Tobacco Documents Online

Public Statesents of AB Concern£nQ Tobacco Sum.cry of Table of Contents Volume 1 Includes Documents Dated 10/20/53 ~b~o~gh ~/18/~0 Volu~e 2 Includes Documents Dated End of 1960 through End of 1971 , Volume 3 Includes Documents Dated ~h~ough s/~/e3 Volume 4 Includes Exhlbits A through G * Indicates volume contained inside. 282004385

109. ii0, iii. 114. 115. PUBLIC STATEMENTS OF AB CONCERNING TOBACCO MASTER LIST - CHRONOLOGICAL VOLUME 3 Press Release: "American Brands Reports Record 1971 Sales and Earnings" (I/25/72} ............................... 485 Senate Hearings -- Public Health Cigarette ~endment of 1971, Statement of Dr, Shel~on C. S~msrs, (3/30/72) ............ 486 Senate Hearings -- Public Health Cigarette Amendment of 1971 -- Consmaer Sub- committee of Comm. on Commerce, State- ment of Robert C. Hockett (1972) [This Document In its entirety is eluded as Exhibit E to this Report] ..... 490 Senate Hearings - Public Health Cigarette Amendments of 1971 - Statement of Horace Kornegay (1972) ......................... 496 Senate Hearings - Public Health Cigarette Amendments of 1971 -Statement of Dr. Sheldon C. Somers (1972| ................ 504 1972 10-K ............. ; ................... 510 Deposition of R.K. Helmann in Kraft (4/27/73) ............................... 511 116. Statement of Robert B. Walker [7/I0/73) [Not Found] .................. 534 117. 1973 10-K ................................. 534 118. 1973 Annual Report ........................ 535 119..1974 Annual Report ........................ 535 120. 1974 10-K ................................. 535 ZSZO043S6 282004386 Subject to t-~[m~ of Privilege and Confidentiality: Produced Pursuant to Court Orders In State of Minnesota, et al. v. Philip Morris, et al.

121. 122. 123. 124. 125. 1975 Annual Report ........................ 1975 10-K ................................. Senate Hearings -- Cigarette Smoking & Disease, Statement of Horace R. Kornegay (1976}: [A copy of this document in its entirety is cluded as Exhlb~t F to this Report] ..... Senate Hearings - Cigarette Smoking and Disease, Statement of Curtis H. Judge {1976)~ [A copy of this docu- ment in its entirety is included as Exhibit G to this report] ............... 537 538 540 Senate Hearings - Cigarette Smoking and Disease, Statement of Dr. Robert C. Hockett (1976) .......................... 554 126. ~976 10-K ................................. 557 127. 1977 10-K ................................. 559 128. 1978 10-K ................................. 561 129. Press Release: (1/10/79) ................. 563 130. Press Release~ "Carlton Leads the Pack" (5/~/79) ................................ 131. Press Release: =Carlton Nea~s Top Ten" (8/i/79) ........................... 566 132. 197~ 10-K ................................. 567 133. 1980 10-K ................................. 568 134. 1981 lO-K ................................. 135. Senate ~ear~ngs -- Co~c. Smoking Educ. Act., Statement o~ E~war~ A. HOEEigan, J~. (3/16/82) .............. 572 282004387 282004387 Subject to Claims of Privilege and Confidentiality: Produced Pursuant to Court Orders in State of Minnesota, et al. v. Philip Morris, et al.

136. Senate Hearings -- Comprehensive Smoking Prevention Education Act of 1981, Statement of Edward A. ~orrigan, Jr. (S/I0/82) ................. 137. Rouse Rearlngs -- Comprehensive Smoking Prevention Education Act, Statement of Edward A. Rorrigan, Jr. (1982) .............................. 138. House Rearlngs -- Comprehensive Smoking Prevention Education Act, Statement of ~mbert C. Hockett (1982) .................................. 139. 1982 10-g ......... ................... . .. . 140. Souse Rearlngs -- Comprehensive Smoking Prevention Education Act, Statement of Dr. Sheldon Somers (3/17/83) ............................... 141. Rouse Hearings -- Comprehensive Smoking Prevention E~ucation Act, Statement of Curtis Judge {3/17/83) ..... 142. Smoking Prevention Realth and Educa- tion Act, Statement of Dr. Sheldon C. Scmers (5/12/83) ..................... 143. Senate Rearlngs -- Smoking Prevention ~ealth an~ Education Act, Statement of Curtis Judge (5/12/83) ................ 576 581 596 601 603 609 612 ill 282004388 Subject to Claims of Privilege and Coufideutlality: Produced Pursuant to Court Orders in State of l~innesota, et al. v. Philip l~orris, et al.

109. Press Release: "American Brands Reports Record 1971 Sales and Zarn[ngs" ([/25/72): In January 1972, the tobacco division completed national distribution of Lucky Ten, a low "tar" £ull flavored cigarette. 5ucky Ten yields less "tar" -- i0 milligrams per cigarette - than most national brands. Government tests have consistently shown American Tobacco's Carlton to be Iowest in "tar" of all £11ter kings. - The Chairman [Walker] stated that cigarettes continue to be a leading consumer commodity despite continuing antitobacco campaigns. "Americans have been enjoying smoking for centuries," he said, "and the fact that they continue to do so today is indicated by the strong level of industry sales .- Record results for 1971 were reported by Robert B. Walker, Chairman of the Board and Chief Executive Officer of American Brands, Inc. American's net income reached a new high of $119,417,000, up $11,234,000, or 10.4% over the $108,183,000 reported in 1970. Earnings per Common share were $4.30 compared with $4.03 reported in 1970. Earnings per Common share were $4.30 compared with $4.03 reported ~n 1970. Record sales for the twelve-month period, up 5.7%, were $2,827,772,000, compared with $2,674,461,000 in 1970. These results include Acme Visible Records, Inc., coI~a~enclng Aprll i, 1970, Swlngline, Inc., commenolng M~y I, 1970, and Master Lock Company and The Andrew Jergens Company, commencing December i, 1970. Rising costs of manufacture and leaf tobacco curbed last half profit margins on tobacco products. The tobacco division's price increase, effective January 5, 1972, on its nonfilter cigarettes [Pall Mall Regular, Lucky Strike, Herbert Tareyton) will help maintain tobacco profit margins in 1972. This is the fifth consecutive year since its first acquisition in 1966 that American has reported record nat income and sales results. Since 1966 earnings per 485 282004389

share are up 43%. Sales during the same period have increased .8%, with nontcbacco sales up 268% .... A~ertcan's non~obacco business, for the yea~, In- creased to a new high of $782,800,000, and now represents about 40% of the Company's domestic sales dollars. Walker said that American's Board of Directors today, voted to raise the annual dividend rate bye=8/10 cents to $2.28 B/10 cents per Ccx~mon share, the eighth ~ncrease since 1963. Since 1966, the dividend rate has Increase~ by 27%. In makln~ the ~i~i~en~ announce- ment, he noted tha~ the 4% increase is the maximum allow- able under Phase II Gu{delines. The Cha[Eman state~ that cigarettes continue to be a leading consumer commodity despite continuing anti- tobacco campaigns. "~merlcans have been enjoying smoking for centuries," he said, "and the fact that they continue to do so today is indicated by the strong level of industry sales." Operating income for The American Tobacco Division was about the ~ame as the previous year. O~ the international tobacco scene, Walke¢ repo~ted that Ga~laher Limited continues to account foe 25% of olgaEette sales in the United Kingdom, with smoking tobacco, cigar, wholesaling, engineering and optical operations showing growth over 1970. 110. Senate Hearings -- Public Realth Cigarette Amendment of 1971 [3/30/72], statement of Dr. Sheldon C. Sommers: ~Would you agree with the statement "there is not now sufflc[ent scientific evidence to establish that Cigarette smoking causes disease?" Yes, there is now insufficient scientific evidence to establ~sh that cigarette smoking causes disease. Testimony of Dr. Sheldon C. Sommers, Senate Hearings on Public ~ealth Cigarette Amendments of 1971 (3/3~/72): [The concern of the cigarette industry regarding smoking and aisease] is why the entire tobacco industry -- growers, warehousemen, and manufacturers -- since 19~4 486 2~004390 282004390 Subject to Claiu~ of Privilege and Confidentiality: Produced Pursuant to Court Orders in State of Minnesota, et al. v. Philip Morris, et al.

has committed a total of $40 million for smoking and health research through grants to independent scientists and institutions. That is why the tobacco industry is spending more money in this special field of research than any other single source, Government or private. [O] Even if cigarette smoking does not cause disease do you believe there is data to support a dose response relationship indicating that those who smoke higher tar and nicotine cigarettes seem to get the diseases attributed to smoking earlier and die earlier in life than those who smoke lower tar and nicotine cigarettes? [A] * * * If you simply mean that people who smoke higher tar and n|cotine cigarettes are supposed to get diseases and die earlier than those who smoke cigarettes with lower tar and nicotine, ~ know of no data that demonstrate such a relation convincingly. The preliminary reports comparing filter an~ cigarettes do not permit any definite conclusions. Q. TE]ven if cigarette smoking were not a health ~a~a~d do you agree that epidemeological [sic] data shows a greater incidence of premature death and ~isability among those who smoke cigarettes than among those who do not smoke cigarettes? A. Vital statistics partly involve plotting ages at death for populations dying over a wide range, and calculating the mean. Certain persons die young~ others live long. Application of the term "premature deaths" to the former has no scientific basis. Premature death, therefore does not mean anything to me except possibly the death of a prematurely born organism. The so-called cohort displacement observed epldemlologically in ciga- rette smokers appears to be a statistical artifact repre- senting changing population habits with time now desig- nated a secularity factor. The matter is considered at greater length in the analysis of the 1959 paper of Cornfield et al., which you requested. This finding probably has no health significance, and once it becomes appreciated to be a source of error it will lose any practical epi~emlologic value. Testimony of Robert C. Hockett, Senate gearings on the Public Sealth Cigarette Amendments of1971, Consumer Sub-committe of the Committe on Commerce (1972): 487 282004391 Subject to Claims of Privilege and Confidentiality: Produced Pursuant to Court Orders in State oflMinnesota, et al. v. Philip lMorris, et al.

I do not f|nd an7 convincing evidence that either tar or nicotine or any other agent in cigarette smoke has been "Incr|mlnated" in relation to any h~an disease. Consequently, there is no scientific basis on which to establish "maximum accegtable levels of tar, nico- tlne or o~ber incriminated agents" as proposed in S. 1454. "TAR" This is a term which I do not approve of. far to call ft tobacco smoke condensate. I pre- The experimental method that did produce an ob- servable [pathological] result was the painting of smoke condensates (generally but erroneously called tars) on the skins of mice. The multiplication of such skin palntlng e~periments has been chiefly responsible for the widespread ann apparently confident idea that the reputed dangers of human cigarette smoking with respect to lung cancer have already been traced to the amount of tar in the smoke. I feel that this is not by any means correct. I. The relatively enormous dosages used in the animal skin experiments, and really requlrea to get results. Calculations have been made indicating that a man woula have to smoke from 30,000 to 150,000 ciga- rettes a day and Inhale every puff to gel such a dosage of tar 08 an equivalent area of his lung. • • t 4. Smoke condensates or tars are not equivalent to whole, fresh, normal smoke. Co~densates of smoke collected by passing smoke through cold traps at uery low temperatures are not equivalent either in physical or in chemical properties to whole smoke. 488 2~.200~,392 282004392 Subject to Claims of Privilege aud Coufideutiaiity: Produced Pursuant to Court Orders in State of Minnesota, et ai. v. Philip Morris, et al.

COUNCIL STUDIES OF NICOTINE PHARMACOLOGY & quite extensive program of such studies on the pharmacological effects both of smoking and of nicotine has been carried out by the council. These have con- firmed again the very transient nature of such effects, many of which may be considered beneficial. . . 7 |N]one of these studies has established any contribution by nicotine to the causation, aggravation, or precipitation of any cardiovascular disease that Is among the important csuses of mortality. BLOOD FLOW Nicotine has been shown to have effects rather similar to those of light exercise on the work oE the heart. It tends to increase flow of blo~ in the s~el- etal muscles and In the arteries of the heart itself unless these are diseased and too hardened or sclerotic to expand. Flow in the skin may be reduced by nicotine in cold environments, but expanded when external temper- atures are hiqh. While nicotine tends to increase blood flow in the coronary arteries, it is less clear whether the extraction of nutritive substances from the blood is increased correspondingly. NICOTIq~E METABOLISM Extensive council studies have traced the break- down o~ nicotine in the body, the stages by which it is broken down, and shown tha~ it is very rapidly con- vetted into other s~bstances of much lower pharmacol- ogical activity. My thesis in these previous presentations [to the Congress| was that neither tobacco and health research in general, nor that of the Council has established that tobacco use or cigarette smoking in particular is a "major health hazard." 489 2f~200~,393 282004393 Subject to Claln~ of Privilege and Confidentiality: Produced Pursuant to Court Orders in State ofMinnesota~ et al. v. Philip Morris, et a[.

III. Senate ~earings -- Public ~ealth Cigarette Amendment of 1971 -- Consumer Su~commltte o~ Comm. or (1972), statement of Robert C. [This ~ocument in its entirety is included as Exhibit E to this report] NICOTINE DR. ~OCKETT. Since nicotine is a phazmacologlcally active substance many investigators have apparently assume~ that if cigarette smoking does have any tion to the development or precipitation of cardiovas- cular diseases In particular (for that Is where we usually find nicotine under discussion specifically) It must be attributable to the effects of nicotine. This, of course, Is not necessarily true, and the mis- conception is coming to be recognized. The matter is false4 here because hicotlne Is mentioned In S. 1454 as "an incriminated substance." It should be recalled that the 1964 report to the Surgeon General of the Public Health Service di~ not take tb|s position but stated~ "The ~apldlty of degradation to nontoxic meta- ~lites, the results from chronic st~dles on animals, an~ the l~w mortal~ty ratios of pipe and cigar when compare~ with nonsmokers i,dicate that the chronic toxicity of nloo%~ne quantities absorbed from ~oklng sn~ other methods of tobacco use is very low and probably ~oes not represent a significant health problem". Subsequent annual reports by the Surgeon General to Congress entitled "The Health Consequences of Smoking" have mentlone4 many observations of nicotine effects. While these cannot be reviewed critically here because of their number and d~verslty, I sulmult that while some of them raise questions or present possibitities that call for consldeEatlon and further study, repetition and extension, they do not at present amount to any incrimination o~ nicotine, but remain almost wholly in the rea~m of conjecture with respect to human health significance. Many cardiovascular ~iseases such as stroke, angina pectorls, peripheral vascular disease an~ "heart attacks" (myocazdlal infarction) are believed to have their origin in the gradual thickening of the blood vessel walls (atheros~lerosls proceeding to arteriosclerosis) which eventually brings about chronic or sudden restriction 490 2SZ004394 282004394 Subject to Claims of Privilege and Confidentiality: Produced Pursuant to Court Orders in State of Minnesota, et aL v. Philip Morris, et al.