. 165 1 there would be some knowledge about what it is or what 2 it is about cigarette smoking that would cause 3 disease, and then we wouldbe in a position to work to 4 change the product and improve,it in that direction, 5 as we have generally worked to improve the product 6 over the last 40, 50 years. 7 Q. me carry my hpo thetical a little 8 further. You also find out thaf there's nothing that 9 can be done to the ci arette for it not to cause 10 cancer and death. ~th all the best intentions in the 11 world, you satisfy yourself that my cigarettes will 12 always cause cancer and death. 13 H pothetically , if you ever became 14 convinced of that would you quit your ob? 15 MR. WtBER: ~bject to the form. 16 Go ahead and answer. 17 A. I just think that is a-- 18 Q. Ridiculous hypothetical? 19 A. I think it's outrageously hypothetical. 20 My view is, society with the knowledge 21 that you're laying out here, it would seem to me would 22 - and the medical community would come to some 23 understanding about cigarettes and - that hadn't 24 existed before and that we would all work to ether to 25 figure out how to improve the product. And~ believe KLEIN, BURY & ASSOCIATES, INC. 1 that would be the path in your hypothetica6world. 2 In your h pothetical world suggesting 3 -there's zero o por~unity, I don't believe that would 4 be the case. 1Pt~t~ink.that everybody would work to 5 improve the product in the future as we have in the 6 past and as we are today. 7 Q. You have done nothing in the past except 8 reduce tar. And then when I say to you what is the 9 significance of the reduction in tar in terms of 10 peoples health your answer is you don't know. 11 So what are you telling us R.J. Reynolds 12 has done over the~past 40 years to improve their 13 customers' health. 14 A. I think we've responded to the guidance 15 that the public health community gave, potnting to tar 16 as something that should be red"uced in cigarettes, we 17 have done that in the company and in the industry and 18 I'm proud~of what we have done. 19 I m proud of what we have done since the 20 early '80s with regard to the development of the 21 product Preraiere and Eclipse, which we have spent 22 substantial amount of money, on, being debated and 23 argued with from anti-smokmg establishment through 24 that whole period, that we have sought to improve tbe 25 product even when not havin that cooperative effort KLEIN, BURY & AS~OCIATES, INC. 1 and we would continue to improve the product. 2 And. I don't think it s somethta to sa 3 nothin has been accomplished when we~ave l~een 4 respon~ing over the years to what public health people 5 said should"be done with the product and we have done 6 that. I am roud of what this company has done. 7 Mr. Schindler, what the American Cancer 8 Society and what tbe Surgeon General says is, get rid 9 of cigarettes? 10 A. Well, then they should petition Congress 11 to ban the= roduct. 12 Q. ~iow, Premier and Eclipse, are they on the 13 market toda ? 14 A. Ecli se is: 15 Q That fS safe~than Camels? 17 A. I don't know that it's a safer cigarette. 18 p I'm missing something. I'm missing 19 sometFiing~ 20 You're teUing me about all Reynolds has 21 done and you mentionedPremier and Eclipse. And then 22 I ask you is Eclipse any safer than Camels. And if 23 your answer is you don't know, then what constructive 24 .od has Eclipse done if it's no safer than Camels or 25 ~Vinston? KLEIN, BURY & ASSOCIATES, INC. 168 1 A. I don't know if the product is safer. 2 Q. Okay. 3 A. It may have reduced risk, it may not. 4 It has very low tar it has very low 5 nicotine, virtually no secondhand smoke, and it is a 6 product that we have developed and put into the 7 marketplace and tested. 8 Q. And it's selling like hotcakes, isn't it? ' 9 A. No, it isn t. 10 Q. It's sellin horrible? 11 A. It's in tes~market in Chattanooga, in 12 Germany, Sweden and Japan. 13 Q. What percentage of the American market 14 does it have? 15 A. It's only in a test market in 16 Chattanooga~, Tennessee in the U.S. 17 Q. Nowhere else! 18 A. Not in the US. 19 ~~ So it's never been on the market in US, 20 other t~tan a test marked? 21 A. We're in a test market in Chattanoo a, 22 Tennessee, test market in Augsburg, Germany, in~weden 23 and Ja an. 24 And Premier was never put on a test 25 market? = KLEIN, BURY & ASSOCIATES, INC. 51601 8354 Pages 163 - 1
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ANDREW SCHINDLER ,I 169 172 I A. Yes it was. 1 Council for Tobacco Research administered throu gh an 2 Q. Anc( how did it do? 2 eminent panel of scientists and medical researchers in 3 A. -it did terrible. ~ 3-- tlte company, 25 top medical schools, Nobel prize 4 Q. It bombed? 4 winners taking that research money, continuing to take 5 A. Yes. 5 that research money to do basic research in diseases 6 Q. And your prediction is Eclipse will bomb? 6 , that are associated with smoking. I do not see the 7 A. No. 1 thin7c Eclipse has an opportunity. 7 lie in that. 8 Q. Oka . Now, a moment ago you were telfing 8 Q. And the end result is that 43 years after 9 us how ridiculous my hypothetical was. 9 the Frank Statement we are - fromyour standpoint we 10 Now, you know, don't you, that the World 10 are precisely back where we were in 1954 hey, it's a 11 Health Organization the National Academy of Sciences, 11 risk factor, but does it cause lung cancer, it may and 12 the US Public Health Service the National Institute 12 it may not. So that's what 43 years and millions upon 13 for Occupational Safety and fIealth, the Surgeon 13 millions of dollars to the Council for Tobacco 14 General, the United States Environmental Protection 14 Research have accomplished in terms of the bottom line 15 Agency, all have reviewed the scientific evidence and 15 to the consumer- correct? 16 concluded that not only is active smoking a cause of 16 MR. WEBER: Let me object to the form of 17 lung cancer, but involuntary smoking is a cause of 17 the qi~estion. 18 lung cancer. 18 You can answer. 19 Then I ask you a question to assume that 19 A. That research money was given to the 20 you, Mr. Schindler, become convinced that they're 20 Council for Tobacco Research to providS resources to a 21 right, and that to you is an absurd hypothetical. 21 scientific advisory board independent of anything to 22 Why is that an absurd hypqthetical? 22 do with these businesses to grant - to provide 23 MR. WEBER: That's a mischaracterization 23 , research grants to eminent scientists and medtcal 24 of what he said and to the form. 24 institutions and research institutions around this 25 MR. MOS§: We obiect to the form. KLEIN, BURY & ASSOCIATES, INC. 25 country and that has gone an for all these years and KLEIN, BURY & ASSOCIATES, INC. 170 1 Q. Didn't you say my hypothetical was absurd 2 because it presupposed that you could be convinced 3 that your product causes cancer and death and that 4 nothing could be done to make your product not cause 5 cancer and death. You thought that was an absurd 6 hypothetical. 7 A. You have really, frankly, confused me 8 with the series of questions you have here. 9 If you would like to, I would like to go 10 back to where this all started. 11 p It all started back in 1954, didn't it, 12 with the Frank Statement to Cigarette Smokers when 13 the tobacco industry lied to the American people and 14 said they were gotng to do research and get answers, 15 and 43 years lafer we're sitting here and you're still 16 tryin to sell the American people the same bi.ll of 17 goods that more research is needed, cigarette smoking 18 doesn't cause lung cancer, it's only a risk factor, 19 like cottage~ cheese• right? 20 MR. WE~ER: Let me move to strike that. 22 SSave tanlet - object to it. Save it for the jury, 23 MyR. ROSENBLATT: It's called 24 cross-examination, which is what this is. 25 MR. WEBER: No. That's called a 1ury KLEIN, BURY & ASSOCIATES, INC. I7J__ I they have been in control, as Nobel prize winners, 2 there's eminent scientists and the results that they 3 derive out of that research are published. 4 So I do not see where that's a lie or a 5 conspiracy that some of the most eminent medical 6 researchers and scientists in this country and medical 7 schools have used this money to research diseases 8 related to smoking. I do not understand where the Ge 9 or the misleading or the conspiracy, is in that. 10 Q. But aII the money spent tn the 43 years 11 leads you to tell us on Apnl 14, 1997, 43 years after 12 the Frank Statement does Camels cause lung cancer and 13 your answer is maybe it does and maybe it doesn't; 14 correct? 15 A. Yes. 16 But I don't see the conspiracy of this 17 institution -- 18 Q. I know you don't. 19 A. -- putting that money out for people to 20 do this research. 22 (Whereupon, a short break was taken.) 24 Q. (By Mr. Rosenblatt~ Mr. Schindler I'm 25 going to show you Plaintiff' s xhibit 14 whA is KLEIN, BURY & ASSOCIATESt, INC. 171 1 argument. 2 MR. ROSENBLATT: Which is what this is. 3 MR. WEBER: That was called a jury 4 argument. 5 MR. ROSENBLATT: That's what I call good 6 cross-examination.. 7 (By Mr. Rosenblatt) What's your answer 8 to tha4? 9 Answer the question. 10 A. I'm not sure there was a question. 11 Q. Oh, there was. 12 Aren't we telling the same lie today 13 American people today as we did in '54, that was the 14 question. 15 MR. ROSENBLATT: Go ahead and read my 16 question. 17 (Thereupon the requested portion of the 18 record was reaJ back as above recorded.) 19 MR. MOSS: Object to the form. 20 Q. Isn't that true? 21 A. Like cottage cheese, you're referring to? 22 Q. The lying 7'm referring to. Don't get 23 sidetracked. 24 A. I don't believe there's lying. 25 There's been a lot of money~ iven to the KLEIN, BURY & ASSOCIATES, INC. 174 1 entitled Research Planning Memorandum on Some Thought 2 About New Brands of Cigarettes foc the Youth Market. 3 MR. WEBER: Has that been marked? 4 MR. ROSENBLATT: I just did it now. 5 (Whereupon, the above referred to 6 document was marked as Plaintiffs Exhibit No. 7 14 for Identification.) 8 Q. (By Mr. Rosenblatt) Look at the very 9 first page of that document. 10 A. All ri ht. 11 Q. The ftgrst sentence in the second 12 paragraph, quote, realistically if our company is to 13 survive and prosper over the long-term, we must get 14 our share ofpthe youth market, end quote. 15 That's a true statement, isn t it? 16 It was a true statement really throughout 17 the history ~of R.J. Reynolds? 18 MR. WEBER: Let me object to that 19 question. 20 I want to address an issue with you, 21 Stanl_e~ y, just briefly. 22 This is in reference to Exhibit 14, and 23 I'm not certain, but I would bet this isn't 24 your fault, but it's a series issue I just want 25 to make sure we~get it addressed. KLEIN, BURY & ASSOCIATES, INC. 51601 8355 Pages 169 - 1
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ANDREW SCHINDLER 175 1 The original of this document that's been 2 produced is a document on which the author had 3 marked draft. Indeed in v/viiten draft-at the 4 top of page one. 5 Now, there have been some bogus co ies of 6 this floating around that some less scrupulous 7 law yers have whited out the draft statement on 8 the ftrst sheet. This document doesn't exist 9 other than as a draft. 10 So what I'm saying is, what you've got 11 here at the beginning we know is a bogus copy 12 that somebody gave to you and I just want to 13 make that clear. 14 You can go ahead and ask questions about 15 it. 16 But I want - I strongly object to this 17 document being used, because what tt is is a - 18 it's hard to fi ure out what the exact right 19 term is, it's at least a phonied-up document 20 you got from somewhere. 21 I don't know that you know that. I want 22 to make sure that you do know that, Stanley. 23 And you can go ahead and ask questions. 24 A. Who wrote tbis? 25 Q. I was going ~to ask you that. KLEIN, BURY & ASSOCIATES, INC. 176 1 Do you know? 2 A. No. 3 Q. Or who wrote the draft? 4 A. Who wrote this draft document? No. 5 This is in 1973. I wasn't working for 6 the company at that time. 7 Q. Well, if you look at the last age, 8 Claude e E. Teague, Jr., and it's dated ebruary 2, 10 Do you know who he was? 11 A. Yes. ~ 12 Q. Or is. 13 A. Yes, I know who Claude Teague is. He 14 worked in research and development. 15 Q. What was the highest position he achieved 16 at the company'~) 17 A. I believe - I'm not totally sure of this, 18 but I believe his highest position was a director in 19 research and development reporting to the bead of 20 R & D as an administrative planning person in his last 21 years as a director. 22 Q. If as your counsel said this is a draft, 23 do you know whether it was ever finalized in 24 publishable form? 25 A. Well, I don't know what's in here. KLEIN, BURY & ASSOCIATES, INC. 177 1 If it was a draft, I would - I mean, I'd 2 have to guess that it wasn't. 3 I don't - I haven't seen the document. 4 It's a draft document, as you all have agreed here, 5 from a research and developmentperson who had some 6 thou hts about new brands in 1973. 7 Q. Well new brands for the youth market? 8 A. For the youth market. 9 Q. But I mean on the - generically speaking, 10 isn't it a true statement to say that for any tobacco 11 company to survive and prosper over the long-term 12 you ve got to get your share of the youth marlcet? 13 A. What do you mean by the youth market? 15 QA. No hteen and under. 16 We never have gone after people under the 17 l~e~ gal age of smoking. It is against compan policy 18 We've never done tltat and we don't intendyto do that. 19 And it's aga~inst policy today. 20 Q. Tiow about 18 to 21? 21 A. Our share of legal smokers 18 to 21 or 18 22 to 24 is, you know, somet-hing that we would like to 23 improve our share on. 24 But we don't go after people who are 25 under the legal ag e of smokin KLEIN, BURY & AS~OCIATES, INC. 178 1 All of our focus groups, for,example, 2 today when you get sortte promotion idea, new ad that - 3- -you tbink might be good in tfie marketplace and you go 4 to focus groups and show it to smokers, we don't brin 5 an body into those focus groups under the age of L 1. 6 We don't even talk to smo ers under the aB e of 21, 7 even though the le al a e of purchase is lts. We don'i 8 talk to 18 years olas, I~ year olds or 20 years olds. 9 We don't even talk to smokers about any marking ideas 10 unless they're 21 years old. 13 riodA.~ Itw When eitdherein 87 0'88~ptha n begin? 14 pe Q. What, if any, was your involvement with 15 that? 16 A: I wasn't - in '87 I was working in the 17 foods company and '88 for most of that year I was in 18 the foods company. 19 So the Joe Camel campaign, which is 20 originally a promotional campain on the 75th 21 anniversary of the brand initiated in the marketplace 22 while I was working in the foods business. 23 Q. What were you doing in the foods 24 business? 25 A. I was a director of manufacturing.~ KLEIN, BURY & ASSOCIATES, INC. 179 1 Q. For what roduct line? 2 A. Al Steak ~ause, Gre Poupon Mustard, 3 Ortega, Chung-King, Shredded W~eat, Cream of Wheat, 4 Royal Desserts, Mighty Fine Puddings, and that variety 5 of products. 6 Q. And the company, the specific name of the 7 company when you were tn the foods division? 8 A. It was Nabisco. 9 Q. Now, would you agree that the Joe Camel 10 campaign, the ads that one sees on billboards and 11 magaztnes, the cool- Camel characters shooting pool, 12 playing the guitar, the items that are available as 13 freebies or for purchase, aren't they designed for the 14 youth market, 18 and under? 15 A. Absolutely not. 16 Q. You think you can sit here with a 17 straight face and say that you think the Camel 18 advertising campaign is directed to what, 40 year 19 olds? 20 MR. WEBER: Let me object to the form of 21 the question. It's argumentative. 22 Q. It's cartoon characters? 23 A. Met Life uses Snoopy to sell insurance. 24 I don't believe they've targeted 15 year olds for life 25 insurance b~ using ~Snoop y. KLEIN, BURY & ASSOCIATES, INC. 4801 I don't believe Owens-Illinois with the 2 Pink Panther is trying to get 16~ear olds to buy 3 insulation for the homes they're-building. 4 So I can sit here totally confident with 5 a strai ht face and tell you that there's nothing 6 we're~oin with our Camel advertising that targets 7 people under the legal age of smoking. 8 Q. You would agree, would you not, that the 9 freebies associated with the Camel advertising 10 campaign are freebies, products that would be '. 11 attractive to the youth market rather than people in 12 their 30s, 40 and 50s? 13 A. They are for people in their 20s, 30s and 14 40s. They're not targeted to people under the legal 15 age of smoking 16 The Federal Trade Commisssion reviewed 17 the entire Camel campaign for a period of serveral 18 years and concluded that contrary to conventional 19 wisdom or peoples' common intuition, it was not 20 targeted at people under age. It didn't cause people 21 to smoke. it wasn't targeted under age. That was the 22 FTC's ruling. 23 The campaign every year that basically 24 it's been out there is rated among adults as one of 25 the top ten print media campai~ns. KLEIN, BURY & ASSOCIATES, INC. 51601 8356 • Pages 175 - 1
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A ANDREW SCHINDLER 181 I There's never been any attempt 1 2 whatsoever, it's against the policy to target anythin 2 3 we're doing from the marketing'~ndpotnE at people 3 4 under the age of 18. 4 5 I tbink it would be absolutely stupid 5 6 with the scrutiny that this industry takes and this 6 7 company to engage in developing marketing progtams 7 8 that would go at people under the legal age ot the 8 9 purchase of the procfuct. 9 10 As I pointed out to you earlier in the 10 11 development of those things that you suggest are 11 12 targeted at kids, we don't even talk to smokers under 12 13 the age of 21 in the development of our marketing 13 14 programs. 14 15 It's pretty difficult to target something 16 at someone that's 15 if you're not talking to anybody 16 17 in that grou p, which we don't do. 17 ~ 18 Q. Well, let's get very practical about 18 19 this. 19 20 How many smokers under the age of 18 have 21 started to smoke Camels since the Joe Camel campaign 2~ 22 began in '87 or '88? 22 23 A. Are you asking me what percent of 23 24 underage smokers smoke Camels? 24 25 Q. I'm asking~+ ou what I asked you. 25 KLEIN, BURY & ASSOCIATES, INC. 1 A. It is my recollection, based on 2 government statistics that are reported, I think they 3 say somewhere between 10 and 12 or 13 percent of 4 underage smokers smoke Camel. That is what the 5 government reports is my understanding. 6 Q. Okay. Vlfhat was that percentage before 7 the Joe Camel campaign? 8 A. I'm not sure. I think it might have been 9 in the three recent ran e or something like that. 10 Q. I-]pow much, ~ any, has Camel moved up in I I market share from '87 until today? 12 MR. WEBER: What market area are you 13 talking about? 14 A. Total market share. 15 Q. Yes, total market share? 16 A. You're not talking about youth market, 17 you're talking about market share? 18 Q. Correct. 19 A. Since 1987, as of today, I would say 20 probably in total about six or seven-tenths of a share 21 point, somewhere - it probably moved from four to 4.2 22 up to a little over five share points today. It's 23 six, seven-tenths. I'm not sure what the share was 24 back in 1987. 25 It has enerally grown two to three share KLEIN,URY & ASSOCIATES, INC. 183 1 points, so we're talking nine years, it's in that - 2 rt s somewhere six or seven-tenths to a share point. 3 Q. So from a purely business standpoint is 4 that money well spent, the money that's been spent? 56 A. The market share has increased on Camel. Q. But to a satisfacto,ry level from a 7 business standpoint considering the investment and 8 advertising pn Joe Camel? 9 A. l'es. 10 Q. Okay. So you're satisfied? 11 A. Yes. ~ 2 Q: FreSm a business standpoint? 14 Q. Okay. Do you have any reason to dispute 15 the findings that the average six year old recognizes 16 Joe CameI just as quickly as he recognizes Mickey 17 Mouse? 18 A. I'm not sure that that's true. ~90 1 mean, I think you're referring -- 21 Q: Rndt` you're not sure it's untrue? 22 Q. Well, if it's true, do you have any feel 23 for how many of those six year olds when they become 24 14 are going to start smoking Camels? 25 A. I don't believe that advertisin causes KLEIN, BURY & ASSOCIATE~, INC. 184 anyoneto smoke. You know, we've talked about that earlier in this deposition. The fact that somebody - someone may recognize an ad doesn't mean that they're interested in the product. In fact, I think some of the research that has been done with regard to recognition of the Camel campaign also shows among underaged ople wher there's a high percentage of recognition, 97 percent of those same peo~le believe that smoking is a bad thing. So it doesn t seem to me that just because you recognize it that it is somethin that is going to cause you to use that you prouct, if the very people that recognize it also say smokin is bad for you. Q. Have you met a lot of smokers in your lifetime who told you they wished they could quit but they can't? A. I have met smokers that are, you know, people that have smoked that said they would like to quit.~d I'm sure there are people that say they can't q But I believe if you want to quit, as the head of our chairman of the British Medical Society I read a quote where this individual said from his point of view ci arette smokia was a habit a doctor that's KLEIN, BURY ASSOCIA'IrES, INC. _~ I the head - the chairman of the British Medical Sociery 2 believes that smoking is a habit, and if people want 3 to quit, they~can quit today. 4 Q. Well, I want you to assume that in the 5 Engle class we represent people with Buerger's 6 disease. 7 And hopefully your father quit smoking 8 before he ever developed that. 9 And Buerger's disease is a circulatory 10 condition where people start to the lose fingers, toes 11 and sometimes they lose arms, legs, and the doctors 12 believe that this is caused by cigarette smoking, 13 cause and effect clear to the doctors. 14 And I want you to assume that a doctor 15 tells the patient who has lost some fingers and toes 16 you keep smoking, you're going to lose your arm, 17 you're going to lose your leg and the smoker believes 18 the doctor, keeps on smokin loses an arm, loses a 19 leg, that guy's addicted, isnT be, or is he just 20 weak? 21 MR. WEBER: I object to the form of the 22 question. 23 A. I certainly have empathy for people that 24 have those illness or those kinds of diseases. 25 But to me as with m father when he was KLEIN, BL)'RY & ASSyOCIATES, INC. 186 1 told that the implication of his continued smoking 2 would be to lose his hands and f•.es, he quit. He had 3 smoked for 20 some years and he quit. 4 And so it is my view that if somebody 5 wants toc t smoking, they will quit. 6 The situation you portray here to me 7 doesn't sound substantially different than somebody 8 that's told by a doctor that you have very high 9 cholesterol, you're 50 pounds overweight, you need to 10 reduce your fat consumption, you need to watch your 11 diet, you need to exercise or you'll have a heart 12 attack, and they continue on in that same mode of 13 eating too much fat and not reducing their weight and 14 not exercising. 15 Are you sug estin that those people are 16 are addictive - addicte~ to food? 17 1 mean that's the same parallel where a 18 doctor's telling t}~em you need to stop, change your 19 behavior or you re going to have health consequences, 20 and they continue doing it, with regard to food. 21 Q. So the guy w-ho's losing fingers and 22 losing toes and who believes the reason he's losing 23 fingers and toes is because he's smokin cigarettes, 24 wants to stop and can't stop, you're tellgng us he 25 just hasn't made a decision a firm commitment to KLEIN, BURY & ASSOCIATES, INC. 51601 8357 Pages181-1
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ANDREW SCHINDLER 187 I stop, because once be makes that firm commitment he 2 can do it like your father did it? 3 A.- I believe that he can 4eake that.- 4 commitment or that person and they can stop. 5 Just like the person who has a problem 6 with cholesterol can stop if they want to. 7 If they choose not to in spite of 8 doctor's advice, I don t believe an one's portrayed 9 those people as being addicted to food or to 10 hamburgers. 11 Q. I'd like to show you Plaintiff's Exhibit 12 15. . 13 (Whereu n, the above referred to 14 document wasomarked as Plaintiff s Exhibit No. 15 15 for Identification.) 16 p; This is an RJR interoffice memorandum 17 from D H. Piehl, P-I-E-H-L, to Dr. A. H. Laurene, 18 L-A-U-R-E-N-E. 19 Who are thesepeople? 20 Do you know Pieh7, do you know Laurene? 21 A. I knew - it's Andy Laurene. He was - 22 when I was with the company - somewhere in the late 23 '70s he became the head of research and development. 24 1 don't know that he was in '71, but he eventually 25 became the vice-president of research and develo ment. KLEIN, BURY & ASSOCIATES, INC. 188 1 And Don Piehl, Don became a director of 2 research and development. 3 I'm not sure what their titles were. 4 o Back then? 5 A. Back in '71. 6 Q. Is he still with the company? 7 A. No. Neither of these indivtduals are. 8 Q. Okay. Second para raph where it says 9 objective quote, the ultimate o~~~'ective is to develop 10 new product concepts that fulhli needs for the 11 nonsmoker, end quote. 12 Doesn't tbat mean from a business 13 standpoint we've got to figure out ways to get the 14 nonsmoker to start smoking? 15 If it doesn't mean that, what does it 16 mean? 17 A. I don't know what it means. 18 I mean, I've never seen this document 19 before. I've just now seen that sentence. 20 I don't know what that means based on 21 readin that sentence. 22 Q I'm handing you now a document consisting 23 I believe of 27 pages,produced by RJR Tobacco Company 24 in the Butler case. "1"his came up on a deposition. 25 Plaintiff s Exhibit 16. KLEIN, BURY & ASSOCIATES, INC. 189 1 MR. WEBER: Get an extra of that one? 2 MS. ROSENBLA'IT: That one I think we do. 3 (Whereupon, the above referred to 4 document was marked as Plaitiffs Exhibit No. 5 16 for Identification.) 6 Q. Have you seen this before? 7 A. No, I ttaven't. 8 MR. WEBER: Thank you, Susan. 9 Q. I don't think that this has page numbers. 10 A. My copy doesn't. It has line numbers. 11 Q. Yes. 12 Let me find, so we'll be on the same 13 page -- I4 MR. WEBER: What are the last four digits ~ 6 on t Tat~a~e~ ITNESS: 2625. 17 MR. WEBER: Okay. Thank you. 18 Q. Now, this apparently is a Brown & 19 Williamson document. 20 I've pointed you to the section on 2 questions and answers. ? And if you look at the last sentence in 23 the second paragraph on that page, the following 24 questions and answers are not intended to make 25 spokespersons out of Brown & Williamson em lo ees but KLEIN, BURY & ASSOCIATES, ~N~. 1 they are intended to better inform our managers. 2 And obviously this is a list of suggested 3 -answers to commonly asked questions. -- 4 Now, look at the very first yuestion, 5 does smoking cause lung cancer empFiysema, 6 cardiovascular disease and bronchitis? 7 And the suggested answer is, no one 8 knows. Scientific research has not established that 9 smoking causes, illness. We all know some scientists 10 have said smoktng causes illness, but many respected 11 scientists believe cause has not been shown. More 12 research is needed. 13 And as - I've read that correctly? 14 A. ttness nods). 15 Okay. As I've understood your testimony, 16 Reyno ds does not have a similar format in terms of a 17 employee handbook or in terms of communicating 18 infonxtation to employees as to how tbey~ should respond 19 to perceived attacks on the company. 20 MR. MOSS: Object to the form of the 21 yuestion and move to strike everything until 22 the last sentence, which I think finally was a 23 uestion. 24 l. You can answer? 25 A. Could you do the last sentence for me KLEIN, BURY & ASSOCIATES, INC. 191 1 again? 2 (Thereupon, the requested portion of the 3 record was read back as above recorded.) 4 A. I don't know of any employee handbook. 5 Well, let me - this is Brown & 6 Williamson. I mean, I do work for R J. Reynolds. 7 p. Yes. But on a deposition it was produced 8 by RJR Tobacco Company in the Butler case. 9 Do you know how that happened? 10 A. I have no idea. 11 Q. 'Okay. You don't know how or if this ever 12 came into the possession of your company? 13 A. No. 14 I've never seen this before. 15 Q. OThkts is a Brown & Williamson employee 17 handbook. 18 Is that what you're referring to? 19 Q. That's wha~it says. Yes. 20 A. I don't know of any employee handbook 21 that we have that's similar to this. 22 Q. Plaintiffs Exhibit 17. 23 (Whereupon the above referred to document 24 was marked as Illaintiff s Exhibit No. 17 for 25 Identification.) KLEIN, BURY & ASSOCIATES, INC. 192 1 MR. WEBER: How about that one, do you 2 have a copy Susan? 3 MS. KdSENBLATT: No. 4 MR. ROSENBLATT: So demanding. 5 MR. WEBER: It's just common courtesy. 6 I'm surprised you didn't have that for us. 7 I'm not smiling about it. It is an issue 8 of courtesy and I would have expected -- 9 MR. ROSENBLATT: Courte~sy 's got nothin~ 10 to do with it. We're a small ottice. It was 11 an oversight. 12 MS. ROSENBLATT: We offered to make 13 copies. If you want to take a break for ten 14 minutes we can make some copies. 15 MR. WEBER: Not now. I m going to - 16 Stanley's on a roll. We're going to let htm 17 finish tsh up. Mr. Rosenblatt) Okay. So 19 Plainuff s Exhibit 17 is now in front of you. It's 20 an inter-office memorandum referring to nicotine 21 research, a memo from W.M. Henley to Dr. D. H. Pieht. 22 You've told us who Piehl is. 23 Who is Henley? 24 A. [ don't know. 25 Q. Okay. Go to the second p~a e please. KLEIN, BURY & ASSOCIATESt, INC. 51601 8358 Pages 187 - 1
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ANDREW SCHINDLER 193 1 Now, the memorandum, the subject of the 2 memorandum is nicotine research; cotrect? 3 A. -Yes. _ 4 Q. Going to the second page, the middle of 5 the page under the topic absorpiion, metabolism and 6 excretion, the first sentence says, probably the most 7 effective method of administenng nicotine to the body 8 is by inhalation of cigarette smoke. 9 Do you agree with that? 10 A. There's nicotine in cigarettes and when 11 you smoke them they get to the body, inside the body, 12 obviously from the stnoke. 13 I'm not a scientist so I can't possibly 14 comment on effective methods of admmistratton of 15 nicotine to the bod 16 MR. RO~ENBLATT: Plaintiffs Exhibit 18. 17 (Whereupon, the above referred to 18 document was marked as Plaintiffs Exhibit No. ~90 18 for Identification.) Q. (By Mr. Rosenblatt) Now, this document 21 which I've handed you, Plaintiff s Exhibit 18, is 22 titled Update on the Smoking and Health Issue and 23 Smoking Satisfaction from Murray Senkus to Mr. J.F. 24 Hind. 25 Do you know these men? KLEIN, BURY & ASSOCIATES, INC. 194 1 A. I knew Jim Hind - well I knew who he 2 was. He was a previous back in tbe '70s one. of the 3 marketin directors. 4 ~vlurray Senkus is one of the senior 5 research and development people. 6 Q. Go to the first ~age of text after the 7 table of contents. Yes. That pageT the bottom 8 paragra h on that page, which I'm gotng to quote now, 9 regardless of the reports in the press or tn the 10 medical journals claiming that the relationship 11 between smoking and health has been proven the 12 tobacco industry in America does not accept lose 13 claims. The tobacco industry and in particular the 14 management of R.J. Reynolds Tobacco Company maintain 15 that the relationship is still an open question. 16 Have I read that accurately. 17 A. Yes. 18 p That is - that it remains the position of 19 the R.7 Reynolds Tobacco Company as we sit here on 20 April 14, 1997• is that correct? 21 A. As Irve testified before, that I believe 22 that cigarette smoking may cause the diseases that are 23 associated with smoking behavior. It is a risk factor 24 for those diseases. 25 Q. Mr. Schindler the Broin case which is KLEIN, BURY K ASSOCIATES, INC. 1 MR. WEBER: Let me object to t6hat. You 2 _ don't know what his schedule ;s going to be, 4 Sthaa~tethe timing is, all sorts of issues there;- 5 Y-ou can always play this tape and have 6 him MReROSENBLATT: Plaintiffs Exhibit 1! 8 (Whereupon, the above referred to 9 document was marked as Plaintiff s Exhibit No. 10 . 19 for ldentification.) 11 Q. (By Mr. Rosenblatt) Okay. This documer 12 is called Research Planning Memorandum on the Nature 13 of the Tobacco Business and the Crucial Role of 14 Nicotine Therein. 15 And this is an RJR document; correct? 16 A. That's what's stamped on the front. 17 Q. Oka Go to pa e five, please. ~ ~ 19 VEBER: I o we have a date on this, Stanle yR. 20 THE WITNESS: '72, April 14, '72. It's a 21 Claude Teague memo. 22 MR. MOSS: What did you say the date was? 23 THE WITNESS: April 14 72. ~ '72 Q. Twenty-five years ago today, April 14, KLEIN, BURY & ASSOCIATES, INC. 197 l A. Yes. 2 Q. Go to a e five lease. 3 MS. R~S~NBLA~: The yellow tab, the 4 first yellow tab. 5 A. I'm there. 6 Q. Tell us who Mr. Teague is again? 7 A. He was in research and development. 9 five?Q. Okay. Now, are we on the same page, 10 A. Yes. 11 Q. :Okay. Starting right about here? 12 A. Yes, sir. 13 Q. Okay. p~oting , what we should really 14 make and sell woul-d be tbe proper dosage form of 15 nicotine with as many other but7t-in attractions and 16 gratifications as possible, that is, an efficient 17 tucotine delivery system with satisfactory flavor, 18 mildness, convenience, cost, et cetera. On the other 19 hand, if we are to attract the nonsmoker or 20 pre-smoker, there's nothing in thistype of product 21 that he would currentl understand or d-esire. We have 22 deliberately played down the role of nicotine, hence 23 the nonsmoker has little or no knowledge of what 24 satisfactions it may offer him and no desire to try 25 it. Instead, we somehow must convince him with wholly KLEIN, BURY & ASSOCIATES, INC. I95 -- 1 the flight attendant class action, is going to trial I - - T98_ irrational reasons that he shouldtry smoking in the 2 in Miami on June 2nd of this year. 2 hope that he will for himself thEtt aiscover the real 3 Do you intend to appear personally at 3 satisfactions obtainable. 4 that trial as a witness? 4 And of course, in the present 5 MR. WEBER: Let me object to that. 5 , advertising climate our opportuntties to talk to the 6 And I'll instruct him not to answer. 6 pre-smoker are increasingly limited and therefore 7 The decisions on witnesses will be made 7 tncreasing1 y ineffective. 8 b counsel. 8 ~ Would it not be better in the long run to 9 If it was your desire in a case where 9 identify in our own minds and in the minds of our 10 R.J. eynolds Tobacco Company was a defendant to 10 customers what we are really selling; i.e., nicotint 11 testify in person in front of a jury, no one could 11 satisfaction. 12 stop you from doing that, could they? 12 This would enable us to speak directly of 13 MR. WEBER: Let me object to the 13 the virtues of our product to the confirmed smoker an 14 question: 14 would educate the pre-smoker perhaps indirectly but 15 Go ahead and answer, if you can. 15 effectively in what we have to offer and what it woult 16 A. I - if I testified in a case, it would be 16 be expected to do for him. ~ 78 with consultation with my attorneys. Q. Okay. So that decision would be made by 17 18 Now, ou would agree, would you not, that based on what I just read that -- 19 your lawyers as to whether or not you'll come to Miami 19 Is it Mr. Tea gue or Dr. Teague? 20 and testify in this case? 20 Was he a Ph.D. in something? 21 A. In consultation with my lawyers. 21 A. 1'm not sure. 22 Q. Okay. If I'm in trial in this case, the 22 p Okay. You would agree from what I just 23 Broin case, and you don't show up during the trial, 23 read tFat what he is saying is that nicotine is the 24 then I will have the right to assume that you in 24 whole ball game in terms of smoking? 25 congultation with vour lawyers decided not to show up? KLEIN, IiURY 8r. ASSOCIATES, INC. 25 You may BURY agree with it but that's KLEIN, BURY & ASSOCIATES, INC. Pages 193 - 51601 8359
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ANDREW SCHINDLER 1 2 3 4 5 6 7 8 9 10 11 12 13 what he's saying, nicotine is the key to ke9eping smokers using our product and to attract new smokers, if they knew the satisfactions oftcotine?- MR. WEBER: Let me object to the form. You can answer. A. Do you want to repeat that, please? (Thereupon, the requested portion of the record was read back as above recorded.) That's the thrust of what I just read, isn't it. A. That's your interpretation. Q. What's your interpretation? A. My reaction, I've never seen this before 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 , I've been in this business a long time and, quite frankly with all due respect to the author, this whole t6strikes me as bizarre. Q. ~our reaction is, you wish he never would have wrote that? A. No. Q. Because it's harmful to your position in having to ex lain how someone in a hi g'hpo st in research andpdevelopment could say wFiatl just read in an RJR document? A. He wrote it. He wrote it 20 -- Q. Twenry -five years a o? KLEIN, BURY & ASSOCIATES, INC. 14 15 16 17 18 19 20 21 22 23 24 25 200 1 A. -- as you pointed out, 25 years ago. 1 2 He's entitled to his point of view. 2 3 I think it's bizarre. I've never viewed 3 4 the product this way in my e ntire time with the 4 5 ~ ~ company and have never talked to anybody that did. 5 6 So maybe this is a little bit like the 6 7 McMahon issue with the sales force, you have an 7 8 employee here that has a point of view that I think is 8 9 completely bizarre. 9 10 Q. Well, actually, Teague was the director 10 11 of research and development. 11 12 A. He was - his last job, okay, when he left 13 the company was a director over planning and 12 14 administratton. He was never the director of research 14 15 and development. And I believe because this was in 15 16 1972, he was a mana er several levels down in the B 16 17 organuation would b e m uess 17 t 18 y g . Q. Okay. But obviously he got promoted 18 19 after? 9 20 A. He was never the director of research and 0 2 21 development 21 . Q. Okay. But be got promoted -- 22 23 A. To an admintstrative job. 24 Okay. 24 A. a core research job as a director, as 25 KLEIN, BURY & ASSOCIATES, INC. he wasn't fired after writing this, he was p omoted. A. That - nevertheless he wrote this, it's - his opinion. - This isn't a company position. This isn't my position. I've never heard anybody say thin s tilte. that, other than in this document, and I'veeen in this business a long time. Q. How long was Teague in this business? A. I believe-he retired somewhere in the mid '80s, so I would - I don't know. 25 years, 30 years. I don't know how much time he had with the compan- when he retired. Q. Well, isn't -- A. His opinions are his opinions. Q. Isn't -- A. This isn't my opinion. Q. Well, has there ever been in the history of the tobacco industry a cigarette that was marketed and successful that did not contain nicotine? A. Philip Morris had a product, I guess essentially very little or no nicotine that they attempted to market several years ago, and were highly criticized by the anti's for doing it. Q. Named what? A. I can't remember. KLEIN, BURY & ASSOCIATES, INC. 203 Q. You can't remember? A. Yes. There was a product that they had developed and marketed and were criticized at the timt for tng to do it. ~. You can't remember it because it bombed, it was a total failure? A. It did not succeed in the marketplace. That's right~. ZvIR. ROSENBLATT: Plaintiffs Exhibit 20 (Whereupon, the above referred to doctiment was marked as Plaintiff s Exhibit No. 20 for ldentification.) Q. (By, Mr. Rosenblatt) This is an RJR document entttled Plannin Assumpttons and Forccast for the Period Through 1~6. A. What's the starting place here? It must be '76. Q. '76. A. The document is March of '76. Q. Right. It's from the research department, it's dated March 15, 1976. Going to the first tab -- A. This it? Coman~ Key issued of R.J. Reynolds Tobacco p KLEIN, BURY & ASSOCIATES, INC. I 201 I remember it. I -204 MR. WEBER: Just -- 2 p~ Was that revealed to the ovetnment or g 2 A. I'm not sure -- 3 the public, what I just read from M r. or Dr. Teague? 3 MR. WEBER: Wait just a second 4 A. Was -- ' 4 , Mr. Schindler. 5 Q. What I ust read, was that revealed that i 5 Just for the record if you are going to 6 those were his bel efs? 6 , refer to tabs, Stanley those aren't original 7 A. I have no idea. 7 , tabs that the author of the company put those Q. Okay. Now, go to the next page, page 8 , are tabs that you put on. 9 six, about five lines down. 9 ~ ~ MR. ROSENBLATT: Correct to make it 10 If his - if as proposed above nicotine is 10 , , easier for the witness. 1 1 the sine qua non of smoking, and if we meekly accept i l MR. WEBER: Thank you. 12 the allegations of our critics and move toward 12 Obviously try to answer his question. If 13 reduction or elimination of nicotine from our 13 you need to read either before or after the 14 products, then we shall eventually liquidate our 14 tab, I'm sure he'd want you to do that as well 15 business, end quote. . Mr Rosenblatt) A ith (B Q 16 And my question to you, sir, is, doesn't 16 y . re you w me on a . e? that p 17 this strike you as an honest bottom line statement 7 Ag ~itness indicates) 18 from a man who is simply speaking a simple truth, 8 i . Q. Right. 19 which is, that if cigarettes containea zero nicotine, 19 Number 12 says, the southern United 20 there won't be any smokers or there would be so few 20 States would show the fastest growth in industry 21 smokers that nobody would make a profit? 21 volume. 22 A. This is Claude Teague's opinion. 22 Number 13 says, blacks will become a more 23 Q. But I didn't hire him, you did. 23 important seg ment of the cigarette business 24 A. I didn't hire him, either. 24 . Well, that's certainly proved true 25 Q. But he's workin for your company. And KLEIN, BURY & ~SSOCIATES, INU. 25 , hasn't it? KLEIN, BURY & ASSOCIATES, INC. Pages 199 - 2 51601 8360
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A ANDREW SCHINDLER 205 1 A. I don't know. I don't know the trends in 2 African American smoking frot~t 1976. 3 Q. -And 14 says, femaleSVVill continue to 4 become a more important portion of the smoking 5 population. 6 That's certainly proved true hasn't it? 7 A. I don't know the statistics ?rom '76 to 8 now, 21 years ago. 9 p Now the next tab is, the title is Key 10 Issue Position 13aper. 11 A. Okay. 12 Number one, trend issue or event 13 identi ed described, black will become a more 14 important segment of the ci arette business. 15 Number two, wha~ will happen, black 16 population of smokin~ age will grow faster than total 17 population and Kools s hold on preferences should 18 weaken dash an opportunity. 19 Is it fair to say that what is expressed 20 here is that for some reason African Americans were 21 smoking a lot of Kools and R.J. Reynolds was 22 describing methods of how to get some of the Kool 23 smokers to the R.J. Reynolds brands; is that how you 24 interpret it or different7y? 25 A. f don't - talking about African American KLEIN, BURY & ASSOCIATES, INC. 206 1 and they're talking about Kool, I don't see any 2 descriphon of methods on how to get African Americans 3 to smoke our product; 4 Q. What does it mean when it says an 5 opportunity~ 6 A. That's a theory, not a method. 7 Q. Okay. And then the next tab is a key 8 issuepo sition paper that females will -- 9 A. Wait a minute. I'm not sure - okay. 10 Q. That females will continue to become a 11 more unportantpo rtion of the smokiag population. 12 Now, I, mean, this is the kind of thing 13 that the tobacco tndustry keeps close tabs on, isn't 14 it, for example, R.J. Reynolds knows and pays 15 attention to the number - the percenta,~e of people who 16 smoke in China or ia Russia; correct. 17 A. I've never seen numbers on China and 18 Russia. 19 In what countries is smoking more popular 20 than Q. United States? 21 A. The only one that I suspect I have 22 knowledge of is perhaps in Japan, I believe there's a 23 higher incidence of smoking, but I've - you know, I'm 24 responsible for domestic U3 market. 25 Q. But ou're not ignorant to the world KLEINyBURY & ASSOCIATES, INC. 207 1 market? 2 A. I don't study the world market. 3 I mean, you're asking me about China and 4 Russia and I'm responsible for the US. 5 Q. Now, go to the next tab, please, where 6 again at the top it s key issue position paper. 7 The number one, adult smokers under 25 8 will show a major shift in brand preference. 9 Number five, at the bottom, says source 10 NFO share of smokers shows that Marlboro's acceptance I 1 among 14 to 17 year olds has dropped from 39 percent 12 to 32 percent. "Tbis pattern has been repeated by 13 three brands, with Pall Mall peaking in 1969, total 15 mi19 8 in 1970 and total Marlboro should peak share 16 Have I read that correctly? 17 A. Uh-huh. 18 p So wh do you figure RJR is discussing 19 14 to 17 year oldysmokers ifthat age group is 20 irrelevant to Reynolds? 21 Wh is it even being discussed? 22 A. I dyon't know. 23 You've got a document here that is 40 24 pages or so, you're taking ~excerpts out of this, 25 they re referrin~ to data, NFO share of smokers 25 KLEIN,-BURY & ASSOCIATES, INC. 1 years ago or whatever, and you're picking out bits an, 2 _pieces. 3- I have no idea what this is doing or what 4 it's for. 5 Our policy is not to sell cigarettes as 6 we've discussed before, to people under the legal age. 7 That is our policy, that is wbat we do. 8 And the relevance of this particular 9 document to our company policy is kind of lost on me 10 as you pick throug h each piece of this. 11 MR. WEBER: Stanley, we're at 5:20 now, 12 so if we can wrap up 13 MR. ROSENSLATf: My estimate might have 14 been wron . MS. ROSENBLATT: The next tab. 15 Q. (By Mr. Rosenblatt) The last page, I 17 think. Where in the outer margin it sayshappenmg 18 now, in the middle of the gage. 19 Are you with me. 20 What is the level of advertising 21 promotion spendin required to maximize volume, by 22 brand, by braad sry~e, new versus established. 23 In that context, what does that mean, new 24 versus established? 25 A. I'm not sure what they meant but it KLEIN, BURY & ASSOCIATn, INC. 1 sounds to me like new brands versus besta lished 2 brands. Q. Doesn't it mean new versus established 4 smokers? 5 A. You're either a smoker or you're not, so 6 I don't -- 7 I don't know what you're talking about, 8 Mr. Rosenblatt. 9 Q. You would agree, would you not, that ever 10 since you'.ve been with Reynolds in any capacity up 11 until the present time that any time a negative 12 scientific study comes out and gets any publicity in 13 the media that the policy of Reynolds either directly 14 or throug>i the Tobacco Institute is to criticize and 15 find fault with the study? 16 A. That's a very broad statement you're 17 making, any. 18 If something is published with regard to 19 our business and we ;ftave a different point of view, w, 20 will state our different point of view. 21 Q. As a matter of fact, isn't that precisely 22 why and one of the main reasons for the existence of 23 the Tobacco Institute? 24 I mean, that's one of their mandates, 25 isn't it? KLEIN, BURY & ASSOCIATES, INC. 210 1 MR. WEBER: Object to fotYrt. 2 A. Mandate to what? Q. To look at literature Surgeon General's 4 reports, EPA reports, World Realth Organization 5 reports, American Cancer Society reports, that speak 6 negatively about cigarettes causiag disease and death, 7 to nave a come back to respond to those reports which 8 are adverse to the {'inancial health of the tobacco 9 industry? 10 MR. WEBER: Object to the form. 11 You can answer. 12 A. I've never viewed the Tobacco Institute 13 that way. 14 With regard to the science surrounding 15 our product, I rely on our research and development 16 people. I certainly don't rely on the Tobacco 17 Institute for keepin~g abreast of current science. I 18 really on that our 1Z & D people, not the Tobacco 19 Institute. That thou ht never crossed my mind. 20 Q. That's no~what I was asking you. 21 1 was asking you what organ or entity of 22 the tobacco industry responds when, for example, a 23 Surgeon General's report comes out in 1988 saying that 24 smoking's addictive. 25 A. What entity responds? KLEIN, BURY & ASSOCIATES, INC. 51601 8361 Pages 205 - :
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ANDREW SCHINDLER 1 Q. Yes. 211 I 2 Is it the Tobacco Institu te? 2 3 A. -Depends on the situabdn. - 3 4 Q. Okay. That situation, the ADA -- 4 5 A. I don't know what the Tobacco Institute 5 6 said in 1988. 6 7 Q. What did you say? 7 8 A. I'm -- 8 9 Q. Obviousyl you said -- 9 10 WEBER MR St l l t hi f i h 10 . : an ey, e m in s . 12 1988A. I was working in the foods business in I 1 12 13 You're asking a very broad question about 13 14 I believe the Tobacco Institute. I have no idea what 15 the Tobacco Institute said in 1988 with regard to the 15 16 Surgeon General's report and addiction. 16 17 Q. Mr. Schindler, you are the 17 18 resident and CEO of R.J. Reynolds Tobacco 18 19 ~ompany? 19 20 A. Yes sir. ' 20 21 Q. AncJ I am asking ou what your company - 21 22 how your company responded to the 1986 Surgeon 22 23 General's report, for examp le, on environmental 23 24 tobacco smoke, to the 1988 Surgeon General's report 24 25 saying that smoking was addictive? 25 KLEIN, BURY & ASSOCIATES, INC. 212 1 You're telling me you don't know? 2 A. I don't - I wasn't in this position, I 3 wasn't in the position -- 4 Q. You ve never studied? 5 A. To o back these years and evaluate prior 6 responses to Surgeon General's reports that the 7 company may have bad made ten, 12, 13, 14, 20, 45 8 years ago? No, I•haven't done that. 9 Q. But you do know, don't you, even though 10 you may not kaow the particulars or the details, you 1 I certainly know that R.J. Reynolds Tobacco Compaay just 12 did not sit with its hands folded when those 5urgeon 13 General's reports came out, you know, I assume, that 14 R.J. Reynolds Tobacco Company responded and in some 15 way found fault with orpointed out the inaccuracies 16 or the improper methodologies of those reports, don't 17 you? 18 A. Well, the company would react to those 19 reports as it saw fit and take positions that it felt 20 it had a ri ht to take. 21 Q. ell, if the Journal of the American 22 Medical Association took an editorial position that 23 everyone knows, eve one knows and everyone accepts 24 with the exception o the tobacco industry that 25 cigarette smoking causes cancer and that environmental KLEIN, BURY & ASSOCIATES, INC. 213 1 tobacco smoking causes cancer and let's stop this 2 nonsense of acting and pretending as though this were 3 a debatable or controversial issue when it is 4 absolutely not, what would you direct your people, how 5 would you direct your peo~le to respond to such an 6 editorial in the Journal of the American Medical 7 Association? 8 MR. WEBER: Object to the form of the 9 question. 10 You can go ahead. I 1 A: A ain, this is one of your very 12 theoretical ~ypothetical questions. 13 T'he example you throw out here, I might 14 not direct anyone to do anything if the Journal of the 15 American Medical Association wrote an editorial as you 16 described it such as that. 17 Q. Well, how about if the editorial that 18 I've just you suggested in my according to ou 19 ridiculous hypothetical was carried on tlte front page 20 of every paper in the country. 21 Certainly R.J. Reynolds Tobacco Company 22 would respond in some fashion? 23 A. Not necessarily. 24 Q. What's the policy on that? 25 Is there no~policy, it'sJust hit or KLEIN, BURY & ASSOCIATES, INC. miss? 214 _ A. What you described sounds to me - I don't see any reason that you would respond. You're asking a hypothetical question. I'm saying to you that it is not necessarily true that there wou~d be any response to that. Q. What was the response of the RJR Tobaccc Company to the US - United States Environmental Protection Agency's report on secondhand smoke? A. Our response was that the were invalid in their judgment, that the eptdemiology has not supported the judgment that they made, and the eptdemiology since then has confirmed our position even stronger. Q. Name one study, you're talking generally about epidemiology, name one study, name one authc which has, as you say, weakened the findings of the EPA report saying very clearly that environmental tobacco smoke is a Class A carcinogen and that 3000 lung cancer deaths are caused every year to Americar as a result of breathing in involuntary smoke? A. The Con ressional Research Service, an independent research service that provides expertise in the evaluations to Congress questioned quite strongly~ t~he valid of their jud ment. KLEIN, BURY & ASSOCIATES, INC. - ~13 1 The epidemiology, as I understand it, has 2 continued, has driven whatever risk has been tn the 3 original epidemiology down to an even lower level. 4 Everything that I have seen in review 5 with our scientists points in the direction that 6 there's not sufficient epidemtolo ical research to 7 justify the claim that'sbeen made by the EPA. 8 MR. WEBER: Stanley, we've been going ~ 9 hour now since on our last break and we're - 10 since we last started. We're past when we 11 thought we were going to quit. I guess we're 12 goin to have to take a break. 13 how much longer are you going to go? 14 MR. ROSENBLATT: Less than a half hou 15 MR. WEBER: We had people making plan 16 changes based on the fact you said you'd be 17 done-by 5:20. We figured 5:30. 18 Any wa~ you can get this done in the next 19 few minutes. 20 MR. ROSENBLATT: You know, I'll do my 21 best during the•break. I'll talk to my wife. 22 I'll see what I can streamline. 23 MR. WEBER: Okay. We'll be back in about 24 two minutes. KLEINr BUR~' & ASSOCIATES~NC ~ -2I6- 1 Q. (By Mr. Rosenblatt)_„js it in your 2 opinion a legitimate concern ot government to provid 3 information to the American people to protect them 4 from involuntary exposure to a hazardous substance? 5 A. It's the legitimate role of government 6 from my standpoint to inform people of what they think 7 risks are in their environment or in society. 8 p The Frank Statement To Cigarette Smokers 9 published in January, 1954, in every ma or newspape 10 in America, says toward the bottom of tFie first 11 column, we accept an interest in peoples' health as a 12 basic responsibiltty, paramount to every other 13 consideration in our business. 14 Do you accept that responsibility today? 15 MR. WEBER: Let me object to the - 16 Mr. Rosenblatt's portion of that question about 17 where he testified about where it was 18 published. 19 You can go ahead and answer. 20 A. As I testified earlier, we have - you 21 asked me earlier responsibilities that we have and 22 they're varied and one of those is to our smokers. 23 Q. Mr. Schindler, I read one sentence, I'm 24 asking if you agree with that sentence, we accept an 25 interest in peo~ ples' health as a basic res onsibiity, KLEIIV, BURY & ASSOCIATES, INC. Pages 211 - 51601 8362
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4 ANDREW SCHINDLER 217 1 paramount to every other consideration in our 2 business. 3 "Please don't refer meto your earlier 4 testimony. 5 My question simply is does R.J. Reynolds 6 as we sit here today on Apn7 1 d, 1997, accep~t an 7 interest in peoples health as basic responsibtlity, 8 paramount to every other consideration in your 9 business? 10 A. I view, you know, the issues regarding 1 I smoking in terms of health nsks as a paramount 12 importance in my doing my duty as a CEO. 13 p The last statement in that first section 14 is, referring to the tobacco industry, we always have 15 and always will cooperate closely with those whose 16 task it is to safeguard the public health. 17 Is that thepo sition of R.J. Reynolds 18 Tobacco Company today, that ou are and will cooperate 19 closely with those whose tas~C it is to safeguard the 20 public health? 21 A. I believe we should cooperate. 22 Q. And you - and do you believe you have 23 done so? 24 A. I believe we have done that up until the 25 end of this '70s, when I believe under the Carter KLEIN, BURY & ASSOCIATES, INC. 218 1 administration that a joint working group between 2 public health officials and the industry was disbanded 3 by the Carter administration, and since then it s 4 become adversarial. 5 p What, if anything, do you have to say to 6 the children of a heavy smoker of your products who 7 dies of lung cancer prematurely, in their earl 40s, 8 and the kidcomes to you and,says your prodact killed 9 my mother or your product ktlled my father, that's 10 what the doctor says that s what the literature says, 11 what do you say to tlbat kid, maybe it did and maybe it 12 didn't? 13 MR. WEBER: Let me object to the question 14 as being wholly argumentative. 15 Q. Because as I ve heard your testimony all 16 day long when we talk about risk factors, you ve said 17 over ana over again maybe it causes cancer, maybe it 18 doesn't. 19 So I'm saying what do you say to this 20 kid, maybe my product killed your parent and maybe it 21 didn't? 22 MR. WEBER: Same objection. 23 A. It's unfortunate in this hypothetical , 24 situation that you've created here that some chtld 25 would lose their parent to a disease such as lun KLEIN, BURY & ASSOCIATES, INCg -2I9 1 cancer. 2 My view, as I have stated in this 3 deposition, that cigarettes based on the science of 4 epidemiology are a risk factor related to lung cancer 5 and other dseases and it may have caused, but it may 6 not have. 7 Q. So Mr. Schindler, even if the child's 8 mother died at 42 and was a three pack a day Camel 9 smoker from the time she was 14 years of age, having 10 the opinion and the viewpoint that you've expressed 1 1 just now and throughout this deposition, you can go 12 home with a clear conscience and you can go to the 13 offices of R.J. Reynolds Tobacco Company tomorrow and 14 continue your business with a clear conscience; 15 correct? 17 A MRS ROSENBLATT: That's all I have. 18 MR. WEBER: Thank you. 19 (Thereu n, the taking of the deposition 20 was concluded.) 21 22 23 24 25 KLEIN, BURY & ASSOCIATES, INC. LI h 2 220 eponen fworn to and subscribed before me this day o , l~o~ary Putirc KLEIN, BURY & ASSOCIATES, INC. STATE OF FgLORI~A ICATE COUNTY OF $ROWARD: 22-1 3 I Richard O. A lebau g 5 Shor,th~and eporter and ~otary ~ub~co~ the State o 6 Flor at ~arge do hereb~+ grt~i that re rted 7 the eposY~ n of ~ndlrew cia r, ~ye~a witness b the De endaat in e above- cause; thpt the said w'tness was dul swo, a y ipe; that Ibe 10 witness ~tereal~ter read sad s~if~scrt said depos toa; red from 1 to,2~~, 11 mClns ve~~g~t~fe a tru nand co 1~ of, my ahort~nd report o~ the depos~itton by said oa 4 wttness on ~ts date. IS • I further ce~ th$t I atn npt an 16 attorpey or coupsel of 'y oT the parties, nor a 17 relative or employee ot~aay att4rney,or counsel I~ connecned with the action nor financially interested us the action. 0 WITNESS my hand and ffcial seal in the ct ~ Fonda hois l~thdday of,Apri~lnty9Q~Broward, State of 2 I 94 25 KLEIN, BURY & ASSOCIA , NC. KLEIN, BURY & ASSOCIATES, INC. 51601 8363 Pages217-:
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ANDREW SCHINDLER 114 1:13 146:3 156:5 20 12:16 29:24 31:23 32:8 -$- 173:11,25 174:7,22 66:16 67:18 68:1 142:5 183" 194:20 196:20,23, 1.43:13,14,17,22 144:2 $10b 1 .b ~5,7,8,10 24 205:3 207:11,19 178:8 186:3 199:24 212:7 217:6 219:9 203:9 12 212:7 f 147 3:14 , 20.8 146:3 15 3:16 104:3 147:4 2000 141:24 5 s 4 :1 4 : 89:11 179:24 181:16 187:12,15 20s 180:13 '54 48:23 171:13 203:21 21 30:16,21,22 31:22 32:6 '60s 59:19 89:11,12 159 3:15 34:15 35:1 70:3 177:20, '69 16:17 21:1 16 68:8 147:4 180:2 21 178:5,6,10 181:13 '70 146:25 188:25 189:5 205:8 '70s 9:18 29:20 30:4 89:12 16th 221:22 220 221:11 187:23 194:2 217:25 17 3:17 132:9 147:5 23 67:24 120:12 '71 187:24 188:5 191:22,24 192:19 207:11, 24 137:10 139:24 177:22 '72 196:20,20,23,25 19 25 16:17,19,25 20:3 21:6 '74 16:11 18 10:3,18,21 15:3,13 70:17 122:19 172:3 '75 146:12,15,25 16:16,25 20:3 68:19,25 200:1 202:10 207:7,25 '76 16:12 203:17,18,19 69:3 137:22 139:23 2500 151:11 205:7 177:20,21,21 178:7,8 2625 189:16 '80s 19:11 21:10 137:23 179:14 181:4,20 193:16, 27 9:24 188:23 166:20 202:10 19,21 28 9:24 '81 18 5 18 ld 137 9 11 2 : -year-o : , 9 135:19 '84 113:22 132:5,14 133:1 181 3:16 2nd 195:2 '85 18:8,12,19,25 19 3:18 66:16,16 178:8 '87 178:12,16 181:22 196:7,10 -3- 182:11 191 3:17 '88 178:12,17 181:22 195 3:18 '94 120:9 122: 19 125:16 1954 48:22 50:3,7,23 30 17:9 27:25 31:14 61:24 131:13 57:11 155:23 170:11 66:23 67:7 81:20 82:4 '96 92:25 172:10 216:9 83:10 84:23 102:4 '97 132:15 133:2 1962 15:4 105:10 202:10 1969 15:16 207:13 30.3 147:4 -0- 1970 146:12,15 207:14 3000 214:19 1972 200:16 30s 180:12,13 0 I 1973 176:5,9 177:6 31 5:25 1974 5:7 32 5:25 207:12 ~-1- 1976 203:21 205:2 35 70:4 1978 9:19 207:15 39 207:11 1 : 221:11 1979 9:19 3rd 152:13 1.04 73:2,8 1980 141:23 1.19 73:6 1982 88:8 -4- 1.35 7:10 1984 112:19 113:13 132:9 1.39 7:10 133:4 134:12 135:19 4 1.40 7:9 138:25 140:9 142:18 4.2 182:21 1.45 7:9 143:20,21 144 :9 40 27:25 31:14 70:18 1.65 74:2 1985 18:7 83:10 88:7 165:6 166:12 1.78 7:3 1986 72:13 203: 15 211:22 179:18 180:12 207:23 1.80 7:3 1987 182:19,24 40s 180:14 218:7 1.90 7:3 1988 19:3 210:2 3 211:6, 41 104:4,4 10 134 : 22 135 : 3 147 :18, 25 12,15,24 42 140:15,15,18 219:8 148:13 182:3 1989 19:4 42.9 147:5 100 101:12 105:2 149:8 1990 142 :6 147 : 25 149:14 43 141:4,21 156:21,23 1000 160 4 14 22 152 153 13 154 13 5 0 5 : , : : : , 7:4 17 :1 172:8,12 1 11 3:14 139:16,17 147:10, 21,24 156:2 173:10,11 12,24 152:7,19,22 1993 72:15 44 142:3 114 3:10 1994 120:12 12 1:2 124:16 45 70:3 212:7 12 146:2 151:25 152:3 127:13 128:4,16 131:3 46 3:9 182:3 204:19 212:7 1995 4:25 47 59:22 61:21 120 28:14,15,16 30:12 1997 1:13 38:12 55:14 48 59:22 120s 30:12 56:5 113:14 134:13 480 88:9 124 3:11 156:5 173:11 194:20 49 144:11 127 3:12 217:6 220:19 221:22 13 3:15 146:3 159:1,3,9 -5- 182:3 204:22 212:7 -2- 13.4 146:2 131 3:13 2-rw. g 5 3:11 50 6:8 137:6 165:6 186:9 501(c 159:11,23 508 180:12 53.6 147:5 599 1:12 108:15 5:20 208:11 215:17 5:30 215:17 -6- 6-f 5933 60 6:8 600 88:8 69 60:9 7 : 70 101:8 75th 178:20 -8- 80 -MFF 80s 104:6 9 9 3:1 9.9 146:2 90's 137:23 97 73:11 184:9 -A- Aability 99:20 able 20:15 21:7,11 36:6 96:21 149:14 above-styled 221:8 abreast 210:17 absence 41:8 84:2 144:2 absolute 81:9 absolutely 75:3 101:11 152:13 179:15 181:5 213:4 absorption 193:5 abstract 135:21 absurd 99:12 169:21,22 170:1,5 Academy 169:11 accept 80:10 103:8 105:12, 21 109:19,21 133:12 142:15 157:14 164:11 194:12 201:11 216:11,14, 24 217:6 acceptance 207:10 accepted 79:8 accepts 65:16 212:23 access 138:13,22 accommodate 128:22 129:10 accommodated 79:23 80:15 108:11 accommodation 108:2,4 119:24 120:5,18,20,21 121:1 124:4 126:17 127:11,18,19 128:7 129:7 WORD INDEX $100 - accommodatic 51601 8364
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ANDREW SCHINDLER 130:18 accomplished 167:3 172:14 according 24:17_72:19 146:10,24 147:3,7 213:18 accordingly 151:18 accountability 7:22 accountable 8:1,5 accounts 149:7 accuracy 146:5 accurate 23:20 24:9 38:15 80:11 accurately 51:25 52:18,21 194:16 achieved 144:19 176:15 achievement 9:15 acted 27:23 acting 28:6 213:2 action 75:17 93:13 195:1 221:18,19 active 72:3,5 127:13 169:16 activity 7:5 acts 89:15 actual 30:21 47:17 ad 33:4 45:18 46:1 100:8, 23,23 111:2,20 112:2,4,9, 16 113:13 114:15,21,22 115:6 116:7,9,15 119:21 120:1,7,9,11,22,23 121:2, 6,7,8,10,12,16,19 122:3, 13,23,24 123:22 124:1,17 125:1,5,13,21 126:5,6,8, 10,10,13,23 127:5 128:2, 4,14,18 129:20,24 130:4, 14,16,17,23 131:16,17,23 132:4,5,23,24 133:3,11, 13,16 134:6,7 178:2 184:4 ad's 130:18 ADA 211:4 addicted 185:19 186:16 187:9 addiction 87:25 89:10,12, 18,21,23,25 90:5,7,7 91:10 211:16 addictive 89:7 90:10,24 91:11,14,16,18 93:6 186:16 210:24 211:25 addition 57:7 address 4:16,17 28:8,9 29:12,22 39:22,25 49:23 174:20 addressed 53:9,19,20 174:25 administered 172:1 administering 193:7 administration 193:14 200:14 218:1,3 administrative 176:20 200:23 admission 106:12 admit 28:23 admitted 93:5 106:15 adopt 129:4 ads 32:24 65:9 100:7 114:9 119:25 120:5,13, 16,18,20 126:1 127:13,19 128:5,17 129:4,9,12 179:10 adult,W:20,24 64:4 65:7, 13,23 66:21 69:1,20,22, 25 135:25 136:13 137:3, 4 138:4,7,19,20 139:6,20 140:19 142:5 146:13 149:3,9 207:7 adults 124 :10 140:1 145:24 149:12,19 180:24 adversarial 218:4 adverse 210:8 advertised 50:4 advertisement 33:1 advertisements 32:20 advertising 8:3,6,8 10:22 11:7,16,20 12:7 32:23 33:6 81:19 95:20,23 97:7 100:11 101:3,5,12 124:15 179:18 180:6,9 183:8,25 198:5 208:20 advice 36:21 159:22 187:8 advisory 55:8 57:2,17 74:10,13 172:21 African 145:14 205:2,20,25 206:2 age 16:16,16 20:3,3 21:6 60:8 61:21 68:7,14,24 69:3,25 70:13,16 104:3,4 137:10,12 139:23,24 146:1,2,3,3 147:3,4,5 150:9 177:17,25 178:5,6, 7 180:7,15,20,21 181:4,8, 13,20 205:16 207:19 208:6 219:9 agencies 79:1 80:6 84:16 Agency 76:19 77:15 78:14 79:14 169:15 Agency's 214:9 agenda 108:19 agent 109:20 Ages 67:17 ago 31:14 35:9 38:22 45:12 46:20 52:16 61:25 62:6 66:23 83:10 97:4 110:10,11 129:21 133:24 134:1 152:10 169:8 196:24 199:25 200:1 202:22 205:8 208:1 212:8 agree 26:13,14,19 53:18,23 54:8 65:15 77:22. 80:16 85:7,16 96:5 97:13 113:3 117:3 118:25 121:6 122:23 124:14 126:4,12 128:14 129:23 130:13 131:2 132:11 136:19,24 137:15,16 138:1,9,15,16, 22 140:5,7,22 150:23 152:18 155:19 179:9 180:8 193:9 198:17,22,25 209:9 216:24 agreed 177:4 agreeing 81:25 agrees 113:10 ahead 8:16 9:3 10:1 11:14 14:17.22:24 27:13 32:13 37:13 43:1 45:24 47:1 52:3 54:6,15 57:14 58:11 65:6 71:14 79:12 83:3 86:13 91:8 99:3 109:7 113:21 119:6,7 121:18 130:9 136:10 141:11 146:17 148:22 150:2 165:16 171:15 175:14,23 195:15 213:10 216:19 Air 15:22 airline 75:25 airlines 78:25 alcoho170:13 103:24 allegations 201:12 allocate 57:21 allow 124:10 153:20 almost 17:9 65:11 137:9 alone 117:2 119:1 along 15 :22 100:7 112:21 120:2 149:2 although 86:5 always 21: 25 165 :12 196 : 5 217:14,15 America 194:12 216:10 American 21:14,19 28:22 38:12,17 39:11 40:8 53:8,15 54:1,10 121:9 167:7 168:13 170:13,16 171:13 205:2,25 210:5 212:21 213:6,15 216:3 Americans 125:11 145:14 205:20 206:2 214:20 Amherst 153:1 among 57:5 128:22 129:10 139:5 180:24 184:8 207:11 amount 29:7 56:21 97:11 98:5 156:1 166:22 amounts 66:6 amputations 60:21 Analysis 140:18 ANDREW 1:16 3:4 4:2,17 66:20 154:8 221:7 Andy 35:25 60:14 111:12 131:24 187:21 Angeles 107:21 animaLs 156:11 anniversary 178:21 Annoys 127:2 answers 94:10,11 118:5,6 170:14 189:21,24 190:3 anti's 202:23 anti-smoking 166:23 anybody's 44:4 anyone's 187:8 apparently 98:11 141:25 146:25 189:18 appeal 101:19,20 141:2 appear 147:19 163:3,11 195:3 APPEARANCES 2:1 appeared 50:2 120:11 122:20 128:2,11 132:4 appears 22:17 125:3 136:13 147:7 Appendix 139:22 145:19,20 Applebaum 1:19 221:4,25 applies 91:17 appreciate 51:7 158:20 approaches 128:22 ap p roval 125 : 24 163 :17 approved 125:23 approximately 20:3,10,11 97:11 153:14 April 1:13 55:13 156:4,5 173:11 194:20 196:20,23. 24 217:6 221:22 area 30:6 31:17 182:12 areas 54:17 79:15,24 149:11 162:3 argued 166:23 argument 171:1,4 argumentative 179:21 218:14 arm 185:16,18 arms 185:11 around 7:9 30:4,16 43:21 57:4 68:19 75:12,18 90:22 106:13 108:18 110:17 156:23 172:24 175:6 array 90:10 article 26:25 27:17,18 90:4 107:16 aside 11:20 assert 70:10 as.sessment 76:2 130:25 assignment 149:7 associated 29:13 40:2 51:5, 15 54:19,25 58:15 64:6 65:12 66:10,13 68:13 70:5 85:23 104:14 154:3, 11,15,22 172:6 180:9 194:23 association 157:21,22,24 158:2,5,9,20,24 159:12 160:19,23,25 161:11,18 212:22 213:7,15 assume 9:12 11:3 63:10,20 75:15,21 82:18 97:6 99:13 109:1 112:24 118:12 125:20 149:22 164:24 169:19 185:4,14 195:24 212:13 as.suming5:2 40:18 53:14 assumptions 109:5 203:14 attached 149:6 attack 186:12 attacks 119:9,13,22 161:12 162:13,19 190:19 attempt 69:23 101:20 115:13 142:19 181:1 attempted 202:22 attempting 115:11 attendant 75:16,19,19 195:1 attention 158:17 206:15 attorney 221:16,17 attorneys 195:17 attract 197:19 199:2 attracted 15:7 100:8 attractions 197:15 attractive 180:11 attribute 10:20,23 11:17 WORD INDEX 51601 8365 accomplished - attribul
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ANDREW SCHINDLER attributes 13:20 Augsburg 168:22 August 1200.12 author 175:2 199:15 204:7 214:16 authored 136:22 authority 125:24 authorization 163:5,12 164:1,5,7 available 179:12 Avenue 1:12 average 7:3 13:10 130:19 183:15 avoid 124:1 aware 14:10 29:3 65:8,9, 10,11 66:12 78:3 151:12 153:9 158:7 164:23 away 17:12 60:8 74:8,9 140:1 awhile 10:9 20:6 68:1 162:7 -B- Babe 13 :7 back 17:5,9 27:16 37:4,7 39:7,9 46:1 48:19 57:11 61:24 67:7 69:13 88:22 89:11 103:19 111:6,13 118:18 130:12 144:9 146:12 153:13 160:16 170:10,11 171:18 172:10 182:24 188:4,5 191:3 194:2 199:8 210:7 212:5 215:23 backdoor 115:14 background 7:11 105:17 - 144:7 160:2 backs 121:13 125:12 126:6,14 127:15 BACON 2:12 bad 16:1 184:10,14 ball 198:24 ban 78:24 167:11 banned 77:17,25 78:24 80:7 108:7 banning 107:22 115:11 bans 107:25 108:5 base 15:24 baseball 160:14 based 40:13 71:25 106:25 107:3,3 149:22 159:21 182:1 188:20 198:18 215:16 219:3 basic 54:24 55:1,6,7,9,12, 19 56:1,24 156:20 172:5 216:12,25 217:7 Basically 19:25 20:8,9 154:18 180:23 basis 13:8,14 14:2,19 72:21,22 76:1 112:13 ' 127:18 bear 102:23 became 9:18 15:11 68:5 75:18 100:11 106:12 144:21 155:24 165:13 187:23,25 188:1 become 21:3 67:4 68:2,14, 18 169:20 183:23 204:22 205 &13 206:10 218:4 becoming 144:5 began 5:6 83:9 181:22 begin 5:5 87:6 146:2,3 147:4 178:11 beginning 83:2 128:11 144:13 149:5 175:11 begin.s 153:18 behalf 2:7,9,11,13 4:3 156:24 behavior 100:18,22 142:20 186:19 194:23 behind 8:22 belief 27:24 29:10 107:5 beliefs 201:6 believe 9:17 11:24 12:5 16:8,11 22:5 23:11,14,19 24:1,11,12 27:21,22 28:3, 7 30:11,16 32:22 33:5,6 37:19 38:2 39:10,19 40:21 41:18,24 43:17 48:19,21 50:17 51:2,11, 13 52:17 58:13,23 65:25 66:2,4 70:11 71:16,20,20, 23 72:1 73:9 74:11 76:12 77:9,12,19 84:7 90:10 91:25 92:13 100:14,16 105:25 106:3, 23,24 107:3,6 112:18 113:24 119:8,21 120:8 131:9 132:17 133:5,18 150:20 151:5 154:5,24 155:15,20 157:11,18,19 160:25 165:25 166:3 171:24 176:17,18 179:24 180:1 183:25 184:10,22 185:12 187:3,8 188:23 190:11 194:21 200:15 202:9 206:22 211:14 217:21;22,24,25 believed 154:13 believes 40:1 93 :15 185 : 2, 17 186:22 bell 107:18 belt 74:20 Bennett 106:12 . BENSON 2:10 142:14 best 16:13 18:22 99:14,19 165:10 215:21 bet 174:23 better 11:23 35:2 38:2 68:13 111:14 143:5 190:1 198:8 beyond 56:13 77:3 bill 170:16 billboard 100: 15 billboards 11:8 179:10 billion 28:14,15,16 88:8 billions 21:18 28:11,22 40:7 164:16 birth 140:3 bit 6:4 156:17 200:6 bits 208:1 bizarre 199:16 200:3,9 black 1.40:19,25 205:13,15 blacks 140:20 142:4 144:20 145:7 204:22 bUnd 12:19 13:1,4,8,14 14:2,19 blindfold 12:11 blindfolded 12:15 13:10 14:13,14 board 55:8 57:2,17 74:10 172:21 body 193:7,11,11,15 bogus 175:5,11 bomb 169:6 bombed 169:4 203:5 border 15:23 both 11:18 12:5,8 37:12 42:12 67:23 108:2,10 116:14 159:17 bottom 50:17 91:15 140:16 141:21 172:14 194:7 201:17 207:9 216:10 bought100:10 boys 144:22 brand 5:16,23,24 6:10,13, 16,16,18,20,21 7:7 8:6 9:6,18,22 10:7,9 12:9,22, 23 13:24 19:16,23,24 20:4 34:11,13 101:14,14, 18,19 136:1,14 137:5,11 145:6 153:21 178:21 207:8 208:22,22 brand's 11:18 brands 5:14,15 6:1,7 8:3, 21,23 9:4 10:5 81:15 95:25,25 96:12,12,20 97:2,8,12,25 98:7 101:15 110:16 137:7,24 174:2 177:6,7 205:23 207:13 209:1,2 break 44:10 45:15 46:13, 15,18 89:17 92:18 94:21 130:8 131:9 134:16,18 135:16 173:22 192:13 215:9,12,21,25 breathing 214:21 breifings 72:17 briefly 45 :9 123 : 6 174 : 21 bring 148:20 178:4 British 89:22 90:1 184:23 185:1 broad 56:8 91:9 98:15 209:16 211:13 broadly 98:11 115:13 Broin 75:15,16 194:25 195:23 Broin's 76:9 bronchitis 190:6 brought 35:11 75:17 BROWARD 221:3,21 brown 106:20 189:18,25 191:5,16 budget 101:12 budgets 143:22 Buerger's 59:24 185:5,9 building 108:7,12,13,14,16, 20,24 109:5,12 180:3 buildings 77:16,24 78:5,24 80:7 107:23 built-in 197:15 bullet 138:1 bunch 92:5 burglary 89:16 burn 110:21 Burrows 133:22,23 135:15 140:9 business 4:16,17 9:10 77:6 93:1 139:4 144:6 157:23, 25 162:9,15 178:22,24 183:3,7,12 188:12 196:13 199:14 201:15 202:7,8 204:23 205:14 209:19 211:11 216:13 217:2,9 219:14 businesses 172:22 Butler 188:24 191:8 buy 68:14 89:15 180:2 -C- cabins caffeine 74:3 89:22 91:12 calculations 130:24 California 142:2 call 71:1,11 87:20 96:1 117:9 120:4 152:14 162:2 171:5 called 4:3 44:25 45:19 59:24 107:17 110:24 134:25 162:4 170:23,25 171:3 196:12 221:7 calling 117:7 118:2 calls 99:13 116:23 Calvary 15:22 Cambodian 15:23 came 48:25 49:3,19 59:11 74:14 77:23 104:18 136:22 138:25 155:23 188:24 191:12 212:13 Camel 5:17 10: 8,16 14 :15 96:4 101:18 110:9 178:11,19 179:9,11,17 180:6,9,17 181:21 182:4, 7,10 183:5,8,16 184:8 219:8 Camels 19:25 81:15 83:19 88:3 167:16,22,24 173:12 181:21,24 183:24 camera 4:8 campaign 10:24 121:2 124:15 128:15 178:11,19, 20 179:10,18 180:10,17, 23 181:21 182:7 184:8 campaigns 142:14 180:25 cancer 21:19 22:1 23:18 24:8,16 25:2,4,11,18,23 26:16 27:6 28:23 34:9 38:15 41:4,17,20,23 42:6, 9 55:4,10,12,19 56:1,5,9, 17,18,21,25 57:8,20,24 58:8,15,22,25 64:10,11, 15,15,25 65:17,20 70:22 71:12,17,25 75:2,20,23 76:8,9 83:20 93:6 101:22,25 102:3,14,14,15, 19 104:5,10,18,25 105:1, WORD INDEX attributes - canc - 51601 8366
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ANDREW SCHINDLER 5,10,22 106:16 109:14, 16,21 110:6,8 155:10 157:15 162:16,164:14 165:10,12 167:7 169:17, 18 170:3,5,18 172:11 173:12 190:5 210:5 212:25 213:1 214:20 218:7,17 219:1,4 cancers 55:11 candy 153:21 capable 56:1 64:7 65:13 116:23 capacity 209:10 car 114:16 Caravan 162:5 carcinogen 72:20 73:4 76:22 214:19 cardiovascular 190:6 care 34:11 career 7:13 20:8 careful 60:14 carefully 48:5,9 149:4 Carolina 4:18 77:13 135:2 carried 213:19 Carrot 89:25 carrots 89:23 90:2 carry 165:7 cars 114:16 Carter 217:25 218:3 cartons 81:19 cartoon 179:22 ca.se 9:23 49:8 73:11 102:1,21 105:9 110:19 112:24 151:13,24 166:4 188:24 191:8 194:25 195:9,16,20,22,23 category 56:9 99:1 122:24 causality 156:9,12 causation 25:17 103:1 105:18 cause 1:22 22:7,13 23:1,2, 9 24:3,13 25:24 26:1,4, 21,23 28:4,23 39:15,20 40:9,21,24 41:11 42:6,11 51:3,15,23 52:10 53:3 54:13 57:23 58:7,17,18, 21 60:21 64:10,10,15,25 66:2 70:22 71:11,24 83:20 93:6 101:24 102:2, 13,14 103:8 104:10,25 105:9,12 106:1 113:7 131:6 154:1,6,10,14,21 155:3,9 156:14 164:14 165:2,9,12 169:16,17 170:4,18 172:11 173:12 180:20 184:13 185:13 190:5,11 194:22 221:8 caused 17:7 18:12 75:24 76:9 102:19 104:15 105:22 155:1 185:12 214:20 219:5 causes 21:19 22:1 23:6,13, 18,22 24:8 25:18 26:16 27:6 38:14 41:16,20,23 42:9 54:3 55:4,10,19 56:1,5,17,18,21,25 57:8, 20 64:14 65:17 71:17 75:2 80:18 101:22 105:5 106:16 109:14,16,21 110:0,$ 113:1 132:14,18 134:10 154:1,1 0,14,21 157:15 162:16 170:3 183:25 190:9,10 212:25 213:1 218:17 causing 210:6 center 142:1 CEO 4:21 28:21 40:6 44:14 52:1,22 81:4 82:22 106:14 144:5 211:18 217:12 CEOs 106:19 certainly 9:6 11:3 15:20 21:4 49:8 56:2 66:7 70:9,20 106:18 134:8 143:25 144:7 149:22 155:7 185:23 204:24 205:6 210:16 212:11 213:21 CERTIFICATE 221:1 certify 221:6,15 cetera 197:18 chairman 184:23 185:1 challenge 112:23 chance 130:2 141:8 change 139:10 165:4 186:18 changes 215:16 character 92:5 characterization 70:15 97:15 120:7 121:15 characterized 40:22 41:12 94:7 characterizes 158:8 159:10 160:19 161:10 characterizing 162:25 characters 179:11,22 Chattanooga 168:11,16,21- check 52:6 cheese 170:19 171:21 chemicals 110:22 chief 5:3 125:19 child 218:24 child's 219:7 children 63:22 67:11 218:6 children's 153:21 China 206:16,17 207:3 chocolate 90:5 choice 35:18 65:23 66:11, 11 67:22,22 69:25 101:18,19 163:11 cholesterol 186:9 187:6 choose 65:23 69:1 163:13 187:7 chronic 154:2,10,14,22 Chung-King 179:3 cigar 19:21 cigarette 14:20 19:5 23:8 24:1,8 25:7,20 26:3,16 29:16 30:13 37:20 39:13 40:20 41:10 42:5,8 45:1, 19,21 46:20 48:4,12 49:9,19 50:2,10 51:22 52:9 53:1,7,9,20 54:3 57:10,23 58:7,14,21,25 64:25 65:17 73:25 76:7, 13,15 80:17 82:5 83:11 89:6_ QL•21 95:4 101:22 102:13,19 105:4,22 106:15 107:23 109:17 110:23 113:6 114:19 115:3,12 116:3 122:4 127:2 130:23 134:9 154:6,25 157:15 164:14 165:2,9 167:15,17 170:12,17 184:25 185:12 193:8 194:22 202:18 204:23 205:14 212:25 216:8 cigarettes 6: 24 12: 24 13 :17 14:13 20:24 21:13,18 22:7,13,17,25 24:11 26:21 27:21 28:1,12,16, 22 29:10,23 30:1,6,8 31:10,13 33:19 38:14 39:20 40:7 42:14 43:4,4 51:3 54:13 65:11 66:1 68:9,20 71:7 81:19 82:10,20,24 83:18 88:9 90:10 91:11,11,15 100:10 104:11,19 105:3,25 110:9 119:18 141:1 150:8,9 153:22 156:13 164:16 165:11,23 166:16 167:9 174:2 186:23 193:10 201:19 208:5 210:6 219:3 CIRCUIT 1:1 circuits 144:21 circulation 59:16 60:5 circulatory 185:9 circumference 30:12 circumstance 17:17,18 19:8 151:6 circumstances 15:6 17:13 19:3 cirrhosis 103:4,8,21 cite 115:25 citizens 44:23 City 107:21,21,21 221:21 claim 215:7 claiming 194: 10 claims 194:13 clarify 55:21 150:13 Class 72:20 73:4 75:16 76:22 185:5 195:1 214:19 classifying 149:19 Claude 176:8,13 196:21 201:22 clean 111:10,16 114:1,4,10 clear 51:16 80:4 118:10 130:20 147:21 164:7 175:13 185:13 219:12,14 clearance 163:1 clearly 26:19 214:18 climate 198:5 clinker 160:6 close 149:10 206:13 closed 112:24 closely 217:15,19 cocaine 89:13 91:12 115:12 coexistence 121:23 coincidence 106:19 cold 16:1,3 17:6,10,11,12 18:11 62:22 collaborative 33:21 collectively 72:23 colleges 149:11 column 50:16 51:17 123:5 216:11 combination 25:14 combustion 110:23 come 11:9 48:11,14,17 63:6,13,14,17 69:19 78:11,12 79:3,7 95:13 98:5,15,25 102:23 105:7 114:18 115:2 116:3 118:18 122:3 124:10,10 146:24 159:17 165:22 195:19 210:7 comedy 144:21 comes 71:8 161:14 209:12 210:23 218:8 comfortable 29:9,11 comment 45:10,25 193:14 commenting 153:19 comments 67:10 Commic.s.sion 180:16 commitment 138:6,10 186:25 187:1,4 committed 89:18 Committee 54:12 155:24 committing 46:7 common 103:2 104:9 127:17 180:19 192:5 commonly 162:12 190:3 communicate 161:24 162:1 communicated 162:11 communicating 8:7 190:17 communication 162:22 communities 44:22 78:5,15 157:10,14 community 26:15,15,17,18 29:22 40:1 43:18 56:20 157:18 165:22 166:15 companies 5:12 33:17 76:20 77:5 84:4 97:12 137:7 156:24 Compactp 5:4,6,13 8:1 14:12 16:11,11 18:4 26:9 27:23 28:5,12,21 29:12 31:11 39:21 40:7 42:13 44:14 49:1,2 50:11,24 51:12 52:2,23 56:24 76:18 79:14 82:22 92:21 93:2 106:14 107:1,24 111:2 113:5 123:22 125:18,20 131:3,4,17 133:25 135:2 136:1,14 137:5 139:1 144:8 148:1 149:23 150:7,14,17,18,19, 21 151:5,9,10,13,15,17, 19,21 152:25 153:8,19,20 162:4,10 163:6,15,17,25 164:4,22 166:17 167:6 172:3 174:12 176:6,16 177:11,17 178:17,18 179:6,7 181:7 187:22 WORD INDEX cancers - Compar - 51601 8367
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ANDREW SCHINDLER 188:6,23 190:19 191:8,12 194:14,19 195:10 200:5, 13 201:25-202:4,11 203:25 204:7 208:9 211:19,21,22 212:7,11,14, 18 213:21 214:8 217:18 219:13 company's 26:7 121:20 Compared 5:22 competent 29:6 94:20 competitive 8:4 20:1 96:11,20 97:25 101:16,20 competitors 95:24 complete 91:2,5 completely 20:10 200:9 complicate 21:20 22:2 complications 61:9 comply 82:3,12 components 11:18 comprehensive 11:15 comprise 142:5 concede 110:6 116:12 conceivable 100:25 concept 8:10 99:11 140:8 concepts 188:10 concern 51:24 52:11 216:2 concerned 52:15 81:8,8 82:19 85:22 concerns 86:2 concerted 29:24 conclude 112:25 concluded 74:22 79:1,15 169:16 180:18 219:20 concluding 104:17 Conclusion 55:20 136:23 164:25 conclusions 55:14 137:19 condition 59:24 61:6 185:10 conditions 119:19 conducted 12:11 14:11 conference 74:11,14 confident 180:4 confirm 4:7 42:1 141:17 147:1 156:8 confirmative 41:9 confirmed 198:13 214:13 confused 64:18 136:2,11 170:7 confusing 28:18 Congress 22:8,9,10 23:5 167:10 214:24 Congressional 74 :21 2l 4 :22 connected 221:18 conscience 219:12,14 consensus 26:14 30:7 33:18 34:1 consequences 32:4 85:9,12 163:20 186:19 consider 49:9,12 69:25 85:22 96:20 154:19 155:9 consideration 216:13 217:1, 8 considered 132:14,15 considering 183:7 consisting 188:22 I conspiracy 173:5,9,16 constant 18:1 19:24 constoUte 221:12 constructive 167:23 consultation 195:17,21,25 consumed 103:5 consumer 8:1 28:22 31:21 32:1,7 40:8 42:20 172:15 consumers 43:7 44:20 consumption 103:24 186:10 contain 202:19 contained 201:19 contains 34:25 133:13 content 116:9 143:21 contents 194:7 context 23:12 39:12 116:17 119:9,22 161:18 208:23 continually 43:20 65:10 119:9 continue 105:2 137:6 156:17 167 :1 186:12, 20 205:3 206:10 219:14 continued 60:21 73:7 74:8 186:1 215:2 continues 157:18 continuing 85:10 142:1 172:4 continuous 5:8,11 19:11 continuously 15:12 contrary 113:2 180:18 control 36:14 57:18,18 69:3 89:14 124:12 173:1 controlled 41:1 controversial 213:3 controversy 26:17 49:11 112:11 convenience 197:18 conventional 180:18 convince 8:4 197:25 convinced 109:2 164:16 165:14 169:20 170:2 cool 179:11 cooperate 217:15,18,21 cooperative 29:21 166:25 cop 116:1 copied 125:2 143:2 copies 114:4 148:21 l 75:5 192:13,14 copy 47:17 111:14 114:1, 10 122:6,8,8 123:11 135:5,11 148:5,6,18 152:5 175:11 189:10 192:2 core 200:25 corporate 44:22 corporation 44:23 correctly 137:13 147:6 190:13 207:16 correlate 115:12 correlations 115:11 cost 85:13 197:18 cottage 170:19 171:21 cough 62:22 Council 54:21,23 55:2 56:23 57:1,16 107:21,22 155:25 158:4,7 159:9 160:18,24 161:10,16 172:1,13,20 date 48:19,20 122:20 counsel 176:22 195:8 132:8 135:18 196:18.22 221:16,17 221:14 Counselor 118:12 dated 147:25 152:22 176:8 counter 73:25 203:21 countries 206:19 daughter 67:14 68:7 70:13 Country 10:25 11:2 27:2 57:4 66:5 77:24 82:7 86:9 106:13 124:11 172:25 173:6 213:20 COUNTY 1:2 221:3,21 couple 45:9 46:2,20,24 47:1 48:3 85:2 93:22 97:4 112:3 124:8 128:9 course 198:4 COURT 1:1 77:3,12 courtesy 192:5,8 Courtesy's 192:9 cover 147:17 covered 66:7 cowboy 11:4 cowboys 11:8 CPW 149:8 Cream 179:3 create 28:9 33:17 83:6 84:8 139:9 created 22:5 82:2,12 84:4 218:24 creating 164:21 criminalization 115:21 Critic 107:17 critical 135:25 136:14 137:4 138:4 criticize 209:14 criticiz,:d 202:23 203:3 critics 201:12 ' cross-examination 170:24 171:6 crossed 210:19 Crucial 196:13 CTR 156:18 Cuban 141:6,19,23 culpa 152:14 culture 100:17 cumulative 73:1 curious 63:10 current 101:17 146:1 210:17 currently 197:21 customer 95:5 140:23 customers 198:10 customers' 166:13 cut 59:20 123:4 125:2 126:10 -D- dad : DADE 1:2 danger 79:2,9 80:3,9 dangerous 79:16 dangers 129:24 dark 110:21 dash 205:18 data 38:8 66:6 71:25 73:21,22,22 74:8,23 207:25 88:12,13 daughter's 70:10 daughters 67:16 70:9 DAVID 2:15 day 17:3,16,18 19:15 59:10,21 61:4,21 63:11, 12 83:23 87:25 88:1,18 90:6 92:13 102:3 104:4, 14 105:10 218:16 219:8 220:19 221:22 days 33:21 93:21 deal 84:15 dealing 57:7 deals 91:6 dealt 82:6 83:12 151:18 death 165:10,12 170:3,5 210:6 deaths 214:20 debatable 213:3 Debate 111:1 163:3 debated 166:22 decide 57:5 83:15 85:23 100:23,24 decided 15:14 18:13 62:19 195:25 decision 36:17 63:7 64:7 66:21 68:12 69:1,2,22 79:18 81:5 95:3 100:14, 17 108:10 186:25 195:18 decision-making 36:15 decisions 63:21 65:14 124:11 195:7 decisive 81:5 declared 74:3 decline 137:5 140:2 dedicated 138:7 deep 51:24 52:11 defendant 195:10 221:8 Defendant/B 2:9 Defendant/Liggett 2:11 Defendant/Lorillard 2:13 Defendgttt/RJ 2:7 Defense 78:1,25 80:5 define 7:24 119:16 definitely 102:15 definition 71:2 87:23 91:10 definitive 38:9 49:5 degree 9:11 30:10 43:21 79:18 86:3 deliberately 116:19 117:13 118:10 197:22 deliver 29:25 44:21 delivery 197:17 demanding 192;4 demonstrate 76:7 denoting 149:8 Department 78:2,25 80:6 135:1 146:11,22 152:24 153:13 203:21 depending 6:25 7:8 163:8 Depends 7:4 211:3 WORD INDEX company's - Depen, ' 51601 8368
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ANDREW SCHINDLER DEPOSITION 1:16,22 39:25 53:1 93:19 94:4,8 97:3 108:44 1_13:9 _ 152:17 184:2 188:24 191:7 219:3,11,19 221:7, 13 depositions 94:3 depositon 22l :10 derive 173:3 describe 20:18 88:15 described 27:18,20 61:13 66:15 83:13 115:9 205:13 213:16 214:2 describing 205:22 description 206:2 design 29:25 31:10 designed 35:10 179:13 desire 92:14 195:9 197:21, 24 desperate 89:15 despite 153:24 Desserts 179:4 detail21:1,5 60:6 detailed 122:12 details 212: 10 determination 91:22 determine 42:13 96:13,17 157:6 determined 26:2 33:25 51:16 155:16 develop 128:21 188:9 developed 75:20 140:9 168:6 185:8 203:3 developing 137:24 181:7 development 107:5 135:1 166:20 176:14,19 177:5 181:11,13 187:23,25 188:2 194:5 197:7 199:22 200:11,15,21 210:15 develops 73:14 104:4 devoted 97:24 101:16 diagnosed 59:16,24 dialog 39:2 120:2 Diane 133:22,23 134:1 135:15 136:22 137:18 138:11,14,23 140:9 Diane's 134:3 Dick 59:18 die 61:5 95:22 died 61:8,10,11 219:8 dies 218:7 diesel 73:18 diet 24:20 25:13 56:12 104:8 186:11 difference 8:7 14:13 32:9 differences 127:20 different 11:25 27:11 32:18 39:17 72:3 80:1 93:20 130:20 139:14 140:24 162 : 3 ,6 186:7 209:19,20 differentiate 43:3 differently 205:24 difficult 48:24 99:10 181:15 difficulty 20:16 21:7,11 61:23 87:17,20,22,23 88:4,15 digitskj,$9:14 DIRECT 4:14 7:21 36:2 51:7,8,8 52:4 58:5 86:7 90:22 213:4,5,14 directed 89:3 96:10 101:10,13 115:21 128:18 179:18 direction 71:22 73:16 80:21,24 131:10 165:4 215:5 directly 37:11 198:12 209:13 director 176:18,21 178:25 188:1 200:10,13,14,20,25 directors 194:3 disagree 41:15 112:5,9,14 138:16,22 disagreeing 76:1 disagrees 113: 10 disbanded 218:2 discern 79:20 discipline 41:8 discount 6:1,6,10,13,16 7:6 discounting 7:1,5 8:8 discourse 36:20 discover 198:2 discovered 150:17 151:22 discreet 83:13 discuss 68:4 102:25 discussed 58:3,13 74:6 121:22 122:24 135:16 207:21 208:6 discussing 29:5,7 94:22 97:7 107:22 113:8 207:18 discussion 67:21 68:15 72:17 94:2 discussions 40:13 106:25 107:4 disease 21:20 22:2 23:19 27:5 28:24 34:10 40:9 51:24 52:10 53:3 54:3,13 57:20 59:25 70:23 71:12 74:3 80:18 113:1 131:6 132:14,19 134:10 154:2 165:3 185:6,9 190:6 210:6 218:25 diseases 22:7,13 23:1,2,3,7, 9,10,21,22 24:2,3,12,13 25:11,16,23,24 26:4,21, 23,23 28:4 29:11 39:14, 15,20 40: 21 41:11 51:4, 4,15 53:2 54:25 55:4 58:15,20 66:1 72:7 75:12 106:2 113:8 131:11 133:20 154:2,6,10,14,22 155:1 156:10,14 157:7,16 172:5 173:7 185:24 194:22,24 219:5 disowning 133:10 displeased 67:3 dispute 146:20 147:1 183:14 disrupts 39:1 distinction 116:24 distinguish 12:16 distributed 57:19 162:22 Divisionl5 : 22 148 :1 150: 6 151:9 179:7 divisions 107:2 doctor 59:15,16,17,17,23 60:12,20 61:13,18,21 66:15 86:7,9,24,25 87:2, 10 102:20 103:20 184:25 185:14,18 186:8 218:10 doct or's 60: 3 186 :18 187 : 8 doctors 29:1,4 66:5 75:21 86:8,14,18 87:14 155:8 185:11,13 document 44:25 45:2,6,13 46:1,9 48:4 49:13 50:8 52:19 53:6,12,24 54:1,8 111:17 114:12 123:18 124:21 126:21 127:24 129:16 131:21 134:21,24 135:4 138:12 140:11 141:18 146:13 147:11,19 152:2,9 159:2 174:6,9 175:1,2,8,17,19 176:4 177:3,4 187:14 188:18,22 189:4,19 191:23 193:18, 20 196:9,11,15 199:23 202:6 203:11,14,19 207:23 208:9 documentary 158:18 documents 49:10,16 doesn't 13:13 23:10 25:19 32:3 40:9,21 41:12,22 52:23 64:15 65:2,4,18 67:19 76:13 82:10 83:24 86:22 90:15 104:25 109:18 118:6 123:11 142:23 154:8 170:18 173:13 175:8 184:4,11 186:7 188:12,15 189:10 201:16 209:3 218:18 dollar 7:3 dollars 46:7 95:20 96:10 97:24 99:5 113:17 172:13 domestic 206:24 Don 188:1,1 done 7:22 10:11,13 13:1 14:19 28:1,5,7 29:12,15 34:7 39:21,24 40:3 55:24 72:1,23,25 74:1 76:6 102:9 110:2 117:20,21,21 122:18 149:1 152:6 158:23 165:9 166:7,12, 17,18,19 167:5,5,6,21,24 170:4 177:18 184:7 212:8 215:17,18 217:23, 24 Doral5:15,18,20 6:11,12, 15 7:6 8:12,22 11:23 dosage 197:14 doubt 86:23 down 35:11 68:10,21 73:8, 15 90:14 100:22 123:5 139:25 145:14 153:23 197:22 200:16 201:9 215:3 , Dr 187:17 192:21 198:19 201:3 draft 175:3,3,7,9 176:3,4, 22 177:1,4 drawn 116:2 drew 137:19 drinking 68:16 70:13 driven 92:14 215:2 driving 74:15 100:22 dropped 207:11 drove 100:7 drug 89:14 drugs 89:12 dthe 20:18 due 118:12 159:17 199:15 duly 4:4 221:9 duty 217:12 dwindle 140:4 -E- ea 47: 4 85:4 :1 earlier 33:21 39:24 51:2 52:7 61:19 106:25 131:8 140:16 155:23 160:22 181:10 184:2 216:20,21 217:3 early 59:19 137:23 166:20 218:7 easier 204:10 eating 186:13 Eclipse 19:23 28:2 166:21 167:12,14,21,22,24 169:6, 7 economy 142:2 edgy 88:17 editorial 212:22 213:6,15, 17 educate 198:14 Education 146:11 EDWARD 2:17 effect 155:9 185:13 effective 193:7,14 effectively 198:15 efficient 197:16 effort 29:21,24 30:5 33:16 166:25 Eight 129:14,17 Eighteen 177:14 elaborate 51:9 eliminate 79:24 eliminated 79:14 elimination 201:13 else's 161:20 eminent 57:3,17 172:2,23 173:2,5 empathy 185:23 emphasis 142:12,21 143:8, 15 emphysema 21:20 22:2 23:19 190:5 employed 5:10 145:5 employee 161:21,25 162:4, 8 163:1,10 190:17 191:4, 16,20 200:8 221:17 employees 44:16,19 79:19 107:1 153:14 162:1,11, WORD INDEX 516 01 8 3 6 9 DEPOSITION - employe,
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ANDREW SCHINDLER 17,18,22 189:25 190:18 employers 80:7 employment 5: $,11. _ . emulate 142:19 enable 198:12 encounter 60:2,12 61:12,21 66:24 67:8 70:8 end 27:10 37:2 41:1 83:6 84:21 92:13,24 113:2 118:7 122:7 124:13 134:10 136:15 138:8 144:23 145:20 149:19 172:8 174:14 188:11 201:15 217:25 ends 96:7,9 97:8 engage 117:7 139:10 181:7 engaged 100:21 157:23 engaging 114:21 115:4 117:4 119:2 England 27:1,19 Engle 185:5 enjoy 34:10 enlarge 47:21 enormous 94:22 enough 25:14 68:11 73:21 74:4 89:15 124:10 ensure 164:21 entire 150:13,19 180:17 200:4 entirely 27:11 69:21 108:7 119:4 137:9 entirety 53:24 entities 80:6 entitled 93:12 118:15 122:3 174:1 200:2 203:14 entity 107:20 108:12 159:11 210:21,25 entrepreneurial 144:17 environment 15:21 74:16 80:15 100:19 216:7 environmental 24:24 25:13 56:10 70:24 76:19 77:15 78:13 79:1,8 109:20 169:14 211:23 212:25 214:8,18 EPA 72:15,19,25 73:3,20, 24 74:9,13,23 76:6,21 77:23 78:4,8 210:4 214:18 215:7 epidemiological 44:1 215:6 epidemiology 25:7,21 71:21,23 72:6,9,22 73:14, 18 75:8,10 76:5 131:9 156:13 214:11,13,16 215:1,3 219:4 episode 61:14 66:14,19 equal 94:17 equals 98:6 equation 85:24 equivalent 41:19 42:8 130:23 ESQUIRE 2:4,6,15,17 essentially 17:6 35:21 40:14 50:10 73:1 106:21 110:9,12,15,18 121:7,12 127:15 130:17 142:8 202:21 establish 72:10 estab&ped 42:2 72:6 155:25 164:12 190:8 208:22,24 209:1,3 establishment 166:23 estimate 96:22 208:13 ethical 29:6 ethnic 142:13,21 143:8,15 ETS 70:24 72:8 73:4 76:16 evaluate 13:16 94:11 212:5 evaluated 119:17 evaluating 133:9 evaluations 214:24 even 32:11 37:1 51:23 52:9 73:12,23 87:6,21 96:21 98:12 99:6,11 105:7,11 124:6,7 159:25 166:25 178:6,7,9 181:12 207:21 212:9 214:14 215:3 219:7 event 205:12 eventually 140:3 187:24 201:14 everybody 146:7 166:4 everyone 9:7 212:23,23,23 Everywhere 125:11 evidence 27:6 40:8 76:12 102:22 113:2 132:18 133:6,19 134:8 169:15 evolved 142:13 exact 10:8 52:13 151:6 175:18 Exactly 12:21,25 26:1 42:1 43:10 61:9 88:16 133:25 exaggerated 129:25 exaggeration 115:5,8 EXAMINATION 4:14 examined 4:4 example 5:22 8:11 13:5,7 50:11 55:10,12 73:20 104:22 151:18 155:11 178:1 206:14 210:22 211:23 213:13 excellent 10:25 except 17:3 166:7 exception 212:24 excerpts 207:24 excessive 124:13 excluded 73:5 excretion 193:6 Excuse 76:11 executives 162:6 exercise 24:20 25:1,14 149:13 186:11 exercising 144:18 186:14 Exhibit 46:10,21,22 111:8, 18 114:12 122:25 123:9, 16,18 124:20,22 126:4, 19,21 127:22,24 128:4 129:13,16 131:21 134:7, 21 135:3 147:10,12,24 151:25 152:2,6 159:1,3,9 173:25 174:6,22 187:11, 14 188:25 189:4 191:22, 24 192:19 193:16,18,21 196:7,9 203:9,11 exist 80:21 82 :10 84 :10 175:8 - existed 84:18 165:24 existence 115:20 209:22 expect 163:16 expected 192:8 198:16 experience 14:6 21:5,9 86:6 88:11,21 experiment 101:23 expert 109:22 110:7 expertise 214:23 explain 7:12 60:20 99:9 ' 199:21 explaining 163:7 explanation 151:8 explore 54:12 exposed 41:5,5 129:19 exposure 75:24 76:15,16 100:18 109:20 130:20 216:4 express 66:25 expressed 30:15 50:9 57:10 106:22 129:9 205:19 219:10 expressing 128:20 extension 159:20 extra 189:1 extremely 115:10 eye 144:18 -F- . ace facilities 77:17 78:1 80:8 107:23 facility 108:2,8 fact 28:3,6 38:11 51:22 52:9 67:2,4 102:3 103:8 105:21 106:6,11 130:23 134:8 150:24 153:25 157:15 164:14 184:3,6 209:21 215:16 factor 23:1,9,11,21 24:2, 11,15 25:8,15,22 26:4,22 27:5,22 28:7 29:10,17,19 31: 4 3 8:16 3 9:14 4 0:10 , 24 41:11,25 51:3,14 53:2 58:14,19,23,24 65:1 66:1 72:6,11 73:16 76:8,14,17 102:2,15 103:13 104:16 105:1 113:22,23,24 131:11 133:20 137:4 156:14 170:18 172:11 194:23 219:4 factors 24:22,24 25:10,10, 15 56:11,11 218:16 fact.s 99:13 164:11 failure 203:6 fair 9:21 29:7 41:14 48:2, 7 49:18 50:9 81:23 108:5 120:6 121:15 129:3 144:4 145:4 156:4 205:19 fame 144:17 familiar 12:17 75:4 97:20, 22 120:19 125:13 143:21,23 familiarize 144:7 family 5:12 18:24 19:2 24:22 88:11 89:17 famous 144:21 fan 160:14 far 8:22 68:18 69:18 81:7, 8 82:19 93:2 112:25 .128:6,21 136:8 137:11 158:17 fashion 213:22 faster 205:16 fastest 204:20 fat 186:10,13 father.15:10 59:2,21 60:8, 21 61:5,12 66:14,19 88:13 185:7,25 187:2 218:9 father's 86:6 fault 174:24 209:15 212:15 fax 147:18 feasible 99:8 February 135:18 176:8 Federal 146:12 158:9 160:20 161:11 180:16 feel 51:6 55:25 92:10 153:20 183:22 feeling 75:1 90:11 fees 186:2 feet 59:21 Fellow 77:5 felt 35:8 77:19 154:25 212:19 females 205:3 206:8,10 few 6:4 45:11 46:2 201:20 215:19 tield 26:20 151:11 fifth 103 :5 153 :18 155 :15 fight 108:5 figure 140:25 165:25 175:18 188:13 207:18 figured 215:17 filed 1:22 76:20 files 158:9 filing 161:16 fiQing 161:14 finalized 176:23 finally 190:22 financial 210:8 financially 221:18 find 44 :9 100:25 113 :25 145:5 159:7 165:8 189:12 209:15 findings 78:13 183:15 214:17 fine 63:25,25 92:12 116:13 130:7 147:22 152:20 179:4 fingers 185:10,15 186:21, 23 finish 79:5 81:22 91:7 111:22,25 117:11 130:6 192:17 211:10 finished 60:15 79:6 fire 15:24 fired 151:3,4 164:1 202:1 firm 186:25 187:1 W ORD INDEX 51601 8370 employers - fin
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ANDREW SCHINDLER first 4:4 15:15,22 50:16 framework 122:23 135:24 136:6 158:22 Francisco 74:18 174:9,11 -475:8_ 190:4 Franlt,44:25 45:19,21 193:6 194:6 197:4 46:1Y47:17 48:4,12 203:22 216:10 217:13 49:9,18 50:2,9 52:5 53:6 fit 212:19 57:10 155:22 156:21 five 5:20 44:11 96:22 98:8 170:12 172:9 173:12 101:7 124:20,22 126:4 216:8 137:1,10 139:23 182:22 frankly 170:7 199:15 196:17 197:2,9 201:9 207:9 flavor 197:17 flight 75:16,18,19 195:1 floating 175:6 FLORIDA 1:2,21 38:24 221:2,6,22 frequently 90:6 focus 31:17 116:25 120:1 FRIEDMAN 2:10 178:1,4,5 friend 34:5 35:6,24,2 focused 4:8 36:13,18 37:8,19,24 folded 212:12 38:10 69:19 Follow 34:4 36:21 112:21 friend's 36:14 149:2 Friends 15:9,10 88:14 followed 78:9 100:19 following 33:12 189:23 front 106:13 147:24 follows 4:5 34:5 142:11 192:19 195:11 196:1 food 186:16,20 187:9 foods 178:17,18,22,23 179:7 211:11 Forbes 107:17 force 150:13 151:14 152:11,17 200:7 forced 71:4 Forecasts 203:14 foregoing 221:11 forget 11:19 98:1 118:17 160:15 forgot 39:3 form 8:14 9:25 11:13 14:16 27:12 32:10 34:17 36:8 37:12 38:19 40:15 42:25 57:13 64:2,17 69:6 70:1 76:3 78:19 79:11 84:1 86:12 87:12 103:14 105:6 107:13 109:6 113:19 115:21 121:17 128:9 142:22 149:25 162:22 165:15 169:24,25 171:19 172:16 176:24 179:20 185:21 190:20 197:14 199:4 210:1,10 213:8 formally 26:2 150:11 format 190:16 forms 82:6 161:14 Fort 221:21 forth 6:5 8:9 24:25 39:7 72:18 78:5 80:23 100:20 110:13 162:9 forums 163:7 found 13:2,4 212:15 four 18:21 20:11 21:10 123:16,19 134:1 182:21 189:14 Fourth 4:18 frame 10:19 62:12 79:22 framed 8:17 frames 10:5 free 35:22 124:12 freebies 179:13 180:9,10 freedom 163:10 freely 70:6 frequent 149:12 frequented 149:9 5 6 213:19 frontiers 90:4 frustration 118:21 FTC 33:3 80:22 FTC's 180:22 fulfill 188:10 full 6:19,21 45:18 90:10 124:7 125:21 138:22 fully 64:5,8,22 65:3,13,18 66:12 fumes 73:18 function 100:19 110:23 138:20 fund 55:9 57:6 156:1,17 fundamental 49:13 53:25 funding 55:3 furniture 103:11 further 139:25 165:8 221:15 future 99:15 112:12 136:15 137:7 166:5 -G- gadif:1 gamble 65:19,24 game 198:24 gave 148:12,16 160:1 166:15 175:12 General 22:5,7,10,12,15 23:5,6 33:19 38:21 39:17 41:16 45:16 46:19 78:14 80:10,22 84:5,15 85:6 98:15,25 112:10 122:23 167:8 169:14 General's 22:1 34:7 38:13 65:8 72:12 210:3,23 211:16,23,24 212:6,13 generally 45:20 80:4 96:6 98:4 126:4 165:5 182:25 214:15 generic.45:17 generically 45:20 177:9 genetic 25:12 56:9 genetics24:20,23 Germany 168:12,22 gets 209:12 getting 7:14 11:1 34:6 42:21,21 94:3 163:12 girls 67:16 gist 136:3 gives 14:2 glanced 46:25 123:6 glancing 122:22 Glantz 74:18 gone 154:20 172:25 177:16 gonna 34:9 good 10:24 31:8 44:22 100:10 156:17 160:5 164:5 167:24 171:5 178:3 goods 170:17 gotten 73:23 96:20 121:21 government 33:12 77:17 80:21 81:7 82:18,19 83:6 84:16 120:3 121:13,14,24 124:1,12 125:12 126:6,13 127:3,15 128:6 129:5 139:21 146:12 147:2,8 182:2,5 201:2 216:2,5 governmental 78:25 79:14 80:6 107:20 grade 153:18 graders 155:15 grant 172:22 grants 57:19 172:23 grasp 99:10 gratificatioas 197:16 great 85:7 greater 74:15,19 142:21 greatest 164:13 greatly 129:25 GREENBERG 2:14 Greensboro 77:13 grew 89:10 Grey 179:2 Grossman 94:15,20 grounds 128:9 group 13:18,19 79:7 133:24 134:5 157:25 163:8 181:17 207:19 218:1 groups 75:13 178:1,4,5 grow 139:15 205:16 grown 182:25 growth 136:14 137:5 138:19 139:6 204:20 guess 6:3 22:9 24:23 53:13 68:8 152:4 177:2 200:17 202:20 215:11 guidance 37:25 166:14 guitar 179:12 gum 88:25 92:4,11 gun 114:17 116:1,2 guy 63:11 81:5 87:24 94:20 186:21 guy's 102:1 185:19 guys 125:7 -H- ha ic 4: i hadn't 79:6 165:23 half 5:20 17:2 19:15 38:22 59:9 61:8,11,20 85:1 87:25 215:14 hamburgers 187:10 hand 45:14 134:24 197:19 221:20 handbook 161:22,25 190:17 191:4,17,20 handed 46:20 152:10 193:21 handing 131:16 188:22 hands 59:20 63:23 64:1 186:2 212:12 hang 111:12 happen 59:18 84:23 86:22 90:20 145:17 164:9 205:15 happened 9:4 59:18 84:22 151:23 191:9 happening 208:17 happy 34:12 45:14 50:13 64:21 100:9 152:18 hard 12:4 20:25 31:11 49:16 88:16 89:12 137:25 138:15,21 175:18 HARDY 2:12 harmful 199:20 harshness 13:21 hasn't 42:2 79:8 123:8 154:7 186:25 204:25 205:6 hate 154:16 hazardous 109:2 216:4 he'd 204:14 he'll 132:1 Head 114:19 115:3 116:4 122:4 145:4 150:11 176:19 184:23 185:1 187:23 heading 11:10 98:15 headline 114:18 116:22 117:1,3 118:17,24 119:1 123:25"125:10 132:13 health 22:10 26:12,20 29:8,22 30:3 31:9,18 32:4,21 33:16,22 34:2 35:8,17 37:25 40:1 42:15,22 43:18 46:8 49:11 50:18 51:12 54:18 66:4 68:12 80:9 81:10, 14,18,24 82:24,25 83:7, 15 84:5,6 85:9,11,16,22 86:2,10,16 109:3 112:23 113:7 119:18 121:11 146:11 166:10,13,15 167:4 169:11,12,13 186:19 193:22 194:11 210:4,8 216:11,25 217:7, 11,16,20 218:2 healthy 104:6,7 hear 56:8 82:14 99:12 heard 23:16 25:9 42:5 WORD INDEX first - hear 51601 8371
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ANDREW SCHINDLER 72:4 83:22 112:22 202:5 218:15 hearing 61:48 6_4:12 _ 65:3 90:25 heart 21:19 22:2 23:18 28:23 74:3 186:11 heavier 142:12,21 143:8 heavily 149:9 heavy 16:25 19:14 59:7 61:3,17 143:15 218:6 Hedges 142:14 help 43:7,13 92:6,11 hence 197:22 Henley 192:21,23 Here's 164:10 hereby 221:6 heroin 89:12 90:25 91:12 115:12 HEW 146:11,14,25 hey 14 :14 156: 25 172 :10 Hieriama 75:4 high 15:4,5 73:19 115:10 149:11 184:9 186:8 199:21 higher 9:5 14:8 31:16 41:3 43:4 139:1,7 206:23 highest 30:10,11 176:15,18 highlighting 149:18 highly 9:14 202:22 highway 100:7,22 himself 198:2 Hind 193:24 194:1 hire 201:23,24 Hispanic 140:19,25 142:14 Hispanics 140:20 141:5,18, 23 142:4 historically 10:4,6 history 9:20 24:22 30:2 36:1,4 100:13 115:24 137:20 144:8 174:17 202:17 hit 160:8 213:25 hits 160:4 HOFFMAN 2:14 hold 205:17 home 129:2 160:8 219:12 homes 180:3 honest 201:17 Honey 63:4 hooked 88:2 hope 198:2 hopefully 185:7 horizon 143:22 horrible 168:10 horses 11:8 hotcakes 168:8 hour 38:22 44:9 130:6 215:9,14 hours 99:23 107:9 118:14 house 103:11 114:18 116:1,2 huge 92:1 hundreds 77:24 hurt 77:6 hyperbole 114:21 115:5,7, 18,23 116:5,12,18 117:4 119:2,8,13,22 bypothetica134:4 35:5,14, 24 36:18 38:4 69:18 81:41.j3:17 84:3,7 98:22 99:7,11,25 100:1 104:2 105:8 163:24 164:8,10, 17,20 165:7,18,19 166:1, 2 169:9,21,22 170:1,6 213:12,19 214:4 218:23 hypothetically 160:18 165:13 -I- ve ,1 34:7,14 35:22 37:14 40:11 41:24 42:5 45:3,9, 11 46:2 47:6,6 48:10 50:6 51:13 52:25 60:23 65:25 69:17 72:4 74:6 80:12 83:22 94:4 104:13 105:17 108:17 112:3 113:3 131:14 135:9 144:10 145:17 147:6 154:5 188:18,19 189:20 190:13,15 191:14 193:21 194:21 199:13,14 200:3 202:5,7 206:17,23 210:12 213:18 218:15 - i.e 198:10 idea 35:15 76:10 79:13 80:1 87:18,19 93:9 98:9 102:8 145:2 153:16 178:2 191:10 201:7 208:3 211:14 ideas 178:9 identical 47:17 Identification 46:11 111:19 114:13 123:19 124:23 126:22 127:25 129:17 131:22 134:22 147:13 152:3 159:4 174:7 187:15 189:5 191:25 193:19 196:10 203:12 identified 25:7 205:13 identifier 12:23 identify 13:15,23 14:12 110:8 149:14 198:9 ignorant 206:25 ignore 39:22 ignored 113:1 iGo 79:11 illness 185:24 190:9,10 illustrated 129:11 image 8:6 imagine 43:19 67:9 immediately 5:1 impact 61:15 imperfect 123:11 implemented 128:24 implication 186:1 implied 161:4 implying 35:14,20 import 45:20 importance 137:3 145:25 217:12 important 49:12 52:17 122:9.137:7 145:25 149:4 204:23 205:4,14 206:11 impossible 79:20 108:5 impression 98:4 improper 212:16 improve 27:24 29:13 39:23 165:4,5,25 166:5,12,24 167:1 177:23 improved 96:18 improving 96:19 inaccuracies 212:15 inaccurate 23:19 155:5 inappropriate 70:11,19 Inc 159:10 incentive 115:19 incidence 41:3 206:23 inclination 115:13 include 53:17 123:11 included 72:24 including 66:9 74:1 119:4 inclusive 221:12 income 158:9 160:20 161:11,14 incomplete 125:4 inconceivable 66:8 83:11 100:21 inconclusive 156:12,15 incoasistency 143:4 incorrect 77:21 150:23 increased 183:5 increasingly 198:6,7 Indeed 175:3 independent 28:25 84:8 172:21 214:23 independently 74:22 indicate 33:2,12 indicates 204:17 indications 147:19 indirectly 198:14 individual 65:18 85:5 101:24 102:6,10,21,23 103:3,5 150:11,12,16,18, 24,25 151:1,12,16 184:24 individual's 101:25 102:19 104:18 105:9 individuals 188:7 industry 8:24 9:21 10:2,6 23:5 27:4,25 28:5 29:22 30:2 31:8,11 33:20 38:3 45:17 46:7 54:11,20,24 76:20 78:16,18 79:10 81:25 83:8 88:8,9 104:24 105:19,24 106:6 137:21 138:18 139:8,12 140:2 155:24 157:25 162:13,14 166:17 170:13 181:6 194:12,13 202:18 204:20 206:13 210:9,22 212:24 217:14 218:2 ineffective 198:7 inexcusable 148:21 infantry 15:21 influence 69:4 108:9 inform 190:1 216:6 information 36:16,19 37:17 66:6 104:12 145:8 152:23 153:12 159:13 190:18 216:3 informed 56:5 64:5 65:4, 13,18 66:9 _ inhalation 193:8 inherent 104:20 106:1 inherently 11:23 initiated 178:21 inject 70:18 iqjurious 50:18 51:12 input 69:4,23,24 84:17 inside 193:11 instance 115:25 Instead 197:25 Institute 158:1 160:23 169:12 209:14,23 210:12, 17,19 211:2,5,14,15 institution 89:19 173:17 in.stitutions 172:24,24 instruct 195:6 in.structed 99:24 iastruction 99:22 instructions 99:18 insulation 180:3 insult 118:3,7 insurance 179:23,25 intelligent 65:7 intend 47 :16 177 :18 195 : 3 intended 49:23 189:24 190:1 intentions 165: 10 inter-office 192:20 interest 152:8 216:11,25 217:7 interested 36:1 184:4 221:18 interests 157:24 interfere 69:23 interference 121:14 124:2 129:6 Internet 148:7 interoffice 187:16 interpret 130:14 205:24 interpretation 130:16 199:11,12 interrupt 117:11 interrupted 110:3 111:24 117:24 interruptlhg 90:13 interrupts 39:1 interstate 100:15 intertwined 100:17 intervene 151:23 intervened 150:18 intervention 120:3 121:15 124:2,13 interviewing 75:13 into 6:7 7:14 53:4 54:17, 24 55:3,10,12 56:21 57:20 70:10,18 71:8 82:9 93:1 108:13 135:13 141:5,18 168:6 178:5 191:12 intoxication 89:13 introduction 8:18 22:22 intuition 180:19 invalid 214: 10 investment 183:7 WORD INDEX hearing - investmej 51601 8372
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ANDREW SCHINDLER involuntarily 71:5 involuntary 70:22 71:2,9 72:2 169:4-7 214:21 216:4 involve 25:12,12 involved 43:20 50:23 94:4 108:12 involvement 178:14 ironic 159:16 irrational 198:1 irrelevant 207:20 irritating 17:10 irritation 16:2 issue 25:17 26:10,12 29:23 35:7 39:19 46:8 53:4 66:7 78:15 82:5,10 83:8 84:9 97:7 121:20 139:2 159:16 174:20,24 192:7 193:22 200:7 205:10,12 206:8 207:6 213:3 issued 73:3 issues 28:8 29:6,8 39:25 83:11 84:19 85:25 94:3 120:14 126:18 162:9 196:3 203:24 217:10 items 149:15 179:12 -J- J.F 1 J.P 147:25 Jack 86:20 Jacob 107:7,8,10,15 January 48:22,22 50:3,7 147:25 148:13 152:22 153:13 154:13,21 216:9 Japan 168:12,23 206:22 Jews 144:21 145:7,15 Jim 98:1 125:24 194:1 Jim's 97:20 Jo 152:22 153:7 job 7:14,15,16,23 15:23 18:5 81:6 89:14 104:8 128:12 144:10 163:20 164:15,18 165:14 200:12, 23,25 jobs 5:2 Joe 178:11,19 179:9 181:21 182:7 183:8,16 jogs 25:3 Johnston 92:21 125:25 Johnston's 97:3 98:2 joined 5:6 16:10,11 joint 4:24 33:16 218:1 jolt 34:12 Journal27:1,2,19 89:24 90:3 128:3 132:5,10 212:21 213:6,14 journa1s194:10 Jr 176:8 judgment 13:24 31:4 42:20 49:14 73:3,24 74:4,9,23 76:7,21 77:10,20 80:2 86:3 87:10 108:24 136:21 138:1,11 161:15 214:11,12,25 judgments 14:5 57:22 74:5 79:20,24 138:15 largest 6:15 levels 33:13 34:3 35:8 July 4:25 Larks 20:6 37:18 38:1 43:3 115:10 jumpjipg 149:17 last 90:4_92:25 96:22 200:16 June 92:24 128-3 195:2 101:6 120:22 137:6 Lexington 1:12 108:15 - jury 49:8 170:21,25 171:3 142:11 143:8,10,13,14 lie30:7 171:12 172:7 195:11 147:16 149:17 153:23 173:4,8 justify 74:23 215:7 165:6 176:7,20 189:14,22 lied 170:13 190:22,25 200:12 208:16 tife 59:11 70:10,18 75:7 -K- 215:9,10 217:13 103:7 179:23,24 KASOWITZ 105:3 114:5 132:1 149:15 164:15 185:16 keeping 199:1 210:17 keeps 73:15 185:18 206:13 key 121:1 142:3,4,11 199:1 203:24 205:9 206:7 207:6 late 9:18 19:11 21:10 29:20 30:4 137:23 187:22 later 12:17 20:21 47:21 61:11 63:17 114:2 145:20 155:24 170:15 Lauderdale 221:21 Laurene 187:17,20,21 law 22:11 161:14,16,19 lifelong 95:3 lifestyle 56:11 lifetime 184:16 lighter 148:25 Lights 13:6,7 likes 91:6 limit 116:21,22 limited 103:21 198:6 limiting 116: 10 kid 89:10,11 104:2 218:8, lawsuit 77:1 limits 118:16 11,20 lawsuits 109:9,11 line 7:21 91:15 105:2 kids 18:24 67:15 181:12 lawyer 91:5 161:12 172:14 179:1 189:10 kill 88:1 lawyers 93:24 94:9 158:12 201:17 killed 218:8,9,20 175:7 195:19,21,25 lines 98:5 201:9 kills 162:16 164:17 laying 165:21 LIPOFF 2:14 kind 11:9 12:18 13:2 layman 56:5 130:19 liquidate 201:14 14:8,20 17:18 38:9 41:8 lead 55:11 75:16 list 149:6,18 190:2 46:25 47:4 61:14 71:11 leader 6:12 9:22 10:2 listening 64:16 86:24 87:2 101:23 leading 5:14,15,23,24 6:10, listeas 64:9 102:22 105:11 112:15 16 10:9 literature 26:11 28:25 118:2,3 162:19 206:12 leads 173:11 43:20 44:3 210:3 218:10 208:9 learned 77:23 litigation 158:13 kinds 93:25 185:24 least 95:2?. 110:17.158:17 little 6:3 34:6 50:14 86:19 KING 2:8 175:19 112:23 134:8 139:25 knew 153:7 187:21 194:1,1 leave 92:23 116:24 144:12 160:10 165:7 199:3 Lebow 93:5,7,11,16 182:22 197:23 200:6 knock 68:13 Lebow's 106:12 ' 202:21 knowing 14:14 60:4 led 103:6 live 24:24 25:13 104:19,21 125:22 left 5:9 92:24 123:5 134:1 liver 103:4,9,21 knowledge 103:20 104:1 151:5 200:12 Liverpool144:22 138:24 144:2 165:1,20 leg 185:17,19 lives 65:8 197:23 206:22 legal 68 :14 70:16 115 :15 living 59:5 knowledgeable 43:22 64:5, 119:11,19 150:9 163:8 long 4:23 9:16,22 16:6 8,13,23 75:22 164:23 177:17,21,25 178:7 18:15,20 33:25 62:5,10, known 104:20 106:1 180:7,14 181:8'208:6 16 63:24 70:16 90:16,16 151:10 160:10 knows 158:22 190:8 206:14 212:23,23 Koo1205:22 206:1 Kools 205:21 Kools's 205:17 -L- A- -R- -N- lab 4l :2 156:10,14 label 22:5,11 23:4,15,15 39:18 labeling 84:10 labels 6:4,7,9 21:13 65:9 84:22 laboratory 40:25 lack 92:4 lady 133:23 laid 138:1 language 90:6 Large 1:21 12:2 149:12 221:6. legally 108:6 legislative 119:17 legislators 84:5 legislature 80:22 legislatures 81:25 legitimate 115:16 118:20 119:12 216:2,5 legs 185:11 lengthy 137:17 less 10:17 29:17,18 31:4,6, 13,15,17,20 32:20,20,20 33:7,10,14,17,23 36:23 37:20,20 42:14,21,22 43:7,14 73:12 94:17 139:22 175:6 215:14 letter 147:25 148:10 149: 3, 22,22 150:6,12,23,25 152:10,14,14,22 153:9,17, 24 154:8,9 155:14,15 162:5,8 letters 124:8 leve135:11 183 :6 208:20 215:3 129:21 198:8 199:14 202:7,8 218:16 long-term 44:1 135:25 136:14"138:4,6 174:13 177:11 longer 139:6 215:13 look 17:5,9 24:21 25:2 86:19 100:8,9,9 118:24 126:5 138:3 139:16 140:13,24 141:8 145:19 160:14 174:8 176:7 189:22 190:4 210:3 looked 48:3 147:16 looking 43:19 47:9 74:25 100:15 126:8,12 128:2 137:25 140:23 141:21 148:3 152:21 159:8 Lorillard 106:21 Los 107:21 lose 97:11 163:20 185:10, 11,16,17 186:2 218:25 loses 185:18,18 losing 89:14 98:10 186:21, WORD INDEX 51601 8373 involuntarily - losir . 1
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ANDREW SCHINDLER 22,22 manufacturing 178:25 143:12 145:12,16 150:3 lost 95:5 98:12 160:2 March 203:19,21 157:1 161:5 162:17 185:15 208:9 _ marg;p,2A8:17 L77:1,9,13 183:19 184:4 lot 10:17 12:2 15:18 25:3 mark 37:3 46:21 111:7,16 186:17 188:12,15,16,18 28:7 54:2,10 69:14 122:3 123:9,15 124:19 191:6 206:4,12 207:3 88:10,21 141:10 158:12 150:4 152:17,19 208:23 209:3,24 171:25 184:15 205:21 marked 46:10 111:4,18 m eaning 7:12 45:11 55:1 love 90:21 91:3 114:1,8,12 122:2 123:8, 132:20 low 43:3 73:22 168:4,4 18 124:22 126:21 127:24 m eans 8 :15 24:3,12 39:15 lower 215:3 lowering 27:25 28:8 29:14, 16 lowest 30:24 loyalty 137:11 Lucky 10:6,16 lunch 92:18 94:21 131:9 lung 21:19 22:1 23:18 24:8,15 25:2,4,11,18,23 26:16 27:5,6 28:23 34:9 38:14 41:4,16,20,23 42:9 55:4 57:24 58:8,14,22,25 64:10,10,15,15,25 65:17, 20 70:22 71:11,17,24 75:2,20,23 76:8,9 83:20 101:25 102:2,13,14,15,19 104:4,10,18,25 105:1,5, 10,22 155:10 157:15 164:14 169:17,18 170:18 172:11 173:12 190:5 214:20 218:7,25 219:4 lying 171:22,24 -M- magazines 53:14 179:11 Main 4:18 209:22 maintain 194:14 major 137:5 207:8 216:9 majority 12:2,2 26:19,20 85:8,16 154:24 155:8,12 157:13 maker 81:5 makers 108:10 makes 12:9 29:16,18 66:11 91:23 100:14 159:12 187:1 makeup 25:12 male 146:1,2 147:4 males 73:9 Mall 207:13 man 104:7 118:4 201:18 manage 29:5 management 151:22 194:14 manager 18:4,6 134:4 143:21 148:1 150:7 151:9 152:23 153:12 200:16 managers 190:1 Mandate 210:2 mandated 81:7 82:18 mandates 209:24 Manhattan 108:15 mankind 100:13 115:24 manner 80:3 162:11 manpower 138:6 manufacture 30:1 129:16 131:21 134:21 135:3 147:12 152:2,15 159:3 168:20 174:3,6 175:3 187:14 189:4 191:24 193:18 196:9 203:11 market 5:18,19,25 6:16 7:1,2,4 9:5,13 12:1 88:25 89:2 96:18,19 98:10,12 137:8 138:19,20 139:15 141:2 149:4,24 150:9 167:13 168:11,13, 15,19,21,22,25 174:2,14 177:7,8,12,13 179:14 180:11 182:11,12,14,15, 16,17 183:5 202:22 206:24 207:1,2 marketed 202:18 203:3 marketing 7:11,14,21,24,25 8:11,13 9:1,9,11 10:22,24 11:10,16,21 12:6 94:25 97:24 98:16 99:1,4 133:24 134:4 135:1 143:22 150:22 181:3,7,13 194:3 marketplace 7:9 12:3 143:16 168:7 178:3,21 203:7 marking 96:10 178:9 markings 147:18 Marlboro 5:22,24 8:12,23, 24 9:5,14,16,18 10:21,24 11: 2, 22, 22 , 24 12 :17 13 : 6, 6,11,15 14:7,15,21 19:18 96:3,23,25 97:2,10 100:8 142:14 207:14 Marlboro's 9:23 10:2 207:10 Marlboros 13:18 19:19 marriage 62:15 144:20 married 60:24 massive 89:20 materia127:9 matter 51:24 52:10 90:15 152:7 209:21 maximize 208:21 McMahon 148:1 152:11 200:7 mea 152:14 mean 9:23 11:19 12:12 15:8 19:24 21:15 25:3 42:16,19 43:9,11,24 45:4, 6 62:14,22,25 76:15 78:3 80:12 81:12 87:21 88:3 89:8 93:23 95:15 96:8 97:9 103:25 107:9 117:18,18 120:4 132:21 133:8 .137:20 139:4,7 41:11 42:11 53:3 55:7 58:17 73:11 123:7 188:17,20 meant 46:5 89:12,13,13,14, 15 116:5 117:16 208:25 mechanism 25:25 41:9 42:1 156:9,12 157:7 media 11: 21 66:6 107 :17 180:25 209:13 medical 26:15,17 27:2 29:1,3 43:18 57:3 75:11 78:15 89:18 102:18 103:20 109:22 110:7 155:8 157:5,10,14,18 165:22 172:2,3,23 173:5, 6 184:23 185:1 194:10 212:22 213:6,15 Medicine 27 :1,19 meekly 201:11 meet 44:21 meetings 162:9 members 74:11 memo 192:21 196:21 Memorandum 174:1 187:16 192:20 193:1,2 196:12 men 193:25 mentioned 59:2 61:19 167:21 merely 27:4 40:9 102:1 105:1 Met 179:23 184:15,18 metabolism 193:5 method 193:7 206:6 methodologies 212:16 methodology 73:6 methods 193:14 205:22 206:2 Mexican 141:5,19,22 Mexicans 145:7,15 Miami 195:2,19 mice 40:25 41:4,5 Mickey 183:16 mid 59:19 202:9 mid-70s 7:18 middle 60:17 135:22 137:1 144:12 193:4 208:18 might 26:1 94:1, 6 103 :23 162:5 163:20 178:3 182:8 208:13 213:13 Mighty 179:4 mildness 197:18 milligram 31:2,23 34:14,25 milligrams 30:15,17,21,22 31:22,23 34:15 35:1 36:23 millimeter 30:12 million 28:18 85:2,2 88:7 101:5,7,8,10 millions 95:19,19,20 113:17 172:12,13 mind 19:7 35:23 39:5 46:4 91:23. 132:1 210:19 minds 198:9,9 minorities 144:17 minute 111:23 117:6 124:24 206:9 minutes 12:17 44:11 45:12 46:2,20,24 47:1 114:3 192:14 215:19,24 mischaracterization 169:23 mischaracterized 27:9 mischaracterizing 23:24 mislead 37:23 38:10 misleading 38:11,17 39:10 173:9 miss 20:24 214:1 missing 122 : 7 124 : 7 136: 7 167:18,18 Mississippi 144:22 misspellings 47:5,14 misstated 30:19 misstating 21:23 54:4 mistake 150:16 151:21,23 152:12 misunderstand 118:10 misunderstanding 116:20 117:14 mock 94:7 mode 33:21 186:12 models 139:8 moment 52:16 117:10 152:10 169:8 money 54:2,11,23 57:2,18 89:15 95:23 96:1,6 125:21 138:7 166:22 171:25 172:4,5,19 173:7, 10,19 183:4,4 monthly 149:7 months 16:5 45:12 93:22 Morris 106:20 142:12,16, 20,25 143:2 202:20 MOSS 2:17 111:4 132:8 169:25 171:19 190:20 196:22 mother 218:9 219:8 motif 11:4 Mouse 183:17 move 74:9 83:1 119:3 170:20 190:21 201:12 moved 144:20 182:10,21 moves 74:8 moving 114:6 144:11 municipalities 77:25 Murray 193:23 194:4 music 144:21 must 140:2 157 :19 174:13 197:25 203:17 Mustard 179:2 myself 32:12 70:10,18 88:13 mystery 56:6 Myth 131:18 132:7,12,13, 15,16,20,25 133:1,2,7,14 WORD INDEX lost - Myt 51601 8374 1
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ANDREW SCHINDLER -N- Nabisco Nam 15:16,19 16:5 17:3,4 20:18 name 4:16 117:7,9 118:2 179:6 214:15,16,16 Named 202:24 names 50:1 153:21 narrowed 83:12 National 169:11,12 nature 11:8 13:22 68:21 162:25 196:12 near 9:17 16:8,13,23 29:20 50:23 59:8 Nearly 127:2 necessarily 83:4 130:13,21, 24 144:6 213:23 214:5 necessity 39:2 need 34:12 46:24 92:6,11 102:9 103:10,10 104:11 121:24 127:7 149:6 156: 3, 6, 25 157 : 3 163 : 2 186:9,10,11,18 204:13 needed 53 :4 155 : 21 156: 8, 16 157:11,17,19 170:17 190:12 needs 8:2 44:21 121:21,22 188:10 negative 112:22 209:11 negatively 210:6 neither 146:25 188:7 nervous 86:20 88:18 never 5:9 20:20 27:17,18 47:6 48:5 58:12,12 61:22 62:2,7 70:16 75:17,18 94:4 95:4 98:14 100:12 105:19,21 145:17 168:19, 24 177:16,18 181:1 188:18 191:14 199:13,17 200:3,5,14,20 202:5 206:17 210:12,19 212:4 nevertheless 202:2 new 22:24 26:25 27:19 42:4,7 90:4 107:21 120:11 122:20 125:21 153:1 174:2 177:6,7 178:2 188:10 199:2 208:22,23 209:1,3 newsletter 162:4 newspaper 216:9 newspapers 45:19 48:21 50:1 53:8,13 72:18 125:22 NFO 207:10,25 Nicoderm 88:25 92:4,11 nicotine 33:2,13 34:12 88:25 92:4,11 168:5 192:20 193:2,7,10,15 196:14 197:15,17,22 198:10,23 199:1,3 201:10,13,19 202:19,21 night 103:5 Nine 131:19,22 134:7 183:1 Nobel 172:3 173 :1 nobody 82:9 150:14 160:4 201:21 nods aQ:23 190:14 non 201:11 none 101:9 nonrespoasive 90:17 nonsense 213:2 nonsmoker 17:15 68:2,5 71:3,6,8 100:6 101:10 188:11,14 197:19,23 nonsmokers 79:2,9,23 80:10 87:1 104:5,7 108:3,11 120:2 124:3 127:17 129:19 134:10 nonsmoking 108:16,21,25 nonsomkers 53:20 Norma 75:15 76:9 normal 19:24 103:7 normally 63:10 North 4:18 77:13 135:2 Notary 1:20 221:5 noted 123:3 nothing 19:7,9 33:11 131:6 134:9 161:13 165:8 166:7 167:3 170:4 180:5 192:9 197:20 Notice 1: 21 63 :5 108 :16 noticed 34:13 notion 80:2 121:23 140:10 nowhere 50:23 168:17 number 5:16 6:6,18,19,21 9:16,18 10:7, 8,17 24:23 29:19 44:23 53:2 63:4,11 73:15 75:20 77:16 92:1 94:22 97:1,1 98:6 111:4 120:13 122:5 131:18 133:24 142:4 149:12 153:18 204:19,22 205:12, 15 206:15 207:7,9 numbered 221:11 numbers 14:4 146:9 147:3, 6 189:9,10 206:17 -O- oath 38:1 1 :1 object 8:14 9:25 11:11,13 14:16 21:22 22:21 23:23 27:7,12 32:10 34:17 37:12 38:19,20 40:15 42:25 45:5 52:4 54:4 55:17 58:1 64:2,17 69:6 70:1 71:13 76:3 78:19 79:11 81:11 83:1 84:1 86:12 87:12 97:14 99:17 103:12,14 105:6 107:12 109:4,5 113:19 121:17 123:10 126:7 128:8 135:9 142:22 148:19 149:25 158:11 159:15 165:15 169:25 170:21 171:19 172:16 174:18 175:16 179:20 185:21 190:20 195:5,13 196:1 199:4 210:1,10 213:8 216:15 218:13 objecting 8:17 objection 9:2 34:20 35:4 36:8,25 45:23 54:14 57:13_.58:9 65:5 83:25 85:18 92:8 98:18 99:2 105:13 123:1 218:22 objections 38:25 objective 188:9,9 obnoxious 94:17 obstinate 32:15 obtainable 198:3 obvious 22:23 95:13 102:12 104:23 105:18 123:24 141:4 146:21 obviously 8:22 12:1 22:14 24:7 25:6 37:9 39:3 49:1 53:9 57:20 65:19 78:23 80:24 85:4 88:9 95:5 99:23 111:1 125:23 140:20 141:13 146:16 151:13 190:2 193:12 200:18 204:12 211:9 occasions 20:15 48:3,9 Occupational 169:13 occupied 4:23 occurred 100:12 occurrence 86:11 October 18:5 122:19 off 35:2 52:19 59:20 63:23 64:1 68:14 89:17 121:13 123:4,13 125:2,12 126:6, 10,13 127:15 135:11 145:4 ot'fer 197:24 198:15 offered 192:12 oftice 60:3 192:10 officer 5:4 15:21 125:19 officers 114:17 116:1 offices 86:9 219:13 official 221:20 officials 81:25 83:7,7 218:2 old 15:1 48:25 59:22 66:15 67:20,24 68:1,9,11 70:3,4,4,17 84:23 178:10 183:15 207:19 older 137:22 oldest 67:24 olds 178:8,8,8 179:19,24 180:2 183:23 207:11 one 5:16 6:18,19,21 8:21, 23 9:4,16,18,21 10:7,17 11:7 13:18 17:16,18 18:3 20:10,11 21:17 24:17,18 31:2,22,23 32:6 34:14,25 36:4,6 45:3 46:10,21,22 47:8,9,21 49:10 53:24 57:21 63:12 67:14,19,19, 21,22,23,24 73:1,5 74:10 75:21 77:14 85:1 100:7 101:14 107:10 109:24,25 110:1,5 111:10 112:7 114:16 115:25 116:8 117:15 119:24 120:4,8, 16,17 121:1 122:16,19,21 128:9 129:1 130:7 136:3 139:7 142:4 144:13,16 145:22 147:16 148:13 153:24 158:14 159:5 163:6,16 175:4 179:10 180:24. 189:1,2 190:7 192:1 194:2,4 195:11 205:12 206:21 207:7 209:22,24 213:11 214:15, 16,16 216:22,23 one-point 101:4 one-third 139:23 ones 80:20 158:14 160:5 ongoing 142:13 onto 155:15 Open 110:25 194:15 operate 32:25 operates 161:18 operating 5:3 125:19 opinion 12:24 36:21 67:1 87:11 93:13,14 128:20 129:4 201:22 202:3,16 216:2 219:10 opinions 202:14,14 opportunities 198:5 opportunity 9:15 140:18 166:3 169:7 205:18 206:5 oppose 108:6 opposed 13:11 23:21 102:6 115:19 option 144:13,16 oral162:23 order 115:5 163:2 organ 210:21 organization 7:17,25 17:22 29:5 151:12 162:7 169:11 200:17 210:4 organizations 80:14 original 147:20 175:1 204:6 215:3 originally 178:20 originals 47:6 Ortega 179:3 OSHA 128:19 otherwi.se 103:6 107:24 139:11 ought 97:16 out 4:9 14:4 15:4,5 19:7 77:23 80:3 82:14 84:6, 10,17 'a'6:25 114:18 115:2 116:3,25 120:3 121:9,13 122:3 123:7 124:3 127:16,20 128:7 129:6,9 138:2,25 141:1, 25 142:8 145:5 150:13 151:2 152:11 153:10 155:23 159:7 160:7 161:14 163:17 165:8,21, 25 173:3,19 175:7,18 180:24 181:10 188:13 189:25 200:1 207:24 208:1 209:12 210:23 212:13,15 213:13 outer 208:17 outrageously 165:19 outweighs 137:11 over 11:24 13:7 25:9,22 26:11 27:25 28:7 29:14, 15,24 30:5 31:7 33:15,25 WORD INDEX 51601 8375 Nabisco - ov~~ .
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A1vi3x.lr,W JL;tu1vlJLr.x 38:1 39:23 47:7 49:11 57:18 68:25 73:14 75:13 78:17,17 81:20 86:8,8,8 88:8 93:22 9&4 112:21 119:23 137:6 138:18 139:15 143:17,22 148:23 154:20 165:6 166:12 167:4 174:13 177:11 182:22 200:13 218:17,17 overall 13:22 74:15 oversight 192:11 partially 138:16 participate 163:2 particular 19:9 33:4 101 i4 102:23 109:20 124:8 157:25 162:6 194:13 208:8 pariiculars 212: 10 parties 221:16 pass 155:14 passed 60:8 passive 71:10 78:16 163:8 198:14 206:22 44:10 46:5 52:7 53:5 period 5:9 10:7,17 15:14 61:10 67:23 68:25 69:20 16:1,6,24 27:25 29:25 70:4,14,19 72:1,23 97:23 3-1: 8- 33 25 63 :2 89:19 105:24- 106:6,9 113:18 93:22 98:8 118:7 120:10, 115:5 121:8,21,22 125:25 14 131:23,25 166:24 129:8 131:10 142:4,11 178:13 180:17 203:15 155:6 156:11 157:9 periodically 162:5 182:21 183:2 184:24 periods 143:18 200:2,8 209:19,20 person 35:12 145:5 176:20 pointed 116:2 181:10 177:5 187:4,5 195:11 189:20 200:1 212:15 pointing 114:17 166:15 points 5:21,25 71:22,24 73:15 133:19 138:1 139:13,14 142:3 156:13 182:22 183:1 215:5 police 114:16,16,17 115:25 policeman 114:16 policy 63:24 82:1,6,12 overtake 8:12,23 overweight 186:9 Owens-Illinois 180:1 own 29:4,9 35:17 56:24 past 10:21 46:3 48:5 person's 105:22 51:22 52:8 74:1 84:13 personal 26:6 29 :10 88 :10 136:15 144:12,17 166:6, 106:6 7,12 215:10 personally 162:18 195:3 63:21 65:14 88:10 89:4 path 166:1 persuade 95:24 96:3 92:6 107:5 124:11,12 patient 86:10 185:15 129:4,24 128:21 129:2 198:9 patients 86:19 87:14 petition 167:10 owner 106:14 pattern 207:12 Ph.D 198:20 -P- P7- peer 27:1 P.A 2:3 people 12:3 15:19 22:10 pack 7:3 17:2,2 19:15,15 23:14 26:11,20 28:17 61:4 63:11 87:25 100:10 29:5,7 30:3 31:9,18 219:8 33:16,22 34:2 35:8,17 package 6:24 12:15 38:1 40:13 41:15 43:17, package,s21:17 81:9 82:24 19 53 : 8 56:9 66:4 71:4, 7 83:18 74:12,14 75:13,13 78:12, packs 22:6,12 38:14 59:9 23 79:21,22,24 80:2,13 61:20 65:9 80:17,20 83:7 84:5 85:2,11,12,13, 81:1,18 82:3,20 102:3 21,24 86:1,14 88:7,10,11 104:4,10 105:10 89:3 90:5 92:2,3 93:12 page 45:18 106:13 112:7 95:9,9,14,17 98:14 99:5 125:21 135:20 136:3,3,6, 100:8 101:13 109:3,11 6,7,12 137:1,2 138:3 115:19 126:17 127:20 139:16,17 140:15,15,18, 128:21 129:9 150:9 20 141:4,21 142:3 151:11,20 156:23 157:1, 144:11,12 153:24 174:9 23 162:6,16 164:17 175:4 176:7 189:9,13,15, 167:4 170:13,16 171:13 23 192:25 193:4,5 194:6, 173:19 177:16,24 180:7, 7,8 196:17 197:2,8 , 11,13,14,20,20 181:3,8 201:8,8 204:16 208:16,18 184:8,10,13,19,20 185:2, 213:19 5,10,23 186:15 187:9,19 pages 140:13,17 145:20 194:5 206:15 208:6 188:23 207:24 221:11 210:16,18 213:4,5 215:15 Pall 207:13 216:3,6 panel 74:13 172:2 peoples 166:10 Panther 180:2 peoples' 180:19 216:11,25 paper 158:24 205:10 206:8 217:7 207:6 213:20 per 101:7 paragraph 51:21 112:20 perceived 8:25 190:19 120:22 124:8 140:1 percent 86:1 101:12 153:23 174:12 188:8 137:10 139:24 142:5 189:23 194:8 146:2,3,3 147:4,5,5 parallel 186:17 181:23 182:3 184:9 paramount 44:15 216:12 207:11,12 217:1,8,11 percentage 5:18 30:14,19 parent 218:20,25 87:16,19 168:13 182:6 parents 66:25 67:8 100:19 184:9 206:15 104:5 percentages 73:24 140:21 parks 121:25 perfectly 64:6 90:19 104:5, part 12:8 49:2 5 2:6 72:13 7 79:18 83:14 86 :2 95:21 performance 138:5 119:11 128:15 139:11 perhaps 24:20 25:13,13 147:20 162:7 103:23 104:17 106:17 pays206:14 peak 207:14 peaking 207:13 Philip 106:20 142:12,16,20, 84:9,21 108:10,25 115:16 25 143:2 202:20 119:11,15 150:7,15,17,18 phonetic 75:5 151:10,13,15,17,19 164:3 phonied-up 175:19 177:17,19 181:2 208:5,7, photograph 116:25 117:2 9 209:13 213:24,25 118:24 119:1 physician 27:3 pick 95:4 132:21 208:10 picked 19:5 picking 208:1 picky 53:19 picture 115:2 116:15,22 118:17 piece 33 :1 158:24 208:10 pieces 208:2 Piehl 187:17,20 188:1 192:21,22 Pink 180:2 pinpoints 14:12 place 49:2 73:10 119:14,23 143:7 203:16 placed 142:12 placements 81:19 places 121:25 Plaintiff 4:3 Plaintiff's 46:10,21,22 111:8,18 114:12 122:25 123:16,18 124:20,22 126:3,19,21 127:22,24 128:4 129:13,16 131:21 134:7,21 135:3 147:10, 12,24 151:25 152:2 159:3,9 173:25 174:6 187:11,14 188:25 191:22, 24 192:19 193:16,18,21 196:7,9 203:9,11 Plaitiff's 189:4 plane 215:15 Planning 174:1 176:20 196:12 200:13 203:14 plant 18:4,6 143:20 play 196:5 played 94:14 197:22 playing 179:12 pledged 54:17 point 15:17,23 16:5,21 19:21 24:4,7,14 33:1 39:12,13,16 40:4,12 political 121:7 pool 140:23 179:11 poor 87:10 96:6 122:8 144:21 popular 145:6 206:19 population 102:6 140:3,25 141:22 205:5,16,17 206:11 portion 27:15 37:6 39:8 69:12 103:18 126:9 130:11 171:17 191:2 199:7 205:4 206:11 216:16 portray 116:6 186:6 portrayed 115:18 187:8 portraying 103:22 115:17 poses 79:9 80:9 posing 163:24 position 4:19 5:1 27:4 38:21 49:14 52:22,25 68:24 72:2,3,5,8 86:1 99:24 100:5 101:9,11 102:13,16 104:25 105:24 106:5,7j21 107:24 108:1, 9 109:17 113:4,6,12 125:15 131:3,4,12,13,14 134:12,12 157:4 165:3 176:15,18 194:18 199:20 202:4,5 205:10 206:8 207:6 212:2,3,22 214:13 217:17 positioning 8:6 positions 4:24 212:19 possession 191:12 possible 57:23 58:7,18 99:6 103:13 197:16 possibly 129:2 193:13 post 199:21 potential 29:23 130:25 139:6 potentially 139:14 pounds 186:9 Poupon 179:2 WORD INDEX overall - Poupo 51601 8376 1
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ANDREW SCHINDLER power 78:24 108:6 practical 181:18 practice 164:3 _ _ practices 150:22 pre-smoker 197:20 198:6, 14 preamble 119:4 precent 182:9 precise 61:9 preci.sely 97:17 113:18 157:9 172:10 209:21 prediction 169:6 predisposition 56:10 prefacing 71:14 prefer 13:17 39:6 45:12 114:7 preference 13:22 207:8 preferences 141:1 205:17 preferred 12:1 13:7 14:7 prefers 14:14 pregnancy 21:20 22:2 prematurely 218:7 Premier 167:12,21 168:24 Premiere 166:21 premium 6:20 149:15 preparation 107:10 preparing 93:19 prescribed 119:20 present 4:19 93:24 136:15 198:4 209:11 presently 149:7 president 4:21 5:3 7:23 2.8:21 34:23 40:6 44:13 52:1,22 81:4 82:21 125:17,18 144:5 211:18 pres,s 74:11,14 194:9 pressure 18:23 19:2 79:18 prestigious 27:1 presumably 81:6 95:3 presume 94:8 presuming 155:14 presupposed 170:2 pretending 213:2 Pretty 57:9 61:13 96:7 97:8 98:6 103:7 181:15 previous 7:16 122:24 128:5 194:2 priced 6:19,21 pricing 8:8 principal 152:25 153 :17 155:14 print 47:4 180:25 prior 7:13 78:4 212:5 private 6:4,7,9 80:7 prize 172:3 173:1 probable 58:21 probably 6:8 15:3 17:2 59:9 67:9 68:18 85:1 161:13 182:20,21 193:6 problem 47:22 60:5 187:5 problems 20:23 59:16 62:3 120:4 121:14 124:3 127:16 129:6 process 14:4 17:23 26:2 36:15 81:24 84:18,23 164:25 processes 119:17 produced 175:2 188:23 191:7 prodi;J 8:7 10:25 11:17, 25 T2:6,6,19 '13:1,4,25 14:3,7 29:14 30:24 31:1, 15,16 33:4,7,10,13 34:13 35:13 38:3 66:13 68:15 85:13 89:16 110:21 115:15,20,22 119:10,12, 19 139:10 157:2 162:15 165:4,5,25 166:5,21,25 167:1,5,11 168:1,6 170:3, 4 179:1 181:9 184:5,13 188:10 197:20 198:13 199:2 200:4 202:20 203:2 206:3 210:15 218:8,9,20 products 8:5 19:21 20:1, 2 27:24 28:2,9 30:9 31:12 33:17,23 35:10 39:23 44:21 50:18 51:11 54:13 88:24 89:1 93:6 96:23 179:5 180:10 201:14 218:6 profit 89:2 201:21 profitability 138:5 program 163:4,11 programs 138:7 163:16 181:7,14 prohibition 115:14 project 57:4 141:22 projected 141:24 projection 142:8 projects 55:9 57:22 promise 54:9 promises 53:25 promoted 200:18,22 202:1 promotion 8:3,8 178:2 208:21 promotional 178:20 proof 25:25 41:9 75:3 102:22 158:16 proper 197:14 proposals 107:22 proposed 57:19 128:19,23 140:11 201:10 proposition 80:11 prosper 174:13 177:11 protect 109:10 216:3 Protection 76:19 77:15 78:14 169:14 214:9 proud 166:18,19 167:6 prove 101: 21 102 :18 105 : 4 proved 156:11 204:24 205:6 proven 92:1 102:24 105 : 20 154:7 194:11 proves 108:4 134:9 provide 36:16 172:20,22 216:2 provided 23:14 126:9 provides 214:23 providing 31:12 proximity 149:10 proxy 52:19 Public 1:20 21:14,19 22:10 26:20. 29:21 30:3 31:8,18 33:16,21 34:2 35:8,16 37:25 38:12,18 39:11 40:1 43,18 44:23 48:13 53:15 66:4 81:24 83:7 84:5 108:12 121:9,25 129:4 144:18 152:23,24 153:12,13 163:2,7,11 166:15 167:4 169:12 201:3 217:16,20 218:2 221:5 publications 50:1 128:3 publicity ' 09:9 209:12 publicly 106:15 publishable 176:24 published 44:4 48:21 49:21 50:7 53:8,13 66:6 107:16 112:17 128:16 134:25 173:3 209:18 216:9,18 Puddings 179:4 Puerto 141:5,19,23 145:7 pulled 116:1 pulmonologists 75:22 purchase 178:7 179:13 181:9 pure 154:7 purely 183:3 purpose 116:24 118:13 129:3,23 149:13 purposes 149:8 pursuant 1:21 "Q . qua :1 quantitative 14:5 quantitatively 133:9 questioned 214:24 questioning 93:25 146:14 quickly 183:16 quit 15:14,14,15,15,16 21:7 59:12,14 62:8,9,13,18,20 63:1 84:25 85:5,8,11,12, 13,16,24 86:10,14 87:15, 17,19 88:2,2,7,-10,11,14, 18,22 89:3 91:23,24,25 92:1,2 94:23 95:2,9,9,22 164:15,18 165:14 184:16, 20,21,22 185:3,3,7 186:2, 3,5,5 215:11 quiting 61:23 85:25 87:17 98:14 quitters 85:16 88:20 95:1, 7,9 quote 50:17 51:21 52:5 112:21 113:2 124:9,13 134:10 135:24 136:13,15 137:3 138:3,8 139:20 140:1 144:16,23 149:20 164:1 174:12,14 184:24 188:9,11 194:8 201:15 quoting 134:7 197:13 -R- 4: , :4, , :1 34:23 44:14 51:11 52:1, 22 82:22 111:1 113:4 123:21 125:16 131:3,4,16 135:1 140:23 149:23 153:19 161:21 162:10 166:11 174:17 194:14;19 195:10 203:24 205:21,23 206:14 211:18 212:11,14 213:21 217:5,17 219:13 radio 163:3 range 68:9 91:9 182:9 rate 13:20 rated 180:24 rather 103:21 112:10 128:23 134:24 137:17 140:16 180:11 re-typed 47:4,10 reach 108:1,4 126:17 reached 55:14 reaching 148:23 react 212:18 reaction 199:13,17 read 25:9 26:25 27:16,17, 18 28:24 37:4,7 39:9 45:8 47:25 48:5,9,10 50:8 52:21 53:6,24 56:8 69:13 72:12,15,16,17 75:7 97:3 103:19 112:7 113:3 114:22,24 122:10 124:15 125:9 127:9 130:2,2,4,10,12 137:13 144:6,9 146:6 147:6 149:4 171:15,18 184:24 190:13 191:3 194:16 198:18,23 199:8,9,22 201:3,5 204:13 207:16 216:23 221:10 readers 129:24 reading 34:8 111:24 123:4 127:7 149:21 188:21 real 16:1 39:20 103:1 198:2 realatioaS 152:24 realism 116:6 realistically 174:12 Reality 131:18 132:7 realized 67:2 reason 77:4 80:5 95:21 102:11 104:24 106:12 118:20-136:5 146:4,20 183:14 186:22 205:20 214:3 reasonable 100:25 reason.s 68:4 77:14 79:19 85:14,17 86:10,16 109:13 137:8 198:1 209:22 recent 28:1 119:23 137:22 142:13 recite 109:23,24 recognition 184:7,9 recognize 39:16 47:9 106:4 123:21 155:7 184:4,12,14 recognizes 183:15,16 recommend 34:15 36:22 37:10 recommendation 34:25 36:3 record 4:7 27:16 30:18 37:7 39:9 47:16 51:22 WORD INDEX power - recoi 51601 8377
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ANDREW SCHINDLER 52:8 69:13 103:19 111:14 130:12 131:24 147:14,21-_152:9 158:18 171:18 191:3 199:8 204:5 recorded 27:16 37:7 39:9 69:13 100:13 103:19 115:24 130:12 171:18 191:3 199:8 records 75:23 reduce 30:6 31:12 34:3 38:1 166:8 186:10 reduced 33:22 166:16 168:3 reduces 35:19 reducing 186:13 reduction 30:1 31:9 33:19 166:9 201:13 refer 204:6 217:3 reference 174:22 referred 11:2 46:9 111:17 114:11 123:17 124:21 126:20 127:23 129:15 131:20 132:12 134:20 147:11 152:1 159:2 174:5 187:13 189:3 191:23 193:17 196:8 203:10 referring 11:3 119:15 132:6 159:7 171:21,22 183:19 191:18 192:20 207:25 217:14 reflect 51:25 reflects 52:21 regard 29:23 30:8 64:4 77:20 78:6 83:15 156:15 166:20 184:7 186:20 209:18 210:14 211:15 regarding 128:11 217:10 regardless 51:21 52:8 194:9 regular 19:23 regularly 113:1 regulation 32:25 33:12 regulations 128:19,20,24 reinforce 101:17,19 relate 25:10 40:2 related 24:20,22 25:2,15 28:10 35:7 54:18 55:11 56:11 73:18,19 104:16 107:22 120:15 127:13 138:18 156:10 157:7 173:8 219:4 relates 24:23 68:24 90:5 127:5 156:12 161:19 relatioas 153:13 163:8 relationship 155:10 194:10, 15 relationships 75:12 relative 28:6 43:16,24 44:7 73:23 74:2 102:9 137:24 144:2 150:17 156:9,9 161:16 221:17 relatives 15:11 100:20 relevance 208:8 relevant 28:4 74:4 130:24 relied 146:22 rely 210:15,16 remain 4:8,10 remajp,der 151:14 remams 194:18- reminded 151:15 rendered 77:20 renewal 137:8 repeat 8:19 32:17 39:6 172:1,4,5,5,14,19,20,23, 142:19 143:7,16 145:6 24 173:3,7,20 174:1 149:23 152:24 153:19 1_76:14~19 177:5 184 :6 157:4 161:21 162:10 187:23,25 188:2 190:8,12 166:11 167:20 174:17- 192:21 193:2 194:5 190:16 191:6 194:14,19 196:12 197:7 199:22 195:10 203:24 205:21,23 200:11,14,20,25 203:20 206:14 207:20 209:10,13 210:15 214:22,23 215:6 211:18 212:11,14 213:21 103:17 146:18 154:17 199:6 repeated 86:8 139:21 207:12 repeatedly 42:5 78:17 83:23 replace 94:25 95:11,22 98:13 114:2 replacement 95:13,16 96:1 139:21 145:25 researched 56:16 researcher 89:23 136:21 researchers 43:18 57:3,5 172:2 173:6 researching 54:2 56:24 156:25 resolving 83:8 resources 54:17 57:22 164:22 172:20 respect 107:25 118:13 217:5,17 219:13 Reynolds' 96:23 120:18 127:13 129:5 Reynolds's 94:24 113:18 120:5 Rican 141:5,19,23 Ricans 145:7 Richard 1:19 221:4,25 rid 17:6 167:8 Ridge 153:1 replacing 95:7,8 report 72:13,13,15,16 77:5, 23 78:4, 8 134 :25 136:18 131:5 199:15 respected 190: 10 respond 39:21 162:12,13, Ridiculous 165:18 169:9 213:19 Right 11:6 14:10 31:9 137:17 138:25 141:3 19 190:18 210:7 213:5, 33:20 34:2 35:9 51:19,20 142:17 143:20 146:23 22 214:3 57:12 68:3 76:24 80:19 210:23 211:16,23,24 responded 166:14 211:22 81:9 86:16 92:7 97:18 214:9,18 221:13 . 212:14 98:22 102:7 106:17 reported 72:18 125:25 responding 116:14 167:4 113:15 118:4,5,7,10 146:12 154:2,11,15,22 responds 210:22,25 132:20 145:5 161:2 182:2 221:6 response 214:5,7, 10 169:21 170:19 174:10 Reporter 1:20 221:5 responses 212:6 175:18 183:21 195:24 reporting 33:3 176:19 responsibilities 44:24 197:11 203:8,20 204:18 reports 65:9 112:22,23 216:21 212:20 144:10 182:5 194:9 responsibility 28:24. 44:15, ring 107:18 210:4,4,5,5,7 212:6,13, 18,19,20,21 151:22 risk 22:25 23:9,11,21 24:2, 16,19 216:12,14,25 217:7 11,15,22 25:8,10,15,22 represent 47:15 115:13 responsible 8:2 206:24 26:3,22 27:5,21 28:6,10 157:24 164:4 185:5 represented 121:21 representing 163:6,15,25 represents 150:20 reprimand 150:18 reprimanded 150:12 151:1, 7,14 163:21 reps 149:3 repudiate 139:1 repudiating 133:16 requested 27:15 37:6 39:8 69:12 103:18 130:11 171:17 191:2 199:7 requests 57:4 required 33:2 81:21 82:23 84:15 208:21 research 13:12,13 14:10, 18,23 25:21 26:10 42:16 43:3,13,15,21,23,25 44:2, 6 46:7 49:20,20,22 54:11,17,22,24,24 55:1,2, 7,9,12,23 56:21,23 57:1, 6,6,11,12,15,16,19 72:25 73:7 74:21 82:9 90:1,2 107:2,5 113:17 133:24 134:4,25 138:14,22,25 144:10 146:21 153:25 155:17,20,24,25 156:1,3, 6,8,11,16,17,20 157:1,3, 6,11,14,16,19,20 158:4,8 159:10 160:19,25 161:10, 17 164:23 170:14,17 207:4 responsive 90:18,19 restate 150:19 restrictions 78:6 result 49:20 65:20 100:11 172:8 214:21 results 173:2 retail 6:23 retired 92:24 93:2,4 153:7 202:9,12 return 149:18 returns 158:10 160:20 161:11 revealed 201:2,5 review 215:4 reviewed 27:2 75:23 169:15 180:16 reviewing 43:20 Reynold.s 2:7 4:20,21 5:4, 5,13 6:1 7:16,19,20 8:13 12:10 14:11 17:22 19:20 28:12 30:9,24 34:23 40:14 41:15 42:24 43:2, 6,16 44:14 51:11 52:1,23 76:23 82:22 96:24 97:10 98:6,7 101:2 106:20 111:1 113:5 114:18,20 115:4 117:3 119:2,24 121:2 123:22 125:16 128:16 131:3,4,17 132:14,15,24 133:13 134:7,12,13 135:1 140:24 29:10,17,19,23 30:7 31:4 32:21 33:18,24 35:19 38:16 39:14 40:9,23 41:10,25 43:3 51:3,14 53:2 58:14,19,23,24 65:1 66:1 72:6,11 73:1,2,11, 16,19 74:2,15,19 76:8,13, 17 102:1,15 103:13 105:1 113:7,22,22,24 130:21,25 131:11 133:19 155:2 156:14 168:3 170:18 172:11 194:23 215:2 2i8:16 219:4 risks 29:12 40:2 54:18 64:5 65:12 66:10,13 68:12 70:5 73:24 85:22 86:2 104:14,20,20 106:1 119:17,18 216:7 217:11 risky 31:16 33:7 37:20 RJR 5:12 138:5,9 148:1 187:16 188:23 191:8 196:15 199:23 203:13 207:18 214:7 RJR's 138:4 robbery 89:16 ROBERT 2:6 rock 144:22 Role 196:13 197:22 216:5 roll 144:23 192:16 room 71:3 74:12 ROSEN 2:14 ROSENBLATT 2:3,4 4:12, WORD INDEX recorded - ROSENBLAT . 51601 8378 1
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ANDREW SCHINDLER 15 21:24 24:10 28:11 38:24 39:4 44:11,13 46:13,17_-47:11,13,19,20, 25 52:13,20 56:7 87:4 90:14,16,21 91:3,7,13 92:16,20 97:18 98:1 99:18,22 100:4 104:13 105:23 111:7,11,15,20 113:25 114:5,9,14 117:9, 17,21,25 118:9,22 122:2 123:15,20 124:19 125:5,9 126:19,23 127:21 128:1, 10 129:13 130:7,10,15 132:9,11 134:15,23 135:7,10 136:5,9,12 141:10 142:24 143:3,7 145:23 147:10,22,23 148:6,15,17,25 149:2 151:25 152:13,18,21 154:16 159:1,8,19,25 160:7,10,12 170:23 171:2,5,7,15 173:24 174:4,8 189:2 192:3,4,9, 12,18 193:16,20 196:7,11 197:3 203:9,13 204:9,15 208:13,15,16 209:8 215:14,20 216:1 219:17 Rosenblatt's 128:12 216:16 Rosneblatt 153:3 ROSS 2:15 rough 96:21 Royal 179:4 ruling 180:22 run 32:25 120:13 135:10 198:8 run-of-the-mill 103:7 running 33:4 runs 160:8 Russia 206:16,18 207:4 Ruth 160:7 -S- -P-A- 1 S-U-L-L-U-M 107:11 safeguard 217:16,19 safer 31:20 35:13,20 38:5 42:14,22 43:8,14 167:15, 16,17,22,24 168:1 Safety 169:13 sale 33:1 149:3 Salem 5:16 Salems 20:1 sales 7:17 17:22 148:1 150:11,13,22 151:9,12,14 152:11 200:7 San 74:18 sat 68:10,21 satisfaction 164:12 193:23 198:11 satisfactions 197:24 198:3 199:3 satisfactory 183:6 197:17 satisfied 11:22 78:13 80:9 102:2 105:9 183:10 satisfy 101:23 165:11 Sause 179:2 ~ Save 170:21,21 saves 148:23 savin2s,,,137:24 saw 46:6 89:22- 100:7,7 212:19 scary 86:7 schedule 196:2 SCHINDLER 1:16 3:4 4:2,17 22:14 26:13 35:2 41:14 46:18 48:2 51:10 54:9 58:6 63:22 64:9 65:16 69:22 76:11 82:14, 23 91:19 92:20 99:10 104:23 106:11 111:21 114:15 116:16,19 118:23 122:10 123:2,3 128:1,14 132:12 134:23 149:21 154:9 157:9 167:7 169:20 173:24 194:25 204:4 211:17 216:23 219:7 221:7 school 15:4,5 153:1 schools 149:11 172:3 173:7 science 29:3 40:24 75:11 102:18 107:2 157:5 210:14,17 219:3 Sciences 169:11 scientific 25:25 26:2,15,18 27:6 41:8 43:25 49:20,22 55:3,8 56:20 57:2,17 71:25 74:10,13 78:15 102:22 132:17 133:6,18 154:7 155:17,20 156:3,6, 8 157:10,14 169:15 172:21 190:8 209:12 scientifically 51:16 54:18 134:9 scientist 25:6 55:6,25 56:8, 14 102:20 193:13 scientists 26:9 29:1 44:3 57:3,5,17 66:5 71:22 72:10 73:14 74:7 75:1 107:4 154:1,9,13,20,25 155:8 164:13 172:2,23 173:2,6 190:9,11 215:5 scores 14:5,8 screen 144:19 scroll 149:6 scrupulous 175:6 scrutiny 181:6 sea1221:20 seat 74:20 sec:ond 51:17,21 111:12 128:10 130:1 149:5 174:11 188:8 189:23 192:25 193:4 204:3 secondary 70:25 secondhand 71:10,17,24 72:8,20,23 73:4 74:17 75:2,24 76:16,22 77:21 80:9,18 109:2 127:5,10, 14 129:18,25 130:25 131:5,5,10,18 132:6,13,18 133:19 168:5 214:9 section 137:2 189:20 217:13 sees 11:.7 179:10 segment 18:1 204:23 205:14 segments140:24 sell 6:23 7:7 21:14,18 28:12 115:17 119:19 150:8 170:16 179:23 197:14 208:5 selling 105:3 115:22 164:15 168:8,10 198:10 selLs 28:21 40:7 88:9 seminal 49:10,13 senior 194:4 Senkus 193:23 194:4 sease 11:15 14:2 23:11 35:21 40:25 43:10 50:3 94:3 103:2 104:9 127:17 128:5 139:4 142:20 154:7 155:4 sent 150:12 sentence 51:25 118:8 135:24 149:5,17 174:11 188:19,21 189:22 190:22, 25 193:6 216:23,24 sentiment 50:15 sentiments 50:9 52:1 separate 12:4 September 125:15 series 130:6 170: 8 174 :24 serious 51:24 52:10 117:15 serveral 180:17 Service 74:21 169:12 214:22,23 sessions 93:20,23 94:6,7,12 99:23 set 55:9 105:19 setting 94:8 seven 16:10,15,22 17:15,18 20:11,20 21:3 127:22,25 128:5 138:3 seven-tenths 182:20,23 183:2 several 52:25 76:20 93:20, 21,22,24 126:1 200:16 202:22 shall 201:14 share 5:20,25 6:15 9:5,13 12:1 37:17,22 38:6 70:20 96:18,19 98:10,12 138:19,19 139:5,5,15 174:14 177:12,21,23 182:11,14,15,17,20,22,23, 25 183:2,5 207:10,14,25 shareholders 44:19 She's 63:20 64:6 65:13 68:2 133:25 153:7 160:4 sheet 147:17 175:8 shift 207:8 shocking 61:14 SHOOK 2:12 shooting 179:11 shoppers 149: 10 short46:15 134:18 173:22 215:25 Shorthand 1:20 221:5,13 show 96:7,9 97:16 114:15 158:19,23,24 159:6 163:3 173:25 178:4 187:11 195:23,25 204:20 207:8 shown 25:21 115:2 135:25 136:14 139:22 157:6 158:17 190:11 - shows 132:18 184:8 207:10 Shredded 179:3 siblings 63:23 104:6 sidetracked 171:23 signators 53:25 signed 147:25 significance 32:8 45:7,21 166:9 significant 31:25 49:13 58:24 113:2 139:10 signifies 33:9 sigas 108:17 similar 128:5 190:16 191:21 simple 58 :5 137 : 8 153 : 25 201:18 simply 14:14 21:21 35:25 36:1,22 42:23 70:17 82:17 98:3,21,22 99:7 118:25 130:18 141:17 201:18 217:5 sincerely 88:1 93:15 sine 201:11 singular 83:12 sit 109:22 110:7 156:5 179:16 180:4 194:19 212:12 217:6 sitting 39:11 71:3 156:23 170:15 situation 20:18 57:9 69:4 71:6 83:17 101:6 103:22 105:8,11 113:16 150:14 163:9 164:8 186:6 211:3, 4 218:24 situations 129:11 130:20 six 16:4 126:19, 22 182:20, 23 183:2,15,23 201:9 slash 142:4 Slowly 114 :18 115 : 3 116: 3 122:3 small 30:12 192:10 smaller 73:23,23 Smell 127:1 smiling ?92:7 smoke 8:4 16:3 17:11,12 18:14 19:19,20,21,23,25, 25 20:4 34:11,16,24 36:3,20,22 37:10 42:20, 21 60:10 61:1 62:19 63:25,25 65:19 66:11,12, 20,21,21,23 67:8,13 68:14 69:2,2,5,21,21 70:22,25,25 71:2,5,8,10, 10,10,11,17,24 72:2,9,20, 24 73:4,25 74:17 75:2, 18,24 76:15,16,22 77:21 78:16 79:2,9 80:9,18 85:10,21 87:24 96:4 100:15,18,24 109:2 121:25 127:2,5,11,14 129:18,25 131:1,5,6,10,18 132:6,13,18 133:19 134:10 168:5 180:21 WORD INDEX Rosenblatt's - smol 51601 8379 "
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ANDREW SCHINDLER 181:21,24 182:4 184:1 19 104:3,15,20,25 105:4, 193:8,11,12 206:3,16 10,22,25 106:15 107:23 211:24 214:9,19,21_ 108:~,,] 7 109:12,17 111:1 smoked 15:9,10,12 16:16, 112:22;24 113--1,7 25 20:5,5 59:8 61:22 115:11,12 120:15 121:10 62:2,7 67:23 68:1 75:17 127:14 128:23 129:10 98:14 102:3 184:19 140:2 154:3,6,11,15,23,25 186:3 155:10 156:10 157:2,8,15 smoker 13:10 14:12,24 164:14 165:2 169:16,17 15:11 16:25 18:1,17 170:17 172:6 173:8 19 :11,14 20: 8 21: 3 34 : 5 177:17,25 180:7,15 54:1,10 59:3,7,8 61:3,17 183:24 184:10,14,25 66:17 67:2,5 68:13 91:21 185:2,7,12,16,18 186:1,5, 96:4 100:11 101:18• 23 188:14 190:5,9,10 138:7 185:17 198:13 193:22,23 194:11,22,23 209:5 218:6 219:9 198:1,24 201:11 205:2,4, smokers 8:3,4,7 12:15 16,21 206:11,19,23 13:8 14:1 32:21 44:20 211:25 212:25 213:1 45:1,20,22 46:20 48:4,13 217:11 49:9,19 50:2,10 53:7,9, smoking's 210:24 17,20 57:10 68:18 79:23 smoothness 13:21 80:15 84:25 85:8 87:17, sneaking 68:9 19 94:23 95:11,13,16,22, Snoopy 179:23,25 22,24 96:2,11,20,23,24 snuck 68:20 97:2,7,10,11,25 98:5,6,7, so-called 106:12 14 101:17,17,20 108:2,10 social 17:17 82:1,6,12 120:2 124:3 127:17 84:9,9,21 100:19 115:16 135:25 136:13 137:3,4,9, 119:11,15 10,11,21 138:4 139:6;20, society 65:8,12 79:7 81:8 21,23,24 140:19 142:5 82:1,4,11 83:8,14 84:19, 145:25 146:1,2 147:4 20 89:9 115:15,20 150:3,21 170:12 177:21 119:10,16 120:15 121:23 178:4,6,9 181:12,20,24 129:11 163:13 165:20 182:4 184:15,18 199:2,2 167:8 184:23 185:1 201:20,21 205:23 207:7, 210:5 216:7 10,19,25 209:4 216:8,22 sold 88:8 157:2 smokes 61:4 63:11 67:19, solely 86:1 20,24,25 104:3 somebody 13:14 14:19 smoking 12:16,17,23 13:11 14:15,15,20 15:2,7,9,15, 17,19 16:2,7,9,12,22 17:3,7,16,20,24 18:4,6,9, 12,14,15,19,25 19:4,6,8, 10 20:6,10,14,15,19 21:2, 6,7,10,19 22:1 23:8,18,20 24:1,8,17,22 25:7,18,20 26:3,12,16 27:4 28:10 29:8,13,17 34:9,11,14 35:1,3 38:14 39:14 40:2, 9,20 41:5,6,10,16,23 42:5,9 46:8 49:10 51:5, 23 52:9 53:1 54:3,19,25 55:11 57:23 58:7,14,15, 21,25 59:12,14,20,21 60:20 61:16,20 62:2 63:1,4,5,8,12,13,15,16 64:6,9,25 65:13,17,20 66:10 67:1,22 68:6,7,11, 24 70:5,5 71:4 72:3,5,6 76:8,13 77:17,25 78:6,24 79:14,25 80:8 82:5 83:11 84:19,25 85:5,8,23 86:10, 20 87:1,15,17,20 88:8,10, 18 89:3,6 91:23,24,25 92:1,2,14,15 94:23 95:2, 10,10,24 99:5 100:16,18, 22 101:13,22,25 102:13, 70:9 84:8 100:14,21 101:18 158:16 161:20 163:13,15,25 164:6 175:12- 184:3 186:4,7 somebody's 70:3,17 114:17 116:1 151:21 somehow 9:13 11:23 197:25 someone 5:10 21:25 25:3 38:9 65:16 66:8 68:25 69:24 95:2 101:21 149:21 162:14 181:16 184:3 199:21 someone's 63:24 69:3 sometime 18:8 somewhat 83:12 somewhere 7:2,9 9:4,19 15:4,5 16:10,12 17:23 18:7 59:19 85:24 120:9 175:20 182:3,21 183:2 187:22 202:9 Sorry 52:14 136:20 139:19 141:11 145:13 146:17 148:12 sort 9:15 16:3 29:21 115:14 122:7 sorts 56:12 196:3 sought 166:24 sound 1,86:7 sounds 209:1 214:2 source 139:21 142:1 146:10,,13 207:9 southern 204:19 209;20 221:2,5,21 stated 26:21 52:25 113:11 138:12 219:2 statement 22:18 23:13,18, Spach 152:23 153:4,5,6,24 155:13 156:2 20 24:7 45:1,19,21 46:1, 19 47:18 48:4,12 49:9,19 SPALDING 2:8 50:2,10,17,20,22 51:2 span 143:17 144:3 speak 198:12 210:5 52:5,21 53:7,15,19 57:10 74:12,19 83:2 116:8,15 speaking 38:25 80:5 96:6 117:11,12,20,22 124:14 98:4 126:4 160:18 177:9 136:13,16,17 154:4,19,19 201:18 155:22 156:22 158:13,15 speaks 129:1 170:12 172:9 173:12 special 144:18 174:15,16 175:7 177:10 spe .'cd'ic 43:23 50:12,15 201:17 209:16 216:8 67:6,7 102:5,9,21 112:6 217:13 179:6 specifically 56:22 67:10 statement's 155:4 statements 119:5 137:15 104:18 129:1 154:20 specifics 15:8 speculative 81:2 speech 71:13 spend 54:2,10 95:19,23 96:1 101:2,4 125:20 spending 142:13,21 143:8, 16 208:21 spent 29:4,7 113:17 166:21 173:10 183:4,4 spite 113:16 187:7 spoke 120:14 spokespersons 189:25 sports 90:8 144:20: squares 159:23 staff 15:23 stage 144:19 stamped 196:16 stand 50:20 51:1 standpoint 25:25 42:15 45:17 56:3 103:1,2 110:14 127:12 172:9 181:3 183:3,7,12 188:13 216:6 stands 19:7 41:10 STANLEY 2:3 4:6 22:22 37:2 44:8 47:3 52:7 55:21 74:18 81:12,23 111:13 117:8 123:4 125:2 130:5 135:6 136:2 147:15 148:14,20,24 152:6 160:5 170:22 174:21 175:22 196:4,19 204:6 208:11 211:10 215:8 Stanley's 192:16 start 17:16,19 21:2 68:7 88:20 99:5 136:10 137:10 139:23,24 183:24 185:10 188:14 started 4:7 15:1,7,19 16:9, 12 17:23 18:5 19:4,6,8, 10 20:20 60:16 63:16 67:1 68:9 124:25 170:10, 11 181:21 215:10 starting 63:18 112:20 146:1 197:11 203:16 starts 104:3 State 1:20 27:8 38:12 State; 76:18 77:15 78:1 80:5 169:14 204:20 206:20 214:8 stating 56:1 stationary 4:10 statistical 73:11,22 74:8 75:12 statistics 96:15 140:21 146:5,21,22,23,24 160:11 182:2 205:7 status 77:1,3 Steak 179:2 stems 137:8 still 16:4 54:21 56:6,16,20 57:12 77:2 92:21 113:4, 18 156:2,6,25,25 157:2 170:15 188:6 194:15 stipulate 152:4 stockholders 44:15 stop 16:7 17:7 18:12,15,24 20:15 59:20 88:5 186:18, 24,24 187:1,4,6 195:12. 213:1 stopped 16:2,21 18:2,3,6,8, 14,19 20:10,14,19,19 21:2,10 59:21 61:16,18 62:1 63:7 68:6 stopping 21:6 stops 63:12 store 149-12 stores 149:9,10,14,15,19 story 106:13 straight 179:17 180:5 Strategic 134:25 138:25 strategy 94:24 95:8,10,12, 25 98:13,20,23,24,25,25 99:4 streamline 215:22 Street 4:18 89:24 90:3 128:3 132:5,10 strength 138:20 stress-free 104:8 stressful 15:20 stretches 20:9 Strike 10:6,16 83:2 100:5 119:3 170:20 190:21 201:17 strikes 199:16 strnage 136:5 WORD INDEX smoked - strnal . 51601 8380 1
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ANDREW SCHINDLER stroke 61:7,8,10 stronger 139:5 214:14 strongly 27,•-22 175:16 214:25 struck 160:7 structure 84:9 105:18 students 153:18 studied 26:10 74:22 212:4 studies 25:22 40:25 41:2,2, 4 55:3 72:24 73:9,18,19 74:1 75:11 96:7,8,15 112:25 139:22 156:15 study 44:3 46:7 73:5 75:5, 8 142:1 146:24 147:2,8 149:6 207:2 209:12,15 214:15,16 stuff 141:10 stupid 99:13 181:5 style 208:22 subdivided 141:5,18 subject 26:18 55:15 149:3 Sweden 168:12,22 Sweetheart 65:1 switc]U6:11 97:8,10,25 101:14 137:127 switched 96:23,24 97:2 switching 137:21,23 138:17 139:11 sworn 4:4 220:18 221:9 syllable 125:6 system 107 : 5 162 : 2 197 :17 systematically 29:25 -T- ta , 4 205:9 206:7 207:5 208:15 table 35:6 194:7 tabs 204:6,7,8 206:13 talents 144:18 talk 57:15 70:6,16 72:10 151:10 152:7 193:1 89:21 90:5 117:23 subscribed 220:18 221:10 118:18 163 : 3 178:6, 8, 9 substance 110:22 216:4 181:12 198:5 215:21 substantia130:1 138:6 218:16 166:22 talked 26:9,11 68:21 80:13 substantially 31:6,13 94:22 155:22 184:1 137:22 186:7 200:5 substitute 47:20 talking 6:13 9:23 12:19 succeed 203:7 25:11 26:24 66:23 70:6, success 9:6,9,10,11,13 24 71:6,21 73:13 74:25 10:20 11:18 144:19 successful 12:9 96:14 148:20 202:19 successfully 144:13,16 suddenly 100:24 115:17 sue 77:8,11 sued 76:18,23 77:4,14,19 sufficient 91:22 215:6 suggest 87 :1 115:19 181:11 suggested 162:17,18 164:9 190:2,7 213:18 suggesting 32:19,22 33:14 166:2 186:15 suggestion 33:6 suit 76:21 Sullum 107:7,8,11,15 summary 72:24 supported 214:12 suppose 78:10 130:19 supposedly 156:1 Surgeon 22:1,4,6,10,12,15 88:17 89:23 90:6,7 102:5 107:4 110:13 120:20 121:19 124:9 128:15 130:21 133:20 134:6 138:14,23 140:12 162:9, 21 181:16 182:13,16,17 183:1 205:25 206:1 209:7 214:15 talks 140:20 tape 90:14 91:20 196:5 tar 28:1,8 29:14,16,22 30:2,6,10,11,14,17,19,25 31:2,6,9,12,13,16,17,20, 21 32:20,20 33:2,8,10,13, 14,17,19,22 34:3,14,15 35:1,8,11 36:23 37:18,20 38:1 42:14,14,21,21,22 43:4,4,8,8,14,14 110:13, 20,24 166:8,9,15 168:4 target 162:2 181:2,15 targeted 179:24 180:14,20, 23:5,6 34:7 38:13,21 21 181:12 39:17 41:16 65:8 72:12 targeting 149:23 150:21 78:14 80:22 84:5,15 targets 180:6 167:8 169:13 210:3,23 tars 35:1 211:16,22,24 212:6,12 task 217:16,19 surpass 9:14 taste 13:25 14:1,2 110:14 surprise 160:20 161:5,9,13 tasted 11:25 surprised 192:6 tax 158:9 159:22 160:2,20 surrounding 84:19 109:9 161:11,14,14,16,19 210:14 taxation 115:10 survive 174:13 177:11 taxes 159:17 SUSAN 2:4 47:8 148:12 152:9 189:8 192:2 suspect 85:3 206:21 suspected 51:23 52:10 Teague 176:8,13 196:21 197:6 198:19,19 200:10 201:3 202:8 Teague's 201:22 technical 21:25 40:13 41:15 56:3 103:1 techniques 94:25 Ted 94:15,20 television 90:7 163:3 telling 18:16 31:3 32:3 40:11,12 66:22 84:12,14 86:19 97:23 101:1 106:18 125:11 127:3 133:5 166:11 167:20 169:8 171:12 186:18,24 212:1 ten 48:25 98:8 101:7 103:6,9 110:10,11,17 143:8,10 180:25 192:13 212:7 tended 30:7 tendency 137:12 Tennessee 168:16,22 tea.sion 73:19 term 60:1 139:7 175:19 terminated 164:8 terms 6:6 7:13,13,15 8:10, 24,24 9:20 13:21 25:25 29:13 30:25 42:16 43:12 48:13 52:16 57:21 68:17 73:17 84:20 93:21 104:17 110:11 118:23 119:18 130:19 140:23 141:1,18 146:8 162:20 166:9 172:14 190:16,17 198:24 217:11 • terrible 87:25 169:3 test 12:14,18 13:8 168:11, 15,20,21,22,24 tested 168:7 testified 4:5 41:24 104:13 106:2 128:10 131:8,14 154:5 194:21 195:16 216:17,20 testify 106:9 128:13 132:1 • 195:11,20 testifying 106:23,24 te.stimony 51:2 52:15 69:17 97:15,20 98:2 102:12 190:15 217:4 218:15 testing 12:20 13:1,3,5 14:8 tests 12:11 text 116:25 118:18,19 119:1 123:12 194:6 Thank 44:12 140:14 148:8,24 189:8,17 204:11 219:18 themselves 57:5 87:24 109:10 128:22 129:10 theoretical 9:15 81:2,17 82:8 83:9 104:22 164:20 213:12 theoretically 164:25 theory 38:2 140:8 206:6 thereafter 221:10 Therein 196:14 thereof 24:21 25:2 they'll 13:20 they've 79:15 109:1 158:23 179:24 thick 134:24 third 112:20 thirdly 128:13 though 10:16 114:10 124:6 178:7 212:9 213:2 - thousands 77:24 78:4 151:20 three 18:21 20:11 21:10 59:9 61:20 62:11,13 63:2,17 71:4 73:20 102:3 105:10 114:13,15 115:25 122:5,25 134:1 135:20 136:4,12 182:9,25 207:13 219:8 throughout 86:9 104:14 113:8,162:3 174:16 219:11 throw 213:13 thrust124:1,15 126:5,13 127:14,19 128:4 199:9 times 45:3,10 46:3 53:1 73:20 112:3 120:12 122:20 125:21 137:22 140:22 149:16 160:8 timing 196:3 tiptoeing 90:22 title 53:21 110:25 127:1 129:18 131:17 132:6 134:2,3 137:2 144:11 145:24 205:9 titled 193:22 titles 188:3 Tobacco 4:22 5:4,13,19 9:20 11:22 14:11 27:3 28:12 44 :14 45 :17 51:12 52:2,23 54:11,20,22,23 55:2 56:23 57:1,16 70:25 77:5 78:17 79:1,8,9 82:22 101:3 104:24 105:19 106:14 111:2 113:5 123:22 131:3,4,17 135:1 146:13 149:23 152:25 153:19 155:23,25 156:24 158:1,4,8 159:9 160:18,23,24 161:10,17 162:10,13,14 170:13 172:1,13,20 177:10 188:23 191:8 194:12,13, 14,19 f95:10 196:13 202:18 203:24 206:13 209:14,23 210:8,12,16,18, 22 211:2,5,14,15,18,24 212:11,14,24 213:1,21 214:7,19 217:14,18 219:13 today 5:14,16 6:21 8:22 15:13 17:25 19:12,14 31:13,13 50:11,20 51:6, 12,23 52:9,22,25 54:21 55:13 56:16 57:12,15 69:18 70:7,21 80:21 81:13 83:10,23 86:20 88:9 89:9,21 106:22 108:15 110:9 113:23 131:5,12,15 143:16,23 155:23 156:5,24 157:4 159:17 160:5 166:6 167:13 171:12,13 177:19 WORD INDEX stroke - tod- 51601 8381
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ANDREW SCHINDLER 178:2 182:11,19,22 185:3 28:9 29:13 32:15 74:7 196:24 216:14 217:6,18 83:5 96:11 101:16 108:4 today's 93:-1-9 109:JA 130:18 170:16 toes 185:10,15 186:22,23 180:2--203:4 - together 62:16 157:23 turn 140:1 142:7 165:24 told 35:7,22 50:6 59:17 60:23 68:10 98:19,23 103:3,4 106:25 184:16 186:1,8 192:22 tomorrow 159:18 219:13 tone 123:25 top 112:19 116:9 125:3 126:10 138:3 140:16 145:4 172:3 175:4 180:25 207:6 topic 193:5 TORRES 2:10 total 5:19 6:6 57:18 84:20 86:3 93:21 115:10 116:17 138:13 182:14,15, 20 203:6 205:16 207:13, 14 totally 11:20,20 18:25 55:8 62:12 63:23 117:17 138:21 176:17 180:4 tough 82:13 toward 50:16 101:10,13 115:21 116:2 201:12 216:10 towards 115:14 toys 153:21 tracking 75:13 trade 157:21,22 158:1,5,8, 20,23 159:12 160:19,23, 25 161:11,18 180:16 trail 91:5 train 39:1 transcription 221:12 TRAURIG 2:14 tremendous 8:25 56:20 77:16 156:1 trend 139:12 205:12 trends 205:1 trial 195:1,4,22,23 tried 69:11 88:2,5 tries 141:22 triumph 8:13 9:1 trucks 129:1 true 21:14,15,16,21 22:3,4, 15,16,19 23:13 78:10 82:23 83:4 99:14 110:16 115:4 117:17 136:16,25 140:10 142:15,18 154:4, 19 157:12 164:2 171:20 174:15,16 177:10 183:18, 22 204:24 205:6 214:5 221:12 truth 112:25 201:18 try 69:4,24 95:23,25 96:3, 12 97:24 99:5,15,16 102:25 108:1,9 113:25 120:2,3 121:13 124:2 127:16 128:6 149:15 156:8 164:11 197:24 198:1 204:12 trying 8:4 13:9 27:8,24 turned 136:3 Twenty-five 196:24 199:25 Twenty-four 16:19 Twenty-three 67:18,20 two 5:2 10:23 12:4 20:7,9 45:3 59:9 61:20 67:16,16 71:3 85:2 88:18 104:3,10 111:8,18 114:3,16 116:7 135:7 136:6 137:8,25 139:13,13 145:20 182:25 205:15 215:24 type 7:4 43:25 94:5 130:22 137:24 197:20 types 7:1 41:2 44:1 128:23 163:16 typically 13:6 14:6 157:22 -U- 1 U.S.A 159:10 ultimate 82:15 188:9 ultimately 55:11 96:17 unable 89:3,13 unavailable 145:8 unconnected 27:3 under 11:9 32:25 38:12 69:3,24 70:13 98:15,25 106:9 117:13 119:19 139:16 142:3 150:9 153:15 177:14,16,25 178:5,6 179:14 180:7,14, 20,21 181:4,8,12,20 193:5 207:7 208:6 217:25 underage 68:15 70:9 150:3 181:24 182:4 underaged 150:21 184:8 underlying 55:4 understand 5:23 13:9 24:5 29:20 30:4 32:2,14 37:18,23 38:7 41:7 55:18 63:9 65:22 71:21 72:9 73:5,17 74:2,7 98:19 137:18 138:14 173:8 197:21 215:1 understanding 4:13 , 8:1 10:10,15 25:5,6 41:3 49:7 53:11 55:2,13 56:4, 15,19,23 60:19 69:19 73:13 76:5 77:18 89:1 120:25 146:9 150:8,10 159:11,24 165:23 182:5 understands 146:7 understood 23:17 40:11 69:17 97:9 190:15 unfortunate 153:25 218:23 United 76:18 77:15 78:1 80:5 169:14 204:19 206:20 214:8 unless 122:10 178:10 unrelated 18:25 19:1 untrue 183:20 unusual 9: 21 61:14 86: 6, 11 _ Update 193:22 use 89:14 96:6 99:4 146:13 153:20 184:13 used 8:11 121:1 123:25 144:13,16 173:7 175:17 uses 179:23 using 74:19 92:3 146:7 179:25 199:2 usually 8:11 Utah 75:17 -V- vague vagueness 128:13 valid 214:25 variables 41:1 varied 216:22 varies 7:10 variety 20:1 24:21 61:8 79:19 85:14 109:13 110:22 162:8 179:4 various 7:1 10:5 82:6 84:15 94:9 107:23 120:14 140:21,22 vary 6:25 vast 66:6 versa 96:24 version 47:4,10 versus 208:22,24 209:1,3 very 8:22 9:21 27:22 29:9, 24 44:12 56:4 58:5 73:22 87:10 90:18,18,22 94:20 96:5 100:8 117:14 145:20 149:4 168:4,4 174:8 181:18 184:13 186:8 190:4 202:21 209:16 211:13 213:11 214:18 vice 96:24 vice-president 187:25 video 162:2 VIDEOGRAPHER 4:11 Viet 15:16,19 16:5 17:3,4 20:18 view 13:25 14:1 22:25 23:8,17 24:4,7,14 25:17, 20 26:3,5,6,7,8,8,22 38:13 39:12,13,16 40:5, 13 46:5 51:5 53:5 65:16 69:1,20 70:4,14,19 89:6 91:19,21 97:24 99:6 105:25 106:6,9 113:18 115:7,23 116:17 119:12 121:9,19,20,22 129:5,8 139:13,14 155:2,6 161:17 165:20 184:25 186:4 200:2,8 209:19,20 217:10 219:2 viewed 139:8 200:3 210:12 viewpoint 219:10 violate 150:14 violated 150:7 151:13 violation 151:17 violent 90:8 virtually 168:5 virtue 34:7 105:18 virtues 198:13 visible 144:19 vision 162:3 visualization 116:8,11 vodka 103:5,9 volume 28:14 139:16 204:21 208:21 voluntarily 84:16 voluntary 127_17 -W- Wait 22:21,21 79:5 81:22 111:23 117:6,10 122:14 204:3 206:9 walked 108:13 Wall89:24 90:3 128:2 132:5,9 wants 186:5,24 warning 21:13,23 22:1,5, 11,16 23:4,15 34:7 38:13 39:18 41:16 65:9 81:10, 14 83:19,19,21 84:22 warnings 21:17 38:22 80:17,20,25 81:7,18 82:2, 18,24,25 83:16 84:6 wash 96:7,9 97:9 Washington 74:16 watch 186:10 weak 185:20 weaken 205:18 weakened 214:17 weaklings 92:5 WEBER 2:6 4:6 8:14,16 9:2,25 10:11 11:11,13 14:16 21:22 22:21 23:23 27:7 30:18 32:10 34:17, 20 35:4 36:8,25 37:4,12 38:19 40:15 42:25 44:8, 12 45:5,23 47:3,12,15,23 52:3,12,14 54:4,14 55:17, 20 57:13 58:1,9 60:14 64:2,17 65:5 69:6,11 70:1 7t:13 76:3 78:19 79:5,11 81:11,22 83:1,25 85:18 86:12 87:12 90:12, 15,19 91:1,4,8 92:8 97:14 98:18 99:2,17 103:12,14 105:6,13 107:12 109:4 110:2 111:9,12,23 113:19 114:3,7 117:6,10,19,23 118:1 119:3 121:17 123:1 124:24 125:7 126:7 128:8 130:1,5 131:24 135:5,9,12 136:2, 7,10 140:12 141:8,14 142:22 143:1,5 146:6 147:14,17 148:5,8,12,16, 19 149:25 152:4,16,20 158:11 159:5,15,21 160:4,9 165:15 169:23 170:20, 25 171: 3 172 :16 W ORD INDEX 516 01 8382 today's - WEBEI 1'
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ANDREW SCHINDLER 174:3,18 179:20 182:12 121:1 122:7 123:4,25 133:24 134:1 137:6 185:21 189:1,8,14,17 124:7 125:7 133:3 142:13 143:9,10,13,-14,17 192:1,5,15-19~ 5,13 144:j1 156:21.14 157:4 165:6 196:1,18 199:4 204:1,3, work 228:1 29:13,25 39:22 166:12 167:4 170:15 11 208:11 210:1,10 42:1 44:4,22 53:4 73:10 172:8,12,25 173:10,11 211:10 213:8 215:8,15,23 216:15 218:13,22 219:18 weeks 45:12 93:22 weight 186:13 Welfare 146:11 western 11:5 Wheat 179:3,3 Whereupon 46:9,15 92:18 111:17 114:11 123:17 124:21 126:20 127:23 129:15 131:20 134:18,20 147:11 152:1 159:2 173:22 174:5 187:13 189:3 191:23 193:17 196:8 203:10 215:25 whited 175:7 WHITING 76:11 whole 11:5 22:22 26:12 29:8 35:7 45:6 46:8 49:10 53:4 54:8,10 66:7 82:5 85:13 121:23 125:1 126:5,8 166:24 198:24 199:16 wholly 197:25 218:14 widely 50:3 wife 18:24 61:1,4 62:8,25 63:11 64:4,22,24 65:7 66:9 68:10 88:13 160:1 215:21 Williamson 106:20 189:19, 25 191:6,16 Willow 152:25 willpower 91:22 winners 172:4 173:1 Winston 5:16 6:22,23 8:11,21 11:21,23,25 12:16 13:5,7,11,15,19 14:9,22 81:15 96:4 167:25 207:14 79:15,23 80:15 83:9,15 84:6,10,20 94:4 120:3 121:13 124:3 127:16,20 128:6 129:6,9 162:3,15 165:3,24 166:4 191:6 worked 31:11 38:3 39:25 219:9 yellow 197:3,4 75:19 133:23 165:5 176:14 working 17:21,22 22:9 York 107:21 120:11 122:20 125:21 153:1 young 139:5 149:3,9,12,19, 30:3 31:8 33:20 52:18 24 80:22 151:19 176:5 younger 95:13,17 135:24 178:16,22 201:25 211:11 136:13 137:3,3 138:4,7, 218:1 18,20 139:20 140:1,19 works 57:16 142:5 145:24 world 75:22 82:8 83:5,6,9 youth 150:4 174:2,14 84:3,8 144:12 164:13,20 177:7,8,12,13 179:14 165:11 166:1,2 169:10 180:11 182:16 206:25 207:2 210:4 youthful 100:9 worldwide 26:14 worried 34:6,8 85:9 worry 131:7 wrap 208:12 write 56:9,10,11 writes 152:11 writing 202:1 written 65:10 90:4 153:19 175:3 wrong 77:9,21 148:13 151:16 208:14 wrote 175:24 176:3,4 199:18,24,24 202:2 213:15 -Z- zero zooming 4:99 -X- eroxmg 1 :1 -Y- 176:21 178:8,8,10 180:18 183:1 186:3 196:24 199:25 200:1 202:10,10, 22 205:8 208:1 212:5,8 Winston-Salem 4:18 135:2 Winstoas 14:1 19:25 20:5 88:3 wires 73:19 wisdom 180:19 wish 71:11 199:17 wished 184:16 withdrawal 89:20 witness 4:3,9 30:23 60:18 117:13 147:16 152:21 189:16 190:14 195:4 196:20,23 204:10,17 221:8,9,10,14,20 year , 4 61:7,7,10,11 67:20,24 68:1,9 84:25 85:2 90:4 92:25 98:8 101:3,7 141:24 143:22 144:3 178:8,17 179:18,24 180:2,23 183:15,23 195:2 207:11,19 214:20 years 9:24 10:3,8,18,21 11:24 16:10,15,22 17:9, 15,19 18:21 20:11,12,20 21:3,6,11 25:22 28:2,8 29:15,19 30:6 31:7,14,18 witnesses 195:7 33:15 35:8 38:1 47:7 wives 63:23 48:25 49:11 59:22 61:17, woman 87:24 24 62:11,13 63:2,5,12,17 Women 144:19 66:23 67:7 70:3,3,4,17 wonderful 104:8 75:20 81:29 82:4,7,7,11 word 36}4,6 47:14 50:15 83:10 84:23 96:22 97:4 54:7,7 89:8 91:17 120:21 98:4 101:7 102:4 103:6,9 122:10 125:6 132:21,22, 104:3,11 105:2,10 23 133:7,8,11,14 144:6 110:10,11,17 112:21 words 31:20 48:8 68:25 115:16 119:12,23 126:2 WORD INDEX 51601 8383
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:C 1984 R J Ae~Gaf TppaCCO Ca nweh Can an open debate 0 a• The issues that surround smoking are so complex, and so emotional, it's hard to debate them objectively. In fact, many of you probably believe there is nothing to debate. Over the years, you've heard so many negative reports about smoking and health-and so little to challenge these reports-that you may assume the case against smoking is closed. But this is far from the truth. Studies which conclude that smoking causes disease have regularly ignored significant evidence to the contrary. These scientific findings come from research completely independent of the tobacco industry We at R.J. Reynolds think you will find such evidence very interesting. Because we think reasonable people who analyze it may come to see this issue not as a closed case, but as an open controversy We know some of you may be suspicious of what we'll say, simply because we're a cigarette company. We know some of you may question our motives. But we also know that by keeping silent, we've contributed to this climate of doubt and distrust. We may also have created the mistaken impression that we have-- nothing to say on these issues. That is why we've decided to speak out now, and why we intend to continue speaking out in the future. During the coming months we will discuss a number of key questions relating to smoking and health. We will also explore other important issues including relations between smokers and non-smokers, smoking among our youth, and "passive smoking" Some of the things we say may surprise you. Even the fact that we say them may prove controversial. But we won't shy away from the controversy because, quite frankly, that's our whole point. We don't say there are no questions about smoking. Just the opposite. We say there are lots of questions-but, as yet, no simple answers. Like any controversy, this one has more than one side. We hope the debate will be an open one. RJ. ReynoldsTobacco Company
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^. Government is proposing to make it illegal for you to smoke in your own home anyNme a workman or repairman visits. it's part of a massive effort to prohibit smoking ~ wiit .iiow the Government to make decisions for individual citieens that have atwayf been matters of personal choice. ""COM E OUT SLOWLY S I R, WITH YOUR CIGARETTE ABOVE YOUR H EAD." The situation above may seem implausible at first. But right now, the Government is trying to compare cigarettes to heroin and cocaine. They are also proposing to entirely prohibit smoking in public places. company cars, trucks and any place of business entered by ten or more people a week. These same proposals could also affect your private home as you could be forbidden to smoke anytime a workman or repairman visits. In addition, a cigarette tax increase of 300% is being considered.' This is nothing less than an attempt at tobacco prohibition, something that will have serious mpGcations for Americans. Earlier this year, the Canadian Government was forced to rollback the exorbitant cigarette tax they introduced just two years ago. Organized criminal gangs controlled a huge smuggling market. creating a climate of fear and violence throughout the country. "Smuggling is threatening the safety of our communities... and the very fabric of Canadian society". the Canadian Prime Minister said when he announced the tax reduct ons. In 1993, up to two- thirds of the c garettes smoked in Quebec were purchased itlepally.•* California, which raised its cigarette taxes to fund health education, reports that 7% of the entire fobacco market consists of illegal cigarettes."' Higher taxes will only make things worse. Despite the Government's denitfs. the pro- posed tax increases and the avalanche of other anti-tobacco legislation are all simply forms of backdoor prohibition. The end result, should this legislation pass. could be disastrous. How will they enforce the law? Will the homes of'known' smokers be raided? Will we be encouraged to inform upon our neighbors? Has the Government g ven any thought to the consequences? This opinion is brought to you in the interest of an informed debate by the R.). Reynolds Tobacco Company. We believe that the answer to most smoking issues lies in accommodation, in finding ways in which smokers and non-smokers can co-exist peacefully. We encourage dialogue and discussion that will solve the issues without resorting to Government intervention. _ For further information please call toll-free 1-800-366-8441. :'*~ Y~f19Lt1~ -Irw ~il1~kdANt;~G1~tl
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Democracy's Victory In South Africa Free At Last: Mnmb•ho mal A VC Crl.brutr Trinnq4 Nationwide, Reins on -~-I.S. Smokers' Freedom Tighten W H E R E EXAC T LY I S THE LAND OF THE FREE? °se days the cry of new-found freedom is heard •r the world. Many countries are rejecting repressive es and embracing self-determination and the Ples that we, in America, hold so dear. But, with recent proposals, our own Government may be a serious step backwards. c Government is attempting to prohibit !ng in America. They've proposed a substantial icrease to make cigarettes too expensive for people to afford.1 They've introduced regulations :ould lead to a total smoking ban in private as ;s public places in some circumstances.2 ;ardless of their reasons, both their tactics and Ind result they are seeking are threats to our oms. The individual rights of not just the 45 n Americans who choose to smoke, but other -icans as well, could be compromised. they are successful in their bid to abolish ettes will they then pursue other targets? ,ol could be next. Will caffeine and high-fat foods follow? Then books, movies and music? Wf knows where it could end? The time has come to say, 'enough'. The time h come to allow adults in this country to make thc own decisions of their own free will, witho. Government control and excessive intervention. T! time has come for a little common sense to prev and for us to once again deserve to be called t! land of the free. This opinion is brought to you in the interest of informed debate by the R.J. Reynolds Tobac, Company. We believe that the solution to mc smoking issues cah be found in accommodation. finding ways in which smokers and non-smokers c co-exist peacefully. And we encourage dialogue a discussion that will help solve the issues withc resorting to Government interventfon. For furtF information please call I-800-366-844 I. 51601 8387 EXHIBIT NO.~L. R. APPLEBAUM
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I•idy Ov.rhplaer. P.lew M-ro "1 have a nower b-mess. and I don't thmk A't fair (or the ('invernm^nt h) tell me that I canI smol'e in my Own [hop / aay 'Give us a break'. They shouldn't control everythinq we do" Andrew Bontie. Oklahoma. "I think anytGme the Ciovernment intrudes into our personal lives it's detrimental to society. They shouldn't tell us what to do, they should stay out of our personal Iives:' WiIham Buhl, Ilhnon. "I thmk it should be up to the individual businesses. and thelr patrons. to deude what they want to do about smokmg. The Government should keep their hands off" EVERYWHERE WE GO, AMERICANS ARE TELLING US THEY WANT THE GOVERNMENT OFF THEIR BACKS. These days, the Government is making more of the decisions that should rightfully be left to the individual. More than 125.000 Government employees are involved in reguiat,ng the American people, working on more than 5.000 regulations at any given time, at an estimated cost to the taxpayer of more than $500 billion.' And from Savannah to Seattle. Americans have told us they've had enough. "On The Road For Rights" has made more than 125 stops in cities, towns and villages across 15 states. We've spoken to thousands of ordinary Americans. smokers and non-smokers. They've talked to our video cameras. Signed petitions. Everywhere we've been, we've heard the same heartfelt cry: "It's time to get the Government off our backs." Among the major rights at stake is the freedom of adults to choose to smoke. The Government is currently proposing to prohibit smoking in public places, company cars, trucks and any place of business entered by 10 or more people a week. Your right to smoke in your own home could also be affected. as you could be forbidden to smoke anytime a workman or repairman visits.2 However. a recent poll confirms that 9 out of 10 Americans believe that adults should have the right to choose for themselves whether or'not to smoke.3 We believe the solution to most smoking issues can be found in accommodation, in findings ways where smokers and non-smokers can co-exist peacefully. Through dialogue and discussion, we can agree on solutions without resorting to Government intervention. These opinions are brought to you in the interest of an informed debate by the R.J.Reynolds Tobacco Company. For further information please call 1 -800-366-844 I . 3 I ,ltw _-±~'8 ®
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Marts Kramer. Cedar Creft. NM. Is a nen-smoker. Sut she i anigrr with the Go.ernn.ent i decisien to pursue more and more kNslatlon against smokers. `"THE SMELL OF CIGARETTE SMOKE ANNOYS ME. BUT NOT NEARLY AS MUCH AS THE GOVERNMENT TELLING ME WHAT TO DO." "Today our Government is attempting to influence personal choices in ways I don't think they were ever supposed to. Their plans to further legislate against srnok- ing representa a dangerous attempt to interfere with our personal lives and. as an American citizen, it concerns me. If the Government continues to be successful, smoking will be banned. "The role of Government should be to inform. They should just give me information and allow me the freedom to make my own decisions. I would much rather have dialogue. I would much rather try everything else before we pass a law. We're going to ban something? Outlaw something? That's not what the United States is supposed to be like. "Personally, I dislike smoking. But I acknowledge it's a personal pleasure and there are appropriate places to smoke. Polite behavior dictates that you don't smoke during dinner. You don't smoke in someone's house if they don't want you to. "If you don't smokt, it is ill-mannered to go t.o and tell som,~body that what rh,!y're dr)inp, is d'•F,uairq My smoke when we're eating and when we're in the car or somethinq she opens a window, Thinking, reasonable adults accommodate one another• They certainly don't need the Government resolving that issue for them. "We need to be careful about passing legislation. It's easy to pass, but very difficult to repeal. These issues deserve a lot more dialogue, a lot more thought. Legislation simply puts more power into the hands of the Federal Government and I just don't feel comfortable with that I think there are many Americans out there that will see Government intrusion into our private lives and reject it:' This opinion is brought to you in the interest of an informed debate by the R.J. Reynolds Tobacco Company. We believe the solution to most smoking issues can be found in accommodation, in finding ,.wys in which smokers and non-smokers can co-exist peacefully. And we encourage discussion that will help solve the issues without resorting to Government intervention. For frn-ther informition plPase call 1800-366-844 1. 00 W CID t0
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IS-_THE GOVERNMENT GOING TOO FAR? Believe it or not. there is a possibility that the gov- ernment will be successful in its drive to get smok ng banned in America: Obv ously this amounts to prohi- bition. If this sounds uni kety, consider the following. The government is currently proposing to ban smoking in any build ng being entered regularly by ten or more people at least once a week (which includes just about every workplace in the country) unless a specially vent lated and separately exhausted area specffically designated for smoking is provided. Obv ously this regulat on virll apply to every restaurant and bar in America. But that's not all. Government regulation could also affect your home. Your right to smoke in your home could be curtailed anytime a delivery person or a service person was present. Private vehicles could also be affected. If you are a trucker or a salesmnn you may not be perrnrttcd to smoke in your truck or car even if you are alone. The time has come to say. "enough". The time has come to allow adults in this country to make their own decisions of their own free will, without government control or government intervention. This opinion is brought to you in the interests of an informed debate by the R.I.Reynolds Tobacco Company. We believe that the solution to most smok- ing issues can be found in accommodation. in finding ways in wh ch smokers and non-smokers can co-exist peacefully. And we encourage dialogue and discussion that will help solve the issues without the government mandating behavior. For fu'ther information please call us at 1-800-366 8441. e+ns~r~a
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SECONDHAND SMOKE: HOW MUCH ARE NON-SMOKERS EXPOSED TO? With all the discussion today about second- hand smoke, you may be interested in how much you are exposed to. The answer, in our opinion, is very little. Expressing exposure to secondhand smoke in terms of cigarette equivalents is one way to gain a perspective. For example: I) In a month, a non-smoker living with a smoker would, on average, be exposed to second- hand smoke equivalent to smoking approximately 11/2 cigarettes.' 2) In a month, a non-smoking waiter who works eight hours a day, five days a week in a restaurant would, on the average.be exposed to secondhand smoke equivalent to smoking about 2 cigarettes.' 3) In a month in a modern office where smok- ing was permitted, a non-smoker sharing an office with a smoker would, on average, be exposed to the equivalent of smoking about 144 cigarettes.' There are many ways to calculate cigarette equivalents, and no method exactly predicts the precise amount of secondhand smoke a non- smoker is exposed to. Also. cigarette equivalent calculations are not necessarily relevant to an assessment of the potential risk from secondhand smoke. In our opinion, secondhand smoke is not the same as the smoke a smoker inhales. What we are saying is that there are always two sides to every argument. Both sides need to be heard and evaluated in order to make an informed decision. We believe that the solution to most smoking issues can be found in accommodation. There are ways for smokers and non-smokers to co-exist peacefully. And we encourage discussion that will help solve the issues without resorting to Govern- ment intervention. Clearly common sense should tell everyone not to expose very young children to high levels of secondhand smoke. As it relates to smokers. in our opinion smoking is a risk factor for certain diseases. At R.J.Reynolds we believe the choice to smoke should be made only by adults. This opinion is brought to you in the inter- ests of an informed debale by the R.J.Reynolds Tobacco Company. For further information please call 1-800-366-8441. TOGETHER, WE CAN WORK IT OUT .r.Ai f,•)I ptFn ~ir..1 A V,/AIISriEr) RfvtF.w OF n"FR4C.E SMOYiNG ARFA n[At1irFMFNrS 3F viCOIiNE ONF Of fNE fOMVONfNTS U;fr) 9v MANY aESFARCJIERS TO OEVEInV A SFN:F nt t,tl MAr.llill/f)F "• 'rrn,iDN+NO cMO.E ErrpcfIaE l'SF Of Of/liR COMVOIINDS MA'f r.IVF DIFFFRENf RESUIfS. AND AN INDIVIDI)AES ACfUAI E<Pf1SU*F NAY VARY S1(,!IIfICA"IfIY
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/ t1IlI'USI -----~ 1 ~ 11~mP.eR -- - - =~ ---.j 1 ~IIII/l,lill~r111 . ti.l/l l l.lll(aycl, •Sllr~. 1 .rllln.n. ~ lll,lll/lilll',. lt/ • t•_5.tlv s;v.t\U ) Ci;irrlnc"%rls tr„/, I ;'ltl 112 •rct1 :`INI~ti 1 _ 1...,. ;v/l: r.. allal/•> lallalau.lull; Il ~I:Irt II ll. LuJ Ik:ll Ih.• JIuIK.w St:ulA•y alakc "uu'1 >iKn/ilcaul" tv Ihv cuwp:uly. "I'ax-Esecripts I W S:rlth blkluli Ip•:rrh. b'1n., IsaMd SY: 1u111iun u1 nupILYC/1M9d IIWNIS Jt y1Ck15 r:lllglllj', II'qll G.': J iu UKI tn 10211 5 lu :'W1. Tllr u11wIJ W/b aur 1:IM ri'alcrJay lolaltd aLull $13.3 mil~ liul• :Ircurrliur lu Wdlkuu It IklnKk & l.b.. 000 t uulk•rwnter. kUuly'> IlrvtzlwY $rr' rlcl• luc. s1:IJad lhc isulr alukl¢'A. ••Y.p,rYVSS a L.f ',1 ,r I~ ~ ahYYS3.7 Y'.\ '/l /i /II .LqNYYS5.1 Il•.. 'N M•: .1'• wY.4nv/•SS.1 Iti 'q W, _-I /Ir.Ne. INl wrMw/ ww.w.M W arrM wkrM. 1Viuncrs Glr p. 11'arrauts N ASI IV lU.li•'I'rml.- WNuwra Cul'p. saxl na IqurJ vlltad lu rxlctlJ lu 1.Itv. !s frual Jlllll• ~II lI1C CxINrLlk/ll Jil! 1111 Ila w:lrralll> uoralnuJior lu prrl:k:ur culuulul >tu'k. 'I'llc wanauls can i/e axcni>rJ e1 57.75 a >6are. The cuulurny's tvlnnul/l stuck ckatd '1'llt•sJay at it/.7:• Ilowu Y.'o cr•nls. IVimKrs ulw•I~Irs MrY. Wimlrr's Cluckt•u S lliar:mis Itestaumnls a1W Wvuly's llld M':uhn111eJ tlambllrrrr Ittytaur.rnls. N..IrR aulqaa ll/ . ll.u,~a• w,ll...l r,.dn c+I..I .,,1•.LU.ll.d Il,raa>I Iw•u:dlic~ r.'rpu/a./4M e,dr ..lul.haral. Msroury Ssvings w.FwYJ. Irwl.lllR1w11 I:rL.I. I.'.r Il11/ fTl.ril • IY.Ia.d.1....Ir411INZM1 1'..1M.Jr M...IIIIr11Y1{M -1nM)>J11M1Y11. I IwV I]rnM.~w.uxA Oen M11snwSsrinps 1w7•,:-4r11M14 1 wuaau~.o>e. Second-Hand Smoke: The Myth and TheReality. -fVlany non-smokers are annoyed by cigarette stnoke. "l'liis is a reality that's been with us for a long time. Lately, howevel; nlany non-smokers have come to believe that cigarette smoke in the air can actually cause disease. BZCt, intitct, there is little evulerace-und certairaly nut{ting wltie{a proves seieyctifc•ully-that cigccrette smoke cccaeses tlise(ise ije )tute- srrcokers. We know this statement lnay seem biased. But it is sul)lwrted by findings andviews of indepetldent sc:ientists-includinbtionie of tlle tobacco industry's bigI;est critics. Lawrence Garfilikel uf the American Cancer Society, for exaul- 1)le. Mr. Garfinkel, who is the Society's chief statistician, [Ali)lishecl a study in 1981 covering over 175,000 people, and tialwrtecl tlrit "passive smoking" had "very little, if,tny" effect on lung cWlcer rate5 anwng non-slnokers. You may have seen relwrts stating that in the cour5e uf an evening, a non-smoker could breathe in an anwuut of smoke equivalent to several cigarettes or Irwre. I3ut ascientific study by the 4ktrvard School Of I'uhliC I lealth, ConCjLlCted ltl Varlous 1)ul)IlC 1)IaceS, found that non-smokers Illlt;(lt iiiliale anywhere Jrom 1/1UUUth to 1/1UUttt uf one filter ci~fprellcr /x!r hvccr. At that rate, it would till.e you at least 4 days to inhale the equivalent of a single cigarette. Often our own concerns about our health can take an unl)luven claim and magpify it out of all pivportion; so, what begins as a misconception turns into a frightening myth. Is "5econd-hand smoke" one of these mytlls? We hope the infor.matiuel we've offered will hell) you sort out some of the realities. I lyfr EXHIBIT NO-.L._ R. APPLEBAUAA f:.J. Reyjlc,lcls'l61x1cc_c,C;uilip;iii~
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07/10/96 WED 11:42 FAZ 213 237 7197 LAT C01adCE.Y JUL-t0-96 WID-12 _17 .• .- WOS FAX NO. 2026267642 Nc.3 8 6 Bv ~.•. SECRg.; STRATEGIC RESEARCH REPORT P.02 Febrvarv Z9. 1°St ZQ: H. torS ar. <!. L. Orlovsk~ J. Lees ; S YOL'Y.CEZ ADULT 5`lOXERS : : SlRAISGIES XCD OPPOR2L1TtifiS , FcZ@!: Diane S. BurzoLs ~ 003 COPY LIST liall, Jr. ?is.. S. A. ~SacKinr~oa tr ?!z. G. 1i: •.:c)C.naa 2lr. J. T. Vinebzeoner ?ir. J: ll. Sbosfak l~u. E. J. Fackelaaa bcc: A. 11. C. J. R. A. CtiirsY ?otcerdaIe Lloyd Ul ~ m m ~ , 2Ss. E. ti. H01+ahaa ' 2ir. J. X_ Noort Z. J. Rueker ;Ce}:er co w ~ Dt. J. L. Ge~ G. G. Bethea w 1'ir. C. Novak ?!r. C. T. Darood;. R. J. Narden (2) J. Vkaley D. F. Pears ~ PUBLISHED BY THE MARKEIING DEVELOPMENT DEPARTMENT, R.J. AEYldOLaS TOBACCO COMPANY, WINSTON--S.ILEM. N.C.'17102 R.iRT i..rw 77fa ~ 1sm . •~ . . :. ~ i: • •r...;. RJR0000g7
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a I 07/10/96 I/ED 11:43 FAX 213 237 T197 ._~ . . 1UL-1(}-98 4(ED 12:17 WDS . r.r% r: -- ~ ~, , LAT COU[3[CEN FAX Na 202626•rsa2 rsDD AasrxACr ,~ a~rs , ® 00, ('. 03 ~ P ROJ ECT NUMeER xone TZTLEt • Younger Adnl= Smokezs: Stzstegies aad Oppoituoities AUTHOR: ~: D~e S. 3urrovs DATE STJIRTED: DATE COMPLETED: .--.. , , 2/29/84 TYPE OF RESEARCR: '.SECTZON MANAGfiR: " StzaceSic • . "R. C_ ltardiae . ASSTRACi: ° • Younger adult smokeYs are shovrt to bs czicicil to loaE t.rm brand/compaa7 gzowth in the past, pteseot, and furu=e. Younger adult pesfozssance of tse six sajor b;aads:of tha last half ceatuzr ~s aaalyzed to id.ncify four cotson sczate;~es/circuartaaces lsadia; to their yovnsez adult stre:lgth- The•_r cap icalized' ea: ' ~ • 1..j 0%anssp+sia exsernal factors. :.;: 2. ,• G2 wth~ aectoTS azoaE youn=er adult caokers_ 3..& out-of tcuch coapetitozs.• • • r 4. Yrodict~''''aildAess, cvmuaizated positivelY. ';uey r2cot;mendation: include: 1. 'sstablis'tunent. of a.separace Younger :dult smoker protram/snic. virh ,.,; custoaized pzocedures/neasnr.sti improaed infox•mation resouzcex, and _ a less coapetitor-ceotered focus. 2. Attenti„~oa to 3lzcks, Hisp:ricS, fe~ales, sccial actZptzbili=y, ~. . pricing, and p4=enctal enhance.en= of product azes p=abilJty. _ *k -~ EEY WORDS Zo,coY.r Adul t SLokets PalL rau %ril9 STo2t ?isrlboro Hispa~S.cs ' ttdmea Social Acceptability Pricing I 2172184 Siqnature Date RQQOO8$ •
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07/10/96 WED 11:43 FAZ 213 237 7197 Ur CO![]ICEN .1UL-10-96 WED 1-2 '.L8 WDS ~ FAX NO. 2026267842 0 ) YOUW= ADm.T ssexEDS: O~pOXZUNZ?ZLS SI7tdTFLIFS J1tw r : . 2AaLE Of CONIEltIS 3 PAct. KQ"CB.''O:Idr SW2lAAY 1 nmODUCII011 ; 1 SECZIo:1 I:. TYX IxToxTArrCE OF zaukcpac ADVLT StioxERS 2 P. 04 ~ 0 StCtION II: SQtCESSFUL. '7ZR3? 8?JUiD- SIiASECIES OF ZHE PAST ' 8 . ._ . . SECr2OM III; SFC Z,FJIRAZn. -- SUMlAR7/GOIiCLUSIOAS 27 SECiZOk Iv: INPi.IGI?70aS. !?t 33 t A. .. SECTIO" v; lff L TitM DELLIL .._. Ztiela~ 38 .s.• Svdsl ~caeptsbility tO Ln ~ sladklltispanic Youater Adnlt Sookers 42 m m ~ Fts+s.le 2e.nsfer Adv1s Sm.1a.n 43 00 c.w ~ `lSev1n6 Dp in the voY14' 49 Ln ArsMZCES 51 . ~ w a R ~R Q~QQ89 r
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07/10/96 AHD 11:44 F.ia 213 237 7197 JUL-IO-96 WtD O1tl WDS LAT colOCCE.v : FAX NO. ZD2626'rbQ .,• . . : ;~..,.,'. You2iCE7t AauL"L SKGKE7tS : ~.' . J :TRASEGIES A}TII OYFOR2'4liISZES . ~ WACEetFX'r SiA4MICt . 1 YlTB?OSE P. Ob 2llis is ioteaded to assist = in optisizlns its strate=ic position vith , respect to yevnaer adult saohers (18-24) by •clarifyin; their importanee W.auo •saoksrs 25+, identifyiag strategies Vhich ha.e-been nosr effective sgainst , younger adult smoicers ia the past, and applfiag: this learning to R.7R =nd its' current en-izoc~eat. ~~ ., Zbis suaassy.provides a broad o.rerviev of the eost•-crittcal points and key ideas in the report. Bovever, it vas necessary to om1.t many ivaoYCanC points in order to be brief, and readers are aacouraged to read the entire doc=ent. l si/ •:, .. _ , YHE 7QOx2AP1CE 0.* 7oUMCER ADUZ2 S?fOEERS Youn er adult sseScers have been the critical factor itt the tovth mod decline of eve sa'or brand and coopan over the last SO ears. They l contlzue cs '• ast as Importaat to brar s eompepies In t e furcire or tvo simplee reasonsz • . . The renas'a1 of the marktc sress alsost enrirely froa 26-7earold snokess. • xo aore tAan SZ of snokers ttart af ter age 24. . The. braad loyalty of 1S--jesr-old saokers far outveighs any tendencT to svicch• vith age. ® 1983. On the other hand, bsandsjcoepantes rahich fail to atzr=ct their fair share of :z. •,.. ..Iounger adult s,.okets face an upbill battle. They .ust achieve aet osritc2+in: • gains evesy ye= to pcrely bold sbare_ 3T aec attracting its fair share of 18-•yeat-old aso3cers, Rl'R yielded a.S point ingoir6 share advantase to tM io year due to Ia-year-old srsokezs aloae: . 2'h.L:, the annual influc of I8-7ear-old snekers providet * an effortless moor-nevo to Rne=eisfnl 'fiYst brand.'.* liarlbore ssova by aboa= :8 share pointc per 2Sarlboro aad 2tewport, tbe only ttue yonager advlt gjo+*th brards 3n the market, have so need for svitchiesa gains. All of tltieSs volose 5Vovrh can be rraced to YMMger adult snokers an4 the moreseac of the ls-year-••lda •aldeh they have pzevionaly attracred-into o2der age brackets, vhere Cbey pay a coasuaption dtvidend et up to 30Z. A scrategY rlsich apDealed to older ssoicera rovld aot pay this dividend. •• Z.t., those vhich app.zl to 1'-yea:-ol.i smkers rather than .vitehers ates .9- -1- RJROOO090 (a 00s
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® 007 07/10/96 PIED 11:44 FAZ 213 237 7197 LAT CO![YCEN F. 06 JUI.-10-96 WED I2 - 19 iiDS FAX N0. 2026267642 -~... - - W svitcbers. Todar, only Philip lsorris and I3rillard are giloti+tat xmong younger adult smokers; RJR is losing abovt a point.per year amorb;this gzvup_ ; ~ In evesy sease. coe+panies aith sttong yoau;igst; aduit brands t+eld zhe high groqrfd, s[uadtn= above the SaereasiAgly diflicalt sad costly battle for SU[tTSSYUL YOtJ1iCER ADVLT e7t/oL ST,tATEGjES 0p~ '?AE PAST A re•riev of the fzve )cey brands in the last ba1f centasy - Pall liall, YVOSTOt+, 2farlboro. Teol. and 7P.s-porc - shous. thac each built conaidezable strength anoat yonn&er adult ssokers vell aheid of 1=e upsurge in narkec shzre. Their strategi.es sncceed.d alaosz invisibly, hiddea fzoa covpeticots '• -iR ebe crltical bue lov-..oleae yeuager adult saoker aZarScet. 2ne posltioa,injs of chase braads have all been very dlfierenc, but there have been impertant x1ai7arities la che strategies th~y folloved. While chsncs =y :have phyed a role in theea past snccssses, the abalysis iadicates that the k elemencs can be understood and purposefultY lerer~ed Zf snfficient tiae. Priority, and.resousces are invested. . e . All of these brands took advantage of el+ae=es in the external eaviroanent chat vorked against or uere ignored by their predecfssaz. The exte.rnal chaz;es incluced s=oK2n6 and health during the 1950•'s, the generation gap in cye 1960's;'and racial pride in tha lace 1960's-y0's. Tltesa factors affeaced the ai% of the 7onnger adult s.okerr a+arket as vell.as. its niodset. • All~of the brizpids capitalized on dsaogYaphic eaifts vi~tn tha younger adult saoker _srksc. Fe=alis veie gaiaSng impbrtanas vben Pall Mall and VINSTOti took off. Marlboro mads it's, inroads during the 1960•s, the only deeade vhea younger adult'uale- smekers surYed.ir jmportaace.. The eaersence of 7ounger adult Black sZ Okers haibeea pivotal to Xool and llet-po=t•. These • brands succeeded by keying oa the grovtb sectors vithouC boacirg theaselves Sa, e.g.,Marlboro vas as well developed aront fema2e.s as salas ua_il retezC years. • In every case,.the najor rounter adult brands t+ave been succeeded by a brar,d vhieh• vas positioned to De dii~ierenc ~os-ttr predecessot -and becter " : 'ia-toueh' vic?i the younger alult =skers of the tiae. . lse-too sere=egfes • have never varked. . _.r .i.• ;•.. i All of these suecessful brands bave ctzessed positS.ve prodvcr aessages tas opposed to ptoblea/eolvcion) 4td have pzovided s,ilderlsmoother product deliverj than cheir predeeessor. ' - RJR000091 -is ~
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0 7/ 10 / 9 Q pED 11: 4 S FAS 213 237 719 7 LA? C0!(XCE,V JUL-1Q-96 HFD 12:19 WDS ' IH?L•CA'IZoNS/1ECOtL`MM9AT10?/9 FOR AJR 1. . Mx nU, zU1b26*r64z . l . tr. ~. . r. u i 1. Yoange.r adnlc smokers are critical to RJR's long term performance aM profitabilisy. 2herefote, R-'R slsovld aake a substantial loa term coss•Stment of maapo9er and moneY dedicated to Zoungez adtilt saoker pros=aMs. An umutually itrong comalaene fros Ezecutive lt~nageoent vill be neeessary, sinee majoz voZuae payoffs may lag sevetall years behind Me iapleseocation of a suecessfnl younrer adult smoker strateg7. Zhis time lat can also neanify the penalcles for vrong :urns in che development and iapleaeatation ot yomaer adult ssoker programs. To prevent soeh problems: shovld develop objectives, 2lanning•Drocedures, and marketabilicy crieeria for 7osneer adult brands/protrzms'Vhich reflect their uniqu,e, lons term characrer. These nay differ significantly from the approic.ties/neasures vbich are apptopriate to.establisDed brands or to nen brands =ddressint older saokers br, for exaople, emphasisirg consvaer-based rather chan velnoe-based action stzndards. , 0 . . e RJl shonld make resources available to develo~/iayrove its capabilities to thoroughly identify and track demographics. valets. wants, media effectiveness. and bnnd tformance crit'btn ••'eectars ot tbe youn=er s Llc smoker po ulition- These cools vill be critieal to the davelopoene and implesentation.-.of effective programs addrescin= ronnger sdulc Inokers. . 8ecause of the sensitivity_ of the xouager adult smoker aarket, brand deve2opment/manaReaent should encoapass all aspects of the aarketing_ mix aa4 nairtaS.n a onR cerm, s_ingle-aSnded focus to a11 elQmenzs -- product, advertisiaf, name, packaging, aedia, procnclon, and distzibnL,tor....Sact3es mhSch could aegatively sffect che lategrit7 of the stiaLeEy should be avoided. , s_7TM shovld seek ee betCdr undesseand and capitalise on• the ftccors/ strate ies vhicb ha•e eucceeded fo= ove r adult braads of the wst. Since RJg's processutools have been betce= actvned to c.itch extorts ttian to 'first braAd' stracegies, time and.learnina vill clearly be required to tn1ly assess the opportunities available through these averees. - ® It should be noted that the nev/ectabllthed.brard pioarass ia the 1984 Pian already address the major Sssnes/trends ident.Lfied belov, vithi" the tramevo=k of current 1tnowledge/pzocesses.'•• 2hese P1aas shonld eontinuo ss a bssis !er 1L7R's 1994 aarketins effores, but should he eatt=need by a full-tise dedication o!' resources to ensvre a oolatioa to tlse p=oblea. RJRD00092 Z 008
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07/10/96 'RED 11:46 FAl 213 237 7197 LAT Co![3LCE:`1 JUL-10-96 WED 12 :20 WOS : FAX PlO. ZUL626•/642 P. 08 -- . . : . ,t;. ~ s[sternaZ factors of key interest aa7c, eocial accepeability. 'vl,teh could revolutiozize the futu;e narket. and pricing, ehiigh Aas been critical in 1983. Eeth -i11 re;nire ureful underszarsding:ard exetatSon to reach yvua=er adiilc smokers. . ~ . Ibe he deaotrnphiejMovth sectors aoong yonngar sdvlt saokers are '2acict, 9ispavics, and feaales. In•teras of vants, the desire to 'siave vp in the vorld- Is likely to )ecose even nore intease, but earpressed in eore ea=repreaenr3al vays. 3zsed ea hiscoty, ehese opportunicies could'be :ealized by brands vith a balanced yovnaer adelt base as vtll as, perhaps, aarrovly tarseted ones. . The key oue-of-couch coURetitor is Karlbos•o, vl+l.ch nov relies aore on .~.~_ younger .dulz ideotlt7/be2angln= seneraced by its ova users, rather thta en the 'sartuliaity- of its adve=risinz= 2Sarlboro is too broad (half the younger adult smoker a.azkec) za ) qe addressed as a sinle competitor and should be attacked by a rarYety of younger-adul.t- centered^rsther than eanpecitor-centered strategies. RJR~sh_ovld esDl+asize ianovative poiaes of difference ftom existing brands in actacScir_ nl--. yovn er adult snoke r sirket, using 2+eadron/isitative eiroret'priaarily as defensive seasuras_ t -..._.- :L Phi2i': 2Sorris sav have recofnised.Yazlbero's v+slnerability and be usia_:`it as a-feeder brand= for yls94-ni.a Slims and Nerit_ This .." increases'these brandst importanee as competitive targets- ~ ,.laona~R?R ~ established bTa:.ds, . Vi~t~flAGE has the best svitchiaa h perfosaanee versus }Szrlboro and iay be able to maiatalss/en2unce thaL perfoiSanct. . . Prodact.tiants of younger adult smokess, es _eciallY r11d/smootb/less - harsh:aeliverV. should be fullZ em+delstood. relleeted ii+ ection standards for 7tJ]t's younAer ldult tarseted preduces,'aad comauricaced ~ Vipositive COOT. w .~ . ,...~ A RJROOQ093 :.. -ao- ®0o9 . .. m N
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0 7/ 10 / 9 8 11ED 11: 4 Q F.4Z 213 2 3 7 719 7 LAT COD[NCE.`I JUL-ia-96 WED 12:21 WDS FAX NO. 2Q2626-1642 .9 YouxcER AnntT sxoMM: 1 sTSi.TEOSES rwD oproRZVr~rrzES r ZtnRooucT? oH R.T,t's 'onsistent policy is cha= smoking is a•macter of free, ir.toraed, adule choice vhlch the Compasq does not seek to Snfluenee. Hoveoer, in order to plan eur business, ve ar+st c•asld.r che etfecss those cl•+oicos aay 2save on the fucur•: of the Industsy. pvrther=ore, if va are :o compete effectively, ve nust recognize the iaperative to koo's and meet .the c-aats of chose vho are 18 and have s.l-ead7 elected to seoke, as ve2.Il as "those of older saokers. This report Ss interded to provide additlooal lesrning an younger adult seokers (a=ed 13-24) to assist RJL in optimizing its . stzate=ic position vich respect to this smoket group. i.3ile eompetitive issves, such at Thilip 2iotris' concinuif~g'ovetdevslopcent anong 23-24 year olds, are a.ajoz locvs of the analy-sis; the broader perspecciYe Ss an the oversll business epporcunScr vhich may be available to RJX through effective marketing to younger adult adult =mokers. "' There are five *stctiozs: 3 a..14;X . , ' sectioa I, -I'he•?i9ortance of 7ouater Advlt Sookers,' explores the potential beoefits/costp.o~"first brand"* or svitchiaa scracesias directed tovard 1, yo_n=er adnlt ssokezs, In coaparisoA to stiokers 25+. Xey eleaeots include the + ispacc of la-ytar-old snokers on zhe earkst, the effects of aging en tioch smoker sbare irid'maricec share, and the degree of potenci4l svitchins opportunity. 'Ihese analyses are based o4 share trends froa 2'SDD Tracker, loYalty rates fYga the 1983 Se~et~= Description Study (S~S),, Nf0 svitching, and consunptlon~patterss froa TracXer!and Sovernment* stvdias_ I ' Section II. -Suecessful 'First 3tand' Stzategi.es of the Past,' uses eever- btfora-avauable inforsa=.i fraa om the 1983 SDS to tzace the succession of kt7 yo•inger adult brt:.ds o•er the past 30 years,,,. 2Ai; allovs a~n analysis of the key Z:c:ors efiic~my brle been i.portaat to their g=ouZh at+d decline, as i potesatial fraiUitork for 7tT8's pre.sent/facuze younger adult smoker stzace¢es. Sectiot. YII sL-azarizes the -Xey Learaiaij: ..hich eaa be cooeluded frot Sections and II oa the Saportanca of younger adule strength and the seans vbSch have ''*successfully achieved that strength in'the pase. Sectioa IV gives -7,mlieatians and jteeomendatioas for StJA vbich vere derived by applysng thls.leaYninS to todar's younger adult.s.oker asrket_ section V, 2eY Trend Detail,- amplifies key zecommesidatloas from Sectlen IV. Appendices support the wAin presentation as referenced in the tezt. ~ *-Firee arand° seracesies spfc.l to 1"ear-.id saakere rathev thaa evitchers a=es 19-24. r. Uy t~000094
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0 7/ 10 / 9 Q 41ED 11: 4 7 FAI 213 237 7197 LAT C06[3(CE.Y ~ -- JUL-10-96 WED- 12121 _ WDS .® FRX HQ 2026267642 a 1 SECTIOli• I . t ~~.. T THE I h1PORTAMCE OF YUUN6ER ADULT SMOKERS ~ 01I P.10 . o r v a O RJRQ000 95
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0 7/ 10 / 9 6 i1E0 11: 4 7 FA•Z 213 2 3 7 719 7 LAT C060[CEY JUL-1Q-96 WED 12:22 WDS FAX N0. 2026267642 . , •... :--. • ~. I. •IXE THpaATmCt oP•Yi~arGFJt ADULT Slso=S . f . z, . , r.ii vlchia five xears, youn=er adults C18-2ii`vi11 drop fro. 181 to 15Z ofti the total adult populatioa (1&F). Ihey vi11 continue to daclina in nuabers urc11: ae least 1995,•as tbe crest of the 34117 8abble pushes farther past age 25. ThL shift in the Topalation vSll cause saAkers aged 18-24 to fall ft-ov 16Z to 14Z of all s.okeis by 1993. Even 132 voald not be susprtsSag, since smokir= incidance has b.ea declining more rapidly anon= yovagec adults than any ozher age group ir recenc years (set xppendix A).' Why. chen, are younger adult snokers in9ortaat to RJR' , . Yotiage'c•Adult smokers :-e the only source of replaceveat smokcrs. ltepested gevaraaert studies (Aapendix H) bave •sboca,thst: a Less than as:e-chZ:d of seokers (31Z) start atter age 18. a Oaly 3Z of saokers start afcer aae 24; : .• . .. Thvs, todar's youa`et aEo1t saokias beha•ior -311 lartely lecesaine the ' Ltesd "4tisduz=ry volume over the next several decados. If 7otinser adults ;Curn away from saoking, the Industry must decliae, just as a population ahich does.not =ive birth vill e•eotuslly duirdle. In•svch an envison- vear, a.,pesirive WR sales tread vould t.Qutre dispropor.ttouta. share Lains and/ot sceep prlce incteasas-(vhiek-could depress volume). 2. KARXET SHAiE -- TRE -F1RST BRIND' ADpAlttACf. :.: *4 AJDNAL CAI2lS FRDH THE -2:7i- KA=T- :w : Ihe la-yrar-Oid saokers ia tbs 1983=narket-vere crortb about 1.6 skare of total sxokers. Y eapeuziag half of these 18-year-o1a :mo~kere^ Marlbo:o aained .i points of total sooioers vitAouc needing to attract s rMaRle brand avitcher. This gain was the tQnivalrxt of a sneeesslul tvo-style eev brand intsodurcion. Ql,th- no carnSbalizuclonM attid eo developaent/iatroductory costs. (a I -2- RJR000096
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07/10/96 91ED 11:47 FAa 213 237 7197 ,lUL-10-96 wED 12:22 wus - V : s taT C0e[xcEV ® 013 . - FE1X N0. 'LO'ltidti /b4C r. ic :;.•. . .` Fursherzore,_entering 18-year-vld s=lterz aeeo..M for all of • Y.arlbvro's strea h aaontotal 1S='2a. Loyslty rates fros the 15r83 SDS (1.e. , the percentage o-Inwke=s vho saoked 1}arlbera at age 6.18 and :t111 do) shov tbat ISarlboto loses about 28Z of its 18=7ear-old{ by age '410 aad another l4z by age 24 --"'a total lOts of 42% over the six years betveen aEes 19 and 24. 25ranslacina this to chara points, ?SarlboYo•vovld be e:pected to lose ':3 potnss of its .S points of 18-7ear-olds before they reach age 24. This So, in tact, about the annual =ouI NFo sw-0-1chtns loss found for a:r2boro ia recent years. (Sea Appee,dix C.) Eac, since Ziarlbr'.o saiabd .8 by beeaains their 'firsc.hrand' a aRe 18, it can affo=d che .3 sviahing loss and scill• com•_ out .S'qoi,ats aheid. ' ...~_ ~. _.~. B . ZHE C0lSPETI2IVE SQIIEEZE This steady influx of 18-ye3Y-old saokers causes the pre-existinY sa,oker aar:•: c eo' shrirtk in sAare ralues zookers vho vere vortll 100.0Z of the market at the beaianins of 1983 -ere vorth only 98.dZ by year end. Thus, a brand which had a 10.0% sqoker shere going inco 1963 and did not attract cny 18-reas'-old seok%rs vonld drop to 9.ax even if it kept avary aenber of its fraechise.' . lhia tisans thac aoT brae+d/cosaanY_vhle,l is undezdeveloped afloax_18-year-olds masc aeAieve aet sviLcbittt[ aains )usc to break evsn. 0 t A.t i coapany, thilip lsoY=is Aeld more than b0Z of thesa 187ear-olrt snokets Zn 1983 versus RTA's 15-202, yialdirg PM a.S woint =n-XoiaA SOM advantaEe in 1983-dae oaly to "aev' saalcers. •2be paver of this advranLa=e can be seen bY the fict.tbat R.r'R's total cctspetitive strltchina gains have been tviee as lar=e as PK's dusins 19t0-83 yet, during tba same period, RJR bas lost seeker share vbile pM :,as sade s1Viftcant ains (See AppenQis D). FusthaYoore, PM's yeun8er adult IaokeY advantaate bas been an Snrs:asinX drasrarir311y= AvERACE SAJkRS Oz SKOlG;+L-ld-~ti - • - - ----eS:7NU:.L - . 1979 1990 ]981 1982 1`3 ::CRAXM LTR 26.1 25.0 24.3 23.5 21.3 - 1.2 Pli 44.8 Source: ?IDD Sraclr:r r-- !(01ff-YTUK FROIi ACI21C ' ®N 48.8 51.5 5j.0• S8_4 + 3.4 Once a brand betomes s+ell-de.eloped asoisg -younaer adult csokers. a!aJ aisd bzsnd leyslry vdll eveaevallZctarsselt e?~ac strength to vlder_x_ rs icT~sE:.~'_' ~-_-. -3- RJ ROOOO97
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07/10/96 /1ED 11:4d F.U 213 237 7197 _ LAT C0KKCEN . FA( NU, CUCbGbf04L JUL-IQ-96 WED 12:23 WuS .40 : C. rsoncxrca FRart "zNc 1. ® 014 r,~s M analysis of Tracker shares frors 1979-83 (soe 4ppendix E) shoYs ehat, ap:rt trnrl shott ters fluctuatlaiu: ~ . Ztftoolna 18-year-old s0okers and.•t.tce movensent of its eadctias svitchial appears Co hav-,~ '.:ad no net longc.ra eftecc: -` franchise inte o2der ase brsckees can *xylain all ot l4.rlbora's * seoker share sains in the past fovr.yeaYS. Am eekers 25+, a22 of Ynrlboro's tains :re accribuCaDle to this~aging _.ovement -- If tsarlboTo se=elr holds Sts share ament ynuager sdult sr.'• .t ja the next fi-e years, it is likely to gain at least 3 poiocs F ssokar sha:e due te the a--ih` aove;tsit oY its Dreser.t snokers (assaain= its svitehiaa is no vorse than in 19a0-b3). If tiarlboro contiuues to gain slure amont younaer',aduZt smokers at itc present rate, its everall smoker shar: could easily incraase by a toal of 5 points, fros :9Z in 1983 to 24Z by 19a8. e Xevpert's grovth ean al:o be eatirely explainad by its )rouneer adult strength and agSnx. ooer the nex='five years. Xeuport is likaly to gain .~8 points of total smokers •rLthaut any additional grovth aaonr..younzer-adnlts. If ics younret adult gaias also cositiaue, it could exceed a 4Z total ssokar shtre by 19ae, a Eain of•about 1.5 peints-o.er 1983. 40 These exaorples damonstrace the somentum younse~r•-advle soehers gs.x a brand.'• Although a coapetitor could slov this aoaencum by attracting svi.cebers, tbe "fizst btand' vonld bold 6e high around of bzand loyslty•in evck a batele. D. L0VG-YTRtS DTVID=b'DS - RAZE PF.3r DAY Goverament and RJA studies spanAlr; several decades have a},o1n that smoker_s Snerease cbelr cana,impt3nn as. tbeY .ae. :'Ln• c3prt belov yhovs ' that seokers 2.5+ consoaed 22Z oore than saekers 1d-2& on average ! during 1930=d2. RATE P•..X DAY (I980-a2 AVC.) ACE -Z Saere.ase agcs~ t's. 1d-24 Indes vs. Tetal la-z~ z6.i a . as 2S•-34 30.6 ~ 172 99 35-49 34.1 . + 30Z 110 504- 31.2 + 19Z 101 2ota1 2S+ 32-0 + 22Z 103 .w 'I CTJII. 31.0 + 1 aX 100 0 , a • Source: ZacidcneeJkara lterort, Year 13 82. . v 0 t ~ -A- u j ~ . ~ ` . . ~ ~.+ .-. ~:.:. . RJRQ0009$
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07/1o/9e WED 11:48 Fa.Z 213 237 7197 _ 1UL-1U-96 WED 12:23 WDS 2. KAWCEZ SPAr.t -- n¢ -FuM aVA.ir a,nvj&.racZ -P ) j D. LOM~TE1t!! DZTZD£ltDS - 8ATE ?ER DAY (Cor.t. ) t ~ 1 1953 were UortA ozly 1.4 poiacs of Wrkct ssare, ssnce theSr canrn+np- tion vas belev averate (iadeW et 33). itwe.er, by ages 33-49 tbeT vtll be 4Jorth 1.H p.inti ot SOli - a 3GZ dlvidee+d ea their orla.lnil aaticae share value.'' Zhts coasv tioa Srerease Ss the ditFerenee bet%+cetf ?4ariaY toeleeYs 3-6 and havina e=ekerr vhe vi1 ~~.lco'35-49. 1 •?Aus, tbe 1a-year-eld: who ve:e ++erth IiE peints of ssoher share in E_ EZIIltDED 3RAND LLTE GYCLZ UiT corOlcE*r ; FAX NO. 202626•/642 , 7he c.ebiaation of brawd loyilcy, •ttns, and 'jncreas3n= usage tends provide 'llte lasaTaace f.r'arands ti+t4eb ekeu,•pr Asve skeyed, 7ew+=er adult. For'ezs.ple, Marltiero relies heaK1y en 1i-rear-elQs tor•1ts sbaTe jrevth. -Dut 1t, iros 1994 oa, no sa ear~lds ev sswked Marlboro atain,_aS1DR covld 1eC lS.i=lboro alaest kel its .ariocc share throuRh . z2te 1eft~~ t e taD e De o~+ s e.~s e COt~T1Sot1eR eacA 19s3 le.el. to concributioa voold be ia 1990 1f lSarl3ere lot no sord 1d-~as-olds and aeeely sived icr tranektse seskers to oller ade'bsaekcrs. on the ' -:dsha .1de ot the es52a, the sceket share eentributtoa•s are trae.slaced so oaricac share, by laccorina Se rate per day dltlerances. ?h, botsoe •liAe sDows that, e•en atter se.en yiars vitheut li year-olds, asint could a11e+~1G~s1L.re~a .zrket shsre to bold vithto eeie poioe ef its ~' ~ sae =roaP:wlcs:' co 2Sarlboro•s c*=rrtet.saoker 0are and .d+at thae • SWW= SVl2t CCOtiltiaL?IOx MA7tlcEi 3KNtE CONTRI3UTIOK 198 t!!0 ?RJIC= P1t0LCZ2ON s3 LSZ',_ 1990 P603[CZIO?r . 2 Q-28 6.3 C~ O. 0 6.6 < . 0_0 6.S 6.8 6.8 7.2 :... • 3S-4f .• .3_a 7.! " +.6 - 9.6 2.2 2.1 . zs 7oTAL 14.9 C--- 36.9 •20.2 19.3 . ~- '~ k1a..-ae., asA. . . . Ikn.. esew i[ a]taad' tall. te... lsves ~ews 7.anA•r advlt .nok•rsL ..._.~.._..~._.._-.~ ~_.. tke 7sv.ter adults it_attraet.d 1n essllar yiaro aeA tbc :r inertasiti, csnavaocion can car the brand'a Warket shtTf-_re-e=c•, .igniti- a.lts estea snR it evINra t e• a. .~. A k'.14 ®ois ,
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07/10/98 91ED 11:49 FAZ 213 237 7197 LAT COlOICEN Q Ojs 1Ut-1a-96 WED 12:24 WDS FAX NO• 20Zfi26/642 P.1b --- - - +t-- _ -,.• _. - - 3. SWIT'CHI1tC OPfCBZUNITY . • ~ ~ ; ' i Yonage.r adults are more likely to cuicth•,brands chan sny ocher snoker ~ group, i.e., they are a coacsatrated svic•cbing target. Mueir very bish propeasisy to also svicch strles vit5in their brand sv=sests the 2atenc potenciil for even hirhar racec of braad svitching. ~ 1 F'lAnA9IZI2Y OF SVIZC1iDM IX. 6 ii0. IIlAata FstlILY STVLE I?l nRAliD T _ IWDF.7C_ Z IHDEX I I 16-24 t6.6Z 12 21.3Z 17e 25-3i 13.4 102 12.8 106 35-49 12.1 92` 10.4 86 50* 13.2 200. 11.1 92 TOTAL 13.2 100 ., 12.1 100 I Seoree:. • tZFO, 1931-1983 (first half). ; ' , YounBer adtiilt bs•and swicehers (vlso then zenaia loyal) csa also cot:tribuce the major portion of their aging beaelits, iaclddina•iseressed uaage, to their second brand. TAvs, switcRSnA by sookets 18-24 caa yield a significanC.9art, but not ill, ol the slure advaatsges_associated vith a 'iizst brard'_ older r+itchess confer less, or none -b- . 'of• these benefico. RJRQ0Q1Q0
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0T/10/9a WED 11:49 F,213 237 T19T LAT COKICE.`( ,1UL-iQ-96 wED 12.25 0 -F WDS Q01T P.16 T1t£ INPoA.A2icF oF YCDXCER ADULT STSO'=t ,~ . SDMiAIY IhouSb aeercasia; in number, younger adult saoktrs are a key asrksc for SJR because Saproved M' perforaiace asorsg y+osusger adult ssokezs could contribute nore te Ioag =essa profZtabi2ity aad positive share aoaeataa t?ua could be acAleved frora =atas in any otber age group. . . 1: Younger adult snokers are zhe only sourea of iepZscm.nt ~ekers_ -_.....,...~_ -...._~. Mare chaa a skaYe poinc of 1a-yazr-old saokess enter the market every year_ These offer a significaac grovtb opportuaity aad also shrinc the share value of saokers slready in the .aarlcet_ . •,, * t 2. A 'firsc braed' strate IU • ~ AX NU. 1026261642 , has simmifica:.t share advanUses. . Optiaum ability to eapisalize on the inilux of IB--yerz-old smokers. Z1sLs gave..2lt a-3 point L-.--Xoiag advantase aver RJ7! ii 1223. ._. , .'First brands' compete froa the high ground. 7hey do not need i•;is=hia= gains to arov and can afford some svitclitng losses. Braads vAich rely on older snoicers mvst =cbieve net svirchiag =aias to L-reak even oa share. e Strensth aaong yeunser adulz saokars %-LLL ultisately. yield grovth in elder age bssckets. Aging has been coazrtbuting al], of Ysrlbero's sad Iie~~ort's saoker sbare saias saong saokers 25+. . Agitg of ~,oyal rouoger adult saoicers ere,ates dSsproporciona:dy large gaias insoarkec charie, due co their iaereasias cotsmaptiou. This does aoz acerve !=oa ssias smag oldes smokress. . .. . Younger adult szrength, past e: preseaY, aill tead' cc eszead tbe lifsq/elt of a brand. ' 3_ 0 Ywnser adn2t raek.rs olfer the nest =•ncentrased aQitchieR opaoeLuniri• ~ . Seirchers sa:d 18--2d eais provide siore share advnatage froe ag: ns1 3aereasin6 cnnruayeiaa thin ei*itehars 25+. - . S,okers 18-2f are Uore li7cely to sw.Lech. ' -7- :I RJ RO0Q101
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07/10/98 AED 11:49 FAX 213 237 7197 LAr col®[CFN ® o1a JUL-lU-ytf WtU WUb •: FAX N0. 'LULO'Ltl (G4L Y. 1 f • _ ~... t. . f ~ SECTION Il : ,. , SUCCESSFUL_ 'FIRST BRAND" STRATEGIES OF THE PAS T .. R J ROOO 1 OZ LM 0 V V
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07/10/98 AED 11:49 FAX 213 237 7197 yAT C0X3fCE.*1 WUJ : t'AX N0. 'Lt1'CtlGtl / o4t JUL- I U-96 Wt) I Z:lb 0 II. StiCCESSFUL -T1AST MA.ND" ST3A?EGIES 0l 2liE Zd.ST ®019 r. 18 In the 1993 Sesaent Description SCudll (SDS1,; ss9okers of all ages were asiced . vlsa= •';iUd they smoked vhen they vere 18 years eld. Sy using tbcsc responses to represent the younger adult market of the past, tke rise aad 2all of key younger advlt brands ever the last liltY Years es:i be aealyzed. 3y linictn= these brand trends in time co dceographic/socltl/ma=ketinS changes, insights Snco the faetors vlu,ch i!:ac=ed those brands•aad might affect a younger adult braod coday can be tained. This section traces eve brand vhicb has =Ssea.to a l0Z or hSgher share xbeng 1d-Year-old saokers sinee the 1930's. Ihare have beea only siz, but they include the aa]or braads of the last hall centur~k - Pall Hall, VI2iST0Ii, }larlboro, Xool, SALFlf, and Ve"rt. , ' . BACKGROUND ~. ! Alzhovth cheir'rise cannot be traced, Lvcky Strike, CAMZL, and Cbesterfield vere the as.anrs, pt the cSgarette sarket dnrins tbe 193a's. Smohers uho carned 1s In 'the 1930~s• seesed to fav.r Lur3qr Ss=3ks, but no brand skeved youazer • advZt;ce the desree seen for the brands that ceuld tollov. 1930's JwG. SOK IS-`at-0LD S1SOMS 5hare 9DI Lucky Scrike . 22X 322 146 CA L' 27 30 111 Ghesterfield 27 24 . 74 All Ocber 24 18. 73 PALL HALz: z axuM vT MtE 1940's AND _1950'S_ The key trsnd for tall !lz1l vas 7oarger adult feaale smojcers, who vese rapialy ber.amIns aose Uioely to stoXa at age 18. The SDS shoved that feaales rose In iuportance fros 30Z of al1, ld-7ear-eld saokers In the 1930's to 44Z in the 1950'=. T}s,is gaia was large eeeuab to czeate a 6Z inerease in the. ttvaber.of yovnger adule stelters fetween the 30's aad 50's, even t eea there vas • 1S2 de,rsseiase in tbe . stze of the younger adalt populatioa, duriag•:Ast tiae. -I- . ~.. • RYROO01O3
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0T/10/9B 118D 11:51 FAZ 213 237 7197 JUL-10-96 WED 12:26 WDS . ~ 'Extta 1.ettA' Pall Mall Xing enrerel the sarket ta 19a7_ ZnitiallY, it had a'prestiae pos2tienia=, but vas soon refocussed to emphastte mSldaess sad 'easy- ssioktng. Fros the betJpaSn=. Yall lsall's develepmcne vas abouc c•+sce as :+tah :mona 7ouater advlt fenales as males. This capcured the rising trend ot the yavnaer adult seoker markec and alse oade good :trstesie seasc for ~' ATC - Lucky Strike skeved asle and Pa12 Kall skewd female. Thus, TalZ ?Sal2 vas 3n tuoe vi=h the demographlcs of the tines and 1*.c comDany•s m3z. : U? COY3[[CEN : FRX NO. 20262ti rd4[ . -Mitdness is a Pleasure_ : . witb Paf t Mail ~ 1936 During the 19i0's, Pall Kall'o share rrev co 10z amoasall 16-yeaz-v2d saekers. to 18Z asong yovnger adult famale saokers, end•vas scill ris2ns. Dut . since Pall Mall attracted fever olde r saokars. its aarket shere vas only 3X • after a decedei"GI947). Er the 1950's, trouih, the aging payoff vis • Snevitable: pal;,Kall's SaK soared to )SZ, •+ish a youe4er •dult saoker share - ~ tti ice that ~i1=h. PRLL nRLL n.c s.. NW.s,.e ..0.« ~..c ®020 r 3 EXACCb WOEMZW1M %me an a .o N -9- 4 G V R3 RQOO~~4 - . : •: -.:
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07/10/96 WED 11:51 FAX 213 237 7197 L1,? Col[d ~~• ZOZbL~~b4~ r cu JuL-la-yb uiU 11:zr uos . . , s e++t. lsll I'sa11 becaoe ovc of c:ep vitl~ ici t~ses vhen the uac irir .eares et i ke nid-19S0's creacei tbe fslter boee, pall ?Sill mSShJ: have defended Ztself vtth a tiltet lire es=enslea, but It d3da't try vniSl 1965, vheiL it l~ad fnv yoa~,Yer adul= smokers lAft to defend. ~ ~ After' Tall Msll peeked, Sts younger adult fraiicblse began to J:fuv sa2e. Y.ueBer adulc tewle suohers - the ristn; trend .Tall Mall had esptured -- eoved on. Lut the brand loralty.aad aSSns henett=s af the younger adalt smokezs vho resaiased vith rall lia12 bolsteredrics oarket •share for anot.her 10 yesrs. . Hales Zetiales TALL tS&tL S7l/4ZE llii0Z1G 18-:~W-0LD S}folQ:.7tS 1940's 1950-SZ • 19S5-S9 1960-6A 1965-76 92 , I6Z 30Z 18 40 ?0'IAL 10 Source:• 1983 SDS `30 ~26 --~)30< 22 4 13 19 < 2 3 • AIC's leading vasision s.ons. younger advlt ssohers, first vith Z.tsckY StriSce - and tAenPe11 Kalt, pushed It te a1 ia t?ie tndustZy, tn 191-0, vhea It pused ~ RJA, pwever, 'eince Pall lia12 vas- J1Tt's lase svccessfvl• youts8er adnlc ercry, the araad's devetara signalled the future perforsanee of AZC as a coepatry. fineRlCAH 70BpCC0 .~ . .~ .~ . . . . .~ , . ~ - r- ---f Jl:C :t3i e se , ] ®021 a ~ R J R 000 105
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07/10/9B TED 11:SJ FAZ 213 237 7197 LAT COlOIC''a. ®022 JUL-1D-S6 WED 12:27 WDS ~ FAX NO. 2026267642 • Xey Poiats About Fall liall- © t . Pall liall's -estra lengcA- vas a product breaktluaii6h ia its day -_- one t!!at promi.sed extra sildtfais. Zt calisht oa rigar avay vith "ouace,*c adult sawkers. •.. •.Pall Kall =rev quickl7 =oog yevater adelt ssotiers be,rsute St vas Sn ttime vil.h the 19Q0's, vhen tbe ma)or t'rend in smoking vas the risiag tapelcaaea of reuager adult feaale swolcers iu• cha market. -j. .?all Kall's ybvA=er adult rzrenath was a loag lead-indlcator of its rapid aarket share grocch Sn the early I9SG's. . PalT Mall's docntu= aaong younger adulc sicekers vas, also a lead- ind3cator of the braad's eyestual decline,',a.lthaugh its narket share beld for another deeade due to the loyalcy*aad aging of the younger adult saokers it attracted Sa earlier Yearr. ' . Pall ka12 beease ov'rda~•elopad asona ersles o~,ly during its decliae. . Sitica Pal'1 Mall vas ATC's Iasc aa,jor yonnger adalt brsnd. Sta dourncura vas a leadir.g indicator of AIC's decline. ~ 1 .j • i • -11- RJROOO1O6 .i 1 . . . ~;
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UL1lD 96 WED 12:28 FAI W213 DS 237 7197 a vccEr o Qn2a taT c FAX N0: 2026267642 P.22 yDiSTON: TKE NIT 0F THE 1950'S sNZ 1? 6C'5. .% External influences In the 1950's contribnted to the VZtiSTQ.N eppor=ynity_ . ; 1. The rising cide of bealsh concern vhich peaked with the 'eancet sclre' of 1954. , dlthou=h 'aodarn' tilter etgarettes had been Sn the U_S. aarket since 1936, their oat•lcet i0portaace aas almost nil until the early 1950's, vhen ViCeroy sales quadrvpled :a less cfiaa =s+o yezrs. 3teynolds, deteraiaed net to repeat its experience'tntroducin= CAVALIF.3C against an alreadlr-tao~ell-eatrenched Pall 2lall,-rushed uINSTOl1 co earkec in Karch. 1954. near the crest of tba bealth scare.. 2. I1tie spread of television. ! .: v1NSTGN vas incYodaeed en TV - a'fad" that spread 'f=om 9Z of all heuseholds ir 1950 to D7X by 1960. Advertisina dollars vere a key advantate for i7I11ST0N over Sts filcer coapetlcors, aed the bulk of those 'dollsss L•ere vsed to Ievera8e. TV. - . 7oLnser advlt and older ssakars slilce ruspond.d pToeptly '•zo 9I?tS?OK• s positiye propesitien - "VISS?0.`i Tastes Good` - izu point of diZference froek othes filter br=ads and the praduce deficlency noo-i`ilter saokers ai=ht snspect. VZ2iSTOx let Xear and viceroy sell the benefits of filters and, perhaas, s`aka 'cReaselves looY~lik. `cissy branda' ta yovnses adult soekers s.ekine aievrity. Ey 1958, yI1s5T01i vas the Nursbes One filter. brand and still shovin= :aeady na=lcec sha=e =ains. In the eazly 1950's, its share rsaog lVyear-o1d szolers re•acF.ed saae 302, =vice as high as its earket sbare: VIHSTOH't effect on SAlE.'~ and M3rlbero durir,g the eazly 1960's (as shewR later) sugaests that this 30Z share -•as large enough to pti,t peer pressure oa XI1tSi02t'c s:.de and make it • a'handva.9ot% bYand" s=nng yvonser adult saokers. , VINSTOtt RR R. Ws,f..+te++e s•t ! lsam /eCIM1 W!f am; 0s an _ :. - -. _....~_. .
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07/10/98 RED 11:54 FAa 213 237 7197 JuL-1tJ-Jt7 MGlJ LG•G0 ALlJ UT COY3(CE1 rtfJti Nu. e-U«1b / b4C .;..~~ ' v1T:S?ox sufdenlv lost fa.re vsch r.m.tter as.le.htr= ir e1+e eSd-196a•..' TbSs vas not due to any suddea changes in VIIPSSON. or XaT2bo:o ads eT p=odvcts. The ban an telerisim~ =dverttsiag didn't hit .nt~ 1970_ Hdve~er, tvo mjor shifts in the 1960's em.i.ron=tnc aa7 have left i7I?1SZ0S less=in touch vich ' younger adult ssoiters. ; ~ .~ r e IlIX3202i•s positioning and its develapQeat ++ere both 811ghtly feaale, in cune vich the younger adulc,'seokers of the 1930's. Aovever, ttie ancissokint publicity Sn the 1960's tad a disproportiooate effect an yonr=er adult femalea, so it changed the de.o=raphic oix. vithin only a fev yea=s, fenalcs fell.troe 462 to 38Z of younger adult sookers and, for a decade. the risi trend vas aa1e. Thus, VINSTOli became out-of-tune deaographically t!s the younser adult saoker earket, because external iefluences had changed the aarkec of tlLe 1960's. ' . •V 1. The hea-7 antiseokin; activity Sn 196i-69 eay have caused problons for VI?15TOks . The first FTC report, published in 1967, eaaed YIHST0:1 the biahest +tax- non-aeatbol tZltor in the eiazket - b:=«er than sooe non- fiicer brands and 82g. higher chsn !'jrlborc. -,YI2tST0a's product- centered proposition aay have been vulnerable oa this front azong yevoaer adult snokers looktag for aildne.Ss. : . The irtense aazisaa~Ctn= uzpaign an 2v zay hive oftset 1lItiS20N•s :. effeetivene: s iA this 8sy aediuo. r- i96s~ / 2. aINST01i's light-Learted approach nay have also becoze l"s attuned to tbe chanaira younger adult nindse= of the 1960's. In the era of .Yietaam, cazpus rtots, and rbe Chiczgo Seven. 1t seilas likely that Marlboro's intenae, onseilloa covDoy ras a better fit. ~ - • ~ .._...~_._. Wadoo nslCS QooLa...~w v comc Io where ibe flavor Is. Come to Marlboro Caunlrp -13- r. cj . ~ 0 ~. a ~ ® 02, RJR000108
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07/10/98 wED 11: SS FAZ 213 237 7197 LAT C0l0ICE'j JUL-IU-Wb WtU 1L:Cy . uDS • FAX N0. 2026267842 % : ' - ,.. iL+. . .!• 1. _. . • . =Y+e 1983 SDS s6eMed tkst yearxer adnle aeake=~.ra aost u1es17r to bass their brind perespeioas oa the peop.ie they see osin 'tna brand -r aore sAaa tts =dvertlsing, package, o= aame. Ihus, ic :a possible tlLic •VItiSTOV•s ova , profile aittit ba.e blsrened its dovntorn saopt 2ronnQer adult cuohers. Vkereas Pall lia1l surted Qitlf fev older sookers, v21TS'tCti st=rted strong 3n+ong s11 ages. Thus, by 1965, half of N'.~.1PSZOti saokers S.re over 35 and LtighL have contrilbuced ta an older, -establishmeoc' taage~for the brand. As yLV.STOK lost its hold on the IB-lear,old ssokar mzrket of the mid-1960's. i:s 7oueaer adtilt s.akers d£spersed te SALSfM and Xoo1 as vell as to 1Sarlboro. As vith Pall Mall. AZHSToIi's younger adult fesale saokecs noved more quickiy. leavinr vZ17ST0li overdeveloped aaorg yoonger adult wales fo= tbe ft--sc tise. yIMSTOti SBaRE dMOHG ia-YFJtiR-0LD SHOXEAS 1956-60 1961-ri5 '1966-70 1971-73 1976-80 ...~_ . Nales 122 . 312 ~S 27Z 16Z 11Z i Femsles ~ 14 35 32 9 2 TOTAL 13 > 32 29 < 13 < S . Source: 1963 SDS ; ~ • - ~ . tiben chefTY baa~took etfect in 1970; the Tr• atitseekir~t caspai=n also ended and lrourger ad.~lt •feaale smokers aSs3o becase the risttsg crend. aQt' br th1s time. 2Sarlboro t,ad become the -Danduagon -bzsdd-- ' • , ihere vzs an apticl: in ttINSTOl1's share asong yoaeger adult• fesale snakess when its Lights 100's, raxt incrodoced in 1977, vell ahea~d of their Marlboro iouncerparc. -lut, everall. L'INSTOx•s line exteessioas sees to lz•e had no lasting effect an its reueger- advlt* seok== tredd. P. 24 N (a 02s <Y RJ•R000109
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07/10/98 RED 11:58 FAX 213 237 7197 UT COlm[CEN JUL-10-96 WED 12!29 WDS FRX N0. 2026267642 C a Xey Yofnts Abeac MSI'0R: 1 . LTL`iSTO.M benefitted frott the hea2tb scareS of tlse 1950's, ahS.ch eseaNeQ the filter booe. IL a:ed a posi ide p+sitiec "-- •VZPlSTOlI Tastes Co~d• -~ to eapita2ize oi+ a ae=arive enviroftment. "` . Favoiable timiaa helped vZNS?oN. It attaeked, the filter msrket before earlier filter brands beeaoe entrencned. '.'. • Younter adult saokers vere zs likely as ol'der ones to'be early VIKS?ON adopters. .. . Yoanger adult strensth was a leading indicatoY of VI2i52ot/'s tx=eaded eiarkat share gains and of iu softening. ,. . Peer presavie - the -bandvagoa effect- - seeni3 to have vorked fot VIlt52CK~in the early 1560's, ~-hen it had a 30S share of 7ovn=er adult saakers_ . ViySTol1 na*- ha••e lost popnlarity aaoAg younger adulz saakers because changes in the exteraal enviro:roeaz aade VIK5S0Y less tn tune vith both the deaograybics and the a.iadser of the 1960's tbaa it bad beea in the 1950's_ • Its large number of older snokers may bave, canzztboced by ltnictns the brand to tAe 'establist=ent'. 10 • WIIiSTON did not becoae overdeveloped aaong nales until after its 7ounger adulc snoker share had bezun to decline. .. ~ . • vIB1SI0N's line es=ensieas do not appear to have had any long tera effett oz its yovnger adult saolcsr perfersanee, although V"2i 1STON L1shzs 100's may have caused a teeporary rise urtil HarlDoro responded. I + r, 45 (a 028 y . a N -15- _ 0 . .t RJROOO110
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07/10/98 wED 11:58 FAS 213 237 7197 LAT COlO[CE.*1 JuL-1 u-yb Wtu 1[ :Ju wus . hAX NO. LUll7•Lb /04L r. lb 4 xNU.aoXC: -reF -eAB-t Evaatt" Dux ff _ The leidias edge of the Baby Bubble exploded en societY ts the !ounser adalts of the 1960's. Over 30 was "ont' and the yovager set vss driving fashid'ns, politics, and the :arketplace, sosetimes vlolenzly. ~lr~d tiarlboro vovld'becaae their brand. . Marlboro bad been quickly reposaioaed Zn 1lSd-SS 'to catch the filter boon. But, as i second entry in the 'tasee/flavor' filter markec, vtth no point of difference but its box, lt trailed IWZNSTON anorig both younger advlt and older smokczs- . 1955-60 .._ .~ ?iark.= Share 11-Yeak-ald Seo7cer Share . _ . '. . . vlltSTCii 5Z ~. l lx Marlboro 4 3 ' 0 Judging by Sts copy, Xarlbero's sasculine positioniaa was origiaally directed zc che ronfilter:mtrket, vhicb had becoae overde•ieloped among males as it decllned. Ic to.k eight years of ezperjaent,at3ea for Xarlbo=o's pemanenc 'cowbay- cani1S=R to fall in place in 1962. E•.eri then, the VZKS'ioK `bandvasoo' held tiarlboro at bay. 11 ., Bat Ma.rlboro, through happenstaace et desi=n, fic better.qad better aa the pressrres of the 1960's evolved. Marlboro vas a milder preduec chan WIJiS?oli, but sts eophaais on llavor kept it posiciened as a`real cissrette'. . Marlboro vas positioned oale dosia` the only decade since 1930 v?un tules were the arovth sectoY asoag younger adult snokers. .?isrlbero's intensicy fit the mirdiec of younger adultz Sr cl~e 1960's. Q027 • liarlbero's posittonina vas in tune vith younger adult'spoktrs' enduring vant to ezpress their maturity and'=ndepeadence through saoicia;. (The Ln ~ Marlboro covboy is aloays shova as s_ sacure, even older eaan. ). • m m ~ • Karla.ro aeqvited 7oref=eY adult seokers thaa VIl15I01P* and, b7 the ~ste Co 1960'e, this msrc the Baby sutible, the larseae cehort of people, anJ ~ , c=kers, in bistory. . ~ ~ a * One vay to see this is by ceaf arsas the percentage of ?izzlbore versus uZxszoy seekers who seolced at aFe•18- Fe= eza.ple, asons vRite aale uIltS?01i saakers who turaed 14 is+ 193,5-70. 70Z saoked at age 18; far tlaTlboro, that percentsge vas 872- (Sodree: 1983 SDS) -16-' •. .•, .. . ..~,~ RJROOO111 .,
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07/10/9e AED 11: S7 FAZ 213 237 7197 EAT COYIIC'~L.Y JuL-Lu-ab ar.U fi4.4i aua : rAx NO. Zulb~brb4L r.z•r Q0za .,, .~ ~ ' ;.;, `. - -- - - - b.. l _ -A • 1 . napLBORO ~, VM fCr r"1A MhrC f~K - IWtat iLM ii.lLirtl 11fi8 0 . r 0 17~• "'% ONssar UMNrCS in a .e t.a s '~ZS7R•S~iLr tt. 2N. Tera•n. ~. S33r+. WiL 2160 l17t i1se 1 Ltic+pite ?Sarlboro's aasculiae posit:onina, it appeirs ca have been a dval cex brand aaorg younger adult snokers froa cbe betinniag. 1Sailboro scevad aale to cAe saoe eztenc zlse total younger adult smoker oarkex did, but yas alaosc eqnally developed aaor6 younger adalt miles/feaales uacil atter 1975. SRI]tf A?SOYG 18-ZT118-OL'D SM3>31RS Dwelo meAt Zndax ttarlDoTO Socal -1KaTs eaa e 1955-a6 e.Sz 1131 9s 1965-7i 31.& 104 94 1:7S-79 40.6 107 94 Ln 1979-ts , 50.3 116 54 N m • de siSng tr . , . . 1' ~ . . .Ja ~ souress 1983 Sns 00 ~ This balanee vas advaA==geo„s to ch= brard siac.q the 1960's drop in fenale ~ Sapoztarer vas only temporary. If }iarlbato'o saseuline positioning ka,d nade It a hsavily eale brand, it vould r.ave positioned cAe brand oa a long cesO OD RJ RQOOJ 12
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07/10/98 IrED 11:58 FAa 213 237 7197 LAT C0Y3tCEN JUL-LU-!db Wtu iL:dl D1U5 •: t'AX N0. 202626'1642 r, ?-d After 1973, ?larlbero ooC only started ta skaw. c`b1.e, ic started te lose its ,~ E•rip on the 18-year-o2d smoker market: _ . . ; ~ e lsarlboto's 1S-year-old sooker share dipped Sa 1976-77 when boch SA'eSi and VI2ISTON b•revsht out Lishes 10o's styles and ?iarlboro failed to raspand vncil 1173. This s:y partly accoonc for 2iarlboro's increasing sale sYcv ia the lace 1970's and, perl+aps, for 2farlbaro Lights 300's svitching aalns versus Vl?tSTON and SALt7i;ia the 1980's. . Newporc baRaa co nibble at 1Sirlboro's -fiist brand' territory. Nevporc vas a brand ?SaYSboro was ill-equipped to ceapece against, because of its long-stassding menchol veakar.ss. This catild b* a reason for the strong eaphasis an iLsrlbere Manthol 1n lata 1982. , L. . . CaY3L and yltglnia 511as each cook a bite. 2itese inroads vn :Sarlboro's 7oua;er adult satoker stronghold Zn the latA , 1970's barely sho-ed Sn- tbe brand's narkec share because aging aoaencvn froa, Ws 1930's and 1960's covered 3ts tr-cks. Bac these say tsaie been -sSgaa2s thaC }'irlboro's nascu.lina Snagery vas becoming less in sync.vich younger adult ssaokers over time. •• . Males vere,aot the gravth sector of the younger adult saoker m.-trket in rbe 1'70's.~ Fecales cere, raboundlps from 3aZ iaporraaee in tbe 1960's • to 49Z ot all 18-year-old yaakers bT the end of the 1970's. Z I2SpoxTANCE AllONG 1S-YM-OLD SiiCICE7tS 1950's 19b0'r 1970's 1980-83 lSal es SS > 62 4--- 53 31 Fecales 44 - 4---•- 38 -----J . 67 49 Sourca: '1993 SWIC . In t%a 1983 SDS, yeungas edult salas clearly szill cared about beSns seen as sascalSne - they don't wnc fesin3 ne isaa°eryl 23arlboro's 18-24 ssokers also wnt masculinity, because the majcrSe7 of the brand's ssokes's are aale. Ent, Karlboro's jaunger adult sale saokar_s_ do not sttess msetsliaity any sora than otlser yosaager adult males. In faet , y+sUSSer advl.t +aales o saeke oChar braods are soaevtatisore ~ likely to vaat the rti`red, tredizlowal osscvlScsity. Thus, tbe evidaatt of shara trend, deao=raphics,, assd aaacs tends to su=gest that fiarlboro's positioniag aay ha.e becoss less in tnae vith tlte 7ovnger • adult ssok.r markec durlaa the late 1970's and 1980''s: ' : 1 (a 029 I 6 ,t '. ,a .. : .. .. ' ~._. RJROQO113
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07i10i98 WED 11:58 FAS 213 237 7197 ur CDY3ICcN JuL- t u-o0 wGiJ 1L • aG wUZ r rtn nv. cucocu 1u4c . • --~ 18-7ear-old taokers In the 1980's? . , Oree 7a1l Mall and VjMSTON had curred do•na asonr Zoiurger was no retnro• Ao41. then, has :Ssrlboro sanated'to held, 1. base their Marlboro Derce9cians or brand usars• (See Appendix p). Since. In 1983, 7CZ of Marlboro users vere podet 35 and fall7 3bZ .rere under ZS (3D1 - 218), ?sarlboro's oery size asoaz younger adult saok_rs may jive it an effective aoyitiening that has litrle to do vs.th the positsoning of its adeertisin;. ?:arlboro's 7ouastr adtilt saokers cun be cheir .•+++ caapaigr. avtomacically in tune vith tbe tines: •r 1n the 1983 SDS, roanger adult ssokers wer4 .uch more ltkal7 thsa o`ther ssokers co base their brand perceptions on ;he people t&elr sxe using the brand. 3ut, amvnR all brands. yoaater'.dvl=s %sere -2ott likely to . convey, apart from the brand's advertising, paek. or aase. .2. IAe SDS snoved that Marlboro's keT iaa a vas;nat =scullnit , ic vas younger adult identity belengin3 -- Cbe brand for average younger ad.:1=s, popular and accepcable among younger ad`ult friends, not 'too dilferent`: This makes sense as the imagery 2iarlVoro's users vovld 3. Marlboro is clearly seen as a quality aroducc, evea,by younger adult cnokers uho prefer ether brands. Marlboro smokers vint to 'hny the best" and they tAink that Marlboro is the best. This say reflect specific pioduct performance, sinte ia-aarte= test =esults over the last decadt Yndicate that Marlboro 1ia='s caeethe=, less harsh delivery has4been.eonsiscently preferred over ehe stronger VI2i6ZOx Xtrsg. This vas•stlll the ease among younger adult suokers In 1933 testing. (See ' Aypendix C,) 4, Marlboro has the "bandvaEen effect' still going f or St. In fact, the trend over the decades has been !ar 7vvager adult smotceTs to lecreasinslr c3vsser behind oe+s big 'ftrrt Lrand-, a trend =ba: yasallels the Zrereasin= pressvres•aaa1nst smohiag during these tizes- TSis cavld mean that as social eeescvres tand to isolate younger adult saokers f=om their nonsooking Detrs, they have ar inueased need to identif7 vith their seoktnR peers, to smoke the 'belorising- brand_ SHRRE MONG YOUttGER ROUL.TS' .......,. amo." ' .S a 031 r. ca : N "R000114 adult. saokers, tbere evIT recoup, among
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0 7/ 10 / 9 8 11ED 12 : 0 0 FAZ 213 237 7197 LA? COlOiCEV J uL 1 u Ou «L:1I 1 c"c w~l.7 r[SA ttu. cL.GDC'•1 r o9c . . r. ' -- -, • . ?hilip Morris oa? Stsel.f recopi:e Y.arlbozo's vilaerability.j (Certainly the brand's svitt.hins losses asons 18-26 year olds have been aisible Sa the % I980's, a-eratiag the eqaZvaleat of .3 share po3ncs of total saokara every 7esr. ) While tiarlboro could not be repesitioned .~fter 20 years of the saze canpaian. eeae clues'sv=test P?i azy be using ocller strateaies to protect ?iarlboro's coatribucian te their yoanger adult share strengz4: • Vir6SnSa Slims and Ner1 c have beea ,EslninY,dispropor;ionate sui=ehina from ?tarlborn aoong srsokers 18 24, allovtftt PA11ip l4orris to keep 32Z of Marlboro's n~t svitching losses from 1980,to 1983 uithin the •_ corporate fold - nearly Lviee P!i's fair share. (See Appeadix X). This su`=ests that rarlboro might serveSFK as ;a 'feeder braad', .•: eapcuring 1E-7ear-old snokers who can then be:r.hanneled to other PH ' brsnds. s • Virginia Slims' perforztance as an 18-year-eld 'fii'st brand' has iaproved aarksdly Zn tecent years. Ihis may relatE,to its cofter, more casual execveions, ohich a=e aore consistent vith the yovn8er adult Marlboro feeaSe's desire to noc be 'too bvld-. •, .1eGrt!A Sl7fiS p • Ilse Merit repositioning seess to dralLv it closer to tsarlboro, perhapd shortettint cbt euppl7 lines. N -2a•- • •.%`..• ' . J K R 000115 r. I= 0 C ~ 0 CO 6D. N F-+
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j t 07/10/98 11ED 12:00 FAX 213 237 7197 V N t. 4y M 1d "L.~ r L•.r.I • AY./ Xey Zoincs Abouc 1larlboro 1960's . . o . . 1970- . ,• : a LAT COY3iCEN . 1 \L\ 11V. L~Lr~..~..... • . ~~ j Q0a2 . » 2Csrlboro succeeded uitn a'firsz brand' stratagy urgeted to ihe Ieadiaa edae of the 3aby Dvbble, 1fio turned 14 Zn rhe 19fi0's. Youngsr adult smoktrs have been a eleat lesd2.ng indicacor of ?Sarlbora's oarkec share grouth• Marlboro wzs only a secosId sntry ia•~the taste/flavor filter =arket ti.ntil is• developcd Sts image-•ia=easive long tera campatgts/ positionint. This eook eight years of trial and error. SS • ?iarlboro's fisal positioniag, sec In 1962, aas In tune aich the mindse[ of the 1960's and also vich thi deasographic shifts aflong YvunYer advZt saokarr.. siace females dippod in Saportance dnring chat decade. •i Desptse Marlboro's aiascoline positioning, it vas•=lDOsc Equally developed among younger adult males and feaales ontill after 1975. Overdevelopoenc among csles vould have dSsaavaataged the brand. ;~.arlboro's younger adulc seoker share softesud In che'lace 1970's, but it: had built enough aging nomestua chat its oDti crersd slcved orly slishtly. • .w Certain e••idence suggests clsat 2Sarlboro's poslzioning has become less In tvae with younger adult snokars than it was In the 1960's. - feasles, nov.nales, have been tbe arowiag sector amoag yzuager ad41c snokers. 2Sarlboro has been losing strength among f emales. - Yo,mger adult Karlboro reles' interest In masculine isaagery Ss ao. stroeger zhaz the average younger ad%+lt ssle smoScer. Marlboro is a "bandvagon brand''today. Zssrlboro users provide- t2l, brand's image;j today-eere than its advertistag does. li3rlbdro stssds for 'the average•7onnger adulr.' Peer popularity is ita aided benefit. • llarlbore mokers balie•e in Its high Quality. It is se. a';s aveh saoother than TaZNS2ali, bne less strong. . 0 , - - ~; - . .. Younger adult saokers' need for `beldnaing' is strong atid may be incress2ni due to social pressures agatast snvkiag. 2Sarlboro ps~ortdes a aeaes of baongsag. . KatlbaTe eu=fers high svitehins between ases 1R-2i, but p6illp• 2forrts r.caiaa aboat zvtce St: fair sDare of tbose tvitchers. v1j Vir=inta 511as aad tferie, , . -21- R JR 0QO 116
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0?/10/9Q '~ED 12:01 F.~. II 213 2~ :9T JUL'1U-:.O WGJI 1G•J4 WtJJ SJILD'llicol I }levpe Tt SA+-r..ri 1 . ~ .* ~ SAL1:S's product braakthreup .ras 'lisht "ntlsol'. iCool nontilse= had been iza sarkec since 1931;•tiue it v--s advertised sore like a cola reaed7 than s cSaarette aad, apparently, taie.d like Zr. Vhen SALDK 2ewered the aenche2 and added a fslter, ir cut an 8Z nicre in tke Qarkat. At first, younger adaIt eaakers zdopted SAIEX as readily as older ones bvr, in tne ear'I 1960's, its la-year-old saoTcar s3are veat flat_ It appears that •- chis ha, more t.o do vitA VIliSTDN chan eisber SALEM or Xool - eAe vIySTOIi `bandva; n effect` vas drawing 1"az: -old saoka:rs • like a aaanet_ wher LtINStobi •~Sec ao in the late 1960's, SAL-T!M conld sYain attraSc its tair chzre of younger adult soalcers•. . . Although SAS...2i became stroa1cer aacn oun -er adult saolters of the 1970's , it_ has never Deeese- a rrve "first brand'. A aSr sttaze of younger adult smakers. tb.ugA, ts enooth to keep markaz share tteady for a 2oss•t1me. SAIEn ~s....~.~ .•~.r..~ .,. • N~ .-No..M,..m .n -. , Xeo: • `_ .. The key ttend for 1Goo1 vas the ettisrtint ieportance of youn8er adult Dlack ~, s.olCers =n the .arket. In the Health-*.eneerned I96a's, younger advlt Dl..cks dida't liek off tTom arskin= to the extent that vl+ites dSd. 3ecause of this. their is portaaea svYEed froo 6Z of 1"esrold smokess• in the 1950'e to 10Z Sn the 196C'r. • . Younger adult 3laeks of tlie 1930's to 1950'• had badcslly'daae vlth whatever arand vaa big 431064 yoonaer ad.aZt Whita as,ojc,ers CSee Appendix 1). Zri'tbe 1950•a, ebey be8aa to c,oalesee besspd toel, whiah on1.7r had a 2Z share moag °~ ~ .Toun=es adult i$sitet_ It vaa tiam for Slseks to bvi11 their oow brard in the 1960•j, ths heyday of Martin Luther T1aa and '3laek p=de'. 1 0 N 0 a ..b ~22~ LAT CoxXcEN . Z033 , rrsn nu. cucncoio4c r. ~c t -- .. RJROO0117
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C7/10!9e 11ED 12:02 FA3 213_237 7197 r.Ar coItcEN • A I h.s I ,... ~..~...__ _ ._ Xoe1 appareasly eapir.Zised ee this aspect at''rhe 196C'a by staply advertSsia= , ta ltlacks before Sts caapetSters did_ ]teol afis rere in Ebpny, consisuatly troa at Itssc 1962. t+ttea our recordt start. •Thts vss eisy7 for 7Coo,1, slac` Z=s aarly-60's penguin eaapaiV fit eithar race,.aad it vaa effectlve. Xeol ~ec3ne 'ct,al" and, by the early 1970's. bad a 362 share among younger adult Dlacks -- it vas the Black Karlbore. ~ YOOL sUM A-%toxc .1 a-r~-aLa sx0rM I9S0's_ 1460-64 1965-69 1970--7k 1975-79 1979-83 Black " 10% 122 17Z VAite 1 2 Z~ TOTAL 2 3 6 ~ ~ Souree: 1983.SDS 56z a`z lAz 11 ~1• S 1~ 15 6 .. Lt1ce Narlbaro, Xao1 capitalSsRd an the shifts ia tAe 1960's .arkez. Ilad, bT the 1970's, ic was falling out of step vith the trends o$ the tises - yann=er , adult 7hites vere•recurnin= to aaakinY, lea~!ir= Xoe.l vi=S~ a 500 1121 in a sector vhosF iaportance vas no loaser booaiat. Xao1 vss in a bind Sn the Black • sarkec, eoo, tiith;SA:.W auddeal7f apendin= about as snch as x.al agtinst nlleks. (See Appendis ~).~.~cao1 alse splintered i=s pesitiot~ir= Za the 1970'e, ad•ertis3rig eaeh'line asteastaa uZth its ava tnrutt - xeel ioa ws 'L.dy 3e Cool', l*ol ?[ilds vas doal ses, upscale, ere. X.ool vas vulnerable and Nevpor= cipitaltzed on that •nzlnerabilitr. NODL rrt qt...a.c3.• W+clk•+c a+.-c , -23.. (a 034 RJROOOJ1S magab -MOU W" as ~ &%
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o7/IO/99 'I1ED 12:02 FAI 213 237 7197 tAT conccE4 . r r+n .~ ~. _. •- r . . i W. G.Hi.~+LH 1 V~L NeV90=L ' • Nevport vas coapletely redoQe betve=n 1970-73 ---' caWpaizn, preducc, package,. Lhes the 'nev' Navport ~~eat ca aarkat SA 1973,.it vent on2yia6aSnsr the ~; aortheasters U.S., vhicb had baen a focal poiae.Lof 33ack aopalltton =rovth throughout the sixtles as S1tcT~s left the soutb., NeUport vao the first oeothol to eaphasiza SaaserT bat, an the bottao ltae. Fewpor[ went after Xoo1 vith dol2irs. Nevport's,.totiL ad sFeadisg ia the oid-1970's was only abovt 30Z of Kaol's, b,at St vas conttntiared In co:ze •20z of the U.S. gslf of 1GaYpert's budgtt vas Sn otit-of-fiose_ 3y 1973. laevpart's regional spe"diag againa= El,acks eqvaSled*XooL's ~+iatiooal ilacSc aurkeL spending. NevporC had Dlcked Xoel't piioe satkes, ',61th a size St could atfoYd, aad esseatially bsvltht it. The resulcs anoes; •yovn=et adulc snekers. especl.:lly youn=sr adult Blaeks, were iaaeditre. : •v. *-':• MM wMaSi-lAjMR-0 1wld _ •. +~rL:' t, ..; . N£kPOR7 Al.o -26- t". ®03s 1 . J. . RJROQ0119 . .. . . ,. __ . . ... .. - . - . . ....~•. _..... - . , -r•r• - _. -•
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07/10/9e IIED 12:03 FAZ 213 237 7197 LAS C010[CEl "VV • /{Y1 {7V. L~Yt_V 1 v'tL Sa the 1980'=, Neaport startsd ralZing ovt acr,ass•t2~e Soeth Atlantic. vha=W ntgratioe patteras of t.~a 1l70's shoved alaclcs 'lsad br:en re~rniaa. I}icker dati d.iring tEis rall.out period tead to eaafi:•a~ that 2tevport gained asoag i'~ younger adult Vhites as it =ained distribacZan, but it= fuisdamental azo,m~ ~i' has been due to younger adulc 3lacks. ~ IiEvPOR? XEXtAOL SWZ OF S?l01CER5 Sourca: MDD°•2racker ! . tsz }ialt 2nd Kalf Ist lia,lf 1980 _ 1981 Y_ 198Z __ 1952 1983 © 4Z fiZ --~ 22 18 .3 25 21 ) 18 9Z . . . : - > 36.6Z • 4.4 4.9 " : 5.5 5.0 • 4.9 6.1 --~ 7.0 >, •7_3 7_6 -- > 8.S A1l o! Nevpert's g=ovth has also bean dus to Its X,ins, nhtch cenmt bectar attune•d to ydun=er adult product vancs than Koo2. In 1981, Jc=ser adulc smokars rated botb•as acceptable products but tound Newpozt Xing vas sieificancly saoothe:. silder and less harsh than fC1nK. '(See Appendix x.) Zn qualitatlve vork, Nevp+ort YSnIF is e•ea described as•s '11=ht' (i.e., lo" 'taz-) preduet, despite ', ts la n=. lerel.• The SDS shor_d cnat Nevpors, like Narlboro, telleo heavily on its.usezs to pzovide brand isagery azon= rotinger adult ssokezs (See AppeAdix F). And, Revporc has the yeuatess franchise ot- any brand la• the surlac -- 53Z vere 1l-24 in 3983. Thus, St is na sntprice that Nevport-bas.besoae the alterna=e younger adult Sdeatity brand, ior those vha dea't. vant to jusr follov thn cravd. For 9L_cks,• Zt's caday•s. alcer.na=iv,e to Xeel; for wh.ttes, it's an alteraitlve to -- :Sarlboro. a , -u- .. RJR00O1ZO - %A a
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OTJiO/96 iIED 12:03 F.k.L 213 237 7191 taT coMMcEN • . y r.r _pasats Abamt sALLWjY9bGz/xeoj~*tL .y SIY/LM ' s Ia Sts early yesrs. SALE?S'r appeal ta •Tonagez adnlt ' aoalcers orer=hadoe+ed b~ WZUS2oet. ; was . SJt3.F1i saiaed saeag yeunger adalz smake,rs of the I970• s,' especistlly B2icks, by spendlas mora effec.tivelT agaSast•Xool, bat never ba= becana a true 'first brand-.. Xool . a SL Xoal's E'rauCn, mnch like 2'iazlboro's, }tinged:.on deaographic sbifts caused by the aetSasekiag 1960's. • Xoal vas' ia tutte vith the rising iaporeiace at Jounger adulc 3lacks in tlse I960's. +lse aindsst o! "slack Zdentity nade it time for 3lacks to adopt their evn brands, ratlsar than foll,ev the jeneral msrket. .Xsol gaSaed '3.lack Sdsasiry" by advertising to Bls'tks befo,re its compecitors. , - • S7hea y.dn=er adult Whitas Yacurnel co tAe wtskat of,the 297a'o, Xool •-as suddessly too 31ack to fit the youaa:r adu1C z:arket and be+csae •al'aerable. Xeol also splintered its heritage, posiriaaing-itself by sryie. Re ort . .. Nevpozt, L-ben it -as reposi tioefed, essentially bouSht T.ool's prize $erth Aslaeszic rsrkec by inceasa spendin j, Sa avt-o;-hoae and agaisis r .31etlcs~ ; . • ~ . It eppears,,;Ihat llevpozt has tasaed Jo.nXer adult Vhite ssekers by. aainSA= distributloa but itss futJaoeatal r,xg~ml.. t.. :aoag slacka. e Tevn=ec sdn! : eaoksss rsrt Hsvpart as •sSld.rlsmoother tllaa Xool. vsmc te follov the crovd. Iqavyorz dsers sse the msS.a aouree of 2tevpott petceptioas_ Zt is seen as the alteruactae yovsZes =dvlc brand ---tazr alac3ca, aa alternazive to Xool, for W2tes an a3ternative to lSszlbare. Zt's ftir those vlso dor's -26- 1 2~ RCoCA
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OT/10/9e 1rED 12:04 FAZ 213 237 7197 JUL'1U-UO MClI 1G•.30 MLJ LAT coxtcLr r tiA nU. , •. SECTIOk III KEY LEARN1Nfi . CULOG0/0'fG t r. z I N RJR00O122 ~ 0sa
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Q osa 0 7/ 10 / 9 e WO 12 : fl S FAZ 213 237 7191 LAT C010(CE'1 J UL-L U-zO MGJ 1 C-zi MUJ t' CSA P1v. GUGDLD t DyG !`. 30 V ZZi. `~ tta~KLKC: StaOWtY's COKCL1JS20W5 . •t• 1 The prevtous tto eectians 1,ave dlseussed the isportance oF a strong posii$on in the roonger adolt smoker ssarket and the stracegiulcireunst:nces vhtch~ bave, In cbe past, a2l.caed brands; companicv to'tackieve grovth among your,gcr adult smekers_ ly i:+c.=r«tin= the key points fzon these sectizns, aeve:rzl2 conclusioos c.an be" reaeAed. Z. M Ihp01[ZANGr oF YOtMCFR ADt1LT. SMVlZSS . Strond performance amang younger adult smokars is eriticall to ;en~eratinj sasraired s;.ovtR oeoenteos* for - brands/conpinies. -"2tW 18-yaar-old smkers represeat abaa= 1.4 share poinzs of Inereneatal volvme each year. ' A younger sdvSt szokar :Ao hss beea saiaed and zer.ziAed . appreeiates in value ever ttae because of Sncreased consussption. Older saokeYs do not. `• 1 • ihe biY=esc ciaarette brands of the last hzlf cmtuF:r Uve deriecd their strength from hSa1+ younger adult davelapmenc - Pall 2ia11, VZIrSTO!!, 2iarlbero, aad !csel. xev?ort asy ber.ane another such brand, but its size is currenLly Linited by distTibutiaa•and lack of a broed geograpliitil aarkesiag effo=t. In each case, Yaun et• advlt ites have baaa a len teim leadie iidicitoz o!` th_brand's aa.rket share R.ins. Typically, rsslor na= s-t sture =ravth has lagged the brsmd's younger adult •saojcei'Srovt?~ by at leasa iive 7tars. • Cooctaatas Iass ef yc.:azer adult strna~~ttfi Aas a"Yso beaa i leadinR i~tdieaeer ef raa~fce= sltiara softesess e d Qtt e~cline, alcha~L$h asin= aay bo].ster tbe braud's SaK fer s decude or ao=e. TAese Waeds have b..n the flsSship 'brands driviaa their eomysnits' perforaanc• and each bss been superceded by a b=and f:vu aAOCher cospany. Thus, younger adult grooth perforaaace has been a:eaairg indicatar of long term corporate perfexvance. " Ae peesemt, Fhi2ip 2Sorris aad Zorillard a=e the orsly caarusies sbeving steady younger sdnle perfossance gaiss. 1 : . ' ' •. -,-,- v -Y7- RJROOO123 _
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07/10/98 1rED 12:0Q FaZ 213 237 7197 LAT C010[CFN JuL-lli-Z3o WW 1c:Jr NuJ rt'!R mu cuGGcnro4G .' . :?tei or perforsaRe aslss awng yeam, er :w1= ssokers do not nectssarSlY bave a najor etlect on she=t ters catsl' aarket snsse. This seans clsst eompetiLion euy be slov to notica an llmyzevemnd af 3.7R re=:otynCe asoag yver+xer adul= st+orets and, therefore. aa7 •be slov to. react. - beaefits. Kovever, it is likelycihst st let:t tve eo three Yesrs. of close tZacldns deald be reayiYed to deteztsine the de=ree of 'see=ess ot i firsc brand- eSiorL. A 'ftrsc brand' scraeegy (vhicli:necessarily•car=ets yoaoger adult smokers) provides an opportcisity for uniQve loag cerm Yonn=er adult seoScers pcevlde the: aost concentraced svitcbia= opporttusity in the market. 1?bile i svicching straregx is inherentlY less cosc effective, 1t aay be aore feasible in eAe short term and ssy aiso prodaee oore short ttro< sh=re restilts. Soae swicchizs appeal vill be neeesskry tu build eaougb early slsare for a rii.rsc brznd- to hold the shelf. ` . Toager adult szakers ba•e been as likely oi'so_re likely than older snokers =n be early adapters of brands clsich have ultimacely sveceeded as 'first brands - avtx the lsss SO years. Yevnger adults have aoc flocked to brands vb1eH vera already Large tn ~zne totall markat, possiblybecause the eiisting older fr:acbise Sishibits younger adult idencificacion vi=h the brand. . • ' . lattesns ebserred for vIK52vW suggest that a-bindva3on effect' maY act-ue to a'Firat brard' ohich schSeves an I~-7sar-ald share near the Oz erel. wheq wZNS2021's sFnre zeacAel this level. younger adolt •seoicer trovtb was curtailed an both SALEM and Tiarlboro, until VYxSIOR'i share aga3n fell belev'thae level. II. SIICCTSSFIJL Y01JFcM ADVLT HB.kIiD SIRATEGIES Os ?HE FASi ,Zhe successful yovn=er, adult b=a-nds of the past `iave used sc=acegies vith rsany sisilar traes. -Ia nearly ee:ry•case, rhcsa ksastds have capitalixed oa rhai fol2oviaQ' trpes of oppostunities. ++l+icii vill'be discussed in mort detail. . , ®0t0 0 .~ A cn TUtesnal FsctoTS . ~ E. C_ Ctovth Sectors Vithia Younge= Adult Saokers m ctt'-of-Touch CanpetS,to='t • m ~ D. lroduet *Stlivery/Coemoricaelon . CO ~ w m a -2Q- RJR000124 n
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07/10/98 11ED 12:08 FAZ 213 237 7197 LAr C0NICEN ® 0C JllL-1 Lt-Zo WtiJ 1 G;aC wUD t f•u!. NU. LtlG%D f 04G t'. 411 , ~ . . . A. ESctes"s1 Faetors ~ [ • rsst per:eds of inteslse paDlitity an cbe he4lth issue appea~ to ha"t glayed a key rolt Sn the sncaession of tbe aajo= 7ounger adnlt `first brands." :` -~WZNSION capicslized on the fl:lttr boom. vl+lcb saired .o.:ntua fre the '?ualth scare' eaviranxne vt the early 1930's. - 1larlbare capitali=ed en the ebissging aix of aales/fcr.ales in•she 1960's, whic3t azase froa•their diffarenc znsettoas ta the Sntense health publicity of 't2sat cime. - Koel capitalised on the statlar Alft becveen 3lacks/171Lices in the 1960's_ .. ~A . 8ased an the LiINSTON ezperience, pzodnct zbreakthrouQhs' vhich address ezternal factors are more likely to.pzoduce short cers share results than those based prirArily 'on iaatasy oaats of Youts=er adult swekers. B. Gr h Sectors Wit.3in Younter Ildult SmolCers ~ Successful 'firsc brsnds' hrre capiulSzed on subtle demogrsphic sMtLa viLb1a the younger adult saoker aarket. xheir "formuSa for suecess" appears e. have beea co esrset the FVI= profile ot jounger sdult smolc4rs, i_e., to be bettar developed4 sacng sex/ race/=ee=rapbic gYouqs vhtch are aaising lapor.zaacs, bat enI to tAe exLetlc that reflects tha gSoup's rate of Srovzh. This 'feraula: _v_ill_usnally impl7 broad based,_nesrly balanced apaeal rather thsn everaophasts an sale/teaale, 81acklWtte. ar other faetors. - 0 Pall Mall +as strongly developed amons younger idult fesale smoke=s vliile tneir Sapo=tsnca~oas-lacr=asint sost rapidlY. vINSTON wae inerodacea _u!?ser yo.ager' adult female' 1mportanee vas aeidestly ine=easiaS aed•vas"slightly b.etar deyeloped amott,g lemales, but essentSally a bala,ncea brind. ?S2tlbere vas slightly better develeped haong-msles during the 1960's, vhen fesil• i=pertanee dipped. byc vas eesentially a balanced brsod until ag=er 1975. _ ~tool was hiYhty developed asong alacka at+a gt'ev wh.a their Smporzance aaoat younger s4vlt•'smokeis curged in the 1960's. Nevpert tasgeted ]laclc.s'in the northeisrex'n U.S.. vtkere the 31ack paptilation nss arovint soat rapdd2y ia the 1970'r, and bas toee{ =o the .eue5, folla..ing the return eigracian. ~ ~ 0 r .o .a ' -29- . ~. . Q ~ a a RJR000 125
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07/10i98_ AED 12:07 ~FA1 111uJ37 7197 IaT CD10iCErnA N mi. c=OCOiO4G 49 . a. CVovth SeeLass yls33a 7ounYer Advlt Siokers (Cent.) 4 0 • The damiaarst, trtnd in the younger adult' sooker aarket aver the Zasc SO years has been-the rising Importance of feg).ales. Eccaose of thxs, the aa~ar• "first brsnds' hi,re been overdevele ed aoetsz sales oaI durin their erS.eds of ' decline. r,trlboro tLas become an+erdav oped ,aaer~ yennaer adult sales only at=er 1975,•+hea 3cs share maa safteniag asen,g 7ounaet zdult fesale sQokerd. . One key to Marlbara's sueccst',in capLVrias the Eaby Subble ', a9Dears te he that it actsaatesl more 18-year-old saokers t2sar VIXSTOti, vizhln =ha ynLngar adult smoscer sarke=. That is, it qss clearly a"firsr brard", vttb re2ative,l,r lover svitcAinE C_ WIJISTOli's campaigm had a'slLghcyy temle sl.ant and s o did Sts fraaehise. Yn the 1960's, rounaer adult females vere losiaa impostaaea amd sales vera ~gaiaina - a Decrer ftx'far Karlboro. VIPSIOK'e popularicy ssaosrl oldet- cmolrkrs say ha.e sade it diifletitlt to aaSntain an ezeluaivelT youn=e=' adalr ldenttty dnring the 1?60's,'eben ctut vYrie vas moct extreae: r. 4 i . Xoel fowW itself 'seo Dlselc' iai tDe 1970'• as Jouagsr ad•olt Whites vere rapidly =esiinimg varkat impaTtance. u 0 ! ~ N . ar N a appeal. : 4uL-Cl-Tevth CaansetiLots the' 1950's. qI?fSTCK fit chose vants. In every case, che maior youater adult brands have been succeeded h a ca etieor`s brand osittoned cz be si tcatttl dlffereat from the ptedeeessor. The safteatAg deeline of the ma.jos younger adult brands seems linked to in inabiliLy to 'szay in tune v3.=A the tinves' as vell as 3 naV:eaapatitar 'rc,arted in tuae vith tbe t3aes7: at Sts Snc=adnctiaa/YZposltla.-sxn=: Vhile L e real ctiteria for bei.na -in tuat sre• probably the mash betveen is;aaery atid/ar ptoduct and ;eze *antF of youn;er adult saokers -if the times,.dasographias are a.us. iool for)Sdenti:yin= the likalibead of that mesh.. a Pall lSall ber.ztae out e!`. touch vith, yoer=er adn1L- ssekers's product w4nt: okea it falled to etfeetively Teact to the filter boom at • WZXSIO~ uQ,s the victin ef snbtle shifts Nstch moy have been transpareat or saamed trensitoty at the r.ias_ •-c= uZ1~ST03t's - 2isht: heatt.d- essysi=a: ffs vell• srith chd-~ndezt ef the 1,950'e, Mse did not !ic as w11 witk else- tis_aa cia•a of inuase yooa=e=-adult-rebels.as 2sarlbora.dZd ia =he 1960's. RJROO0126
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37/10/98 pED 12:0a F.U 213 237 7197 JUL-1U-."0 FIC'J lC:.13 WV, LAT CoUcE*r • : rl1A PN. LUGOe_o ( C4G C. Ou=-Of-roueh CoooetlcorR (Ceec.) +`. _ I~ l . liarlbero's ad+.ertisin61Pos1=Soniag seems to Aave became less ia touch vith the denoaraphic trendo. vi:h3a pouaaar adult cmoke~b of the late 1910's and 1980's and, perlsaps, thel•r aindstc. ~ . 7cunger adult ferale saokere +rar+e tb.e tiey Yravth cactor tn the 19I0's aad 1980's. Todar, 1s=rlboro's younger zduYc ssYe cnokers do not fiive an above average isiterest in oascvliae Lssagery 'versus a21 yodA=e= adult aales. • P'bilip Morris cay have reco;nized Marlboro as vulnerable. Karlboro's dispropo=tionate kvitching losses cc Viraiaia SZSas and l:erZt taad to feed t'arlaoro's lotses bacfc to iM. Ihe campaign nodifications on cheae.,~raads may sbo;tcn the lines of supply. ~ D. Product Delivery/Coeaunicattoa . Tbsoas?tout the succession of 'first braMs1,, rouager adult smeksrs have.noved to 'milder produets. : =•= :lall 2Szll pronised 'aildaess based oa t=s 1en=th. - V=xsTON, as a 111cer product. ~~ould be s.ea as sl2der skae aoafil=ers. - Za the 196o's,.Y2rlboso vas 'ailder', i.e., si=nificantl7 •lover 1a t:r, than 1iIIDlSTON, as aas advertiled by the FZC. ••Today, Marlboro is still rated milderlsaootDer thaa VINSTON bp yosnSrer adalc enokat.; amd Zs'preferred. - Xool .aAd S/l;E.`i could• Le seew aa Uilde= b:eause of their meathol. - -• Ne?po:t is perceived as mllderlsaocthe:.t2:aa Xool. ~ Succssstal -fitst brsads- h=ve vsed'positive produet rxasages. ! .; - pall l2x11 eaphuized ffildez smoktng 'pleasure". WIXSTON 'Tastes Good" despite its-filter. Marlboro is lahere the flaror Ss', althoush historically and presentl7 saoother than X1215?oN. 1Levpert apeaksa to smokS,a= -plsssvre'. 11 RJR000127 r.4t ®043 r
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07/10/98_ WED 12`09~FAS 21^W237 7197 IaT COYbtCEN i`v. cucucuru~c ~. wa . Dy omisstoa, no braad chose produet•%.ssa9es zes.inl th., aonsu..eraf ptodaet ae=aziras es pertray ebe brand as a 7ftak clsatet=e' bas sneraeded as a yountez advlt first brand_ Tor exs..pla, aar brand vhich. has speclfiully eaphasized '10v tar' (vhicb Ssp1ld+s rema1n1A6 tar) has been 1laiced ca svitchin6 gains zaong mtuzlnt ssekers. . ,• • •. .1: u -~~ . . .. . , ~~......_ RJ R000128 ~~ . (a 044 I
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OTi10~90 11ED 12:09 FAZ 213 237 7197 LAT COY3IC'zx __ 1 lYl IN. SECTION IV „ ~ IMPLICA;IUNS AND RECOMMFNDATIO}7S FOR RJR 0 • ,. . _ ., RJROOO 129 l 1 li.' 0 W2 ~ ®04S ! &.22 ........... 'T .
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07/10/98 - 1rED 12:10- FAZ 213 237 7197 LAT COlOICE'1- Iv. 72igL2CAT2oNS/DIECOMMEttDaTZot+s FOR LIR . 1 1. Yevages adv.lc saokers .re crirical to Lik's long ce= performaate and yroittabtltty:' Therefore, XJ9:.lwvld " a substan=1sI long term cor33•cbeat of manpcver assd motfey, dedlcztid co yoaaser advlt si~oker pra . M uaucually straag coaxi=seac fras Z=cat2ve ?nate-i vi11 be necessary, since major volame paroffs %say lit several years behiad tht ' S•aplemencatioa of a successful Yeunser advlt saak:r straceLl. Ihis tise lag can also aagnify the penalr,les.for vrong cures ia the development and iapleaaneation of ronater adult smoktr pratrTas_ To prevZac sucb problems: , e RJ'ti should develop obiect.ives, pl.:nnt_aslprocedures, .ad aarkerability crit~erla !o~?o_a~ser adulc brands/preLtraes vhieh retleec their uaiaue, leo~ceza character. These eay diffsz ssgrificantly Proas the approacbes/aeasu=es vhich are propriau co established braads or to nev brands addressing older sa.ers. •._ - Thorougtsness should be eaphasjzed. • . • ~ - Sanovatioa, experiaencation, and multiple approaches .hould be encouraged. - d - lligorous, objective coasuxr-basad aczloa sraadazds sbould be establtshed to ensura thac voltiaa results wi11 vltiaa=ely follan and that caacinuing ?Sanzgeaenc commitment Ss vaszanre.d. • SLT3 sAould aake resonrces availtble co develop/iaprove Zts_ca;abilities tv ;`;:oughly 1 fy and zraek desolCraphics. values/%*sats, zed3a et:ec=iveaess, and braud perloraaace vitKu sectars-af the Tounger adult" -: Hec=use of tha saositiviry ef th+a Tewnear adulc s.eker mazicet, brrtnd ! ~ developmeailssnageaaat should eacoa-pass all aspects of the sar3ce- -In __ saoker v ulation. These Lool.s Qi11 be esttic=ll to the develepmeat and , smplemeatatson o effective prog:raas aaong Yovnger adnlt smotiess. -- and aaiataia a lang tera. S=le-adaded focus to all elements pro4uct, adtertSsing, aame, packaging, media, proeotioee snd distrtbattae. Tac=ies vhicd coaSd eesatively affezt tne S=eviLy of the stracely ihottld be avoided. 0 -33- C U ®o4e RJRO00130 „_
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®0t7 taT caSaccEY 07/10/9Q WED 12:10 F.41 213 237 7197 .; . 1 2. W'1 sl+ov2d aeek ta better vnderst=ad za4•capStzlize oa the orarket s eondZtloas/approzebes viirh tsave sssccessfully creaced rouAaer adulz • stseatth for brasids/ceapaates ia t2sm past: A. -tkternal Faerors :1 3. Grovth Sectors Aaond 7ounier, Adult S.okers C, oit-Of-Toueh Compesito=s D. Product Dellvery/Covaunicatioa • . sZnce WIt's protesses/tools bave been bet=er attuned to svirching effores tbhaa to 'f_rst braad' sttategies, tine and •learains vi11 c2e.arly be reqnired to fully assess the opportunlties avai3sb2e ebrough che:e avem,es. It should be rteted char the nVv/establSshed brand prosrasr, in the 1964 lPlan already address the aajor issues/criusds iderrifled belov, vithin the fraaevork of current k*ovledge/prccesses. These Plans shculd continut as a basis for AJA's 1984 aarkecing:ef.:otts, but shovld be enhanced by a fullrtix dedicatios of resources•;ro ensure a:olurloa co the problem. r A•. rstez-ial FaecoTS (DetaiZ Sa Secrloo V) , SOCIJIL wCCEPWZLZhC I A breaScthrough product vhtc4 effecci•e17 addresses social acceptability ceneertss e+ovld revolotioaise the aarket as vI?1S2oR did Sa the- health-coocesaed 1'SQ's. 2'Ae nltSmate site of this oppottmity vill depend an younger adult smoker aeceptaace. ?hvs. RJ]t sheald corssSdsri - Ttie need to develop a'social aecepcabllity product 'whose saokiaa benefits meet ,Zguager adnlc smokers' vsats as vel]. • -- as acher .saekets' wants. Tlaaeioa..ar -s..edrastty -aocti2'•Yccepubiltt7 bramd vhich coold eaphasL-e r.atssit=w Jo=L;=r sdult SsaaerY attd - pr_ et posit:ves, ehsss avoiding the con=otacioas of "soeia,l cobeera vhieh yoaiSh cikely, be. assoe3ated vith the first eatty. - SDus, = eonid enter iti ovey "Kerlboro" to fel2ov the 'TiI3rS70N- of the 19a0's.` . • ?I~Iti~:z PrieSng is s key t..evs Sa tAe ZndustsT:- Some e:videace sugsesti tha= y.uaser sdult saoicers are Znteresssd la prlce. bwC trallkslr to adept a brand whose 22ay `hoojc' is price. Ie masLaise the gessible prictaa opportuaicz• aaoas yrounser adult mokara, several slten ativza af,ovld be .canstdered:. • -34~ . v. 0 N 0 ~ a *. .. . •.-,..,. RIR000131
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07/10/98 RED 12:11 FAZ 213 237 7197 LAT CO![3ICEN-. e ' - _ - A ysiWvsZue brand ~+euLd~p,.eaa-a te*+sptevws •ecaad -21aek- to reduce peaib1e esnA~~z' lecs~eea 7oohger advlts' value •Qnts aad i.agezT vanCS, ?4ie' most sale3ble 'beetcs- az! 1ikely to be based oa ptodoct quality, since these pro%ride eas7-so-ezpIsia publie reasons for swizrhinY. Suitable iaagety should also be used_ .. ~ •. - Siace yeuager adult saekers vith above-average :acesest iA •ilue are concwtrzced in the Coolness savent, it is passible that younger adult saokers mighc be respoasive to an appropriszelr posiciozud :value-orientcd aentltal entry. .9 TactSca137, extended periads• of closely uraeted paek proosition (B:G1F, saapliag) iri seleeted cites convenience sseres, milirity e~cchanaes, speeia.L events) could lead to brand loyalty frem repeated tzial. This sAould be considered an lavestar=nC proaraa_ B. Crovth Sectors Azoog Yonn;er Advlt Szokers (Detail in Secria, V.) - . Youner adult Histanic and ElacSc srokers -should be key = ~ur~ets, siace they are Yainir= iaporunce Sn tl+a yonnser adulc• smoker oatkec. : - Yeseutces/=ar.povar should be aade zvailible to t.acrsasa :.understanding of the dJnamics, wnts, and eYecutsonal • seasitivittes vithin tbese oazketa. , - HeavT-up sdvercisias ia.selected zedia are likely to be beaeficSal agaizss: yemsger advlt, 31ack•'seakezs, based oa Heopost/Xool bistery. - Coepeticivs advantage could aeertie fsoU these sptcial market prograns, slnce ?bilip Ro=z1s has lateaslfled Sts Blackl8ispaaic aa=ir.eting efforts. Fe-ales ars. --zoaa~~ina to gatn laport:ece cnolcers and, 5 ased an their diversity, should afford a numbeV-of potencial opportmmities. , - Stnce che coar3noint trends to vorktus wmen aad "aea *ascolieicr- isiply greater coemeealitSes betveea tbe sexes. a dnal sex btsM uhich appes.ls ta, bae 1s dot limited to vasen may be 'in tuas vith tbe.tises.- . Ln ~ ~ m ~ 00 ~ w 00 -. Stylt/Dress' remains a prouetiaeed interest tmat younger adolt lsaa3+a saakers, lnae ahevld be exft*en=ed ee pso+ide a clear po.inr of difference sad not be 'toe bold.' .. . u• 0 . . . . ~„ .,~ RJR004132
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07/10/9Q• • 1/ID 12_ 12• FAS 213 237 7197 LAT CDlOICEY S a: :.•••:.. . Grovtb Sectors wai.as `fecsazer wdult*k~sooksrs-(Conc.)1 .-Novir; ap tn the vorld- has beea ideacifSed'as a ke7 enduriag raaz aaons 7ounser adul= seokerr.~ Ibis laagety need is 1lkaly ca crow, since younger adults vho follon the Iaby subble are like,ly ta esperience limited oppo=twitles for cradiciaaal cvete:2s. ZSa:red opportunity to -sete vp' ••ithin the escablisbuenc zay lead youa=er adults to :scTe sacrepreaeurial n+eans of success, sueh as fane via tAe Derfossi"sng arts. 7his type of cancepc aeshes vi=h youn=sr adults' key activities/ ' ir.cerests, appsrenclr represessts an endtiring vant, and cherefore otiay previde an izMovarive op?,ortunityo ta be clearly different fteu eorpetition. .~ A -status syflbol" brand ma7 attract soae younger adult szokers, as an affordable canpensation fat other luxa=y items, ii it can ba raxecvted to •.key an youager. •adult definitions. of -class- and achieve-cleir di:ference versus cnapeti=ien. •4 7 . Dasad an history, RJR should emphastse coopetitlvs efforts *.-hich are clearly different troc the target braAds. 1Lead-on or Ssitativa strategies should be p.xsued as detaas1*e rather than atferstve aeasures. Taos. Vjt sbould tar=et younger adult saokers bssed an their inherent waats/diSlareacss rather than 1cttSng cnopecltors detse the narkas. ~ Marlboro bas becoae soDevhaz enraf•-taach in tAa= it is too• male to folly capitalise on the fasale Yrov=ri ieetor and its masculine Snatery is less of a.-book" in the 1950's. 8owever, 2sarlbors's users themselves pro-.ide tha. brand = strong positioniag as an ldtattty/belor~6ina brand. . Since ?Strlbero Ss' noe llkelT to be -- pr~etptzb2a -oa Delo:gas and iv oot••sLroe•gIy.jpso£itis$ froa .its 'assenlinity-, osker less ?aead-ea strzcegis bold aore prosiU as presees. ~ Marlboro ssokers are half of the yo+rnger adult aatkes and, tAuo, eaeospass a divezsity of vaats. Z71is iaplies c'nac suecesslul atcachs oct any key• ssctoss of th_ 7oaager adulc earkec are. likely cs nort ?larlbora. 7hus, •a- varierZ of . aPprosches .hould.be develned to addzess the s ctrum of yeunger adult saokers rather thaa 2iiitina creative options y detxnsag ca. aarxet str4tly. ia cex= of lSarlboro. V I C. Out-tf-?ouch CeapetlCots 411 -36- o a = -- +R JRp00133
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07/10/96 1/ED 12:13 FAZ 21.3 237 7197 LAT CoUCEr . . .1 .Y• .\v. ~_~...... . ,._T4• . . ... C. Oat-Gt-Tovch Coeaeei Cors (tont. ) - VSsg3nia S1Zat aad Kerit should be bigh Dr•Sority coome=ici." , tarxess, siace they app.ar to play a key rol•e Sa detending lt,ilip rtorris against ?sarlboro's tzadltionally high •• svitchia= losscs. - 7A=CE a> a kave an ep-,+ortunity to co .petr moze etteettvely for youojer advlt Marlboro switcllers, based on its history of svlLchlAg =aitts trom }iarlbora. (She« in Appesdix U). .. • L • D. Product Deliverq/Co=asnieation . Saooth. oild prodset delivery i aeess. co ha-e been a kkey factor in the cvccession of rour,ger adult bta~dt. Ikezefore:• :.., - 1tJS should ensure tAzG protyet vlsats aaoa= taokers 18-2b are fully underscood and ref2ected eleirl7 in aciioa scandards ~' far produc=s tarse=Sn= younger adult ssokers. - R.*R sbould give hiah priority tc e?3minatins eleaents of hzrshaess fraa its yeuager-adult-targe=ed preducts. .. _ . v '::!; . ~ cAould use eopy stzaeegies vhich emphasize producc posZslv es 1lI • R s , , z t rouoger aduls sooaers. ConnozatSoru_a! -vuk7, "corce=n.d-. • oz -lo4 tar- should be a.oided -=nd elefleuts. of mtld, snooth, rieh, c=oicing pleasurc should be eaphastzcd. N 37- ® osa R J ROOO'I 34
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07/10/98 WED 12:13 FAS 213 237 7197 LAT CDIOICE'1 ~OSZ sECTIOU •v s. ; . KEY TREHD DETAIL r .. v N O RJRaoQ'I35 t
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07/10/9e WED 12:14 FAZ 213 237 7197 LAT CDN3IICII't • V V 1.r •~/ V V A\.N ~ V ~ 7 LH~I k~ . .Yl LV. vVf.y..V 1 MTL p~ICI1~ • 1 . . . Opportuaitv MalysIs Pricing is a key issue boeause of the pressures ot the FET iacrdte and the ensuing surge it+ ssles of aenerie/privace label brands. The !upaec of price ora yourger adult snokers is i coaplez quescien, tihich is likely to regnire additional Iearnlnr, over time, to eoapletely resalv4q.- W• Scudies by the liatieoal Bureau of Econeetiit Research (313ER) vere used by cha gvvernmeac as a rationale for the TfiT iacreasa. Tkese 'studies indicated that price had a auch stronger effect on saoking by younger adults, particularly oales, tlun oa any other aee bzoup, because people were less likely to scarc smokiag in an en:Kroneaent •of kiahsr cigarette prices: 2nus, over an extended "per 01 tSse. Y_.oungeT adult smokers vould tend to becoae lesa price sen_itive, since tlwse vho react aost sttongly wuld :aoF becone saokers. tiovesr, the NSER studies clearly ieply that price Saflikences 7ounser adults, so that ptiee/value'na7 offet an opportuaiey for came shate leverase aaonc current youaxer adult svokers. S`tratesic Alterratlves ~ 1. Ia t!!e 1901• SDS, yomger zdult males vere vore likel7 chan any other snokers to sa7 they would buy Eenezics for any price differential, large or small. Yet they vere least likely of all saokezs to report a geaetic osual" brand. The explanation is probably coaflicting van=s: ~ - Yeuatei adult males •+aee te be seen as suecessful, soe,eone vl+o buys the best re;ardless of price. - - - IheT Jant to ttiske s=ood S=pression on others, saoke• a brand acceptable to their friends. -• :l+ay have little iaterest in being ssea as 'saatt chappers". F:eld reports :=ese t-he aaicsrp 3arksc eoatisa•chia confli=s._ " Cene.rie sales vers boooaa= but aone ol•the aea vere-feea"saaktas zbem -- because they vere - pvttiA; tks tanertes in }farlboro paehs. :~`IoeM+er aaalt•lasalss bave.a asse average.ats3evda tovsrj eoat-eonseious ~';ira=ery bnt are also anllSc,elr te adopt aenerScs, perhaps because of conflict vieh their etia 'sc}wstd serZviag' wants, sueh as' stf:,e/dress. Thvs, to anslsiae ~perCUalt9 maag )ouulter adult emokers. a orlcelvaloe' , brand vill beed e secoad "hook" to its pre os~itiea to allov un er adult enokers to svit on the basis o ocher, sore seCCILZAbh v=ntr ss vell as prlee. e las=erT adtisSsa~Is, pre y necessary, to sl.ccess, the moet likely secood "b.ok' 3v praact qcsality/taste stace tbis' ' 1. a,swre essllr eai=essed *ublia t.ssea for adeptson. Eaa<aplea voald be .' - coapvter teC?Mo=og1 prodvees Setser s•oke •s lower cos=' e= -pay tot the • best product, not the big biatv3 name.- ar 0 J ~ N 0 Im r r ..~r•~. RJR000136
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q%Ja. av w wW lL•na wai.w I 1 Hf IjVq 6.V6WN.•r / V1L ~!e 2. Yovnter advlt salis in the SDS vere aosi • likely tlssa st+y otAer saakc~o to have taken advantage of E1G1F offa=s. Such pack proootions provide th. savtnas benefit vtchouc conflicting iaa=e~ry buc Urpicallr Yield tz14 or occasioaal usage ratnsr than a change lts brand loyalty. Gartoo offers, ee =hf .thar ka>nd, eeel to reach older seioksrs. But, Lf lL1R cocld elosely tarset aack price proe/otions co yvnater =dult sook:rs oves ia extended 9etiod .f tlae, brand loyalty aighc be eaptured. This vovld be an itwestsetst protraa, Its cosL ef:ectireness vou d depend oa hov t=ghtlr pco.otioos could be tar=eted to youAser advlc saokers via, fo= e:at>ple, ailitar7 eschanges/caateeos, selected corAtaience outlets, etc. Any other pricr•zactics on established brapds could tend to undercut their perceived quality/value. 3. An SDS profile of yoanger adult nrokers 'u-ho ?+ive nore iIIterest c17an their peers ia z•alue brand, but lover confidencs Sa generics, shoved high Coolness Segoezt development. Alrhoatb, as s4ea above, price behavior may differ froo espressed vnants, there msT be sooe-li3t higher poLeatia2 for a a,eachol entry to appeal to younger advlt rsoksrs voa t.1e basis of value/price. Vey Toiets •' ~ o Any erice/va~lee szrace~r vill need a preeapcivc second 'book' to mzke it ~ sasy for 7s~anse= adult ssoteers to sviteh for a reason oCher than psice. ptodnet-based "boolcs' are aasiesz for consvxts to publicly express. . Si nct younger adult Coolness ssokers have sooevhat above average interest in. Yalue. a nenthol entry oay varrant consideration. • Tactically, closely taraeted. long rurairg 31GIF's na7 yield some Sounaer adult svitchins (as opposed to trial).• ., ® . . , %A 0 . . .O ~ . •....,.o . :. .. RJROOO137
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4OGIAL. ACL-~Y Zyll I1.ITl . ... ' opportvnity Analysis Social 9ressvtes agaiasc svolciOg ste high and -increasing. This ne=ati.e ' inilu.nce is sauavhat slmilar to tRe liealth stcuation in the earlr 1950*s. Sheretore, it is pessible that Erodvcts whSch eflecti-ely add=ess the xrceived ~, social •negati-es of sm_okine aad also provide ad'eqvate soo3cer bentfics could reVo iz.he fnture nartiet jnst as filters revolutlonised the narket • dur:n6 the 1950's. It is possible tbat W31 will have an opportuatt7 to repeat , the vINSTON svccess in rlse 1980's ealwironaent. : The long range ia9act of such products on tbe Ind'ustry will altiaatelY depend ou *.heir aeceptaaee aooag Younger adult saokerz, just as the Filter revelution did. Ac pr:sent. yoar:er adult saokers and noasaokers are beeosng po3,ari:ed on social acceptability - younger adult saoke=s sho'-? less concern vith the issue than ol3er sso:ass, rhile youaYer adult nonsazkers are soeev}sat aore wncarred. . 1, , "In =eneral. you ars tare acceptarle people if you don't saoke.' to z Acia SxOxZRs raxsx~>o:~ts 18-35 .. ' <9.32 ~ • 73.2 23+ 33.3 71.1: • Tocal 54.4 ' 71.5 Soaree: 1983 Sooking Attitudes Study Givea yovager adult snokers' keen interest in peer acceptaacelspprov=1, it e is likely that ova er sdnlt saokers vould be iaterasced in a btaad uhich effectivel a d_esses soetal acce tab32it and also rovides the otber saokln .bene ics• they -:.at. vever, if thaz.brand in positioned as."to s117._. cone.raed , yaunger adult saok.rs zay try it as a novelt7 but are unlikely tff adopt tt as a regular brand - yotitn=ei adults uTo vish to'be seen as easncssaed' ase eore likely to cboose to be e.oosmokezs. 0 Strategic Alters+ati•es . l. First Entry hrard , ' U LJ7l atAie•es Hrs= sat=7 %*ith a.ocisl accepcsbilt=y brand, 7o+~n[es ~ adult ssoluets ase s,.re. ].S~e1y to adopt it if tha bsand propaaition is as positive soi s.iastress as possiyle. Inis vss essenttilly vZKSE02t~s approach to tbe beslth eoneerss in tbe 2950'.. WL`tSl= let Xeac and etbess .ell "aafer' filtess, vhile VZNSI'Ox let people lator it bsd a f11se= ant eapha.ised•cbe .eoitt.e of taate. For aacsoqles o Ihe added product benefit aSEh= be -enbaaccs .ociabiliLT' rather than eoartasy (vhieb implie. peesatia's a.approvsl ftoa otbers). . .. .---- • - ~.._ _. R J ROOO 138 v 0 ~ . ~ ~ ~
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V V 4. ! V _.. ..%.y 1 L•"V N V.+ I IY~ /w• r..~r~r.r7r . Ihe nAnee, padkate, a d pott-introdaccoiy a 0ertilieg Cance clear awareness of the Dolat of dlffereacesas esrsbli'ahed) conld ; esphasiss sup9ortable claims that che brsi+d also provides a fvl3 aeasare of bes.efSts of 'old style zilters' such as caste, sacisfactioa, drav, and imagery. 2. Second Entry Erznd Zhe oppottnnSty aa7 be greater :o= a secoud entry social acceptability brard to establish'maiastream appeal aaon= javn;et adult smokers, since tre first ertrp wsc•p.sh the pradvet differesee: Thas, the firtt entry eight .uco+satieallr be vir+ed as -coecsrred- .eea if' tt went aaiast=eam post-introdvction, i..., tvictily repositioned .itselfr Other advantages of the secznd eatry strate=y could be: . The strategy is equally viable vhecher ZJ8•,or another coapany hits aarkec first vith a social accepcabilitY arsnd (assusaiag that p.oduct develepaeat ciaetables -411 be .i.ilsr betweeo eompaaies). . UZi cquld cover tht bases by offering both a"coacerned' and a yeun=er-adult-nrienced entry. If the first pa'adaet Ss a satisfaetory saoke,•-At could be used under both pesicioninss. • 3. LSie'Esteesioas If soeial accopsability cetrtes eaceb oa, ll,TZ should be piepared to defand its established brands witb appropriate line e:tcnsiow. Althoush a eaiastreaa second entry brand covld, itself, be a line ezteession, this vould.dilute levera`e of -the nev var to samke- +assus -old style filter cisatectes" and allow conpetitive brzads ta aore eisily respond. 7as least likely candidat.s for this type of lirs axtemtion vould be brands coaaitted to `Virility' such as CuLL and, hopefully, 'larlboro. . ray °oietits prodvets &-jressir.g social acceptabllScr could revolutionizs the sat'ket ir< a. . _ ..• the same vay iZlsezs did isi ths'-healLis sccars eavitot~t• a! _tle. 1930' .• IThe loo; rante ontlook for such procncts Vill dtpead oa their aeceptance'Y " yruaser. adnlt saw)cezs. . . , .. . To be aiopcad by rma=or adult s=elters. a•ocisl accepcabiltcy brsed shonld: 1. Offer adequate snoY•Snr tatSatae=toa a; vell as effeetive relief ftom soc:al pressarc:. • ~ , 2. Se Dosltioned pasicirtly satbet' thaa sar -soeLallT "nees'•ied', perhaps using s.entia23y cae V1XSrCN arategj of shs 1950'e- • ar • . .e. ~l teeond eatry seeitl aceeptibili*•7 'raad is aore likely to be able to positioa itself ia the younger adult miiastrssa. ' .-• . . • . ~. . .r. • ..^~ RJR000139
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B1AQCLISYJLytG `IOt1kGElC •~i1DULT 50XER4 . 1 Oppertstnity Anal7s18 7oca=er adult u:ck and Hispanic inokezs awa draaaeically Sacrea.Sag in iaporzance snd vill, cnnser.atively, cosprise•Z0X of the 1E-24*mazkec by 1990. . PYO.JECTED 1965 1916 • 1960 1990 - •1BLtCX . • • X Fop- 18--24 11.2 12.4 • 13.0- 14.8 2 Saakers 18-24 12.9 13_b 13-6 Inde: 113 • 108 " , 105 98 • • xISPa?tIC Z Pop. 18-2Z NA • 5.7 •..7. S 9.9 2 Saokers 18-24 Zvl 94 •3 9 ~ 5 . .1 Zsides NA NA 32 32 31.ACX• & ?115PA'iIC . ~ Z Pop. 18-2` aL 18.2 20.~ 24.7 2 Sookers 18-24 XU NA 17 . S ~ 19.6 • • • , Sovrtes: Csasus f ureaa; Popvlatioa for the Califorais BLACXS ae a t.l to al k - pp ae a. . . SRA18 AliONG ffiAGX S?l07Q:7ts 16-24 •. 1980 1981 1952- i9a3 .•. lCool 34 . 6 l_ 30.9 27.9 • 21.9 - 4.3 K"ort K 18.6 22.4 27.2 36.4 Ln + 5.9 sAi•i2! 2 17 19 2 3 ' 17 13 6 2 m - 1 . . . . . m ~ Coolaeu • 71.3 . 72_a . 73.0 . 72.1 CO lfenthol 68.1 a9.9 ll.S •88-~ + .1 ~ m Pispanic o.nilns St"dy= 'rroJections of Sispaate the 9.S.. 1990 i 2000'.(Cenc:r fer Caatiaaias Study of EcoaoaY); -}kal,tb, UtS., 1981'.• Sissce the itoel- Phaaoeeaoa beaaa in thG 1960's, YoaaSer adult Blacks • Dave no.•ed Increasin=ly to DtaLhol Praducts,-wSich.hive accovated far 90Z of the ?ouoser edulc Black mr.ket in rezeat years. Ia 1983, 722 of Blac3cs 18-24 amoked oae of • che 3 aajer Caolaess braads, zi.thou=b the aesmeac bis beea =etti~ soae ~ce3ap.rStton fro= Strliah Drards._.vtsSic braads: ean Mzrlboro, have vir=uellY Sonrces 2IDn Iruher s -42- RJR000140
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KsvpotC-is She _tsavth bransl.,aoens_yvuraer adul?.,alacks,_ 4e= it is not yereeived as particularly reSevaat co their ke7 vaacs~eqnctrss: 'poving up tn tbt .aorld.' style/dress, and po%+erlessness. Effective spendina appears ta 1(are been '<-y to tts suceess, althouSA product miZdne•ss versus Xcol a+ay have played a role. . Xool appears to have risen partl7 trem an eser$in; desire for black idertity, but it is not clear that this want is as proaouactd asong younger adult Blaclr.s' ,. . today. . The SDS showed that younger adnlt Blaeka vere less likely than older llacks to beltere 'SL is iapoetant to ralseaber ay reets." . Althon=h Keoport is prominently advertised in Black publicacions and spends about 16X of its brand dolLrs agaiiist Blacks, 592 of its dollars go to 00x ubich is primaril7 teneral nzrkct: • e In qualitative L+ork, younger adult Blacks feel•d lizited rapport vi=h today's Blaek "leadets", •.g.. Jesso Jaekson. : e Nexicans, Cubins, ard Puerto Ricaas farm three distinct segmenrs vhieh differ in wants. lifestyles, even language. • Y.any Hispasica insist that advertising be in the Sgenish language and that •isual ;e%e.cuqions.be, pqtfectl7 attuntd to Lheir lLestyles. sslf i=ge,•aad traditions. Hispanies sre es=remely literal. e IllesiVsacry aakes e.vea population data difficult to obta,in end cools ,-• - :or•oederstsndias/ts.ekiA; 11a S1,ispi"c urka:.,have been.qulSe pripe-=1le i + ,... • Thus, Coolness strengch among younger adult Blac3cs.may1consinue to decline in the future in.tavor of Stylish brands which key on Black waats but also have appeal in the general aarkec. ; 22ispa»ii ts The Hispaaicmaiket is Wery difficvlt to address because: coepared to general larket eapabilities. . .- etor of the Siapanie population iaS c o d f ~ e v astest =r Xezicaos ate the largest an and also the seetor in vhic.h AJR's perforaanee is strongest_ ~ m m , . ~ Percent of U.S. His7a"ic Population co ~ ~ 1330 - 2000 J 2Sexlcas 61% ---> 64t . luerto 8ican IO 12 CLban. 7 S Oshe* 18 19 V4 0 - Source: C.nc.r for ContitKLn6 StudT of Lhe cilsfosnia Econosy. .R,Rooo141
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}iarlboro is the leading brand aaoag puerto SLicyas••iod Cubaas and tecently appears to hsre incensified its ietforts_a,gainst •ihe: r.ezitan lector. Zn • fatt, Fhiljp Marris appears to be increasing special maz~e= ependifig behind all of its key braads, vith speclal XispaaSc campaigas recently appearing for Marlboro, SiA, aftd Blarers. (See Appcrdix i-.) iGey peints . Blacks/Hispar,ics vill camprise 20Y of all youngcr adult saokers by 1990. ,...Tounger adult 31ack smokers appear to be bigbly•respoasive to effective _"-.d+ertisinr sDerdins. They appear somcvbat morc, likely co be aztracted to a .•; brand vhi.ch keys on their interesrs in 'oo+ria= up' and scyle/dress and can ichieve reasonable developnenc in the younger adult teneral sarkec. ..•.Xoovledgc of the 7otiusSer adult Bispanic market is e~ctrezalr lirSted, , although it is fairly clear that Nesicaas are the key.sectar. Success among 'younger adult liispaaics Ss likely to require deVelopseat of an adsqvate ~ infotaatlon base and estreae' sensitivity to e:eecutiotiai, elements. , ''`-?hilip Morris Itas placed such heavier esphasis on ethnic spending in recent years and evolvedtoa-goiag Ilispanic caapaig+ss for Narlboiv and Eeasoa L , ~Itdaes_ • . ; .~.• .~.. . : 1. •: -64- ; ... ... ~:a..: ...~__...._ _...... RJ R0OO142
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YOWGE,rt ADUL? FE?SA2.E SsC7cER5 •:. . O9pes=ttit7 Aaa27s1s Youaaer adult fs.ale cmokerr have been a•drtvlrtg force be}+Sad iaduscry Zrovth dvrinj the lasC half certurr as tber have beeoo,e aore ltk4=r to amoke •t age 18 and, over cime, sptead Sa Sspertaaca vitbia older age brackecs. ' T Z I2iPOR?AlIGZ A?SONC 18-YELIt-Oi.b SNoICERS 1!a 60_s : . 1970's 198~0-8.3_ Nales • 62 Females 39 Source: 1983 SDS ssokiog anoI=,teerage gtrls, youager adult fe:ules are,•lllesly to coatlave to slovly taia Smporcance, although extes•aal•factors sacA;-as soctal acceptability and price aiY a.fee= the ouclook. stiokers, dtie'zo the3r scroager SacSdence tread eerau3 rouager adult males. 3ased on government repores in recert years expresstar :Iara ae Sacreased 53 • 51 • 47 49 Yomnger adult feaales are'coatiav3 n= to gain Smportaace a=oa= youaaer adulc LKzDENLE sMO1tC ?tlUliGElt ADULIS 1a-2& rcrAL rsuES • FBZSALEs z udDEx z INPEx 1980 - 32.7 33.7 103' 31.7 97 19i1 - 31.7 3~.b- I00 31.8 100 1962 Z9.b 2 H,8 98 30.1 102 1933 29.0 22.8 99 29.3 101 S.urca- ?IDD ?racker ~. .. :U • 1QrY VA?1TSICG2iCE3Ai5" OF FDmLES 18 26- y5: SO'>rSL •Sttcs" lCey difteretices Za•vaists betsieen yeueaez idnlt leoa-2e cmofcers aad` otber snokers were identified ia the 1983 SDS.. - - liew lSalel=eaale Ro•les Stlle/Dress sa•.iags/vah.a TCAhb%'Sa' DeSenginf/Fitting It~ ?fo,rtag Up in vorld Pover2essneps ~ • Soeial Aeceatabtlicy Saokia= Itobleas -~45- N - ."GOi • RJR000143 VS_ TDSAL 18 26 - • He Differene. +ia-tt . •4-++ ~+t ~ ~-Ft • {'+
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Desptce ke:o l ilferanees ia wncs fr.a lrounaea,•sd.riz eales. wvaser adols • ferales cend ca s+.eke .dnal sex~aads ;acl~er ~hia*sveeS-fically tar=ettd fesale brands, e.t., 3~Z saeka !iizlbero versus :12 fai!qiirLaia Sl$as. ... . ~. » . Yirainia SIi:S vas intzodviced in 1908 bet appears to have gaiiaed a7peal as a y,ovnjer aduZc female -firsz arsnd- oely Sn recenc years. .. ...r.r. u.a . . ;,. .. :h1s ray relate to its ;tao;::: caspaign eveluzSoa=fraa heavry aakeup anr] avzat aarde'fashions ca aoze friendly, easval iszgerT. Sh1s transition ray have beea sp.eded b7 sse introdnetton of SI~Lt't Slia Ligbts, vhtch v+~=pesfor ~• all ocher coapecitars in a=sn-aeting swicehers f•sm oirgiaia Sliss. ' vZycly_A sLI2iS SvI?CxlisC ~.'t0HC FEr.AlE SH01MLS 1a-24 k~TG1I2+S ??S. Z twT LoSSES •YTS. Z ~4 45 Bsrclay 16 C,A,'iL . - - -.01 6 9AWT1AGZ - - -.02. 6 36?1 - - -: i13 6 W: Geaeztrs~:• - - -.02 6 ?~arl5or~ +. 26 39 - - ~. 2SezS= +.12 ~ Nevp.rz - •+.05 - . _. - ..g_. , -- Xea c +.03 a , - - Parliamenc +.05 8 - • - All Other +;13 - 20 -.0L 1S +. 6 6 100Z ' -.31 1002 . Sovrce: 1ff0, 1980-n3 C1st Kall7 AWt. 4er 6 • Alzhaugh base s1X-es are small. Chesa is soae irdtcstioa tlsat vlrginIa Slhs younger adnlt core females are ctue Strlish segmnt saokers Ae dealre to mahe a bold .zatt.ene vith thetr brand. ohereas 9irgSata 513es frin=e s>tokers ennsider the brand to be nearZy teo bo2d fer cketr tastes. Its key issgery is, riacural17 enouab, -=od;y's vaaan'. • • . . -d6- ~ ~~ • RIR000144
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9irglaSa $ISss Mealraess may b: that it fits nqt'•anly a particular type of feoale buc a particular stage of life. ?Ae •pr9tbcYpiul yoaager adult female Virginia Sliss saelcer is'like its overall francb3 sa -- she 1s fram a fa=i1t vith income oMer SL% (EDZ +• 160), has sase college educattoa (SDI - 130), ss =ployed as a seeterary/elerk ('DI v 160), aed ir single er aavly, rarziej. The drop in Virginia Slias development aong marriee(ltoraerly aaraed vomen suggescs that VIrgLita Sl'ins ioaehou does not fic"tbe ea=zsed vonan's lifestyle and tlsus, has limited opportunity as a lifetiae'brand. . r VIWINLl SLI?'SS DEVELOp?LI1r ~t« ?OSAS. FE?SALES 1B-26 FS.DSALfS .. Never Narried 213 126 Narzied C 2 Years 182 , 96 Married'2+ Ycar= 77 , 77 Forfleriy Marrsea 77 . [B Total 301 100 100 Share 6_0Z 10.7Z Sourees: 1953 SDS, 1983 Tracker • Host younser adult females sneka a dual .ex brand - not coe r.ascvline (e.g. CNLl`), %me noc scrictly fesale (Virginia Slims). vhile specially targeted fezale braads vill undoubtedly play a role iti the fvture market, litestyle trends sug=est that eaaaonalicirs bet++een your,ger adult maleslfemale:s are increasinA over tSae, so that dual sex vancs aze likaly•;a res+ain prevalent. Yono=er- adult feailes aTe Srcreasinglr s.oriAg •Sero the oorkplace, at a *ore rapid pace than older voaen. ., 1J130R F07CCE FAR2ICZ?A2Z0:1 (2) AGES 20-24 , j. - _19.d0 : 197Q _ . ~ 1:75 . _,' 19a1. • -- - 20-24 F l b6 1 _ 7 ~ D 57 64 1 ~ 69.6 .; ena es . . . , : Index vs. Total - Females 122 127 ' 139 136 7aunge= adult feo,ales have lecose as lSka17 as ailes ta attend College. . Z COLLEGE ENROLLFES 1H-Zi ' 1960 1970 1975 1951 lislec 631 572 332 .. S0Z , Fenales 37 .--.7 43 -.J 47 --;o 50 -i7- ~y^ .... _ oka ~ RI R000145 u 0 ~ N
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. ~.:.: - • Fesialas are tncreasSrglr optins to 're¢aia sirgletduring the3r yomeger adult years and to live aloae. 7. • ; ~ Z WHO HAVE NEVER NARRIED Ages 20-24 1960 1970 • 1975 1981 ?S 1 7 54 alcs 53. . 59.? > 69.5 Fesales 3S.s ,~ 40_3 ~ 51.9 70a7icE3t ADUL? FFKALE5 LI4Ihc ualE 1960 1970, , 1_ 97S 1Sa1 Nnaber (Tt) 110 18? 501 75.2 `.. . .~ Source: Statistlcal Absrraczs. 1982-a3, pages 41 i 64 ! - DothZonaaer adult males and te%sles art nore i%lr1y to say tbey `=ssoeiate Lith the neo Sdeas of sertvemcn-'thin their older eovnterparts. These 'increasins lifesLyl'e eoerstnalltSes satzest tnat fenzles Li11 conciave to be aorevaLtraetjk4 to dual se: besnds vlLZ'cA adequatelr address their vusts chan • . to bi=hly earEeted feflale-only, bbrands. ..r . .,~• , , .•.. 1Cey Points a 7ons,gir adult•fe--ale amokers have greatly inc=eased in i3portanee over the last 20 ye.zrs .and are-lLksly. to• eontinne• to slovly ;ain in imporcance, uzlass ezteraal faetors iatervene. . sd!W; • • YSrtlnia Slis:...at - sai1+!r feaale-oi+IF tis'ands.. ats 1i.7~e].T to bo1d. s t~iche An - the futvre younger adolt feaa2e aathet, i~.c esseerislly dual ssae brsnds- vhieh are atteatlve to.fe=ale •aocs!concsras ase_3.Lke2T to.previds the larger oaportvaity. . • StYlejdress resains a proaoonced interest sao~,yonnSer adnl= females, bnt sLanld be esecvted to ero•ide a clear poiac of ditfezeae+e and not be-'C0o i r. t I-. ~ , ft • Q r r i . . ~.l 4 . N J '- -: RJ ROOO146 ~ ... ..~•..~.. ..
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~ -xovL+c up ZN T~X.i+ou.a~' ~ . y . . M 'Jiav:na ua in the vorld' Ss a key vant zaeaa, all groups o: younger advl*~ saokers and the one vhich so,st discSntuisbes them frno older ssokers in the SDS. This Ss not snrprisia;, given that they•are Za the process of developirg their edvcatlon ard/or career and establishiot their indepeadence (vh=ek requires dollars). Dollars say vell be the key meuvre of svccess to yovnger adult seokers, since the desirc to move up decreases as their incaoes increase. ilue col2ar vorticers (vho are the highest earning 7oanger adults) aze less upvard atriving t1~an averigs. =dvesci.n saties no dif:erence. ~. • ~~ . Yauager adult saokers are eote likely than older to eaphasise the 'image' of success. They like to knov importanc people and feel 'tnere's nothtsss vrong vith shoving you've aade St,- regardless of race or sex. . .. 9 Over the next 10 Years, younger adults' dasire to -ao'ee up' say 1ecv.e aore frustratlra, since the peak of the 3sby avbble ni12 ride jvst ahead of them, closging the ZcadittonaS avenues of sdvaacexnc and scecess. Ihis sngaests that they may-jaove to alternate paths as other -vov:rless' ainorities have done in the past.• : '. e Seme miy coapensate by seekiag to acquire affordable status cymbols, -posaiblyta presciat/elass eigasecte brand. $ovever, a= is aot ensirel7 •clear SAac the younger adult defintcion of 'elass' vill eatirely aesb ,,vich the~ tatus symbols prized bytha older establishojent, since they • seea to prefer designer jeans to concurier originals and l2air/ Srdividvality above elegance. 3iH, the oaly established 'ptesti=e' brand has attractad seae interest aa<eeg yt•uager adiait Elacks/ftspaaics but is vnderdeveloped asea= younger adult s.okers as a vhole. e 4ne option successfully used by eatreprenevrial oiaorities in the past ' Is to seek fa=e •by excrcislag..tpedal ta'-sats. ia the public eys - veaen ' aehieved•vlsible success through the sca=e or sereen (ot by uarriage), 3lackstpqved up through spozts sad wusie. JeK beease fasoas an tha . co.edr etrcvies, -poor boys' free 7.iverpool or Xississippi r.ade it vitH - zroek and roll: - The desire to taoe, the fantasy of 'bei•g diseovered-, aad -star Ln ~ vorsltip' appear to hive beea aosson'aaon= yovager adulcs for generations ~ in varying foims. Today's younger adults oppear to be no exception: m ~ Za qualitative vo=t, vhea yonnger adolt so.ic.rs are asked to na•e =aeir beroes, they tend- to nsse perforsss rather tDan the aporc= figures (e.g.. Jo Disa;gio) or polZcicrl leaders (Joha Xenaedy. ?Sartin* LvtAer lCinj) vho ssr have bad avre artentioa in the p"=- - SAe 'Nevs aaad Veeklis' (Pe e, ttaiieasl EnqQirer, etc. ) vbicls key an pergosmera. ase the sost-reed periodtcals aaoag Tovtsger I idnl= ssolters (See Appendis q). ' _49- .• RJROQQ147
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- 23e Zq serSes -Faae' appeeled to 7:4n6er edults aeed is. retu=ning via syndication. ~. . • , ?iusie is prebably the sost popalar vode ot ,xrfornaace amoaL younger advlt see]cers: • .A speeial esble ftetverk. NN, offers ndthiag buz video renditians af popul•ar yeuasec adalc .ustc. . Yevaaer adulc ssokers in the SDS. were tvSce'as llkely to.activelf participace in wsical actirities (i.e.;:actually play or sing) as ssokers 2,5+ vess. • • Yonnser adults cend to associate Ksr}boro vith the occupation of nusiCtan. Ib1s vas nentioned by 212 of ssoYers ls-2b rating !Saslbero versus 1AZ of all saoksrs, the most pronenated difference four,d `betveen older/youn=er adult responses- I'bis is uausual, since ?i=rlboro`s only formal association vith aasic has beet+ soae-Recent special events -spons.r:hip. This suaaests chate thase Totipter %adult sale Yirlboro users nay be charaetarizltis che•sselves as theT are or* vish• to be. 0 , Although 'fazs ••is a concept rather cLas+ an opportnnicx at present. it nould represent an•_ianovative poit~t of differtnca fraa any pasz/present brand and appears to be relevant ta younger adult vants/incereszs:. ~ ':w ... . .'?Qoviag up•ia the vorld' is a key, endnring osat among yonn6er adult seokers and Ss likely to become of even higher Iaportance as avenues for traditional success are increasiasly blocked by the 3aSy-8sibble. * ' ' .: . Yovn6er adults eerd to taplusize tl+e iaaae eF sucness•rather thae "sel: 1=p. oveaeat'. conastitton. - ~ •A 'izatvs syabol' brand tsay attraet soae younger adult saokers, as an • affoTdable:-eoopenssssoa for otber luxury items, it, it can be executed to key an younger adult detiiaitions of 'class' tAd ac}deve clear difference vessvs e Limited opportnaity to "aeve np' vithia the,establisksaat saT lead younger adults io sora entreprenevrial means of7anccws, such as faae via the perforsing arts, especially ausit_ lhis mesbes with younger advlts' kejr acsivitiee/ieterests and appareatly represents an eadarin; vant applieable ro botA se:es and races. Tnrsetore it sny pr.vide an•irnavative rcv brand/repositionism opportunity, elearlY ditfereac fron eoa?etitien. -so- RJROOO14H
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APPEADICES 1 , ,. . • . . .~ .. . .. . 'Q. At . ~ Ln RJROOO14g
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.• liU!!f7[ZGIZ. S?ftORTANtE OF YOUNCER wDULT SM1¢" • ~ A=e,4= 1' 97S 1980 1981 1982 1923 Z of 2'ocal Pop. ja+ 18.81 18.lZ 18.35 17.9Z 17.52 ' IAcideace of Seokie8 ,r . Soeker Z o! 18 24 Pop. 36_0Z 32.72 31.72 29.4z 29.0Z (p) ; Indes vs. 2otsl 18t 106 99, ; 98 9S 94 (!) Z of Saekers I8T 20.0Z lr.3Z 17.92 16.92 1b.ZX (P) , .; CP) ~ PreSlainary Tracker Daca . • . Sources: IacZdence and 7tate R.eperz, Year 1982, !UVP Tracker, end Ceasa: Bureaa popnlation es=imaces. ' ~. .._ i ~ ~..,.;. , . .. Aces 18-21.tn 1988: HSgA Side c1) . - Lov Side (z) 10 ,. . Z etTTeta1 Pop. 3E+ 14.92 14.9Z .: Iae3Unce of •S=okinA: Index v= Total 18+' • 36 - 87 . . ., . . . , : Z of Seiok.rs-18+ 14.02 13.02 •. (l) High SSde,as;rmaes Yeunraz alalt Sacideaca'talZo•n . tAe=sas~e tread is tke x . '~ total popvlac3en (I8+). .~. . . . . . -- (2) Lov Siae4asvves younSat aduls iacidsrca fal1: aore rsptdly thaa- Meas, ea frost 1973' to 1983. - cotal saeken to the'.eitaZe de=teti se Cn I- I- ~~, , . _ • ..... - • . 00 ~ 0. =7*t 6 Ln Z4 0"I ` IJI O r N . .. m M N M RJ ROOO150
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••rrar.ul.t g .~ . . 1 .as .as .vo. sr eV.nrw s t . .: Hore tAan tvo-tAtrds o! as1e szckere scatt br age 18: Only SZ start after age 24. . . ~•,. f.. - YoUKCEt: AAUL4`?• 2MP4 lC?d1tCt: XS 1tEPlJ1czFFxh-r Sm01QRS ~.;. Cuwlacivs Z Srarc 31 Age Stars After Agc 12 ' 9.9x 9o.lz 13 13.4- '• ' 14 20.8 79.2 13 30.3 69.7 16 'L2.9 . 57.1 • , 17 ~ 46.4 Y.edian•• 16.7 years .. 18 : 31.3 84.0 16.0 . 19-20 s ~~. ~`. 94.6 2S~ 2 T 3.4 1 100.0 - _ U, •.,z:o Soyrces: Average of IiEV daca repo==ed Sn Adalc Use of ?obacco, 1970 and 1975. m .. ~ . =: Alchough vemez of the early 1900'c started to smoke ac later ages Lban aes+. 00 tbere fsas been little difference Sa-reeea= decades. ,, n . _, Yeat of firth 17edian Starriole Aae of FesaZ.,` Sn`kern _ ;9o0-i9lp' 1A:o.years• 1920•s 18.3 • 1930's 17.7 1940's 17.1 .. a • Sovree: RE31, Qhaage!. in Cigeret=e Snotcins llabics, 19SS-46. N • • • . • •wZ.f .. k ..l . • Curreat ?iale Sooicers ZZ Starting Ase RJR000151
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P-"LncM0 SV2TQtIVC LOSSES --r -ACTUAL VS. tREDItTED -- .icro: Avg. 19ao - First Kalf 1993 ;= -- f,• l Ioportance Of Age Avg. Arinual Cress Svi tc}sing I,est •& Are TO Tesx: Ssokers t Pts infte Ycd Pts Of Total X of Total 1a-26 ..17.2z 25-34 25.3 35-=9 27.6 SQ+ 29.4 TOTAL 100:0z Source: KDa ZnsidencclRacs Report, total by iWortince veights above. - 2s Tear 19s2; ?~D NFO Rross s-ttchtrt locses witAi3 age cosf•erted to Predlcted By SDS LoYalsy R.ates RAKLQOtO LOTALTT RRTE ~.~.....•.....a•...*.al. 0• • - .64 39Z 27 17 17 1002 Traeker, Is't Half. , 1983. to=a1 aoa potats of .. .. ~:: .r.amo.ar. • :A.t. •'~Harlbo:o la ~carOlds Afrer -- 0 1 2 . 3 • S 6 - YYs Yrr Yse Yrs Yrs Yss - -- Yrs Avera e . ~ ~ 712 -.~.~ 2 ReamSaias Lo7a1 100Z 76Z 72Z 68Z 65Z 61Z SaZ Stace 712 reoatr loral, 39= tvat svitth ever tl+e .ix years, i.e., m average of 6.32 per year aeeas tl+e, avetage 71% of the os1g1TiA1 atouP rcnaia. 712 m 6.52 - 6.6Z averase aaaual switchiaZ•locs. • Karlbess I Tracker Share Ilaeas 18-24 ' Av=- Isportarce of 19-26 VaI•se Se totnta of Total Sneluars Aversge Jlanuil Svitehirs Loss ' Average 198_ 0-3 Clst HiIf) 3S.3Z 17.2Z 6.15 X r -.2g' ssiats vho .. .. RJR00O 152
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.. . _ rt.,. RJx/P!i SvITCHING VS. SrsoM•SP-M PYRF&MuNCE . . 44 . ~ • .:PoIY[S OF TOTAL S?S07Q:AS 20:? SVITOtIHG SKARL , 1920 1981 1982 1983 (Ist }talf ) R1R ?H '' RJR PN ~...-.. _~ __ ; + .2i +•.65 33.3 29.2 +.27 „-•.2S 32.1 31.0 + .42 + .24 32.8 32.3 +1.00E + .36i 33.0 34.2 •'. ._ AviC. C}iaaae t .41 < Psr 6 Mo. Seusces: nO •aeid ?!flD Stacktr 1.0 , : ! , ..,' n ,. N 0 R J R 000153
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RJR Sales Company 3W C=leRlet! Litle SLason. Fronca 3A212 1R Mc.lianat ~ 0iwsiaa Maaager jl January 10, 1990 TO: SV8?EC': SsSes S,eps Touaa Adult Market V E.0 I"OR?A1PT , PLF1lSE RFJ1D C~tEFOIS.? 1, ~r ! Dear All: , . The following infotmatioa is needed back in this office no later than Jaavary 22. I need alll of you to study the atuched scroll ltst of moathly accounts in yrnsr a4aig=uat that are presently doing mare than 100 CFSt for parposes of deaating stores that are heavily frequented by young adult shoppers. These stores can be in close prazimity to colleges high scbools or areas where there are a large nsmber of young adults frequent the store. The purpose of thi,4 eserr.ise, is to be able to identify those stores during 1990 where we would txy to keep premiim i=rms in stores at all t:!=es. I night add, these stares may ar n:jr not have Preferred Presence units. I reslse that you do not hsve enough tlae between now and January 22nd to visit all s=ores i.a your assigoment, but by nov I vcitld chink you vould have a sood feeling an this subject. Should you absolutely need-aore time to identify any particular convenienc= store, please advise upon receipt of this Iecter. I am asking ycn to return this list high- 1S.;htiag those stores ths= Tcu are classifTing as young adult. Thankin= Ton in advance on this subject. Siaerely, 1 =_::osu:e - "- ---- -1 RJR000030
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- • '`• - k.. 1 _ It.l Rn'bw+ Toeaeco ttg:. W4Avi,-S&ieaL N.C M G: Principal Page nro January 11, 1990 0 . © search for answers. answers to the many tinansvered controversies, •surrouading. smoking. - and the fundamental causes of the diseases often statistically associated with smcking -- we believe can only be determined - through much more scientific research. Our eampany' intends, therefore, to continue to support such research in a continuing We vould ammreciate your passing this information along students. You.may a so be n eres e the enc osed ' publications presenting the position of our company and the tobacco industry on the issue of youth smoking. Sincerely, - - : (Hrs. ) Jo F. Spach ='E ~. Manager, Public Znformation "' Public Relations Department JFS/jmd Enclosures Ln ~ j 0 a, m N OD IPb a, ~ ~ I \ C .seJ ZLYC CLC LtB• 0lvMAVO / J111 / 3921 Nr 6C:V0 •0. •L 1]C
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900503r1.txt at www.gate.net Page 1 of 1 J. P. McMahon Division Manager PERSONAL & CONFIDENTIAL May 3, 1990 TO: All Sales Reps IMPORTANT - PLEASE READ CAREFULLY! Dear Ladies & Gentlemen: In reviewing my files, I have noticed that I sent you a letter dated January 10th of this year, asking you to identify stores located in close proximity to high school and colleges for placement of our premium items. First of all, looking back on this letter, I realize I was wrong in identifying the specific age group of these young adults. It has always been this company's policy that we do not promote or sell our cigarette products to anyone under the age of 21. To clarify this letter of January 10, it was not my intention to recruit or promote smoking with high school or college aged students. I have never asked you to do anything different in gaining sales with this age group, but again I must say I was wrong with my reference to "high school aged" young adults, and I deeply regret and apologize to you for this reference. In talking to most of you over the past three weeks, you have told me that you are not placing any special emphasis in stores located close to schools or colleges or that we are not promoting smoking, or even making consumer offers to anyone under the age of 21. We will continue to work our pack promotions with special emphasis in higher volume C-stores, but we will not place additional emphasis, or additional premium items in any store where there is a large concentration of under 21 aged shoppers. Again, I must add, it is not my intention nor was it ever to persuade young people to smoke. I would again like to apologize to all of you for my mistake. Should there by any questions or uncertainties that you might have regarding this subject, please call me immediately at home or at the office so we can sit down and discuss this further. Thank you for your attention to this matter. Most Sincerely, [ Signature "Jim" ] J. P. McMahon JPM/rc http://www.gate.net/ jcannon/documents/900503r1.txt 4/11/97
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V 9-7 XHIBIT NO.~ E APPLEBAUM R. I a R.J.Reynolds Toba_cco-ComF 1~~1 s • . ~ f aJn Jaauazy 11, 1990 Principal Willow Ridge School 480 Willow Ridge Drive Amherst, HY 1t150 Dear Sir •or Madam: A number of your fifth grade students have vritten R.J. Reynolds Tobacco Company commenting that they do not feel our company should allow the use•of our brand names on ehildren•s toys and ,' candy cigarettes. As information, R.J. Reynolds Tobacco Company0s policy is not to allow our brand names to be used on toys or candy cigarettes and any current use of our brand names in this fashion is not 'sanc- tioned by our company. ~- •--. . . Some of. the students also commented about•the•controversies surrounding cicarette smoking. The tobacco industry considers smoking to be a custom for those adults wbo derive pleasure from.,. it. We believe that whether to smoke or not is a decision that should be freely made by individuals vho have reached the age of mature judgment. Accordingly, our advertising is directed to adult•smokers and not younger people. The tobacco industry is also concerned about the eharq es being made that sriokinq is responsible for so many serious diseases. Lonq before the present criticism began, the tobacco industry, in a sincere attempt to determine vhat harmful effects, if any, ' smoking miqht have on human health, established Tke; •Council for, Tobacco Research--US1~. The industry has also supported research • grants directed by the American Medical Association. Over the years the tobacco industry has given in excess of $162 million to independent research on the controversies surrounding snoking -- more more than all the voluntary health associations eombined. Desnite all the research eeine on. the siaale ~nd nnfortuna fact is a sts do not know the cause or causes of the chron c d s~eases reported to e ass ti• smo ng. The zcac CLC c1e• ., 2599 Ln ~ m m ~ OtrvMAYO / d1d1 / 31131 Nd Bt:fY •6. •t 1:
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1 L6S831 02/ 1Lt/94 V292 990 J Retwn of Organization Exempt From _ Und.r ..etbn vo) ef tl,. Inl..,.d R•..rx. Cod. i.wvic e trYSt or.1r fwA+d.fionl w a.otfon :IUZ(+af1) efh.rf Oq.f.i~ af aY Tw.rY ir...t s..k+ Nokr. Th. •ryni:aoon rn.y Iwm te us" a eopr of tlYS narn to s.asfr ~ 11 / 01 / 92 . 1992, .d •nd.q '1 M!E rAWPC I L FOR TOBACCO RESEARCH-U. S. A., I NC . tAffshor fd MMI lr PA M. .L ..4 r ar MY.+r« « ara Mt.al pRb INEW VORK. NEW VORK 10022 F o.a qm ar .q.,..r, - t,..P r. a.ar. X 601kJ (06 1 G.,rf ua+~ OR -01-n a.esr~ 494)f.X1) eiiritil. tw H W!s fie agrwq ntrr fi.d for aiffia.at .ra: X/lo •1 Ii 'YK' .im b eei.r .f affii.ds for wdidi M'a r..rnb fi•t, ,~ w s.a.aa find bd.cs (as.ch Wl.noar~ ............. . . i _. Part i Sfs6wen.nt oi R•..nir. EacP.nas, and d+.np•s Nn N•t Asa•{s or F.nd O,.la.o.a iut if k r.rair.d a Form 990 hrkagr i+ fio art1. It dwufd fJo a r.arw wM a~t foedd alft 3ani8 at.ti.a r.guh. t Noti. Fsrin 990EZ ew ba w.d ir rynase.a wi* r.es r.o.vts has f+n =100A00 and tw awes i.a M>(250= K Ordc h.ra 00- If tir ar~.~m sras r.o.yu re aarmiy not ..rs M $25 Iq,Q ti. ~...d aet fi. -.i0i Mn RS: W Y rY . rMr .r. wra /11./ .r . rIM1111110. waM h•VMW ~ n Y•f n W 0 C.ntiuess. gfitM r.K:. ae1 a:nWr aM.KS r.c.iv.t • a Oir•et pub& 949o1 ...................... ta b M..ct ~fe siqpart ................ . . . . . . tb _ e Gor.rwont f+m ............. . ........... 1e . d Tolai (ud fna Ltwe# 1d Meo.d+ sr/wbt. - s.. :crvcbaas) ............. 2 PtW.n arr viom r•rra. /tr.m Prt YY- i,w 931 .......................... 3 /A.n+rtfiip du.a .w ssrara.eo b.@ is.uetiaa) ......................... 4 kror•st •n sa:ge a+d urrgsrxy each :.wsnsnes ......................... . . . . . . . . . . . . 6 Oiridwids a+d :nsirat fr.m'uarioa ............. da Ctarar.na ........................... Ea b last r.ntal •zp.rws ....................... 6b e N.t r.nd :ps• c r Iotsl ........................... • • ........ 7 0C,r :wsen.rt :+oenr id..ab. ~ ~ . 1il aK- 7h . ~~. ia.. :nvue"s) . . . . . . . . . . . . . . . . . . . Irln.qwr.ns •+d "wd ifr.n 44. e.iam Q) ls« sstrueooral . ... ... Fsn6•aisinq Itrem 1:.. 44. nli.rn 09 fs.m iuvuceern) ...................... PeyrtrrKS m affiliaaes (ittdi adrAt. - a« isttrsttiau) . . . . . . . . . . . . . . . Total .xp.rw: {.dd Fna 16 ard 44, oolnn (A8 - Esoas r id.feid for N. y.r /nbtret I:w 17 from In. 1Z ................. - Nrt awet r fwd bdowas at Mqimiry of y.r (f ram l.r 74. oeknn W) ....-......- 7 15 1a 17 18 1t1 20 ~~ ~1 1.U :1 •f.i X 25,628.848 37.078 19,4.86, 185 6.004,783 25,490,968 174,958 566,038. rd ef y.ar iasrtd:r tins 1!. 19. ad 20) 21 740.996. ta. pap. 1 of 1h. s.Parab. 4ntruetforsi form M (1992) Qb 13-2671498 • sw ..o•t...e a..wr D t if adk.et dwyed, welc box G H •xangem qpIie.d.a drdc faex . . 1 H do.r box ia N i dndr.d -Y•c' an1.r f.mr-,rqt • mmui.r W0 • J AmweMiy sht n O..r 14.df,!
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THE COUNCIL FOR TOBACCO RESEARCH U S A INC - • fer~+ 990 (199D - • Pri 11 ~ement of ' Fte7ctiottal nses Do rot i+elui. ~nana r.par~.d an lino , 1!, !b, 10p, er 16 .t P~t L 6p , seN.dul.) , 22 Ci.res .d .Ike.oona (.etadh 24 s.r.t wl 23 s..e,a ~+r.u N wa~rr m.e w..r.1 ti« r. ..r.+ /aw s.w.l 25 cw+y.rsaien oi .ttio.rs, 1ir.eoors, aa Qerr sr.ri.: .d «ryas . . . . . . . 26 27 Pwsion rIn oa+riiudw~s , , , , , , , 28 Odnr .rqkr.. ~«+.tm , , , , , , , , e.r.rt , , , , , , , , selndul.l 41 Mn 42 O.qrfe~.tion iplaon, ot~ (.etarJh 43 Otlw .zq.ns .: 4trnc.k . STMT 1 b e d .' f 44 T.u, ~«cu«d .q..... LU u.. 32 rr..o. q ~.~r'«~.`~i~r`~ `"r ~ `' ~ A~.oorlinp of .loint Costs - Oid you nport m ooMnn 6) Pror.m ..rvie.~ ony jo'vrt esa inm o omnb:~.d .ducation.l vrp.ig~ ~+d tin~ris:g solid~oml . . . . . . . . . . . . . . . . • . . . . . . . . . . . . ~ ~ Yes 0 1yo ,r ~Tes, .nar W to .ggre,~.b .rarrt or prrt eoas b : OD s!w .mvR otbc.tsd w pre~.n s.nicu S OID aio anasrt rbr,.u d.ud to mn.g.rn.rtc .nd P«w.l S :.+d liv) sh. sneun dloc.ed to fintroiting S Part III Sbrtemertt of Progam Servio. Accotnplishmenrs (See irsstructiona ) Orsaas w~Mt wa .el~i...d 'en erry'vq otrt th. «yiriQaeoti t.:empt prpms, Fvl,y rrsaib. ww twvion prsvid.d: ti+o tra~r of P.rsac l.n.tioed: or e4w r.l...rt atorn .oa~ fr wdi Prora~n titlL S.cpon r~p1ir~ aid 44) oryaasom+s w+d soeoon 4947W(11 ei~rit~l. hsts miat rso ont.r to arant o/ ~.~a .d dbcioara to atlnrz • 2 w TK., 1 A, 486 , 185 • al h.«.F ...~. 19,486.185. w ~ r.q~ s~,,,~r s e m O) f.t~M 23 24 25 555.633. 555.633. 25 545.516. 545.516. 2: 1 129.528. 1 129 , 528 . 28 269.680. 269.680. 29 P.~sll auca .............. 29 30 Prtf.aimW tumtrsip fees ....., 30 62 , 478 . 62.478. . !1 ~q fea ...... ..... 31 !2 L.g/ fw ......... . ..... 32 !3 fupplia ................ 23 6 A27 • 6.827. T.wphoir ,,,,,,,,,,. s4 14•902. 14.902. Pa.d~:q ,,,,,,,,,. s5 12.483. 12.483. se Ooa4.rc7r ............... se 319.833. 319.833. bpipn.rt rwrod .+d n~:na~na ... 27 8 Pr:~6np .+d ~lir~ ........ ?8 129.433. 129.433. 9 Tr«d ................. s9 a c.nf.w.r~. ~,d.. .+~+..p ,40 41 42 4. 3. 958 , 4 43 ~c+I 430 ~f 44 25 , 490 . 968 . 19 , 486 , 185 • 6,004.783. s A DA H D RESE~i H 8~ Gares .,d d,oe.oorts S 0 13-2671498 P 2 AI/ orqnc.6ons eaat e.eplaw eoat.fn w•CoYsnu QJ, iq, .d 0) are r.Quir.d ta• s.eeen QDiiell3) j+d`"it) wWrizatiorn .,e 49t7Wf1) ehritabfi ousa but a,r fa- eat.rs. LS.. :nnv lro / 19,4 6,18 .1 G.m .,d r,orsoors $ Gr.,tt .,d d,ouoorts s i 1/ ta~«w «w /v .o.tt.h. «i 4M7/rq/ t.ow "tb.d Ia .d.0 19,486, 185. ~UEtf/TER ':'Y =SS '•-F'Y G.rRS .d albceooru 1 o Other a_ o4rwn s.rrica kttdh sdwdul.) • . G.rts w+d dloc.omss S 1 f Total Ldd Ina a Ihrouffi •) itlroJd s4.d Im. 44, oolum fl/) ~ 19 .486 . T$137- inu Uitzo t.ooo
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THE COUNCIL FOR TObACCO RESEARCH-U.S.A.. INC. 13-2671498 Fenn 990 (199A Paa 3 Ps>t•t IV .' Sshsrw. Shsts - i~-- No11« VMi.n rsfuFsd, atsdwd tef+sdAs aid amourts witAn Mw ownn sdwld 6e for adrof-y.r .naess onFy. Asa.ts 46 CsA - nanine.rost-OornD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 S.rsfc and rmporrp asfi :wsanonss , . . , . , . , , , . , , . . , . . , . . . . 47a Aoomsets roosivebl. ..................... 47a 13,566,503 48a IiNO.s roo.ivalsl. ................ . . . . 488 b Lut dYwnem tx daltfsl amants ....... . 48b 49 Crses roowetil. ................................... 60 N.o~ww8ls M fr.m .fiiars. inolorsi t+sl.os. atd k.y ompio)Ms 4et.eh tahssllM) ............... . . . . 1 . . . . . ..... 61. 0!w sws .+d h.a t.owi+. Ltt.rAsofi.iisl• .... 61a b Lst slMMSSm fsr Mbefd amwna . ... , ...... btb 62 IIpMam fltl fR ssl• f W ............................... 0 Esd of y.ar 154,411 1,151,573 230 .982.Is31 238.433 W h.p:d o:pom .d bf.rrub ' ' ' ~ HA~1 d $~R~~E CF(('~' ~ ~ ~ - ~ `I~, .~ ,,.,t'P~rn'a ~4~Y . .~8: +eds ................. DO.NO?.PR $ 00;'. ,'''~E CENTER b ~ ~"~ +'~m"°°W'PUBLIC INSPE CO?Y - - . .•. W_ ~+~'~ ecfis~l.) . . .......... ..• • 66 A pfj m oh.r Mmai ++ ssdh.&A.I ........... . ......... . - ys ~ ; • • b7. s7: ta+a. w16nW, sa .qiqrsrret +asis ........ . . L 1• ., , ,_y b ls+s .ma.r.be bQr.ei.em+ rretadh srAoad.) ..... l57b ~~ P Y 68 0lwr mss (d.ov6 . 110. 69 ' Total asa.ts Ldd fns 4S tiv.uffi SE)_it.at .au.1 1:,0_75) ....... . .. . . . . .. 1 15, 695 ,271 .1Sl1 15 , 110, 920 Uabiki.s 60 Aocwra W" .+e .e-.d aprs.s ......................... 328. 106. 60 301.542. 61 Ctarss poy.bb ...................................... 14.590.803. 61 13 . 843 . 619 . 62 S~qpat and rw#wnw hsira.d for fvaro prisda (ons~ sd+.QL) ........... 62 63 le.a fram offe.rs, ir.c4rs. stiat.s. ard toy .rtpley.a {.R.:h sdodul.) ,,,,, 63 64 IiAartpQs .d @tlnr roas y.ybi. (atod+ ............... , 64 65 OO,r "iGos idwsrio • SEE STATEMENT 210.324. 65 224,863. 66 Total ILbAkis (add i:.n 60 65) . 15 . 129 . 233 . s_6 14 , 369 , 924 . Frred 8alaroes oir fi.t Assrts Orpngs+tiors tlwt ww ffir+d soowa.tksp, el+.d- h.es ~ 0 e+d oompia. I flrrs 67 tlre* 70 .d I:.rs 74 and 75 4.o eareMonal 67a Gn.t urs- ics.d find ............. . ................ . I .. 560,152.b74 b Grr.rtiresvict.d fud ... ............................ 735 , 110 . 68 L.+d. k.wnqs, .d o¢iqrwrt hM ........................... 1 1681 - 69 EndevR+rnt fwd .................. , . ................ 70 0br Nds id.wibo 01- SEE STATEMENT 3 )j 5, 886 . 1701 _ 5.886 orpu+ls.4las tl+tt do swt w h.+d aoea+stnp. eh.ek her. ~ and sasqlaa l:ws 71 utt.* 75 It« :eeaueeoexl 71 Csyiul saodc or tr0t }r*c9d ............................. 72 P:d-n r cqitd ssipkss ............................... 73 Nssin.d orr:+gs r esurdard norro ..... . . . . . ........ 74 Tod fird ld++as or nrt asseCt (.dd iirtis 67. ftto. . u~ 10 OR ins•11 ervuo 73: celusrn W mat .q<d fn. 19 .,d mism 6) easl .qur 1a,.21) -- --------------- ---------------- 1 566,038 .1741 740.996. 75 Total liabnkloa and furtd balar+os/"st aes.ts Ldd k+es 66 .+d 74) .......1 15 . 695 . 271 .1761 15,110,920. Form 990 's .r:l.bls for pAilie ssp.eoon .d, fr somo poop+o. s.rr.s a Ow pimry r sslo swres of nhrnmoon a5w a pa0ulr ry.auorL Ibw 1ho p61ic rrs+.iws in rpniz.oan in oich aass mry `o d.brtnir.d by rw nfrm.eon pres.rtosd an ib rowrn Tlwofr., Plso miko ssr. tw r.ern s oemql.es .d .corm .+d ldly davibos yor ryriadon't proQarns nd oezoeplsfirtwtts Onu Ziox ,.ooo
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naa r.o.w+ 'et niers M 100 ir.m Osd i*ry effwsr, irecbr. tnstw, r tef en4bl•e +RTM~ o~~' i .000 ywr rpsi:atin .d ell r+elw.d .r}.aaBmst, of ..tiid~ ror. fhn =10A00 wss'rsva.d y fw r.i.rd ery.mtias7 • a Ys ® No If 'Yes.- st1.d~ ed~.,i. kee isyutiansl Part VI Otlrer M l• i.Y: i.dn Nt1d41 atw1aM/e.. W.ul/.. setl(.X1) .r..Y rt M.. t..~IM. W.asa ieMr.l. a i..o eeq. 76 Did tr er8naaoan en0.qe i1 .1y eetl.lq set praindy r.prt.d b 1ho iws R . ..1wr ...1w Srviwl ............ tf 'Yes' emcfi a Moaed dsaiPo.+ ef ee~ acti.isy. 77 Wre ary rh.qs nwM in IU. rF.rarq r*err..q bamsa. lut r.t r.qrtd te >Yw RS1 ............. If 'Y.a, emsd~ a eenfrerd oapy ef fly drqRc 78a Oid fn r,rrsesen An. ~...laua Ms~ ~Ss ^oa^n Nd R f~ `r^~~~ ~~e1 b ft ~' As it fi.d a suc r.arn en Fa+ QlaO-T, Eteept ~~ me99MME t y..1 ' t oeryonso.n .'~. o At fmw driq flsw y..r. id ti+e rpncs6on wrn~ a i01L r Fsrr .r prtnersd~ql 78e If Ya: Parc uL DO NOT PROCESS . • : 79 Ws !~w a Iiq~:d.tierl dKtskioon. 1enr:n.oor4 r nist•+er~~IITV-~.-p•••••.79 N~es: atarfi a sit.wtnrrt a da+aa.d b ~Iw savcsnc Sa is fNw rq.~isatien reir.d (otlrr M y eoodaeion .il+ a aow.wids r sie6.wride upncaom>1 thraqA css~non ern+aeral. prrnap ~odies, tuce.a, effioers. eec.- ee ery .Nr e:anpt r aaer-u.rrpt roni:atimn7. tS.. :+stvctim~ b* 1f 1les: ener Mw arrn..ef th. .rts:.eon • ard d~.dc wN.lnr k's u.m/rt OR s~an+:.nyt 81a Ert.r sfaourt of Pelioed .:q.ndiarss. A~.ct r:drscL a rsci.C in IPr estrceanc 18181 b 0~ Uw rync.oon fil. Fom + 1120-POL, iLi y +esnr Tax /1..rn f. Groi+ Pdilid Q4ri:aoora, for ~ 7.r7 ,• 82s Oid 1hw arpnis.don no.ir. fatiesA s;rvio.s r tr s.. •f rnr.ri~t. .Q.pns. r f.olioes .t we ehrqw x .t n6sanoally i.a tl~rM fa's rsntd .r dks7 ....................................... b If -Yes; you mry idicab tho vd~w ef >frss i..+s•Ara a wet iicisY *s ~s.rt as r.y .ew in P~t I r a r es;pss. ~ Prt 1L S.. :~tseo~.~e fr r.prte~ n P.rt 0 •• 182b) N/ A 8Sa OGd s+ya+s reQuast to ss. .itlnr f+o rpr+aa~mi s..ar narn r•s.nOO.n appGc.cimn ior b~oQs'1 ............ b H -Yes: dd 1w .ry~r:z.oon wrtpy ac Mad.d 'n b istrcmu7 CS.. Gr+asi bsosction U ............ 84a Oid fls erVnis.bon sdieit any oone~s3uoa~s r *fss hc w.rs ret sa: 4A~eo1+.7 ................... b*Tt 1'es: ia thw rgacsaon :rid. witi ...rY s.leen .+ a;r+ss ss.ertirtt rtet aslt asnti.reons or Fihc w.re not La d.euctiN.7 [S.e G«rrsl M+atvcmn bt) ..... 8 R.Q Q,~(. WA/E~ j•S E F 1F; f• -• 85a S.c~ 50NcN5) r !~) rfniaoen:_ - Did ein erpni:aoen tp«d .+p .+su+es e .o.mpts ~ ~ epinion eleut leq'sLO.v m.ews r r.f.r.rdnsl ~See i stueean .+d s fb¢d.aors b If ~a- ene.r e» .~sr .nanc spu,c f. .,e psve t+ ............... DP~t! .'r>~I PRCN/A" Ss s.ooQ, So)kx» rancao«Ic - f~+~ fPUBLIC ( SPECT' -' ' a I,i6.eon f.s .~e c.pior es+e~itiuaara sck+eee en 1:. 12 .................. 88a N f A b Crns r.e.q ts. :nelid.d w+ i:+e 12. fa pbl:c w ef db idios 6.e sas¢os) BfSb c Oo.s th. d~'s 4s..ro:g instrurrnt r eey aria.+ ptiey sorurn.nt ~r.mds fer isaeniwoen .garsst ttrp prsan b.casm of ra, celor, r reli4ionl Of -Y.L' at=f~ nnn.mt S.. stxoarts) ................. 87 S.ctian 501kX12) ersmis+oans. -£ne.r er+w+rt ef: a Gnss :eanm r.o.iv.d frem m.rr s~wl or sM.Aeldrs ............ . . . . . . . 87a N / A b Csss :~corer r.e.ir.d fran etlw sovaec Oo eet n.t er.~.a IuA r p1 st ee+.r saroes .g:rst eno~srts b,w or r.o.iv.d lram tl~st~) ...................... 87b N / A 88 PbIic int.rat Lw f:mi - Atsadi i~fxm.oon dawa.d '.n !+. .urticoac - 89 List tr,o srae.s ..itl+ whieA a emqy ef 1fis r.arn a t~l.d • 81b 82a 80 Dunq Qiis tax ~ did Qn or;ncicon msina.n er7 yrt •f iss ~oe~rttnp/ou r.eords m a comput.r¢.d sYswnl . . . 00 91 TAe books ar. :+ rrs ef • JAMES F. GLENN. MD Te+.q+,aM rso,•212-421-888 Loc,,a,e a• 900 TH I R 2JP cod, • 92 S.~~ivn 4947Wf1) diritaf~lW tsass fd:g Form 490 in 1nu .f Form 1041, l1S Fiduoiff7 k+c~m. Tax A.esR, sfiou5d efi.ek A.r. ~ ~ a,d .nw 1h. ~narK of sax •sempt ntwast r.o.i..d r.ocswd drirq t!w sax pw. ...~ I 22 I THE COUNCIL FOR TOBACCO RESEARCH-U.S.A L.lst of. Offioers, Dineetors, Trvsb.s, and K.y . INC. 13-2671498 Esnplor.ies List s.~ aw .v.n if not eernpens.ted S.e i~s'avcvmsc.) P.,. 4 -W Mswd W Mfs -~,., pl aN .~I ....p Mr wi N a W K) ~~ qs-..t NiF- .a.r -fr-1 - •1 4.rissb. N..~Lr.r N.de m.r O/ .u.r Nb..c.r N 555.633. iou 211040 Looo
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- .... . - ....~ v-.v• .. v . - V . JL •LJL THE COUNCIL FOR TOBACCO RESEARCH-U.S.A:, INC. 'Frs NO (IN2/ wf. Andpsis of N+eam-P*odutin0 Aetl.tti.s 100 w. r0.ra..Wr./r.~errr : +rae. Mom sp.dr fu+drais:q .~L/+es 101 N.t . , 102 s..m sr.rr r e..r r.. .r. .r r ..vr r.w.w: W 103 Oe~.r w k1 W (a) 104 Sb s:d Ldd aNre.a e). id). .d f.)/ . 13-2671498 Pw• b ~~ ~ e~~e Um.ire~ Mainss i+orns Esclud+d by s.~~ian 512. 513, « 514 V) ~rrn tervicti twrue: W b) . M~ourR k! fxdusfon ood. (~ Mnvrt Rl1.rsd «, ex.mpc ~r+rban .~eonr it.. insstue0ast) n~.rsAip ius .,e .o.am.~ , 25. 628. 848 . „t „,w1.~ .r ,.~,rp ti1 14 a7.078. .[bor: :• . . :?: s:: j :::€::::;'s::: a irbt -tos dd /rpr~' . . . . . l ast r.et-to.wd MeP~1 . . . ~• r pi) ~- M•w ~+r~ u :w.:.n.ni iKan. . . . . . . . 6-0107 ' . 37 . 078 . 25,628.848. 105 TOTAL (.dd 1:u 101, oslun*u e). id. .d 1.)I .......................... .... 110- 25.665.926. Not:: lim ios oius G» 1e. Prt I. sfiaie .wr .,. .nartt en 6,. 12. Part u Urw No. V £acpl:n law we:h aee.ity for whieh :+certr is repare.d in eeMnn (.) of Part YU osrteiludE aportrzdy to tho acoortqlahmrR of 11M R9fIQfOr1 s•irTqt /tI90io= bchK IIIr1 by pvVk%19 fM1b fer sYCll imspOsti1, (See fSiCUC90Ri) 94 ADMiNISTRATION OF OVERALL ACTIVITIES Tc r'd ~ Par't IX /nformstion ii.pordinp Taxabl. Nnw, aitrest. rM empl.y.r idwfdficaoen ea na.r na.r of er P . ol ~9swrrr rrirast Nrare of ksiness acdviia To2+1 :.weM End-ef-ps.r e<sas Please ~~ ts"w fumum ~r/rY. 1•.u.• ur a..~ m•aw er Ioa bchuq .a.....H.f .o..r/. ~. a.M 1• rw ~.u d.r l~.Wp .d MI11, r Y a.•. on.q .d swNaa sasval" d1r•r•. (4Mr em dlk•A Y ~.d w N1 M..al~ 1.YO pqar 60 •w 'A-ww _ t, CHAIRMAN & PRESZDrD11' , xel, (, (, , q , • I• rl. Paid Nq.r1 ' ~ ' cc ' ~ -- ~c r. z(Iy .a r „r. ..rl.rd ~ Pre~arers Uae A11y f Y.'• r.• /r r"' r "r-•".1'1"r '1 ~ «t - p^ /~' (: ~ A , :~.. 1~ cw l Part VIII Adalionshi of As•ti.itis to th. isMwnt of Subslo4aries (Co.npl.b this a bax on 78e, is cn m m ~ rou ~loso /.ooo
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L6f3g31 U2/ lti/a4 V'ltiY THE COUNCIL FOR TOBACCO RESEARCH-U.S.A.. INC. i 13-2671498 . STATEMENT I FORM 990. PART 11 - OTHER EXPENSES ea::aa~aassaax sasaa:asa~~ases~s~~asa:~~saas~sa ~as'nat:~~s~~ DESCRIPTION TOTAL MANAGEMENT AND GENERAL I PROFESSIONAL FEES 3.035.348. 3.035.348. RESEARCH & ANALYS I S 95.302. 95.302. PUBLIC RELATIONS 127.052. 127,052. BANK SERVICE CHARGES 17,914. 17.914. EXPENSES: OFFICERS. SCIENTIFIC DIRECTOR & ASSISTANTS 129.870. 129,870. T PROVISION FOR DEFERRED COMPENSATION 45.803. 45,803. PER DIEM ALLOWANCES & EXPENSES RE: SCIENTIFIC ADVISORY BOARD 506,185. 506 185 MISCELLANEOUS EXPENSE 998. . . 998 I . . ------------ TOTALS 3,958,470. 3,958 470. ~....~~~_..,...~ , I 69fii8 Z09TS STATEMENT 1 I
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L6$831 2532 02/18/94 08:56:32 V292 THE COUNCIL.FOR TOBACCO RESEARCH-U.S.A.. 'INC., - f&-.,. 13-2671498 STATEMENT 2 FORM 990, PART IV - OTHER LIABILITIES DESCRIPTION BEGINNING OF YEAR ------- END OF YEAR ------- DEFERRED COhPENSATION PAYABLE 210,324. 224,863. ------------ ------------ TOTAL 210,324. 224.863. SR&OKOIE V~N•~ERYIi:A TER ~HOTO coPY - '' P bNoT'P§ocEss PUBLIC ~INSPEG~C;i•;' STATEMENT 2 srz.,rt-i 3,000
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THE COUNCIL FOR TOBACCO RESEARCH-U.S.A.. INC. 13-2671498 STATEMENT 3 fft... FORM 990. PART IV - OTHER FUNDS DESCRIPTION SPECIAL PROJECTS FUND BEGINNING OF YEAR 5.886. END OF YEAR 5.886. ------------ TOTAL 6.686. s.s86. fiR 0 0 ~~r: ,; .~. "CE CFNTER PULq: , ~ ~'-ESS COpY s.vmr-i iooo 00 STATEMENT 3 ~ r
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11/: COWCII fOR 10[11CC0 RESEARCH-U.S.A., INC. 13-2611/!1 STATEYEIVT 4 . lOTY 990• PART V - LIST OF OFFICERS. DIRECIORS. A1Rl 11i1STEES ______________•___-____-__-_______-___•____--______--__________-s_-__--_______-___--___--_______-_ -_--_______-_---.-.-............._.._.._...........-_._...-_•---•__-- ~ CONTRIBUTIONS TO EIO'ET/SE ACCOWt 1111E1 E1pl0YEE 8HlEFIT AND O1HER wWE AND ADDRESS TIYE DEVOTED COUPENSATION PE/111f ALICRANCES _----•________________________________________•-______----______-___-__-____-___-•_______--___-_- ____------____---_•-_..-....._............-............__•--------__-- JA11ES F. GlEN1 Cl6iUH/l•AE 250.000. 90.634. IIpNE 900 iHIRD AVENUE NEW YO/iC, NEI YOFY, 10022 FULL WVa10'1 YCALlIS1ER VP: RESEAR 111•13]. ~3.O11. NWE 900 THIRD AVEMIE NEW YOAC, NEI YOFU 10022 FULL IOFlRAINE P0.lICE SEC-TREAS 61,161. 2/•341. NONE 900 TNIRD AVENUE NEr YORC, NEW YOIK 10022 FULL AREHIR EISE)l1E/O 900 iHIRD AVENUE NEl YdK, NEf YO/K 10022 ASSt SECY FULL NONE ROBERT 0'KEEFE 900 THIRO AVENUE NEW YOfic, NE1 YOI1C 10022 ASST TRES FULL 3s.100. 12.977. MNE t17 :0 TOTAL CUrPEHSATia -d ® sss.63]. c O ~ ............ Q 0 .n F s ZLVB Z09iS stATElIEHt 4
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. E10 t .0 3 54 heOWMiM Organization Exempt From'bcoff Under section 501(t) lexcept black lung benefit trust or private foull-41 •4 ••• 1i••serr _ of the IqteqpA) Revenue Code or section 4947LH1) trust .r..l A.e.... s.r.uc 'jlyote:~You nurir be required to ust a copy of tftis -return to satisfy state rtport:ng rtouirememw r the calendar ear 1966. or fKCal eer be innin Neme of organization so 2 11-01 1988 901'~ 15 ,°3 S }{E COUNCIL FOR TOBACCO RESEARCH-U S A +bet' Addre r and stret tAer- •ise, lease 'int ' typ ( 6 ) (insert numrter). OR (s ecif ) •, is tAis aOreup return (see instructien J) filed for affiliates7 ,, Yes X No If 'Yes: enter the nuMer ef effilietes for which this return is filed ~ Is this a separate return filed by e,reuP affiliate? . Yts 1 J~ I No end endin9 ! \ / 10-31 19 89 AErnployer atUon number te mstrucuon I NC.I 13-2671498 B State registration number (see instruction 0) ~ Check here if yein Cress recetpts,art nermdty not nore tAsn 525,000 lsee insvuction B111. You do not fwe to file a c.npkted return with IRS bvt should file a return .itAart financial daaa if yeu were msiled a ferrn 990 Package lsee iesvtrnion A). Some ststes a" require a eoapleted return. ~--~ Check here if gross r.4eiPts sre normally more ttrn 525.000 and line 12 is S2S.000 or less. f.molete Perts I (except lines 13-15). Itl. IV. V1L and VII end LJ only tAe indicated itenu m Parts II and V (see instruction 0. If line 12 is rore ri+en 525.000, cemplete tUe en:* : return. 1(.)p) •rte.laetle.. •.1 te47bK1) vtu ...t .la. ...ol.u s.1 .r Paperwork Reduction Act Notice, see page 1 of the instructions. Form 990 ('92:
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_102(` 35413 03/18/90 ' m 99o (1M (A) Taul _3rt I I Statement of All orqanitations must complete column (rU. Columns (B). lC), and (0) are reauued for most sect.ons functional FXpanseE 50~M) and (0l(4) orpani:ationsr and' d9t7t>D('U trusts but optional for others. (See instruct/ons.) - Do not include amounts reported on lines 60. !b. 9b. 10b. or 16 of Part L 22 Grants and allocations (attacA schedule) , , , , , , , 23 Specific assistance to individuals , , , , , , , , , 24 Benefits paid to or for members ,,, ,,,, 25 Compensation of o/ficers. directors, etc. ,,,, 26 Other salaries and wages , , , , , , , , , , , 27 Pension plan contributions , , , , , , , , , , , 28 Other employee benefits , , , , , , , , , , , 29 30 31 32 33 34 35 restae .nd snlppi ~$UC'1NSPECTION se 0cu+v.ncr . . . . . . . . . . . . . 37 E~uipment rental ond nrintenance 38 Printirp and publications 39 Trevel 40 Conferences. conventions. and meetinqs 41 Interest , , , , , , , , , , , , , , , , , , , 42 Oepreciation. depletion, etc. Wach schedule) ,,,, 43 Other e:penses (isemiteFY a ------------- b-_-S-E-E STATEMENT---- 3 ------ c -------------------------- d e f Peyrolltaxes ,,, ,,,,,,,,,,,, Prefessiend fundraising fees , , , , , , , , , Actarninp lees Lev., fees BROOKHAVEtV . S~ER~7CC SYoplies , . . . . . . . .PHOTO COPY. Teap+,«1e . . . . . . . 00 iVC3T PROCES -------------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 44 T.td L.cfl...1 •.p.... 1Nr N..1 22 W..N 4]1 Or9.aitall..s 1 c.o,a/,U.y CN.ft.1 e-0, Nny MM NIdC ta /1N1 13-,i.l 17, srt III Statement of_Program Services Render.d 31,684. 872,767, 7.400 13,574. 13.04 2, 369.898. 400,402. 96,746. 415.331. I 113,843,611, 3, 504,237, List each program service title on lines a ttrwqh 4 for eaett, id.ntify the service eutpotit) or preduct(sl. and rport t+lte «wntity provided. fnter the total expenses attrlDrrtable to each propram service ard the omount of 9rarrts arid aJlowtions included in tft.t total. (See insvuctiens for P.rt 111.) _AUTHORIIED-RE~EARCH ~ CONTitACT5 _______________ ----------------- -------------------------------------------------------------- --------------------------------------------------------- --------------------------------------------tGr.ntsandalloca2it31 a09 352 1 =AUTHORIZED=SPECIAL=PROJfCT5 ====--=-=---=-==-=====-=------------I ------------.---------------------------------------------------~ ---------------------------------------------------------------~ (Grants and allocations S 34 .259.) ' --------------------------------------------------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ------- - -- ----------------------------------IGrantf urd alloCationS 5-------) I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (Grants and allocatlons S 1 Other proqram service acuvities (attach schedulel . . .... . . . . . . . . . . . . . . (Grants and allocations S 1 O) Prqr.. I (U M..s....c Mrt/Cts aad *..Ir.t 13,809,352.113,809,352. 34,259, 34,259, Pa9e 2 fe! /a.4r.i.i.t 61 311 311,561, 619, 619 801 1215 246 121,246 179 9TT 179,977. 50 808 50 806 31,684, .767. s 7,400, 13.574. 369.898~ 13 042 96,746, 400,402. 415,331. 347,848~ E a,.a.s elNiwl l.r .r ..p.ir.u.a - w l.wat..d Z3,809,352, 34,259. Total (add lines a throu h e) lshould eaual line 44. columrn le)/ 13 843 611
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_lUjO j:)41j U3/ll3/`IU a 2" ussil srt• IV Prograrn•_Ser.vice Revenue and Other Revenue (State nature_) fees from 4overnment eqencies . . . . . . . , . . . . . . . . . , . , , , , , , , , , , , , , , REYERSAL-OF-RETIREMENT-BENEFITS ACCRUAL-------------- ---------------------------------------------------- i- --------------------------------------------------- --------------------------------------------------- Pr.r.. tlr~Itf ff~.N. r.~. 3 w..r 121.893, Total program service revenue (enter here and on line 2) , , , , , , , , , , , Total other revenue (enter here and en line 11) 121 . 8 9 3. srt V Baience Sheets If line 12 or Column ffi) of line 59 is more than S25.000. complete the entire balance sheet If line 12. Prt 1. and Column (8) of line 59 re $25.000 or less. you may comphte only lines 59. 66. 74. and 75. See instructions stc Columns fC0 and !D) .re optional. Columns W .nd !$1 rrwit be eenpleted to the extent pplicable. Where (A) lipi..i., E.~ .r r.M reouired. attached schedules should be tor sM-el-yer Mf1011nt en) . of r~ nl i.u/ (C) Y.rfarlclfd/ EqfNfN. t0) O.MrItHIr MN.tNaNlc Ass.ts Lan - non-interest bsrinp , , , , , , , , , , . , 403, 951, 181, 584, sehtqs .nd tenyorry eash in.esoeerrts ~ 1 ,091, 583 671, 600, 9 34 ACCOMSS receil/.ble • 12 45 5 a a e ae a+l..«te t«....a.+ att..M. • 10 ,332, 476, 12, 455, 934. Pledges recei..ble • alif.ft .11NMMtt tM Nflaidal attNau • taratsreuivable ,,,,,,,,,,,,,,,,, i3R OKHAVENSE VICE ENTER Recei.aales due from efficers. directors. trustees. and key employees (+rtnd+ schedule) , , , , , , , , . , , PHOTO OPY Other notes ond loans receivable • fa1N1 .IL.Mtf /M 4.N/lfl KtNai • 1 I~l.~r iM~pE ION COPY lmrenteries for sale or use , , , , , , , , , , , , , Prepsid e:pelses and deferred charges ,,,,,,, 1, 646, 1 646' 1n.tstrnents - securities (mrch schedule) , , , , , , 1...MNM7-IM4. a.1141.,r, .N 1Nla..ataatlf• ./N1 Kt.ssoIM.d M.LCIMiM • {MrKt MNMI. IfNestrnents - ettler llft/Grh schedule) . . . . . . . . L.nd. fwildin¢s. and eauipment: eais • ..1aat .cc...IM.r r.rr.clriN • bnw tcM1f1. ' Other asets • EE STATEMENT 4 1, 525, 1, 525, Total tsseu (add lines 45 throuh 58) 11 .831. 181. 13, 312, 289, Liabilities Accourtts peyeble and accrued expenses ,,,,,,, 183, 175, 117, 659, Granup.y.ble ,,,,,,,,,,,,,,,,,, 10 ,692, 409, 11, 211, 712. Suppor,.nd revenue designated for future periods Ln.ch sched. Leons from officers, directors. trustees. and key employees Lts.ch schedule) . , . . . . • . . . . . . . . . . laortqeqes and other notes payable(Rtach schedule) ,. Other llabiliues I-SEE STATEMENT 5 676, 582, 187. 444. Total fi.tiilitits (add lines 60 thro h 65) . 11 552 166 11 516 815 I fund Balinces or Net Worth ../..11..s ch., a. r.., at...,l.,. t,a, ,... . ~ and complete lines 67 through 70 and lines 74 and 75. a Current unrestricted fund , , , , , , , , , , , , b Currtnt restricted fund , , , , , , , , , , , , Land. buildings. and equipment fund , , , , , , , , , Endowment fund , , ,-, • , , Other funds (Describe PSEE STATEMENT b 1 279, 015, 1 .795. 474, ...lull.a ufl a. ..t .rf r..d ttt...u.,. t+al hert • and complete lines 71 through 75. tal pital stock or trust principal G pi . . . . . . . . . . . Ln ~+ ~ m - Paid-in or capital surplus , , , , , , , , , , , , , Retained earnings or accumulated income , , • , , , , 00 Total fund balances or net worth (see instructions) 279, 015, 1 795, 474, ~ Bh' _ Total haDiltttes and f und balances/net worth (see instructuonsll 11 8 31 181 1 3 312 289, I Ln
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:1040 35413 03/18/90 p•a a 2aCt VI List of Officers Directors and Trustees (List each one whether compensated or not. ' - 4e) t:nt .N a.apt - (C) ..r...ati.a ~ (4) M.a u1 NMas I s..rs Nr .erl I lil aN paN, ~..qt.4 N pani.. .atr ter.l --S-EE STATEMENT--1-------------- -------------------------------- - --------------------------------~ See Ip) CNltia.ti.u q .wpl.y.r a..tllt pius Q) Eao..w -- tcc..a ..1 AA .Il..oltq "art VII Othor Inforrnation 3 has sAe orqaniteden enqaped in any activities not previously reponed to the Intern.l Revenue Service? ,, ,,, ,,, ,, ,, ,,,,, If 'Yes.' attach a detailed description of ttte activities. 7 Heve eny ¢ArNes been made in trie orqaniiirq or ifoverninp decutnents, but not reported to IRS? , , , , , , , , , , , , , , , , , , , If -Yes.' attach a c.nfermed copy of the changes. 3 If tlte eryaitatien had income from business activities. such as drose reported on lines 2. 9. and 10 (rnonp others), but W0T reponed en Form 990-T, attacA a statement explaininq,yqyr,~~a~~~c~~B 990-T. a Did the oroattiutien have urreltted business gross inceme ei~ or moire overed by this return? ,,,,, ,,,,, b If -Yes," Mre yeu filed a saa return on Form 990-T. Exempt OioA bJsltles?'Inp7onflSe~ ~T'~' ~turn. for this year? , , 3 Was there a lieuidation, dissoMrtion, terminetion. or substantial comrarqenista- ctiMQu1~Q11eFyda1~14de`+fntructions.)T11eFyda1~14de`+fntructions.) , , • , •. , , , , , , , , , It -Yes; attarll a statement as described in the insuuctions. PUBLIC INSPECTION COPY id ith id i i i i i tn ) t) r i l h h ll r d l h b e or nttlonw e orgen iat on w a s on trouq common e eryen sat on re en at ew s t ate et er t y assoc &L,qnemtiership, governing bodies, trustees. officers. etc. to any other exempt or nonexempt organization? (See instructions.) ,,,,,,, +c t1-Ycs.-enterthenrneetiheer9.rti:ation~-------------------------- ------ _ -------:, - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - and check whether it is ~ exempt OR ~ nonexempi +is~' t a Enter amount of peliuul eapenditures, direct or indirect. as described in the Instructions ... ....10-1 N/ A fs b Did you file Form 1120-P0L. LLS. Income Tax peturn for Certain Political Organtzatlons, for this yer? ,,,,,,,,,,,,,,,, : Did your erqanilnion receive denkrted services or tl+e use of ineterials. e0ulpment, or facilities at no charge or at suostantidly less thal foir rental value7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . If -Yes' you moy odicate the value of these items here. Do not include this amount as support in Prt I or as an expense in Part IL Set instructions for reportinp in P.rt lll ,,,,,,,,, ,,,,,, N/A q-1.ction 501IeH5) or (6) aoaiutiorts. - Did nte erponitction spend any amounts in anempu to influence public epinion about legislative moncrs or referendurtul LSee instructiern end Regulations section 1.162-20(v.) ,,,,, ,,,,,,•, ae/ If -Yes: enter the total arnount spent for this purpose , , , , , , , , , , , , , , , , , ~ ~ect ion S01/~(71 erqonisetiens - Enterr a Initiation fees end capital eontributlons included on line 12 ,,,,,, N/ A 'r qNs - -r.._. b Gross receipts. included in line 12. for public use of club facilities ISee instructions.) ,,,•,,,,,,•,, N A c Does the elub's governing instrtlment or arty written policy statemem provide for discrimination against any person besause ef race, celor, or religion? (See instructions.) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , _ , , , i Section S01(c)(12S eryani:ations. - Enter atount of: a Gross income received from members or slareholders , , , , , , , , , , , , , , , , , , , , , , , , , , N / A b Gross income received from other sources (do not net amounts due or paid to other sources .qanst amounts due or received from them) , , • , • , . , , • • , . . . , . , • , . , . . . , • , , , , , N / A 3 Public interest law ltrms. - Attach information described in the instructions. r List the sutes with which a eepy of this return is filed ~- _NEN YORK ------------------------------ 7j$trrmq this tax year did you maintain any prt of your accountinp/ux records on a computerized system? , ,,,, ,,,, 3 The books are in care of • - ROBERT - GERTE - NB - ACH - - - - - - - - - - - - - - - - - Telephone no. 11"- 212-421-8885 -----------------------~ Located at 01 ---900 -THIRD- AVENUE.-N-EN YORK_,_ NY-10022 - - - - - - - - - - - - - - - - - - - - - - - - Sees/hn /9!7(aN1) trusts filing Form 990 in lieu of Form 1041. - Enter the amount of tax-exempt interest received or ~~ a~ccrued during the ta: year 1~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . lease ign er• . tt.wial I.i1 rtt.ul, i.tl.lrnq .ct.mptayl.q fcUNars a./ pneletnll an1 is loe etsl ai .y Lo.IN9e U..t1 ptaill.tt o/ p.ritly. 1 eelart tl I a il ic Irat• cHrrtt. aa/ ca plelo tl~clUaalf.~d pt.traf (ei.t/ 16.8 allittr) it tlr:r/ oe .11 idorwabeo al ..icA prtptr/r .at ..y keo.Itlqt. Il l U ' ~ e4.J~•v~-"~ ~ ,s.q.at.rt .I .Irtrt ~F~~.R'ILLN 0 A Pl.nltrr ' C ' / / aid reparer's ,mt lar COOPERS E• LYBRAND se Only ya.rt il ,tlt-r,ol.r•/1, 1251 AVE OF THE AMER I CAS NEW YORK, NEW YORK 1 "1/29/90 \ president oalt / rut instructions.) oatt ZIP code x IN' IUtct II Lu• • L.,ol.rt/ 10020 ./s~
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THE COUNCIL. FOR TOBACCO RESEARCH-U.S.A., INC. NE1i YORK, NEN YORK 10022 LIST OF OF~ICERS, DIRECTORS, AND TRUSTEES STATEMENT 1 13-2671498 - CONTRIB TO TITLE EMPLOYEE EXPENSE NAME AND ADDRESS AND TIME COMPENSATION BENEFIT PLAN ACCOUNT ------------------------------------------------------------------------------ . HOBBS CHAIRMAN 98,333. NONE NONE 00 THIRD AVENUE EW YORK, NEW YORK 10022 PART OBERT GERTENBACH PRESIDENT 121,645. NONE NONE 00 THIRD AVENUE EW YORK, NEW YORK 10022 FULL STORR TREASURER NONE NONE NONE 00 THIRD AVE EW YORK, NEW YORK 10022 PART . JENKINS ASST SECY 45,833. NONE NONE 00 THIRD EW YORK, AVENUE NEW YORK 10022 FULL ORRAINE POLLICE ASST TRES 45,750. . NONE NONE 00 THIRD AVENUE EW YORK, NEW YORK 10022 FULL BROOKHAVEN SERVICE CENTER PHOTO COPY DO NOT PROCESS PUBLIC INSPECTION COPY CT.uT I
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x001 35413 03/18/90 THE COUNCIL FOR TOBACCO RESEARCH-U.S.A., INC. STATEMENT 2 --NEN YDRK,'NEk-YORK 10022 ~ _ - 13-2671498 - REVENUES AND EXPENSES INTEREST REVENUE INTEREST INCOME-GENERAL FUND 122,603. INTEREST INCOME-SPEC. PROJECTS FUND 4,791. ------------ TOTAL _ . 127,394. uROOKHAVEN SERVICE CENTER PHOTO COPY DO NOT PROCESS "° ' -nLIC INSPECTION COPY
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.001 35413 03/18/90 'HE COUNCIL.FOR TOBACCO R~SEARCH-U.S.A., INC. --4EW YORK, NEW-YORK 10022 -fi~_ STATEMENT 3 13-2671498 OTHER EXPENSE MISCELLANEOUS EXPENSES 5,395. RESEARCH C ANALYSIS 4,717. PUBLIC RELATIONS 145,095. PHOTOSTATS C MULTILITHING 31,881. BANK SERVICE CHARGES 10,217. INSURANCE 172,223. PROVISION FOR DEFERRED COMPENSATION 45,803. ------------ TOTAL 415,331. BROOKHAVEN SERVICE CEyTE; PHOTO COPY DO NOT PROCESS QI IQlI^'1r.^~..Tln~l /"'7
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AUUl »41~ Ul/1!S/`JU TKE COUNCIL FOR•TDBACCO RESEARCH-U.S.A., INC. STATEMENT 4 -NEW YORK, 1dEN- YORK -10022 - fb- 13-2671498 - BALANCE SHEET DETAIL END OF YEAR BOOK VALUE OTHER ASSETS DEPOSITS 1,525. BROOKHAVEN SERVICE CENTER PHOTO COPY DO ":OT PROCESS OI
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i i'Vi I v J/ 1 Y/ 7 V THE COUNCIL EOR•TOBACCO'RESEARCH-U.S.A., INC. STATEMENT __.NEN YORK, NEW YJ3RK_ 10022 - k-.,. _ - - - - 13-267_498 BALANCE SHEET DETAIL 5 END OF YEAR BOOK VALUE OTHER LIABILITIES SEE SCHEDULE 187,444. OTHER FUNDS SEE SCHEDULE 1,795,474. BROOKHAVEN SERVICE CENTER •-PHOTO COPY DO NOT PROCESS n,,oi ir^ Wcc+crTION C(aF",'
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x00). 35413 03/18/90 _ TNE COUNCIL-FOR 'TOBACCO RESEARCk!-U.S.A., INC. - STATEMENT 6 NEW YORK, NEw YORK 10022 k"' - 13-2671498 - =**FEDERAL FOOTNOTES ~ FORM 990, PART V, LINE 65: 10-31-88 10-31-89 ------------ ------------ OTHER LIABILITIES: ESTIMATED LIABILITY FOR DEFERRED COMPENSATION 443,208. 187,444. ESTIMATED LIABILITY FOR SUPP. RETIREMENT BENEFITS 233,374. i ------------ ------------ 676,582. 187,444. FORM 990, PART V, L?NE 70: OTHER FUNDS: GENERAL FUND 1,506,980. 1,992,907. SPECIAL PROJECTS•FUND -1,227,965. -197,433. 279,015. 1,795,474. BROOKHAVEN SERVICE CENTER PHOTO COPY DO NOT PROCESS CTiON CnO"
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PUBLIC SKOXING ZP : 'Zri 1971,_ Jesse L. -S:t.einfeld, , then -L~S. blirqeon GeaeFal,, advocated the prohf.I:4e;can of smoking in confined public places, suclt• ars: restaurAats, theaters, airplanes, trains and buses, because the nonsmoker r.iqht be injured by ambient tobacco snoke (i.e., tobacco smoke in the atsosphere). Steinfeld;•a, s:tatement q.ve anti-ssokinq groups an effective tbeae. ?be aati-s.oYinq or9anisations adopted the objective that smoking sbould be made socially un- acceptable. They began a mass invasion of state capitals and city halls to'arque that lavs mmist be enacted to pro- tect the aoasmoker from ambient tobacco smoke forced on h ia by smkers fa guhZs c places. ; CfSRONOLOGY 0 ; The follovir,q is a brief sketch of ma jor events at the state asd Iocs2t.-k`level subseqveat to 8teinfeld's clarion cau. 19 71~ Z~eiqht bills introdviced in five states t 1973 ' Ttr`'•S-ills. introduced. to• restrict smoking in p'23icl places t none ena•cted. tw enacted. 1. 2. 3. Q. S. , . ttscteefi bills proposed in 12 statesl two enacted. 6. SiR'Vaopted guidelines which prohibited smoking ta~czsace zooes and auditoriuras in its build- Zar~s~wad zssp7ired s+o smoking sections in its C'i~~Q~ iaff. Tliirtr-six bills proposed in 16 statest five enacted. . Kany. sunicipalities enacted restrictive ordinances. Sbe Ari=oaa restzictive lav and.its pramoter, N.rs. 8etty Caraes, received wide publicity. The CA8 ordered cocsmercial airliners to separate smokers and aoa-ssokers. 1974 Sixty-tvo bills proposed in 29 s tatesl five enacted =4 . 6evezal s~unieil ozdinances restritin a c ki l p q smo nq a so were iaacted. The ICC restricted caokers to the rear _. 3& &esrsoL at 06, 4, 4 - 9 apaze an Ant.eratats buses. i . pne hundred sixty restrictive smoking bills intro- duced in 46 statest 17 enacted. The Minnesota Clean Indoor Air Act restricted smoking in a broad range of public and ccmmercial areas. The New York Health Department prohibited smoking in public areas, in- cluding supermarkets. 6. 9.
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r-araprapn NutnD! 1 1975 One hundred sixty-one bills proposed in 39 stateso eight enacted, including the Utah Clean Indoor Air Act, another-broad n9 smoking bill.-Lavsuits were filed against the Pflntiac, liichigan, Stadium Author- ity and the Nes Orleans Svperdacae by anti-smokers seeking to prohibit smoking in the buildings. Zrie court disaLtssed the Superdome action and the Kichigan lawsuit was settled with an agreement that the stadium would request the public not to ssoke except Sn concairses. 1'he ICC prohibited smoking in railroad dining cars and required sepa- rate passenger cars for smeokers and non-smokers. Donna Shiayp sued her euployer, Nev Jersey Bell Telephone Coapany, and obtained an injunction re- quiring the cocpany to provide her with a smoke- free working enviromment. 1Ss. Shimp was an ex- smoker aho clsiaed she had a rare eye condition which vas aggravated by tobacco smoke. l0. : f 1977 One hundred thirtr-six restrictive bills introduced in 44 states, 13 eaacted. The General Services Adasinistration (the caretaker for U. S. Government bdl2d~iags), the State Department and the Department o~l~f,,ense enacted restrictive smoking guidelines • fo= baildings under their control. The FAA re jected a'tion by a Nader group which requested a p o~ibition against smoking by pilots on the flight deck *~sf airliners. The CA8 voted to prohibit pipe ~ a~ff*gar smoking in interstate airlines and apnounced that it would consider a rule prohibiting t ~ c~ ttte smoking. a 1978 At~y 1, 97 restrictive bills were introduced fistates, and three were enacted. As a part la„t2* 8Li1's "War on Saoking' program, SShT pro-11gated of ne•v°-~•r, r con•eatrictive smoking rules for buildings under ~-~~:a it.:trol and announced its intention to urge businesses and state and local governments to adopt restrictive smoking rules. California GASP and Californians for Clean Zndoor Air obtained suffi- eient signatures to place a broad anti-s=king initiative on the ballot for the California general • election in ltoveaber. Twenty-six restrictive seasures were proposed in local governments and eight bave been enacted. In April the New Jersey Public Eiealth Council added a broad no smoking in public provision to the itev Jeraey Sanitary code, which is enforcea.ble as law, effective July 1, 1978. Saplesentation of the new Code provisions may be delayed at the reqoest of the New Jersey legislature. Anti-smoking groups have continued to enjoy their great- est successes at the local government level. Mbst major cities now have restrictive smoking ordinassces. Tbere are 11. 12. 13.
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Paragraph Numb . more than 225 local governments with restrictive ordinances reported to _the Tobaccl institute. The a.ctu&1 number is probably larger.. - • THE LAi?S AND E2.'FORCE!'.ElIT * Thirty-two states and the District of Oolumbia have en- acted legislation restricting smoking in at least one cate- gory of pualic p2a.oes. OGf tAose 32 states, the mnjority have en- acted prohibitions or restrictions applicable to elevators, public transportation, theaters, sauseuzas, libraries, concert halls, health delivery facilities, health care facilities, government buildings and public meeting places. Six of the 32 states have pzohibited, smoking or require segregation of smokers in retail stozes, food stores, and restaurants. Zvo states (Kinnesota and Utah) extend their restrictions to pri- vately ovned places, including offices where more than one person works. ?!se lsinnesata Clean Indoor Air Act is one of the two broad- est state re-kidetive laws irr the United States and has become the aodel for_~.~.~iti-smoking legislation. The law prohibits smoking in p Sc places except in designated smoking areas. The Act defs~t"public place' as: ... any enclosed, indoor area used by the genezal Op=~erving as a place of work, including, but ic, t li.dted to, restaurants, retail stores, offices ~ d'~~artid ot~:»'~f~ommercial establishments, public convey- ances,Leducational facilities, hospitals, nursing bcmes,U~_&3itorf_ ; arenas and meeting rooms, but e3elud:rivate, escloced offices occupied exclu- sivelrA,bX ~.s~okers: even though such offices may be tri s ited""by~"~": aonsmoke rs. smoking. areas sy be designated by proprietors of public places. provide:d tbatz ...vhere saoking areas are designated, existing phycical barriers and ventilation systems shall be nsed to minimize the toxic affect of the smoke in adjacent nonsmoking areas. Current trends in state laws and local ordinances actually enatted i.re the sxtesaslon nf smokin9 restrictions to cover govertment-ovned+ bu,ildings, grocery stores, supermarkets and health eare ard& dalirerT facilities. The major trend in the biils istrodroed, reflecting the ambition of anti-smoking supporters, is: the. exteasSon of restrictions into the vork- place, including officer. 240 15. 16. 17. •
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Para;raph Nun f : Reported enforcement activities appear to be the result of either official priorities set by the local ada,inistration or, ~aare frequently,- ftndan efforts by local GASP chapters to obtain enforeement of the laws. In Chicago, s=oking on Transit Authority trains and buses is punishable by fines of $50 to 5300. Offenders are tried In 'Saokers' Court,` where more than 800 people were convicted in 1975. People who could not post the $25 bond had to spend the night in jail. even those who could post bond often had to spend several hours in custody before cutting the red tape and winning release. SaUkers have been taken bodily from ~ trains because they protested their arrest. Ninety percent of ~~ the arrests have involved rlnority and low income groups. i:I , However, In most cities which have enforced public smok- ing laws, actions have resulted from private cocplaints and citizens arrests made by privatr indiuiduals, usually mem5ers of GASP. liost reports of enforcement from citizens' arrests come from California cities. The laws of aost states do not Ie. 19. 20. ~~~ ' , Ps,.r'o.'.. I ~ authorize a citizen's arrest for violation of no s:moking laws, but in Cali,tornda smokers can be arre:sted by fellow citizens. ~- ~ Yet the, primary inpact of s~oking restriction lews may be 21. ~ the ereation,vf:a no-smoking norm in public plaees. The ~ Consmissioner...~! ~l= Dade County, Florida, admitted that that county's anti=ftokiaq ordinance was virtually unenforceable ,~ butr=*13bed: -....,~..,~1.:. ......~~ in the elevators, the clerks In the the people ` stores''°awd, the nonsmokers in the check-out lines, wtio by,~~r rerarks to offenders are enforcing the law. It's being enforced by people who want ~c• AX to obey-_tre law and I'd say it was 85% to 90% effect4~ The impact of no-smoking laws on the cigarette market has ' 22. not been accurately measured. However, to gauge the iz:?act it is helpful to reeaesber that the average s:moker In the United States consumes 1.5 packs per day. If St is assuaed that smoking prohibitions in public places caused the average ssoker to consume one less cigarette per day, total con- suaption in the U.S. would be reduced by 1/30th. x 2H£ +MDIGIL EllCTs in 1971, Jesse L. Steinfeld, M.D., who served as U.S. . Surgeon General fraa 1968 to 1973, said: Evidence is accumulating that the nonsmoker saay have untoward effects from the pollution his xaoking neigh- Ln ~ a ... It is high time to ban smoking on him bor forces u m 0 . p m 0 from all confined public places such as restaurants, ~ ~ theaters, airplanes, trains, and buses.... or ~ ~ N OD P 011 ~ it s;.~ing rzorally enforced: it's the people, J
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ParaDraph Numbi r . I . r ?'here vas no evidence in the speeche and there had been no evidence in previous Public Health Service (PHs) reporLs to Congress .o bsoking-and health -sigsied by the Surgeon General (coamoalX calYed. tlse Surgeon. General's Repott). In fact, a pzevfnusly published PHS booklet entitled 'Sa+oking, Health, and' 7ou"' stated that the sa+oke froe other people's cigarettes •may make your eyes tear or may make you cough, but it cannot harm you....' The next report to Congress on smoking and health, the 1972 edition, for thr fltrstt time cited reports indicating that arabient tobacco sewke could be harmful to nonsa+okers. The evidence was not convincing and strong contrary evidence was omitted. Anti-smoking groups liatme repeated Dr., steinfeld's claims in forums throughout tbe: D.atted States and have expanded tbem to include assertioes about a vnriety of potential injuries to nonsmokers froa e t,o ambient tobacco smoke. The anti-smokers' claims that nonsmokers can be injured by aiabient ~cJba&-o smoke are not supported by scientific evidence ~t~~ instructive to examine a few of these claims in the light oL, scientific and medical krovledqe. j'~" Toxic "~anoesa 3mtf-sasokers often present a list of so-called 'toxirl' substsrces Sn tobacco smoke as proof that amb XW4 totbc4smoke can be harse.f ul to the nonamoker. d+~r r exs~3,,~a'., cigarette smoke contains hydros~en cyanide. A.nti-smokers.aay also say that ambient tobacco smoke Sncludes 'side streaam'-s+ooke (taa. aaoke. which goes directly into the air froea the.: ., ..u~rning eaZ ed ~e cigarette) which has higher coneentratio~ n` of soemn subst~amces than tbe smoke inhaled by the smoker. , These charges ignore the fact that first, the concentra- tions of these substances in ambient tobacco smoke are minute and, second, these suhstances are readily diffused in the air. 7lllerQy: Anti-sesakers often cooplain that many nonsmokers aze allergic to tobacco amaice. ASH, for exanple, asserted in a recent submission to tl4e Ctvtl Aeronautics board that as many as 30 to 34 aillion Americans "have a particular sensi- tivity to tobacco a.oke.` There is gennisK clest" wBetber tobacco smoke has 'b.en shovn to be or contsia am ..llergea. Dr. Dcmingo Aviado, Professor of Phars,icolaW at t2fe University of Pennsylvania Medical School and aa ZmteTnatfonslly recognited expert, made the folloving stateeents: ' 24. 2S. 25. / 27. 28. 29. 30. 31. 32.
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Paragraph Numbi ...should a- trve tobacco taoke allergy be shown to exist., v:93-c3i has:not been•, done; it would be quite rare. Lstfmates t16Xt large nuabers of persons are allergic to tobacco s:moke: are unsupported by s,cientific data. The method of detercining whether an allergy exists has not Deen settled although many allergists make use of a skin test using tobacco leaf extract. Such skin testing is not. at all coopazable to exposue to tobacco so3oke. There Ss a major scientific difference between an allergy and an annoyance or an irritation. Individuals ssay be Irritated or annoyed by a.ride variety of airborne substances but not necessaril'y allergic to thm.. imat aboult aes;.tisat~7t There Is no objective scientific evidence to supporr the: cfiaim that aatibient cigarette smoke ad- versely affects. ttiae 2isazy 2=rtion of asthmatics. In a 1977 study by pimar„ Sbrep2lasd! arrd S1lverssan, asthmaties were exposed to cigarette saoke in-a•smaTr tes.t ehamber. The researchers were uaab~~ind any significant chang-es in their lung tunctims.~~ arbotrri~oaiAorts Aa.iotHan elaim. is. that the carbon monoxide 3iAAb~e- ssake. Y.s po:tsonoas,. severely affects a persoa's.'tas3..pt erfbza.a=w' and 'caa cause cardiovascular and re qpf6 torypdirs~eases. ~ *~=~roua--?#tudies have shovn that carbon monoxide concen- trations i4enclosed areas resulting fro© cigarette smoking are verr lbrc-and dot not pr.e.sent an inhalation hazard to the Aons~ao~ter.E~~ee actual carbon monoxide s+easure=eritW krrdM studiew~ off tft: physical reactions of non- smokers W406-kHarke 1972). ~ Aato exhaust and industrial fumes are, by far, the aa jor sources of carbon monax;ide in the daily environment. ?o suppart the e2sft that smoking can produce higher carbon acnoodde ooi4oentrations, anti-smokera have cited a study iavcZvSngW sook,ing; in sa, autamobile. However, the volume of tlte- car• invol*ed+.as: onlr•73.8 cubic feet, which is eqai.ralent to a aibe with sides of 4.2 feet each, and all windows and vents were closed. Zn 1977, tbeA fNR considereII a petit3 vn by anti-smokirg Qronps rftV=tiarG; a ai33e gruhdfttiag tobacco =oking on the flight dec3R.. '?ltie~ asQrtsat-t=.4a that exposure to relatively loY le.elw aff assbos ==mWiffin esm.es substantial is:pairaents to vitO 2lra:4s± and: syervoues syX-trsa functions. The FAA cere- fully ooesidered several studies and ruled that the y+tition did not disclose adequate reasons to justify the rule it requested. J 33. 34. 35. 36. 37. 38. 39.
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0 ~~ It is interesting to note a few carbon monoxide eiquiva- lents. One automobile driven 12 1/2 miles•emits more carbon monoxide than a 1.4-pack-per-day smoker contributes to the atmosphe.re in an entire..year._ A Washington,--D.C., Counsel of Governments study found that cars and trucks account for 92 percent of the carbon monoxide released into that region's air. The F1W measurements of carbon aonoxide ew issions froo one Boeing 707 in its 33 minute landing-takeoff cycle is 202 pounds, the same amount as emitted from smoking 1.3 million cigarettes. Nieotine: Ia 1975, t,.o Barvard investigators, Hinds and First, measured the concentrations of nicotine in public places in Boston, such as restaurants and cocktail lounges. They demonstrated that in "public places nonsmokers could poten- tially consuae 1/1,000 to 1/100 of one filter cigarette per <0. 41. hour, a level of exposure that has had no known serivus asso- ciatiosi .rith disease." In other words, for a nonsmokez to inhale the equivalent 42. of one filter cigarette from aa.bient tobacco smoke he would have to spend fzom 100 to 1, 000 continuous hours in a smoke- filled bar. "•••::.% Nonsmokers.yWith Coaproctised Health: Anti-smokers often •3: argu,e that? po,sure to tobacco smoke causes stress to persons with s.evere3y""~ocapromised cardiovascular systeas. ~ ` i=possible Maus~~delicate condition is presuaed, it is ~~ <d. to Esteblish a"no effect" level of carbon monoxide exposure ~ ,~K m v ..,... ...... torY'these persons, and there is s=e evidence that they saay be adversely Afected to some degree by any exposure sufficient to raise t?ie caubon monoxide blood level. ' ~,.... This situation is indeed unfortunate. Bovever, reference 45. ~.......;.•:: . to this categorx of people as a reason for prohibiting smoking :~.... ~' in public plzces ignores the fact that they may be subjected to gne discorSort and stress in the course of their nor-..al daily en- ~> co=ters with carbon monoxide from autoaobile exhaust fumes 0 and other air pollution. Zt has been stated that the only ade- quate protection for these persons would be to maintain them in an •oxygen-enziched• enviroament. TI~ 2i02i-PROHLl,l SlS ,~ P '< A study of cigarette smoking in aircraft conducted Jair,tly by BfU, the FAh and the 0epartment of Transportation eoncb3,ded that the inhalation of ambient tobacco smoke aboard eomsercial aircraft •does not represent a sigaificant health hatmrd to nonsmoking passengers.' The result of the study vas first announced in 1970, prior to the tiae of Sir9eon ~' General 6teinfeld's statement that evidence showed ambient tobacco smoke could be harmful to nonsmokers. 46. 4 Ln ~ am m F. Co 4~N OD W
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Paragraph Nurnber : The ICC held extensive hearings in 1970 on smoking ir buses. Ilthough• the 2CC decided to segregate scmokers on the ~asris of annoyancd,- it found that the asverted deleterious effects of second-hand =oke upon the health of snotor bus passengers had not been adequately desaonstrated. Dr. Edvin R. lisher, Professor of Pathology at the University of Pittsburgh and Director of Laboratories at the Shadyside Iiospital in Pittsburgh, said in pctober, 1977 that a careful review of research literature failed to support the conclusion that ambient tobacco sa+oke represented a health hazard to nons:mokers. Dr. Tisher Qaids* She few studies that stight appear to be contrary to this conclusion can, in ny view, be rather , readily dSsmissed for reasons of Ssproper experi- mental design and lack of practical significance. Ibr exaaple, some studies use unrealistic quanti- ties of smoke or fail to consider other sources of the agents being studied. Even several eminent researchers and government officials ~.,,>..n who are vell_.:k~:otirn for their opposition to tobacco use agree that public} sx6'king is not harmful. Dr. Gio Cori of the Hational Caticsr% nstitute said, 'Zf we want to remain with facts and ne5~>~tD fiction, tbere is little danger of dis- gease to people-q~hat stey in a room where people =oke.'.~ ~. Rrt~e~l Stallones, an advisor to the Surgeon General's 1ldY~sp~y Co~sS~ee on Smoking and Health, recently said, 'In very direct~terr.s there is no medical proof that non- smokers exposad,,to cigarette smoke in ordinary relation with smokers suft~er ~~ny dassa ge.' , Dr. E.;`ft;~Ier Haa.mond, vice president, Epidemiology and Statistir.zl4Research, of the Aaerican Cancer Society and author of famous studies linking smoking and lung cancer, was reported to have made state;aents to the International Conference on Public Education hbout Cancer in 1974 as follovs: Dr. iian.~nd stated that there was 'no shred of evidence that a non-smoker can get cancer from •second hand' smoke and there is a lot of evidence that he cannot....' He added that to suggest passive smoking (inhalation of smoke by non-s=okers) could cause cancer is dishonest, awfl ttiat !se .rotsld be prepared to testify as ssach 1n court. . It Sa apparent that asiti-smokers' clairts that nonsmokers a re subject to Snjury by ambient tobacco csoke are not sup- ported by scientific evidence. 47, 48. 49. 50. 51. . 52. U 0 0 ca m N N ..
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Psra2raph Nurnbe CIiECT,LIST OF AFCUMENTS - ~_ The following suggestionsare intended to be guides for writing or speaking in response to anti-smoking arguments on public ssaking..actioas. It is. i=portant to remersber that health or scientific arguments can be ineffective in coarmsni- cating with the general public. On the other hand, most people can clearly identify with arguments based on freedom of choice, and many people feel strongly that the •hand of qovertsaent• should not ir,terfere with their private lives. Restricting smoking in business establishments should be up to the proprietor. Lvery restaurant, hotel, and other public establish- aent is presentlY free to establish no ssoking -are.as if this is.the desire of patrons. It should be the proprietor's choice based on custoner demand and •the warkeiplace. I comm6ii`• eou 7irttsy.: ~-z The fact is that a mnjority of public establishments do noVEL&sie no smoking sections. A survey by the Natioaa„ staurant Association confiraed that few nembezs of;the public actually desire separate aec- tionsffft'q okezs aad nonsmokers. •The public ss'o7cing issuc• can be resolved on the basis of ~ ~~~bst 1~y~Ys will show respect for the wishes of thoseLaround thea. Public saokioQ..Aavs F,resent crave enforcenent proble^s. . .~; During~°t?ie prohibition era this country learned of th~Zgreat difficulty governaent has in en- forcing aatters of social rorality and conduct. Unless the police go on rounds to arrest an individual as soon as the person lights up in a no smoking area, it will be practically impossible to enforce public szsoking laws ef fectiQely.. To the extent that shop owners and other pro- prietors are expected to be enforcers of these laws, they will be subject to difficvlt dilaamas. If a saoker lights up in a no s=oking settivn, can the wnez of a restaurant ask the person to extinguish the cigarette without risking the loss of patroerage? In light of serious U.S. crime problems, it is foolish to take police away*from critical duties t to detera,ine whether a cigarette has been lighted in a no smoking zone. Yet if such laws are not 53. 54, S S. 56. a 0 c a ~ N 06 N N
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vigorously enforced, their flagrant violation can breed further dicrespezt for the law. Hov can anyone justify he cori of enfozcinv_ public aaokina laws? • Taxpayers are usually not aware of the high cost of restrictive ordinances. ror exaaple, it was report- ed that a San Diego public smoking ordinance cost taxpayers $20,000 merely to get the law on the books in January, 1975. Co=plaints to the Police Department there cost over $70 each for the officer's time, processing, paper work and court action. ~ Public smokino laws .rill place a substantial burden on ~ Individual proprietors and on the econo=. I Zhis is particularly trua when public smoking laws z.qcire the erection of pLysical barricades, im- provements of the air circulation system, and other ital expenditurca. The costs of co~- ~ pliance ~Arith such laws can be substantial. In addittoii;'"~'many establishments aay be so a=all that fli~~cannot effectively segregate s=okers azad . n:~ke rs. r am-N restau raint's economic success drpends on rsaxi-: ~„~_ `saLxm peak=~liaur traffic. Restricting the use of c~sT s:.aLl,..,Lr*a at that ti.ae can cause losses. d l i c b i C 57. 580 . ZWr exazp eco9e rr tate e, 1~sto ezs also can }+~ a saokaz.srziving to find a line .raitinq for ~ istie saaxasyq section, rmen uze no saoxing section ` z) ` ' r; bdtadbln Wh secse1e onezsrsay agry.en- i •ever #"p*tron Ss turned away, the proprietor zieks;acg that custoner's business forever. Lfforts to attract conventions would be daz;?ened by the risk that conventioneers could be fined or jailed for 1Sgbting up S.n the wrong location. Should an individual's saoking in-public be crierinally 59. restricted br aovesz=ent ections7 Is jail really the appropriate place for an individual whose -criase' is lighting a ciga- seLte? How far will aovernment go to restrict our private lives? 60. 7bere are obviously many public annoyances to everyone in their daily lives. Z'he •bad' or conflicting behavior and manners of other people in public places can'cause substantial
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ratswiGy(1 lN:ltTioc f r ped'~... P.::::::' :•• ~. irritation. The noise and fumes of heavy tratfic,, tAe dissatistaction totirard public s+erv_icec like sanitetion and law enforcement, the irritation frca+ dirty streets, barking Qoqs, noisy neighbors.or even the weather can certainly be more severe than the diffused saell of tobacco s:moke in a venti- lated public place. Should laws also be passed to ensure good sanners and behavior, and, if so, by whose stand- ardsT any effort to extend government regulation into these areas wuld result in a massive interference with an individual's personal life and freedoms. The public smoking issue aay be best summarised by an editorial appearing in the Boulder Ca.mera, (Soulder, Colorado, January 22, 1975)t It•s: mnr thing to legislate conduct for t2u protection of society--to restrict b ffrsftor that endangers the life, health oi~t~ alety of others. It is quite another tA•leqislate against conduct that merely a}ens- Hardly anybody can avoid annoy- ~«:: 1'!ig _6cebody elar occasionally. When government gets one foot into the realsn ~ c}*''~e`3iavior modification, the blue-law tMicket loocs ahead. saokezs' viches -ehould be respected, too. ~ The qies'""44o=a cf segregating smokera is really a matter of balancfng the convenience esrd preference of smokera and non 'csattera. Although r,onsmokers certainly have interere `-that sust be considered, ssokers also should be accommodated. Sh+e best and most effective method of bnlaacfag. those desires and interests is through c•-*m^n casrtesy on both sides, without the ieposition • of rigid and unworkable government r..quirements. This nation does itself no service when unnecessary aocial conflict arises from the advocacy of rlastated ~ stad erroneous health concerns. ! 61.
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~ =~._ . Q[tES?IONS L 7WSitERS . f . _ ~ -- - ~ - -- \, 1 Sndividuals associated with the tobacco industry ofte* are confronted by thought-provoking questions regarding sasok= ing and health, public snoking and other issues which make up the controversy surroundiag the industry. In the past, esa- ployees have not been adequately equipped to deal with these questions. Brovn & Williamson prepared this handbook in an effort to inform eeiployees with a depth of knovledge sur- rounding the Sssues. ' The follwing sect3or: includes a series of questions and answers covering a variety of issues. These questions have been accumulated frosa s,edia interviews and discussions with a variety of groups by Brown t Williamson and industry spokes- persons. The following cpsestiorss and answers ar. not intended to make 'spokespersons• out of Brown t Williamson employoes, but they are intended to better inform our managers. . Does smoking cause lung cancer, eaphysma, cardiovascular disease and bronchitisl.• . No one ~iios. scieattfffc rrseerch has not established 44 Lthat am•o'kiag causes Sllaess. We all knov some scientists have siC'Sd,smoking causes illness, but many respected scientjs•,jj.:.,&elieve cause has not been shown. Hore: research 1-~ needed. :~jApw r ean deny the overvhels`.ing statistical evidence ~ *SL~t soic.kin~g causes disease? ~.R se a g inst smoking is based almost entirely or. A: The ca inferen~-fzos stat•3stics. 8zt most scientists will aqree ~mtatistles3 assr~eiations cannot establish eause and~tffect. s'tatistical associations are only .,~, clues dh'~c"1~ show the need for clinical and laboratory experia+rnL~ There are other flaws in the statistical arg=ents, such as the reliability of the data. By the way, there is a statistict2 assoeiation between lung cancer and the use of electric razors. We need more biological research. . When you look at lserqs takea fzom smokers and nonsmokers, it's obvious that smoking has damaged the lungs of the smoker, as cmpared to the lungs of the nonsmoker. This proves that smokers are daaaging their lungs. A: Perhaps you've seen the rather grisly ex?ilbit set up by the Aaer3caa Caacer Society .tiich contains two specimens of lung tiasve, oae .hich 1s smooth with a light cream color and tbe ot2,cr .e3cb1 bas .rasts an d i s coal bla ck . Qne lung is said to be from a smoker and the other from a nonsmoker. You can guess which is which. The exhibit is deceptive because it represents that the differences in the tissues are typical results of smoking. This is not true. A former president of the College of American 1. 2. 3. a. 5.
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t .r. oY. o f..'. ..a...w. . Pathologists testified. before a Congressional Coa=ittee that-$ 'I have , ea' thousands of lun9i7both grossly and sdcroseoptcallt. S eannot-tell you from examining a lung whether ax aot its foraser Aost• had smoked....I state flatly and' uD.qvivoeally and entphatically that cigarette saokYag .efll not turn the lung black.• Q: Do you deny lha+t ssroKing•is hazardous to your health? ls Ho one knovs. Mhay respected' scientists believe that a causal relatiomdrig between cigarette s;moking snd illness bas aat been proven. Do you claim that the benefits of smoking outweigh the risks? problea.s to nonsmokers in the same room? .l~4 ~ asbient air is not harmful to the health Smoke of theno •`acaoker. Even medical experts .rho.have 5een ~sociated tidtb, the charge that smoking causes lung t"Z--Zncer V-T'the smoker have said that saoke in the ambient d~a !r has no .3afluence on the health of the nonsmoker. Whether or not ttw a-We isa ax choice -to be s,ade by inform- ed adults base3 oa :.bdividuaU assessments. Obviously aany people derive sme value: from smoking because it has been a papatlar austom: forr }iundreds of years. Coluabus found the Laeriean Zndians ssaoking, and sales of tobacco leaf supported tiraJamestovn. Co•lony. Jtov ea ~ smali~ rite~sn yp=krsvw• you are causing health _ Why arps~knnfacturrtr.s producing more low 'tar' and nicotine cfgarettes• and' advertisin9 those brands heavilyMy there Is no health risk involved in ssokin ~,b•.i.:~b •tar• and nicotine cigarettes? Cigare~.. ~itiMannvLacturers are producing low 'tar• and nicotine cigazettae;ls~: zerFpnse. to consumer d-ands for those prodocts.. lYraa Rwr=zg4_1Zorr of the growth of the low •tar' segsent Is correct. Sales of cigarettes with less than 1S s~flligrams 'tar' content increased by more than 50 percent in 1976 and comprised roughly 25 percent of the total ctqpkrette market in 1977. Only a few years ago low `tas'' s+esd: nitotSne= cigarettes were an insignifi- cant part of tlls: s,arket. This very rapid shift shows the cigarette asnnfacturers` eagerness to respond to austorsers• changing preferences. The advertising cpbasis sisplt Si'In"raws tBe• shi7t In consua+er de=anQ. 1b cigarette 2ias said' there Is no health risk involved 3er =mo*i•srWMfgh •tar' and nicotine brands. As with tbe qpmmLisar, odf aakinq and disease Sn general, no one hovw.. Bow much a+ones does the tobacco Sndustry spend each year in advertisisgr to attract new smokers? None. Cigsrettoe adsrerti.ing; Ss brand advertising. Its purpose Is eanpeti'rion against other brands for consuxers, not to attract new smokers. , 6. 7. e. 9. N P N 0
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Qf ::3 i As 2iine mut of ten seoters say they want to quit. Shouldn't the qpvernment help ~hesa by sponsoring. quIS..-s:aokinQ pro- graarr`7g . - Laeb adult individual sust make up his own mind whether to sa+oke. The tobacco industsy is not interested in preventing anyone tsom giving up cigarettes. Many private stop-smokiing progr.ass are available at little cost, and literature ahicch describes ways -to stop smokin9 3s a,vr4-1-M ~ fcea: f•ran several saurces. lSany people have snvpped'.witliotrt_.a.fosaal program. It is not necessary to spend taxpayers• aeoney. I Q: Doesn't the cigarette industry feel some responsibility for the $8 billion cost to the Onited States for health ura ana• S.1B~ billion. cos.t to the United States in loss of prodasction• ~ ceased by cigarettes sold? A: The charge is booeQ'oa the assueaption that smoking causes illness;, bar, eausati.on has not been established by =i-entific research. ?frere are other difficulties 11. 12. ~::::^~ -->; with ttie• figures. For esa~ple, the figures assume the ;.~"a~,~e f ~''.. ~'"~ need: tszL haalth:se=vices included would disappear if no avWWe&d'garattes. With our aging population, this i~- m2ikely. r_C~ Q: Doew.•ftb-, a nonsaokiug..ma jority in this country have the 13. i . rigTrt t'Qsvrote that cigarettes should not be s:moked in ~ fA!!!klic places? ~ ~ A: Stich a law would be conpletely unjustified as a ~ dF#inctip~A;.~ government in our society. Z~olerance is the carnerstone of this country's democracy. There is no h*6x2t2i danger to nonsaokers -- the problm is .~ ` ~ ~ .~: ~ annoyance.J This is a social aatter which must be left La people to resolve in social situations I a«,,, ~:a:~, t}iroug~i ~~ual coustesy. Laws dictating personal arrests fines and forced se re ation ~ soeiaL~""niluct ; :.......•: , , g g ,. are a•saans of- dealing with a social situatiorr If° there are oing to be laws rohibitin . g p . g ~ saoking in public places, there should certainly be laws I prohibiting strong perfuae, body odor, and untrained , pets. . ihat vould'you tell your child if he asked you whether A: be should smoka cigarettes? I would tell hia to• .riit until be was an adult and then . aake• sg lia arn• min3: 18setAer to smoke 1s a ehoiee 7f or the brftt3A+*d and a choice that should be nsde only by i-famrdffl edup'ts. Q: sow db• you accauat' for tb,e fact that so aany government and scientific societies have passed resolutions assert- ing that smoking causes lung. cancer and other human diseases? 14. 15.
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-` . : The _fact that govestament bodies and sciea,tific societies Isave passed such re.solutions indicates that the con- tinuing controversy over smoking and health is political, aot scientific. Scientific issues in the medical field are settled by definitive biological experimentation, not by the passage of a resolution. There have been no exper- iments proving that cigarette smoking causes illness, and that is why activists in government agencies and scientific organizations have resorted to resolutions to establish their personal opinions. ~....~ ,.. _....,~ ~`"Sacto~oes not mean cause. ilhether any of these tion and.-weveral others as vell as amoking. But eally t rociated with many factors. These include occupation: geographical location, sex, urbani=a- ~ Don't all of the medical experts in the Dnited States agree that smoking causes lung cancer? As a matter of fact, stiaay scientists in the United b`tates hold the view that smoking has not been • scientifically established as a cause of lung cancer. They note that no one hovs the cause or causes of lnnq cancer. Vor does anyone know the aechanism or wechanisus.s whereby this disease develops. .i~,concede that smoking. is a prime suspect Yon't Myvu~.YJ as a cau.e •of lung cancer? '!•~.Y.T ... Scien4sts.,generally agree that lung cancer is a rultifserozial disease, i.e., it has been statisti- ` e~"-suspecfs~`#i3ays a role in. the causation of this diseaglt is'as yet unknovn. Q. Aren'tiwah~eie cancer-cansing agents in tobacco smoke? •Don't `a4ey, explain the association between smoking c and luriq cancer? A: tor aore than 20 years nov, cancer researchera have been trying to Sdentify ccxaponents in tobacco smoke that are harmful to huaan health. To date, however, they have not identified any Sngredient or group of ingredients, as found in tobacco smoke, that are disease-producing in humans. Q: Doesn't tobacco 'tar" produce cancer in animals? ' A: Contrary to popular belief, human smokers are not exposed to tzbsccfl maoiQe eflridensate - zor..=nly referred to as •tar." Tobacco "tar" is a laboratory product that is produced by passing tobacco smoke through a cold trap at an extrenely low temperature - a temperature that hu:aan smokers simply do not experience: Hence, the relevance of animal experi- ssents vith tobacco -tar" is.dubious. And it should be remea.5ered that, despite great efforts by many scientists, human-type lung cancers have not been produced in laboratory animals as a result of ex- posure to tobacco smoke. . ~a~~y~o~r nv~irie . 16. 18. 19.
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Hasn't lung cancer in women begun to increase aa they hsve begun to smoke core? Tbere has long bee aw3de gap between the incidence of lung cancer in males and females and this gap has not been satisfactorily explained in terms.of smoking. Ils to the recent reports of increased cancer in women, some scientists believe t.hat this disease has been increasing in women for many years, which is not consistent with a smoking-causation hypothesis. There are other considerations. !or exaa.,ple, the lung cancer increase reported in women is usually of a different type froca those reported as predominant in s+en and, in fact, 1s ' a type not qenerally considered associated with smoking. e Isn•t nicotine lrnovn to sause disease Sn humans? In 196t, after reviewing the then existing literature, the.Advisory Coma.ittee to the D.S. Surgeon General concluded that the small amount of nicotine absorbed by tobacco use •probably does not represent an important health hazard" to humans. Since 1964 there has been no scientific evidence which would warrant a chaa~qe,.:Sn this conclusion. L ri,~.aiacdE What abou~ heart disease? Isn.t It pretty vell establith ed that smoking causes this disease? Seart~ae:ase is a sultifa ctorial disease, i.e.,= ~one `~ich~as been statistically associated with ny fictors. So far, more than 20 factors have .:k~ ified. Factor does not m~ean cause. Ho een ~e ~ ~ one kiiais~ether any of the observed factors plays a rolk"in the causation of the disease. Recent studies o~ identical tarins suggest that a person's genetf"c'2aackground may be the most important factor. Otheristudies indicate that a person's personality type SsP --1t1" he prime factor. Wsat about people who are allergic to tobacco smoke? Bov can they protect ther_selves fron smoke in the atmosphere? Although many people talk about tobacco allergy, it has never been established that tobacco smoke allergy exists.•Scientists simply do not know whether or not tobacco smoke -- as opposed to tobacco leaf -- con- tains allergenic camponents. . V12^ets't t~igni'ettes *dditt iYe? A: It is difficult to discuss addiction today because people apply the term to many different circ=stances. Sca.e people say they are addicted to chocolate1 others say their ehildren are addicted to TV. The 1964 Surgeon General's report concluded that cigazettes 20. 21. 22. 23. 2<.,
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I should be ca.amsified. ass habituative, Ii_ke_Qpffee, and not a3dictive;, l~'ka, a~orphi~ne. Hany people have given up smokir,g. Why.• db soms people continue to ' smoke %ft say they want to quit? Why do people con- tinue to overeat when they say they are too fat? . Isn't sflftrsr cigarette advertising an lmproper busiress practice because it has a heavy impact an children and: haads, them. to- smoke?. Cigarette advertising is intended for adults only. Tor axanple, cigarette advertisements show no models sho are tander 2S years of age, no entertainment cele- brities and no atfiletes. Ci garette advertising can establish brarat ImiL1t,jE• -- and that is• its purpose -- but 2t dbes•t rot attract re~r. smokers. Vo• studies have shown that cigarette advertising causes children to smoke. Dr. Lrnest L. Wynder, president of 'The llmerican 8ealth loundation, said he did not believe cigarette advertising had raich influence on smoking. What e~estifaa:s rnsnr M&E!t timoa.zsvered by the 1964 Surgeon Ge n eraJ"' sy1: bpert?? Kany c'3ons were left unresolved. Why, for example, do noasea~i~e~` s fall victim to heart disease, lung cancer and otseases frequently associated with saokers? If, as somsrt.aati-smoking groups claim, cigarette smoking f'Su` the3ear cause of lung cancer, why is it that the r•~• PrYst i,joi3"~ty of the •heavy" smokers never develop the Opdiiease2.~y hasn't independent scientific research been able tq„dentify any one or combination of the thousands of caepow.oLr as found iu• cigarette smoke as the cause of any partic~u~Xar di'seas~el! lfbv 3a s+ore than forty years of researG"Sasn't anyone bersz a35Te to reproduce the type of lun Rcer associated; with smoking--through tobacco smoke ~S2=ation--in laboratory anix--als? Will the antL"v=a%Mxsg, woQSment succeed? The aati-amokirg aovement is actually proposing prohibition. According to Dr. Peter Bourne, Special Assistant to the President for Bealth Issues, such proposals are not realistic:. IRs remarksv ta~ the Ad Boc Committee on Tobacco and 8aoking Research of the American Cancer Society on ?bvezber 10, 1977, Dr. eourne said, •Because of the political, social and economic ramifications, it is un- zealistie for ess to suggest a Labacco prohibitioa is a feasible shott-tazm e,gal. acrd_ that campaign would bring into g?ues.t2srsu avcs a.tr cre`;MUt1. It is there that we are oa aaa ~; groandi- i6tle prohibiting use of cigarettes iir public places would please nonsmokers, it would not necessarily reduce overall cigarette con- sumption or reduce the health consequences. We have done little research on the hazards, if any, of other people's eigarettes." , ~ M.M~...,... ............ 25. 26. 27.
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: Qt What i_s the tobacco_ Lpdustry doing to helpsesolve the smoking and health controversy? As In the last 24 years the tobacco industry has provided more than $70 million for independent research regarding questions related to smokinq and health. Im many of these years this comaltment has exceeded that of any qevernment department, and has been substantially snore than the research expenditure reported by all the voluntary health associations, who spend a ma jor portion of their donated funds for administration and for piblic relations campaigns. The tobacco industry is co=itted to advancing scientific inquiry in this area. Q= A: Do th,e tobacco oompanies control the research.they sponsor? Absolutely notl The ecc.citnent of the tobacco aanufactur- ers to resolve the amoking and health controversy has never been fully appreciated. Crants are made with no strings attached except a pledge to apply the money to legititate scientific research. Each researcher is free to publish his study results, whatever they ssay be. Q. Does 1t e.her your conscience to sell cigarettes? A: Absolutely notl Zhe tobacco industry is a $15 billion industrj~affecting 17 million people. As far as the ~ healt2i'`qflestion is concerned, no valid research has eyer estallished that cigarette s3oking causes illness. :~ vezt~2~e, every pack of cigarettes carries a.rarning ~3hbel~es requized by law. A person would have to be ~' Q•cava`;;.Q:ezller' not to be aware of the warning. We live lad Work in a country which supporta the free entezpMz.system. It gives its citizens the freedom of cholo.:l We should continue to enjoy that freedom both in our business and in our personal lives. ~ ParaQraph Number 28._ 29. 3 0. Al.
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SHOxING AND HEALZ'H THE'OPEH QLJESTION I For many years, certain individuals and organizations have claimed that smoking causes a large nu=ber of diseases. Such claims are largely based on studies which have reported statistical associations between ssaoking and various diseases. 1. PF" , ' Bowever, such associations alone can never establish cause-and-effect relationships. The a+ost that such data can do is to indicate areas for further scientific research. Un- fortunately, scientific data that contradict the popularly- held belief that =oking causes disease are generally ignored or severely criticized without adequate justification. It has become easier to indict smoking as the sole source of our medical problems than to confront the data which shov an existing scientific controversy and the need for further well-defined objective research to establish the facts. The following discussion will highlight aome of the topics men- t.ioned abo ss~,,. A ~ fV, ~ SKOKING AND LUNG CANCER ~ The evideiire cited to implicate cigarette smoking as a caus of 1~~ ncer has been provided primarily by statistical stuifcs, sur.h as the Hammond and Horn survey of white American men~'i.nine,~s_L?stes. However, such studies have been seriously questioned~ Pai example, in 1958, Dr. Joseph Berkson of Kayo Clinic obscrvia'd, that 'Cancer is a biologic, not a statistical, problem.• JLzz&O' recently, a British physician noted that 'the cause of eance„~r of the 2ung is not known. We have only sta- tistical ia~rse~ces and forecasts.... Until it is discovered no one +ehois'h":"es scientific evidence should assume that ciga- rettes cause cancer of the lung.' In 1977, a South African physician who reviewed some of the original statistical studies which are used to support the claim of a causal relationship discovered errors in the analy- seo of the data. As a result of these discoveries and other observations, he concluded that 'The rsoking hypothesis has received ecsphasis which it really does not deserve.' He added that •This hypothesis has to be abandoned.' , One of the smost pestjnent Sact.s to be kept in mind when claims about saoking an d lung cancer are considered is that some reported atatistieal data are not consistent with the causal hypothesis. tbr es.ample, researchers have reported large variations In lung cancer mertality rates in a nuaber of countries which cannot be explained by differences in • 2. 3. 4. 5. 6.
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tobacco consn:ption. Jlustria, eelQiua and Tinland report hiyher -luag. caascer rates_ ~t eonsiderably ~lover__per eapita tobacco consustption than the United States, Canada and hustralia. Iau~g cancer s~ortality rates asay not bt ~ reliable because they are based on the often inaccvrate information regarding eause of death as sho~rn on deatb certificates. ~is conclu- sion is supported by, the finding of zesearchers .rho coc~~ared eliaiciaas• ~osea of' Suaq. eancez vith autopsy results and foztnd• seribus~ di-screparctes. ~ch errors ssay have zesulted Sa part froa the cliniciaris' •difficvlties in deter-~ mining .rhether a eancer originated in the lung or had spread to the lemg from another site. ~e reported increase in lung eancer, said to~ be of 'epidea.ic• proportions, ssay be greatly overestimated. Lxperts have svggested that the reported increase may be an artifact ereated largely by ia~roved diagnostic techniques. The recent intense interest in lung cas~cer may also have zcsulte.d im a~. oa+~az-at= ~+s oS tlse disease. •ii,l.:a Ari.: t nc-+erimc=t'm iltr. viiidt 2aborstorg anirals are forced to inhale tobazc~~`~"-tisaoke have failed to prove the hypothesis that smoking eaa~et,r~ung cancer. Not only has the relevance of such experis~e`at~ been.questioned, these .techniques have ~ failed to ~od~e in aniaals any lung tu©ors vhich are Df the ~,t~r~e as,socf~axed' ~rith~ hcsran s~oking. , ~ o ab of the interest in the eausation theory vas gener- +~ !f e~»r~iK ated by ski=i-palntin9 experiments in vhich tu~ora v~ere pro- duced bp pa~aLing 'tar' .(a laboratory prod~ct obtained by passi»g tobaccaisnsok~ throsgh a cold trap at ex~tremely lov te~aperature~asi` r3tm s~aaed bad~s of animals. Bowever, theae ezperiaaeats.~s;l~;~inapproprfate for co~arison to the inhala- tion process.~~husaans, for several reasons. The skin of an ania,al is. acit at• all sisatl'ar to hussan lung tissue. ~rther- s~ore, tbe ~~r!~1'~+*' os a substaace to the skin is quite d.if ferent from inhalation. tinally, there is ao `tar' as such ia tobacco smoke, and even if there vere, the quantities used in such euperiaents are unrealistic. Za ar effort to detersaine vhy sooe people develop lung eancer i~hile others do not, a num2>er of scientists are study- :~ ing the 'constitutional hypothesis.• This hypothesis states that some people vho have a hereditary predisposition for 1unq caaces also bave a beredSt.ary tendency tovards s~oking. Zt is supportad: 2l~~ zmserarch vhich sho~rs: that s~okers differ from non-smoi~ez~s ~er. suxzg physiologieal and psychological , 7. 8. 9. 10. 11. eharact~eristics. - Occvpational and environmental factors, such as air ~ N m 12. pollution, have also been found to be associated vith lung m ~ cancer. Odncern has been expressed that the concerted effort ~ ~ ~ 0 m 0 N a m N C~ O P ~
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• Y.-r...,... ...~..w. to prove that sa+oking 3s the primary cause of this disease may be divertiM attention f.W such factors. - Any serious discussion of the elaims linking smoking and lung cancer sust include consideration of the folloving two facts: l. Lung cancer was an established disease long before cigarette usage becaae popular. 2. lbst saokers do not develop lung cancer, while ssany non-smokers do. SMOKSNG AND CORD?IARY HEART DISEASE (C8D) In efforts to determine the cause of coronary heart disease, researchers have examined a variety of behavioral, physiological and environmental factors which have been associated with ars increased risk of this disease. Cigarette smoking is considered by some to be one of these so-called ' a •risk faetors.• For exa~e~ the 1976 Public Health Service Report on +` The Health C`nnhequeuees of Smoking describes smoking as 'one of the aajo~ 3ta~tpendent CiiD risk factors.' However, avail- able data do~„~o~ provide consistent support for the identifi- ~# ~cation of s~oki~ as a risk factor. For example, an iriter- natioaa~ stndy.,c„,by xeys found •little or no• relationship betv~~4 ciga eife smoking and coronary heart disease in Fialtp¢,j tA ~~eiherlands, Yugoslavia, Italy, Greece and Japan. Furthermore several studies cited to support the role of smoking in velopment of coronary heart disease contain data inconsisteat with this claim. Zn one such study, coronary her L disease s+ortality rates actually were lower in ex-smoke ';s.,0ian in nonsmokers. ozhmg Reseazch also have studied a number of other factors which appear to be associated with an increased prevalence of this disease. For axaaple, some scientists have observed specific behavior patterns that appear to be associated with an.iacreased prevalence of CKD. This coronary-prone behavior pattern, called Type A, is characterized by such traits as aggressiveness, ambitiousness, time consciousness, and a chronic sense of urgency. Other scientists have concluded that ,~,..n .. ,,;,;'there is a strong genetic corponent in the development of CHD. Studies of twins and familial coronary heart disease patterns Aeve pro.ided scp~ort foz this theory. ~ 2'!ie stresses normally encountered in daily life also have been positively associated with coronary heart disease. Re- searchers have found that severe financial problems, occupa- tional tensions, and life-style changes have produced physio- logical alterations which may lead to eoronary* lesions. One 13. 14. 15. 16. 17. v 0 0 a m N 0 v
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: investigator, who studied the mortality statistics of 100,000 physicians %&o reportedly had quit smokirq, eamsaented e -- It In evident that there has been no increase in the average age• of death among physicians during the past 15 years. ... Xhile it is possible that the full results of this abstinence (not smokiag) have not yet been seen,.the resolution of u4derlyinq, stress rather than smoking per se arny be the crucial Sactor. ...?bese findings are consistent with the apparent predisposition of doctors to coronary heart disease, a vulner- ability vhich. can be attributed to the stresses in their way of li f e. ?herefore„ tsrlc ibdictment of cigarette s=oking as a ma jor risk factor ia caronary heart disease mrtality is contra- dictory ta s=h acieat1:E3s= fact. . CSRONIC OBSTRUCTIYE PZJt2iOHARY DISEASE (COPD) 04 Cla3ss'~aPir~ t3een• amd'e that cigarette smoking causes COPD, a tera vhicJrze,f'ers prir~arily to chronic bronchitis and pulmonary e,'".5caa. Such a elaim was r.ade in the aost recent ,;report oa s~1rf*f by the Royal College of Physicians of London ~ " ll9 H1Lh eas4 4-e ,Aq_ozea.. 0 r ~iioveve~ ese clairs are contradicted by statecents of scientists ~governmental officials who note that the cause or causes ai-saeae chronic lung diseases are still uaknown. For exesnple~a s' erial report supplied by the Department of sealth, Z&=it:!1:m esstd M`" re for use during consideration of Its 1979 ~"'==*+unz+ ifsdscates that 'the exact cause of e=physema 4;' < knovn . . . .` bVch ststeoents; are. supported by an ex.amSnation of ciqa- rette cansuspti=. natlar.nw• vhich exhibit no consistent rela- tionship vdt#s t3aW' iimishessze rates and aortality trtnds. This is illustratssY 2tBthe fact that individuals who have never smoked de.etag =PD but:sLany smokers do not. lbreover, large ; international variations in COPD mortality rates cannot be ex- plained plained bs levels of tobacco use. .~ ~ Certaia animal inhalation studies have been cited as proof that smoking causes COP,D. However, serious questions have been raf--1F about the• adequacy of the experiaental tech- niques enplozed! assd3 ti'!ee asTevance of the results to nan. llor example, assza.rss st=r.1ftrzr differences identified In the respiratory systems of sammals mey co~lieate the axtrapo- lation of aaimal test results to the h=an situation. Some researchers who have examined the reported in- crease of LUPD in cigarette smokers speculate that it may be le. 19. 20. 21. 22. Ln ~ m m 23 e ~ . C 00 C Ln m A~b C n 0 0 01
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Paragraph Numb ". I the result of basic psychological andlor physiological differences between smolmra and nonsmokers. -"For exas~ple, even when sooking habits are sia.ilar, blacks seen to have a 2over incidenee of chronic bronchitis and eaphyseima than whi tes. Occupatfbnal exp.osures may also play an iaportant role in the development of OOPD. A scientist Samiliar with occupa- tional exposures recently wrote that the available evidence does aot support elaims that smoking is the sajor hazard to vorkers• Iungsr he concluded, •. .. it•s their 3obs• vhYch seem. to cause their illness.• In recent years, ambient air pollution has received increasing attention as a aajor cause of GbPD. Lave and Seskin have coue2uded: t3iat •a+ortality froea bronchitis vould be re- . duced b: about SIIac. if air pollution were lowered to levels curre :1y preRa3T.iiig in. urban areas with relatively clean air.• They contiswrr The studies document a strong relationship between all respiratory disease and air pollution. It sess~~, t3sat 254 of all morbid.ity and mortality ~e tb'"respiratory disease could be saved by a 50% abate~l,~~,~n air pollution levels. . ~ TAerefore,iclaias that saoking causes COPD must be seriously eonsidered•in light of this evidence. . . ~.....~.~..~ S!!ou Nc AND PREGHIW CY Cle.tms b~. 2faezr rserde that smokinq daring pregnancy causes adversc eftects, in particular that smokers are more likely to As4t- ow-birth-weight (S.BW) infants. Soae claias have even 5e, sa, s.ade that =oking increases the risk of con- genital stialfosaation and perinatal aortality. 8ovever, these claims ara bssedA on. statistical data which are at best equivo- cal and, r eamrsot prove causal relationships. xoreover, t2iere aa,e data which are inconsistent with certain of these claias.. Lov-eirth-Weiaht Infants. A biostatistician who examined and was unable to accept the causal hypothesis contended that the data he studied mdy suggest the existence of soee other comaon factor which causes waen both to s3oke and to have a bigher gc~portlon of LBW. infaats. Yerushai=y.advsrced this theorl• in a 2"SZT•ld report d:acribinq data which, he later said, •almort e2tuciL the arg;=eat against causation:' x This conclusfon follows froa the finding that vomen who eventually became smokers prodviced a large proportion of low birth weight infants even before they started to s=oke. ... 2a. 25e 26. 27. 28. tN Ok O • V
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zo explain these findings, Yerushalmy speculated that the higher incidence of LBW infants among smoking_wmen my be due to the amoker; rather thk!'J the sezoking. 7erushalmy's finding are supported by the results of 29. other research projects, including two studies Sn which the researchers concluded that smoking apparently does not cause LBii but may serve as •an indicator' or •an index' of some other factor or factors that may be involved. • The need for further research oa the relationship 0. between maternal smoking and LSW was recognized by Silverman in a report on her study which had been designed to determine whether smoking causes LBK, or whether smokers are •a self- selected group that differs from nonsmokers in ways unrelated r to saokiag. ...' Although she wrote that her findings were ~ Aot ooac2usive, she observed that ~e direction of the observed ~- differences in mean birth w+eights Ss s+ore consistent with the self-selection hypothesis.' that s$+okert v4.~ infants appear to be healthier than non- ) the causal or sejf-selection hypotheses, several have shown Although these studies have failed to disprove either ''+ smokers'.Vl:zktt4~almy, for exaaple, noted that LBW Snfants of ' smokers 'ar•aurh healthier' than those of the nonsmokers and T that the 'heat.t~.est' •low-weight babies were born to couples . ~:~:~ ~:: 1 in which tAf wife smoked and the husband d3d not. a "In rea~"'F~I""lterinatal tiortalitv. Scientific evidence does nots s.u,p_port e~ a at materna smo ing z ng preqnanty is caucally ~a~'"~"s o iated with Sncreased perinatal mortality. Several lar~e studies, including those by Yerushalay, Dndervood, fie O~Lazio Perinatal lfortalSLy Study CosrSttee, Rantaka22ioargett have foaad no 3nerease in the peri- ,~ natal moztalit :.:.rate of infants of smoking nothers. As the ~'~;:'~t ~' National llcade~y; of Sciences Committee on lsaternal Nutrition ~. concluded in~197fl, '. .. s=oking is not significantly ~: associated with excess fetal or neonatal mortality. ...' ~:. Coraenital Malformation. s+e~reral large-scale population ~ studies also have failed to establtsh a relationship between ~~ smoking a~d congenital malfoa.atioa. Zn a study of S1,<90 pregnancies, for exaaple, the Wrsmission tound ` no evi- ntario Perinatal Mortalit Stud O y ~ y ~`I „"'~ i dence that smokirg was associated with a higher ncidence Vi r.ongeiiii.ai iaii1Sma iii7iii.' ilTt+ r~7~Y jnd S7.7i7g$wort•• both reported that their studies aboared that the risk of congenital malfonsation in LBV infants was lower for smoking than for nonsmoking mothers. • The available scientific evidence does not warrant the e-onclusion that a•cansal relationship between smoking, IZW, increased perinatal mortality and congenital milformation has been proven. 31. 32. 33. 34. cn N rn m N CO Ln 5. m 4 m a
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t ~ cZG?~RE'rrL e'l~u 'OOrsPOxa.z s xazs ~ flcspite aueh repst~tion of•the claim that_certain sub- stances in tobacco smoke are haresful to the smoker, it has not been scientifically proven that any co~onent or eocnbination of eacponeats as found_in tobacco smoke causes disease. These claims, which focus primarily on •tar,• nicotine and carbon s+onoxide (CO), have led to proposals for estab- lishis~g saxiaum levels of such substances Sn tobacco smoke. Such a recosaendation currently is being considered by the Departaent of Health, Lducation and Welfare as part of a major anti-s=oking'initiative launched by Secretary Joseph Califano. The follotiring discussion describes some of the Saade- qaacies of the scientific evidence for the elaimed health effects of tl.eas three substances. `Tar.' There is no 'tar• as such in cigarette smoke. The substance called •tar• is actually a laboratory prodvct obtained by collecting the particulate matter in tobacco ~ ~~ smoke. Th~;iaardly si~ulates what humans are exposed to s....,:.,.r1 in the snol2w~~~rocess. That is why quotation marks are often nsed ~o'ix~d the word •tar' when referring to tobacco smoke. ; 36. 37, 38. 39. ~?ar' is ~t saoke. There is no good reason to a~ssume 40. a~ny that~,a~ nyny bWT-t&W#ca1 activity of whole sroke can be accurately ~~ dett minedrby studying 'tar.' The checsical and physical ~; ~..;. ~~ . eharget s neceasarily brought about in condensing the smoke ,.. ~ ' %~ ~ ~ ,.the substance to aniaals may well produce and applyia _q biological zesats completely different from any that may ocors dlsrisig"""~ai~oke inbalation. ~ Xicot~ Nicotine has historically received as =ch 41. experimental attention as 'tar.' However, nicotine, in the ~ amounts found in tobacco smoke, bas not been scientifically establisbed as hazard,ous to smokers. Fven the 1964 Report to the Surgeon General on mmoking and Health concluded that nicotine as found in tobacco smoke 'probably does not repre- sent a significant health problem.• After thirteen years of Sntensive research, no data have been developed'.rhich would warrant a change in that conclusion. lticotine has no known chronic or cumulative effects. It is rapidly absorbed and metabolized by the human body into other simplez cubstanoes which exhibit no e.stablished hamful pbarmacologieal activity. According to the 1964 Report to the Snrgeoo General, 'Nicotine is rapidly changed in the body to relat3ve2: inactive substances with low toxicity." Despite these stat:ments, sooe smoking opF.onents have claimed that nicotine causes cardiovascular disease. However, 42. cn F- m m ~ 43. CO Ln m
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s : this elaia was clearly contradicted in testimony by a qovern- sent witrtsss at the 197"earisgs on eiqarette-smoking and ' disease. Dr. Theodore Cooper, t2~en Assistant Secretary for H.ealth,, aepa'rtment. oZ Wealth, Lducation and Welfare, indicated that hc coasi-dered'smokinq a risk factor for cardiovascular disease, but not a eauses . Senator Nart: ...I would merely ask if cigarette smoking causes heart diseaseT . nz. oseR=u Moaft 8enator Bart: It does not? D3. Ooopers No. ~arbasr t~oa~'ds-, This.tisteless, odorless gas is pre- sent iW. tni- smaiie„ 3tst it is also present in the air we breatbe.. me• predominatt sian-made sources include the exhaust fufles of automobiles and ec.issions from industrial processes. Furthermore, carbon monoxide is a natural body constituent created by normal metabolica. is ai~y~L z" and nicotine, the experimental evidence regazdsnq•~ Ama2t3 effects of CO, as found in cigarette smoke•, is at bscst inconsistent.. Studies of humans who are coasistentl M."sed to. low doses of CO have reported:no incresae incidenze of heart attack or circulatory abanzmaTities:I ~~ 1 ~ossmbecause ex ezimente with humans have failed t e y p o prove theisw•tlaisya, anti-rmokinq advocates have emphasized the resuld'of animal experiments by certain researchers. Yet vhea• amfaa ta.tioa is exaa~ined as a whole, it also fa£1Ds !em crear-Asteat results on the effects of CO expocurr. Aiq~vs~.er,. the recent research findings of one of the sci~ent3s.~~requently cited as having demonstrated a link betreea cas`''aa aeonoxi'de• and heart diseaae did not confirm the co:rcTimE*m -H-t* t3be effects~ of carbon monoxide drawn in his earlier I bvch. evidence indicates that the claims made about the health effects of certain constituents of tobacco s:aoke on the sozoker are just that--claims which ase not established by scientific proof. , RESEARam S3* " "+c ez:=itment of the tobacco industry is cleat.. lor ae-arij•~ 25 i ears the cigarette manufacturers have been supporting totally Sndependent reeearch with eocr,pletely non-restrictive funding. The results--whatever they are--may be published wherever the researcher chooses. Paragraph Nurnbe , ,, . ~ . . .. : 44. !S. <6. 47. cn 413. ~ a, m ,
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Parapraph Number { Bundreds of researchers in medical achools, hospit.als and other acientitic instritutions tn this count-ry and abroad have received more than $70 million from the tobacco industry to support their investigations. The findings of scientific studies funded in whole or part by the cigarette companies eomprise more than 2,000 papers published in the world's professional literature. The Cbuncil• for Tobacco Research - U.S.A., Znc., an iad~ats:y-~redt:.ge~cy, has the ma jor responsibility for tbe evaluation• and funding of research proposals. Aesearch support has been ymplemented mainly through a program of qrants-in-ald, supplemented by contracts for research vith institutions and laboratories. The Wuncil does not operate Z'cm positior:o=' the. tobacco industry is that the ques- tSoa,s ra-ibed'• */the am+v3cing and health controversy can be resolved only By soundt scientific research. •9. 50. ' 520 52.
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, Pe 1, -0yl yk4-7 * 40A CONFiDENTTAL - ,yOTIYZS PiD IYCz,.`I; :'1:S :.'i C: '' , ''.they showed a surprising and exemplary willingness to appiy human .. .. .. • . ~ - . . .... . . .. ~, land. Rather than fight it out as was their wont in those days . , . '•r . . ..,' . ail l iam L. Ounn, Jr. Philip Morris Res h C t PLAINTIFF S EXHIBIT -- Ricttmond; '/ irginia • . There Is a lovely little isiand lying about 150 miles east ... .. ;,. • . . • . •. ,.,. . . -_: .. of the Virgin islands. It is at the northern end of the Antilles, , • ~ . . . "'.. ". ' . • that string of Islands flung out crescent-like across the blue ' ~ - . . .. .,__•, . • .. . .. . . ., .. •.... Caribbean waters. Legend has it that in the 16th century, both th4 Dutch and the French lay claim to possession of this tiny body of - reason. A Frenchman and a Dutchman were placed back to back on the beach and told to walk along the beach until they met again on ~ttfe opposite side. They did so, and a line was drawn between the "~'`' 'points of start and finish, dividing the island into the French ..::.half called St.',Mirtin, and the Dutch half called San Marteen. •.. ' It seems that the Frenchman walked faster than the Dutchman, l . because the French got the bigger ha f. Some say this was because .ttfe Frenchman.was drinking French champagne and the Dutchman was o drinking Outch whiskey. 'tortever true all this may be, the two colonies continue to live peacefully under these 16th century ter-v a) . _, . . Ul ~. .f••.~. r. .~ ...~.'• ..+•~::+.. .. 1• •• .... .... ~ ast\r.• .. : i. A- A6JWd
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.2 it- - In W, anuary, 1372, ~`:e % __h sof S:. by an unlikely par:y of :uen:y.f:-,e sc`_1:`,s:s. Ther• ..ere •.n,ar-a- cotogists, sociolc3is:s, an:.hr:roioYis:; and a arepon~er3n_: o• psycholo'gists. They came from Ca^ada and tMe Jni:ad S:a:a: ,. , . . •Each brought with him a care`:lly prepared scientific paper wnici represented his best efforts at attacking the question 1'S1hy do people smoke cigarettes?" :. - T- .. • Inspired by the rare 16th centiry display of human reason shown by the French and Cutch colonists, and while not sunning r the beach, they listened to and reflected upon each other's ideas. You've heard many explanations for cigarette smoking. These ,• . . . . . . .,. • were reviewed at the St. Martin conference. I think it appropriate 1. that we list the more commonly proposed explanations '-'1) For social acceptance or ego-enhancement 2) For pleasure of the senses (taste, smell) here: . 3) For oral gratification in the psychoanalytic sense ! on ;- , 4) A psychmotor habit for the release of body tension 5) For the pharmacological effect of smoke constituents. . . , I might mention one other explanation, not becausi anybody .;.. .: believes it but as an example of how distorted one's reasoning can become when under the influence of psychoanalytic theory. . ..:.,.. . . ,.Smoking according to this argument, is the consequence of pulmonary eroticism. Translated, this means the lungs have become sexualized and s.moking is but another form of the sexual act. Y•... Un F'.a ~ • . .. ..L:~.~~i1~ ..Y~1. :. .. . . • . .. . . • •.. . .~. ~ • I • .. ' ~b. •. , •..•.- ~ '. •I•~i . '..r . . • .. ..i... { • . -... . .r , a1 • • :' . . ~ . . ~ .. ..•C. ~ U'I • •:« .l.` . . •'• .ri..' ~ ~. .. .. ~ ... .. , ` • .. ... .. ... ^.. .I.. , .~ ....7~•~~-~ . . • . ~~. i • -,. ~~ . .... . . . ..,.ri •. •. ..«.•. "\ F-'
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'-'1r,L.•c:v riALL ~:~.:~. _ . . .. . . . , . '~ jf one asks the smo~er hi-s_? f ahy he s,:.kes ,~e t s likely to say "I:s a habit•" If he is in:elTi;en: :..:;;;,,, :te "' , .. inight be nore to the point and say e!:::er oz e of tao t h s n or timuTa:es ~ne w s,. ow we are already deep , ~;~' "It relaxes me'' a d n " `~ w into our topic• The polarity of these~tNO observations has plagued~ . . . ., ,.;. . .. . .._. . . . , investigators for fifty years. The challenge to any theory as •3 "' i i ~ i i i i i i i i i _~... .': The St. Martin conference was called by the Council for , . _ - ..,. .. . .. . , ,. . . . . , • Tobacco Research, U.S.A., in an effort to goad the scientific• ~ community Into having another go at the problem. And co at t.t• .:. ;~ .. • , ... . . •.. . .:•~•~ . . : they did. Much of what follows in this presentation comes from • ' .... • ••• • ~ - . . ... .. , , . .. . that St. yarti n conference Most of the conferees would agree with this proposition: The primary incentive to cigarette smoking is the immediate salutory • effect of inhaled smoke upon body function. This is not to suggest that this effect is,the only~incentive. Cigarette smoking isfso incentives should become opirative. The conference summarizer,*' : Prof. Seymour~Ksty of Harvard,~ used eating as an analogy. Eiabora:e behavioral rituals, taste preferences, and social Institutions ., • have been built around the elemental act of eating, to such an ~ It would be difficult for any of us to imagine the fate of .' ~ extent that we find pleasure in eating even when not hungry.~ • _ ,; . , . . . , . . .. . . .. • . . , . . .. •. . •; _ .. . . . 1:~t; . ~.:. . ~ . ••~,• ...•.. ..•• . . • ~ . ~ . eating, were there notever any nutritive gain involved. It would C . ~ Q/i `, ..•.~,•.~... •. ' :.. . . • ~ . .! :' ...~ .~ :;:,.,.'~ .•• •~f .i.~. ~•~ • ~~ :.~!Vr.«3 a21? r ~.Lf~i1~Ia`ILA 0,J ' .Ydaw1~+rw.Iji. why people smoke iies in thetheory's abllity to resolve tyis • . _ .. , . . paradoxical duality of effect. ". , •=.. pervasive of life style that tt is inevitable that other secondary _ ~ ~ ~ .f•: r
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e be evel 1) No one has ever become a cigarstte smoker by smoking , orgasm. I d rata er no. a o4 , z,. As with eat`ng and corula:ing, so i t'is wi ::: s-nck~n;. physiological effect serves as the arimary incentive; all o:her incentives are secondary. would go even further and ac::z: cigarettes without nicotine. 2) Most if the physiological responses to tnhaled s+nokee have been shown to be nicotine-related. 3) Oespite many low nicotine brand entries i•nto the :aarket- vore arovocat'.ve :o s;ecj'a:e abcu: :he !a:e of sax place, none of them have captured a substantial segment of the market. In fact, critics of the industry would , do we11 to reflect upon the indifference of the consumer to the industry's efforts to sell low-delivery brands.* • .. _, ... .. ...M-,,., . 94% of the cfgarettes sold irI the U.S. deliver more than 1 mg. of nicotine. 98.5: deliver more than .9 mg. The ' .. 4 _ . . ... physiological response to nicotine can•readily be elicited by cigarettes delivering tn the range of 1 mg. of nicoti.^.e. I hope our English friends who are developing the synt`:etiC the proaosition that nicotine is the active consttt;,ent of cigare::3 - scnoke. Without nicztine, the ar;ument goes, there would be no smoking. Some strong evidence can be marshalled to support this . argument: nicotzneless cigarette are not going to be too disturbed by a11 this. ., :1. (S) rL. . .I ... , . ., • .. • 00 I I I I I I I ~e.......r. .Ji.....w.. . ..{+rtdl...r. •... Ul (.~)
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. , -.. the inqertuity of man. Let re explain my conviction. _. The cigarette should be conceived not as a prod:ic: but as a ly of eaten, sucked, drlnk, fn;ec:ed, fiser:ed or ti;a'od as 3 aerosol? The answer, and I feei qui:e s:r:rt;'y a:ou:' :Z's, is the cfgaret:e is in fact amona the most awe-insafring examoles of 1 ~ ~ ~ ~ ~ I ~ ~ ~ package. The product is nicotine. The cigarette is but one of ' many package layers. There is the carton, which contains the aack, which contains the cigarette, which contains the sroke. The sroke final package. is the . , The smoker must strip off all these package Why then is there not a rartie: for ni_o:f,e ;er se, layers to get to that which he seeks. . . . ry:._ .. . :.~r „ .. of trial and error designing has brought in the way of nicotine packaging: 8ut consider for a moment what 200 years Think of the cigarette pack as su Dispensing is unobtrusive . . • . ... :~. a .. . .. ;:r.. •: - ~:..• .+~:. .: ..,.• • . to most ongoing behavior. . • • . . _ .. _ ... .. . .. . ~. • • . . . • • ~,. -.. :,-- . :.: • r.. - . .. . . .. .r..~.,..rb nicotine: :> be .:.;,'~.. a storage container for a day's l)~ It is unobtrusively portable. _ Its contents are instantly accessi5le. dose . ::..:;. .... uni t of ~ " 1) It is readily prepped for dispensing nicotine - ~..•...:.:• 2) Its rate of combustion meters the dispensing rate, setting .• . ,...• •• . • .•~~..:. :" 'in upper safe limit for a substance that can be toxic in •" large doses. - . . • .; . m N w cn F-~ iP .. < <
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i 1) Think of a auff Of s.-oKe as t~e van'_' : nicotine and the cigarette the most opt'mized dispenser of smoke. A convenient 35 cc a::r:x~-a::'! -.: right amcunt of nico:ine• Ttie smoKer has wide 1ati:ude in 'lr:.~er :31ibr3tion: puff volume, puff interVal , depth and dur3tton of in- halation. We have recorded wide variability in in:3ke among smokers. Among a griup of aack-a-day srokers, s:..-e wi11 take In less than the average half-pack smokar, some will take in more than the average two-pack-a-day smoker. Highly absor5a51e: 97: nicotine retention. -I - 4) Rapid transfer: nicotine delivered to blood •' 1 to 3 minutes. 5) Non-noxious administration Smoke Is beyond question the rost o;,timized vehicle of Lest anyone be made unduly apprehensive about this drug-like c conceptlalization of the ctgarette, let me hasten to point out that there are many other vehicles of sought-after agents which dispense in dose units: wine is the vehicle and dispenser of stream in .-a alcohol, tea and coffee are the vehicles and dispensers of c:ffei,e matches dispense dose units of heat, and money is the storage . container, vehicle and dose-dispenser of many things. So much for extolling the virtues .; . us go ack now s and pick up our discussion of the motivational aspects of moking. If we accept the premise -, -, seeks, we've still not answered 'ae've merely refor-rula:ed i t to . • .. - t`:at of the rod. Let nicotine is what the smoier t~e ~ues:t~n "Why do people Smok° " read "Why does the snioker take . .~. ' 51601 8515 ,
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r ~ ~ r -7- nicotine into his sys:en?" Systematic resear:h on t`e qu es :' cn da:=s Sac:< s:,e ..,:1 years to the time when a,eri can T cb3cco Co.• f~nded :;e 4or'< :f 3 psychologist later :o become the most prominent American asycioic;`•s . . .. • . • .. . : of his time. His name was Clark L. Hull. His question then was "'dherein lies the charm of tobacco for those acclstomed to tts use?" , . . . INOI'lI,3UAL TRAITS ANO GROUP CHaRACTER:STICS 3Y  7 ~ ~ WHICH A GROUP OF SMOKERS CAN 3E OISTIVGUISHEO FROM A GROUP OF !IONSMOK"cRS _ In order to review the data that has been coliec:ed over these intervening fifty years, I have or;anized it under headings: 1) Oiffere.lces Se*.Neen smokers and nonsmoker:• 2) Human physiological responses to inhaled smoke. three 3) Situational variables related to smoking behavior. review what is known about the differences between smokers and nonsmokers. First, then, let us quickly PERSONALITY TRAITS TABLE 1 More independent (Pflaum, 1965) Greater anti-social tendencies (Smith, 1970) More active, enerye*.ic (Schubert, 1959; Straits, 1965) Higher mean extroversion rating (Smith, 1970) •"Haopy-go-lucky" (Smith, 1969) . .;: : ~ ' 'Htgher mean measure of "orat i ty" (Smi ,h, 1970) cn ~ m ~ co Ln F-~ Q1
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-a Poorsr -ien :a 1 rtea 1:h ( 5-ti :ti , 197: ) CCN~p_tj--~r Less re31d, less orderiy, -more s'•/e !S-7i:~: , 137;f Greater reliance on "ex:ernal" ;hd~ ';,j;er!j31~ :~n;r:3;s yore chance-oriented (Strai:s, 1353) . ,More emotional (Smith, 1967) Less agreeable (Smith, 1969) . ;• •Type A" personality (More tire-conscious, campeti:'..,e, e Less 'strength of c4aracter" (Smith, 1969) (Rose nman„1966 ) Higher anxiety level (Walker, 1969;.Sroie, 1963; Thomas, 196a) 'LIf_ STYLS CHARAC: _1:S"CS More business-oriented in occupation (Seltzer, 1964) Poorer academic performance (Yeidman and 8own, 1969; Pumroy, More users of alcohol (Higgins, K,;slsberg 1967; Salber, 1962) . . . ,More users of coffee and tea (Lilienfeld,* 1959) Me.tzner, 1967; Lilienfeld, 1969) . • ' •~ ' ' Religious service attendance less frequent (Cattell, and Schrest 1963) Straits , „ ' ~ : ,... . . ... • . . ... "-'`.''Proportionately higher-frequency of marriages and . ,;. (L1lienfeld, 1959) Ic..., ?.~ ~:. . . .:.~ . . j3b changes Higher Incidence of prior hospitalizations (Lilienfeld, 1959) Higher incidence of smoking among parents (Salber and Abelin, 1967) ; .~ More active participation in sports (Lilienfeld, 1959 Ln .i , ~ r More auto accidents (Ianni and 3oek, 135d) ~ m : ~ t • 4 •;. ... ~ `.• . ~ I. .. • ' . . . . .. ~ ' . ~ . .. ,` ~• ~. • . .. ,. . . . . . .: ~~• 1967 ; W Ln ~..~ . r
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. y0RPH0LGGiCAL T;ai:S Greater body weight (Selt:er, 1953) r 1 Greater height (Seltzer, 1963; 3aer,'1356) : Thinner (Higgins and Kjelsberg, 1967) Higher height/(cube root of weight) ratio (Oamon, Thinner skin folds (triceps and subscapular) Kjelsberg, i967) ': (Higgins and 0Ew0GPa?ytC CHaRaC-_RiS7tCS More men (?ublic Health Service Publication No. 1000, 1970) . . .: •. Proportionately more 25-45 year-olds (Public Health ServiC! . : Publication No. 1000, 1970) Lower mean socio-economic class (Salber and , Mac!iahon, 1961) Proportionately fewer college men (Higgins, Kjelsberg, 3 Metzner, 1967; Lilianfeid, 1959) . More urban res,idents (Higgins, Kjelsberg, & Metzner, 1967) ' Many of these characteristics have little meaning without considerably greater explanation than is appropriate for this presentation. Suffice it to say that the 1 ist does stMmariZe our state of knowledge on the smoker-nonsmoker differences. As for 7 ~ ~ ~ the relevance of this knowledge to the question of motivation in smoking, I would say that It ts a rich source of hypotheses and hunches, but unfortunately, that Is about as far as it can take us. And I regret to say that the major effort of psychologists has " been to search for these differences. Hull warned us fifty years ago tha t the di fference approach was a pri•mrose path, but only .:.... ... recentl~ have psychaiogists begun to appreciate Hull's warntng. . . • . . • . ~.. '. ' . •. . . .. , . . . _ .~.~ _ _j..-.: '~ 51601 8518
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The phar-tactl:9's:s ind r:1f5!a:=74 S:S `aYe !"'^^• -•1~Z w ...e„ • - _ •- which leads us to the second boCf of 'act; :^e nu.nan response to snoke. The tist in TaSia 2 a;a;n is a s~:n"Iary t~ ~1- knowiedge. To be sure there are,ot~er res~onses, so.-:e of Nhich have been noted in the literature, some likely yet to be discovered but those listed have been reported by at least two non-related laboratories. TA3LE 2 TRA;1S,'c:IT DHYSIOLOGiC.1L RES?OVS'eS TO SMOKE IYHALAT/ON 1. Elevated heart rate 2. Elevated coronary flow 3. Elevated blood sugar level 4. Lowered cutaneous temperature in the extremities '.. 5. Increased blood flow in skeletal :nuscutature 6. A reactive release of adrenalin 7. Alterations in electrical potential patterns of the brain involving alpha wave suppression „ .•. ,.. . _ . .....•._ . . ...... . . . _ . .. . 8. Inhibition of patellar reflex Where these responses have been platted over time, they have - been observed to have their onset within several minutes of smoke inhalation, and they are short-lived, having a decay function ai :h a half-life of about thirty minutas. Onset and decay roughly - parallel the coincident plotting of nicotine in the bioods.trsan. (Isaacs b Rand, 1972) .r: .-.. ~ 51601 8519 . ,,, .... .. .. .;. , . . . .~ r~.. • , 11
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These facts are co"IS4l:er3:iJ ;tore r!ievan: :o •~e -,c•'e3:::1 question than are the fac:s about smoker-nonsmoker ji«erences• In psychology, Nhen we talk about nativa:lcn we refer to afor-e whic:~ impels one to act, and _he action• is goat-oriented• 'yung.r; for example, ~is a motive which impels one to the action of ingestinf 1 ~ ~ food. The goal Is a sta te of satiety. Reaching the goal is tye reward, and the behavior which is instrumental in reaching the goal is reinforced. : With this in mind, we can now ask several questions "Are any of the listed physiological reactions sought after by tye• smoker?", 'Are these physiological reactions symptomatic of a body _ . . - • state which is the goal of smoking behavior? One feature of the list which has impressed many investigators is its close resemblance to the physiological response pattern accompanying emotional arousal, such as fear, anger, even joy. 1 ~ f ~ ~ ~ ~ ~ . _ this perhaps the goal of the smoker, to achieve a body state ~ which mimics emotional arousal? .. ..... ;: . .. . . . . . . . . . . rn the context of this question, let us now turn to the third ' body of fact, the situa•tional variables related to smoking behavior• ,;_.,. .. b i th f d•h ll So as not to ore you w re erences an ~ e recltation of a the evidence, permit me to present this body of fact in the form of a suama ry statement: The rate and Incidence of smoking varies as a function of external conditions which influence the emotional , . state of the smoker. The evidence at hand permits us to go one . , step further; the rate and incidence of extremes of the arousal continuum. ~' . . •G~ . . .•~' .. .v ._.l ' . ' _.J • . . ... .! :~ ;0:'r. %. ..;. ..:, :, ,,,; ... .;r: . smoking is highest at the • V+N.._.. ~. .• ~ Ln N m (S) F-~ 00 LTI N G i
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If one wers to plot s.-ok;n; rate a;a?is: s:-e -eas-jrs o.• •-e saoker's level of bodily aro:rsal, one •MCu1d ots:rvz 3 ni:_ distri5ution. This observation Sr?,;s us f%;1 cir:::, f:r ycj ` will recall that at the outset of this aresentation I quoted . •• ,:... .. . . me, i t stimulates me. Stanl ey Schaci t;r smoker as explaining his smoking in paradoxical ter".1s: It calms You may also recall that I s:a:ed that the chatienge to any explanatory theory of smoking is to resolve this paradoxical duali•y of effect. At the St. Martin conference,•Professor a psychologist at Columbia University, labeled this as the !IesSitt paradox; Nesbitt being a student of Schachter's who called the' paradox to his attention. as indicating body activation or arousai. This fits in nicely Let me state this paradox as clearly and succin:tly as i can: The known physiological effects of s:noking are those that we consider with the smoker's statement "tt stimulates re". 9ut It is highly discordant with the polar explanation which the smoker provides perhaps even more often -'It calms me". How can an agent which is physiologically arousing be calming? And why should tn already aroused, excited person seek further physiological arousal? :. Summarizing the known facts pertinant to the question of motivation: Smoking is relateable to personality variables. Smoke inhalation induces documented physiological similar to th ose induced by emotional arousal. . ...e resro•".535 . '~ .. , ` ..~~.~. F-' ~ CO .i
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I I I I I V I I I 1 I I I I I J • -~ - ._ ~- i.M. 3) Smoking .rate varies as apar3toi;c ' activation level• ~ f . _ . _ .1 J •1 .• _ V . I will end this aresent3:fon Sy sum-ariZing :tie o ma`or . theore*.ica1 exolana:ions aroposed a: tye S-.. Kar:in cznference. We shall see how each attempts to cope with the Nesbitt paradox.- The first is that of Hans Eysenck. To appreciate his ex-• planation of smoking, you must sit still for me to give you a skeletal outline cf his theory of personality. Eysenck contends •that there are two major dimensions of personality. He uses the - poles of the dimensions to label them: ixtroversion-introversion and neuroticism-stability. He states that the evidence shows :: no relationship between smoking and the neuroticism-stability dimension. There is, however, abundant e•vidence of a relationship between smoking and the extroversion-introversion dimension. His explanation for smoking proceeds as follows: Under identical ext:rna conditions of low-sensory input, extroverts will have a low level of cortical arousal and introverts a high level of cortical arousal. •For every individual.there is an optimum level of arousal. Since ~ arousal varies with the level of sensory input, one can visualize ,,. , . ,.. .. . . • . . as in Figure 1 the relationship of sensory input and hAdonic tone, • . ,... . •~. or sense of well-being. It can be seen that, in these terms, too A much stimulation is to be avoided, and also too little. Introver:s and extroverts require different levels of input for optimum , arousal; the extrovert needs more, the introvert less. Extroverts will become stimulus seekers, introverts stimulus avoiders.. Drugs :, are used to alter the level of sensory input. nicotine is also • ....... ....w~ • ..:A ,•, ... . ~i•- • . ' .. . -.. . .. • . •-/ , . . . _..,. .- :,• ; .:, . . ' _ . . . .. . . . ,: ~ 51601 8522 - ..~w,~. `.1~~ty,f.~1~•~~~L~~~•~%iV•~~~
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used to al ter the 1 eveT of sensory i npu t. 'iow «e sna i 1 see '1ow he resolves the aaradox: He ackncNTedqes :ha: nico.;,e ~.;s an arousal, activating effect, and reasons :.4a: ex:rover:s :,ere•-rs should smoke more than introverts. And ha;oi'y ty4s Is :rse. 3s: what now does he do with his smoking introverts? Surprisin;ly, he does not attempt to resolve the Vesbitt paradox. He invokes it, pointing out that nicotine can have both arousing and sedati,g effects. He cites, the well-known biphasic action of nicotine as documented by neurophar:nacological research. At low concentrations nicotine activates neural function, at high concentrations, it depresses neurai function. -.Two_serious flaws in Eysenck's reasoning must be pointed ,out: 1) The neuropharmacological evidence for the biphasic action ' of nicotine is based upon observatfons of neural tissue response to the local application cf nicotine in animal ... studies. Stimulation occurred at low concentrations of . .~l'.. ~' nicotine, depression at high concentration 1evels. It is absolutely impossible for the concentration level required to induce neurai'depression to be attained by means of k t h l ti on. smo e n a a " 2) To postulate both activating and sedating effects is to defy the documented universality of the activating physiological eftect of smoke inhalation. paradox. And I would rerr.ark in passing that the theory of Eysenck, then, has not dealt effectively with the NesSitt Sylvan Tomkins, widely acclaimed in some circles, suffers from :•`•s . .. . .. . . . , • . ~..•V. .. . .• . I ~
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3rv sf!!iren: types of smokers each ty;e see<i,'ig dTf f grsn t 1 «ects fr:1 sZO<say. Tomkins, too, has chosen to overlook •he ln;jersa!ity of sna<e- -1 ~ I I I 'mentioned for coining the phrase "the Yesbitt paradox". Schachter • offers an ingenious resolution of the paradox, and an explanation . of smoking-which you will most certainly find novel and possibly•' noncredible. 'Again you must first be briefed on Schachter's th+eory covering all kinds of affective or •-ioti4nal experience. same cri ticism. Tornkins has pr:pose: tha: :-zre induced physiological arousal, agreei^3 wi:i "cysenck that s.-.1oktn3 can be either arousing or sedattlg, depending upon the person and the situation. The second theoretical explanation from the St. Martin confers.*n is that proposed 6y Professor Schachter, whom I have already •° • The bodily arousal accompanying emotion is the same for all I I I I 0 A emotions: fear, anger, joy,' etc. The , bodily emotional state in terms 'of the •; .. . , .•• .. .. . • . .. . the emotion is experienced. Sometimes . . - . . . _. . .-~ . . .. . These can be dramatically demonstrated person interprets the circumstances under which . . • •~ Vlere are faul ty i nterpreta :i : in a laboratory setting. An example: A male college student is given adrenaline without ' . .. .~. .. h'is knowledge a.nd under pretext that makes him unsuspecting. ; A11 her hand linger a bit too long on his arm. The subject invariably . . • . . • • .• Interprets the adrenaline-induced arousal as an erotic arousal.and this takes place in the presence of a very attractive female lab :assistant. „At about the time that the adrenaline begins to-take effect the young woman crosses her legs provocatively and lets behaves accordingly. The lab assistant threatened to quit if the experiment were to continue. - • . . .. . . ' ' - .~•; _.o. . ~ . . _ . . , • .~:'; V1 ~ m m N 00 Ln N ~P
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~ Yow how does Schachter aoaly this t~eory to reS0;',;..y .he Vesbitt par•adox? There is no paradox, of course, fn :.~e s:r,;,k;r seeking arousal when a*t the icw end of :`e arousal c: ., , 5u : why seek arousal throu;h s,oking when ezci':ed, as is so often t-e case? • I quote him: "As . . , • ..•events are presumed to we all know, disturbing and frightening throw the autonomic nervous system into action, epinephriRe is released, heart rate goes -goes up, blood sugar increases, and so up, blood pressure on. How notice that many of these physiological changes are precisely those changes that we're told are produced•Sy smoking a cigarette. What happens, then, to the smoking smoker in a frightening situation? He feels ths way he usually does when he's frightened but he also feels the way he usually does when he's smoking a cigarette. Does he label his feelings as fright or as smoking a cigarette? I would sugges-.. of course, that to the extent that he attributes these physiological I I I I I I I l ;, changes to smoking, he wi11 not be frightened. And this, I propose, is a possible explanation for the strikingly calming effect that smoking a cigarette had on•the chronic smokers in Yesbitt's ex- ri - .; periments. • . ~ ~ '. There is a variant on the Schachter hypothesis that should properly be ascribed to Frank Ryan, one of my psychologist colleagues at the Philip Morris Research Center. ~ Ryan suggests that arousal by s:noking is perhaps a means of muting or damping an arousal response to exciting or distur5in3 circlmstances. There are limits •ait!:in which a person will operata , . .. .. ,• . . ~~J ~ ~.'. ' .•. . .6. ~ r. • U1 ~ m m N , - r..I. . .- ..s•.. . V:. •..rrT•• ~. -LtN . Aft ~ ` ~.: .. ~.. F~+ I I I .. . C.. I I I
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~... , .. ..r G: . . : ~ on the arousal ;us~*ed Ja taaar,.4 the .;c;Mer ', i~; : i ~ ~ ~ by smoke inhalation, there is li::'e rtaz le`: `a r fsr:her jr:usal. by external events. Thus the s,cker can arqz himself a;3ins: the dtstur5tng effect of anxiety or fear, or anger or wha:ever. : This is the end of my presentation. It you have been .-, intrigued by any of these ideas, I recommend the recently auslished volume entitled "Smoking Behavior: 4otives and tncentives", a compendium of papirs presented at the St. Martin Conference, 'published by V. H. Winston 3 Sons of 'aashtngtan, O.C. 1 1 1 # 0 , ._.:r. . . . . . . . . . ~ • •' . ~- - .. • • ... : .. :.. .. . .• . •.: ~ .y . . • ~ . \ . . . . • .. ... I • ~ ~.: ~ t-~ ~ G Y OD Ln N Q1
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: : ' 'NEGATIVE ''`~~'~ POSITIVE 1 'f • HEDO14Ic TONE. -' ~ .. i: . ' • •.~ .. . . 1r-.~ •.. ..•: • HCDOWIC TONE. . : ° LOW Msdlum ` : [Sensory DeprWlon] ; Figure d1 • Relation between Icvel of sensory input -anJ Itedonic tone as a function of personality. Reprinted from 1-1. J. L:yscnck, 1963. 04 A . S LZS8 T09TS Itu.
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CONj~.1~D `~ _, ~ ~ ~L TO: Ms. C. H. JudSe FqC`i: A. W. Spears PLAINTIFF'S EXH1BtiT -~ Before at:e.^..,;t:::q :-- discuss C:R, a br~e! review c: th. :r;a-: tions contr:buti::g to research into tobacco and healt.h seer.s to be appropriate. Perhaps the simplest way to rsview the sub;ect is tc list t: e orgar.izatic::s and/or category of organization and ganeral areas o! research which they are pursuing. 1. Har•:ard ?==;e:t - ei:ect o~ s=oke on host genetics and escec:al:y, lunq de=ense aechanisias as madiators of brcnchitis and eaphysema. 2. Washincton Ur.iversitv - early, dstaction o: cancer by :-t:zalogicet.zocs and :_ac=:on o: the immune system ia t=or reg:ession and/cr preventicn. 3. UC:.d - macrcphage aonhology and function differences betweez s=okers and no::sr.okers. Caacer i:.zu.zology, early d-ag-:csis :aoLs:z cell met.:ocs and cancer chemotherapy. 4. Chemical Com=anies - developrant of tobacco substitutas using cherai lacr and bioassay methods to i.,dicate di::erences :=c= tobacco. Scme human experir.en_s relatiZq to bronchitis are being conducted. 5. Filter Cro=anies - deveicDment o! filters whic'% alter co~.res:tion or tobacco sMoke. Total rart'i:i'-ate reduction, vapor phase reduction and reduct:cn o: carbon oxides and oxides o: ni=ogen. 7. Tobacco Researca Counci= -Harroeate Laboratories have 1--een solc. 5ut researc:: cn --=alat:ca and cellular e::ec-a o= s-cke continue under contract. a.6so, it Wou:z appear that scre resul:s o: Har=c=a:_ stsdies are being pursued directly by cc-=ar.:=s :n hotae. The a:a would be ~~. . pr=d_c-orien-a•ed. .... ( ; 51601 .• : 8528
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A ... . .. . : CONFIDENTIAL C! Ye--.._.<'. a::.j. _ - - - ...•.. S-C.~$ _C S: o.``.t3:n_d • s.~CiCarS :J;:o e::te= ~CS= :3_ and =.c5e =a: 8r:=.a:y e:t:^as:s seer'.s _o be t'.:r.or:^ , ,er.es-,s a..d daease. pr=gra- does i.tc:::de arrcnc=:ca1 aspec:s. - 9. _ ....:, - _rc;_a.:. is conce::-rated .n new :a=:=t:es , cur:n g p-ccess , e=:. as .:.ear.s o= t:::-zes N;C: bi:.assay systems and caeia_,ca: ana: j s:s o: s=o}ce. 10. State Acr:-::1=Le Research - procra., rela=es to pes tic::e residues and Zreec:ng for ow tar and nicozIne. 11. ':obacco Sheet .•'ans=act-_-ers - at:er..pt:ns to sake tobac:o sheets wi=- _-===':ec t-cassay =esui=s. aC: and Ge=an I nst:t::te for bioassay. 12. `C: and VH:,Z - programs relate to development o: bioassay sys :est :or tcaacco s«.oke. Zvaluat:on of di::eren t produc:s by these bioassay procedures is prize part of program. F..z;.hasis is on t-ori;enici_y, but prograSs !or cardiovascslar disease and chronic pu:.-ona:t disease are being initiated. • 13. Ad soc Cctrsai==ee - most research is epidersiological iz nature. proSra.3 is pri.aarill aiated at seeking al:er..a:e ::Tot: es:s o= disease causation. 14. C':'R - epidemiology, bioassay develorr.ieat, genetics, prizari'-y a~.-1ed at t•smorigenesis and chronic ?.uLmonary disease, but some act:vity in cardiovascular disease and s=kinq aot:vat:;,:;. Exclusive of the CTR program, the total ar= ual researt~ fur.ding of the listed organizatior.s is on the order o: 25 dollars directly related to smokinq and health. addi aonal:y, __ .rb:e federal government is spending on t.`:e order o: : 00 mi::ier. i1 't!te general disease areas of cancer, chronic pu:.:.or.arI disease and . cardiovascular disease. Clearl f, CTR is cor.d::c:_,3 researo : in a highly c=petitive area. and the proararrs must be well con- ceived and targeted to avoid unwanted dLp:__ation and produce siqniticant results. ~ Sometisse ago (:970 ). the C:'R rrosram :+as eval_ated by the Research Direc_crs. At that time, it 'ras 'el_ --,-.at the desired ai=s of the CTR prosram could be stated as: 1. To define the effects o= cigarette smoke cn the human system. Z. To ccncep=::a::ze and explore other ::y=o=Leses rela=:•:e to the and health .;::es::;,n by epider.iio:og:ca: and oti:er app_opr:a_e me=:cds.
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cor!Fict~ntii 2. Ce.•e:-; •`•==-~z== == = ===---=-'-5 -== -=" :' =a" s.:.:.ka a =n= : =-..:. with 3. -eae --...C--;z.^.:- ac=- --'r O: s.CiCe !zac__G::s. .:.:a: ac % new s.`.or: :e= bl-ioassav sys;.er..s ::.r - A zev:ew v= _.':e • • _-=ivid~ai ;:ojec:s ss:de: ::.-; a::3 r sti::d::a;.es t':3c the cblec~•:es a:e di::::se c:,-=a:ed c.: -:cez. 4. Deter-.:n e:= ===c==ea envira--er.ca:, ca:c:: oqe.^.s tcba_c:. s:..oke. . S. Develc~ 1. De=e w:ne e:`ec= c! sacke by c.`trcn:_ i: :a:ac:.cn Lz =::e. 2. 'Expiose var;ous _acets o. 1u.+:g :.atabolism, de!.r.se mechanisrss, ecc.
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.: N 1EN (0 RA."; D(-'.( TC: Ms. C. H. JuCSe FR CK: A. W. Spears CONFJDt;JilAl PLA1NTtFF'S EXHtBIT / Before at=e...p::nq _., disc_ss C:R, a br:e: :evi•w c~: - ", _• .,an tions contr::.cain g to research into tobacco and healt,'~ see^.s to be appropriate. Per^aps t.':e simplest way to review the sub;ect is to list := e orgar.izatic::s and/or category of organization and general areas o! researci: which --hey are pursuinq. I. Har:ar- '?=:;ect - e::ect o: saoke on.host gsnetics and _u:.c::.c n: es_ec:al-'y, lung de.ense aechan.sias as mediators of bronchitis and emphysecaa. 2. Washi::cton Ur.iversitv - early detection of cancer by :- s:nologica~~et.:ocs and :u nction of the iruaune system iz t=or regression and/cr preven=icn. 3. UCLA - caacroahace aor:hology and function di::erences bez.+een s:aokers and nor.sr.okers. Cancsr ir.nu.zoloyy, early diac,ncsis t:-.roc:gh cell cu:__re ,e=:ocs and cancer chemotherapy. 4. Chemical Comoanies - development o: tobacco substitutes using che=cal and bioas.say methods to in dicate differences :::- tobacco. Some human experi=en_s relating to bronchitis are beinq conduc ted. S. Filter Ccaananies - deveiopment of filters which alter coCspcsition o= tobacco sncke. Total iarticslate reduction, vapor phase reduction and reducticn o: carbon oxides and oxides of nitrogen. bl -~: :d;:al cc-:an:as :a `:ouse. '"he a:.= :+ou=i be a~ 51601 8532 7. Tobacco Research Council - Har=ocate :.abo:atories have been sold, but _esearc:: on ...::alat:cn and cellular e:=ec:s o: s-:cke conr.=-ue under con _ract. also , it would acpear _`:at sc=e results o= 3ar===a:e studies are being ourss:ed direct:y p=cd_c- orientated.
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ri.. t - -z CCNFIDENiIAi a C ' ~ ~ ~ ' ' s» C.<3 __s3 Ct Ca_::_C s=iC2rs %r:':o enter :cs: - t3~ a.^..'s. InCSe Pr--a=! e^=^as:s seer.s to be t=or:ger.esis and cn=cz~,= • disease. Pr=g=arn does inc:::;e agrcnc ~ical aspec-s. ~ 9. ::5:.:, - ='zg=n.:. is co::cer.t=ate.a. _ : new •:a.:• :-ies, cu=-n ;==ccess , e:c. as Wear.s o: zar.:c;:'_a _:n; _cbacc^ ?-ogra = s:t:::zes INC: bicassay systems a.zd caeia_ca : a,a:ys:s o: s»c;ce. 10. State Acr'_c_1=c_e Aesearch - prr.cra.:. relates to iest:c::e residues anc zreec::.; :or ow tar and nicotize. 11. ':obaccc SLeet Manu:act_:ers - at=e.^.•pt:,S to make tobacco s4eets wi_ nb:cassay -es;,Lts. Ut:l:z:n; YC: and Ger...an Z::st:=::ta for bioassay. 12. `C: and yFtL2 - programs relate to develoc=ent o= bioassay system :or tcaacco sr.oke. =valuat_on of di!:erent products by these bioassay procedures is prime part of program. E=raasis is on t•:.ori;enicity, but programs for cardiovascular _isease and c:irc::ic pu:.-ona:y disease are being initiited. • 13. Ad lcc Ccnsai==ee - most resear:h is epideniolog:cal i:z Zats=e. ?=og=a.3 a prizarily aimed at seek:n g al:er.:ate Ly=ot: es:s of disease cac:sat:cn. signiticant results. 14. C•:R - epidemiology, bioassay develornent, genetics, pri.:aarily a:.•~ed at t•uaorigenesis and chronic puL-%or.ary disease, but scme activity in cardiovascular disease and sz*cki::g mot_vat:c::. Exclusive of the CTR program, the total ar_ Lal research, t•sr.d+ag of the listed organizations is on --he order of 25 azll:c : dollars directly related to smoking and Addi tion a 1: j, t::e federal qoveram.nt is spending on the order of :00 =i:-:cr :z t.':e general disease areas o= cance=, chronic pu'..or.ar! disease and cardiovascular disease. Clearly, C:4 is cor.d::c:_ng rasear:. n in a highly competitive area, and the proararss 'must be well con- ceived and targeted to avoid unwanted ds:=::cation and produce sosaeti:re ago (:970) , the CT4 program •ras eval_atea by the Research Direc:crs. At t2hat time, it was =a? t_yat t::e desired aims of the C':R program could be stated as : 1. To define the effects of cigarette smoke cn the ::Lman system. 2. To ccncep =ua::ze and explore other hy=o =':zses rela _:•: e to the s.nck:::; and health ques ::;.:: by ep:~en:o~~g-ca: and oth.er an==c;ria=e met=cds. U1 ~ m m ~
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~ ~ LE~ OS'. HILL ~IOSL'IT ~.L . ,ee S.ST rrTM sr1t=tT , rc v+•,ti ~~ T-fl ~•~ "rs r U , _ v , ,3ai1 ~ .. .. ~ ^ p~. ~ .-...•ss ..,, gerevith is a more eonsidered report of ay opinions canca:aing the UC.a ressart4 ef:or: supoorted by che tabaeco coapanies. ,'- • •. 1.' Za competition, vould this package Likaly ba slven top priorZsy • • . for)^,M, CT3 or Aaarican Cancer Society :•s.-sdiag•' .tns- Yo. :„ 2. What parts li3caly Jould be fundad elsevhere? Aas- socs oarrov.~• '~ transplantation in xan. 3one sar-ov eulcure syscems. Perhaps lauicoeyta . 6 y..w _- - ii\1 ~_v 3 .~:J AuZusc 7 ~ , J. d Dr. William Gardner Council for Tobacco 3esearc1h 110 -asc 59th Street Nav York, Yw York 10022 CONFIDENTIAL • Dear 3i11: assay systems. - 3. What is cha strongesc part of the prog_am.' Aas- 3one aarrov traasplant (Cals). Zha vealcest? ?uaor t-:nology (3loon). 9ic 3 22 aausoniats , (?ooftey). Alveohr ?roteiaosis (Tarrico). -- S: Is a five-year c:.a:i=ent too 10129? Ans- Tas. ~_ -=6':: -=ls tttis• reisar~ :ispsccabla?==~ns-*•Tes: =--" _--=_ , .°-7. -'Is there relevancs to saoking and haalta? Aas- oary litas, .. ..... . ..~ ... . ..••. . G'hat is represented in this iraup is a ioose confederation of ac•z- t ' damlc researchers and practitioners of hesa:ology and cancer therapy. C'_ Fsphasis is on aeademic actampl:sh-rents• '`ss research, exzept for that ~: of Baskell. Gila and Golds, appears Qcinspired• :he goals are Wsdabla, ~._ but :::e spark for sxcaptional accoasplis:sent is noc t4ere• :he group, vith tha exceptions notad, viSl go on chu:nircg out papars', spaskins at 1+', ~ aeetings, and usiai up monel ta cha end of tia e vic::out nuch effect on W , the science or art of medicine. It is in ef:ect a lamasery that is being supported. doubtful. • , and it is dragged into the program. '••a: Is the monay vell spent in che interescs of aumanity? /tas- tultiple layers of misunderstanding becveen the donors and recipients ,..:_ of these funds an attoapt to do good has gone astray. Pcrhaps one sight saT that this program ovorall aighc do soma good and probably voa,ld not ~~-- ..:~rs.•. do any particular 4ara. ~ Z do not kncl hora co e:cprss:z adaquacsly a*14nd of cegret that -hrau;'a _ se knov• • ..,. _ ~ •.:. . ~., If you vant a c:ecai:ed analysis by individual subptojeca, plsasn let . -,. .,.. • f KAINT{FF*$ • Dss6 lisncs, • ': ~.y~,S,~ A~N , i i ~ ~Q Sheldon C. Somracrs, 'i•D• . _ _ -: . .. . .~•.•._-. 51601 8534
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n : -:~ e - i. . 'i CGNF/QENTIAl 2. ceve:-= !:==,:a:: anj- :sz_--=-=5 _-='_=== =n==••-- SwCke -:.::a:.a=.L.... 5~ ~:.35 :t~t:-. a __-_t. 3. :e:8.-=4 :e -z:...=;=n=- 3==- -=.f O~ s:«CiCe :=ac~:..,::s. 4. ~etel'~._:: e~= rZ 'tc=:e.'~. env'z,;..«e.^.ta_, carci: OCanS wZ_': :c!:accc S:r.oke. S. Oeve? ^S new sh0r_ :e= .`1i0assaV 37ste.^«'.S ::,: A Zev:eW at the _n ..iv1..::ai zr3ject3 :ISSG~eS an.'i. i'~''..~na_ ~ ~ y st_dies in di_a;es :.':3t :..':e c!2;eczl•res are di:=_se cc:a=a:ad t:, L. De=err.i:ze ej=ec_ c: s.^..cke !:y c'%ron_c i:r.a~mt:or. :.n ai=e. 2. c.xp:ora vas:ous :acets c! 1u.,g .;ecabolism, de!er.se %echa::is =s , e ::.
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~- ~- ~ - 1 1 ~~ .. : .~ . , .~. r..~~. . .« a ~ A-ofsssor Charles Seide Cooper Uaifln Cooper Square . New York, Nsw York Dear professor Seida: - Aggust 13th, •i4fio We~re adults. You~•.e got a group of talented lrids. Hence this lelt.r. . Ws have besn asked by. onrr client to coras up with a paaka e deaiga....a doaiga lhat is attractive to :ldds.... (young aduIts~. We were wondering sif this project aii9ht serve as a ejlsIIeaQF:aQ a,tsigssuea! for your package dasiQa class( es). Thls assig~nmsat is' as follows: To design a'aigarette paelage and aigarette carton thet has selling appeal !a the "youth iasrkat'l. The asw product aaeas, is "Kicks". (a new cigarette) Gnideliaea. thad must be followed include: A: Th* actual pae3csge eoataisss tea cigar~.ttes.'... qot the usual tweaty. 8. The words: paokage. "dehuc leagth!' must appear o a the • • C, 'I'he worda: "a product of Lort'llard Graensbotro ,' N.C., U.S.A.".must also appear, D. The wrords: !'Cautioa: Cignrette Sraacizig Ma Be Hazardoµs To Your Health~' must be include • on the paekage • N o, m N ~ Ln A sllttS •1tObtOttOAt AGCNCY V m 1 NM-GEN-236
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. #AL- ...._ac• :~ ~ - -. • .. -; ~~..--- _... -~- _ ........• . ~ ~ ~r. ` . (,:out. R-ofesso r S elde E. The "seal eIo sure" on the par3cage top tnust say "a product of L•orillard, 10 ciga,rettes Class (A) ." . Note: W'h:'Ie Szia ctge.rette Is geared tD !ba youth market, 8o aIte=apt (obvious) can be made to eacourage persons under ' 'twenty-one to smoks. The package design sboald be' geared to atti-act the you8dsl eyo.... aot the ever~watcb#ul eye of - the ' - Federal Government. . • • .: . $ one of your; studeots presaats a package-cartori design(s) rtbet ts accepted (design ebasen for new paekape-earton) ~'tber that person will b's awarded an agreed upoa sma of taoney, or your sehool will be Qivea an agreed sum of monay for scholar- sbips. •:Mese msdhods of payment, along wih any others that yo.u adqht suggest, can be discussed at a later dats. I donlt know if you can erA.rtain such an idea for a elass' praject, but I would appreciate bearing from you regarding samz. . , _ ~~p rGT ab.rsain . . • Cr.alive Director • _ 9 t A SALGS PRONOTlON AlitNCY . ~,,..% ~ . .
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'U3ODU 9lUt10:) 3N! NI 03OIAOdd SY 1d3na 031f101N.1S1O U(1 NMO11S '03St1 3d , tON IIYNS QNV Y30N0 1Yf10o Y Ol 1a3fHfIS 3NV S1N3tNOD Slt OWV .lN3lNft300 SIHI 1Y11N301dN07 tt • f -1• ..._.•3 ~ ~3 . .. ••• , .•... ~ . ~..... ~ ~ ,...t .•.,~ . f'.4 . . f ,M~ Od li w . / H 9 N i v \4A ~ ~ ~ , a .,-.,._ . cv • .~ 50270 »S~ 51601 8538
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saIE rxoucRTS Aaotrr x~v aUM oF czcAxEZtEs M T`8~ Yuzx ~i ~ C C Ac the outset it should be said that va are preseacly, aad I belieYe unUszly, .• coastraiaed lroa directly proaocias oi=arettes ca the youth markec: that ts, to 2 tlsose in che approxiascely tvency-one year old aad ss3der =xoap. Scactstics shav, <¢ hovever, that large, pezLaps evea iaeteasin=, auabers in that group are bscoati,as =W 930 9°` O . snola.rs each year, despite baas oa promotion of ci=srettes to tkes<. If tb3s be soi cbere is eeruiaZr nothia= SaeoraZ or mneshirsl abont our Caspany atteaptiag co ¢~ OV a ttract those smokers to oar products. Qe should aot ia aay vay influence naa- *- os . 9 FE ssoken to start snokias; rather ve should simply recosnise thst xaa1 or sost of v 2, the "21 and under" =tavp vi11 inevitably beeose saokers, aad ofter t3ea aa ~ oppartmnity •co use our brands. ' < c~i c Z ~~ a ~< AeaSistically, if our Cospaay is to survive and prosper, over the long taz-s '' ve msJ,s t=e= our share of the youth astkat. In aey opinion this vi21 require acrw v~x lu ~ brands tailored cc the yoach markat; I beliave it uarralistic to expect t2cit ~~ • zM existing brands ideatifiid trith an over-chirty "estsblishaeac" aarket can ever v~ . ~ +~-a become the "in" prodaccs with the Toctth Sroap: Thus ve need aeu brands designed to be particczLarZy attractive cc tha youa; sookar, vbila ide,ally at tha uae tis ~ p being appealing to a11 smakers. Several thiags vill go cc aotke up any such aev Ryovth"' braads, the most ~ m inportsat ot vhich eaT be the Sas;e aad guality - which are, of eoarse, iacerrelscediE u,,l The questions than are: iJhat issSet and Vhat qvslitT? Pes3ups these qwations var . best be approached by eoasidaratlon of factors inflveada5 prrstakars to try saokias, Iaa:n cc seoLa aad b.,aoae coafirsed smoicars. Ln N rn m ~ RJROOOQ13
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I f i 7able I atteepts ca defiae soae of ths s+ore Sarportanc affects szaected at derived fros cigzretta saoking by pr.-s=keYS, "Iearain=" cmokers- aad coafirsed r• saokers. ZZ this iacocpleee, subjective, ssmpltstit aaalysis is evan sppror.tascsly Z 1 earrsct, chers ar• sharp, pezhsps exploitable, differences bet++eea pte-saaksrs, ~ c "1eatners" and coefirmed seakers ia terss of vluc they expact or derive from N~ °s . ~O smoicing. Let as examine these differeaces. Far the pre-szoker and `Ieaner" the physicsl effects of saokin= are larselr r m • C ~- vaknwn, vaaeeded, or aeewlly Quite capleisaat'or mkvazd. The expected or v Z derived psycholot cal effects are lar=ely responsible far Znfltteacia= the pra-saoker0 a ~-~ to Lryt asokdag. ind provids sufficient aotivatioa during t,he "leataiag" p.rtod cAJ~ 1-0 C keep the "iearaer" =oin=, despite the ph7rsics.l tmpleusarzess and av{o+rezxaess of ~hee IVA ~ per:od. . . $ w v s s~ 4 V < Ci Sn coatrist., ones 'che "Isatni :g" period Ss over, the pkysicsl effects beco:-e of overridina Saportsace snd desirsbility to the coatirrd cmokar, and slie, psychological effects, escept the censiaa-relieving effect. Zar=ely aaae in iaportince or disappear: SAs coaoa thread binding the three groups toger.her iFpeaa to be the faet ss,okina of tig:rrocres offers and prov:des a desir.d oechanisa far coping vir.ls the setesses of 11Tins, vhieb msy raaae froa barsdoa to high tension and froa fatiaua to hiah troUsalL and hTperaetiTity. Qaee chit aechamSsn fsas beea a:p.rieneed sad ared, physica,l and psycholosical habi= pattsiras are fiszslY esttblished snd become self-aerpetuacia=. C RJR00O014 -a °° 014 K0 =w f-m
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i ?AELE I .~_ .~ LTrECTS E77ECSED OR DERI7ED FRO!i CIC/IRfT't8 S!!DlCIltC I. PHYSICAI. EFFECTS A. Nicotine ittsponse 3. Seaaorr E!teeu 1. Srslcan=Aarahness 2. F2aver 3. Other 2Soath Feel - Dz'yness, AstrZaEeacy, atc. Pre-Smokerj Learae=I - ~ ~o- p + - ~V ~-ur c- G v?• 6.wtsua_1 - Pae1c, e3Earecce aad smeke attzsbutes 0 + •'++< p . C. tSanloaSative Zf.etu - HandllnY, lt;hcitt=, patl:aa, . hoidin=, ashiaa, aztiagvtskln= I2. PSYCgQLOCZGIL £InCTS A. Crouo Ideatifie.atiee - Pastieipstia=, :hsrSa.;,, eonfornla=, tcc. . 3. Seress and IIoredo+s Ultef - Etys c1ae, valid iaterzuattan, brld=es av,kvard cisaa acd situstians, soaech:ag co do, e=e. C. Self-Iesae tahaoeeaenc - Ideatilleaclan vit's valued persoas',- daziag,-sophistieacsd,, - - free co choose, sdvlt, atc. D. E=erineatatSoa - 2sp soeetlLina mv, sapeziaaa=, etc. it a positive 0 - esoae - a ne=acive +++ ++~ 0 ~ ~ t a-. ~+y a e RJRQOO015
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1~ ctsa ibova iaalysis is spptozSrittLy correcs, ch.ns the basir the-,,. !er proeetias aay c:.garette to aay =rottp should aia, direetly or iadirocrly, as th e ~ desirability of vsiag a a.Yea brsad ss a see,taaise far copiaa vith 'stress. Eraads Z tailored far the betiaaias smoker smokin=, juapily. shoald eaphasiss the dRsirable also svgEestias the desirabls physieal effacts thea, it shoisLd be possible to sia a aiga.rette to ,j psrcbologiul effee9s be expected Iater. promotioa at yg 20 the be:iaa:,ng.: <y= saoher, at the sane zize sakiag it atzrictive ta the coalir,aed saoker. The irtforsacioa aad outline in 2abls I thea siy be usad as a basis far arrivia= at some specificstioa: for u+av "Jouth^ brands aad for dece.--.saia= hav they sAocld 02. be p=oaosed. ~ . d V G I. PSYS ICAL EFFECiS , W~ ys HsviaY ideatifisd these as ltighly desirable to the caafizaad saaksr but n Z) < z vs a IaraelT uakaasra, nat,+Iexsaat. awiarird aad/or uadasira3le to the pre-smokar or - ~ "Ieasr..ez", the effort Asre should be to sffecz s cQaprar.tse to miaisize the zo WLN F- r • Z~ umdasiable ef.ects vliiSs rstaiaia; these crhich lacer betoae desirable. o L? r- A. 11fico ti.ze Lffeeea - Hitatiaa shaccld be delS.vered ic about 1.0•L3 a=. /eissrtitkp, the aiatasa for coafis-zad snatcers. The race of absorption aL aieotias~~ . M• should be kept Zav by holdia; 9&. docelt,, probabl7 below 6. u+ z E. Seessorv Effects . . ~Q I oy„ 1. 2srltsaer-ganhys - The begiraia; saoicer aad iabsler has a lo.v tolers"sD a ^ . =W . for ssoke irriutSoa, hence tha smka sho+std be as blaad:as •`-° Q, possibla. Z.`v_o,_r - The tlavor of robacco smoke is iaieial2Y losei=a, aad not:pieasanc. Oaa culrivates a tsst4 faZ suaka auch as oae laarsu to S,ike olives or dry viaes: pethaps. ax in the case of tiate o• vater. there is ao really "good" flavor. oesly degrees of "bad" flavor. Thus for the be=iaaia; smoicer the ei=iretta swoke should lsave a 51601 8542 *j go u . RSRO00QArO ~
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moderte level of blended tobacra flavor, but stsould ba aa fzee as possiblt fros stront, mnplessaat tlavwss such ' r- ss sce=:y flav+or, eca. A"car" de2ivesy of •12•1s atg/cissrstsZ stiould provide the desired flavar Zevel. , 3. Other !louch Fee1 - The snake skould be "bland" vith respece to sstriadeary, hocaess, drfaass and the Like. A=sSa, the 1- ~- tDeot7• is that aay mouth effect is asv aad differeat, heae: -4 -4 I¢ U. °3 e 2 C <a d ;. = o ov should be as bland sad free of obviovs ae=atives as posstb2e.I.. c,,r F 6. Yisual - The ptckade sad ci=arat=e should be plessias to the els, aa § ~_._._.. 3 v121 be discussed further balow. Zho sractat aad density of. p0 • asbaled smoke should be such as to ba elesrly visible aad -l s..0 <_ aoh thin o: scanty. A tar level of 10-14 mg/ci=are==a s~`,~d~,,,~ ~ ~< . ' . ~ bm stat this requir.meac. • <~ C. !lanl9ulacive Effects - Camiat, opsnias sad us1a= Che packzae shovSd 51-' x ~ H ul ~ eoavsai.at.- The eisarette should be as Zoas ss posaible, probably ~US 100 zw, co faa.ilicat• 1Sih=iag. 'a'hs rod should be ressoaabl7 fisz, C!S aad a aodesatelT "softr ro.md filter t.p shouS,d be usad. Zbs drait ~~ =C res Sstaaee =pttor to and dnriaa amoiciz= skaaLd be as lov as pneticai ~ o < and ahonSd not exceed dAiflAGL ap.ciacatZoas. The produz: should S.- Z - requtre; tAcis, ai'a,imsa eflorraad-eate to hmdle aad usr: • CUA Oy , Ln . ~ .. ~ m r ~ c ~ .o 0 V P w RJROOOO17
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6 II. ~YSYGtotAGZCAL EFFECTS Ihese are the ezpecced or derived sracificatioas uhick iatlueacs i to cry smokia= and vhiea sastain the bezinaint smokar during the ItrZely physically = ~ awkward aad uaplssaat "learsin= to smoke" phase. thasa affects also lar=ely dets vEtirh braad ths nre-smoker wi13l esmeziasat and Lrurn vith. A. Group Identifieation • Yts•taokess lesrn to saoka to idaatif`y with and partScipaca ia shared srperieatss of t group ot sssoci:tes. Zf the ~ ~vt ms1ority of oae's closest assoeiices snoka ciSsrattas, thaa rhere uZ is sttoas psydholos:csl pressare, psrtir^rlaarly on the youss persoa, <~ . ~fl to ideatSh vith t2ce group, follow the crovd, and avoid befas otzs 1~ O of phss• with the group's value s7stea evea thoagh, pirsdozicalZYQ the =roup value systaa ssay esteea Sadividualit7. This provides. sw ~~ • ` Z ,n a, large Zacsati.rs to bezia ssohsa=. Zf tf~is' be ~e, t'~ea the ats v~~ . - ~~u effect strunll7 iaflu~mees the brand ctsosea, ic likely beias the Z o ~uA r r- popnl.ar, 'a" braad vsed by ones close usociatu. Q_-j . ; . ~c 2hvn a new brand sittied at the 7oua= saolc,ar asst soaehov becoee en $A ~0 the "ia" brsnd sad ita'proootioQ should ezahssise togetherness, Z Q < beloa;ing and group acaeptsnea; vhile at the saaa t1.Ls eapbasisia= 0 individu.ality and "doing ones own chia=." I" ~~ a. Sttess and norsdoti ReS1f -?hs teeas aad early tveaties are periods of ~ intexsse psrcStolo;ieul strass, restSessaess and borsdoa. lisr;p sociall7 awkward sitvatttoas are eacosmtsred. The setaate or Lxo required to stop aad light a eit arstts, ask for a l.iS,ht, find aa ash e=ay, and th• 11ke provide sometliin; to do duria= perioda ot awkwardness or boredos, asd aSford a little "zlae-out period" vhen eoafroatttl; s stressfsil situstioa. Swokin= also gives osts som"bint to do vitlt the h,ands, eyes, ste. and somethia6 to ta11c about ia•i sicuation vhere othervlse one aicht ri:olv have nothiaz cc do or siY• 51601 8544 NZ RJRoO(1(11 R
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e 1 This desizsble ectriburt of smak:n= shoald be strflasly evahssised in promocing a aev yoatk brsnd. . a Z C. Self-Is%e Fshaneeaeat -?he fratile, developing self-i:asge of the young ~ per:on aeeds a11 of the snpport,aad aakaaceaant St can iec. Seokias ~ c a mar appesr to enhance that selt-imags ia a variety of vtys. If ~ s . o ons raiass, for exsapla, sn idveatvrous, sophisticated, adult < y - ts ¢ i+ - ima=e, snokia= may enhance ones self-iss=e. If oae vslvrs ce=tais ~~ characsesisticu :a specific #nd,ivids:als or t7pes and those persons ;~ o= types smohs, tkra if one also.smokas he is psycholoSically a ' v= NCo little soce Ziks the vslaed i.==c.. 1liis self-iaaae sahsncearsst 1 ~ effect hss craditioaslly been a strsag promotlonal eheme for eitas~rt~ s 2 w o_ brands and should continue co be uaphaslzed. a ~ t D. Es-Deriv,eacatioa - There Is a stroa drive Za aost eo 1• ~c~ a P p. Ps=uenurS7. ts ¢ c. V < Li Toac=, to Cz7 ncv thinss and exqsrieaces. Ittta drtve no doubt leads ~~ 2C rssn7 pre-ssolcars to espari?..nc vith saoidstg, si=pZT becsase ir Is there and tluy viat to fcsov oore about it. A nev brand oLfesing w~ sometbing novel and ditterent Is ISYa1T to att=sct esperirenCers, young end old, aad if it offers an sdvYa;zge it is Iike1T to setsin, I thue users. S 2hers is another psychologtesl factor vhich did not rsadily • - o~ tsll into Sab1e I, but vhich say be Quita t--portsnc. Shat cstegotT a y H = aig'at be called "k:ti-tstsbliskasnt ~lttitndes". It doei not 'eucer ~ F d 'r~ . . iato the decision to start srotcint but azy strongly influence the. brand chosen. Today more tbuu ever, Toim= people cead to rejcet I . vhacevnr ia sccepted by the "over-thirty" essablisbaent, vhir.b• = includes their pareats. It "arand 3Q+" ta the scceyc.d "ia" brand with the eszablisAseat, it Is likely tlsat ausy young siaokers vill u, r m m 00 in A. . Ln U C _.. a RJROOOQ1g
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C alaost,..aatomaties2lr refecL t.Fisi braaa aad st= vith soaethiag else. rhe7 vill more lilrsly scast virh "3Rrsad 2&"' vlsirh is • ~- boch cbe "in" chia= vish their cl,oiest age jrosrp and rhe "out" Lhisi 1/S.Ch the "over-chirLy" =L9L1p. IZ'a5abl?' Sn todiyS mtrket, z J J vL1t5=ON is the "nrsnd 30'~" sad 2iurlbora is the "araad*20+" S<<., e . . e Hsppil7, the Hsrlboro vill eveataally age out of iu 'Ya^ position $ c <4c vick youth, as VIYS?OH appesss to have slzesd7 daae. Aov is the . i-_- ~ O ow clse to hameh the next brand to bsenme the "ia" cigarette with }. or ~ tAe A.Yt seasrstioa as KsrSboro ages fron "ia" co, b.opefilly "oat, aadc Z tj over-ehtrc7" statsss, heace becoaes someLhiag for youth eo avoid. 48, A tiasl psychologicsl factor vb3e3i sl:o dtd aot fall reidSl7 -+ <_ li1 4 iaeo 2able I imolves sookia=-husleh ae=itudes. The s~Qakiat-hs:lt~ a g< contravsrsY doas not a~rpeu iaportsnt to the groap becsuse, •~ ~«- V < psyehologiullY, 4= eighteen, oas is Saaartal.~ Tu=her, Lt the _ . ~ ~UJ desirs to b4 daring is part of the ootivatioa to sears smokis=. the Z o cv w r- r... alleged risk of smnkias asy aesa:llT aoace ssokia.g at=r=ctive. FiasLln m if the "olderesxsblSshaeac is preaching ag=iast saokiag, the , r`s..~ :azi-es=ablishmaar seatizeat discassad abova vould csuse the young taZ o . -< want co be defiaat and saofca. Sltus, a a.n braad sSrssd at the 7e~ y'Z ~ . • o gsoup should not in any vay be ptaaotsd as a "health" brascd, asd 8i~ parksys.slsau].d cas~sT saas iaplied risk. Za this sense tlie vasa~ias G~ o> > label oa the package ay be a plus. d a ~ . Y r ~ v ~ P - N M . , ~ .. ~ ~. ~ e R,RoooOzo
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~ ac the youth aaricet shovld fsave. At tbSs poiat, it vi1L be csetn3, ca sti,asar.rs: vhat has beeat siid; i sdai=ted17 g«seral cers: product Qualit•f Factors 1. Koderate level of aicotiac (1.0-1.3 aglcitsres=a) delivezed i= pg •- O Z (S.B-6.0) to Sasu.re slov absorptZoa. 1 2. J 2ioderata level of b2eaded tobacco fla.or ("tae'at 12-14) frte ot Vj 0 OC vadesirable (e.g. szaay) ZLi.ors. • • =O <,n 3. Blaad, soft, moisc mooch-fesl, vith aiatsal irrStzacy, harshness, ~ ~U1 s- ~ ' so aatriageacT, Possib1r verT ligitly aeathojsted. • Ov e- 4 Zn "staadard" range of diascer and fix=ess, vith resilieaz filtar oi-. : U z or nouthpi4ca, prnbsblT 100 a in ieasth. <0 • S. Dt.ferea= pscka=e sTpe or packaging :xaterial, perhaps cont-tRi•a ao .j ~-O . < v ec . 6. lcver ciaarettes, therafors less bu1.ry. ~n' •_ c sef us Soa* visibte n,aveltF or diffueace in product or package to set: a N < . ~ $. Z ipart fzoa coa'IeLit:Loas1 eSgizetteis .1des21T •SadL"ecL•oa of' g: asLt~ J asaSpu2sti.e coaveaieace. for be6Saaiag saoYsr. ~ ~~ Product IasAe-Paesors Oa .~. 1. Shon2d ex:pbasise p=rticipation. togetherss, aad aeabership ta a N ~ ~ g=ottp, one of the aroap't prizarT •4iues being i:.ttvidtsslStT. 2. Shou2d- be straagly perceived as a machszira for relieving st=ess, .-p C= ~O b-Z teasioa, ewIcvardaass, boredoa, and the•lijc+e. W~ 3. Should be usocisted vitS doing one's ova thiag to be adveaturoiss,: ~ Qc differ.rat adcitt or v3ateter-elst is iadi.ridmsllT valued v. 4M - , , . _IL r- ¢ 4. Snould be perceived as sose sort of as+r sperisace, soaechias arocsiag some curiosit7, aad sose challea=e. 3. Should be dittereat lroa established braads used by the over-tbirtY aad ., perhaps even over-cveat7-five groups. ausc becosa the proprietary 6. thing of the "youeg" group. Ln Sbould not be perceived sc a"2+.alta" brssad. . •'. ~ . .. m r .. 00 I RJR000021
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10 Zhe eaumeracsd Troduct Qualit. Factors should be easy to achieve, except chase reqairiag some i11-defiaed aovelty. The Product Ts=ge Faetars, of course, describe ' ~- a promotioaal =pproach, and ir is swst likely tha= the caaae and appearance of t.he Z product vil2 here 5ecoos erucial Ln establishitsg tlte dasirsd isa=a. The aaes etia7 be che rrss e i.=pereaat factar, deterziaia= the appearance of the psckt=e atsd sumaritir.g the isa6e co be prosoced. Zdeally, the aaate chosen should have a daubie e;eaaias; that is, oae coeutotatioa in "straight" i=aEasae and another in the jargon of youth. A curzenc axsaple mzy be fWo1. which reads an "coal" eic in yoatb )argon, and also literallT conaoces a refreshing physical seasation. Mattter way of approaching t)S+a asme er _j irs=e would be to choose one which evokes differeat buc desirable rerpoases frasi ~ •Z dif:etsnt age Eroups. Shns the Ysrlboso vestara tsaae su=guts iadepeadeace, el4a ~ c v= <c o n* . ~ . y ~ aad the like to the - ' the "good old days" vhice hsts over black hau bird vot~C 6- , , , 20 older ;eaeratioa. In passias, it-is iateresting.co note tlut Msrlboro is a distiagutshad aad ther e is a eertaia iscossistetscT in dignified ErS;tish aaee e,ua Oa t~ s ~ , , 03 1~ N ~0 eQusriaa ehis ias;e vith ths vest.. ?c air, open spi.es sad fzesdom to the youth group, while ac:t,ha ssas time sut,gsst4 A caretall scudy of the -eurreat roc:th jar=oa, together with a revicts of C and like soazcea for valued eh4z*#N°= = y r.i=ht be a good sttrt at fiadins a tood brand asme and ieuge theae. This .ts obTio%m ~~'8 O currently used high school daericaa histosr books y om a uslc for aazScatia peo so le le aat resarch = p . . p , p -tssuain; that at aoae poiat aarScatin= people vill estzblish a aame aad Sssge for a new youth brand, and aasueiag tlsac ths thoughes an prodvca qualteT factors expressed above are appreztsately correct, thea. Yaseirch and TPD should be able to provide the produet aaeded. Most of the product specificacioas defined are , = ur ~-o achievable vith present techao2og. ?hese which require new cechaologr vould apyear to be- (1) concrol of irzitaacy and related a+outh-tael factors co produce a ti1iad . c RjR(1Oo022
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' 10- sswice, -snd (2) crsstLoa of soae aseful. demon.strsbls savalty Sa t11=sr. notithpiecr, packs=e or othsr aspaet of the praduct srscaa. ~ r Our Cae;psay ceeds co take idvsatuge of che appa=tcaicy ra aarkac aev yoach = ~ braads of cSg3rst=ss. The tlsov=hr.s expressed here may p=ovide a prelSaiosry zw a=.ada far disCassSoas betveaa Aesesrcb, SF'D, HsrkeLSa= sad Nsazseasaz, simed st = sara prscisaly datiaias vhst ve coald aZsiststely mska aad proaoce_ Zr is hoped _ _ - ' chtt such discassiaas viSl sooa aasas. lisaavhile, 1= becon.es zpprapriace far ~ v Ltses,rch to seek vars to caacrol saolce irricaacy aad ta seek ta crescs aovel, _~ fuI 1 nss c =sre=ta sps tsaks . el--- a. ~ Z <0. • Qsvds Z. S gtsa. Jr. Februas7r 2, 1973 : ~ . ~+ 0 . . 0 v . .~ - v C3t e~ - f., q~ . a) m : OD U1 or- • RJRfloQO23
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~~ i 000 .~• .• /1~tr~ c~rcu.Ia{~ ,r•- Du-);, 6•.kI Inter-offire Memorandum ' Subject: New Project Area Proposal on•: Septe.ber 21, 1971 Title: S.oking 8ehavior Studies -- A Pathway to New Product Concepts To: Or. A. H. Laurene From: 0. H. Piehl Pro ect Undertaking: To study all aspects of human smoking behavior, providing experimental data where necessary, and develop a co.Qrehensive view of how and why people snoke, why thardon't smoke, and identify spe+:ific needs that are fulfilled by smoking. Ob ective: The ultimate objective is to develop new pr„duct.ooncepts that u i needs for the non-smoker.. Suesa We normally seek to iearn as .uch as we can about the chefistry and organo eptlc properties of tobacco s.oke-, but little consideration has been given to the nature of odr e9nsu.or from a.researdh standpoint. lluch research has be.n done on thr psyrdwlogicaiW ano prsiological aspei= of smoking outside of the tndustry but idhis inforwtior is not effectively used.. 9err little has been dane on the sociall and psycho-social aspects of s.okiny. AW practically nothJng hass been dane on: tht physical ano anato.icai asInct.t of hoti a person smokes. It is clear that people smoke for many more reason:; thaR•Just pleasure. Smoking is a unique human behavioral funr.tiorr and there are many pr=conceived notions and biased explanations• for Its use We should e:aeine• all aspects of this behavior to get a co.plet+e and accw ate• cicturt fnae which long range product concepts:can be developed- It is proposed to for. a w•ltidiscipl inary team of scientists to examine the smoking process and.s.oker behaviorr, each fro. his 3F.n special point of view, drawing mainly on existing data... -his teai..ight initially mnsist of one full ti.e RJR scientist fa.iliarwitR tobacco and s.oke,• and a Marketing Research person together with part-tiwr consultants_ tiowver, to be truly effective this would have:to_develop• into a continuing eff#3rt perhaps requiring the need for recruiting specialized scientists or rrtaiaing periianent consultants. The only laboratory research to be done at R . would be studies of .outh- smoke interactions and the physical .ecAAnis,a o.f the ssoting process.. As a better picture of how and why people smoke emerges, new ideas of need satisfiers for the non-sooker shoul•1 also emerge. In this way entirely new product concepts should arise having a sound scientific motivation for their development. J 9? EXHIBR NO.~ R. APPLEBAUM u 0 ~ • 0 0 l C-682 ~ ~ P2o002170
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2 Status• I.petus for this for proposal was generated from previous puff profile and retention studies but with the exception of orai pH neasurements and discussion of possible physiological exp'riments to be ione at IBT, no new ; research has been initiated. ~ Mee+orandum • , Background ~ Our primary product is tobacco sn+oke and much researclt effort is devoted to its chemistry and taste, yet behavioral scientists tell us that people do not smoke just for pleasure (1). A.ericans, they suggest, s.ake for aany- psychological and social reasons, such as to prove that they are virile; to demonstrate their energy, vigor, and potency. In addition they suggest people smoke because cigarettes relieve tension: express sociability, are rewards for effort, are aids to poise,help anticipate stress, etc. Nany physicians, physiologists and pharaKeologists argue that while the onset of smoking is determined by an interaction of social and psychological factors, its maintenance is due largely to the dependence'on the pharmacological effects of nicotine (2). Mich medical research is devoted to the study of allegedly hazardous co.ponents of smoke and their effect on the body. The social and psycho-social aspects of smoking are just beginning to be investigated in any detail (3). It is clear that there is a lot more to smoke and smoking than we are generally cognizant of. Some experience has beep gained here through the study of puff profile characteristics and lung deposition measurements. However, little effort has been deroted to the physical mechanism of the smoking process itself, especially with regard to interactions in the mouth. This was not intended to be a rigorous review, but simply to provide an Introduction to the proposal. . osal In view of the many factors involved in dealing with cigare tte saokin-1 and smoker behavior it seems i.portant if not vital to take all of these factors into consideration in undertaking a viatle resear effort as part of our cpportivtity-oriented prograr. rt is proposed that one RJR scientist be assigned to develop and coordinate a plan to assimilate and evaluate existing knowTedge or smoker behavior. This could also include a Marketing Research person. Initiiilly, this might inrolve retairting specific behavioral science consultants in the areas of psychology, physiology, socioloqy, etc., in addition to extensive literature review. Eventually it might require the recruit•ng of new scientists with new disciplines. 010683 P2D0021703
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~.~ ... 3 Periodic reviews or group discussions would be held in an attept to establish the type of information that would be necessary for ne+i concept development. Answers to the following questions wouie be sought: ~ 1. Why do people smoke? I , : 2. Why don't people smoke? : 3. What specific needs are fulfilled by smoking? 4. Can these needs be fulfilled by other means? 4nd if so, 5. Can new consumer product concepts be developed utilizing these means? This type of information would also be valuable In other aspects of tobacco and smoke research. We cannot thoroughly understand our product if we do not understand how and why it is used. Since smoking is a unique human experience we cannot rely on'those who do not have a vested interest to explain the reasons for smoking behavior. •Active research should be w+dertaken to define the physical .rechanism of the smoking procsss. Looking at the hu.+n system,partiarlarly the mouth, as a reaction vessel, how does the saoke enter; what happens to it, how long does it stAY. artid harr does it leave? These' so.ewhat- eleaentary aspects of s.okin9 have not been given enough consideratioi. This work'would relats closely to existing experiments on the effect of smoke an oral pH. In fact, it .yr be necessary before an adequate experimental designi can be developed. This work would also relate to possible experiwents' at I8T to .easure' physiological response of vari ous tobacco products. If we take the view that our' single biggest- product' is so.e fori of oral satisfaction as a basic need satisfier than we should know everything there is to know about'it and how these needs .dght be. fulfilled in other wys. This .ey involve subjects or disciplines that are not considr.red to be within the realm of tobacco research and .ay require changes in attitude. It is clear that there is a void in our total approach to smoke and smoking; Fulfilling this void could capitalize on our superior warketirg esaertise dit:b nei conswrer products. 01P/ki , o0 Ln Cc: Dr. ltirray.Senkus N Dr. C. E. Teague, Jr. C 10684 v a N • J 0 N P2D0021704 . : i
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,ar 1. 'Ci9arettes: Their Role and function.' A study for tt~e Chicago Tribune, Social Reseirch, Inc., Chiugo, M. (--1953;. 2. Russell, M.A.N., 8r. Med. Journ. 2(5751~ 330-331 Ny 8, 1971). 3. Zagona, S.Y., Ed. 'Studies and Issues in S.oking 8ehavior,•, University of Arizona Press. Tuscon, Ar4zona, 1967. I w 0 i 0685 a .1 0 J ~ • . P2D0021705 ~.
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pUBLIC sra7uNc Yii 1971,-Jesse L. Sr'Ceir.fel-0, K:D., then U:B. Surgeon Geaeral,, advocaLed the prohs.t+'.4p•Sccm of smoking in confined public places, suclr ac rest.ssreats, theaters, airplanes, trains and buses, because the nonsmoker aight be injured by ambient tobacco smoke (i.e., tobacco csoke in the atsosphere). Steinfeld.'s= sttatement qave aati-smoking groups an effective tbme. She aati-s.oking orgaaisations adopted the objective that smoking should be made socially un- acceptable. They began a mass invasion of state capitals and city halls to* argue that lavs must be enacted to pro- tect the nonsmoker from ambient tobacco smoke forced on his by seaksss fa pub.Zsc places. 1.- 2. CEiRONOIAGY f i . The following is a brief sketch of major events at the state aad lq&--_-FA1evel subseqneat to Steinfeld's clarion call. 1970 Tcn`VAls. introduced to• restrict smoking in p & ret places t none enacted. 1971~ 'l~~,A~eight bills introduced tn five stdtes~' two enacted. a ~ + 1972 t scteen bills proposed in 12 statest two enacted. SuT"I'aopted guidelines which prohibited smoking ia:~afer:ssce zonias and avditoriums in its build- 3a~snd zs%mired s+o s+sokia4 iections in its eaf e~eita+s.: ~ - . . 1973 Ibirty-six bills proposed _in 18 statesj five enacted. Knny amicips1ities enacted restrictive ordinances. Tbe Arf=caa zestzictive 2ev -and. its pioaoter, r.rs. BettY.Caraes, received vide publicity. The CAB ordered eoma+ercial airliriers to aeparate smokers and aoa-ssokers. 1974 Sixty-tvo billc proposed in 29 s tatest five ena cted. ~ Several sunicipal ordinances restrictiriQ smoking'also were iaacted. The ICC restricted smokers to the rear JS &e=osas: ss "atis~s space aa lstezsLate busea. 197S pne hundred sixty restrictive smoking bills intro- dUced in 48 statesi 17 eaacted. The liinnescta Clean Indoor Air Act restricted smoking in a broad range of publie and eemmereial areai. The New York Health Department prohibited smoking in public areas, in- cluding supermarkets. 3. 4. S. 6. 7. 8. 9.
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Paraprapn NunxSer : t ~ 1976 One hundred sixty-one bi2ls proposed in 39 statesl eight enacted, including the Utah Clean Indoor Air - _Act, another -la:oad na saokin9 bill.- -Z.awsuits were filed against the. Pontiac, liichiqan, stadiuo Author- Ity and the New orle.asis Superdccae by anti-=okers seeking to prohibit sasoking in the buildinqs. The court dismissed the Sbperdome action and the . Michigan lawsuit was settled with an aqreement that the stadium would request the public not to saoke except in coaccurses. The ICC prohibited smokinq ia railroad dining cars and required sepa- rate passenger cars for ss.okers and non-s.mokers. Donna Shimp sued her eaployer, New Jersey Bell Telephone Coag,any, and obtained an injunction re- quiring the cccipany to provide her with a smoke- free working smrirnmment. Ms. Shimp was an ex- smoker .rho cisimed she had a rare eye condition which was aggravated by tobacco ssaoke. 1977 One hundred thirtz-six restrictive bills introduced in 44 states, 13 eaacted. The General Services Administration (the caretaker for U. S. Government bdl2daqs), the state Department and the Department oisf;ense enacted restrictive smoking guidelines • for baildinqs under their control. The FAA rejected a_Li~ion by a.Nader group which requested a p oh'Ibition against smoking by pilots on the flight deck ost airliners. Z'he. GA8. voted to pzohibit pipe ~ a}~d~3gar smoking in interstate airlines and apnounced that it would consider a- rule prohibiting o ~ c rette smoking. r^ i 2978 "r 0~~y 1, 97 restrictive bills were introduced ii~„2`states, as~d three were enacted. As a part o~ •s `itar on. Szoking" program: 8Ei proculqated nt,v-reatrictive smoking rules for. buildings u.nder- ..„~"'~~:n itc"coaitzol and announced its intention to urge businesses and s.tate.and local governments to adopt restrictiva ssokinq rules.: California -GASP and Californians for Clean Indoor h.i,r . obtained suffi- "'.,"i .,.- cient signatures. to. place..a.broad arti-smaking initiative on the ballot for the California Qeneral # • election in ltoveaDer. 2wenty-six restrictive measures were proposed in local governments and eight bave been enacted. In April the New Jersey Public Health Council added.a broad no smoking Sn public provtsfaa to the ii.v Jersey Saaitary. •Code, which is eaforceable.a.s law, effective July 1, 1978. Uplesentation of the ne+r Code provisions aay. be delayed at the reqnest of the New Jersey legislature. Anti-smoking qroups have continued to enjoy their qreat- cst successes at the local qoverroent level, mbst major cities now have restrictive smoking ordinances. Zbere are 3.00 11. 12. Ln 13. m LA m o . I 0 00 m m Ln Ln ui N ~' .+ ~
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Parapraph Number more than 225 local governments with restrictive ordinances reported to the Tobacco"Astitute. The actual-number is probably larger. THE ZAidS AT:D EKFORCERENT : Thirty-two states and the District of Columbia have en- acted legislation restricting smoking in at least one cate- gory of public pl.ces. Gf those 32 states, the majority have en- acted prohibitions or restrictions applicable to elevators, public transportation, theaters, museums, libraries, concert balls, health delivery facilities, health care facilities, government buildings and public meeting plaees. Six of the 32 states have prohibite& smoking or require segregation of smokers in retail stores, food stores, and restaurants. Two states (Minnesota and Utah) extend their restrictions to pri- vately owned places, including offices where more than one person vorks. s~ public place ass Tbe 1~et defa_ ah ?be Ninnesota Clean indoor Ai r Act Ss one of the two broad- est state resiactive laws irr. the United States and has becoa,e the aodei for-diti-smoki,nq legislation. The law prohibits smoking in ........ c places except in designated =oking areas. " ~.-,..aay enclosed, indoor area used by the qeneral ~~u'bli erving as a place of work, including, but *„iiot limited to, restaurants, retail stores, offices o 4"ftC..omamrcial establishments, public convey- ances,~-educational facilities, hospitals, nursing beses,U~-R3Ytcrzfsses; arenas and meeting rooaLs, but e:e2s~.~~rirate, esclosed offices occupied exclu- sivelr,bx,~..imokerr even though such offices aay be ~ri s itea""b,~r ~ nonsmok•e rs. ~ ~ . . Ssoking• areas aay be Qesignated bl+ pzoprieLors of public places. provided ttaat': _ ...vhere s+aoking areas are designated, existing physical barriers and ventilation systems shall be csed. to minimize the* toxic affect of the smoke in adjacent nonsmoking areas. " Current trends in state laws and local ordinances actually i racted axe the rxteaston af smokinQ restrictions to cover goverrYSent-owned bu.ildingr,, grocery stores, supermarkets and bealth care and.de2i.erT facilities. The major trend in the bills: ist.rodrsaed, reflecting the ambition of anti-smoking supporters, is& tAe: ezteassioa of restrictions into the vork- place, including officer. 11. 1S. 16. 17. •
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Para;raa.h Mum r r ~ 050-1* Reported enforcement activities appear to be the result of either official priorities set by the local ada,inistration or,-nore frequently,- LbCndoea efforts by local GASP chapters to obtain enforceeaent of the lavs. In Chicago, sMoking on Transit Authority trains and buses is punishable by fines of $50 to $300. Offenders are tried in 'Saokers' Court,' where more than 800 people were convicted in 1975. People who could not post the i25 bond had to spend the night in jaile tven those who could post bond often had to spend several hours in custody before cutting the red tape and winning release. Saokers have been taken bodily from trains because they protested their arrest. Ninety percent of the arrests have involved r.inority and lov income groups. Aovever, in most cities which have enforced public s:mok- ing laws, actions have resulted from private cacplaints and citizens' arrests made by private individuals, usually a+em!>ers of GxSP. Most reports of enforcement from citizens' arrests come from California cities. The laws of saost states do not authorize a citizen's arrest for violation of no s:moking lavs, but in Cali,tazAa smokers can be arrested by fellow citizens. I Yet t}ie• pr,i=ry impact of =oking restriction laws zzy the creatios•of' a no-smoking norm in. public places. The :~,.,~..•• « Co~.~+sissione~~t= Dade County, Florida, admitted that that ~ county's anti-sooking ordinance was. virtually unenforceable butfahed: ~ L' Fzt`vt it ;;;~ing Larally enforced1. St's~ thee people, the peaple°in the.elevators, the clerks in the stores'-a'nd, the nons:mokers in the check-out lines,' who bY,.;S2se1r re-arks- to offenders- are. enfoTcinq ' the lav. It's being enforced by people who want .~-~. f:~ to obey.the- law and I'd say•it-was 85Vto•90i• • ..v.w.~y,F ffe c t~vt.e e be The impact of.no-smoking.lavs.on•the cigarette market has not been accurately measured. - Iio.rever, to- gauge the impact it is helpful to rcaeaber.that.the average smoker-in the United States eonsuses 1.5 paeka per_.d.ey. _.If it is-•assueed that smoking prohibitions in public places caused the average sr%oker to eonsume one less cigarette per day, total con- su:mption in the U.S. would be reduc.ed by -1/30th. - I T8E #XDIGJIL ZAC2S In 1971, Jesse L. Steinfeld, M.D., who served as U.S. Surgeon General from 1968 to 1973, said: Lvidence is accumulating.that the nonsmoker may have untoward effects from the pollution his sraoki.ng neigh- bor forces upon him.... It is high time to ban smoking from all confined public places such as restaurants, theaters, airplanes, trains, and buses.... 18. 19. 20. 21. ' 22. 23. ... J
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! I T'here was no evidence in the speech, and there had been no evidence in previous Public HealthService (PHS) reports to Congress oos smoicing, and health signed by the burge on General (cosmaal~~ called. the Surgeon. General • s Repott). In fact, a prev£o"l7 published FHS booklet entitled •Smoking, Health, arQ You"• stated that the smoke from other people's cigarettes 'xasv make your eyes tear or ssay make vou cough, but it cannot harm you....' The next report to ConQress on smoking and health, the 1972 edition, for the fi[zst ti'sse cited reports indicating that a:nbient tobacco smoke could be harmful to nonsa+okers. The evidence vas not convincing and strong contrary evidence was oaitted. Anti-smoking groups liaae repeated Dr. steinfeld• s claims in foruas throughont tbe: tlsrtted 8tates and have expanded them to include assertions• about s variety of potential injuries to nonsmokers froa erewc-re t•m ambient tobacco smoke. The anti-smokers' claims that nonsmokers can be injured by ambient LEco smoke are not supported by scientific evidence. t2f . instructive to _exaeiin.e a few of these claims in the light ot,;scientific and medical ks~o4cledge. '~"~ Toxic "~-aneesa ae:tf-smokers often present a list of so-called 'toxiTt' substaacer trr tobacco . s:moke as proof : that a.mbOt*0 t.oL"ecsmoke can be harmful to the nonsmoker. ~". 0 ''l~qr ex~l- , cigarette smoke contains hydrogen. cyanide. Anti-smokers,may also say that ambient tobacco ss+oke includes 'side streakft'-s+ooke (t•ba smoke. which goes d3rectlyy into the air from the.~u, isg_.esaZ asd_tme cigarette) which has higher eoncentration~s of _some subwcaarces;.than the smoke inhaled by the soaokez *,F-^ These charges.ignore the .fact that first, the.concentra- tions of these substances in _ambient tobacco smoke are minute and, second, these substances -are. readily diffused in the air. A.llera: Anti-sesnkers often cocQlain.that _siany nonssokers are allergic to tobacco smakr- xSH, for exaaple, asserted in a recent subaission to tlke CfvSl' Aeronautics board that as many as 30 to 34 million Americans .'have a particular sensi- A tivity to tobacco i.oke.' There is geauiae =-«st;on w3.etber tobacco smoke has b.en sho%+ss to be or coataia aa s+l3eagea. Dr. Domingo Aviado, . Professor of PharaacoloW at tbe University of Pennsylvania Nedical School aad a:s, f:cCesnatsonally recognized expert, made the following statements: Paragraph Number l 24. 25. 26. 27. 28. 29. 30. 31. 32.
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ParaDraph Numbe ...shouM a. true tobacco smoke allergy be shoam to ezfst.. .rHi-ch hsc ~.not been•, done; it witld be quite rare. Lstimates t3ost• lasge nuabers of persons are allergic to tobacco ssoke:are unsupported by sdestific data. t The method of detersining vhether an allergy exists has not been oettled although many allergists make use of a skin test using tobacco leaf extract. 'Such skin testing is not at all com,garable to exposue to tobacco amoke. There is a major scientific difference between an allergy and an annoyance or an irritation. Individvals may be irritated or annoyed by a wide variety of airborne substances but not necessartTy all'ergie to thea.. tmat abouts asttcra.~Z There is no objective scientific evidence to supporr thee cfiadm that ambient cigarette saoke ad- versely affects. Lbe: liurW ffuartion of asthmatics. In a 1977 study by pfmm:,, lSieg3lasdi srd S1lveraan, asthmaties were exposed to cigarette saoke in•a•smalT` tes.z ehamber. The researchers were unab '~to"Tind any significant changes in their lung f un ctims.~ Cazt,ott'- N Wftm: ]not2hea ela,im- ist that the carbon monoxide i1~a.CSbAJC= aaawc fs pe:tsonoos,. severely affects a percoa's. 'tssiP.rrfbrca:acu' sadF'eaa cause card.f ovascular and res~~ torg~~uases. 0 *_vnerocsar,.studies have shovn that carbon monoxide concen- trations i4e elosed areas resulting from cigarette smoking are vesZn ln.e-aad dot notr pr.esent an inhalation hazard to the Aons~er.e a~ f~-TM~ actual carbon monoxide s~easmementg''krrd1studies= of-thr.- physical reactions of non= smokers (ep'%.Harke 1972). -- - Anto exhaust and industrial fumes -are, by far, the ma jor sources of carbon monoxide in the daily 'environment. To supl= t the 'cZsfm tliat smoking can produce higher'' carbon aesao.dde eosioewtsstions; anti-smokezs -have cited a study favo1-vdnga s.no,kds~g; Sn: asu autambile. Hovever, the volume of tdte- ear• invoI*ed+.am . oalr•73.8 cubic feet, vhi'ch is equi.aleat to a cabe with sides of •.2 feet each, and-all viadorrs and vents were closed. Ia 2977, the. T1Ut conaidereff a petitibn by anti-smokirg 4roops reTumelft as ra3- grohdfttSng tobacco caoking on the flight decSs.. -.1fte: -uca that exposure to relatively loti+ le.elss aff aazbon• moC=Mdift CMMWes substantial isapairments to .itmT 2}rai+rr+ amd, s+ervouvs sy+,atrss functions. The FAA care- fully ooesidered several studies and ruled that the irtition did not disclose adequate reasons to justify the rule it requested. 33. ~ 34. 35. 36. 37. 38. 39.
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. ~• :. ~::.~.w...., 0 © ~~. St is Snteresting to nota a fev carbon monoxide equiva- lents. Me automobile drIven 12 1/2 =iles- eezits more carbon monoxi_de than a 1.4-p~ack-per-day smoker contributes to the ats~osphere in an entire'k`~ar. - 1l itashington,- D.C.. Cflunsel of Governments study found that cars and trucks account for 92 percent of the carbon monoxide released into that region's air. The F1W measurements of carbon ssonoxide erlssions from one Soeing 707 In its 33 minute landing-takeoff cycle is 202 pounds, the same amount as e;aitted from smoking 1.3 million cigarettes. Vicotine: In 1975, two Barvard investigators, Iiinds and First, measured the concentrations of nicotine in public places in Boston, such as restaurants and cocktail lounges. They demonstrated that in 'public places non=okers could poten- tially consume 1/1,000 to 1,/100 of one filter cigarette per bosur, a level of exposure that has had no k,noun sezio•,is asso- ciatfom with diseaae.' In other words, for a nonsoloker to inhale the equivalent of one filter cigarette from ambient tobacco soloke he would have to spend from 100 to 1,000 continuous hours In a =oke- filled bar.AW% _NonsatokersNWith Coaproctised Health: Anti-smokers often az that ~zposure to tobacco smoke causes stress to persons 4~ with severe3'eomproar.ised cardiovascular systems. ~.~..~ ~ . . ~ caus~A~;Oelicate condition is presumed, it is ir~ossible to Establish a'no effect" level of carbon raonoxide exposure e: e-~--~+~ s + f or Ythese ptrstiiis, and • there is s=e evi denct that they. may be adversely affeeted to some degree by any exposure sufficient to raise the carbon monoxide blood level. ,~~.. . . This situation is indeed unfortunate.. Ho~+ever, reference 1...'i y:..d,. to this cati!gar,r of people as a reason for prohibiting s=oktnq ~' In public yli~es ignores'the fact that they may be subjected to discorSort and stress in the course: of their nor-..al daily en- coanters with carbon mon_oxide from automobile exhaust- fisaes and other air pollution. Zt'haB_ been stated thnt* the only ade- quate protection for these persons would be to iaaintain thea ~" in an •oxyqen-enriched"* environzent. TIE NOH=PROBLLK: " A study of cigarette s=oking in aircraft conducted Jointly by 8FV, tfie T1W and the Oepazta+ent of T'ransportatton eonclaaded that the inhalation of ambient tobacco saoke. aboard comercial aircraft 'does not represent a significant-health bszard to nonsmoking passenqers.' -The result of the study was first announced in 1970, prior to the time of Surgeon General 6teinfeld's statement that evidence showed ambient tobacco smoke could be harYaful to non=okezs. f 40. 41. 42. 43: 44. 45. 46.
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Para,graph NumSer . _% The ICC held extensive hearings in 1970 on s+moking in bvses. Although- the ICC decided to segregate smokers on the Lnris of annoyanct; it found that the aiserted deleterious effects of second-hand ssoke upon the health of motor bus passengers had not been adequately dezonstrated. Dr. Edwin R. Tisher, Professor of Pathology at the University of Pittsburgh and Director of Laboratories at the Shadyside Itospital in Pittsburgh, said in October, 1977 that a careful review of research literature failed to support the conclusion that ambient tobacco smoke represented a health hazard to nonsmokers. Dr. ?isher said:' The few studies that slght appear to be contrary to this conclusion can, in say view, be rather * readily dismissed for reasons of irproper experi- aental desiy-n and lack of practical significance. rar exaaple, s+me studies use unrealistic quanti- ties of smoke or fail to consider other sources of the agents being studied. Even severAl eeinent researchers and government officials ~..: ,F:..Y. who are weli~)~iovn for their opposition to tobacco use agree that publicr s~o~cing is not harmful. Dr. Gio Gori of the Kational Caticer~nstitute said, "If we want- to remain with facts and nist~~tb fiction, there is little danger of dis- ease to people-1yat stay in a room where people =oke." smokers sutter tarry dar.a ge. ~ ~ Stallones, an advisor to the Surgeon General's ~ . Retie y Co_rit.tee on Smoking and Health, recently said, ]ldYispr ;::.:>~ "in very dizect~teras there is no nedical proof that non• smokers exp;osed,,to cigarette smoke in ordinary relation with . . . . Dr. E.„2~i'y~er Haaaond, vice president, Epidezf ology and Statistir.r3:>'Reaearch, of - the Azerican Cancer Society and author of famous studies linking s=oking and lung cancer, was reported to have slnde statements to the_International Conference on Public Educa_tion About-Cnncer.in 1974 as follovs: : - . - Dr. Bas..~+ond stated that there was "no shred of evidence. that a non-s.moker can get cancer from 'second hand' smoke and there is a lot of evidence-that.he cannot....` He added that to suggest passive smoking (inhalation of smoke by non-smokers) could cause cancer is dishonest, ard that be vould be prepared tio -testify as.ssath in conrt. . • It is apparent that anti-s:mokers' claims-that nonsmokera a re subject to injury by ambient tobacco smoke are.not sup- ported by scientific evidence. . . . . 47, 48. 49. 50. 51. . 52.
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Paraqraph Number cfSECUZSr OF MCUrsFNTS The iollowing suqg stions"are intended to ~ guides for writing or speaking in response to anti-s=okinq argg,ia+ents on publie saaking,actions. It Ss.iaportant to rezember that health or scientific arguaents can be ineffective in coa=ni- catirq with the general public. On the other hand, most people can clearly identify with arquments based on freedom of choice, and many people feel strongly that the 'hand of goverrs,ent' should not interfere with their private lives. Restricting smoking in business establishments should be up to the proprietor. Lvery restaurant, botel, and other public establish- aent is presesztlY free to establish no smokinq -areas if this is.the desire of patrons. Zt should be the proprietor's choice based on.cvstoner demand and 'the marketplace. ' Tbe fact is that a majority of public ectablishments do nou'save no s=okinq sections. A survey by the Katioissl;~t+estaurant Association confirmed that few :+esebersthe public actually desire separate sec- tioasTtdiY` "Smokess aad aoruGaokers. ' i i . . , . . . . - . . . 'The public :ao''kina issue' can be resolved- on the basis of coM6ii`• couirtzsnr: ~~~bst 'las will shov respect for the wishes of. thoseLaround them.- .~ During'`t7~e, prohibition •era. this country learned of th~=great difficulty q+overnment. has in en- forcinq matters of social aorality and conduct. Unless the police go oa-rouads- to arrest an - individual as soon aa 'the person lights- up in a no smoking area, it vill' be practically impossible to enforce public smokin9 laws -."-- ef fectively.. To the extent that shop ovners- and other pro- prietors are expected to-be enforcers of these lavs, they will be subject to diff.i-cvlt dilemmas. If a saoker lights up in a no aao'king, setticm, can the oaraer of a restaurant ask the person.to extiaqnisb the cigarette without risking the loss of patroeage? S1. Sd. SS. 56. Ln ~ Zn light of serious U.S. crime problems, foolish to take police away-from critical it is duties m m N ~ 0 to determine whether a cigarette has been lighted 00 c in a no =okinq zone. Yet if such laws are not Ln m m ~ N N ON N
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vigorously enforced, their flagrant violation can bteed fczrther dierespect for the law. -- _ - ~.,. - - - - Hov can anyone iustify the cost of enforcino public ssoking 1avcT Taxpayers are usually not aware of the high cost of restrictive ordinances. !br exasrple, it was report- ed that a San Diego public smoking ordinance coat tsxpayers $20,000 merely to get the law on the booke in January, 1975. weplaints to the Police Department there cost over $70 each for the officer's time, processing, paper work and court action. rzV _- p . >. ~ ;:.=- zl~ Public smoking laws vill place a substantial burden on individual proprietors an3 om the econocry. This Is particu2arly trye. when public smoking laws zeqcire the ereetios of physical barricades, im- p: ovements of the air eircxilation system, and other tapital expenditures. The costs of coo- pliance xsth such laws can be substantial. In additi'on ~`""'many establishcaents may be so aasall that f}i.`Eannot effectively segregate smokers r . • aad . n.no~ac~cezs. zestqura nt•e econor..ic success.depends on r,axi-=. pe.~aX_tivur traffic. Restricting the use of z~ s.-:ala.,,.azca at that tiae can cause losses. C1 . jstogersalso . can become irritated, lror exarple., a smoY.ez_.A~rriving to find a line .raiting •for .. the sa4kin* g section, %6en the no smokinq section is ecptT; say be understaisdably angry. ithen- 4Vver E"pitron Ss tvrned away, the pr.oprietor . zfeks~g that cystonez's.b~ssiness: -forever. - . =fforts to attract conventions would be darpened by the risk that c6nvintiorieers could be Yisiecf or jailed for ligbttng cip in the wrong location.- Should an individual's sa:oking =n public be eriminally restricted br aover=gent sctions? : i I 57. $8. . 59. , Zs jail really the appropriate place for an individual whose 'crime• Ss lighting a cig:-- setis7 There are obviously many public annoyances to sveryone in their daily lives.. The 'bad'- or conflicting behavior and manr,ers of other . people in public places ean'cause substantial ov far vill aovernment go to restrict our private livesT. 60.
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Pars;raph Nurnber ' f . ) r M== irritation. The roise and fisaes of heavy trafftc,.tAe discatisfaction tovard public serv3ces- like sanit~fition s;nd law enforcaaent, the irritation from dirty streets, barking dflqs, noisy neighbors or even the weather can certainly be r,ere severe tha.n the diffused sa+ell of tobacco smoke in a venti- Lted public place. b?,ould lavs also be passed to ensure good srnnners and behavsor, and, if so, by whose stand- asds? Any effort to eztend government regulation into these areas wuld result in a siassive interference with an individual's personal life and freedoms. The public ssoking issue way be best su=marised by an editorial appearing in the Boulder Casaera, Maulder, mlorado, January 22, 1975): It•r mrre thing to legislate conduct for the protection of society--to restrict DefrsTior that endangers the life, health o~::4eafety of others. It is quite another ta eqislate against conduct that merely - a~nnags. Hardly anybody can avoid annoy- 13iW. koceb+ody else occasionally. When government gets one•foot into the realm ~ &0963iavior modification, the blue=law tTieket locas ahead.. Saokers' vt'rhes should be respected, too. 0 P Slse qam~',ora cf segregating smokezs is really a aatter of balaaclng the convenience asld preference of =okers :,:.::.s,...:;. aad ndns~sohers. .iLlthouqh nonsmokers certainly h"ave s:e~,:..-.t interettk"'that sust be considered, smokers also should be accorseodated., Z'hre best and Post effective nethod of balaactasf those.desires, and interests is through eramon courtesy on both sides, without tlie imposition of rigid a,nd unworkable goverament raquirements. This nation does itself no service when unrecessary.' sxial conflict arises from the -advocacy of rlestate.d and erroneous health concerns•. - - - - 61.
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. _._~._~.. .._....,_. can :deny the overvhe mSng statistica evidence t szfi.o.ki..ng causes disease? E Individuals associated with the tobacco industry olten_ are confronted by thought-provoking questions regarding sa+ok= ing and health, public seaoking and other issues which aake up the controversy surrounding the industry. In the past, em- ployees have not been adequately equipped to deal with these questions. Brown s Will,iamson prepared this handbook in an effort to inform employets with a depth of knowledge sur- roundiag the Issues. 'Tfie following section includes a series of questions and answers covering a variety of issues. These questions have been accumulated from aedia interviews and discussions with a variety of groups by Brown t Williamson and industry spokes- persons. The following igsestioas and answers ara not intended to make •spokespersons' out of Brovn t Williamson employoes, but they are Sntended to better inform our managers. : Does smoking cause lung cancer, emphysema, cardiovascular disease and. bronchitis?• No one s :o s. 6c3e=tiffe research has not established Lr....-.,~ that siokiiig causes Sllness. We all know some scientists have sfid..fboking causes illness, but many respected scient~s,j.g,*elieve cause has not been shown. Nore. research i~ needed. l The case against- smoking is based almost entirely or. inferelkces"'~tram stat3sties. But most scientists will-- agree thrL--stati~t~s a-e-~--*atioes cannot establish eause at~d tffect. Statistical associations are only clues dh3c"1'id show the. nued- for clinical -and laboratory experia6s:s.: There are• other- flaws -in- the statistical arguments, such as t2:+e reliability of the data. By the way, there Ss a statistiea2*'association- between lung cancer and the use of electric rasors. We needl more- biological research. When you look at lserrqs tikea from smokers and nonsmokers, it•s obvious that smoking has damaged the lussgs of the smoker, as compared to the lungs of the nonsmoker. This proves that smokers are damaging their lungs. - Perhaps you•ve seen t?ie rather grisly- exhlbit set -up bby - the )laerican Cancer iociet= sdicbz contains two specimens of lung tisave, oae .taich Ss sieooth with a light cream color and tbe otLe= .lticbt bas ss;sts and -is coal black. one lung is said to be from a smoker asidthe other from a nonsmoker. You can guess which is which. Zhe exhibit is deceptive because it represents that the differences in the tissues are typical results of saoking. This is not true. A former president of the Oollege of American 2. 3. 4. S.
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. o.ay.o1... ..v...w. P_atuologists testifL,e,,QL before a Congre_ssi~al _Coasittee tlsat= 'I have e~ifielL' thousands of lungs• both Qrossly and ssicroscogicaTlY. I cannot tall you from examining a lung whether or aot its former 2Dost• had smoked....I state flatly and' ts+.qQivocally and ectphatically that cigarette avakYag .Rf21 not turn the lunq black.' Do you deny that ssroKinq•is hazardous to your health? Ho one ho+s. Meaf respected- scientists believe that a causal relatioasTrig between cigarette sa,oking and 111ness has act been proven. Do you claia that the benefits of smoking outweigh the risks? Whether or not bm secRe~ isa a, choice • to be made by inform- ed adults lraseb orr ZbdividuaL assesr-ments. Obviously aany people ehrive s+one valua~-frem s:aoking because it has been a popular• eustom: for,- Mundreds of years. Co2uasbus found the 3merican Indians smoking, and sales of tobacco leaf supported t3za: Jamestovn. Ca•lossy. tiov ea~ snviie' ~ ypcn~ l&sov+Yoa are causing health problems to nonsmokers ia t?ie same rocm? Smoke ambient air is not harmful to the health of the~4asawker. Lven medical experts who have been 1 *?+atb, the charge that smokinq causes lung sociated ri~;ncer •Ue ssoker have said that satoke in the ambient ~a.i'`r has no .influence on the health of the nonsmoker. V ~Yr i~..,, : 1~th7y ar1//~s~nufactur.er.a producing more low 'tar' and s,icoti`ae eigarettes• and' advertisinq- those brands heavily S-6aere is no health- risk involved in smokin ;,~i~b •taz'. anq aicotine cigarettes? Cigare•'•~facturers are producing low 'tar• and nicotine cigazettass in: usAons*_ to consumer demands for those prodocts- n'ssa 2 1384 o:r of the growth of the low •tar' segnent Ss oorrect. Sales of cigarettes with less than 15 uflliqrams 'tar' content Sncreased by more than 50 percent In 1976 and comprised roughly 25 percent of the total ciqfrette aarket in 1977. Only a few years ago low 'tar' an& nitotine, cigarettes were an S•nsignifi- cant part ot tRs: market. This very rapid shift shows the cigarette s;neafactnrersi eagerness to respond to cistooers• changing preferences. The advertising e4hasis sL.,plg m3Ilbs,c t3ie• shi2L In consumer demanQ. Ib cigarette 2Lts said. there is no health risk invol.ed 2w a=dCiisg;i?ritgh •taz` and nicotine brands. As with the qpemtiban oJT ss;oking aad disease in general, nooneknoww- Bov much annei does the tobacco industry spend each year in advertisiseg to attract new smokers? None. Cigarette: adyerzising; is brand advertising. Its purpose is ccnpetitiion against other brands for consumers, not to attract new ss+okers. , 5. 7. 8. 9. c 0 CD 10. ca N OP N O
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. i ~ .~.,..~ ?` ..; ~ ~. ;•- Qr Niae aut of tea seokers say they want to quit. Shouldn't the cjpverrmment help Abesa bY sponsoring- qui-L-amoking pro- grasvs? . As Eacb adult individual aust make up his oVn mind whether to saoke. The tobacco indust.ry is not interested in preventing anyone tsom giving up cigarettes. Many private stop-smokiag progr.ams are available at little cost, aad literature which describes ways to stop smoking is aus:'-3~+2;w faee: fiam several sossrces. liany people have stxrpped' vittioct.- a• formal program. It Ss not necessary to spend taxpayers' money. Q: Doesn't the cigarette industry feel aoa+e responsibility for the $8 billion cost to the United States for health care and• S1B billion• cost to the United States in loss of prodsction. ~e ezosed by cigarettes sold? A: The charge is bawed' on the assuraption that smoking causes illnesc;, 23nt eaussttnn nas not been established by sr.ientific research. There are other difficulties with the•figures- For eza~ple, the figures assume the need fet henlth: sezvices Included would disappear if ` ao o=`:::7. sae~e& drgerettes. With our aging population, ~~•4 this ~iar3ikely. ( Q: Doe=•%x:iha nons:eok,issg..ma jority in this country have the ~ riqht ta ote that cigarettes -should rot _be smoked: in A: P~io: S1ich a law would be coapletely u,njustified as a t ~F#snctivmr%a government In our society. Tolerance is the carmeratone of this country's democracy. Zriere- is, no ~,eY2t2i danger to nonsmokers -- the problem is anaoyauced This is a social matter..r'hich must be left to,~people to:resolve in social •situations throuq~i."iii~ual courtesy. Laws dictating personal social conduct,, arrests, fines, and forced segregation are t ~c~r~ita~ aESas of- dealing with a social sitvatiorr. Zf' there.ara going to be-lavs .prohibiting s:oking in public placei, there should certainly be laws prohibiting strong perfume, body.odor, .and untrained pets. - Q: What voula• you tell your child if he asked you whether 2:e should sa+oke cigarettes? A: I would tell him to- wait until be was an adult and then - siske• sip 11~@; a+s• min3: 16Yet3iex tci smoke Ss a choice ?oY the ItratdifUzel and a choice that should be made only by 3afarmmlpffi Mdu2.'ts . 'ts. - Q= 1rc^~~11C p~laccar ~'~ :, ..' "' sow db• you- account for the fact that so many government aad scientific societies have passed resolutions assert- ing that smoking causes lung. cancer assd other human diseases? 11. 12. 13. ld. 1S.
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r.l.yle~ni rVuu.aivi f<~:;...... i~,...n.~ i+Lr%riC2t:::< As The •tart- that gove~ent bodies and scientific societies have passed such resolutions indicates that the con- tinuing controversy over smoking and health is political, not scientific. Scientific issues in the medical field are settled by definitive biological experimentation, not by the passage of a resolution. There have been no exper- is+ents proving that cigarette smoking causes illness, and that is why activists in goverrsa+ent agencies and scientific organizations have resorted to resolutions to establish their personal opinions. Don't all of the medical experts in the United States agree that smoking causes lung cancer? A: Rs a satter of fact, saay scientists in the United States hold the viev that saoking has not been' scientifically established as a cause of lung cancer. They note that no one kssovs the cause or causes of lnnq cancer. Vor does anyone knov the mechanism or aechanisms whereby this disease develops. Q: Yon't yau'oncede that smok.ing. is a prime suspect as a cau.e •of lung cancer? ....:.!qs.. As Scien4stsigenerally agree that lung cancer is a sultift-et-gial. disease, i.e., it has been st,atisti- cally ILrsotiated vith many factors. Zhese .include occupation"; geographical location, sex, uzbanisa- T. ion 0Q~everal others as well as smoking. But c ~uspeefs~~ ays not a mean c intthe causation n of o~ =ese. disease is'as yet unknovn. ~ Q. Aren't-,there cancer-causing agents in tobacco amoke? •Don!t thty explain- the association between smoking _ r~xa 4;;x and lusiq' cancer? ~-~ .. . As Tor s+ore t2un- 20 years now, -cancer researchers have been trying to tdentify caepobt:nts in tobacco smoke tbat are harmful to• huaari health. • To date, however, they have not identified ariy 3.nqredierit or group of • irgredients, as foundrin tobacco smoke, that are diseise-producing in bucans. Q: Doesn't tobacco 'tar• produce cancer in anim.als? A: Contrary to popular belief, hum.an smokers are.not _ exposed to tcbattb mohe eoz,densate -- zecsLVnly referred to as •tar.` Tobacco 'tar' is a laboratory product that is produced by passing tobacco smoke through a cold trap at an extremely lo;w tec+perature - a teeperatuse that husan smokers simply do not experience. Iience, the relevance of animal experi- sents with tobacco 'tar• is.dubious. And it should be reaembered that, despite. great efforts by many scientists, human-type lung cancers have not been produced in laboratory animals as a result of ex- posure to tobacco smoke. I . 16. ls. 19.
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a+~y ~_`'s 2 I Q: Hasn't lung cancer in wmen begun to increase as they have begun to smoke more? A: 2%eze has long been wide gap between the incidence of lung cancer in sales and fe=ales assd this gap has not been satisfactorily explained in terrss. of smoking. As to the recent reports of increased cancer In women, soa+e scientists believe that this disease has been increasing In women for many years, which is not consistent with a smoking-causation hypothesis. There are other eonsiderations, ftr exan;ple, the lung cancer increase reported in wmen Ss tssually of a different type from those reported as predominant In men and; in fact, In ' a type not 4enerally considered associated with smoking. Q= Q= Isn't nicotine known to sause disease In humans? In 1964, after reviewing the then existing literature, the. Advisozy Cbc.a.ittee to the V.S. Surgeon General concluded that the small amount of nicotine absorbed by tobacco use 'probably does not represent an important health ha=ard' to humans. Since 1964 there has been no scientific evidence which wuld warrant a cha"e,K'fn this conclusion. L b'aat &'b o 'qt heart disease? Isn't it pretty vell establi*hdd that smoking causes-this disease? A: Beartrd;iae•ase is a aultifactorial'disease, 1.e., = ore w~ich'*%as been statistically associated with ~~ny f+ctors. So far, more than 20 factors have y~;;~:~R . . . . . . . . . . ~ b'een 3"d~e~ified. - Factor does not mean cause. No ~one knoirs~rhether 'any of the observed factors plays a role in the causation of the disiase. Recent stvdies of~ identical twins su99est that a person's genet' c: " ckground may be the most important factor.. Otherestpdies indicate that a person's personality type lst~h..e prime factor:.. Q: Wsat about people who are'allergic_.to tobacco smoke?. Bow oan they protect 'tliraelves from.smoke In the _ atmosphere? A: Although many people talk about tobacco allergy, it has never been established that tobacco s:%oke allergy exists.•Scientists simply_do not kno;r whether or not tobacco smoke -- as opposed to.tobacro leaf -- con- tains allergenic eamponents.- 4• Ar P1zVn't tigatettes tddictive? - - It ts difficult to discuss addiction taday because. people apply the term to many different circumstances. Some people say they are addicted to chocolatet others say their children are addicted to TY. ' The 1964 SSurgeon General's report concluded that cigazettes 20. 21. 22. 23. 2Q., Ln ~ m m ~ OD Ln m W
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. l I should b. cl.aasifieqps. habituative, likesoffee, and not sd3ictive„ likw a+nrphir,e. Many people have given up smoking. Nhy•db so«s people continue to ' smoke %6o say they want to quit? Why do people con- tiaue to overeat when they say they are too fat? Isn't s+oft= cigarette advertising an Smproper busine:s practice because it has a heavy impact on children and: lxsads, th®. to smoke?• Cigarette advertising is intended for adults only. Tor axample, cigarette advertisements show no models who are under 2S years of age, no entertainment cele- brities and no atliletes. Ci garette advertising can establish hund: loy,a2t,y -- and that ie. its purpose - but 2t dber.rot attract rev amokers. No- studies have shown that cigarette advertising causes children to smoke. Dr. Lrnest L. Wynder, president of The American 8ealth ?oundation, said he did not believe cigarette advertising Dad zaich influence on smoking. What er_est_*1v **: wasm IieElt sa,a.zs.+ered by the 1964 Surgeon Gtinera?"sy~epert~ A: Many qons were left unresolved. Why, for example, do nonsaetkAs fall victim to heart disease, lung cancer and ot~s~iseases frequently associated with. smokers? . If, as somr,E.anti-smoking groups claim, cigarette smoking ~hit` the~ 3ar cause of lung cancer, why is it that the ..-• ~Yst ~oz~ty of the •heavy' smokers-never develop- the d".tiease2.~ifiy hasn't independent scientific research been able tt„deotifr any.one or cembination of the thousands of of- as faund irs• cigarette - =oke as the cause of any particular di•seas+e2 1Ba tn- more than forty years of resear~5"~isn't ariyone Deess able- to reproduce- the type a = acer aseociated: vith satoking--thro~ugh tobacco of lung ~ smoke ~a3~tion--in laboratory anirsals? s__= Wi11 tne ss+v~M ent succeea7 Zhe aati-smoking sovement is actually proposing prohibition. According to Dr. Peter Bourne, Special Assistant to the President for Healtli Issues, such proposals are not realistic;. Va remarks; ta the Ad Soc Committee on Tobacco and Saoking Research of the American Cancer Society on Novesber 10, 1977, Dr. Bourne said, •Because of the political, social and economic ramifications, it is un- zealistic for zss to svggeat a tlabarro prohibition as i feasible ahazb tsa~ aard=.: that campaign would bring into ques.tbrisA aua ararr ccmd2h121t7. It is `there that we are oa ara ~t; grotsr4V Viile prohibiting use of cigarettes iir public places would please nonsmokers, it would not necessarily reduce overall cigarette con- suaption or reduce the health consequences. We have done little research on the hazards, if any, of other people's cigarettes.' , . ...«~...~... ............ 25. 26. 27.
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Para;raph Number . Q, What i_s the tobacco_ Ap~stzy doing to helps.esolve th• smoking~and health controversy? a: In the last 24 years the tobacco industry has provided more than $70 million for independent research regarding questions related to s:aoking and health. In sa ny of these years this comaStment has exceeded that of any qcvernnent department, and has been substantially more than the researcb expenditure reported by all the voluntary health associations, who spend a major portion of their donated funds for administration and for po blic relatioas campaigns. Zhe tobacco industry is ccaitted to advancing scientific inquiry in this area. Q: Do t2u tobacco oc:apanies control the research, they sponsor? A: Absolutely not! Zlie coamitaent of the tobacco manufactur- ers to resolve the smoking and health controversy has never been fully appreciated. Grants are made rith no strings attached except a pledge to apply the money to legitimate scientific research. Ea ch researcher is free to publish his study results, whatever they may be. ~°-~M r Q. Does ~'`t ~ther your conscience to sell cigarettes? ~%: :!,MC!'6AC A: Abaolutel ~not! Zhe tobacco S.ndustry Ss a $15 billion indu.t_zj~ affecting 17 million people. As far as the health"qflestion is concerned, no valid research has eyer estaSlished that cigarette smoking causes illress* r "Keverihe s, every pack of cigarettes carries a.rarning ;=iibelres required by law. A person would have to be •cave:;:4+rtller' not to be aware of the warning. We live ind Mork Sn a country 'which supports the free enterpiTst. system. It gi.ves its citisens the freedom of choiosY.) We should continue to enjoy that freedom both ~is~~.6ou.r business and in our personal lives. M.y~ai. . . A'lMWiy,'~ • . 28. _ 29. 3 0'. }Nr;?!7::0 t. ~ 7_ _"-_. ~ lJl F-' ~ ~ l F-' W U'1 ~ ~ a. 0 I c m oO
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SliOT.ING AND HEALTFi -ie.. THE OPEN QUEST2ON I . I -i Por many years, certain individuals an d organizations have claimed that smoking causes a large nu:mber of diseases. Such claims are largely based on studies which have reported statistical associations between szoking and various diseases. ' 8ovever, suc?a associations alone can never establish cause-and-effect relationships. The s,ost that such data can do is to indicate areas for further scientific research. Un- f ortunately, scientific data that contradict the popularly- held belief that smoking causes disease are generally ignored or severely criticized without adequate justification. It has become easier to ind3 ct smoking as the sole source of our medical proble:as than to confront the data which show an existing scientific controversy and the need for further well-defined objective research to establish the facts. The following discussion will highlight socse of the topics men- t ioned abovr4~4 r ~ SKOKING AND LUNG CANCER 3 The evide'nte cited to implicate cigarette smoking as a eaus, of l~~ ncer has been provided primarily by statistical atudits, such as the Hamaond. and Horn survey of vhite. American men~i'nins~sLa~tes. However, such studies have been- seriously questioned~ P'o'r example, in 1958, Dr. Joseph Berkson of Mayo Clinic observied, that 'Gancer is a biologic, not a statistical, problem.- ,X.z~za) recently, a Sritish physician noted that 'the x~ eauee of eaacer of the 2ung is not kssovn. we have only sta- tistical i:iftietices-and forecasts.... Until it ia. discovered no one whoA,s''2ties scientific evidence. should assume that ciga- rettes cause cancer of the lung.' In 1977, a South African physician who reviewed some of the original statistical studies which are used to support the claim of a causal relationship discovered errors in the analy- sec of the data. As a result of these discoveries and other observations, he concluded that 'The smoking hypothesis has received eephasis which it really does not deserve.' He added that •This hypothesis has to be abandoned.' , Qt , One of the most pert3ar.at Sact.s to be kept in mind when claims about saoking and lung cancer are considered is that some reported statist.ieal data are-not cqnsistent.vith the causal hypothesis. For ecasaple, researchers have reported large variations 3n lung cancer mortality rates in a nusber of countries which cannot be explained blr-differences_in 1. 2. 3. d. 5. 6.
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tobaeco_eonsmPtion. Austria, Belqit.~a and Tinland report higher lvagt cancer rates ~fi`it eonsiderably lower per capita tobacco coaswption than the United States, Canada and Australia. _ ... Iung cancer mortality rates may not be 'reliable because they are based on the often inaccurate information regarding cause of death as shova on death certificates. This conclu- sion is supported. by the finding of re.earehers who cocpared cliniciae:• ddsgpoaes: ot' Iag. cancer with autopsy results and fann& seri'ous• discrepanefes. Such errors say have resulted ia part troa the clinicians' difficvlties in deter-• mining whether a cancer originated in the lung or had spread to the lung from another site. said to. be of The zeported increase ia lung eancer 7. 8. , 'epideaic' proportions, may be greatly overestizated. ~. `- ~ Lxperts have suggested that the reported increase may be an artifact created largely by improved diagnostic techniques. .f......M,'-y,.:;.,.; f~ °-^~ The recent intense interest in lung cancer may also have ,~._.. resulted tm acr. awaz-. at= ;i s af the disease. t XlAf Dc-+tribmenes i'ts: vhfc3t: 2aboratory animals are forced to inhale toba.ic~oke have failed to prove -the hypothesis that smoking eaote.s„'2ung cancer. Not only has the relevance of such experii.eats been.questioned, these.techniques have: I%-::~ , f a i le d to prod '^-~uc ~ • e in aaiaals any lung tuaozs which ase of ~--~- '~ the ~,tne associazed' witbr hc:wan smokinq. ~ I ch oa_,,,the interest in the causation• theory 'vas qener- ated by akiz-paintinq experiments in which t=ors were -pro- d dueed bt pa'~ating 'taz' (a laboratory prfldu~et obtained by passing tnbacca.;saaka. thrasgh- a cold trap at extremely lov YM ~• teeperatures# o L'3!s shaw b.ci~s of animals. Bowever, these expezis+eats~~lr;einappropriate for zo4arison Lo the iishala= ',Y tion proces~•a~t~•himans, for several reasons. The skSn of an animal is. avt at- a•1'1' siail'ar-to •hsssan lssng 'tissue: rszther- s~ ore, the ~~fi*~~** S~**S ot`a'tubstance -to the skin is •quite • different fzom inhalation` linally, there is' ao '"taz. as ~~ such in tobacco smoke, and even if •there vere, the quantities used in suclh experiments are unrarlistic: ' - ~% . - . ~ ~. In an effort to determine why soae people develop lung ~ cancer ivhile others do not, a umber of scientists are study- ing ing the 'constitutional hypothesis.• Z'his hypothesis states that some people who have a hereditary predisposition for luag cinces also have a heraditary tendency tovards smokinq. It is sappext:ds. 2lM- snse.arch vhich shovs: that smokers differ frm aoa-ss4kesss ilrr. siaag physiological and psychological charscterist,ics. • t I 9. 10. 11. Occupational and environmental factors, such as air 12. pollution, have also been found to be associated with lung cancer. Ooncern has been expressed that the concerted effort c~ 0 0 a m N n 0 P
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. ... .. y . ..,.. . . . ....+.... to prove that smoking is the primary cause of this disease may be diverttag attention ftam such factors. - - Any serious discussion of the claims linking smoking and lung cancer rsist include consideration of the folloving tvo facts: 1. Lung cancer was an established disease long before cigarette usage became popular. 2. - Nost ssiokers do not develop lung cancer, while many non-smokers do. SMOT.iliG AtiD CORONJ.RY 1D:RRT DISE&SE (CHD) In efforts to deteraine the cause of coronary heart i-} disease, researchers have examined a variety of behavioral, ical and environm eiolo ntal factor rhi h hav b h e g ..~ p y e s . c e e n associated vitb an increased risk of this disease. Cigarette : smaking is considered by some to be one of these so-called 'zisk factcrs.' . iaA ^! ror ex~p~ej the 1976 Public Health Service Report on : . ~ ~s s ~~ .... .: > ueaces of b~okin describes amokin : The Hea1tD G`otilie as ' one g q g ~; of the aa jo~ .Sa&tpendent CliD risk factors.' Hovever, avail- able data da~.=i0s~p:ovide :eonsistent support for the identifi- ~ation of s~oki%S as a zisk factor.. For,exaaple, an inter- ' national stetc~y,,,by Eeys found •little or no` relationship ~ .: « . y-~: netvamd cigaret~e s:mokinq and coronary heart disease in Fis~ltp¢~ th , e,Lherlands, Yugoslavia, Italy, Greece and Japan. thezmoze several studies cited to su ort the role of Fu pp r ~ ~ tr~~ smoking in ~~velopment, of coronary heart_ disease. contain ~ data incoasisteat vith.this.claisa. In one such study, coronary her disease mortality rates actually were lower in ex-smoke n in nonsmokers. }"""11 W -- -.L.aa.- -f..A1-A - w...wS.~.~ w4r w*U-r f...F- 3:y...ES P""' t b d h d hi h i i l i w appear o v preva ..-. c e assnc ate t an ricrease ence of 0++.~•. • _L 1_ Jf _ i ii ~64A- Yi-G--i. .V. _W..S/_r., -V...~ •~ VYYi.7GY specific behavior patterns that appear to be associated with ,., , T l i d Thi b t C~iD - h i an eace o acrease preva . s eoronary prone av e or . .- pattern, called Type A, is characterized by such traits as aggressiveness, a:mbitiousness, tSese consciousness, and a :1 chronic sense of urgency. Other scientists have concluded that ;t=12-:-~there is a strong genetic corsponent in the development of CHD. Studies of twins and familial coronary heart disease patterns li"e proVided scpport foz this theory. The stresses normally encountered.in daily life also have been positively associated with coronary heart disease. Re- searchers have found.that severe financial problems, occupa- tional tensions, and life-style changes have produced physio- logical alterations which may lead to coronary~lesions. One 13. 14. 15. 26. 17. °v,° -j 0.
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i ; lnvestigator, Yho •tudied the teortality statietics of 100,000 physieians .ebo reportedl X_had quit .eaoking. ^-"=nteds It is evident that there has been no increase in the average age- of death among physicians during the past 16 years. ...Xhile it is possible that the full results of this abstinence (not smokiag) have not yet been seen, the resolution of uedezlying, stress rather than smoking per se say be the• crucial factor. ...These findirgs are consistent vith the apparent predisposition of doctors to coronary heart disease, a vulner- ability which can be attributed to the stresses in their way of life. Therefore,, ttlc i1ndictment of cigarette smoking as a ma jor risk factor ia coroaasy heart disease aqrtality is contra- dictory ts scrh scieat1:f:Ls fact. ' . QRIR7IC CBSTRI3CTZVE PUIXOKARY DISEXSE (COPD) ,A ,L;. CIaiss?~aQr? B*en• aad'e that cigarette saoking causes COPD, a terr.i whicb'"s.e~prs priaarily to chronic bronchitis and ~ puleaonary e~4tP=. Such a claim was rade in the aost recent Feport on sad" by the Royal College of Physicians of: London g,-or Health..' call&4-O"9c ft . ~bve.e xbese claS.s are contradS cted by statenents of scientists ~""governmental officials who note that the cause or causes aL-t2uae chronic lung diseases are still unknown* For exassple, a s~etial zeport supplied by the Department of "qrBealth. L~~n emrd! We&',_Oase for use during consideration of ~ Its 2979 ~emett tiz~scates that 'the exact cause of `c ezphyse= i.~Ae~qfasarn . . . .' ~ Such ststarsents; are. supported by an eximination of ciga- rette rette eon~tinn: g~nsr• which exhibit no consistent rela- ~w tionship vdth CWW ' iircfft=sce rates and aertality trpnds. This have never is illustrated2l~y the fact that individuals who ~, 1no CMPD but:, ssany saokere do not. lbzeover, large ~ saoked de.e A:;; ; international' variations in COPD mortality rates cannot be ex- ~~ ; plained by levels of tobacco use. Certais animal inhalation studies have been cited as proof that smoking causes COP,D. Bovever, serious questions have been rafsedr abaut, the- adequacy of the experis+ental tech- niqves enplor&ac-dS ttee zmevance of the results to aan. !or , exaa?le, aaatnass atJtarstursl' differences identified in the respiratory systeszs of aaauaals may coeaplieate the extrapo- lation of aaimal test results to the huzan situation. 8ome researchers who have exarsined the reported in- crease of NPD in cigarette smokers speculate that it may be 18. 19. 20. 21. 22. U 23. o 0 or m w a 0 m
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. Paragraph NumDe the result of tasic p.y"ologieal andlor phys1oloQical differenees between smokera and non=okers. Tor exarple, even when saoking habits are sir„ilar, blacks seen to have a lower Sncidence of chronic bronchitis and ecphysee:a than whi tet. Oetupatfonal exposures aay also play an iaportant role in the development of COPD. A scientist fesaliar with occupa- tional exposures recently wrote that the available evidence does not support claims that smoking is the asn jor hazard to vorkers' 2ungsr he concluded, '. . . it's their jobs*vhYch seea,. to cause their illness.• In recent years, ambient air pollution has received increasing attention as a aa jor eause of COPD. Lave and Seskin have concluded: tftat •mortality from bronchitis would be re- . duced br about SA71cf if air pollution were lowered to levels currentl3r preaas.Tlng. in. urban areas with relatively clean ais.• They contiaurs- ?he studies document a strong relationsbip between all zrsWiutory disease and air pollution. Zt aess,1 L~y t3iat 25a• of all morbidity assd mortality due t6'tespiratory disease could be saved by a 50% abate~l,~n air pollution levels. . Theretore,;claims that smoking causes COPD :aust be sezioutly consi•dered' in light of this evidence. S,rloT.2 Nc AND PREGli?.NCY : I',- Cla:as L~~becir made that smok.ing &iring pregnancy causes adversf effects, in particular that s=okers are aore likely to l~sye';1ov-birth-wzight (LSW) infants. sooe claias have even beio-:ioade that seaoking increases the risk of con- genital saaR-orsation and perinatal mortality. Bowever, these claims are baaad~ on. statistical data which are at best equivo- cal and, , eamot prove causal relationships. lioreover, t?yere ss~e data which are inconsistent with certain of these elai.oe.. Lov-Eirth-xeight Infants. A biostatistician who exe.rined and was imable to accept the causal hypothesis contended that ~ the data he studied may suggest the existence of soae other cosaon factor which causes wmen both to smoke and to have a bigher gvporttoL of LSW. isifants. Yetvsha3ny advsrced this theory ia a 1S= repo=tr dkhicribing data which, he later said, •almosrt eltsciL the argpsaent against causation: • This oonclusi'on follovs from the finding that women who eventually became saokers produced a large proportion of low birth weight infants even before they started to s=oke. ... 24, 25. 26. 27. 28. ~ 0 0 m m tv Ok O b
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?o explain these findings, Yerusha2sey speculated that the higher_ineidence of LBH Lnfants_among .eaoking-wssen Nay be due to the smoker, rather than the smokinQ. . ~ ~ ~: National 1lcade~ of Sciences Committee on Katernal Nutrition, ~' concluded in~7fl, '. ., smoking is. not significantly ~~ associated with excess fetal' or_ nepnatal mortality. .. .' ,.r...,.,:• . . .-~: .r. 29. 30. 31. 32. 4i :. Con4enital Malformation. 'Beveral 2arge-scale population 33. A»: ~t= ~~'~.....,..: studies also have failed tA establ.ts.h a'relationship between smoking a~d congenital malfozoatieo. In a study of 51,490 pregnancies, for exar~le, the 34. ,sOntario Perinatal Mortality Study Coamission found 'no evi- "~4dence that ssoking was associated with a higher incidence -cf laongenital -lfczaatians." rrsL.=l+, lj, ind Sa11SnQs w.~,rtb both reported that their studies sha+ed that the risk of congenital mnlfors+ation Sn LSV infants vas lorer for saoking than for nonsmoking mothers. ?he available scientific evidence does not warrant the ronclusion that q cansal relationship between ssoking, LBW, increased perinatal mortality and congenital s3alformation has been proven. Yerushahy's finding are supported by the results of other research projects, including two studies in which the researchers concluded that smoking apparently does not cause LSii but say serve as •an indicator• or 'an Sndex• of some other factor or factors that sray be involved. self-selection hypothesis.• The need for further research an the relationship between saternal sfloking and L8W was reeognised by bilvera.an Sn a report oan her study which had been designed to deteraiine whether smoking causes LSW, or whether smokers are •a self- selected group that differs from nonsmokers in ways unrelated to maoking. ...' Although she .aote that her findings were not r»nclusive, she observed that 'TAe direction of the observed differences in nean birth weights Is more consistent with the Although these studies have failed to disprove either ithe causal or aelf-selection hypotheses, several have shown that sookert~ infants appear to be healthier than non- s.mokers' . Ytsiis~almy, for exaeple, aoted that LBW Snfants of smokers 'ar*-aur.h healthier• than those of the nonsmokers and that the 'hea2 h3.est'•low-veight babies were born to couples saoked and the husband did not. _ in which thf ~ir'i ' , ~ `Increa~'3~erinatal Nortality. Scientific evidence does nott support ~'the claim that maternal smoking during pregnancy is~caUsally~~isabipiated with increased perinatal mortality. Several larqe studies, including those by Yerushalsy,. tlnderwod, Zli~e Ontario Perinatal l0ortality Study- Cbaslttee, Rantakallio~aD4"v"'='argett have foes~d ao Ssscrease in the peri- :rate of infants of smoking s~others. As the natal mortality 35. 4 a 0 0 m m 0 r 0
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I t cicAPX-rz swu tzxsPOrta.-rs ~ Dcspite auch repetftion o# the claim that-eertain sub-- • stances in tobacco smoke are harmful to the smoker, it has not been scientifically proven that any eoVonent or coc.hination of eorponeats as found,_in tqbacco amoke causes disease. These claims, .rhich focus primarily on •tar,• nicotine and carbon aonoxide (CO), have led to proposals for estab- lishing anxiaum levels of such substances Sn tobacco smoke. Such a rec=zendation currently is being considered by the Departs.ent of Nealth, Lducation and Welfare as part of a major anti-sookingInitiative launched by Secretary Joseph Califano. The follotiring discussion describes some of the inade- qaacies of the scientific evidence for the claimeh health eSletts of tLes.a three substances. •Tar.' There is no 'tar' as such in cigarette smoke. The substance oalled 'tar' is actually a laboratory product obtained bynco ~l,~.lecting the particulate matter in tobacco smoke. Thrdly si=ulates what huaans are exposed to in the soolfi:4process. That is why quotation marks are often ased:%rciUnd the wrd 'tar' when referring to tobacco smoke. • ~Tar'Lis~ t smoke. There is no good reason to asstisae . that„sny biblogical activity of whole coke can be accurately det~riminedi"by studying 'tar.' The chemi cal.and physical.- .- a changes necessszily: brought.about in condensing the smoke and applyiq~the substance to animals may well produce biological•resats completely different fro© any that may oca:r drsrisg'~"~,i ioke iahal•ation. Ricotia_e...Nieotine has historically received-as mich - experimental attention as 'tar.' iiowever,.aicotine# in the amounts found in tobacco smoke, bas.not been scientifically•-. establisbed as hazardous tompokers. Lven the-196< Report to the Surgeon General on Aaeking-and-Health concluded that aicotine as found in tobacco smoke-'probably dQes not.repre- sent a significant health problem.' Af ter thirteen years-of Intensive research, no data have been-developed'vhich would warrant a change in that conclusion. Nicotine has no krown chronic or cumulative effects. It is rapidly absorbed and metabolized by the human-body into ot4str simpler substanoes which exhibit no-sstablished baaa.ful pLaxmacological activity. According to..the 196e-Report to tbe 3brgeon General, 'Nicotine is rapidly.changed in the body to re2ati.e2r fmactive substances with loti+ toxicity.' respite these stat:ments, some smoking opponents have claimed that nicotine causes cardiovascular disease. However, 36: 37. 38. , 39. ao. al. 42. ~ ~ o, m ~ CO cn 4 3. ~ OD
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Pars2raph Numbe f : t thisslaia vas clearly eontradieted In testissny by a govern- ment witness at the 197VhearSnqs on cigarette smoking and ' disease. Dr. Theodore Cooper, tken Assistant Secretary for Health. Department. of< 8ealth, Education and Kelfare, indicated that he: coasi•dered' ssokinq a risk factor for cardiovascular disease, but not a cause: Senator Nart: ...I vould merely ask if cigarette smoking causes heart disease? IIt~ oosr~sru Yts~ ~ Senator Bart: It does not? Dr. coo?er s No. GssbercMonmcYA&., This.tasteless, odorless gas is pre- seat fn: ~ msaiac„ bst It is also present in the air we breathe.. Tlrr• pmdominant ssan-made sources Snclyde the exhaust fuaes of automobiles and e;zissions from industrial processes. Furthermore, carbon monoxide is a natural body constituent created by aorssal metabolism. is vieO~,- z' and nicotine, the experimental evidence ~ ,....,.~. segardxag 1~ await3 effects of Co, as found In cigarette saoke. is at 2Sest inrconsistent.. Studies of husans who are coasistent2 rposed to. lov doses of CO have reported,no increase i~t~c inciden,ce of heart attack or circulatory abao=alitie t:1 ~ ?ossi because expezimenLs with humana have failed to ~y a,, prove thear~3aias, anti-smoking advocates have e=phasized the resu~ of animal experinents by certain researchers. Yet ~ vDea• t~-~ta.tioa is examined as a whole, it also t.a•f3s !tm ~==Mimeat results on the effects of Ca ex2osurr.. ~,lLq;~s.vve:~,. the recent research findings of one of the scient3s~fi•equentlY cited as having deaons.trated a link bet.reea cas"~bba ~noxi!de• and heart d.iseaae did not confirm the comcZumBxss amaeozr tZbe effects% of carbon' monoxide drawn In his earlier -*-lAw- _ ~ ~ % bych evidence ind.icates that the.elaims made about the •-,O health effects of certain constituents of tobacco smoke on the smoker are just that--claims which are aot established by scientific proof. RFSEARL:H %br N "*4lecm=iteent of the tobacco industry is cleaz.. Foz, aeariy= ],S Me.rs the cigarette sanufacturers have been supporting totally Independent research with coc,pletely non-restrictive funding. The results--whatever they are--zay be published whezever the researcher chooses. : Y.- -_ 44. 45. 45. 47. 48. Ln I.am m ~ c c c 00 c Ln J ~D O
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8undreds of researchers in medical schools, hospitals and othez scientific Snstttutions Sn this country and abroad have received raore than $70 million from the tobacco industry to support their investigations. Parapraph Number <9. The findinqs of scientific studies fussded in whole or 50. part by the cigarette ccespanies comprise more than 2,000 papers published Sn the world's professional literature. The Council. for Tobacco Research - U. S.ll. , Znc. , an 519 a zasaasrch facility. 3adbatsX-aS-, rSDredr..gesacy, has the ma jor responsibility for the amaruation• and fundinq of research proposals. Aesearch snpport has been implemented mainly through a program of qrants-in-aid, supplemented by contracts for research with irstitutions and laboratories. The Council does not operate Z4ee position•:cf' the. tobacco industry Ss that the ques- t2•ons raTaed'• b1y/t?se aravtinty and health controversy can be resolved only by aoussd rci.entific research. AM ts Pzr-,.,,~~. s , 52.
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- - -~... P2~0014181 Wur Sws$e5 ficns .rb.wt a XG ~ ur. Let4«n't o.• &:ss cu~el::f ~a ~:/~~ jelloq l-+r' 3ess idn is hrruA 01 ni ~ our ih~~~i%jm ^«A lnter-office Memorandum *Ct T.e , • ' 1. Site of Action Nicotine interacts with cholinoceptive receptors at neural Jsmction ahOJ+us initiates noraal neural tepulses: Thosa functions of the body which are,jtor'ally ' rnder neural tontrol by a steady-state normal rate of nerve iapulses will ~thus be ' ~ hNta,t fo &c s..lve.t frc invi W. Nicotine ResearcA MW 0ow. November 9, 1976 Or. 0. H. riehl M. M. Nenley ~ . ~ ` . en ~ N O 0 A sumury of the major points developed during the October 25. 1976 ts== r discussion on nicotine is presented below. The primary goals of this discussion J ti.re: (a) to review our current knowledge concerning nicotine, (b) to discuss ell. particular research needs in taraa of problem to bed solved and questions.~La be ... answered and (c) to establish, among staff personnel, a firmer base for ~tiaulating"* dialogue and cross-fertilization of ideas in this area. . pas~n ~rt :-c In eralur,tin9 progress toward the above goals, the author believes that , AW the participants made excellent progress tr+ard the first goal while progress a;:bL: « toward the second goal, due to a lack of :i«e, was very limited. As assessment ~ 3= ot progress toward the third goal is auch eore speculative but is regarded-as havin9 been excellent. If this evaluation is reasonably accurate, then further discussions directed toward the second qoad might be w% thwhile. • ~. _ . Principal participants and their topics are noted below: ~ 1. PlDrsiological Action of Nicotine R. F. Moates ~: 2. Smoking and Health Aspects C. L. Neumann ~.. • 3. Taste of Nicotine - • C. E. Rix 4. Factors Influencing.Presence in Leaf and Smoke J. P. Oickerson_~•';: _ . .•; ~. 5. Nicotine and Tobacco Substitutes* C. L. Neumann 6. Nicotine Analogs and Mi.ics ~ . C. L.' Neuoann -~.. Other participants were: A. Rodgmen, R. L. Rowland. 0. L. Roberts, C.-H. Piehl.~i C. R, Sreen, R. A. Lloyd, N. E. Stoae, D. L,yn., R. E. Shackelford, W. M.;,Hepley. I. Physiolooical Action of Nicotine (R. F. Moates) ~'`~ ' .~" Z,. • . increased when nicotine reacts with these cholinoceptive nerve junctions. A nerve i.pulse Is normally transmitted across a neural junction by the chemical a+cetylcholine. Nicotine is able to very effectively iwitate the action of acei<jrlcholine. Nicotine - thus au9.ents the stimulation of those tissues which have cholinoceptive receptors. o 0 w.M.ow.W sm-w.. sn. M 0 I
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P2DOOT4182 002464 2 The boO functions which are controlled by cholinergic nerves are mostly Wtt ef the autonomic nerve system. Included in these functions are the gastroistestinal tract (stomach, intestinal muscle contractions), heart rate control, peripheral .lood vessel constrlction and skeletal•(postural) muscle oontrol. The influence of nicotine on these functions leads to the following • ' :y.qtors: ` . ~-- ~^r ;~ 1. Elevated heart rate ;,; ~ .2. Elevated coronary flow 3. Elevated blood sugar level 4. Lorer+ed cutaneous temperature at extremities S. Increased blood flow in skeletal muscles 6. Reactive release of adrenalin ' 7. Alteration of brain electrical • potential pattern R. Inhibition of patellar reflex Tlrese last three symptoms are generally believed to be the results of nicotine's action on the central nervous system. Mos studies of.nicotine's effect on the ~0%'* ; CXS are not conclusive, due to the difficulty of isolating a single neural U function known to originate in the brain. Furthermore, the brain is a mixture -• of cholinoceptive and adrenoceptive receators, of which nicotine affects only. . the cholinoceptive receptors. Subjectively, hoaever, nicotine is said•to cause . both mental arousal and relaxation. r 2. Absorption, lletabol ism and Excretion . ~ Probably the most effective method of administering nicotine to the body Is by Inhalation of cigarette smoke. This is due to the fact that unionized nicotine is readily soluble in both hydrophilic and lipophilic solvents.•:..tbout ~ 60-90t of the nicotine in a puff of smoke is absorbed upon inhalation.. F;The t L :~ . . , ..~ buffering action of oral and lung tissue, along with its large surface area, aid in the absorption of any nicotine bound In a salt forir. Thus a high concentration of nicotine is suddenly produced in the pulmonary veins, which is then distributed '•. to the brain and many parts of the body within a few seconds. Efforts to reproduce i tktis concentration of blood nicotine by intravenous injection usually require about'-,'.'.' twice the aeotent of nicotine injected vs inhaled to produce a given physiological • response. The responses most easily measured in both man and animals are beart- 1':"": rate and blood pressure. 4=r '` : urine, especiallr as an acid salt. Urinary excretion of nicotine .an be-~bastened 4 ~;. if ttie urinary pM is lowered by ingestion of !tH4C1. Conversely, excretioei can s,; ~:' injec.ion: This study also illustrates nicct=ne's ready solubility in.boQy tissues ~ and ability to cross the blood-brain barrier. Nicotine is readily excreted in - The half-life of nicotine'in the body is about 20-30 minutes. Nicotine in 4+.rs•• blood is readily excreted in urine and metabolized in the liver. Carbon-14 studies ' Aive shown that nicotine becomes concentrated in the brain about S winutes after ;;,. be slowed if urinary pN is raised by ingestion of bicarbonate. Ntcotine•.is readily detoxified in the liver by oxidation to cotinine. fbst other nicotine oetabciites are derived from cotinine by further oxidation and ring-opening of the pyrrolidone ring. The blood concentration of cotinine peaks about 2 hours after nicotiae absoprtion, indicating the much slower metabolism and excretion of this corpound. o • 'A a M
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P2D0014183 0p2S65 3 The physiologiwl effects of cotinine are not known at this ti.e, but are • believed to be minor. Habituated s+aoken , both male and fe.+rle, metabolize Aicotine more rapidly than non-s.oken , indicating the bodily metabolic acclimation to'nicotine. Nowever, male non-smokers excrete more cotinine •_" and las nicotine 0. n fe~rle non-smokers, indicating a sex-dependent .etabolic difference in lwsns: i In contrast to the lung absorption of nicotine mentioned above, absorptiOft through the mouth is very much slorer and inefficient. The nicotine in cigar '°: smoke (pH 8.5) 1s almost all unionized and readily absorbed by the oral.aerabranes, ~, if contact is made. But due to the slower absorption and transport, the concsn-• '- tretion of blood nicotine achieved is never equivalent to that of lung absorption. The absorption of nicotine from an aqueous solution in the nouth is also pN : _ - dependent. The aeount of free nicotine is a buffered solution held in the mouth ~:..t thus determines the physiological response. Similar results are reported far ,:- nicotine absorbed from chewing guo. Also nicotine in3ected into other body, tissues., o requires a?0-100 ti.es larger quantity to produce similar physiologicel•responses,~ a ai l ti d t t h ithi Q ue n o .uc oeer ransport w n s ssues4y . .a W_ II. Swoking and Health Aspects (C. l. Neumann) Two basic schools of thought exist currently: A. Reduce both 'tar' and nicotine to achieve safety B. Reduce 'tar• and increase (or hold level•) nicotine r ` TTess, Classic skin painting experiments have tacitly assur.+ed nicotine to be har as animals (nice) are usually conditioned to nicotine toxicity before time zero. Wynder and Hoffmann report nicotine to be a very low level ciliastat:V ~_llicotine` U., in the concentration present in cigarette smoke was not found to be ciliatoxic by 8oche and Quilligan' (1959). doclc has reported (1976 AACR neeting) low to moderate concentritions orf lficotine : act as a cocarcinogen stieulus when applied to mouse skin. During our dfisciission,1Q00i; y of the results of 8ock (and of all the NCI skin painting studies) was tAe accurac , questioned. Possibly an explanation of nicotines pronoter activity may 6e'due-to VFr-'~: its abillty to rapidly transport across the skin barrier, an effect not relevant ~it . ~- ~. in inhalation studies. III. Taste of Nicotine (C. E. Rix) Obs~eiwations concerning the COncentretion 10-S N'(1.62 vg/nl) 10-4 N taste of aqueous nicotine are described below: Taste Perception None .~::..,.. M Some Taste (foul, rotten rubber) ' -W' No Irritation, b=.* TOefinite Burning Irritation 1 vl Puff: Strong Tongue Sting and Thrnat Grab .;: 'a Z-_. .~.; .. . .. ~ . . .. ~ . . . . ~. . . . .. . . . . . '~ Irw~.r.~..~r. `
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P200014184 4 Sensitivity to nicotine occurs only on the front tip of 90. tongue. Nicotine Is definitely an Irritant in smoke and its taste must be blended out or madified by ot. •r constituents in the TPl1 to .ake the smoke acceptable. • Propylene glycol and sucrose can reduce nicotine irritancy, but large awounts are necessary. 'lleutralization• with acids also reduces irritancy so.+ewhat and appears most promising as a taste modifier. ' ;T_: IV. Factors Influencing Presence In Leaf and Smoke (J. P. Dickerson) Nicotine is produced in the root system of the tobacco plant. The a,nount'of nicotine produced depends on genetics, climate and cultural practices. Burley ~... tobacco generally contains more nicotine than flue-cured. However, genettcists have produced low-alkaloid burley varieties with nicotine• contents as low asF%., ~.! 0.2 percent. Similar flue-cured varieties are apparently not available. 'fxperi- +iental flue-cured varleities with high nicotine levels, ca. 6 percent, have;-been produced. Annual variations In nicotine coi `.ent of burley and flue-cured'tobaccos .~.~ are primarily due to weather conditions. In dry weather the tobacco plant r produces + an extensive root system and as a result nicotine production increases. Excessive rainfall produces a smaller rootsyste+a and also leaches nitrogen, which is necessary for nicotine production, from the soil. Fertilization and toppin9 height t are cultural factors which influence the amount of nicotine in tobacco. !!icotine ' production in the plant can be increased by increasing the amount of available ° nitrogen in the soil. Nicotine content is inversely related to topping height. As the number of leaves on the plant is reduced by lowering the topping height, the nicotine content of the plant increases. Tlu refore, a low topping height such " as that employed in the low-profile harvest system results in a nicotine level 002466 which is greater than that of conventionally grown tobacco. .~ The nicotine content of RJR domestic purchases varies from year to year ., The 1969 and 1970 burley crops were exceptionally high in nicotine. In 1971 ttje= . nicotine content of the burley tobacco dropped to one of the lowest levels that have been observed. During the 1971-1973 period both burley and flue-cured=crops had low to average nicotine contents. The 1974-1976 flue-cured crops have--been amr, high in nicotine. Nicotine content of the flue-cured crops has increased..each year since 1973. This increase has been due. to lack of adequate rainfall "~'°:The - • burley crops have produced reasonable levels of nicotine since 1972. The.-wicotine content of the 1976 burley crop is not known at this time. 1% V I It Nicotine content of both flue-cured and burley tobaccos varies with stalR ~ position. Nicotine in the leaf and s•:oke increases from the bottom to the,;top of ~! ,. the-stalk. FTC 'L r' values follow the same pattern. The 'tar'/nicotine r.ati*s decrease from the bottom to the top of the stalk. The lowest 'tar'/nico:ine " , ratios are observed in the tobaccos with the highest 'tar' deliveries. Co.pafty flue-cured and burley grades staw variations in leaf and smoke.•wicotine which are related to stalk position. The flue-cured 'straight' grades, whici: cax from the lower half of the tobacco stalk, give lower nicotine analyses than the 'X' grades from the upper stalk positions. Variations between grades in the. rades series are relatively small with nicotine in leaf and smoke . 'strai ht' ,,, a Ln ~ Q g m . , . ~ V m ~ w i a F+ CO L ui 00 $P
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•. i S P2D 002467 increasing slightly as quality increases. Larger differences between grades are observed in the 'X' grades dnd nicotine decreases with increasing cualitv. Q The btirley grades are divided into three groups according to stalk position.°' `~ MitMn each group qus i y Increases as nicotine increases. The transfer of leaf nicotine to seoke appears to follow a pattern sieillar.• ~~ to that of smoke pH In both burley and flue-cured tobaccos. In the burley=~~ tobacco both nicotine transfer and setoke pH increase with increasin9 height of the leaf on the tobacco plant. In flue-cured tobacco, both of these characteristics:.:: ~ decrease from the bottom of the plant to mid-stalk and then begin to increase.' Nicotine transfer in flue-cured is roughly inversely proportional to sugar content. ~ ,,,• TDe .r~or ortion of nicoti'ne in the swhoke ot IdINSTON co~es tram flue-aii;s0 and p Lurlqr tobaccos. Preliminary data from a study of WINSTQN blend coaiponent's V f-IL indicate that Turkish tobacco and 6-7 are responsible for less than 20 percent of .,-.' .the nicotine delivery of WINSTON blend. Flue-cured tobacco contributes around 60 percent of the smoke nicotine and the remaining nicotine comes from burley ,_ tobacco. The flue-cured appears to contriM, e more nicotine per gram of tobacco than the burley. This is due to the denicotini2ation of burley and the use of casing. In addition, nicotine content of the flue-cured which is used in c7rrent °" bl i i ne cot .t'"; ends is relatively high Additional studies of the relationship beeen n delivery of WINSTON blend and nicotine delivery of individual blend compooents are in progress. ~ The Kool blend contains the most nicotine of the four iw jor competitive brands (WINSTON, SALEM. Marlboro). Marlboro contains the least. Nicotine deliveries of Kool, SALEM and WINSTON have fluctuated between 1.2 and 1.4 mg for the past tv-o -. ~ years. The Marlboro delivery has been consistently lower during this period. Philip Norris has maintained a relatively constant nicotine delivery of around " 1.1 tg in the Marlboro for the past two years. The relatively low nicotine delivery of Marlboro is partially due to the filter and rod characteristics•of ~ i this cigarette. The pressure drop of the Marlboro rod is lower than that of WINSTON and the filter pressure drop Is higher. The Marlboro filter is aore efficient than that of WINSTON. * An 85 tm filter cigarette from yltiSTON blend with the Marlboro filter and tobacco rod characteristics detiv=:~s less 'tar' and nicotine ttkii'NINSTOlf:~*, s 185 The transfer of leaf nicotine to smoke is lower in Marlboro than in WINSTCN.- The difference between the two blends is partially due to blend characteristics of the Marlboro which have not yet been defined. Literature reports indicate that as smoke pH increases the efficiency iW nieotine filtration of cellulose acetate filters increases. In-house experteunts indiute that this Is not the case. ~~ Sugar in burley usin4. reduces the nicotine del ivery. A response suriiice (RSP) study which is designed to define the relationship between casing and niootine !f'~ delive is in ro ress ~ ry p g . (Ti _ Additional infornztion concerning nicotine in Company tobaccos and cowpetitive brands is available in formal reports. RDR, 1976, No. 14 reports cited therein describe the relationship between Company flue-cured grades and nicotine delivery No. 16 contains competitive brand data for 1976 RDM for the 1972-1975 reriod o o :'d „ tn I.- m , , . .. . m . ~ Co Ln 00 cn ~ • .~._.--_....~
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„ - ~-- - P2D0014186- • , v/ 6 002468 1975. •A review of in-Aouse nicotine data is reported in RaR, 1975, No. 9. V. Nicotine and Tobacco Substitutes (C. l. Nee.e.nn) 1. *Sutton I Material and Nicotine Oelivery ~ Original RJR notebook data showed two things for nicotine transfer ia-t Sutton I.aterial, first that ixtures of tobacco and Sutton I.aterial:did not transfer nicotine in proportion to the tobacco content, but rather, the exFected amount was decreased as Sutton w terial increased. Secondly, nicotine or:.its ~* ( " about salts added to Sutton material transferred to mainstream smoke at a rate h ) alt that found for tobacco (9Y vs 17-195 . ~ ...., 2. Current Substitutes and Nicotine OeliverY ( -M . • Extrapolating the data bove to other substitutes such as Cytrel, NSM, J-10, O we .yy reason that they will transfer nicotine to smoke in a tobacco-like ~nner, +;,~ ~ .- as the available data shows that mixtures ~f these substitutes with tobacco have ;, s.oke nicotine levels proportional to tobacco content. 3. Inert Extenders, G-7l and Nicotine Delivery . .,.:: -- Tobacco incorporatin4 tnert extenders (CaC03) transfer nicotine euch like V... ~. : tobacco, at a f transfer rate of ca. 17%; G-7l material transfers nicottfie:at a somewhat lower percent (14S). Both rates are corrected for cigarette bum ~ rate. •r iri I ; ~
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P200014187 ;,_.. ..~ . F • 1.0 F~0.2' F ~ 0.07 F  0.00 F - 0.015 002469 : 145% - c.. F~ 0.2 F~ 0.00 " ' rese.bles nicotine ' in .ode ot action . . • _ .. , ~...:~. .;... .. /' and also standard relative activity or Fuinei pig i1eum (nicotine ~1.25 .If•acet,lrl eorwicotine is reported to ' wornicotine. . Staedard relative •ctivity an frog rectus a+scle preparations: 7 rl. IMcotio. Analo9s and tliaics (C. L. Ikueann) C - 0.00 have ~ ~ . ca. 1l12 the actiYitY ot M-etlw1 ~
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Pz00014188 .• . Confonrtia+al studies and x•rNy diffraction shm nicotine to have the following conforaation. This correlates with wost data. Co7 K Natural nicotine mimics are relatively abundant in nature. Those below 'shar u nicotine-like activity. They have widely varying activity levels and tox0city levels, however. t likr Nicotine: found In Nicotiana s pecies, pubnl.ila h2omaii, LrLcopodtum specie;, . Eguisetu~m arvense, liucuna pruriens /lnabaiine: in Nornicotine•: Lobel ine pelletierine Sparteine ~~. d - form active only also dialcoAol and diketone active ~:.' . 120 mn fatal to man .5 wg/kg - active dose ~ .,v... .. ~+ ; from rootbark of ponegranite ;tree ' ' frm yellow and black lupin beans •d=rarnicotine is reported to be'2.5x toxic as nicotine to rats note that this ieans a 240 lb .an has active and fatal dose equal Considering the wide abundance of nicotinic drugs, tobacco has assumed a"~7j very unique role in society. I do not think the rac+ifications of nicotine being classed as'a drug by FDA and other (foreign) aeencies should be orerl ooked. .... .i .' Nicotiana. Anahasis aphYlla. Chenopodiaceae In Nicotiana, Ouborsia hopwoodii (d and 1 fores) from hemlock J
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P2D00141$9 002471 : M. M.t 14 R.w to 14P0w Abo.t Nicatine Ow to a tiet 11.itatian, this toPic nceived virtrelly eo attwKiao. ' >OWN a1 /uportaet qe •tea Wre nisM. INo.Nver. ~ C. R. Cr.en .od 0. Lynn reised the arestia+s concerwiM the taim.. li*e1 OI Ricottne required ibr srotW satisfaction. • Also, the question was reised if so.e plUrsical response could to detersine nicotine effect or satisfaction. erf tfiese rio tor.~s. ~ rhicA rould change the nicotine delivery, particularly aNr tacton which iauid allear a decrease in tar delivery without the accomqaNrinR proportional decreese ie nicotine delivery. • . , •. C. L Green asked it nicotine in s.oke w s'tree• or 'bound' or so.e mtature z ~ MicA is used in the cigarette. R+rt, holdinq constant the tobacco rhich .als up the cigarette, are wecogn izant of all ether factors in cigarette wanutacure e tlrt the deliverp of nicotine is changed by chan9inR the type of tobacco l N ' L L. Rarland asked it every possible variable had be.o inrestlqa t.ed tor' Its effect upon sicotine delivery to the s.oter. It .ay be generally acceptsd,* :` l Xc: Dr. Alan Rodgman Dr. o. L. Roberts : Dr. M. E. Stowe Dr. R. L. iioalaed Dr. C. R i1r•etn Dr. R. A. Lloyd /ir. L E.~SAackeltord -..: Dr. R. F. lbates = Or. C. L. Neuwon Dr. C. E. Rix ; Dr. J. P. Oickersois be weasured ~ .~ ~ c;•._ . . ~,:.. y~."jLE AM% M O ' O N r w ~ •
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51601 8590 50187 7091 , ) •Lt ) 6. ~.' ' r z 0 H H U H 4 7 N ". H H ~ x ~ u N ' Q E z ° w a ^ W H . i f'. z \ m w je U ~ W 14 C/~ N ^ ~ ¢ tti Z . ~ : ' .)-' ~ ~ • • ~ U a , Z zH .~ x ~ . •., . 0 E+I •. w l' • I .a-- ' .CONFIDENTIAL .. ' - • r •, i . . . ~11- j1:.• r ( (~ i N L ,. . . ~... .. . . . • ~ . . . . . . . . . THIS DOCUM5 t~T:AND ITS_CONTENTS ARE SUBJECT TO A COURT ORDER AND SHALL NOT BE USED; SHOWN OR.IDISTRIBUTED EXCEPT AR PROVIDED IN THE COURT'S ORDER: ~ .I
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. - r~.. UPDATE ON T1lE SA1n}:]NC AND lilr.li.T11 IiSUE AND S?:OK1tiG SATISFACTION Table of Contents Item P2ye o~-a m= N ~ Scope of the Smoking and Health Issue . 1 m , O e) : The Smoking and Health Program of the Natione+l Cancer Institute 2 ,= p m - .'' •i '; •,:* Z ~„•The American Cancer Society 3 w:Z ~~0 9 Tbe. Institute of Ps chiatr of the l~Jai~dslc 0.1 ?ZY Y Y Hospital of the University of London 5 'DePartment of Psychiatry - University of "-= California at Los Angeles and Veterans' ~~ Z Administration liospital, Dreentwood, Ca l i tornia 6 C MO z -:Colu.•abia University 7 ~ D 3ate Experiment Stations 8 M 'M m ~e 4Action Against Smoking and Health (ASH) and D C- ~' the Group Against Smokers' Pollution (CASP) 9 ~~ Z -V m. Tfite United States Department of Agriculture. • 10 . M 0 ~.~ Tfie Smoking and Health Research•Supported.by ~ O • •-The Industry 10 m D , ~ n The.University of Kentucky Smoking.Health Research 10 Z C . . _ ~ The BFitisil Health Hinistry 11 m ~ .n ~ Association of the Cigarette Industry of West ~ - O O .:Germany 11 . C m M M 12 ; -1a Pederal Trade Commission cr3 Z .~ . j 13 ._ y The . American Health Foundation .M _ . " • ' 14.. . Summaky M > Stiott and RECOmmendations. • ~ . 15 ZD Bibliography 4 z -- 002169- ~. I- .rw 4 ~ + ~..A ~~. :. . .. ~ :. , P2o 008401
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002170 mgyJ. F. Hind m =_ ~-- y y UPDATE ON THE SMOKING AND 11F•ALTH ISS'UE AND S1dOJ:ING Sl.'1'ISFACTION -''' ---- ---- ---- -- •- -- ------ "-~.: - 00 0 Sae of The Smoking And Hcalth Issue And Sraoking S:~ti:;foction ~ O m ' a - - -- -- -- ---- , ':PabZieations on the alleged hazards of :mokiny appeared as early as gp~ `tF~'~16th..century when tobacco was first introduced into Europe by the, ~ .S g:sh conquerors of North and South America. Dut the most persisten t~ s s Of:attacks on smoking began in the early 1950's when Ernest `W aer- and a renowned surgeon of Washington University of 3t. Louis,~~ N yburiEvarts Graham, alleged in a number of articles that '•sr~~ng is'harmful to health on the basis of certain statistical andz~ :aiL3jvl data. 1 • 2, 3. `~s+ J .~ S~~ ~he- early 1950's other research organix.~tions and institutions=`'-; h~~+become involved in the question of smoking and health. Some of:.~:.= t2bes~¢ o anizations and institutions support the original: stand of ~-- N~dar al. that smoking is harr.nful to health. Others, however, ma-a airrm that •the relationship between smoking and health is an open ' -Zm A C_ :•~ murr~er of organizations involved in smoking and health is growing. at~e.r~omeat one could list the following who have published on this su~yct r(1) National Cancer Institute; (2) National Heart and Lung In ,~tutet (3) American'Cancer Society; (4) American Health Foundation; (5 Whe Various State Experiment.Stationst (6) The University of Kentucky To 0co and Health Research Program;•(7) The United States Department of5k@ricult,ure; (8) The Environmental Protection Agency; (9) The Action On-Smpking and Hcoilth (ASH);..(10) The Group Against Smokers' Pollution (G*P ) _ (11) ''fhe 'Federal Trade Commission: (12) Harvard University • ^'°= Smp}C~g and Health Research; (13) Council For Tobacco Research; (l~ p~ssociation of The Cigarette Industry of West Germany (Verband der Cifffttenindustrie)s (15) The British !lcalth Ministry; (16) The In#~u~ of Psychiatry of the Maudsley Hospital-of the University otei.~don;-; (17) Department of Psychiatry at the University of California atQ4R Angeles; and (18) Columbia University. 7] fA . Thi&*x0are,' af• eourse,' other -iiistittitions' d'oinq"researcti -on ..thc 'smokinq '' and7D]ealth qunstion. They are either- privately funded or funded by sotae*ranch of the Government such as the National Cancer Institute. 0 . . Regar~less of the•reports in the press or In the medical journa]s claim- ing that the relationship between smoking and health has been proven, P2D nn84OZ
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: .4 002171 the tobacco industry in America does not accept these claims. The tobacco industry and in part icular the rn:rnagc:mvnt of R. J. Rcynolds Tobacco Company maintain that the relationship is still an open question. .., , _ ~~mT]je present report is an update ur, the smoking and health issue mr3viewing the status of reseArch in some of thc organizat ions and ~ Ci~lstitutions listed above. The report also includes a review of =7=: - cn ~ ' - scussions with a number of scientist:: who hr,ve carried on rescarck-_ :,.-.OiX the.-amoking and health area. Z--.Jf--:u ~`CA c A Tge Smoking and Heslth Pro yr.im of the Nation.il ~ Canccr Intit.itutc . _ { `sm6king and health program of the National Cancer Institute was~ tuted in 1968. In estrblishing thc smoking and health programi ~ 3u ~ Iastitute recognized that a very substantirl l~art of the popula-'~~" 11_Ct'rn:wi'-11 continue to srnokc and in view of this oresumption, and in a amw bf1 the gove2•nrr:ent belief th~1t smoking is haz~irdous to hc.ilth, ~ I .. ~:~ti~ ~idhlfl ldlf ~ program was assgne te goa o developing an acgey saer .•:gft-; y = ~@arette. r~C~ .. . =44T,date', about 120 experimental cigarcttes have been 'dcsigned and::..}:.:. : Qe;ted by painting their smoke condensates on the skins of mice. °T&3edCpn results to date, Dr. Cori, the Director of the •Procgr::m has_-=... ~^ following characteristics of cigardttes provide tq4clQled tha t the laifer7tsmoking: -~C 'v.,~ > O •MZ : Use of high porosity cigarette paper. Large proportion of reconstituted tobacco and O'~ r- stems in the blend. y -O a ~. 4. "' 8.. ~ z 0 -i Extraction of tobacco with a suitable combina- tion of hexane, water and surface active agents. Use of inert fillers, such as clay and/or ctqlomtte, as tobacco extenders. Use of tobacco varieties from selected etrltural and curing methods.- Nicotine reduced to an appropriate level. 'Tar" red»ced to as low level as is conceivably poss•ible., , ... Nitrogen oxides, carbon monoxide, hydrogen cyanide and acrolein reduced to an appropriate level. Use of air-dilution filters. Use of safe flavor additives to insti, o accentabi 1 ity, both from hcalth and smoking sati::faction standpoints. P2D 008403
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- 3 - 00 2172 ~ '_ - -- r. G. Cori, the Di rector of t:he Smok inq and Ilcri] th Program of the National Cancer Institute believes that by implcmrntatinn of the technology set forth above, it is iionsiblc now to produce a safe ; cigarette. Not only docs he rccon-r:,c~ild the .~L•ovc t~:c1iiiology, he ,.,.~ ~tcribes a way to smoke safely its a recent article in "Science".4 ~--• ~ ~¢ prescripti on i s : m "Tar" li mi t per day - 151 mg. yc Nicotine limit per day - 10.5 mg. x~0 m Z Cigarette limit per day - 20 Z person were to limit himself to 20 cigarettes per day he would h~ ~ a..range of "tars" and nicotincs. Here are three possihilitics:-r~"~'' ;;;. .^ • _ , N~ Tar" hcr cigarette (mg.) - 7.5 5.0 2.5 7o n ~: - O .." ^..Nicotine per cigarette (mg. ) - .5 .5. .5 Z m Zs• ;"Tar" to nicotine ratio - 15 10 5 T2nev~artt;cle suggests that the "tar" to nicotine ratio should be as ..~.. lql~?~s ®ossible to achieve maximum taste and satisfaFtion. mm •z , ~ ..' ~ . . r~tQter. -mpetus to the development of : n allec;edly safrr. cigarette was, ~ /ieffl- zcetttly by Dr. Peter Bourne, President Carter's Special Assistant toa atea}th Issues. He addressed the Ad Hoc CoTmitten on Tobacco and Sm~g pesearch of the American Cancer. Society.on Novembez 10, 1977, an iarged the adoption of low "tar" cigarettes by those who choose to srr.&0. ~ Accordirigly, because of Dr. Dourne's stand, Dr. Gori's recommenda- tiMi$ will continue to gain additional support. A cigarette with 5.0 .-- mq.- 2tar" and 0.5 mg. nicotine will likely be endorsed as a"safe" ciaaL,ettL&--by the, National Cancer Institute. --i~ • .~ S -~ • a- ..: . Th m ~aerican Cancer Society - - 00 The,cljerican Cancer Society has maintained for some time that lung canaejr,%r3eath rate of men who smoked cigarettes regularly was ten tinfOs2as'high as the lung cancer death rate of inen who never smoked; andCt!Ris~ratio was considerably higher among men who smoked 40 or more cigMttes:~ a day. tising. the same comparison; the Society -cl-aimed" that cdrvtD:ry'heart- disease death rates of male cigarette smokers were fourWto be abnut 1.5 to' 3.0 times as high, depending upon age and asaoun$ of smoking, as the coronary hcart.disense death*rate of non- cn sraoke~. While still maintaining the above, the Society took notice , recent y of evidence that allegedly suggested that "the lower the 'tar' and nicotir~e content of cigarette smoke the ]ess h:srmful would be the effects", and decided to put this evielcnr^. to an epidemiological 00 test. The test has now been completed and results have been published.6 J J O P2D 008404
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- 4 - 002173 - The authors of the paper point out that citi.iratt:r.s wi th reducad "tar" ,.and nicotine have tiot yet hacn avai lahlc fur asutf i cicnt time to '`~L' ' ~ .,.. kcnable them to fully as:ess thc hc. ith atfccts c+C tl,.•-e rc:ductions. ,: reliminary epidrnniologic.il study inrlic.ztes reduction the th l Ir_ p ess, . .~,,.~. e gisk with reduction in "tar" and nicotine. nut mure signiricantly,. -; :twqjauthors make a recommendation to raduce "tars" and nicotine by following final note in the article: "The thrcat to the future!Z~g==U sh i~tlh- .of;. those who make this youth decision (to smoke) would be i Qd~ced;if hiy1i 'tar' - high nicotine cigarettes were i•emoved from ;~ 't1Sl:masrket: m.inuf acturers may be wi 11 i ng t o dn ::o vo 1 unta ri ly in the ;, ^ P. IJ$ ~t'of°:Lhe fact that long-term trends have bocn in this direction. " 'Tlam.report from the )lnerican Cancer Society is notr.worthy because V, c.== ~,_ tsfi~Ebdicates a decided softening on the smoking-ht!alth issue on the ;p.U ~of'•aa orqanization which at one time was ad:s:nantly opposed to ~=md rig~..,The SocYcty will continue to ccll(:ct i.Icli tion.il cpidamioloqi=., -cal b) ata;:;and may eventually obtain data which wi 11 =how that a 5 r,g::- ' ~ - 04 mg. cigarette is an allcgrdly :.•afc cigarette. .1 M • w ...,•'-v Z ThA 9merican Cancer Society held Forums in eight major cities across ': thw )iJni d States in the early part of 1977. The wit:~usz:es at these ~' . ~ Fo~~'s vocated among other things: _wN -n D Cl. ORLst'riction of smoking in public places ind Placcs of ~ '~cmployment. m ~V m ~ _ M ~.~Zncrease in anti-srttoking TV and radio commercials. - <~ . p 03. Education of the public at all. age. levels on the ~ > `'alleged hazards of smoking. _ n z C4. Legislation at federal, state, and local levels to _ M restrict smoking. .~' o ~. Elimination of 'tobacco subsidy. C ;3 ~ . Restriction on cigarette advertising. v~> 2 `- Placing cigarettes under FDA regulation. p To Me the Society has not , issued,.a. report on. these p.roceedings:. • • . }iouawpr•, it•aoul'd seem that its recommendations reg~+rding restriction of 3eking havc changed•recently in view of the recent election of "` Dr. RZ Wayne Rundlcs as the new President of the Society. In a talk K in Du®ham to the City Chapter and speaking on bchalf of the Society. '' he st-ailted that we cannot abolish smoking and recommended that consumers change to low "tar" cigarettes. In the Presidency, it can be expected will take a more reasonable vicw of view of Dr. Rundlus' election to that the American C.incer Society the :::noking r..id hc.•.ilth is.sue. v 0 a J J C .D T P2D 008405
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002174 - 5 - "- _r.al of the UnivcrsitY lto~i - The_ Institute of- rsy'---• -cl~iatry of th-- e :+audzlcy L ------- --- •-- ---- .. _ -- of London ~-: •.The. Institute of Psychiatry of the t:audslcy Itorpitnt of the Univrrsit.~y mo~f London established a research ;-rogr.am to study the P:ycholoyica2'-'~ M21pccts of smoking. The project is headed by Dr. M. A. H. Russcll,-,''.=•a . epEacticing psychiatrist. The program was cstablishcd by the University *ader the alleged assumption that smoking is hacarclous to health, 4 1 nd _ th i U i l fi ki i i d ~ V ~ i " ; tr~~'gdoa~. V,:i ~ n e m was to ng n na n means touce smo ted red•. e a ;; g or d er,appreciable research on this project, Dr. Rus::ell has conclude t-.the so-called traditional methods of health education, trcatment:: !„•d*cliaics and anti-smoking propaganda in the United Kinqdom are m~ ~----- -,:=&ffe.ctive. lie contends that smoking-c:oiitrol proyr:+ms are not ~ ; aealistic. He. is convinced that the goal of "no ::mol: iny" should be :;~ialOnged to the yQal of "safer smokinq". In an artiule cntitled a==-= , -. '.' ~{falistic Goals for Smoking and Health - A Case For Safer Sinoking".p.; h l~lild hihhi ~ ':.Txa Russel suggests on psycoogca grounsow one mgt acevc 1 ~~ smo sa ki ng " f " f er ~goa o } -• &F.developing his argwnent in the• article for the goal for "safer -- mwk3 w", he first emphasizes that absorption of an appropriate anount - ~tDniFptine irsto the blood by inhalation of cigarette smoke is the ¢~so0for, smoking. He argues that in early stages of establish.inq,;:.~1 ~aa s kanq tiabit, the absorption of nicotine plays a decisive role_... ~ $r~~ ~e.~habit is established, the person bucomns dependent on nicotine, tth a w 1 continue to smoke. Thus he makes it clear that absorption"of" ppopriate amount of nicotine is crucial to the smoker. ~-- D R= r . . 311~ce people to switch to filters. While educational programs were.:~... ,.---. ::~~mpting to abolish smoking altogether, the-cnormous change to =- ers"occurred more or less spontaneously. And presently, another Age is taking place; namely, to "mildcr" brands; i.e., low-"tar"~= .~.~nicotine cigarettes. The change to the "mi lder" brands is also ~i-J,ta3d ag place without exhortation. It is simply a spontaneous response- tfu ceimple Information. v = . . . . . . . . . . . - •Dn ~Russell believes that the safest cigarette is likely to be the onerwith a low "tar" yield and a low CO yield and a high nicotine .yie~d. With selective and ventilated filt~~rs, hc believes it ~ likeily that the nanufacturers will soon be able to rcducc "tar" and Z:• ~' CO substantially and still maintain sufficient nicotine. ~ ~ 0 ~ 0 ~ J O .o J ell maintains that once the habit is established, no amount of -smoking propaganda will persuade the swoY.or to abstain. However, restingly enough, the smoker will respond to other influences ~--- out exhortation. For example, among English smokers in 1955, _ s3 than`2t of all cigarettes smoked were filters while in 1970 it, 94over 7@1L. F1Gring this period there was no deliberate program to,:... m P20 008406
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6 oo217s _n a recent publication', Dr. Russell updatcs hi's intcrpretation ~ of tobacco smoking and nicotine depcndrnce. In this article -.he reiterates that smoking is untaucly etficicnt in administcring ::~,.}~tine and the desired effect is achieved in just a few seconds; M~mceas.3n other forms of tobacco us.ige such as cigars, Pi pes, P__ ~~d''i cheWing tobacco, the time regui red for nicotine satisfaction °'= .` '~ ~ oouch :.lcnger. • _ 0 p.'~ sit~y of California at Los An eq les ~y~ Univar rtiaent of Psychiatr -- _ ~1 Veterans' Administr a on Ilci:ipiL~l, Jirciitwood, Ca_ lifornia 7 pa rtment of Psychiatry at the University of California ha s _ ~- •e Iistied a small group of medical research scientists to do re- ~3 tzsPal~ch"-on' the psychological and pharmacological properties of ~, =.i•l~cdaous-biologically active compounds. In recent years this group .:has(~done .~research on the psychological aiid pharr~acological effects ~ %o{ ee use of tobacco in various forms. The group is hc~aded by Dr. -s ~ 4y:E. Jarvik who regards himself as a psychopharrnacoligi:,t. :y ~ .DSt.rvik has used animals in these studies but more recently he ;11"'_-', ~h~ een 'concentrating on the study of human smok ing characteristics:~ ~.: ,His-human subjects he uses patients at the Veterans' Administration:_• Aqs14tam at Brentwood, California, so most of his work on.human smoking c}iPmct~Pci;stics is carried out at the Hospital. :.~tn . .._~ I arv~a'k,-~in agreement with Dr. Russel l whose work was discussed in•,,~ .. ~;R reEpding section of this report, believes that nicotine is the t•`hncrf r$inforcing agent in cigarette smoking and other tobacco uses. ~ Pd~ her•last five or six years Dr. Jarvik has been doing research to ' deal~strate unequivocally the roinforcing property of nicotine in sr9kYng. -:These views are discussed in his recent article enTled ~s = '•Mamtions To Cigarettes As A Function of Nicotine: and 'Tar'". O Dr~ ~arvik,.as dpes Dr. Russell, believes that smokers attempt to _ at n and mainfain a relatively constant level of nicotine in their ~i0 do s and this level in turn produces a certain level of a desired -. ps"ological and/or physiological state. In this connection, he ;.- f spatailates that smokers of :full flavor cig::rettes. that is, non-fj.lter ci~e~,~es,. really get more nicotine than they need. A possibility r,=::. ex~s that some of the excess nicotine combines in the body fluids -~ ~ri ~~psome biological compound and in this combined state does not ~~.- ex4X-W any physiological or pharmacological effect and is simply held in;ir%pe.r•ve.. Then as. the. uncombined-nicotine • is - clcared from• the sysrtem, the combined nicotine is rQleased to prolong the nicotine ~ etfz l;t, but.iz a person' does not continue to smoke, all of the nicotine is eXpntually cleared from this metastable reserve and from the body.,.~: 1 4 - . , P20 008407
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002176 Dr. Jarvik has observed the relativc case with which'rton-tilter mokers have switched to filter cigarettes ::nd prnsently ::re ,;witrhing to low-"tar" 'mi ld cigarettes. It appcars obvious that smokers arc changing their style of ::moking and using more tr.equent..O~'='; ,_puffs, longer puffs, and c:rcci~er inhalation, or are nicotine require-°' : ments being met with the ::~n.i11cr .:rounts of nicotinc derived from the'" °: "-"tar" civarettes without a significant chanile In the style of imar -%&ngking? To resolve this question he is c: tabl ist,ij:g an analytical:w;~.l :. "t to enable him to determine nicotine in the hody fluids. T1esel .~; I&Gly/tical facilities will not be ready for another half-year or sQ,•,..z :,~r~ Sarvik fcels very strongly that every effort should be madc to M :n:4haaurage people who chuose to smoke to switch to low "tar" cigarettes a higher yield of nicotine relative to "tar" and carbon monoxid"e ~%. ~s'confident that people who are now smoking higher "tar" cigaretles y4 Y1. eicprrience little difficulty in making the switch to the low "taftv,'= Wrettes with adequate nicotine. He did not ,pecify what he con- c~zs adequate nicotine but he did say it would be appreciably .7bov~ -•Nt-MrO0,l-mg• level. ~ mbia Univrr 1m .. -1M,-• aeast two groups of scientists are engaged in research on smoking~~.7 a golumbia University, one group in the Department of Social r~- P o$gy, and the other in the Department of Psychiatry in the ;, C~grLof Physicians and Surgcons.- ~.~ ~6.6t'z8ley Schachter and his co-workers at the nc•t,artment of Socidl f,.`, iy~o]6gy' have been attempting to determinc why p•ople smoke. They•'~• ..aar fi~ally concluded on the basis of thei~ research that smoking ••i~~}~,pri y}~,priy a physical addiction to nicotine. A confirmed smoker =~ l1gb.ts up a cigarette to :.atisfy a craving for nicotine - but not ajaAme 'people believe - notably Hans Selye of McGill University - to. = r!gffive stress. However, he regards an unsatisfied craving for -~-'- n~~ine as a stressful situation so in this case, Schachter says, .ss~ffng 'would alleviate this particular type of stress. ., Sct~aghter aqrees with other scientists, such as Gori, Russell, and Jamv~jk who have recommended low-"tar", low-gas, high nicotine ci e0lettes. He decidedly discourages the smoking of low-"tar", Io~ Ticotine cigarettes because they would not satisfy the craving foi.aotine and would aggravate rather than alleviate stress. Cn Z ;i Dr erome H. Jaffe, of the Department of Psychiatry of the College of~~jrsicians and Surgeons, like. Schachter, believes .that smoking is~le' addi~ction *to* nicotine.10~ Iri his opinion, smoking is sterted fo?{-rerious r^asons: chief reasons being, (1) to satisfy curiosity, (2) 4D conform to the behavior of peers, and (3) to rebel against ~~' ~ soci~ expectations. Initially, there is no cc.mpulsion to smoke, but a ter repeated uses, a person becomes adjustcd to the effect of ~ U" o_ 1 C', N m m N OD Ln LD OD P2D 008408
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002177 -- _ - ~.. _ - - - • nicotine, a»d so as soon as the effect wears off, lights up another cigarette. The effect of nicotine from one cigarette lasts a short time, so the smoker replenishes the body's supply .rveral times each hour. ,,,,,,,._..,,Un•like Schachter, Jarvik, Rus.;ell, and others, 7atfc does not sumpoi il ,. . ``"`-'`--the:'3ow-"tar" medium nicotine ..;,pro.ich to al2cdc'dly "safer" ,moking.l _' m=11e speculates that people can be taught to smoke and enjoy the l~ow- :.;-C y'tar", •low-nicotinc cigarettes and thc;:c would .illegedly be safer__ :'• w pHe ,is now seeking financial support to estnblinh a research project ~;'MOto demonstrate accehtabi li ty and ::afaty of low-"tar", low-nicotiiie _ ;;x • • nciqarettes. If I were to speculate as to his motive, it is two=~fv2d: ~~orie'~ it would afford a confirmed .moker the opportunity to lose~~te ' ~O mdepeudency on nicotine, and thus he w~ould he able to quit ::moking ~ ~Z hd b i i ha ~ w ut any wit lems; and srcondly the young st;crt t rawal pro n~ y ., ~`?ysmokqr would not become addicted to nicotine, and hence would reraain ;v%J za -no,a-smoker as an adult. -6ta'.te• Experiment Stations . .~ Vf ~~ ~1 ~Rne~•'f e+tiae+Pn nrAU:nn a*a*ne mn in*a3n enn..t .ttntiAnS wF1nrA rn- ~1 Zsearch' is conducted on the agronomy of tobacco. The chief area s '~,:-I;g+hichh are investigated are: , m Z ....._ ' J .Y i n tobacco i e t • m y =(1) D t f t di l anc sc. .z ,e : eve opmen res s o o ; ~ > .0 "• plants. _mm Z . ,. ~ y . 'n ., (Z) Isnprove.ment of yield of tobacco. n ~ ..z : (3) .~~ O r i Variation of certain key chemical,r,umponents in the tobacco; i.e., nicotine content. :. e.4n conducting these experiments.the p Qobacco companies to evaluate the smoking a.id manufacturing qualities :: ~$f their experimental tobxccos.-.The Agricultural Research• Department f R.'--J. Reynolds Tobacco Company'has played a significant role in z ~hese eyaluations. ,t • ~.. . . . . :. J v, m~. C.::State Ezgeriment Stations at Oxford, North Carolina, and the 1' iversity of Kentucky Experiment-Station at Lexington, Kentucky,rT~' ' ODave excelled both in• quali ty and quantity of research on tobacco; = CPe former on flue cured, and the latter on burlcy tobaccos. ManY..- :.,. ~ yev,1peful varieties have been developed, and for the most part, the: N4bjectives were to overcome disease resistance and to improve yield;, '; O~ilen'still maintaining the smoking qualities desired by consumers.- Z; I~ .I+ m v=ntil ecent* yeats, the consuniers have preferred the so-called full- .., Pllavor cigirettes, delivering at least 15 mg. "tar" and abc+ut 1.0-mg.- CW more nicotine. Owing to lack of rainfall and excessive fertiliza- on, the nicotine contents frequently ran l:igh, so the experiment' Rations had put emphasis on reduction of nicotine tobaccos as they ~ 0 ~ 0 v 0 0 _.,... . ~:.. '.' 4 stations rely heavily on the .,, =;. ti;-! •.... . P2o 008409
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-9 - developcd new varieties. 1lowever, if onc had forc:,ccn the growing lnterest iri the 1ow-"tar", mcdium-niroti»c ciq.ircttr.s, the axper:mnnt stations may have bc:cn cncouraged to .il.e develop varieties with high nicotine contents. The 1lgricult•ural Rn:c.irch and the Leaf 1).•pirtmu•„ts of our Ccmpany... ~ :a re fully aware of the need for ',igher nirutiiac toh,-icros for the?;~ '1~m ow-"tar', mcdium-nic:otine cigarettes and are cri ti cal ly rcvic~+irig ' nr he .potential of the experiment statinn n to pruvide the ~•ecd th.~t -~~•~:' :=_y ill be needed for the.e new cigarettes. , >r~~1 ;~gheYltJR Agricultural Department outiin~~d ne~ds nf 1 high nicntinn6~ ` ~`;. ~ ari'e~~7y in the fall of 1976 .and planted thc,e :~t thc Avoca Farm ~~ _ •/ ~~t~n'~tt~e spring of 1977. The planting tyroduct%d al,out 25 pounds of ' fpeds,.: These seeds will be evaluated e3tiring the 1976* growing ~. yeason.to determine whether the cspability to produce hig ~h ~0 7~icotine leaf has been retained. ^"" Y '~~~'.•' ~Y(D9'Ohe- ~Action_A_gain~st SieokincJ_ind liaalth_ (A!=1_t) _an~9 t!~e Gro~ t~qainst kezsTP~]lution (GASP)• Z _ --; ---- '~.~' 4ICASH• is:a national legal action orc3,,niz.il•ion with hnic]quart•crs in_..~,,.., :: m~shinyton, D. C. derigned to take eGfective action ayain,t probIcros c}aused by smoking. It is casrtainly one of thc oi•g::niiitions that'-=- ~: Xas bben very vehement about the alleged harmful effe.cts of smoke"!`.^ ' C)6 na-smokers. .~ :. . ~ . mm ~~ -%.eSPda national organization with ch:Ii)tc.rs in thc majoF cities "Paaod l~adquarters at College Park, Maryland, i~ublishr_s a ~aor•thl ythly c~ ° 1Kation, "The Ventilator". Its chief cmphasis is to encourage 7eeAfccement of existing anti-smoking'tegislation. It is especially. 9itti,re on the A'est Coast. R:bemical analytical data -have now been produced which sho:+ that _. ••Chah-smokers have appreciable nicotine in their blood. In the presence Jbsmoktrs the nicotine content of the blood of a non-smoker will be -i the ran+qe df 101 of the smoker. The level in the blood of a ron-_.. ;:•Rjmbker depends on the exposure, namely, on the amount of nicotine Argthe air which the non-smoker inhales at any given ]ocation. 'Op Qtnis now generally accepted that nicotine is present in the air in.... :3jc§ t-buildings and it is likely absorbed by the furniture and by the .:-:.,b/otd and is slowly released into the air so that smokers and especially ;.:OcM-smokers inhale nicotine which then gets into the blood. The nificance of these low values oL nicotine in the blood ot.non- kers •is unknown. M r rtiany event, the propaganda to restrict smoY,ing in public places .I • . wlt l continue to gain momentum. ~/ -l 1 .:.._.. ~ P2D 008410
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• 10 - 002179 `l:e Unitcd Statna Oel+:~rtmc~nt m( t.ericaulturc e Beltsville Agricultural Rcsearch Ccntar at 1leltsville, Maryland, .ds a pro ject unde rway under an .igrr.c•nen t w i th the Na t i ona l Cancer Institute to develop tobacco that will be allcycdly biologically less=-~_~ active when used in cigarettes. .E imental tobaccos are Leing grown which vary in genetic and ~ ~ .- . ral practices. These are being cured and proce....~d in various x and samples produced by these experimental processes are evaluat:ed'~ bM ically. C.) .: •r.~~ Or~~athe= unusual process which is being sti~~licd is a radical de- , ~ ' ~ pa®re;fznm the conventional flue curing prnces3. Upon priming, the '~SS • ic~uas,.of~lue cured tobacco are maccrated and the slurry is then a2 ed.~to ferment at 130 to 140' Fahrenheit. When fermentation is cp te,'rythe mash is then converted to a sheet, which is then cut in ..£rips and converted into cigarettes. Since the cmoking duslity4=*= of*Fese cigarettQs is highly unsatisfactory, i t is unlikely that the.----*M ..:. pr t i+fll be used commercially. Monethelc:ss it is planned to eva~te:`the biological activity of the smoke of thc material with ~ A" th~ pe ~that it will be less biolocjically active in animal te sts. .... ~ • . : .t'`~ A ~~uze of this process which has received concicler.ible publicity Or;72~" is isolation of presumably edible protein from one of the steps. '~ .. ._ Th ~heninventor speculates that the process will provide both an r='=" a11pdli safer smoking material and an edible protein foir human ~ con•o~ptr,ro~t. - ~~ C 2yThc-Tndu_s_try a ... _.. >Aq lihd'Health Research SuppoztNd . _. ~ m -1 =- S ~th® nid-1950's, the Tobacco Industry has supported smoking health',•°~ rech~at various universities and some research institutions through_.. th"ency. of the Council for Tobacco Research (CTR) • and the American ':1 ;,; Meddtlal Association (AMA). Smoking and Health research is also bcing _.,~;.. -_-~ sup ted by agreements directly with Harvard University, Washington Uniityat St. Louis, Missouri, and the University of California atT" Loslkaoqeles. About $75,000,000 has been expcnded at CTR and 11MA and ther O er stldies to date. ~~ ~ ,...:; r ~: n M Ttieerdsearch is aimed primarily. at gaining a better understanding of theRplogical aspects of smoking and is not applicable to the design or .f.ication of commercial tobacco products. -tnZ ;j The QJAlversity of Kentucky Smoking Health Research - ~-7QVJ ~ ; - - .. - , _ In ~b•the Kentucky Legislature passed a law specifying that the procecds from'3f- one-half cent per pack tax on cigarettes would be used for Tobacco and HrLalth Research at the University of Kentucky Tobacco and.Nealth Reseaz%h Institut ~` e. Ln m m ~ ~ 00 o a, o m P2D 008411
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t;ith the cons3dcrab!c• tuniJs hicA potentially this tax provided, a rather ambitioua program was planned in the arua:i of (1) Tobacco "roduction, (2) HanufActure of Tobacco Products, (3) The Chcmi4try nd Physics of. Tobacco Products and Smoke, (4) The Rr:4ljon-,e of Non- numan Biological Systcros To Tobacco Products, and (5) Ihunan razponse to Tobacco Products. ; ;:It has taken considarable time to .rovide facili tica and set up ~~organization. Some projects in the :jbovc areas have gotten rway. However, nothing has emerged.as yet which Ss likcly to ~ mbe anyreffect on tobacco products in the foreseeable future. ~ -- o0 .z-?t~ qeBritish 1lealth Ministry : _ ~Tberitobacco industry in Great Britain at one time maintained a research: }e~t~b2ishment, the Tobacco Research Council, at Harrogate, England, to`, L°duvork;,bn smoking and health. This joint industry effort was dis- ign or modification of tobacco products. dc's inued several years ago. The research has had no direct effect gn.:1-;e . ~ - ... ._s . . • ~s-.° . _- T~ N British Hcalth ministry and the Royal Collegc of 1 ' } e hysicians has ~ ,- ;;bft ex2io.iting the public to reduce smoking and also to abstain ' r ;a~ggether. These efforts have had relatively little effect on per cap"~~ta cigarette consumption. , Z •....:. --. _ •T~ ;~ublic in Great Britain has however switched from non-filters to f t rsb Filters represented only 2• of the total markct in 1955. W.glputZany exhortation on the part of the Government, filter .~; eaq WmpMioA rose to over 78• of the total cigarette marY,et by 1970, aQit Rresent, the people are switching to low-"tar", low-nicotine :_ Jersz: .:..M m Tq Pi. sh Health Ministry however is playing a key role in deciding - on<t3;e use of tobacco substitutes, particularly the New Smoking ~ Ha6cQial- (NSM), and Cytrel, the Celanese product. It had appointed th~ Y!'iunter Committee to conduct tests to determine whether these ma e8ials are acceptable for public use. Z Th 3lunter compairy issued its report in 1977 and authorized the use ~ .~;~ of M and dp'trel in cigarette blends. These new brands containing sytt~.}~(etic,,tobaccos have not been successful to date. It is now gel~Demally believed that the smoking public will not accept tobacco ~" suggLtutes. = i r. N Z Asaation of the Cigarette Industry of West German 41 O Thd„n~igarette industry of West Germany at one time established a sm.7ciTg and hcalth research institute which conducted biological stud s aimed at modification of smoking products. This joint ` ~ rese ch effort was discontinued recently. The biological studies ~ which have been terminated have not had any Impact on products or " m ~ processes. tA 0 r 0 v -d r 0 W P 2 0 008412
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- 12 - 002181 After the closing of the bioloyi cal re::narch i n.t i tute, the , cigarette industry of 1.•est Germany has joined *forces to support ~ smokin health research alon the line of the Council for Tobacco : Research in the Unitcd Statas. w~. %baut seven ycars ago, the German ciyarette industry promoted marmal-"tar", low nicotine cigarettes, but these wcrc not successfu2' %m the. marketplace. There is an indic.ition that the manufacturers ~l 1 7 m that, country will follow the U. S. trend; namely, the promotiorl.::of•;n ~ ~ medium-r.icotine • ium-"tar", mediura-nicotine or perhaps low-"tar" ~ Z'4 r' , ~,~ y; :-Sarettes. ~ ~ ~ ~ z J'~'oderal: Trade Commi ssi on `tXFW most recent report, the 20th, was issued on August 15, 1977, it• listed 166-br.inds, an increase of 107 brands from November ~ .~? . to'Ojgtober 1977. . „~ , m 0 :Af ~ying•`on the recommendations of crrt•ain scientific and medical qr ~Oiizations which alleged that smokers should be encouraged to ••A ce "tar" and nicotine intake, "the U. S. Governcaent through t he Offiher)of the Federal Trade Cr.rr.mission arr.ingcd in 1967, for the wejt'i.od3c determination and publication of "tar" and nicotine values :6. d~rral4cigarette brands. The first report on 59 brands was issued ~' Ns ~r•~.2?, 1967. Since that time, rcports have hcen issued = ffioxd^te* at 6-month intervals. The most recc:nt report, the .4%. JAs issued on Deccmber 10, 1976, and it listed 169 brands, :ataClncpase of 110 brands from November 1967 to December 1976. p ~ . 21st report is expected to issue in June 1978 and will liYely M "tar" and nicotine values for 167 branc5s which were picked up cluring the period June 1, 1977 through July 15, 1977. z0 ~ .. IV_Ias been spec;~kkated from time to time that the Federal Trade Caission laboratory will begin the determination and publication ob~he.amounts of certain gas phase components of cigarette smoke, .i= ' -"~ as acrolein, hydrogen cyanide, nitrogen oxides and carbon T,xide, along with the nicotine-and "tar" values. TftZnost:.:recent word is that concrete steps are being taken for the ' d~~nination and publication of the carbon monoxide values for all ~ c grette brands, along with the "tar" and nicotine values. The d3Tfttor.of the Federal Trade Commission laboratory has already placed ' arForder•',for the analytical instrument to determine carbon monoxide. ""` . z , , .. O ' -~ Pzo 008413
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r~... - 13 - - - -- - 002182 1ie expects it to be installed In Decumber, 1977, so that publication of carbon monoxide values rnuld begin early in Y-t -'''~une,. 1978: however, since c:crnsi 1crrablc timrn may be »rres::aiy w~ '"_mbo make the new r.+achine opcr.itional, pub]ic,o.inn of c.irbon •::m aTonoxide values may not begin until late 1078. `C cA ~ .: > ~ric~an liealth Foundation ~I ti n i N i lth d = me i t ca o ncothora can z" e 11 r Foundation is a tax-ex•2m"t oiOin ~ tlie"`State of New Yok It id irch in prevcntive:_ ]er.s engagen resea j-,~ ,,-- ~~ .:.,.::.- i~ciiiel It was founded by Dr. Ernest C. Wynder who along wf th the :~ P.04owned Dr. Graham began the pretnnt smoking and hca] th co,itrovers~;,~~ r:~sflthe:-carly 1950's. Among the prc:rnt contract3 of the Foundatiori ~, ::.,.~_Qqonej on smoking •and health which is supported by the National Cancer.: _: ~:'~c~3titute. It is an epidemiological study of the effects of human xi.ng,;;ot cigarettes ot varying "tar" ana nLcotine contents. Zv _ "'t KV.~ Z' :..,•.~ . . "_~early interpretation of the cl fects of s:nok ing, Dr. t~tyndcr ~..SLs:Zumed that tobacco smoke contains certain biologically active =? PaRstituents which arise during the smckiny process. Iie then '` ;~.' $so d that the reduction of the intal:e of thrse m:,te,rials' would duc~the alleged health hazard, and based on this- assum?tion he ~~scrabed irays of reducing the exposure. Anc way %,:rs for the smoker ~dchacflgtr'hia smoking style, by refraininr, frosa inhalation or taking Other rccommund.~tions ~+ere conc_rned jgver ~uffs ~on a cigarette. w4 ~1 1 merdification of cigarettes. One was to use additives on tobacco =~I= ~ed3.ce the formation of allegedly harmful materials. Another 3!~ ~mmtendation was to extract tobacco with certain liquids to remove :F54Mursor's of these same materials. The third recommendation was to.. imaerporate filters in cigarettes to reduce the amount of smoke to be V t'1R10n in^:by the smoker. ' .. Aft~r some tNenty=five years of laboratory experiments and epideniologi- studies, Dr. Wynder has abandoned the idea of using additives or .. e6t$actions as a means of modifying cigarettes. In his most recent _ ' and publications he recommends the reduction of•tai"intake in cPltr to-~reduce the allegedly harmful effects of cigarette smoke. .;,~~. .. Iniysseltte he agrees with Dr. Cori of the National Cancer Institute whb3ft views on allegedly safe smoking are set forth on pages 2 and 3 ofl Ehis report. M CA :~ . D9 ~kynder has announced that he will co-author an article in " : t?ie~ cientific 1lmerican which will likely be published in the ear~i spring of 1978. It is our understanding that In this art,Ucle he wi_11 recommend strongly the reduction of "tar" in cigarettes to 8 mg. per cigarette and nicotine to 0.6 mg. per cigarette. P2D 008414
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- 14 - 002183 - - - - ~.•. _ - -- _iiort Summary and Recoma+cndntions go A. Recomnended 'tar", nicotine, and carbon monoxide values. hi:-Alications issuing from t.hc t:ational Cancer In::titute, the Dcpartmcnt m~sychia•try of the University of London, the Dapartncnt of Psychiatry ~~the Univcrsity of California at Los l.ngclca, and the University of%.' ~gmbia allege that for s.~fur :noking, consumers should use brands•rith ;`R" "tar", low carbon mc,noxide, and medium nicotine. Thus it is an ' Rd that cigarettes with 5 mg. 'tar", 0.5*to 0.8 mg, nicotine .nd ~~~q. ~;~ on.monoxide will gain wider consumer accehtance. 74 e p3garettes will obtain a"qualificd" endorscmcnt as "safcr" 0. ing from an increasing niunber of health aut horitics and their P~t2 - continue to grow as people begin to f..•el less anxiety ~ lcrvt stnoking them. ;~:7ro0 •: ~ e,- tfie marketing chpabilities to ini.roduce and uucrc:ssfully market :Reynolds Tobacco Comp.iny has the technnloyy, t:he mAnuracturin in this category. D"lopment and introduction of these brands is recommended. n~ mm Z.~ R-.ai CRaip+aatcrials ' m m _`ccA with higher nicotine content will be nceded than currently a~Olab3e to meet the requirements for the forthcoming low-"tar', .~,= '~' m1nicotine brands. It is probable that seed for these tobaccos_.:.. ave•already been developed. Availability of seed for farmers ° s ~~ ld be expeditd tblidtif hih *0tseo enae agronomc proucon o theger nf_~o ine tobaccos. Z C m0 n ?J Ov Cm '~~! D VI Z pv M N ar 0- tturray Scnkus P 2 ° 008415
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002184 l111iI.1 00-(tAi'11Y - cr... . F.tiolo ical Factors In nronchiocrnic C.ircinorna With Sh e,cial ----•-- -- --• --- _ • - - -- -. --_• --• Referenco to Industrial ExEosures. ~ .r .. Ernest L. Wynder and Evarts A. Graham : m-f Archives of Industrial ttygiene and Occupationil Medicine, ' _w C y 4, 221-233 (1951) . " ~ ° m O .n••Cigarette Smokiny and Cancer of Lung. --•••-r ;:=:O-m Evarts A. Graham, Ernest L. Wynder, and Adele B. Croninger. ~ ZAbstracts of Papers Presented at the Autumn tSceting of 1952 National Academy of Sciences. Abstract on pp. 521-522 (1952). - .•. s 4,..~ i arette Tar imental Production of Carcinoma With Cic L~'~ E e • a -1 r --- --- x ~ ~ _: - u' vs • . < - . ` , ~- ti OErnest L. Wynder, Evarts A. Graham, and Adele B. Croningcr. srC ZCaneer Research, 13, 855-864 (1953). ~ ; ~a=>' -•~ - -1 ~ m=,." 40-4Low-Risk Ci arettes: A Prescription. x Gi~B. Gori. Science, 194, 1243-1246 (1976). ~ :: m ~ N •~ .L . ~ C .Q. ~ ~tl: ~. Public Health Service, 1968. -a m ---1 :, ' : 37 0, . D . : 6c ~"TCJ-r" and Nicotine Content of Cigarette Smoke in Relation v0 - m >To Death Rates. O . . z~. Cvyler Hammond, Lawrence Garfinkel,.Herbert Scidman, and -f3Edward•A. LCs+. Environmental Research, 12, .263-274 (1976). - =~ . . ,- . . m0 .0~. 7D CRealistic Goals for Smoking and Health. A Case for Safer Smokinq/- rr C t ' ~~I`,,,,A. H. Russell, The Lancet, .1, 254-258 (1974). ; y Z-* Op ..:, 8.0.3 *eactions to Cigarettes As A Function of Nicotine and "Tar". ma . ?Opbni Goldfarb, Ellen R. Gritz, Murray E. Jarvik and Ian P. Stalcrman. flinical Pharmacology and Therapeutics, 19, No. 6, 769-772 (1976). 0 Ln ~ .. ~ 9. The Chemistry of Smoking. Time, 48, February 21 (1977) om m , ~ ~ 00 0 m ~ m 0 m .i P2D 008416
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i 51601 8607 sote7 71 oe N ~ • G .,I al u .a q C O --i U ~ ~ . O 0 v. ~ = U n ~ . . ~ ~ 'O C .-i I < I r7 ~ >. C •.U. 4 , . r0 • c 1 i, I 0 1 .0 ~ ~.- 41 c •~ u w r^ ..., . x w ~r C w 94.4 4-4 e h :., g r v •T u°I l 41 - - ~_. ~~ > p CONFIDFNTIAL, • a h • ,. ' . THIS DOCUMENT.AND I+/ .:ONTETIITS ARE SUBJECt TO A COURT ORDER AND SHALL NOT AE USED, SHOWN.OR DISTfiIBUTED EXCEPT e5 PROVIDED IN THE COURT'S ORDER. ,.,;. 1: .• : ,... . . . • . , . • . :~ ~, . .r
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I 'N80W S.i1r104 D1LL N1 OoOtAOUd SV iJ-mX3 Awt16t1LLSiD !i0 N/ytiQ"s "A•$A• 1dN 'T11/Ns ONY IHOdO 1Nt10:; Y Ol j*31'8(1S 3ti1I 51N91NOa 8!1 Qr'Y ~~ • . .. 9 ,. ~ N N iK m ~ ~ $ ~ ~ /~. O Q ~ I I 1 /. +: 0 ~ ~vovt aee.. •.. r 51601 8608
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I contradfctory effects attributed to it. tiW of ttuss sswe effects aay be -- achieved withowr pAysiologietlly active sttrials'such as caffeioe, slraRol, tranquilizers, sedatives, euphorics, and the llke. Theretore, in addition to coapeting with produets of the tobacco industry, our products o may, in a sense, coMete with a variety of other products with certain types of drug action. All•of these oroducts, tobacco aad other, appeir to have ~4d • _ ~_: certain cosoaon attributes in tl~at they are used largely to relieve, in one" ~~ ~ ~ way or anatl~er, tt~a fatiqyes and stresses which arise 1n the course of existe~~ 1 • in a comlex society. •8E r Happily for the tobacco tndcsstry, nicotine is both habituating and <o unique tn its variety of physiological aet;ons, hence no other active erateTA or coasbination of ®teriils provides equivalent "zatisfactiott". Hhttt+er ~1$ Qtl1 nicottnt eriZ1, over the long tirar, aaiatitn its unique positioA is sebleel wau -ever occur. it is safe to assume, Aowever, that nicotine Nili retain its' 0 cninue oost tian thrauohout the oresent ten resr Ajuusing period, and probab7; for a ~auch longer span of tie~e.: . - ~ ~,~ v, - taZ _-;ow m If nicotine is the sine Qus non of'tobicco prodvcts and tobaeto products are recognized as being attractive dosage form of nicotine, then tt is logical to design our products •- and where posslble, our advertising •• around nicotine deliver7 rather than ''tar' dellvery or flivor. To do this we n.ed to < x to sosme reasonable doubt. With thereased sophistieation of knowledge in 8 y w the biological and pharmsceutfcal areas, a superior or at least equivalent LU w ..«. product or product mixture may Rmerge. For tfiis reason, it would be a mistsllf v to assume that the tobacco iedussry, as -.+e now tao++ it; is tamortt'l or that aty . ~_ direct coaaetition from organizatiorss outside of the tobacca tnditstry wit1: az r ~~R~~Opp5
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I dev+eJop new data on such tttinQs as _tltie_oysiologicai effects of aieotine, k__ _ - the -rau of absorption and etimination of nicotine delivered in different doses at different freouencies and by different routes, ahd ways of enhaacing or diminishing nicotine effects snd "sitisfactioni.". In the abs s of such data, we may survey the earket and conclude that current cigarette ' A :; products delivering about 1.3 ag. of nicotine appear to "satis~fy' the typiciz,~ _ sRoker. 'n+is, somewhtt crudely, establishes a target do:a9e level for desi%,,~' N of new products. An accoeqanytng Research Planning Proposal describes that ~+~ a00roath in so= detail. However, if we knew more about nieotlAe ibsorptiorFi~ . ,,. us action, elimination, enlstncrment 3hd the iike, it should, in theory, bf S= u°i possible to mor4 precisely specify, a1+d deltrer, the optieaon sa+ounts of nieoU49 w activity in sophisticated products which would be more satisfying and d"fr p . . < InU1 ~ to the user. This eres sserits coa+sideration and activity. ~ . _c < W~- gefore proceeding too far in the dire.tion of design of dosage formlfc* v nicotine, it ray be we11; to cansider another aspect of our business; that 1tp cu W 60 the factors +•hich Induce a nre-smoker or non-smoker to becoae t habituated om V smoker. Paradoxically, the things which keep a confirzad smoktr habituatedv,,, 1 i l tive ~ i i l fi d - d " " pu man a an an ca rricotine ard secondary SaL s ed o , i.t.,sys 9ratificitions, are unknown and/or laryely urresalained to the non•saioker. does not_start smoking to obtain undefined physfological gratifications•or reliefs, and certainly he does not start to smoke to satisfy a non-d5'dstent craving for nscotine. Ritfser, he aopears to start to smoke for purely ~~ psycholoQical reasons -• to emulate a valued iauge, to conform, to ezperfeent, .. ' to defy, to be darinq, to have something to do with his hands. and the like. Only after experiencing smoking for sow period of time do the qhysioloQical 'sztfsfactfons" and habituation became apparent and needed. Indeed, the -ftrst RJR00000g
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5 .i I i Salting ezperf,gncts ire atten unoituant wW 1 a tolerance for Aicotlne has been develop.d. This le+tves us, then, in the position of itteepttng to desiqR and proaiote the saaie product to two different typas of ewsrket with two different sets of motivations, needs and exp.ctatians. '1'ha ssme ~•. situation is eecovnzered in saare industries, but the problem is usually not ~ a as severe. N M. If what we have said abovt the Aabitvated smoker is true, tiza+ prodstct4 .~ ' designed for hi, shoyld esphuise nicatine; nicotine delivery efficiency, ~!N .. . nicotine satisfaction, and the like. Whst Me should really mate and seti Q9 would be the proper dosage form of nicotiae with as sany other eui7t-in attractions and gratlfiutions u possible " that is, an elftcieet etartevy delivery system with satisfactory flavor, eildness, convenience, s.ast, e& 0 u a ~< On the other hand, i f Me are to ittraet the na+-smoker br are-sscEer, .ttt~+e ~~ 46 !s nothing itt this f4pe of prodvct that he would cvrrenttr vnderstand ar~ ~ W ~~ desire. 1le have deliberltelr played down the ro1• of nieotine, hence the non-smoker has little or no knowledge of what satisfactions it sAy offer 4t ,e and no desire to try it. instead, we soaehow auest convince hio with who3lrtwa i t•rational reuoas that he shovid try smoking, In the fioae that he wi 1l' lor~ d himself then discover the real 'satistacttoeu" obtainable. And, of covesc: s... ~:. the prtstns adwrtising cliaate, our opportunities to talk to the pre-sa=ol:e~~ sr+t tncreasingly tisitrd, and therefore. Increasingly ineffecttve.-Yovld'•4t°~aS~ not be better., in the tong run, to idsatify in our own einds and in the• of our cvstomers what we are really sellirg, i.e., nicotire satisfaction? , Th i s Konl d enable us to speak di rectly of the vi rtuas of our product to the a J confiraCd siasker, and would educate the pre-smoker, nerha0s iedirectly •b'vt $ ~ effectively, in wf+at we have to offer and what It would be expected to 40 0 0 for him. ~ ~ R'ROOOOO7 ~ ~ ~ ~
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' .1 6 8ut a94q, the Dictvr+e !s nat q9M a11 that elesr. Cri tics of tobacta products ittitrtatingly allege that smoking is daagerovs to the haalth of the saoter. Part of this alleged danger is claiaed to arlse frog ingestion r- af nicotine and part ts clai=d to arise frda smoke campenenti or sooke 'tar". If, as proposed tbave, aicatfrce is the si„~ne„ Mrn, of saoking, and if we arekly accept the allegations of our critics and mve taard r - - I reductton or elimination of n,*cottee from our produets, then we shall eve liquidate our business. If we intsnd to remin in basiaess and our bu si ' the manufacture aM sale of dosage form of nicotine, then at soae poi nt re ~~ . Z a+ust aatce a stand. Ye should knaN em, rather than less, than our crttict to about the physiological effects•of nicotirk, and we should in 411 Wars ' ~'~ -+ 6-o scientifically validate and speak to the ber,eficial effects and •satisfa~io~ 2 t~{ derived from uu of nicotine. f ssentially all comnerctal drugs give r4so 44 soas undesirable side effects, but we continue to use ttum witts,qr.at bs~tilt x to humanii;y because of their Ov+erridixg be,eeffcial effects. Night we not t:~ ,Ww a leaf from that back in our approach to nicotine? iklest we do, cur lonyt" 042 U °C ' prospects Oecame unattractive. ~ .- .r• V wn L~ Our critics have luuped 'tar'~ and nicotine tagether iR a:tce3r allegatiaa~~ et~ about healttt hazards, perhaps becaus+e 'tar` and nicotine are gtnerited *tc' rs in var7sng proportions when tobacco 1s smoked. An aczaaqanyinII Resat m Pfanning *aOrandum suggests an approich to•reducing the amQunt of 'tar' "iri A Z cigarette srecke per wsit of nicotine. That is probably the ee=t realtstt. c ~ approac~+ in todaY's aricet tor canventionai cigarette products. Kowever, another .+orr futuristic a0ornach ts possible which qoes .ore dlrecZlr to the 1 fundamentals of the a11e9ed problem. RJR040008 ~
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1 ~ If ovr siisess 1s fvndsr+entsllr-tl~at ef supplyi.ng r~icotiat ia usefvl dosage tbr., why is it really necessarY that allegedly hsrsfvt •tsr• acco.pa+W tbat afcotfRe7 There shovid be sosr si~+pler, •cleaner•, eor* efficieat and direct war to proride the desired niCattne dosage than the g preser~t systee tn.olrfng coabtrstien of tobacco or even chewing of tobacco. ~' A coee~ree+tional 1000 qg. tobacco rod containie~g abos~t 20 a9. af Ricatiat is F ~ _ g ~ suob:d to Oroduee only about 1.3 eq of saoke Aicotine. accaepanied by aboot .cW ~ s 1 20 . of •tar' and 20 . af ' m9 a9 gas phase s~atter,~, anG i•i.f~siewl~e}¢a rt of aM of seote eicotiae is lost t~ the saolcer, ria ~ch aled smohe •• 88 the 13 e . q svrely ut itnlttCidtt 1ticotlrre delirery systa. It should be passible to I r ~ u= obtain ovre nicotine by smthesis or from high•e~icotiae tobacco. It shoecld <W • o0 t~ett be possible, asia9 aiodificatteexs of t.chaiqs~es developed by the i •{ • W t.` h i i h f + i p aeancust at a cot cal aad OlAer industr es, to delirer t ae to tfie ltseE inearporate rar+ous flar.prants, erdtanaers, ard like desirable additiwes, = efficitnt, effective. attractive dosage fors, acrampaniled by eo •tar'. ~ phase, or other allegedty barvful sabstaaces. Tbe dosage fcru could v dc . ... . _ .Y1W , . V s .onld be desigaed to deliver the ,nfaias effectire aacvat of nicotiae at th desired release-rate to supply the 'satisfaction' desired by ttie cser. SW.MH , . - . . -.o i prodvct "ovld atzioizt the benefitsderived frm ntcotiae, eiaiwi2e " ~ O allegedly ctndesiratite over-dosage side effecss .froa aieatine, md e7ieIaitt'i~ eaposvre.to other eaterials alleged to be harWvl to the user. For the3 term. Me slLouid be worbing tokeard fe.eloQ•ent of such products •• tf .re .do e~i ~ i Reri tab lr soeeoae else +ri 71, t n+d there art s trong i adi titt oea that otl+e.rs=-mej .. . h already .bring in lisis ditzction. ~ RJROOQQ09
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8 I '- In the - ~ owse"t real sitoation, where nothing has been done to counteract , the adverse allegations about nicotine and where canventional prvdatts del i veriag adeqyate arounts of nicatine dosinate the ,.arket: iscs, no abrvpt change in our postvre or strato2y would be approariate vr reasonable. TMe approschss advocsted above are aised it stopping and eveotvally r.versi a trend that a~y 1 A the 1 oa9 term pvt as out of bus i,+ess , and are i ntendsd: t~ Q= . • a lay a frsmeworic of philosophy around which researdh •fforts .ay now begio, w~ Fb~eful ly, soae day we wil; rejoice rather lha~ despai r when a nes~ crop of • g- ~t tobicco shors an wwsvalTr high eontent of nicotine, ovr prieary product: 39 • V= Hopefully, with tiae we will be able to develop sophisticated and improved t1 ainteane dosage fornea for nieotine rrl+icb will be aoe•s satisfyinq•to the essr 1-5 I and free of alleged health hazards. dod hopefully, by that time, we trillZ ~` ~ hive been able to establish aad use tnforerttioa showiftg,tlut use of nieot$k'A A fills real, deaoRstrable humtn_ needs, tbt beneffciii effects overriding ~$ - F allegedly hararful side effects. W z o IY W m IttOIVITED RESE1tRQi OEP/1R1fttNT ALT?YITIFS AIft7 MPftaACKES: ' If the above is a val id l ine of , reasoning, then our l ong-tarm futuTe coc~,rs . • =o '-a of action should be as follar:._ ]. Reeogni=e the tar role of Ricotine In conscss.r satisfactiao, aRd.; and promte our products with this in aind. _ 2. t1or7 precisely defiete the dnisuo amount of nicotine required it:r- ..~r°'-2 . . . . .~..~~~ `ut{sfaction• In terac of dose leveis, dose trequenq, dosage fors,' and the like. This would involve biological and other exptrisrints. J 3. Sponsor in-deptl+ studies of the a+systological , psyd+ologieal and other effects of nicotine, ateed at dea+onstrattng the benefictal effects of nicotine and at disproving allegatlora that nicotine produces ,na,jor idverse effects. R, R oooo~ o W it N~ N Ln ~-A 01 m ~ 00 (7, ~ ~
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4. J •jhb smicer. " ~~ • Nz . .... . v ~- J o • . e .. . Ln ~, m r 1 RI R0QO Stalt~"deslqa And evaluate new or improvred sYstass for delivery of nicotine wh3dt will proride the otnieoe satisfying e.ovnt of nicotiae fr attractive form, free of allegedly harWul , 0 ea+bvstion producu_ Styalr suis for .ntiancing nicotine satisfaction via syrergists, ~~ ~ ai terat! on of pN, or other Mun, to Wi niai ss dose 1 e,rel and _r .: . ayximi ze dtsi red effeets. p5 S i. Nohitor deYelo"cnts in Raterials and prodsrcts vi+ith my coapett ~ou with nicotine products or aMdh aight be cadsined with nicotine a~ . ~_ 5. products to provide added advantt9es or si*tl s ftttf ons. t$ 7. Meeitar 4ork by others .rhich aight be ataed at improved nicatine' cc ~ rp 1-tI..~.r. 6" YG a 4rGrj ~Ji ~crV %F • M9% VVi y~ vyyricra ar.a r.. ,.. W4. s. Search for and evaluate other pftyslologically ictive coepoMRts -~~ . ~ . ~~ of tobacc0 or i ts Ssofce which nay proride dss ired elfscts to Llie a
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>4 ...•~„ aa~ . ResprcF~ OaFa~~ ~i Ndreh 15, 1976 ~ %r R J R OQ~~rL4 s aC OC ~ 1. TtiE GEiFRAL 811SIltF S IATE I I. TNE TOBACCO ItJD'JSTRY AHO R. J. REYHOLDS TQ8RCC0 Ca•4pqhy III. THE RF~ DEPARTHfHT 3• ~~ p 2 A. • _ ~ a ~ .....••..•.• <~ • ... aa ~, . . • . . . . _ _ 6 ~ c. i~u~ TAxATIOr, ' . E7C. . . . . . •~." ~: m . . . . . . . • , . -9a. ~'< '' D • ~t~~~TERIALS AYD. pROCESSES - ev ~ E. pR~p~` lo <O . . . . 14cJ F. MT 1FOt~ • . . . , • • . . . . . . Z - .. . .. . Q~ . • . , . ~~ W 'a cn ~/y9? ~ "~ EXHIBIT NO. ~ _ k-" S~Cr- nkL t` P(11l;JJIiJG IlSSLGSpT10.1S AND FCXECAST FOR THE PERIOD 19::: _~985+ FOR • ~ RFYtrOLDS TG O "CtO COWANY . t
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I. ..~~ 16 • . we sr~.suE„l.iciently astute to identify those needs and design sn4 v Z ~ se11 .pt"tts to meet tt~em. t~ ..-s: maym ihcrd t. Product labsltn will _beco+ae more definitive itt 'r'Z ters oi~pasition, date, hatards, and the like. : ~~ . ov.r the next decadeh ildliti ~ will cause a cingen wor economy and ;.oes.,o. a chinge in national priorities and life style, znd increased cost'~. v,ei and difficulty in doing business. Concern for environment wi11 ro,r.xe~rr= •; high a,~ong certain groups; and although energy nteds will ~inall~ y m outweigh environscent csnsideratt ons, tl:e environxental groups•r+ill ; X @ ' conttnua to fight Ind delay. ihese influences will continue beyor.d.• - the projection period and will intansif needs and environ- as ener y gl ruent cansiderttion exert a greater •ffect on the avert3e person. 7. The U.- S. standard of living will not incretse at tht rate of the iast decade. The a:ount of discrttionary inco.-e will detrease. The main squeeze will be cn the raiddle econanic class. RIRQ00o25 11 • exert great 3. Norl d:l®dkxs of sr4ril i ty, such as tne Pope, wi influeiasleAa eodtfy the personal mores, and conscqlently the civil - °Ot and p values, of the present "ur~der thirty" ags group.• '~-* ~• There i be a strong swing toxird aholesonaeness, integrity and _ e ; , °~'"Elecen •Ariat1 ons ' will affect the consumer outlook and product expecta-:a '.. ts group. Pri ce, qwal i ty and durabil ity Ni 71 become Z? u1 ~ ;-r-more fp+p0 than fad, flaaboyant fashion or sex appeal. ---~p• tcs av in 4. The "eon ix~" movement will rea~ain strong, and the abi 1 ity of '' consu LQ objectlvely judge the quality and utility of praducts ~~ 5. PreseriV 'scio-l:gal•9ov.rnmental trends will continue. Concern for. ~ y "social justice", environment, energy, population control, and rs= product safety will remain aign. Coverr.m:ntal regulation of almost"`i=~ r~ all, aspects of our society will increase. 6. The energy shortage and to a lesser txtent other me,terial shortages. :E ~ ~ 1. Ttt6 GCXCRA[. SUSIUESS CLIN.4TE No sudden ctange will occur in the "system" or business'environmer.t $_ in which we operete, i.e., there will be no •catistropnic pestiler.ce, _ disetse, aorid war. re'rolution, major deyression, natural disaster, ~ or the ii&e. There is a possibility of renewed earfare in tht --: ~ tiid-Cast prtibably a3ain accwFanted by a petroleum crisis. p ~ 2. As the present "ur.der 35" age group becomes the dominant power group aq in our society, the new personal and political values of that group ~ Q will exert a more predictable tnfluence for change upon most aspects.. ~; of sovernasent, society, business, norality and foretgn polfey. The: Q changes which occur are not expected to be favorable to business. Va Nowaver, this large consumer group will have needs to be satisfied.. ~= tn ternd of tobacco products. T'nis offers us a large market if *9 I.-
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i Z - . -.r., .~ .., 1. TxE GLttEnAL SUSIftESS CLIf;ATC (cont'd) 8. The health consciousness and technical understanding of as applied to products, will increese. ..., ? 9. 10. 11. several snore years. the popvlttion,o arice-w4ge•proftt controls rrfll remain a possibility for at least -:.' Coping with the business crcle wi11 remain difficult. The profit squeeze will remain a major problem unless periodic "pass•througn• price increases are competitively feasible and altowabte. , inflattbstw111 probabiy run at about 8% and unem¢lor4nt at about 8%; politiciar„ will continue, in elettion yeirs, to place intlati,orqhave been cycling togsther. As a 10-year awrage, I ' Oue in large part to politicil tamre ring with an economy already under real stress, It was long ttsought t2hat the economy rouid ryels betv:een high unar+plo)=aent and hioh Inflation at about 2 to 3 Year intervaisx Nowerer, it is appare:rt from recent experience that this idhaishou]d be abandoned. For severil years une~elopent anta;.: a~ore•w~s~it upon full employment thin upon pri~e stability. AlOW-a _ Jwi i w.+ rwi~.wi rVw wwuwr".ww* je ~ww.rw~fls/~ ~n f PAA11.111w!{ 4f.. .J'P011 CY'~n7 t- -- a- - -- - -- ~~ O. ~.~Ili ~ ~'{it '17'" A key~,~or .in the control of the ecor,oary's vigor is the 6ecreasiz~:• ~ X birth rate. Even "at currerst TevelS-, every facet of the jvvenile ~~ asarke~es~y expect ta be depressed. And only a few years beyond ~ the prdhomVn period looat;"a markedly reduced eneration of young' J idultS o-Kill'neea consuaer goods.,. Tnis may provide a built•in ~ cooliri' the economy, leading totmrd less inflation and specialized ~~ area mpi oyment. ~ ef :- 13. More and more evidence of financial mtshandling by cities, states:. ~ s ' and national governaents "ill leak tArough to tl:e public in the resvlt, usth attendant uncertaintics in taxation outlook. ~° a progran~r, abvse af exoenditures in9slch programs, carruption; wa ±r. ~ a• unwise and expensive ext2 riaentasion :+iU+ :c~cational progrtms. and. ~'s unnecessary services will Eeco« t =are evident to the p•1bi ic tnd wiJ1-. elicit strong response arld possibly backlash. Considerable instabil'li:~ a' 1n Ranicipal, state and federal spending policies and programs Ni U: c~ ~ ~a- iexuediate future The root causes svch as overextendin9 in welfate- •- Z RJR0Q0Q26
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-4 I1. n{E Tacucca tHMSTrtr uID a. J. RErMDS Touacw ca{PA9r 111. THE RESEARCH DEPt.RTt>'c;.T A. General 2. R.IR-T has a great opportunity to capitalize an the growing foret sn c.aricet, parricularly tli.-raarxet in "eao:rgirg r+asions". In- creasing trade barrltrs and interaational mnetary difficulties, increased requla• tloo and taxation of tobaCCO products in ..fareign countries, and irureased require- rnents that much of the tobacco us:a be "home qrownm ::ill add to tiie difficulty in pMtrasin3 these markets. 3. Over the long run the inftuence W politi- cal power of the lertios~rr wi l Z decrease. ~T _,~ 4. Totat'cigarette•coos-Mirtion in the U.S.A. consumptior as well es per capi,#~ iQarettz w~ be.affeeted pe?lpsily by the following deasand factors (1 f790w-an -order of estimated =~ :•.7n '2. Ta S. p b. Ag* dff ributi e, Taxatton and othery cigtretie price factors de.m. The impact of e!'A6hea] tti cantroversjc. _ e., The par capiti::0filosable Income . Far tha Drojection+"Vt-, per capita consuma#.i•on Nt 11 s tay 1 evel , at best, and CW tend to d:crease as the FercCntage of cw smokars decreasrs. I t can be assua~ed .• th' t the otherr factors wi tl have tt,ei r- ~gizal " ix.piCts. Ttws, the tong-ranSa. - o~ sa 1 es :+i 1) Increase no' titore t.yaa . W0 21 per year. . For RJR'-T; the unit sales increasr xi11 exceed that of the Lajustry at least in the first few years of the projection period, : aer 5. publie corcerrr over ener9r, inflatiott, :call tnte;rfty, uneavloy.xttt, ete. trill crc=tC a period of national psycholcgiCA1 stress, durin9 which SnoRing•heaith concerns may be overshadowed. 5. The declining birthrate, if conttn4CQt indi- cates Eeeraascd ciaaret:e sales in 15 to 20 rearz, due to tlle reduced consumption by the then lar4e ovtr-S0 age yrouo. RJRpQQp27 ner (18 and over) in this population. 2. Research Departttent will bt it~ gq RJR-I an request (probably thrt"I ~ of ~^ ~ o~ C = ?p2 i]p <tu ~ ro-'a <• 10"0 o M < .~ . Hr- Z UA ai a ~ < y c . ui W m m Y . co m Y ~
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t j: TuE T03UC0 i:13JSi"it5r A::D R. J. REYItOLDS TaT<+1CC0 _ CDAPAi:y 1. tsi. nHc RESEARCI+ oErhFr„_,rT 8. Smoking and Me~.l Lh_ 1• The sciontific con:rflversy_over the alleged effects of sraoktng on tne nealth of the sraicer rrill stibilize or abate, provided Industry, Government•and other groups begin to-reacn a truly constructive, colltborate consensus and ;oint effort; otherwise it vj* inwsify. A hard-core anti-tobtcw $toup will alNtys reassin and ui11 be ,!Oneo by anti-uig business groups in rMcks on t~e tobacco ind•.utry. 2. ?!r, nesttive effrct of ths smoking-health cantr3versy on ccns63ur behavior is •pproaching a naxietavr•.e., no new cdverse data ruld%tAAzoectsd-- to fr.aterl a cth.nca stu Ltl ti~de oT t'1te pv ic tcarar smorsiW% etstn. 3. tOtatl.tobacco in zddttton to ha~ing on tha alte association of rett~t• K crr and other M~ases ,;w41 ai or lon3-rvfge thrust a~eid ng~~i» attempt to stigmatize i t as ~ 11y objectionable and lower cltss habii. 0.ie of the major toal s i~s thi s endearcM.-wi 11 be the c:1a- .. pai~n against the etfilttr of environmental srnd e waich i s 1 a FpasSve sza:anq". 7ess i ve smolCing" :~ ined as the :x• - pvevre' to tobacco sr~ bf nonstvkers. Th'r.ee related but distinct aress need be roeai•dere4: a':'a' Legislttivr activities of anti-tobacco f~es aieed st prohi i biting or're;trict- •f99•smicing tn pvbl;c places such as rest- i+~rnts, sZ mi-pvblic ~laces such as the ~tng place in senerrl, Including offtces, fa ories, etc. A concerted effort to cotrnteract these activities is being rsade 3s~.th,e• Tobicco Institute; no RJt Initiative tswfeeded. 0 h:e long-range, more tieportant, seco.^•d irea Is the uneSuivocal declaration to :°. :1 s#Aokinq an objectionaole 1iablt. Very 1i:::e is being done to contest this ir•dustry-wjee, and in•ttJR_les effort could be nignly .inportant. Saroscing-hei i th research dor.e on a collaborative basis by Conpan,v, 3nd and private or academic groups ei'li require the Research Oepartment -Ift. provide inputs such as consttttA- analyses, and possibly variovs 4 laboratory studies. o ~ing~ Research reltted to the sa+ok~ing controversy wi l i conti nue to red$t eujor short- and long-tersn eaptta-B`iw. in r- , 2. Awareness will be maint;tned by d'it Department. 3. Techrtiques to determine c quality of sidastreas+ scroke ~ _ norisa+oker is. exgosed will b l.Z. .~s. /r~~ . . .,. ~ ` r,c, ~.~... ~~ ~ r- -~-r-~ -'~- .i ~ -3 . / 6. c . ~ _ = ys *.. m _ RJRoO002g
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14 T1tE tOCACC0 I r:Ui3~TRY 1t:7 K- J• `RETI:OLDS 'TJti!,CCQ Tb•PAyY III. THE RESEl.RCH OEf+At2 E. Products 1. WINST0t1 and SALE1•t mar'r•et shares wi I1 peak and then decline during the projection -period. ttiarl t;aro r:i 11 displ ace Y1RST0It as the leading dom.estic cigarette in 1976. Our objectiye is to r-aintatn RJR-T :"...as the Teaninc+ o..^.:any in'" o" ur in us t ry:" , xtrcm: Y t-ortaat zr: our re etoa • objectives to nava a leading product 1n each czte.-,cry znd to discover and produce "leading products in new categories. <za 2. The present large nuabzr of people in the 18 to 35 ycar V the greatest a cigarette sales, : wi 1 l conti nue ta "•~bove tne prese " JectSo pid: nero egin ma~c ~'bet~dom yearq xiden indic e that is an increasing po?ulation. A •_ •'a successful i+e-Y., :%'Sf our positton ? h.be maintained e:group represents n:ity for long-term th. Young peop2e som rr smokers at or er during the pro- brands which these zpt and use will brands in future available to to 18 year old group ant of the s^oking must socn tsttblisn. nt ' n t s marfset he. Industry is to r-1 ong term. 1. Work to improve smoke qwal 1t~ tnnoYati cns 'di rected toward e ment of ncw brar.ds r.i l 1 contt receive ma jor short- end 1flnq, -" em hasis p . , ~ u C . .~t M 2. Work to improve smoke qutlatyg innovations directed towt ment of new brands will receive ma3or short- an emphasis. , . 3..The total narket for 1oa "'tar" anCnicotine 3. i•lork to tmprove sr~•oke qualitt:Y ;y brands wi 11 continue to ero;,. The 100-rsa i nnovati ons di reaed to~rard: ati (and 100-+rra+) re4ular and menthol cate• ment of new brands ~.yi11' cant~ ~,~gories kf 11 alsolcoatinue to grow. ' rwceive major sfsart• and• los~~; b ., ~, ~g or ies Combinat+ons of thrst categories (1a0-am ~ trnphasis: ui ~ 1oK "tar' cigzrette in the 4- to 6-mg ranyt, regular and menttiol ) offer. neY~ -~:~;OPPortunitits. -The market fer very'1cw " " •.yf tar cigarates (2 =: or less) will • remain ,1imited fo r at least S years.. The loN.;"tar" cicerette orpor:Ynittes in the '^ 2• to 10-mg hnye iitlT be exploited in +oiaiihe. next few yetrs and may beccme an important market sesment• by 1981. .,. ~ ~ m m ~ 00 s N Y RJR000029 . ; TOTAI. P . 16
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I wbject ~~ .Yo) 1+ THIS DOCUME ; . 8E USED; H r ' ift ~ 1 t \ 1s7i t S!10~. i19R 51601 8622
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/ ~ ~ ~~~ ....,~,,,,,~......._.__ . . ~ _: .._..- ..._,~. . . . 15. Adult Smokers Under 25 Will ShoW'a Major Shift in Brand ~ r ;;- ~.:~. Cure for Diseases Allegedly Related to Smoking RJR Risks Government Intervention Due A Noa-Ciqarette Cigarette 000414 0 JAM", .e..l:s:. to Market Concentration'~ . .,:_ Technical Breakthrough to Aid Person to 'guit' More Easily ~ Price Zlasticity of Cigarettes Competition From Foreign Marketers Lalorcamant Practices r . 16. Menthol and Extra Lonq Ciqarettes Will Continue to Grow, $ut s rowt Will be Concentrated 17. ItJR and Phili tiorriss onl Ci arette Coa+ anies Showin Share Growth ~ , is. Lifest les and Values will Continue to Chan e Nith tAe` nt nue Brea own o Traditsona ism an row Focused on 8e -rea zat on , ~ ' '~'~ 1!. ltdvertisin s ace is Growin Zncreasin 1 Limited vs, r mand. - T ere y Re uc ncT mpact Per Exposure 20. N,edia Costs Nill Increase More Ra idl Thaa the Geneiil at on Rate 21. Ezoneration ~ .- ~_~ . 4 ~..y.. P 2 D00zss52
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•- ~ ..~..~,~_.~.~.-..._. _ 000415 CONSUMER HEALTH CONCERNS 1. Trend/Issue~Event Increased health concerns a-hout frc:a,"#+ :. smokers and non-smokers. ~-. ~--.. . ~ . Concerns will continue to increase as government, med'ia-;,and ~~ ~ 'the industry itself concentrate on the health controvesay. 1i'hat Will Be Its Zmpact/Implication7 ~.v ~. Increased demand for cigarettes that are perceived to."alleviat .tbe health concerns (e. g., lower 'tar', reduced qas)~with an "`;; . attendant decline in demand for cigarettes which do not:'do so . , (e. g., higher 'tar', full or middle flavor) - opporttinity.,wnity. : rY ':.. ..' • •.• . • . . . ' ... . • .. ..... . .. •• .. . . r . ..~.S~~l~ ...... • ' M. '/''.• Ln ~..~ ~ ~ F'... Continued decline in smoking incidence, and per capita "con- '~ sumption as a result of fewer new smokers and/or more,quitters - `i' threat. • ~`.•. When Will It Happen7 . ~ ~~.. Trend'will continue at an accelerating pace into the '1980's. ,,....~ , . . . ;~ -.. _._. . . . . ~::~. -Sources : . _. f. . . . ~,~ • .. 1QtD consumer studies; current and forecasted cigarette category performance; government and media press releases; trends in .industry new brand direction4 advertising, promotion:.;anti- --• smoking propaganda distributed via schools, health organisatiotis and public interest groups... confirm upvard trend iii •health concern. t?-~ P2D0026653
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When Will It Happen? Trend emerged in early. '70's and will •70' • !. . r 0 SOCIAL ACCEPTABILITY OF CIGARETTES s. interest groups... confirm continued trend toward restrictive. ~ .legislation and. denigration- of cigarette smokers. .. . ~`~ 3 ~.. public• smoking; Wo=ld Health Confarence . report stating primary aim is to denigrate cigarette smoking and'the ~smokez: Tobacco Institute releases; government and media press releases; anti-smoking propaganda distributed via schools and public ` 000416 ~ ~ accelerate in late .. Y..j ~±~ • . • . . . . _ • . . I -~ . SOu.rces : ~ Government imposed restrictions (federal, state,. lbcal) on ~ . ~,~i~.. ..,, /-+ 1. Trend/Issue/Event by the government, media and crusading non-smokers. Cigarette smoking and the c.garette smoictr are being ~ca~anc•: ~r a The social acceptability of cigarette smoking will coMnue to decline in the near term - threat. Total consumption will per capita consumption decline due to lower incidenceor-Mrawer among smokers, fewer new smokezand/ • or more quitters. P2Dnn96554
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.j_ 3. What Will Be Its Impact/Implication? • Ability to effectively deliver advertising and promotion . programs to consumers will be limited. Inter-company eompetition within the industry will be reduced ~ threat. .A ~.. MARKETING R£STRAINTS ' 000417 Increasing threat of greater governmental imposed'restric- tions on cigarette advertising, promotion, and labeling. Zncreased restrictions may occur iA the followin q 4zeas : ]1. Labeling... 'tar' and nicotine legend required:on , packagingJ new gas labeling requirements. B. Copy... increased size of health warning and.,T i N . legend; addition of gas level identificatioa ;,Xe- strictions on "imagery" advertising (e. g., lurther restrictions on/elimination of people in ads;``~^` restriction on lifestyle depiction, etc.). ft4w C.' Media... selective elimination of various media forms (e. q., outdoor): increased restrictions" on .~ ~ : ".: ~,'r ~ A.,- Z ~M siz abl dult audi o ~_ th d li di ver e e y ung a e ence. at a Me When Will It Sappen? .,: h ,;:. Unknown. Likelihood is dependent primarily on the philosop2iy of key government agencies (e. g., FTC) and the Coisgress. .~..~.. ~ . . ~=. 5. Sources: Past and current government restrictions/regulatioiii-r current FTC consideration of additional restrictions . (e. q., FTC Report to Congress, current warning size issue in outdoor)s proposals from anti-smoking ptiiblic interest groups (e. g., ASH); anti-tobacco elected.-, officials (e. q., Senator Moss); trend in restrictive ' `:; .2egis•lstio•n in •toreign..countries. .(e.. g..: Great Sritain) : w~ ~'- media editorial... indicate that cigarette' m~rketli~q practices are still the subject of intense scrutiny. ~xjl P2D0026655
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t• GRADUATF.D CIGARETTE TAX (Based on T & N Levels) l. Trend/Issue/Event Threat of a new Federal excise tax based on 'tar' nicotine levels. 2. What Will Happen? The Federal government will drop the current 8C pez-Aack excise tax in favor of a graduated excise tax based.pn 'tar' and nicotine levels. Higher T i N brands woudifbe taxed at a higher~rate. 0, 000418 . ~ ~ ~~- 3. What Will Be Its Impact/Implication? ;.,. ~ Excise taxes will be passed along to conswners, resuiting in a graduated price structure at retail : higher 'P-~.~T N cigarettes will cost more than lower T t N cigarettes - threat. .~,....- Consumption.ot lower 'tar' and nicotine cigarettes_will increase - opportunity. 4. When Will'It Happen? 5. _'rt: ~ +f~~ 0=1`r Unknown. Hart-Xennedy bill'proposed in 1976 Congress~as amesidment to Tax Reform Act of 1976. Amendment died'in •Senate Finance. Cnmsaittee. L ~ ' SOUIces : x, r ~ Hart-Kennedy bill proposed'' 1976; N. Y: City experisnce with.graduated tax based on T & N. C)l N CF) ~ F-~ 00 Q1 N v . . . . . . P2D0026656
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000419 Z2IDUSTRY TR$T1D TOWARD LOW-'TAR' GZGARE?TES . 0 1. Issue Cigarettes having 14 ags. 'tar' and less become volume category in the iudustry. 2. Nhat•Will 8afloenl =!• Z~ i:; o•: ~ ~ ® _`....- ~ a 1 - - - - ..y, . ~3/S:J ~ n r th4 •,; _... :. • ~:.. Concern about smoking increases among all smekers. gas controversy becomes a new facet. ~, VA rF Significant increases in coasumer interest i.n/lasowl- edge of 'tar' levels. `'-~` ~ . s Zncreased adverse publicity about; smoking and''fiealth-~.~ Cigarette makers continue onslaught of low 'tar' and 4:1 low 'tar'-low gas advertising thus creating iiiczeased 4' & consumer awareness. ~i ,c~-~- A11 new brands will be low 'tar' (14 mqs. and less). 3: •Zmpact/Zmplications - - Bi-fi brands will account for 40+1 of total indnstry ' sales by 1985:. •8i-fi xill be the onlyh growth category in the. 1adustry: : . - ~,i~„ _-.r Harket.restructures itself as hi-fi growth expected across all'categories--king size/1'00's', menthol/non- menthol, 'full flavor~ perception hi-fi brands,;;'health' perception super-low tar brands. Great opportunity for new brands--(of 40+• SOri"of hi-ti's. by 1985 nearly two-thirds will be from brands•riot on the: mrket in 1975) ' ~~ Lowered 'tar' levels on established brands is:essential =~t 'to continue to satisfy consumer needs and mai=itain - brand vitality. Shift to lower 'tar' levels creates decline in:smoking ,~ `isatfsfactiod4which • coul'd "retard-•unit -groWthvf ;; ~ - - - 'industry. , A4Z_ Maximization of taste/satiafactJ,)n in low 'tar'_ ~r cigarettes is greatest RtD challenge. •..ti. . v, ~ • N O co O1 N 00 . 1 7 P2D0026657
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. - •Rnti' and government publicity increases consumer ~~ concern about smokinq. - . brands. . ~ ~. yr1 ~ .. .. ~ t - - 1 ~ i .. . Source of Analyses/Forecast/Rationale v o- i 000420 . . • • Trend can'be traced back over 25 years. ;.~. Tremendous acceleration since 1970. ~, ~ c ~---~ Bi-fi brands have qroun S0• in share from 10% in 19? S ~ to 15 • in 1976 ct d b twe e 1975-1980 e e en proj . th qrow t Greates ~ sea reflect slower industry growth contiriued lQtD anal , , y • decline in incidence, ahare/volume increases of hi=fi ~ a a w+.'... a. . f.l1 F+ Ql m ~ P2D0026658
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i . • . ~ Fact - pushed as low •t,az! - • . JY '•: d id t d bli e d i w an esprea pu orsemen c n GoveT*+me*+ t*+t ty causes `~ ~m co 'serious consumer concern leading to reduced uait -volums growth and/or changing bra.nd preferences. • I~ -i.. 1.. . , Cigarette •manufacturers add gas control via air dilution- • ; to jtiD technological challenge, oi maYimi zing smoking ' ' , AED ~~ 31 e -which tocus oa CO :nd/or overall qas Few brands emer g , reduction as primary consumer benefit Most of these . w d (i b= ill b i l l th t s w n super o e .., aa e ca ess aa egory c tfben Will It Hapoen7 •• -ITC measurements expected to be published by Fall •'1978 n zsport at the.latest. ~ o:="•~+%~•'~i . ft1 ~•.~k y.... . •~y 9 s~T~ • = Cbnsumer publicity will escalate isaediately with significant coveraqe in follow-up RFIIDER' S DIGEST...:.: ~. . Z .',~; c I . report receiving widespread pick-up by local/national :_ ~ r-;~ ~: - ~; . • m D •.L'v*n:vfth •publi~ty, consumer. brand preference .w:4_not be iffected until ci arette makers feature low- as. advertising related to new brands which will 'educate" censumers and provide reason why for brand switching. ='1 . -• !Z'C publishes CO levels (and possibly other gases)_ along •, vith 'tar' and nicotine report - with resultant•adverse 3vr;N •scare• publicity probably initiated by READER'S DZGEST. .,~ . lfidespread consumer publicity alleqinq harmful effects of carbon monoxide and other gases in cigarettes. •. Nhat Will Kappenl 0 . , ~ and sezious iatere t i alth h s e Consumer concern a cigarette smoke components increases at even•faste=f . . • rate. :~ •• - ns1f aggressively promot.es . •lov _gas cigarette. Zmaact/Zmalications_ cigarettes. tar satisfaction in low .. .::.. ~ . ,..~. ~ P2D0026659
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/ 000422 . ._....,. , Major voldme ia+pact, including-brand preterence changes, could begin with government publicity/FTC publication of CO in the Fall of 1978--although, barring spectacular publicity like the 1964 READER'S DIGEST report/official qovernment position--naming •favored' brands, this impact . should be minimal through 1979. '='' Sources of Analyses/Forecast/Rationale - ~ - ~ ~ igtD tracking indicates continued increase in coneern' about smoking--CO (gases) adds another facet to the" eontroversy., • . ~y READER'S DIGEST article of October 1976 boosted visibility of issue coupled with widespread media pick-up--additional adverse publicity expected to- follow. omen YTC publication of CO and possibly other gases a2ong vith 'tar', and nicotine report beginning Fall 19~8~ per RJR R&D management. a t~ti? .. . . . .~ . •.~d 0 10/8/76 .~ . ZL% ..,...,~.. U1 N a1 m N OD m w r WI.~ P2D0026660
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Possible government ban on cigarettes 000423 level of 'tar'. -- GOVLRIaiLNT BAN ON f3ZGH-'TAR' CZGARETTES .J having over a e tain Aati-smokinq publicity over alleged harmful effects of ~ ~ smokinq--especially related to high 'tar' ciqarettes-=• leads to government prohibition on sale of any ciqareEte having more than 20 mgs. 'tar' per FTC. _ • N 10 0q=!ft__ Zmpact/Zmplications . - i ~ Long-term could lead to total prohibition on all cigarettes. , In shorter-term, overall 'scare' of such a ban could ~ d it 1 owth of indus '-< -t` r tr u y. Yi g uce Yi. vo re - Cigarette makers will i=mediately reduce 'tar' of'~"= affected brands-includes jtJR's CAMEL REGULAR and~:,. • fiVitiiE ciqarettes • . v. - N! ~ • ~ ~epT. .,. • RGverse pisblicity further increases concern abont_'° •bealth/smoking and accelerates trend to low 'tar"=,`brands. . . ~ ;~ •?ar' level of 17+ given vide*.spread publicity--print and broadcast-via Mr. Sammond:s'announcement of 'definitive evidence. indicates its safer to smoke low 'tar'.;brands.' • . _.. • RJR should lead tobacco industry in vigorously fightinq Y Su~ _rast_ric_tioRs _ in_cl_u_d_ing_c_o_n_t_inusd_ egg_rsssi_vensss f n_ _- opposinq Hart/Kennedy bill which disproportionately taxes high 'tar' brands. Industry should not trade- off ban for bill as both would have virtually the'same oonsumer impact. ~~: FJR's long term prograsa of developing and testing.;,. gradual walk-down of 'tar' for our brands should-focus on technology to have all our brands at.17 mgs. oz•Y : a i i rs thin two ye low w b ~~- t' .~S narrinq'unforeseen definitive e•:4e-,ce, probability of ban vithin ten years is low. Much higr.ar probability of passage of legislation adversely taxing cigarettes having higher 'tar' (e.q.,.17++ mgs.). Hart/Kennedy bill defeated N P2D0026661
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/ 000424 ' Ia Congress in 1976 but expect new effort in this area by mid-1977 as anti-smoking publicity increases based around gas and 'ta:e' controversy. ' gources of Anal ses/Forecast/Rationale~ X".. w3r Coordinated efforts of anti-smoking groups with ,r;x= coatinued support from influential members of Conqress such as Senators Renn:dy, Hart, and Moss. ~=* Statistics on drop in alleged 'smokinq related 4eaths' s=' by anti's to usage of low 'tar' brands versus tiqh44;tar'. 2` announcement on drop in lung cancer deaths whichPi58 says is attributable to lower 'tar' ciqarettes.'` 0 statistics will receive publicity as well S II . . 'foreiqn announcements--such as recent U. !C. Goverismerit ~~. ti la~g/76. ~ r - • . . . .. ... . .. . . .. . . ~•~ ~~ • • . ~ ' V.+... Ln ~ . ~ -~ m . , . . . . . . . . . . . ~ LA a 0 ~ ~ P 2 °(1026662
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,.,......_. ZND0RSE2'lENT OF "SAFE' CICARxTTE 000425 : ~ Issue ~ A zero 'tar' cigarette with very low nicotine and gases or a synthetic cigarette (HSH, etc.) is endorsed by the Q..:S. Government or medical groups as being a'safe' or •risk - free' product. . . .,,~.. :Ir.•• ; ~ ~ What Will Rappen? ~ . - Major worldwide publicity generated reaching all ~ • ~~ smokers. .• ~-~~- - Imaease government pressure on cigarette makers to'~ • ;~--- all cigarettes possibly _ drastically reduce 'tar' of ~._ accompanied by restrictive tax legislation and/or:,ban's ,oa high 'tar' cigarettes. r.- - ' ~ Zmpact/Isplications , will not occur long-tersa because of availability of - Dramatic decline in volume of high 'tar' brands ~; accompanied by significant swing to super low 'tar!.,:' : brands. Catastrophic industry volume losses probably sasufacturers able to commercialize the products..__:~ • . . _,,,. z=aediate consu:aer demand for such products before major brands oa the market. r tar sager low ' ' When Will It Happen.?.. Very low probability before 1985. .5onrces of Analyses/'Forecasts/Rationale ao 'safe' cigarette as anything inhaled is dangerous. - Kedical statistics on zero 'tar' and/or synthetic cigarettes Ln ~ will take years to obtain. Even then, there will be continued controversy over evidence. m ~ r. . ..~~~~ CO rn . ...~R - w . .. ~ J111.publisKed data to date~ros<. Anti's speaks to 'safer'0 to smoke low 'tar'. Dr. Gori and others have stated there'•is 0 0 10/8/76 Y W ~. J ~ ~ P2D0026663
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KEY I StlE POSITION PAPER . jREND. ISSUE. OR EVENT IDENTIFIED/DESCRIBED. 000426 AN EXTENDED PERIOD OF RELATIVELY SUBNORMAL ECONOMIC GROWTH IS EXPECTED. ADDITIONALLY, THE ECONOMY WILL BE SUBJECT~7,0 PERIODIC RECESSIONARY CONDITIONS IN THE FUTURE. ABOUT 3% THROUGH 1981 VS. THE 'NORMALN GROWTH OF 4%. It.D NHAT WILL HAPPEN? THE GROWTH IN REAL GNP IS EXPECTED TD SE WHAT WILL BE ITS IMPACT/IMPLICATION? :ECONOMIE' PRESSUR£S :ON ' BASED ON HISTORY, A RECESSION IN 1983-85 IS ALSO LIKELY;=% . . .. • . `~ ,- • RECESSION WITH EXPANDED INFLATION IS EXPECTED IN 1978-79:`," , • ~ CONSUMERS WILL ACCELERATE IN 1978-79 COHPOUNDED BY THE ~~ LIKELIHOOD OF SHARPER INCREASES IN CIGARETTE PRICES. ~~..•~. . ~~. INDUSTRY GROWTN COULD BE DEPRESSED, PUTTI:NG MORE PRESSURES TO . ..• . . . .. . x"' INCREASE RJR.SHARE TO'GAIN VOLUME. INCREASED CONCERN OVER COST COULD RESULT IN EMPHASIS ON VALUE, CENTS OFF, AND LOWER WHEN WILL IT HAPPEN? 1979 AND 1983-85. ., ~rrr r.~ P2D002666i
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i 000427 TREND. ISSUE. OR EVENT IDENTIFIED/DESCRIBED. :. sLONDONN IN THE GROWTH RATE OF SMOKING AGE POPULATIONf~(18+ .t ~.: eopt'. ~ WHAT WILL HAPPEN? SMOKING AGE POPULATION WILL GROW 15% ANNUALLY FROM 1975 TO 1985 COMPARED WITH 1.8% ANNUAL 6RONTH DURING THE PRIOR 10 YEARS. WHAT NI LL BE ITS WILL.RESULT IN A s.EEH- I N 1965-75. . ~ 0=21r, IMPACT/IMPLICATION? ~ LOWER GROWTH RATE FOR INDUSTRY SALES~~THAN . a... MNFW-NI L IT HAPpE1i? ACCELERATE FROM 1980 TO 1985. SMOKIN6 A6E POPULATI ON MI LL GROW 1.71 A!'Iti=3ALLY FROM 1975 TO 1980 AND ~.. SOURCES OF ENVIRONMENTAL ANALYSES/FORECASTS AND RATIONALE. U.S. 60VERNMENT. DEPARTMENT OF COMMERCE. CENSUS BUREAU.1 .. . .~ ~. ~.. . M. ~s...-~ ~ . •'!.. S LOW ~ 0 0 W v J .i ~ ~ PLD/1f1r1nnr..-
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\ r ~ L .>- Ln .` K !i !i ~t i In r%% ^oo M • • . • • . . r/ .-•~ .-i r-•/ -i + + + + + fi i Ll ~•, k , e;•' ' C J 1' ~~ N M l11 u1 ~ ~ a . I i'tb %oxm ~: ' CONFIDENYIAL• t' r~+ ~~~~;~ti'~~i~ ~~~ .. . . ~ . r. . , to ln -cr -cr M •-i O . . . . :. . .4 r-i .-i r-i .-i .-•1 .-i .-4 t0 ..-i tl•1 00 . . . . ~ ~ cn ~ O !-1 Ql ll1 • . . . tD f~ Ql. ~~~~: THIS DOCUMENT~AND,IYS CONTENTS AREj6,li8JECT TO A COURT ORDER'AWD SHAhL NOT BE USED;'SHOWN O 1$ BWT D EXCE + SPOVIDED IN THECOURT' ORDE f~. .}"~ -'•i1 1.14~'i i! •'~'"~•1h r' ~ lt. ~ ~ a, . e •i • i r:.ti11F.~~~ -- O..
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. 000429 .. . ....... S~....P... ... . . ioiI ..P...APER ,~~~UEQSI T I~Y ISSUE. OR EVENT ID NTiF1ED/•nF3CR IBE?1 POPULAT I ON AGE 30 - 39 MI LL GROW DRAMAT I CALLY BETWEEN :... O _. . _r POPULATION WILL GROW DRAMATICALLY IN THE 30 - 39 AGE GROUPS; (up 42%) HITH SMALLER GROMTH (+2N) FIVE YEARS EITHER SIDE:,s OF THAT AGE GROUP. YOUNGER AND OLDER CATEGORIES WILL SH01V_~j LITTLE TO NO GROWTH DURING THE PERIOD. . ~ SMOKERS IN THEIR 30'.S SHOULD PLAY A MORE IMPORTANT. ROLE rN:;; MARKETING PLANS. PEER GROUP PRESSURE IS AT A MINIMUM IN-.THIS AGE CATEGORY, GREATER EMPHASIS WILL BE-ON SELECTION OF BRANDS . • ' . . w FOR MORE RATIONAL REASONS., AND THE HI-FIIIO0MM CATEGORY.,.':.=j~'. . . ~ ~ ~ ~ . . . . . . • . ,~:. ~• MHICH' PERFORMS 'NELL IN,THIS,-6ROUP,. MILL CONTINUE TO SHOMf*~` DRJIMATIC GROWTH. THIS FAST GROwING -AGE SEGMENT WHERE CURRENTLY HAS A POSITION OF STRENGTH, WILL OFFER OPPORTUNITY FOR FUTURE GROWTH FOR THE COMPANY. CONVERSELY PROTECTING' OUR v ;i;.: SHARE IN THIS AGE GROUP IS CRITICAI.. f: aNy WHEN MILj„ 1 APPEN? : ~. POPULATION 25 - ~1 -MiICL -fNCftEASE BETW£EN 1975 -•1-98Q .a.> ... 35 - 49 BETWEEN 1980 - 1985, ~.. ~ _.-. L„ ~ U.S..BUREAU-OF THE CENSUS. . m sQStas,E . ~ i'= ..";; ;a !y P2Dnnncor-
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~ , 0 ~ ~ 0 . 0 0 XT'STt '  I ,Y19 Y r~0'.0~T XO WOT 4 ~~$ + Ir,IL V .7L Y JG XS' Z - 819 6'9 0'8 r ------------------ -------------- ------- I ~ ~ ~ %8•SZ+ i'8 VL 9'L ` . ~ . ~ XV8h+ • Z'0T 8'8 ~ 6'L XL'Li+ , h'TT L'OT ; S'6 - ~ ~ ~ ~ Xh'TZ+ . T' ZT. 6'tT , 5'TT ~ 1.~ .~ -------------------:---------------------~ ----------~ ~~ X8' + SR~T - ~JGT ~~ dOd 39NVH3 Z [1 J :s ! XO' OOT ,, V JL ' UJL ::. 0'6 T'.6 6'8 0'0T i'8 L'6 5001.1 7810 51601 8639 +0S h'6 ~ 64 - Sh T'0T ` hh = Oh L'OT ~ 64 ~ S~ 9'8 . 6'8 V0T •. T'OT T'6 W6 ~ 6Z i. SZ Xh'9T XS'8T I XL'8T XZ'8T' W9T X0'hI , hZ = 8T W M61 = "M um* m DW 586T - 0961 M1r~~ F- 'V . .~~ ' r"~~ sy., r f ~ ~ , . 1'l'•~'+:~ {{.L. . . .'. . , .i•. t9. • ~. ~~. . ~ THIS DOCUME 8E USEO~~S~~,QW diTS CONI`ENTS AR SUBJECT TO A COURT ORDER AND SHALL NOT . ~p ~~ b DIS TED EXC T AS PROVIDED IN THE C URT S ORDER ...r.r.~q~ • .. . ~ 'r.~..
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/ . =~ KEY ISSUE POSITION PAPER 000431 THE CIGARETTE INDUSTRYI S FASTEST GROWTH WILL OCCUR IN-THE yj"..F; ~ '.. . WHAT WILL HAPPEN? THE SOUTHERN U. S. WILL SHOW DRAMATIC GROWTH IN CIGARETTE CONSUMPTION AS A RESULT OF GROwTH ' ~ POPULATION AND PER CAPITA CONSUMPTION. WILL RESULT IN * ~~ ~-, d~W- a INCREASED NUMBER OF RETAIL CIGARETTE OUTLETS - AN OPPORTUNITY.-` WHAT WILL BE ITS IMPACT/IMPLICATION? ~~ L ...!: SIGNIFICANTLY INCREASED CIGARETTE CONSUMPTION POTENTIAL.'. eca:7-. ;v :' RESULTING IN NEED FOR GREATER ADVERTISING WEIGHT, MORE..FIELD • :_.~ . >m SALES'•MANPOWER, GREATER MERCHANDISING EFFORTS, ETC. COULD HELP'RJR BECAUSE OF OUR GREATER PRESENCE IN•THE MARKETPLACE. A THREAT BECAUSE OF COMPETITION'S AWARENESS OF-OUR SOUTHERN MAY LOWER AVERAGE SHIPPING AND WAREHOUSE COSTS AS PERCENT OF MHEN MILL tT HAPPEIK? WILL CONTINUE THROUGH 1985. ECONOMIC SURVEYS BY U. S. AND STATE GOVERNMENTS, ~ as: _ _ r : OUTSIDE PROFESSIONAL CONSULTANTS, ANn MRD ANALYSES SHOW,, a . Ln o SIGNIFICANT ECONOMIC AND POPULATION GROWTH FOR THE SOUTH. m 110 m . . ~ MRD ANALYSIS'OF STATE TAX DATA SHOWS PER CAPITA CONSUMPTION 00 m . ~ INCREASING IN'THE SOUTH. m
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[SUS REGIONS Eaqland , Atlantic f #osth Central Qiorth Central r?~l~o~h Central 40,368 ! Vth Central 16,367 - ~=Y1nSowth Central 19,397 ~:. 345 8 , t . . . , . ~ ~ ~ . • ~ .o. _ . . .. • . 0• ~ ' ~~~818FSU5 REGION ' T9l0 Lnqland 2,699.5 Atlantic 2,429.7 i. q9.0 8orth Central 2,570.9 , ~''.~C~'So~tth Cesittal '' . ' Z,3a0.5 1fz Soath Central 2,281.8 1i6ltntain 2 , 255. 6 pa6itic ~2,t ~4~87.3~ TO?AL v.5. 2,496.1 .. a' d:1-1 ]1~lantic 37,271 a+¢~?..6~t~S8~9, ' ~1~ II S g05 Z03 ' O Z P8R C"ITA CONSVlPTION m 0 0 :~; : ~ _:. ~ Atlantic Central t1i Central _ :: ~h,~; _ r6.,. 000432 _ vOLUlSE (Unadjusted Nillions) - 1970 1975 1980 1985 32,051 90,536 103,784 38,156 64,451 30,525 44,261 18,823 ' 6508 743 i 34,502 35,855 35,876 94,736 101,040 103,070 113,449 122,042 124,687 43,274 46,854 50,005 105,B46 111,293 117,980 40,935 49,028 56,581 53,800 55,988 60,683 24,561 23,862 25,133 73584,7683 86 76Z1,400 7651,106 pOPIIt.ATION (0001s) '197 5. 1980 1985 ~ 12,198 " 12,953 13,526 37,263 40, 082 . 41,651 . 40,979- 44,004 45j809 16, 690 17, 064 `17,539 33715 , 35606 , 38,281 13',544 • 14,240 14,958 20,855 20,760 21,746 9,6<4 9,351 . 9,917 ... S,Z34 . . Z9 '469 31* *039 213;I~~ ~ ' USREGI ONS 1770 . •.d Znqlasxi 11,873 thatlti 30772 anc, So~th Central •• 12,823 Storth Central 2, 331. 3 th Atlantic 2 744.4 ~ ' 1975 1980 2,828.5 2,768.1 2,542.4 -•2,520.8 2,768.5 2,773.4 2,592.8 2,745.8 3,139.4 3,125.7 :.3;.022..4.., , •.;.3,4,43.0- 2,579.7 : 2,696.9 2,546.8 2,551.8 Z,609.7 ~2t~55~9_._9,. z', f~. ~ 2,790.0 , ... . Avg. Annual Growth Rate 1975-1985 2;: .. . "' +1. 0 . Avg. Annual Growth Rate 1985 •1975-1985 ~~ '~ 0 1 2,652.- . 2,474.6 s .3 2,721.9 'z•--- . 2 ~.::. 2,8S1 .1 =.+1. 0 3,081.9 -.2 O's+2.5 3,782.7 2;79Q:5 2,534.3 .0 2,4S3.7 ~.~,~~. .,.-.5 ..,+ .T 2,777.0 ,.. .. P 2 DnnnCn7f1
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. 1. jREND, 135UE, OR EVENI 1DENTiF1ED/DESCRISED. BLACK MILL BECOME A MORE IIIPORTA1fT SEGMENT OF THE CIGARETTE ursINESS. WHAT WILL ItAPPEt{? 000433 ~. . V.., . .~:~ BLACK POPULATION OF SM0KI NG AGE MILL GROW ~_ FASTER THAN TOTAL POPULATION, AND KOOLf S HOLD ON PREFERENCES A=`a' S!lOULD WEAKEN - AN OPPORTUNITY. BLACKS ARE CURRENTLY 10.3% OF 18+ POPULATION AND ACCOUNT FOR ABOUT 9% OF CIGARETTE INDUSTRY VOLUME. IN 1985, BBLACKS MI-LL' 4% SE 12.31 OF 18+ POPULATION AND ACCOUNT FOR 11 - 121 OF INDUSTRY•r=: 14-- 4• YOLUKE.. KOOL~S SHARE OF THE BLACK MARKET (CURRENTLY 24.4%) SHOULD PEAK 1fITHIN•THE NEXT TMIO YEJIRS AMD THEN DECLINE. HISTORY SUGGESTS • AMOTHER BRAND MILL ElIERGE-AS "THE BRAltD' FOR 'BLACKS -- AN OPPORTUNITY. T . MHAT M1LL BE 1TS~MPACTjIMPLICATION? • INCREASED. OPPORTUNITY FOR' . . SLACK l~ARKET BUSINESS, PARTICULARLY'IN LONGER AND MSENTHOL - CIaARETTES. TME BREAKDOWN OF KOOL~S PEER GROUP INFLUENCE OPENS ~. THE DOOR FOR ANOTHER BRAND TO EVENTUALLY DOMINATE THE BLACK 1MRJCET. REQUIRES LEARNING MORE ABOUT BLACK St10KERS 1 WANTS AIiD•+":-', DESIRES. SLACXS ARE A LARGER PERCENT OF THE POPULATION IN THE KEY RJR ~~ .. ~<.., ` NARKETING AREAS OF METRO AND THE FAST GROWING SOU'TH . . ~ • ' . - '~,~ . . . , .. .. .. . , .., j _,.•~:. . •.: , . . . . . . .. . . . , ... . . . .. . • ,. .. . WHEN WILL 11 H1IPPEN? THROUGH 1985. CONTINUES AN EXISTING TREND. c "" - Ln N SOStBC EV. m . U.i. GOVERNMENT, DEPARTMENT OF COMMERCE, BUREAU OF CENSUS POPULATION PROJECTIONS. RJR hlRD BLACK AUDITS: m N OD m ~ N .. cn 0 0 ~+d O s V V
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I p ' ~% ~F~ 1i+~1 Ci ~: . ~ " c.l la ;~ F "tl !t r~-1 + co . . '~.t . ~ Cy ;~ ai T , SOOId 7et ~' 51601 8643 t i
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U) CV) w 0 0 0 f ~'A lt++!!j ~~ ~4' ~ ~ ~ ~• ~I ~'-'~~~~~-'' ' R ~ i Soole 1elq 51601 8644
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f .1% f •r •'.1. r KEY ISSUE POSITION PAP R 000436 jREND, ISSUE, OR EVENT 1 ENTIFTED/DESCRIBE . ~. FEMALES MILL CONTINUE TO BECOME A MORE IMPORTANT PORTION OF THE SMOKING POPULATION. . ,_.. S X= I ~ WHAT wI LL HAPPEN? FEMALES HI LL 'INCREASE FROM 46% OF AL•:L:_,;,SMOKERS'j IN 1975 T0 IIHZ BY 1980 -- AN OPPORTUNITY. THIS RESULTS'FROM AN"'~ . . ' EXPECTED SLOWER DECLINE IN INCIDENCE AMONG FEMALES COMPARED TO .;~ WHAT WILL BE ITS IMPACT/IMPLICATION? MANTS AND DESIRES OF FEMALES WILL HAVE TO BE CONSIDERED _MORE AND MORE IN MARKETING ACTIONS. ALSO, INCREASED EMPHASIS ON:,THE . CHANGING ROLES OF WOMEN BEYOND THAT OF WIFE, HOMEMAKER;`AND MOTHE,R CONTINUE. ;, .; p• . •. 1':.'..-.~~.. ~' . =!u - SOURCES INCLUDE CONSUMER DATA AND VARI OU _ l: . . I STUDIES ON RATIONALE ASSUMES THAT INCIDENCE AMONG WOMEN r^~ INCIDENCE.'~ WILL CONTINUE ITS ~
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n M ~ 0 0 0 m K Ln 00 •7 ii: : $0030 7821 51601 8646 S
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"m ! L--c , - KEY ISSUE POSITION PAPER . 021 WHAT WILL HAPPEN? THE DECLINE IN MARLBORO'S SHARE OF UNDER 25 . .. ~s . .~::. SMOKERS WILL CONTINUE OPENING THIS SEGMENT OF THE MARKEjsl~OR AtiOTHER DOMINANT BRAND TO EMERGE FROM PEER GROUP PRESSURES::, A RECENTLY INTRODUCED OR YET TO BE INTRODUCED BRAND WILL SHOH • ~~ WHAT WILL BE ITS IMPACT/IMPLICATION? 000438 ..,,, Y THE COMPANY MARKETING A BRAND MEETING UNDER 25 YEAR OLD*SMOKERS'_ -- l01NTS AND DESIRES WILL DOMINATE SHARE OF MARKET GROWTH. --'RECUIRES • -•- THAT WE PAY CLOSE ATTENTION TO THIS MARKET IN OUR NEW'BRAND PLANNING AND CAREFULLY-TRACK THE IN-MARKET'ACCEPTANCE BY•.SMOKERS UNDER 25 OF NEW BRANDS WITH POTENTIAL TO PENETRATE THIS'MARKET SEGtlENT. ~-~- a ~ ' WHEN WILL IT HAPPEN? THE OPPORTUNITY SHOULD CONTINUE THROUGH 1985, IS NOW. THE VOLUME GROWTH. .~- ~ - NFO, SHARE OF SMOKERS, SHOWS THAT MARLBORO'S ACCEPTANCE=AMONG 1~ - v YEAR OLDS HAS DROPPED FROM 39% TO 32%. THIS PATTERN HAS BEEN REPEATEIS. BY THREE BRANDS WITH. PALL MALL PEAKING IN 1969.,. ToTr,L WINSTON IN 1970, AND TOTAL MARLBORO SHOULD PEAK SHARE IN 1978. .r ~ N V I P2onn7FC7A
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/ . 0 ISSUE POSITIOR PAPER IAFNn, ISSUE. OR EVENT IDENTIFIED/DESCRIBED. 000439 ~. . MENTHOL AND EXTRA LONG CIGARETTES WILL CONTINUE TO GROH, BUT THIS GROWTH WILL BE CONCENTRATED IN THE HI-FI CATEGORY..,..•_ ~~.' _...` MIAT WILL HAPPEN? IN 19851 THE MENTHOL CATEGORY WILL ACCOUNT FOR 32.SZ OF THE M4lRKET, A GAIN OF 4.7 SHARE DOINTS OVER297S. i_ i THIS GROWTH IS DUE TO AN INCREASE IN HI-FI MENTHOLS OF I0.8 s~- SHARE PO I N'TS (2 . HZ -13.6%) KH I LE FULL AND MI DDLE FLAVOR...-- DECLINE IN SHARE. ~r- ~a. N . .....•r..: w EXTRA LONG CIGARETTES (IOOI'M) WILL GAIN 9.2 SHARE POINTS. ALL ~ OF THIS GAIN COMES FROM IOOM+ H1-FI"S. 0 .M WHAT WILL BE ITS IMPACT/IMPLICATION? •MAJOR NEW BRAND EHPHASIS MILL HAVE TO CONCENTRATE ON BOTH THESE CATEGORIES. PHILIP MORRI'S, OR MAJOR COMPETITION, WILL IN ALL PROBABILITY BE• • . . , . . . . . .. .. ,. ENTERING THESE MARKETS WITH BOTH A HI-FI IOOTV AND/HI-FT.z~ MENTHOL ONLY PRODUCT. WHEN Wt1 IT AvpFN? CURRENT TREND. AtiALYSIS OF PAST AND tURRENT BRAND'AND• CATEGORY"PERFORMAIVCE: RATIONALE IS BASED ON EXPECTED GROWT)f IN THE HI-FI CATEGORY ••RESULTING FROM INCREASES IN THE HE'!T" CONTROVERSY AND RJR Ln ~ NEW PRODUCT P'J1NS. a) 0 N 00 m ~ co P2D0026677
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. . I O qp ~ O . O O . ~; ...~: t.:a.~ . ;~ F~ ,r' 1 ~~ ~ J r'•~ tn tn . . M e-i ~p la Q1 Ql Q 00 f". 4+~ ~ 00 OO Ql Ql ~~~QQ""1111~~~ . . . N N N I . tni ., 500311 7A2e 51601 8649 THIS DOCUMENT:AND.tTS.CONTENTS ARE SUBJECT TO A COURT-ORDER AND SHAI;L NOT - BE USED_, SHOWN,pq DI$~T,F,jIBUTED EXCQP? AS PROVIDED IN THE COUR•T'S ORDEq'' .
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( / • ., . _---.1- ,...... KEY_j,,SU POSIT10iI PAPER 000442 TREND. ISSUE, OR EVENT IDENTIFIED/DESCRIBg2. R.JR AND PHILIP MORRIS WILL BE THE ONLY CIGARETTE COMPANIES SHOWING SHARE GROWTH. yHAT WILL HAPPEN? REYNOLDS AND Pti I LI P MORR I S MtI LL SHOW SHARE GROWTH BETNEENi : ~~ '~^' 0` - - NOW AND 1955 AT THE EXPENSE OF THE OTHER COMPAN I ES . RJR.:.NI LL CONTROL 38.0: OF THE MARKET IN 1985 COMPARED TO PHILIP;MORRIS~ 30.6%. TOGETHER THESE TNO COMPANIES WILL HAVE OVER TWO THIRDS OF THE MARKET. WHAT WILL BE ITS IMPACT/IMPLICATION?• .~.-.I FOR THIS GROWTH TO OCCURi BOTH-RJR AND PM WILL BE LARGELY DEPENDENT ON SUCCESSFUL NEW BRAND- INTRODUCTIONS IN THE -=. HI-FI.CATEGORY.. PM NILL-ATTEMPT TO CORRECT ITS MENTHOL MEAKNESS. RJR NEW BRANDS, IN PART, MUST BE DESIGNED TO ' WHEN WILL IT HAPPEN? CURRENT TREND. . _~... ;:, - . .. .. • . SOURCES INCLUDE AN EXAMINATION OF CURRENT AND PAST INDIVIDUAL NEW BRAND AND COMPANY PERFORMANCE WITH EXPECTATIONS OF FUTURE NEW BRAND INTRODUCTIONS. RATIONALE IS BASED ON ABILITY OF k TWO COMPANIES TO GAIN SHARE• OF- MARKET ANI1 TO SUCCESSFUL-LY INTRODUCE NEW BRANDS IN THE FUTURE AS THEY HAVE IN THE PAST. v 0 N ~ co m P21)002667'
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i~ Y, t;,:l •:.: C N 10 10 0 0 0 m m K O 50038 3A?6 ( C cc . : cc ~ 51601 8651 C {y4'y S.~,i to 00 lll N 01 . . . . . • . A •f'~l A Ol 111 • r-i Ocr 00 t0 Kl O) M N .-t1'1i ~ to N m O ta tfl f,%. tD Kl . . . . • . •M N•~ .-i ~a ~ • , i.;.• 'i , 1 1. . r F;. .• 0 N a
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/ KEY ISSUE POSITIO,Y PAPEP . TO THE.EROSION IN THE IMPORTANCE 0F, MONEY: AND POSSESSIONS " . . D. CONTINUED DRIVE TOWARD SELF-FULFILLMENT WHICH CONTRIBUTES'_-~' A GOALLESS YALUES SYSTE!! POSSESSIONS PER SE. LARGE PROPORTIOttS OF.YOUTH MAY Et~RACE : C. CONTINUED FUTURE EROSION OF THE IMPORTANCE OF MONEY AND PER iE. PERSONAL ACHIEVEMENT AND SELF /IGRTH WILL BE SOUGHT:: IN THE WORK SITUATION. ~ 1. 000443 TRfiI4, 15fUE. OR EVENT iDENT1FIED/DESCRiIiED. LIFESTYLES AND VALUES WILL CONTINUE TO CH UIGE WITH THE CONTINUED BREAKDOWN OF TRADITIONALISM AND GROWTH FOCUSED ON SELF- - RtAL I ZLIT I ON. WHAT WILL HAPPEN? MAJOR TRENDS CONTINUING OR EMERGING INCLUDE: •: A. 1~ORE E!lPt~AS I S QN THE BAS I C AS PECTS OF PHYS I CAL MELL-BE I NG =~ z tHEALTHi VIGOR); A STATIC OR EVEN DECLINING CONCERN WITH ..'a. THE COSMETIC OR APPEARANCE-ONLY ASPECTS. YOUTH WILL CONTINUE ITS TRADITIONAL COMMITMENT TO APPEARANCE ENHANCEMENT, OLDER ' PEOPLE NILL FOCUS ON HEALTH, FITNESS, AND LESS ON PURELY,~ CflSMETIC. Z. _. COMMITMEIIT TO tRiIGUE, INDIVIDUAL SELF-EXPRESSION MILL CONTINIlE TO GROM. OVERT SYMSOL3 OF NONCONFORMITY WILL BE LESS NECESSARY. PERSONAL EXPRESSION MILL BECOME LESS RISKY. MORE: OF A BALANCE BETWEEN MHO ONE IS•AND HOM ONE SHOULD ADJUST.,TO OUTSIDE REALITIES. ' ;'"`'~ E. CONTINUED NEAICENING OF CLASSICAL FAMILISM ON TRADITIOKALLY ~, DEFINED SEX AND SIBLING ROLES. .INCREASEE IN HUNGER FOR THE NATURAL, THE REJ1L, THE 6ENUINE, THE AtITHENTI C, AT LEAST NEAR TERtI. i. INCREJISING DEEMPHASIS OF SYSTEMIORDER IN LIFESTY4S M/ITN EASING UP•OF SCHEDULES, TIMETABLES FOR LIVING ONE S•DAILY LIFE, WHILE SEEKING VARIETY, CHANGE, AND EXCITEMENT. F. ,-.._ . .~..- ~iY~. ~i ~. .r: JUST ANOTHER WAY OF GIVING TNE SAME THING.. . . F^ , ... B• CONtElfTRATION ON REAL OR LASTING VALUE AJ[D APPEARANCE, NOT~' " 3, lNAT MiLL flE 1TS IMPACT/iMPLICATION? THESE TRfNDS WOULD SUGGEST: A. . THE NEED TO FOCUS ON REAL (IMPORTANT) PRODlJCT BENEFITS, qQT" . • . ~.~... •• .._ .. D. INCREASED EI'1PHASIS ON HEALTH WILL PLAY A MAJOR ROLE IN ~--, MORE RATIONAL BUYING BEHAVIOR. WHEN WILL IT HAPPEti? CURRENT AND EMERGING TRfNDS.. ='.~ . ~ • . .. • . . . . . . . . o.. o EQn$Lh: YANKELOVICH MONITOR ON LIFESTYLES AJID VALUES. Ln I--+ W w.._ _ . C. CONSUMERS WILL SEEK EVEN MORE PRODUCTS WITH tjEAL VALUE AND . .. :' •PIE.ANLliG • TO ONE'S. SELF• :AS . A ,PROJEC7IQN • OF ONE S. .REAL .SEi.f . . . . . . . . ., 'a- JUST TRENDY OR FLI6HT1f FASt110N. 01 cp m F-+ -1 ~ N P2D002668~
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/ Trend/Issue/tye:it Advertising impact per exposure is limited in all media forms. What Will Happen? - .- 000444 i deteriorating/being 1.~ ". Advertiser will place more emphasis on competitive ' 'clt~tter• in selecting media vehicles - avoiding tho"se• that rate high Media will place self-imposed limitation on ciqarette.=~a advertising volume that is accepted. What Will Be Its Impact/Implications? =` Page units in magazines will no longer be 'standard• opportunity. F=~= ~ • ; ,,.,_ - Attempts may be made to charge tobacco advertisers a_ premium price - threat. ~_.._ . . N Nevspapers, in some form, to become more as vehicle. :. Alternative media forms must be found to fulfill total Corporate demand ~ opportunity. . System must be developed to most efficiently allocate scarce inventories of existing medih consistent yith.'= Corporate/Brand objectives. - When Will It 8appen? acute by 1980. Trend in printed media, principally magazines and supplements, to accelerate and become acute by 1980-85w Trend in standard O-O-H (30-sheet and paint) to be It's happening nov.' 1= studies; historical experience with some media; dis= •cussior.s with selected media management. '; J• .. l 4A 0 0 P2D0026682
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i . ADVERTISING MEDIA COST INCAEASES ~, ~ a undersupply of material - paper and petroleum based Trend/Issue/Lvent Cost per unit of print media exposure opportunities will increase more rapidly than general inflation rate. :;i 11hat Will Happen? ' - - i !;b• Costs vili rise out of proportion to circulation due.to: . . . • . ' •~. 000445 ~ - ink. greater number of smalier.circulation, less efficiently producable vehicles. , fVc::4 :~ higher distribution costs, currently via PostallService..•.. What Will Be Its Impact/Implicat! on? - Specific segments of the population can concentrated manner - opportunity. population segments of high potential must be defined and concentrated against - opportunity,. . 0 - Broad total consumer reach can be achieved only vith an increase in cost-per-thousand cigarettes applied against advertising - threat. 'Sources : - - Trend will'continue at.an accelerating pace into the 1980's. When Will It 8appen? forecasts. Zndustry cost trendsi Magazine Publishers Aasociation'.and msrican Newspaper Publishers Association: current Age~ i cancy 7l ms r (.n N T ~ F-' OD 0) lIl ,P be reached~ in a P2D0026683
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/ . ElL1LT1! TLC1C:Oi0CY l, ?res+d/Isdue/Event Isptoveaeat In health tachaolory will proceed In a ausber of areas rhich say hava iaplitations for the tobacco industry. _. ' iihat Will Aappen? '. 0 links Iacontrovertibla evidenca denying the smokins/health links . Identification of dozens of other suspected earcinogenics. ~---- iacraasing over tias. What Will so Its Impact/Iaeplicstioa? ~C ~ Zsaet ~+a raaa from a2Saiaatioa of concern about saokSa t~ ~ ; ~ ?1 . ym '' Z~ vesuy Increa+ed concern coupled with ready ability to quit. -` • -4 Deralopmeat of products allad=.d to be lass hasardous - new filtration .~ n '> _.r •_n -4 • r oaw strains of tobacco, tobacco substitution/flavoriaYs which ' sabstaaces. p. Q roald reduce levels of suspected aozious :Rn. ZO C m0 n-Zy ~Op Cm ` ~ > :' S.' Sourc e s : 4. Incontrovertible evidence supporting the saoicias/health ~ 9han Will It Sappea? Possibility of dr:matic developmmt at any tima vith probability 00 M c= ~~ mD - ~r ~ . ~-. K.dical and Ysycholo=ical Journals, Media press releases, health organization and soveram.:_tal releases. T, :Z 0 systea, LA ~ 0 W O J 0S W O P 2 Dnn7F684
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/ 1. . .,: cONCENTT.A2I0N I!1 THE TOtACCO Z?.DUSTR7 Trend/2ssue/Lvent 000447 Q! • tba six sajor producars, oaly RT3 aad Philip fiorris are achleving srovtb ia ths tobacco busiaess. . 1s+aritaa •Sobacco and I.i=sett iMyers vi11 cease to ci=aratta busiaus. P2onn7FAR;
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. r.) ~ f. ~y ~/ ~~ + ~ +1/ ~ ~ ~ • ~ , u ~ € ~ O+ .•1 \ i .1 Pf . h ~ : :50039 7837 51601 8657 C.
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- 11 ' : . ",: -a- K •' L--I t i.- XIf'TI-SMORING TECHNOLOGY' • I ?rent Issue Lvent ?'lyere could be a technological breakthrough, either drug or clinical procedure, that will aid people in quitting smoking more easily. lfhat Will Sappen? 000449 P4 Y There currently are many over-the-counter drugs, ,~ aec2ianical devices, etc. which are promoted as being effective in reducing or stopping smoking. This trend -:~= ' any will continue and, on judgment, it is felt m manufacturers are devoting research and development efforts against such products. What Will Se Zts Zrapact/2mplication? While data are not available on the percentage of the..`"-"?. smoking population who would like to reduce or quit, it'is believed, on judgment, to be relatively large. Wh.ile==:::`• many persons quit without difficulty, there are others ical breakthrou heavil h chnolo ot h d A t g , y q v o a . e o advertised and promoted, would have a major negative impact on consumption. 11hen Mill-It Happen? As it is ass=ed companies are wbzking on such a product, it' eould 'happen at any time. Sources Media press releases, advertising for anti-smoking products, clinics, etc. . f7r.M . •.{.~. ;~. + P2Dnn7FFR7
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i 000450 PRICE ELASTICITY 1. Trend/Issue/Event Cost of cigarettes may be elastic, either on an absolute basis or relative to genez.il inflation rate. What Will Happen? Increased costs of product to consumer as a result of higher manufacturer's cost, retail margins, tax burdeZe___`1_1, or a combination of these will continue to increase consumer price of cigarettes, possibly at a greater rate 'than pm~.-m general inflation rate. What Will Be Its Impact/Implication? ~P .4` Current smokers/new smokers will be forced/kept out-of the market on pure economic reasons. ~ Corporate profit margins will be jeopardized to remain within inelastic range or, r-_ x Absolute sales/profit will fall below long-term Unknown goala. 5. Sources Wall Street Transcript, General Economic Forecasts., Internal Discussions. .Ki. t^.. .. .'4.. ~~: .r; ~.. v.?nnn7FFRf
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• , e t+ .. t IJk '.il ~a; ~ y} La ~ . .•~. ( 00 soole 7e15 (D cr- ` ` C 51601 8660 . c ~ y s { ~ Ij t1 . .>Z ~ .} •~. ~ ~ ~ K D Q ... . ~ ~ ~ ~ 0 .i ~ ~. ~ ~ ~ ~ ~. ' ~ ~ ~ ~ ~ ~ h ~ ~ I i G ~ JJ ~ ~ N JN ~ ~ ~ . 1-/ ~ •~. ~ ~ ~ ~ ~ ~ ~ L4 ~ ~ .~ • • ~ ~ 1 N CL
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/ 500 38 - -7e36 51601 8661 t ~'. 1~ . . .~~I .t. ~. t \ t ..• A 41 .~ f~. 64 ~ w w w$ .1 .~ ~ wa ~ N 1; ri
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M tn qv 0 0 0 I 1' • M•~ 1 ~ `tl.p-., ,tT4' Fi.~ ~ • .`::c „ ;.! ' .t ~ Or1 'i1ir . t y 1 4 y , I . ,. , ' : > . .~~jty r { . ~+T Y~"~_ t'`. b' ~ ~ . 1..~/ . ~ •<;Y a ~ . • ,t S r m •. THIS DOCUlWWAND ITS.GONTENTS ARE S,UBJECT TO-A COURT ORDEKAND SHALL NOT : BE USED,;•.p ~.~,dR-piIBu~ED,,EXCEPT'~1S,PROVIDED IN THE C,OURT'S ORDEF;, .,:.,.. r. ~ : SoO3a 51601 8662 . . . ... . . . ~ . . . . . ~.~. . • . .~ . ~'~I~.
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_.. . ......~......~.+... ~..... •,V~r: . r.~w. . . , x!] Tssues lncreased'health concern about smoking. ' . : . t . b. rr ~ '#l30d0 S.ld[l00 3Hl NI Q301AOdd SV 1d30X3 031(19 d10 1i 167 ;, Tsobabiliqr r'•' qwat t : i Occurr.ac: ~'• ~ tttact OIdN00. . ~ 302 502 702 902 x 10x Yr: Survival ...~~ ...r_ J .-~ h S~~~'''j.• ... 7 • \ , I ~ ~ ~,IV~f.~ ~ O O '03Sf138 ~ . • Increased demand for cigarettes that are perceived to alleviate the health concern (e•iq., low 'tar') + •'Aeduced demand for higher 'tar' cigarettes (full-flavor, middle flavor) - • Continued decline 1n smoking incidence and per capita consumption resulting from fewer new smokers and/or more quitters. - 8998 Z09TS 0 O + • opportua:ty .! O Cr) O) 00S yEO< <i s ~ • r ` h z~ . ,,. At~ ,Nt .,. N~,., t 'I , •, .... ::.. . Ls ..t los.ible Tear of ~ Occurtence I I 0 0 0 ~ .
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. t i . LL6T - . . . •.ioxoiuo 6uonro uojadmnouoa vjjdvo zod puv oouopjouT s.aot ol •np •ujToop uojjduin.uoo ti;oy . : T.^j^AnS . ~. ~'aA X0 .Aj3.7jT.nb 0313014raT.r Oo 3O.llZ . - 40 t :.noj .0lt 3 a I. P.> > .__- , t:junisoddo . t c•. Or N 51601 8664 O 0 .r, ~ (V CL ~ . , ,. • 6ujKc~,9 puv 834xomo 9110s.613 ,=o d~jT~qQ~da~w Y06 YOL zos zoC •311.13nW*Q j0 :: v7ooo .otn uT ouTt3ap i THIS DOCUMENT-AND,ITS COIVTENTS ARE SUBJECI'.TO.A. COURT ORDER AND SHAI.L:.NOT. B~ U$~D;;S)-IOVyN~QR OISTRIBUTED'EXCEPT A~PROVIDED IN THE COURT'S ORDER . • ,. , . , ~.~. ... .. .~ • .t..... •.,. : -~~./~ . . . , ..~...~.~r.r.~..
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-- `' r • t t'a<: O S~lti(10O 3Hl NI O3OIAOdd~ 1d30k3 30 031(~8(~l~:~ Oi+dd , ~klH (+IJIIIO!•~S ~035(1,38 :~ ~ Y N v 0 . ION 1lVHS ONd d3ad01df10o ~d'Ol'1J3f 8(1S jk1V S1N~1NOfJ S1~ONV;1N3Wf1000 SIHl '•i x.y .Lw.l. !urther governmental lmposed restrictions )n advertising; ' )romotion and .. labeliag. S998 T09TS N opportuni:y d) - ~ threat O) CD ~ ^Ov, . /i ' . . 102 01JvL oE00S7." 302 soz 0 N 702 r! 902 =i-! touT et. i iias ioa u : Q est ta Ettect oa T~.~ a~~,::ti 38149trotit• Qwl1tative 0x Yr. Survival Reduced ability to deliver effective advertising and promotion programs to consumers. • Reduced competitiveness within industry. • Greater reliance on lield Sales ' resources for competitive advantaqe• ,A J., r. a .;
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ud ' C3) i.S00)9 7mq1 ~ i •..-$%jnjioddo . + • N C C . ., . •puvuiep ooQajaap ptnow' opuesq ~lva, 46Z4 uo ooT2d ioy6Tti • •uoT:jdumouoo po.vosouT o6vsnoouv pjnoM .puosq H~ y soMOj uo oaTsd tjv;os sowoZ . • i0 st10 » 0• j 3 .wjAing •a YOt •3jJoad a.t.~ uo 7aoIJi Yo6 101 /R'r 'Jf ., . 51601 8666 0 N a • ejanaT. N ~ 1. uc paeQq caa1aiq6y: uo xva aojax: tv=apa,~ pa~anpQit v ;o aaaiyj zos : " .. i0f ..n:.i A.y , .. . THIS DOCUMENT AND ITS CONTENTS ARE SUBJECT'TOiA•CbURT ORDLR AND SHAL•~ NOT '( BE U9~CDl:SHOwNiORRDI$T~iIBUTED EXCEPT AS'PROVIDED IN 1`HE COUf~T'S;ORDEF~#,,, .` .iEti. . . . . . ...~~.~..r~...... ... .. . ...~/ww. , • Y.:4 . ~ ".. • .. . . .+w~r~ ......M~.J. rr..J...J~~~.r .
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~ ~ PRIORITY SUh4U1RY Of-KEY IBSUES/UiPACT IMPLICATIONSt:. MAUICl.T1Mtl utrANlne.nI ~.` 1911• • Lstis,.t.d l. act Is licationa (+ or • ~ ,o- K o Probability f Occurranca Quantitativel tttact on E.rllcs Poaslbl Xa~"Tasuls. ~ ' `Sales Protits'' I ,..~ ~.: jQuali4stiv. IYear oI . ~. ioz 302 Sox 701 902 10x Yr. Survival . . Q ccurren Ai-Ti cigaratt.s (14•-tga• Z I + • Lorarad 'tarl•lavals on sstabliah.d 19e3-- and less) baiog larji.t cigaretta voluaa. : .. •. braads•. but lap of trea utagor~. . • 8igniticant nev brand opportunitias• • D.clin. in smoking satisfaction and pait~ cause• dc[lnlt action voluma growth• 1976 an beyoad. i • \ . L998 T09iS . ' CONF DENTIAL .r 3r A +• opportuntFRIS:DOCUMENT AND ITS CONTENTS ARE SUBJECT TO A C OURT ORDER AND SHALL NOT -• threat BE U§ED, SHOWR OR DISTRIBUTEO EXCEPT AS PROVIDED IN THE COURT'S ORDER. • . . . ,.: ,...: .' . .
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• - 1'Rlt)xll'T Sul1M/Uli ur Isj' 1a*aut:. a•s .•L. ---16 ~+f+s. . .. Probability ' of Occurreoce ioz liox , . priaary 6.n.fit. , [ : . ~ .~ . Ke1 .Ia11Ma f. ;arboa aoo4aida ala~l.ad • )ut ae haratul logredieot aod ,*ublici:ed' by I"orsl- asot aod anti'a.' : . f. .:. .?-.:. • -• . 8998 T09tS . ` t~e; e .A !Ox Qwntitativet Ittect on 3ales/Tro[ite 10x Tr. x i Survival --~i1_ll]It.l . ~aC . .. TIA Iat I icatiooa + or - Qwlitative .. K. ..,., ~.. ,.. • Ii=niticaat incrasae in conaum.r coocarn•, • D.cliaa in cigarette uait voluse growth. • Mandatory 00'lab.ling on package and advertieing. ; • ?iC reporta CO levels. • Reduced 00 levels on aatabliibad b~• ida. • Rw braada feature low 00 (law pa) aa . IM~ __!zl...•.tyM. 'a` ou!.~ .~~, . ~ + . • ~ . ... . . -• tbr4at THIS OOCUMENT ANO ITS CONTENTS ARE•SUBJECT...~O'q`aOURi'.oPo~R;~y ~'NO ,6 a9L pi00ZE USED, SHOWN OR DISTRIBUTED EXCEPT AS•PROVIDED IN.T~ E COU T,~ .QRDER9 r.y •..!.;~,.1~~~,,, •• 41 tyi.?''f`M'~•Il ~: L xlt~.al~1'~ti s .:;.R . tarlie~ Toeeibl 1Yeat ol Vc_CNrrtr 197i .~•. . . ..~ ~ ~~ • . .~.•..
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. rxlulllti bUtlvtnllt Ut rrobability of Occurranca . xey 2.auwa :ovarnaaat baa on high 'tar' cijaratta.• 6998 Z09ZS ~ ' + • olPortn.ity 1021302 hV : •".aAl 302 ib 10, .~~.y•.. . g • . . • ~• ....I• . Ilbt 1JJUtL rAVI Lt1i'L14A11Una1 tun MLL~tnu uoe4uA&ru.n 1?: 90x 19~' .• _.... ,., Quantitativa/ Zffact on 6alaa lrofita• 1 x Yr• sutvival r~ !U - •"Ecara" raducea unit voluse grovtb of industry. . ••iatabliahad brands ta.ediataly raduce 'tar' laval••of braad• affectad by ban. ' . . ' I i , . an .. r . . . ~a ' . • :.• . . ~+ ~. -~ tbseat THIu~QWt~AOR DI TRIOBLTED EXCEPT AS PR4V OED N E COURT.S•ORDERL NOT = .•' . • \ ~ . . • . . _ .:(.; . .~ • -A ., . r
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I-) ~ PRIORITY SUfWARY OF KEY ISSULS/1HPACT-•'W+•ICATI0N81 NARKETINC pEPAATriENT xey Iatue3• ~:. Ladoraeosot of .afa cijaratt.• 1 • Accalaratad reduction of 'tar' oa satabliahed brands. . . , • ~. Probability of Occurrence lOx 301 301 70: z . 902~ Quantitativ.t Effect on Sales Profita Survival IOx Yr. + . : tarliest Poeeible Year of Occurrenu 1995 . 0 ~.' .' •'.~.•.. . I 0L98 T09TS ii'' r:t I !p y :' I+.,'1 I Latiaatad Is act If lication• + or - ~ ti lit Qu. ve a ri :~ fa r.•• • Sipnificant avins to tha.e products as well a• •udden and draaatic shift to •auper low 'tar' brands. • Re.trictiva taxation teaulta on digher : ' 'tar' brands. 0 j4~P'•.'%,.J,r I . '. . A. +} . r s rnN a + - OpPOrtuaitr ~'.~.i.`'~....,r: -- tbr•.c THIS DOCUMENT AND ITS CONTENTS ARE SUBJECT TO A,COUFiT.pF%DhfR'AND.SHAII;'NOT:;J ~, yoaL JfED, SHOWN C1FiOISTRIQUTED EXCEPT AS PROVIDED IN THE.COURT'8 .ORDER.•:: . .~ . . . I
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~ f tq to•.•e pdIORITT fMtttT +'+ ~; . '. • '4• ~~- ! re ® 1. h.e.•al•w t• lflt• lflf a.d l• lftl•' lfaf. .rovtk r.ts of •.•h-;. !" .p• p•p.talte... lll. pop.latles ayN , 7f-1f ./ll gtaw dt wt/catlp k•tveat 1911 •wd lfef. f. 'klect• .lll Mo•.• I ...• Lr•ti..t e•.- wt of w ot"ret1a k.otoo•.. ® sa eurt•ne• ® t~~1 .  ®   a k: 4,. w t , Or Itir ItllRS/INfACT IMa.IC1aTION.. IU11UtsTINp OtpA1t1f1ICIIT ~ t u• . e ca on_ r aatltatlv~ t •c oe tal•a • ta •at Yty ya • • 0 • Oualttatlve fit•t,!i n ...:..i s.:.a t~ • incr•aa•d •cono.lc pr•aaut•• o• oow- •o.•t• and aharp•r lact•aa•a to clgat•tt• pttc•• • Indudktry grovtk d•pt•aa•d poltlnf Mt• r•taur• to IQet•a•• R.I/t /Aare to paSs volw•. • lact•aa•d coee•te evr cost owld r•ault lo •phaal• on val••, c•nt• ott, aed /owr ptic•d krand•. bu•r gtowth tat• tor loduttry •al•• tka• a••n In lfts-lf)s. • Saokot• is 31, o w/ll lar a oot• 1.pottdat tol• le ayr~•tl., plaa•. • at•at•r •+ohaal• o. .•1•ctlos of brand tot .ot• tetlo.al t•a•ono. • IiR has poaltlon of •tc•oltk but vlll aa•d lo pcotect ttow conp•tlttv lntrutlon. • /lgnltlcantlr /nor•aaad ctgacatt• conau.ptlon t•aulttnl ln e•od tor Ic•at•t advrtl•Ing u•tght, eot• tl•ld aal•a .anpow.r. ft•at•r patohaedt•taf •elotta, •to. •,Could h•1' 0.1A b•caua• ot eur 1r•at•r 'taa.ec• lo th• ratk•t piaca. • A thc•at du• to coop•tlttv avat•.••a ot Nll'e fo•th•tA •tt•n' th. • {hould Iw.t •vrap• ohlpptw, aed va•Aoeali%j co•t•. • Inct•a••d opportuelty for klack .ack•t eualn•at p+ttlt./atlr le lowf.r aad o•athol elrar•tt••. • ot•ak6o.o of sool'• p••t •roup Latlo- •oc• ep•u door tor •.oth•t I+taM to do.teat•. • foqult•• arr• kwOiil•d*e ot hl•ok•• raat•/dratt••. • klatko atr larg•r p•rwot et th4e pqo- latlos le hy N R.ark•ttng ar•a• •t artt. eo1 the !••t prev/h fo•th. . m m . poaall.l• • of 1f7t lfri : , 1111 lflt . . ~ ~ . 1f1~ . : .~ I .
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~ . 1 . r• , . . ..T, - .. •.• ' . . h.al•• will e•.tl" t• Neo.e a rscr t.T.rt.a ~tl•w ot tA• ..otU~ te"l at t•.. If.Ill.tw.ar)•c' •tsitt la• btow rco t•t•aw. Tiill. MPtli.l awA o.tss 1•.l elpt.tt.s, v111' eo.tlw.• t• Oc+v. ' but tU• ~rwtR, .i11 • b eowcwtcatd. , : , n+tr-r.++, ..,M,~. . h( f ~1t f~ 1 .~ ' t~fOtltT tt~1rT OT tiT Itttlp/IM11~ tIVLICATI0Mt/ NltlU~tTIMO Ob1lfMtttt t: ~.~...,. x I I ~ •2yr • + . • Or•at•t ooaa//•tatloa wat M 1lt•w t• vawt• aM d.•lc•a ot t•.al•., • Imor•a.N ..pAataal• ow •Aawllq rolaa ot vo.•e •Ia+a tAat of •!t•, Aa.o.at•t, aM .otA•r. • TM Co.oaay oaR•tla, a ecaw• n.•t•- lp wie•r ,1 ~.at ol• a.ol•cal naat• aa/ aaalt•• Wlll dowlaato aAar• of .art<•t gtortA. • wulta• ol•a• att•atloe t• this aatRat la aaw t+taed PlanelM •M traetln9 •t n•v t+randa pot•otlal t• paMtrat• this .attat, • MaJor o•u ltaa4 a,yAaala w1l1 Aar• ts oo+w•atcat• o• both tAa•• eat•gocl••, ' a tU llp Norrla, •t .a'or oowpotltloa, v111, la •11 tro4aellltT e• •atalq tAaoa .act.t. trlth both 'a U-tl lto.o aat a U-tl rratMl •.lt PtoArot. • . lnk
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!.'Fvl!`' 1ft1-1ltf . 1.T /,...o et et 40 avrro 760 &""* fet ' , Y•f oQ OA I,1.• retlt. . pwlltatlv. ' 9681144W ~'Ntu1o • t•a •t • . 1u ,wd tA/llt Mott/ a • o•reoot.t•1 nw br.ndo 1• Al-tl 1914 1 .wlt tlt.r.tt. ao.- ' •.l.yory w.eo..,rr. • • t.wl.• •bao • pprlt.• lett.,..d \nevl•d*• •t ' ttwaf.. tAe v,nt./d..lt.o 01 Con.r.a.o • t..at t.oAn•le~r L .r•vuln~ L . - .r..... .,tl.t,.tlo, at I•wr ta • l.volt• tlf. a t1.• ." v.lw  • • ts• nooN to t•ort on ro,l (/,p•rtaotl • 1914 .will cowt/n.s to 1pr•dvot ten.tlt.o not just .noMor rh.wge vllA tAo te.- . v.r 61 11lvinq the •..• tA/al. • tlww• t,t..f.dow ot • Coeaonat,tton eo t..l •t 1..ttM . at.d/tIoA.I/M ,wd v.11M 664 •p..r.nC.. Mt just ttMft ero••th focvt..4 •n or t1l~Aty t,.Aloe• , t.l/-t.,llt.tlo.. • Con.u.rr• .111 •ooL •v.4 rr• Pt•Iwta with rest v.lw .nd .o..iw9 to e•of• • •olt as a Ptojoot/oe •t •wo•t p.l • .ole. , • Iaero..N •.pA..ls o. A•.lth will , l.n ~ na~ot rolo is wt• r,tl•wdl lM behavior. • . _ . . . : ; • . .~f..''/ , l ~L9g T09iS • t. .oWl :COOS I I 0 0 0 1/• oh ~ \
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Litirtid irp.ct IepIlieations } or - ~ o Prob f Oe abil turr ity enee Quantitativ.l Lffact on tirllest Possible 3alas lrofits Qua tat v li i te.r ol xey Iaaues ~ .r.~ ~ . 101 301 SOX 702 102. 1 X Yr. Survival y Otturrents .1 . . ~ ,. I Limitation•/Detwiocat` x' f x'" • Page tm its in magazines will no langer be 1976 6-6 icn•' of inpact _ ~ ~ a8t87iJai4'J - "t't".'+.a...atl 1980•1 • i . • Attenpts mny be made to charge tobacco ' advertisers a pre;etiun price - threat • Newspapers, in sane form, to beamm nwre as vehicle - . Alternative media fottn9 rtwt be fourn to I sCreaae in cost per. x t fulfill total Cbtporate denand - opporrunity • bystem mast be develroped to most effic --.ntly allocate scarcu inventories of existit.• tredia oonsistent with Qorporate/8rand objectives. • Specific segments of ths populatien ca n bee I 1978-198c unit of inedia e~osa=a reached in a eonoentrated maruw-r - opporttmit • Population secynents of high potential nust be defined acxd ooocentrated against - opportunit . Broad total eonsurer reach can be achieved only with an increase in eoyt-per-thousazxi ~ cigarettes applied,against advertising - ~ ~ ~ threat ~ _U 1 0 0 N P L98 Z09I5 : . ; . ,::,:. 0 . : . St• '•.h 1i!h_J.4. 0 \ ^• ~ ~ . • . . , . .. . . . . ' .~1.- ... + . N ~; • oPPortunity 1 . . . ,:• • , -• threat THIS DOCUMENT AND ITS CONTENTS ARE SUBJECT TO A COURT ORDER ANd•SHALL NOT !;r . BE USED, SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT'S ORDER. I oav~ iEOOS ~ ._ .. __ ~.. ..._- ~ ..~
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_U N 0 O O ~ O -~ Inptvvamrnt in Nealth. 'radiro1ogy : . ~. 1VNPM onntrollsid • :. Industrlt ' : i Oruelopaent' of mssui* ~ aooerotable r~on•-tnt'°ocP , bnse ciqarettn • ~ . . A teciriological tz+enk- i ttnvugh, either a drug or clinical'P:voedure# that will allow peopl;o to quit •nokin,g ,ao,r,e; . easily . . ~ . . 5L98 T09T5 x . . , x?: • ;. ;~.. :`~CON ra • 2 a1"ion• + •- . ...:c..ti :~. r ~ ..+ IA ~ . Sliminaof conoet•n atout• emoicing (+) Itxareased oonoesn w'it11 more raedy ab,i Lity 1^80 . ;. ~ to quit (-) DealoMent of products alledcjed to be less hazardau (+) . . ,: . . . ~ R6eaibla anti-trust peril. (-) Aequired tiriancial owmitment for row xar.ds atfotidabls only to tra mnjor ooap& ies (+) 1985• '- x.. .Proliferatian of or:npetitiya antries troa irdustry segrents not rrow in taber~oo or to6eaoo-r•lated businese . : 'A becficx~logical 6realthrougtt, heavily arlver- . , 1980 ., tised and pronuted, `+ould lave a msjor . txogntive impact Gn oorsuptioo. ~ .. •• ~ . . .• IDENTIA . , . t+ • o~toftWl1 . : . . .. , : . -• t~se.t ~HIS ~7OC11taENT AND ITS.CONTENTS ARE SUQJECT TO A COURT OROER~A~Ip.SHALL' 'NOT~:~~ • @ifnpDQMOWN OR DIS'tRIBUTED EXCEPT AS PROVIDED,IN THE COURT'3 ORDEq,.. . . I f ~._' ..... ~........~...- ~--.:.~'_. . :
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A p xay Iaaue• ~ . • . .tr•. • . .: Oost of cigarettes mny be elastic, either on at1 absolute basis or relati to cJeneral .inflat•ien:rate trobability of Occurr.nc• ., 102 302 502 702 , 902 tt • • . . ~• Qwntitativa t tff.ct on sala• lrofita Surviv. OX Yr. Latirt• e act'In icationa + or - a ,,, Qualitativa . ~ ~ ... .y~w tp: ., ... . - Wrrent andaars/new sa%*era wi11 be incced% kept out of the market on pLke eoorcania reasons. - Oarporate paofit mnrgins will be jeopattiized to remnin within inelastic range or, . - Absolute sales/profit will*fall belLow lorg- tezm yoals. • / [a[litt lo.aibl Year ol 0oeurret I tnlaroan . } . ~. . . . ; . ~ ~ ~ ; ~ . ~ r f N . ~ 0 9L98 t09tS 0 0 bcuru~ O' r IV .• • + • oPfortunity .: ,.•u .. ._ . . . . .. . . .. ,. ... ... , .. e +. .... .... t,..t.~• AN~ :r .C •~t at -• thraac THIS DOCUMENT AND ITS CONTENTS.ARE SUBJECT TO A COURT ORDER D'SHAU, NOT:;. v V tSQU*DQSHOWN OR DISTRIBUTED EXCEPT AS •PAO,VIDED IN THF- COqRT'S ORDER. . I =i>>~~~{4 l
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R.y, L.w• Ot1tatlYal Pbatiniqn iaelrkedezy '..ncre4sn ActivitY W.', U.S. market• . . ZtteCt oQ a~ocoanent'ot Strorqu l.aws pcohibitirg iaL.s teati= of ciqarettes bo, a9ws .. ; 1 . , m 10: . 302 sox 702 9ox- AeducUm in 'txnbar of new amoitem. ~ ... ..•.• . . ., . '` . , •. . . •. ' . ` . LL98 T09TS N ..I . ,•. Sal.• Trolit• z Yr. Survival . .1 p~pducta in'U.S. mmrk,et • '~...+: . , . • .. . . F~wOre&cticQ i11 share of 1cISL'iCM . . CONp , .~ I DENTI!(l1 . .. . .• . . : . ~; ~I ~ ,~1.. t•. ~ r. "+ • dPtottuaitll-IIS DOCUNEENT AND ITS CONTENTS AAE SU9JECT TO A COURT ORDER AND SHALL NOT •i -•-tAraat. BE US6D, SHOWN OR DISTRIBUTED EXCEPT.AS PROVIDED IN.THE COUFtT,'S ORDER. . , . •. . . , . rSOt' • . . . .~ , .• . I 1978 ~ 1980 . . . . •.,_ ,....__
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. ~.. ••I~. . A, tit KIAV1Y! .• f. i i 8L98 t09T5 ~ tSOL 0 0 0 ' CONFIDENTIAL ~ ~j {:~'~:~y17t ~ " ' ' , S~iALL NOT~~ THIS DOCUMENT AND ITS CONTENTS ARE SUBJECT TO A COURT ORDER;~lNO '~ SED SHOWN OR DISTRIBUTED EXCEPT AS PROVIDED IN THE COURT S QRDEii ~ `' i . .... ~ . ... .
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I Yr• s ~s tl 1,014 "06 ' ~ ~ jv . . . . h NI ~f t~~L wY`r __- ., soole 7854
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• ' .' ~ i...~~.M. Product Satisfaction Trend/Issue Event Consumer demand for hi-filtration cigarettes is in- creasing at an accelerating rate. Manufacturers have a limited ability to provide satisfaction in lower 'tar' and nicotine products. What Will Happen? Zf this trend continues, hi-filtration products are expected to account for approximately 28% of all cigarettes sold by 1980 and 421 by 1985. 000471 s RJR will be unable to achieve its share of market goals"~' unless we can develop low 'tar' and nicotine products that deliver sufficient taste to satisfy consumer wants." What Will Be Its Impact/Implication? MtD studies, marketing analyses and competitive actions.: .~ .~ 11;/-+. . P 2 o nn,?F7tlc
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/: ~ ....•.~.- • 1 , . Resource Develops+ent and Allocation for use of finite Company resources will increase dramatically. 000472 Trend/Issue Lvent . .-•...... - .ti._.. As consumar wants are identified in a more finite manne= : and products to meet those needs are developed, the options 4 Li 0 Our need to identify and priorize problems/opportunitiea -= will increase, and our ability to solve or capitalize on all = but the critical ones will be increasingly limited. 0=.- ~ ~~ What Will Be Its Impact/Implicaticn? . ~_..._. The likelihood of achieving our ambitious business qoala ' will be jeopardized. When Will Zt Happen? It is happening now to the magnitude of .achieve. and will accelerate in direct proportion shar. of market increases we wish to': Management seminars and plans, on-the-job observations and business/financial forecasts. o,)(1nr1f)C.?10
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/' , a Market Segment Performance Trend/Issue Event Philip Morris has succeeded in the recent past of capturing the predominant share of smokers 18-24 years old. What Will Happen? PM could become the market leader if these smokers retain their loyalty to PM brands as they grow into the "prime smoking qroup" of 25-34-years. What Will Be Its Impact/Iaiplications? . RJR will lose its leadership positiom. When Will It Happen? Late'1960's. Sources MRD studies. . . . . . . _ . ~. . . ~ . . ~.... . .. ~.~ . . . .. . . . 000473 ~-+ a P2Dnn7671- O O
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000474 Organization Performance m= Trend/Issue Lvent . ~i. w.. RJR's'marketinq organization continues to expand in relationship to the growth in the number ot our brands.==.z and the increasing complexity of our business. What Will Happen? ~ ~ Ifprovisions are not made to appropriately plan for _' future organizational needs and to properly hire and train managers, we will be unable to cope with future. challenqes. . . ~--:- , • . ., What Will Be 2ts Impact/Implication? ~~ The prospect of achieving our business goals is •substantially diminished. When Will St Happen? On-goinq.. Sources . . . . ..~, ' A _ .; ~.. --Y_ . . . ,#y~. ' . ' . Business plans, organizational surveys and workshopa, personnel poL•ential•reviews and auccessioa•plans.. .:. . • . .. .; UMa 00 01 00 W P2Dnn76712
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r \ \ ~ .\ \- i I a 1•...r .1 0~~,~ ~(Cr~' CONFI DEt~TiAL lh.. ~''! !}7af,?.aM ~ aN~li..'~~~ r 1 ~4 f4~ ., ..1.• . 7~:v._. l...,. ' .: . .. ' `.'THiS oOCi1MEN:Y;qt~D ITS:O~NTENTS ARE SUBJECT `f0 A COURT ORDER AND SHAL'L'NOT : B~ rUS,ED~~,~~~~Nlp~,~+ EXCEPT AS RAOVIqED IN THE COURT'S ORDER ~' ;~J ' 50038 74s'1 r 51601 8684 C C ~ N a
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/ . lCEY ISSUrA OF R. J. REYNOLDS TOBACCO COMPANY Drternall Oriented Grow Dramat:cally Consumer Health Concerns - Increased health concerns about• qarette smo ing rom th smokers and non-smokers. ,^.. V Social Acce tabilit of CS arettes - Cigarette smoking and e c qarette smo er are being damned by the government;''=• ~_ a.dia and crusading non-smokers. Marketin Restraints - Increasing threat of greater qoverssa+ental-,--% ae restr ct ons on cigarette advertising copy, mediay~sage; ' rial ineentives. and t labelinq ~q • , , ~d '-~ ~ ~ the iadus trY • 'r Carbon Monoxide - Widespread consumer publicity alleginq••harmtul __ e teots of carbon monoxide and other gases in cigarettes._," c Graduated Ciqarette Tax (Based on T & N Levels) - Threat o,f a new F era exc se tax se on tar and nicotine levels`. Indust Trend Toward Low-'Tar'•Ci arettes - Ciqarettes."'1iavinq 14 mgs. tar, an less become the argest volume category;;in cigarette wi very low nicotine and gases or a synthetic'cigarette (ltSM, etc.) is endorsed by the U. S. Government or medical groups . . . . -,.~ b t d ban oa cigarettes having over a certain leyel•. ot 'tar' .;'~=•L . ^,..~t •.:.r Endorsement of 'Safe' Ci arette - For example, a zero !tar' Government Ban on Hi h-'Tar' Ci arettes - Possible qovaznment as ree pro uct. siag a saXe or risk itecess•ion in 1979-1979 -and in 1983-1985 Slowdown in the Growth Rate of Smoking Age Population Po ulation 11 ed 30-39 Will The Southern U. S. o ume Blacks Will Become us ness s 000413 ,_re, 7. ?. . i . Between 1975 Will Show the Fastest Growth in a More Important , Seqsaent of the Cigarette .~ l ., temales 'Will Continue• to the mo :nq Popu ation Beccme ~i`' lsuie"`Ia~porta7it• Po~ti'o~ rott ~ Zs ~- ~ ~ m m N ,'''~ Industz,y - -~ •r. .~ 0 ~ P2Dnnnocr4
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P: .,• .~.:• '~l30d0 S.yklfl0O 3Hl N1 a3ClIA0Eld SV 1d3~X3 a3-if181d1SIU !!O NMOHS'03Sf1 38 xaY Lwe• ' Wt Sats..tactice • • xa•os Derelopment i xcat.iC[1 . . :et Segment perfa=enc* Q1iZatia[1 PirCQl1tilnoe -u N ~ 9898 T09TS ~ opportunity threat ; u9o1 :Y[OOS: . ',,".. Quant tat I ~ . tff. ~ i4 at o~ s.l.• lrofiti I 902 X Yr Survi. ` ~ O1• OCCtlrrtO¢! , 302 sox 702 +• . +. .• N3UI:1N4j Me . RJR will be uneble to adiie4p its aharM of Aarket goals 1a11eas Me caa dew9LOp 1ow • tar • and nicotine prvductft thnt deliver aalfiCLent ' taste to satiafy oorAuaer r+ants. . mnt ia. thd l6el of advertiabnAtmotion qmndi119 IeViZed to RwXit4i!O Volu1mM '' . - by trand style - tew vs. eatablished .'Nbt is the nost ptoductiva allocatian of mnrketinq i`ta7ds for eech bratd - geo3raphically cal.l . Ha+ do we maxUdze the ues of finit. =soucves - media • spaoo . • - diaplay/stielf apeos RTR will lose its leadersltip positicn. . 1he pr'oepect of achieving our•busitbss qoals is subetantially d.imiriiehed. ' . 4:~ . r r• qt T } • !i r ll Yi ~ .. ...:...i•'' : ' ' s Crr~ .y ! O O O v o% \ .
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pUBLIC Sli.77CZNG 0 --`!n; -1971, Jesse L. .Cteinfeld, K:D., then 469. Surgeon Genefal, advocated the proAl.k4ip';cnn, of smoking in confined public pIaces, suclf as•restaurAnts, theaters, airplanes, trains and buses, because the oonsmoker sight be injured by ambient tobacco asaoke (i.e., tobacco smoke in the atmosphere). Steinfeld,•a atateasent qsve anti-smoking groups an effective tb.ae. 'Ae sati-sroting organi=ations adopted the objective that smoking should be sade socially un- acceptable. They began a mass invasion of state capitals and city halls to* argue that laws seust be enacted to pro- tect the nonsmoker troia ambient tobacco smoke forced on his by smohess fa pub2ic places. CKRDNGLOGY The following is a brief sketch of major events at the state aad l.oar-1,A evel subsequenat to Steinfeld's clarion cau. 1970 Ten"'SiLs. introducedd to• restrict smoking in ~~ placesi none enacted. p eight bills introduced Sn five statesl two enbcted. Siscteeis bills proposed in 12 statest two enacted. 8&'Z*Oopted guidelines which prohibited smoking iai~of'ezeae: zoaes and avditoriuas in its build- ed zsepzired so sssokinQ. sections in its eifasirias.. 1973 ~irty-six bills- ' proposed in 16_statesi five enacted. lsanysunieipalities enacted restrictive ordinances. SbeJlrtsoaa zestrictive law and.Sts prcmoter, Krs. BettY Caraes, received vide.publicity. The CA9 ordered commercial airliners to separate smokers and noa-ssokers. 1974 Si:ty-two bills proposed in 29 statest five enacted. Several snuiieipal ordinances restricting smoking also were snaeted. The ICC restricted smokers to the raar _V V=O&ML 4&f &.at1aQ space on A•aterstate buses. Oee hundred sixty restrictive smoking bills intro- duced in 48 statesl 17 enacted. The Minnesota Clean Indoor Air Act restricted smoking in a broad range of public and ccma+ercial areas. The.New York Health Department prohibited smoking in public areas, in- cluding supermarkets. f 1. 2. 3. d. S. 6. 7. 8. 9.
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r f 1976 One hundred sixty-one bills proposed in 39 states# eight enacted, including the Utah Clean Indoor Air Act, another- bzoad ng saoking bill.--3.awsuits were filed against the Pontiac, lsichiqan, Staditisa Author- ity aad the New Orleans Superdacae by snti-smokers seeking to prohibit smoking in the buildSngs. The court dismissed the Superdome action and the Michigan lawsuit was settled with an agreement that the stadium would request the public not to smoke except Sa coaeourses. The SCC prohibited smoking in railroad dining cars and required sepa- rate passenger cars for saaokezs and non-smokers. Donna Shiap sued her employer, New Jersey 8e11 Telephone Company, and obtained an injunction re- quiring the company to provide her with a smoke- free working eoviroament. Ms. Shiap was an ex- smoker who elaistied she had a rare eye condition which was aggravated by tobacco =oke. 1977 One hundred thirty-six restrictive bills introduced in 44 states, 13 enacted. The General Services Adaministration (the caretaker for U. S. Government b~~lldfags), the State Department and the Department o~iWi ense enacted restrietive smoking guidelines - f_oz bziildings under their control. The FAA re jected I 44-ion by a Nader yroup which requested a ~ p"l,bition against smoking by pilots on the flight deck of airlirers: The CAB voted to prohibit pipe ~ a~~gar smoking in interstate airlines and announced that it would consider a rule prohibiting c ~ c ~ritte sr~oking. , 1978 Ak ~'~Say 1, 97 restrictive bills were introduced i%k;23r•.,-:states, asid three. were enacted. . As a part o•s 'War on Sfloking' program; HEw proeaulgated new • reatrictive . moking rules for buildings under .;~,~..~- itc ~c&tzol. and annourced its intention to urge businesses and state and local governments to adopt restrictive sookinQ rules. California G7.SP and Californians for Clean Indoor Ais.obtained suffi- cient signatures to place a broad anti-smoking initiative on the ballot for the California general • election i.A ttovember. '=wenty-six restrictive measures were proposed in local governments and eight have been enacted. In April the New Jersey Public Health Council added a broad no smoking- in pnblic proviaiaa to the iier Jersey Sanitary Code, which is enforceable as law, effective July 1, 1978. 2splesentation of the aew Code provisions- aay be delayed at the reqoest of the New Jersey legislature. Anti-smoking grwps have continued to enjoy their great- cst successes at the local goverTument level. tbst ssa jor cities now have restrictive smoking ordinances. Zhere are raraprapn ntum5at 10. 11. 12. 13.
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ParaDraph Numbe iaore than 225 local governments with restrictive ordinances reported to the Tobaccgo Institute. T%e actual nuzber is " probably larger. THE IJ1WS At:D EttFORCEY.ENT I Thirty-two states and the District of C+olumbia have en- acted legislation restricting smoking in at least one cate- gory of public places. Ot those 32 states, the majority have en- acted prohibitions or restrictions applicable to elevators, public transportation, theaters, auisetaas, libraries, concert balls, health delivery facilities, health care facilities, governaent buildings and public meeting places. Six of the 32 states have protiihited, smoking or require segregation of smokers in retail stores, food stores, and restaurants. Two states (liinnesota and Utah) extend their restrictions to pri- vately ovned places, including offices where more than one person works. ?be lsinnesata Clean Indoor Air Act is one of the two broad- est state restc'Ietive laws in- the United States and has become 91 iti-srookiny legislation. The law prohibits the ao3e2 or-_ smoking in ~!c places except in designated s=,oking areas. The Act def3'public place• as: ...ary enclosed, indoor area used by the general K-Iq"blierving as a place of work, including; but •`'riot li.dted to, restaurants, retail stores, offices ' 01 a d oL[~e-j-oma+ercial establishments, public convey- ances,Leducational facilities, hospitals, nursing l+eaes,Fa-uaitosfcmes; arenas and meeting rooms, but e:elndip_%;-p-ri.rate, esclosed offices occupied exclu- sively,~by,,..smokers even though such offices may be visited`"b``•.aansmokers. ~ Ssoking. areas sQy be designated by proprietors of public places, provided tbate ...vhere saoking areas are designated, existing phycical barriers and ventilation systems shall be nsed. to minimize the toxic :affect of the 'smoke in adjacent nonsmoking areas. Current trends in state laws and local ordinances actually e natted ize the Zxttailon at smakin9 restrictions to cover goverrment-ovned+bu,ildingr, grocery stores, supermarkets and health care and. dnliverT facilities. The ma jor trend in the bills i:t.rod2oe3, reflecting the ambition of anti-smoking supporters, ie the. ezterrsion of restrictions into the vork- place, including officer. , 11. 15. 16. 17. •
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Para2raph Nurnt Reported enforcement activities appear to be the result of either official priorities set by the local administration or;-aare frequently,- tandom efforts by local GhSP chapters to obtain e,nforcement of the laYs. In Chicago, =oking on Transit Authority trains and buses is punishable by fines of $50 to 5300, offenders are tried In 'Saokers' Court,' where more than 800 people were convicted in 1975. People vho could not post the i2S bond had to spend the night In jail. Lven tbose u:zo could post bond often had to spend several hours in custody before cutting the red tape and winning release. Smokers have been taken bodily from trains because they protested their arrest. Ninety percent of the arrests have involved r.inority and low income groups. Ptovever, In most cities which have enforced public =ok- ing laws, actions have resulted from private coc:plaints and citizens' arrests made by private individuals, usually aveabers of GxSP. Most reports of enforcement from citizens' arrests come froa California cities. The laws of snst states do not authorize a citizen's arrest for violation of no smoking laws, but in Calistozrda smokers can be arrested by fellow citizens. 18. 19. 20. ~ Yet th• p', ry impact of =oking restrietionn laws zsay be the creatiorr-wf ; a no-smoking norm in public places. The 21. N_.. Co.•nmissiont b!°Dade County, Florida, ad..itted that that . 00-11, t ~. covnty's anti-s~okiag ordinance .ras virtually u~nenforceable ~ b e3i~ d t - : .~. u ..~-.. ~ e ~'r+""; • e' F=1vt itIg;:tiiing morally enforeedt it's the people, the people°in the elevators, the clerks In the ~~. stores'wnt, the nonsmokers in the check-out lines,' who bY aLeIr re=arks to offenders are.enforcing the lav:~it's being enforced by people who want to obey~t2 t law and I'd say it vas 85% to 90l - ~.-.,,~ ~~. effec6vc ~ The irspact of no-saoking laws on the cigarette market has ' 22. ~~ ~»~. A=k kqmve nat been accurately measured. -Hovever, to gauge the iapact it is helpful to remeaber that the average soloker In the United States consumes 1.5 packs per.day.. If St is assumed that smoking prohibitions in public places caused the average sroker to eonsuo+e one less cigarette per day, total con- s=ption in the U.S. .ould be reduced by 1/30th.- • : } 'tM #EDICAL fJICTS Lvidence is accumulating that the nonsmoker may have untoward effects from the pollution his smoking neigh- bor forces upon him.... It is high time to ban smoking from all confined public places such as restaurants, theaters, airplanes, trains, and bu ses.... 2n 1971, Jesse L. Steinfeld, M.D.,- who served as U.S. Surgeon General from 1968 to 1973, said: 23. a 0 0 a e. N P ~ J
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Parapraph Numbe t : There was no evidence in the speechl, and there had been no evidence in previous Public Health Service (pHS) reports- to-Congress oeb -.moksnq. and health siqned by the Surgeon General (commaal'y cafiled. tbe Surgeon. General's Repott). In fact, apreviousI3,r published PHS booklet entitled 'Se+oking, Health, aed' 7ou•' stated that the caoke froea other people's cigarettes 'any make vour eyes tear or ssay a.ake you cough, but it cannot har vou....• The next report to Congress on smoking asad health, the 1972 edition, for the Mandt time cited reports indicating that ambient tobacco smoke could be harmful to nonsa+okers. The evidence was not convincing and strong contrary evidence vas amitted. Anti-smoking groups lSa+ae zepeated Dr.. 6teinfeld's claia.s in forv~ms throughout the. tta;fted States and have expanded them to Snclude assertioas abcut s variety of potential injuries to nonsmokers fron ez s;-rw to ambient tobacco smoke. The anti-ssokers' claims that nonsmokers can be injured by asabient 4co smoke are not supported by scientific evidence. L 11.4 instructive to exaioine a few of these claias 3n the lightof-,;scientific and medical ks~ovledge. Toxic ~anoe:a a=tf-smokezs often present a list of so-called 'toxi7q• substaaces Sn tobacco smoke as proof that tobac~~smoke can be haznful to. the nonsmokezl. 0 ~'l~or ex__lei, cigarette smoke - contains hydrogen cyanide. Anti-smokers_aay also say that ambient tobacco smoke includes 'side streaas'-nMoke (tbs: smoke. vhich goes directly into the air from ~g eada csf the dgarette) vhich has higher eoneentrations o_ f s+oee sabscances than the smoke- inhaled by ~ the smoker. These charges ignore the fact.that first, the. concentr