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ABSTRACT
CIGARETTE SMOKING AND PUBLIC POLICY:

A COMPARATIVE STUDY OF GOVERNMENT
AND INTEREST GROUP RESPONSE

BY

Kenneth Michael Friedman

The Surgeon General of the U. 5. Public Health Service avowed: Cigar-
ette smoking is the greatest preventable cause of illness, disability and

Premature death in the country." 1

A growing body of scientific evidence\
has associated cigarette smoking with ill health and premature death. How
have governments responded to this problem? How have economic interests
and health interests responded? How has the economic importance of tobacco
affected government action? 1 . ‘

We consider in this study the response to the smoking-health contro-
versy in three countries: the United States, Great Britain and Canada.‘
we examine the various dimensions of tobacco' s importance including its

r f

cultivation, manufacture, taxation and export. we discuss the awareness

¥ 1 i

of interest groups of the prdblem and their activities designed to influv

ence both government and consumer actions: we also consider the impact of
government structure on government policy.1 In addition, in each country,
we examine the impact of the market structures, competition, and regula-
tory environments in seeking to explain the response of the tobacco indus-

q

try to the controversy.

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Kenneth hichael Friedman

The ability of government to provide for certain kinds of public. '
goods is uncertain, especially when the goal of public actions conflict;
with individual freedom. we have found that in the U.S., Great Britain:
and Canada, national governments have acted both to enlighten cigarett; J
smokers and to protect both children and adults from the health hazards
associated with cigarette smoking. The history of this response has been
largely a history of trying out a series of means to reduce illnesh and
death due to smoking. We have found that representative political bodies
in the U.S., Great Britain and Canada have hesitated to handle this type
of issue, because these cases suggest that these bodies are vulnerable to
pressure from affected economic interests which are decentralised and
economically important in many constituencies.

we have found, in our study, that when government and industry actions
are combined, the responses to the smoking-health controversy in these
three countries have not been very different. Yet, the economic importance
of cigarettes appears crucial. In all three countries different factors
or combinations of factors have inhibited government action.

we have also examined several models of the interest group process
and found that we can best explain what has happened in the smoking-health
area, if we look at these governments as a series of interest groups com-
peting among themselves to control public policies, while maximising their
own interests and those of their client groups.

While we have not formally tested any hypotheses, we have found, in

examining the published and unpublished literature, on smoking and health,

that several factors are crucial in explaining the responses. First, the

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Kenneth Michael Friedman
ground rules established by government define agency responsibility, who
can act, and how they can act in responding to a public problem. Second,
two kinds of competition help us understand both industry and government
response to the controversy: competition between government agencies and
levels of government on the one hand, and competition between companies
for market shares and customers on the other. Finally, we have discovered
that while the image of government as orchestrator of competition between
private interests is a familiar one, much less attention has been paid to
the possible benefits of competition both between and within levels of
government. Regardless of the above, however, the smoking and health

problem remains everywhere far from solution.

1. Harold s. Diehl, Tobacco and Your Health: The Smoking,Controversy
(New York: HeGraw—Uill Book Company, 1969), p. l.

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CIGARETTE SMOKING AND PUBLIC POLICY:
A COMPARATIVE STUDY OF GOVERNMENT
AND INTEREST GROUP RESPONSE

3?
Kenneth Michael Friedman

A DISSERTATION
Submitted to
Michigan State University

in partial fulfillment of the requirements
for the degree of

DOCTOR.0P PHILOSOPHY

Department of Political Science

1973

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Copyright by . , . _
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1973

ACKNOVLEDGMENTS

In, writing and researching this study, Ilwas helped and influenced
by many people who contributed patience, arguent and encouragement. I
cannot begin, to name all] of. the many friends who were of such" tremendous
help to me in my efforts: in East Lansing, Vest Lafayette, Washington,
D.C., Canada and Great Britain. I appreciate their thoughtfulness and
their assistance. , . , ._. J. N .

Standing above all in his influence upon this dissertation was
Professor Rufus F. Drowning: most especially for reviewing, providing
new insights, patience, guidance and friendship, which have taught me
so much. The faculty of Michigan State University provided me with an
excellnt bleflOlMlG: in the problems with which! have had to deal.
Special thanks go to my co_ittee meters, Professor Joseph Schlesinger
ltd Professor Paul Abramson, who provided guidance and thoughtful
criticism, and who were always ready.to help and encourage. I thak
David Bell and David Melts who reviewed a umber of chapters and ’
contributed inciteful counts and Kent Cheboter who acted as an outside
reader. .For their ideas, editorial help, and encouragement I owe more
than gratitude to Mary Bellman and Nancy Bammohd.

I must also thank my colleagues at Purdue for helping no order my
thoughts and responses to the trio on my co-ittee. Frederic Homer
deserves special praise for his continuing encouragement, listening

ability and analytic suggestions. Joseph Haberer, Michael Stohl and

ii

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Frank Lee Wilson provided me with incisive criticisms on critical chap-
ters. The criticism of these readers proved very valuable indeed. While
all of the above scholars aided me in numerous ways to improve this study,
the errors which may remain are my responsibility alone. Thanks also to
Dotty Eberele and Ruthann Maple who typed the final manuscript.

For their assistance in financing part of this study I express my
gratitude to Michigan State University for awarding me a Bio-Medical
Support Grant, and especially Dr. William H. Knisely, Director of the
hstitute for Biology and Medicine at M.S.U., for his early encourage-
ment .d support. Thanks also to Professor Victor Hoar, Director of the
median-American Studies Center at M.S.U., for helping me obtain a
Canadin-Amsricm: Studies Travel Grant which aided my Canadian research.

The staff of the National Clearinghouse for Smoking and Health
deserves special thanks. Richard H. Amacher, Technical Information
Officer, hil Corwim, and Mrs. Mildred H. Ritchie helped make my research
in Washington, D.C. a very pleasurable experience. Miss Macy Galbreath,
Librarian at The Tobacco Institute, Inc., patiently answered my letters
ad provided much useful information.

I knew my paruts, Harry and Rose Friedman, realise how deep is my
sense of gratitude to them both. Finally, my gratitude to my wife Janet

is so great and so hard to express that I can only sydaolise my debt and
my love by dedicating this study, Cigarette Smoking _a_n_d_ Public Policy:

A goggrative Study 53$ Govemt 21 Interest Grog Response, to her.

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TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

WCTIm O O C O O O O C 0 C O O O O O O O O O O O O O O O 0
PART ONE: THE SMOKING-HEALTH CONTIOVERSY IN THE UNITED STATES.

Chapter I: The Economic and Political Importance of Tobacco
1“ ch united St.t¢‘a O O O O O O O O O O O O I O O

A. IatmuCCMaaaaoaaaaaaaa
D. United Stataa Tobacco Agriculture . .
1. Concentration of Tobacco Growers.
2a rab.cco P.“ “IOMt a a o a a
3. 0.5. Govern-ant'a Role in Tobacco Farming
C. Cigarette Manufacturing in the United States.
norw‘CCOTMtimoaaaoaaaaaaaaaa
1. hcrwmtin O O O O O O O O O O O O
2. Federal and State Tobacco Taxation. .
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O O C O
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Chapter II: laaponaa of the 0.8. Tobacco Industry to
Cigarette Snoking-Haalth Controversy . .

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I. Mort of Sciatific Ianaarcb. . . . . . .
C. Industry Public Relationa and Propaganda. .
D. Voluntary Iaduatry Action. . . . . . . . .
3. Tobacco Induatry Divaraification. . . . . .

Chapter III: Tho Independent Regulatory Apache, Voluntary
InductrySalf-lagdatianudlloung. . . . . . .

A. rm!“ It.“ m.1“0 O O 0" O 0' 0" 0' 0“ 0‘ 0‘ 0' O O O O O 0"

I. Salt-muletim of Cigaratta Advartiaing.- .. .- . . . . . . .
C. radaral Co-nicationa Co-iaaion and Cigarette Adurtiaing
D. The Tobacco lnduatry ad The Co-iaaiona. . . . . . . . . .
CbaptarIV: Coagraaainallaopnoa...w... ........
Chapter V: National Health Intaraat Gronpa and both; . . . .

A. htmmtinO O O I. O O O O O O O O O 0 O O 0 O O O I O O O
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w-______

I. A-ricanlledicalAssociation...............
C. Hationsl Tuberculosis end Respiratory.nisease Association
D. ‘III1C.3 C‘ncer S°c1ety s e s e e e e s s e s e e e e e a
3. American Heart Association. . . . . . . . . . . . . . . .
r. Hatisaal Interapncy Council on Seeking and Health. a . -.
Chapter VI: Surgeons General of the Public Health Service
.fl‘ Sinking. e e e e e e e e s s e e e e e e s e
A. l.‘t°‘.‘tt‘ne I e e O a s l. e- e I e e s s s s s e s s s e
I. The "Mic Heslth service and Ciurette Sucking . . . . .
C. I‘lk Fotce for 8.0k1nI‘..d .“1th e s s e n e s e e s e 0

PART TWO: CANADA AND THE SMOKING-HEALTH CONTROVERSY. .

Chapter VII:

A.
I.
c.
D.
Be

l.t30d.¢t10Ie I s e e s
Tobacco Agriculture . .
Tobacco Exports . . . .
Tobacco Manufacturing .
Tobacco Taxation. . . .

O O C O O i
0 O O O Q
0 o O O O
0 O O O O .
O 0 I O O .
o O o O O '-
0 O O O O .
O 0 O O D '
O o O O Q s
I O O O O
o 0 O O O

The Economic Ilportance of Tobacco in Canada.

Chapter VIII: Govern-ental Response to the Hacking-Health.
“CM“y‘n'ch. I I“. a '0 e 5'. e 0‘ s

A.
I.
G.
D.

Canadian Sucking and Health Progran . .
L.‘1.1‘tt'. Effort. e e s e e e e s s e
Isabelle Co-itteeleport . . . . . . .
ln‘Uflt" i.“t‘o. e-e'e‘e e e e e e e e

C C 0 O
‘ e
O

s s e 0

Chapter 112 Canadi- Tobacco Industry' s Response . .

A.
B.
C.

POI-.1 Pl...nt.tion.e e e e e e e e e e e e e :
Industry Response to Cigarette Advertising. . .
Canada's Approach-ts “installealth . . . .

Chapter 3: Canadian Health Interest Groups and Sucking

Ifltt."¢tt¢.s e e e e e s i A e e e e e e s e e e e

A. O O 0
Be CIIIIC‘IGI ”NACIA ”muC1flo‘e d U A e e I e I -s e e.

C. Csnadian Tuberculosis and- lespireuery Disease Association
D. Canadian Cancer Society and the National Cancer Institute .
. .f c.3‘d‘ e e e s e e e e e e e e e e e e e e e e e e e e
I. cmdm an" Pma‘tu O O O O O O O O O O O O O O O O
r. Canaditn Health Interests and Inching . . . . . . . . . .
ran: rants: sans: 221221! sun In: snoxrso-nzAnru oosrnovnisr
Chapter II: 2.5.... and the British Econosy. . . . . . . . .

A.

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O I O O O I O O O O I I O O O O O O C O C C InczjjUbO-ant CA

 

B.
C.
D.

Chapter XII:

A.
3.
Ce
D.
E.
F.

Chapter XIII:

A.
3.
Ce
D.
3.

PART FOUR:

Chapter XIV:

A.
B.

0..

Tobacco Manufacturing . . . . . . . . . . . . . . . . . .
British Cigarette and Tobacco Taxation. . . . . . . . . .
Tobacco Industry Concentration. . . . . . . . . . . . . .

British Smoking and Health Program,

and Interest Group Efforts. . . . .

Intmdmtim O O O O O O O O O 0 O O O
Governmental Efforts. . . . . . . . .
Response to Cigasatte Advertising . .
The Verbal as: of Sir George Godber .

The Royal College of Physicians of London
’0. t.cr1pt O O O O O O O O O O O O O O O 0

Introduction. . . . . . .
Diversification . .‘. . .
Industry Tactics. . . . .
Industry Research Efforts
“3111.10“. 0 e o _e e e s

o . :

cmm'rm PERSPECTIVES. . .

Disutility, and Political

Introduction. . . . . . .
Aggregate Indicators. . .
Consumption and Politics.
United States Consumption

The British TObacco Industry's

Conparative Cigarette Consumption:
Implications. . .

3. Canadian Consumption. . .

F. Consumption in Great Britain
G.Gonc1usions......'..

Chapter xi: Cigarette Smoking and Public Policy.
A. IntrOduCtima‘; s e s a Is a e e e s s s s a e

B.

c“.

D.

Governmental Response . . . . . . . . . . . .

and

Legislative

Smoking

Utility,

Response.

1. The Goals of Government Action. . . . . . . . .

2. The Dimensions of Public Policy Alternatives and Actions.
3. Health-Related Responses of Government and Industry

4. Factors Affecting Government Policy . . . . . . . .

Economic Importance . . . . . . . . . . . . . . . . . .

1.
2.

Tab.cc° and Palitics. O O O O O O O O O I O O O O O
Hhrket Structure and Industry Response. . . . . . .

Smoking and Health as an Issue Area . . . . . . . . . .

1. Introduction: Models of the Interest Group Process
and the Role of Government. . . . . .

2.flRefereeHod¢13...........

3. 'Vector-Sum‘Model. . . . . . . . . .

4. Interest Group Liberalisn Model . .

5. Competitive Government. . . . . . .

vi

0 O O O O O O C . O

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LIST OF TABLES

Table

Chapter I

1.

0.8. Tobacco Acreage, Production, and Value 1949-53
to 19“-68 I I I I I I I I I I I I I I I I I I I I I I I

 

 

2. Cigarette Tobaccos. . . . . . . . . . . . . . . . . . . . . .
3. Recent Cigarette Tobaccos Data. . . . . . . . . . . . . . . J
4. Tobacco Farms and Pare Families in the United States

by State 1969 and 1971. . . . . . . . . . . . . . . . . . . .
5. Commercial Tobacco Parms: 1964 . . . . . . . . . . . . . . .
6. Cash Receipts from Tobacco as a Percentage of Total Cash

Receipts from all Parm.Commodities 1952-56 to 1967-71 . . . .
7. Congressional Districts in Which There were 2,700 or More

Commercial Tobacco Perms in 1963. . . . . . . . . . . . . . .
8. Tobacco Price Support Loans, Commodity Credit

Corporation, Crop Years, 1950-69. . . . . . . . . . . . . . J
9. Tobaccos' Contributions to State Economies. . . . . . . . . .
10. Tobaccos' Contribution to the National Econony. . . . . . . .
11. Tobacco Industry Contribution to the U.S. Economy . . . . . J
12. Internal Revenue Collections and Share Prom Tobacco

Perms, Fiscal Years, 1940-70. . . . . . . . . . . . . . . . .
13. Tobacco Exports . . . . . . . . . . . . . . . . . . . . . . .
14. Value of Cigarette Exports. . . . . . . . . . . . . . . . . .
15. Public Law 480: 'Progrsm Operation Costs. . . . . . . . . . J
16. CCC Program Costs . . . . . . . . . . . . . . . . . . . . . .
Chapter II
1. Cigarettes -- Estimated Output of Nonfilter and

Piltertip 1950-71 . . . . . . . . . . . . . . . . . . . . . .
2. Men-Tobacco Revenues and Earnings . . . . . . . . . . . . . .
Chapter VII
1. Acreage, Production and Value of Leaf Tobacco Crop by

5-Year Averages 1949-68 and Annually 1965-69. . . . . . . . .
2. Earn Cash Receipts from Farming Operations by Province. . . .
3. Provincial Tobacco Production and Value . . .‘. . . . . . . .
4. Value of Export Trade Tobacco and Products Export Weight

of Redried Leaf and Tobacco as a Percentage of Total Exports.
5. Contribution of Tobacco Manufacturing To Total Manufacturing

inont‘domdquhc1961-1966eeeee ee eeeeee es

vii

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Table Page

6. Canadian Tobacco Manufacturing. . . . . . . . . . . . . . . . 211
7. Per cent of Diversification . . . . . . . . . . . . . . . . . 213
8. Federal Government Tobacco Taxation . . . . . . . . . . . . . 216
9. Provincial Tobacco Taxation in Canada . . . . . . . . . . . . 218

Chapter XI

15" Great Britain: Value of Tobacco Imports and Exports
1958-1968sssosssessssssesssssesseee297
2. British Tobacco Taxation. . . . . . . . . . . . . . . . . . . 300

Chapter x11

1. Ministry of Health Expenditures en Anti-Snoking Advertising . 309
2. British Expenditure on Sales Proaotion of Cigarettes, ~
Tobaccos, and Cigars, 1955-1968 . . . . . . . . . . . . . . . 313

Chapter XIV

1. Aggregate Cigarette Consueption and Per Capita Consumption

for the United States, Canada and Great Britain 1950-1971 . . 360
2. Filter Tip Cigarettes as a Percentage of Total Output

md/Or 8‘1.. 1959-19700 I I I I I I I I I I I I I I I I I I I 362
3. what would you say is the possibility that five years fro-

nov you will be a cigarette sucker? . . . . . . . . . . . . 367
6. Canadian Cigarette Seoking. . . . . . . . . . . . . . . . . . 367

Chapter XV

1. Dimensions of Govern-ental Response to the Smoking-Health
mtrmr" I I I I I I I I I I I I I I I I I I I I I I I I I 383
2. Tobacco Industry Responses Potentially Favorable to
Health in the Sinking-Health Controversy. . . . . . . . . . . 384

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LIST OF FIGURES

Figure Page
Chapter Ix
1. National Cancer Institute of Canada - Canadian Tobacco

Industry Grants to Support Research Related to Lung
meet. 0 O O O O O O O 0 O O O O O O O O 0 O 0 o 0 O 0 O o O 263

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INTRODUCTION

No single factor kills so many Americans as cigarette smoking . . .
Bullets, germs and viruses are killers; but for Americans, ciga-
rettes are more deadly than any of them. No single known lethal
agent is as deadly as the cigarette. 1

Cigarette smoking is, without question, the greatest single public
health problem this nation has ever faced.

The Advisory Committee of the Surgeon General of the Public Health
Service concluded in its 1966 report Smoking and Health that "cigarette
smoking is a health problem of sufficient importance in the United States
to warrant appropriate remedial action." Surgeon General William Stewart
elaborated at the werld Conference on Smoking and Health in 1967: I

I am convinced that, in one important dimension our controversy

is no longer controversial. The proposition that cigarette smoking

is hazardous to human health long ago passed the realm of possi-

bility. It has new goes beyond the probable, to the point of

demonstrable fact. 3

A growing body of scientific evidence has associated cigarette smoking
with ill health and premature death. This evidence has led national health
interest groups (e.g. the American Cancer Society), and government health
program administrators in several countries to demand governmental action
to change consumer cigarette smoking habits. How do governments respond
to a problem of this magnitude? How do the dominant social and economic
forces in a nation interact to shape perceptions of the problem and of
solutions to it? What policies shsu'promise? Which appear to be failing?

These are some of the questions under scrutiny in this study of political

demand, government response, and policy impact in three countries -- the

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United States, Canada, and Great Britain.

The cigarette smokingrhealth controversy is not a simple medical,
problem. Government actions 2- through direct regulation of the tobacco
industry or through public information programs -- or interactions influ-
ence consumer behavior.‘ Obviously, these actions may, as an unintended
consequence, conflict with the economic interests of the cigarette indus-
try. Government and private health organisation warnings have been
countered by tobacco industry advertising; scientific research has been
denied and criticised by industry spokesmen who often have refused to
aeknesledge that a real problemexists.

Policy making in this area presents the pervasive problem Of Western
democracies of how to rationalize an economic system based on profits with
a larger public interest when the two come into conflict. It also raises
the question of how political systems respond to scientific problems which
affect the public where questions of causality are involved. What happens
whes.this type of problem, faced by many people, conflicts with strong.
economic interests? How does the economic importance of tobacco affect
government action on smoking and health? He will consider the various
dimensions of tobaccofs importance including tobacco growing, tobacco,
Isnsfacturisg, government_taa revenues and exports in an attempt to examine
the inpact of this importance on public policy. we shall see that govern-
ment policy in this area has been a function of an_enormous variety of
factors. And,.consuner reaction to the seeking-health controversy has
steeped from an equally wide universs.of influences.

An analytic framework has_been adopted to simplify the wide range of

considerations relevant to the study of public smoking-health policy. This

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Ira-swori will elucidate ole-outs of the real world which have played an
tlportant role in govern-ant policy creation and effect. Ihile*ws'do not
test sny theory, the sodcl we suggest nsy be useful in deveIOping theory
by suggesting hypotheses which say eventually be testable. Sons of the'
variables thst are suggested are operational, but sany are not nsasnrable
st appropriste‘Ieasures'csnnot he obtained.‘ we do eta-ins the effects of
interest groups on public policy and briefly to'diséuss the apparent
effects of policy upon behavior. '

the listing prODlsl‘aid its solutions culprise a network of behavior
is three classes:

1.’ the strategies of health interest groups, govern-sat health
adninistrators and tobacco corporations intended to shape
govern-est policies, ,

2. -gossrsssnt policy. and

3. cigarette consnaption= “
so will discuss actions within and Setwoen these classes of behavior. We
will ens-ins the actions of the actors and pinpoint sons of the inter-
relationships between thss.

(1) Interest Group Strategigg,

In considering the seeking-health controversy is the 0.8., Great
lritsin and Canada,'we will ens-ins the sequence of swonts, leading fro-
health and'econosic interest groups' awareness of the problss to their
hcttvities designed'to taxis-see both gators-Int sad consussr attioss.

Is shall‘try to detsrliss has interest groups attespt to influence govern-
ssnt sctis‘n. interest groups seen to direct their srgsnests and efforts

to the cespsssnt of govern-estisset syspsrhstic to their csuse, which

brings us to the question of how govern-ant action is affected by the

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structure of government. A federal system with sultiple pressure points
lay provide more possibilities for action and influence than a unitary
governmental system. One hypothesis which we will examine is that the
more decentralised the government structure, the more diffuse the result-
ing government actions. The uncertainties created for industry in this
type of situation appear to result in a less cooperative industry
strategy. Industry strategies vary in the degree of resistance and coop-
eration.which. in turn. may shape government policy and ultimately, the
rats and health consequences of cigarette smoking. Resistance and cooper-
ation by the tobacco industry appear to be based upon their perception
of government responsibility in ameliorating any negative consequences
of government action, through gradual action, subsidy or benign neglect.
we will examine the apparent impact of these three countries' narket
structures and conpetition on the willingness of tobacco companies coop-
erate with each other, and to direct. linit, or prevent government
involvement.

The variability of health interest group strategies which attenpt
to influence consumer behavior will be exasined cooperatively over time.
In addition. the cross-national diffusion of particular proposals for
government action and scientific research will be considered. ,The
develop-eat of coalitions of these health interest groups will be traced,
when possible, to atteapt to determine the conditions needed for interest
groups to spur new government actions. One preposition that will be
considered is that the effectiveness of health interest groups in obtain-

ing government action depends upon their unity in demanding such action.

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detsnise similarities and differences ssong countries and to discuss
hes these strategies hsye affected governsnt policy). One hypothesis
slick us will explore is that the tobacco isdustry seeks to prevent
governs-t regoletizoe lly islantarily cooperating with the govern-sat.
(2) Covert-lent Policy

Political scientists have often argued that differences in the -
for-s1 30mm structmrnf different countries lead somehow to
different types of public policy; Hennessey noted that "slthough these
forsal structures probably do asks 1 difference it .is necessary t_o_
255m 3133; _:_l_t_ is about these structures which brings about vsriation
is public policy." ‘

they set, ‘esd how they ect.

Thus, we will att-pt to focus on who acts, why

Variations in public policy crnu-nstisnslly ney help to sensitize
as to vsriebIes that explain policy decisions. Frauen hes phrased the~
basic questisntsmsdmt differently: "Do different kinds of orgsnisa-
tiossl structure facilitate or. i-pede.1:he: hssdling of different kinds “
of policies?" 5 Unfortunately. the dimensions on which one should ‘
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clesr is thsliteratnrs. Salisbury hes mated, inssslinim litmtsrs-
in thefield; thst "the literature contains s considerable shopping list
of typologies specifically designed for categorizing the content of policy
outputs." 6 No canon 'set of cunts or seassres is accepted by
practitioners in the field, end as we shall see, lost of these concepts

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The smoking-health controversy is typical of many problems presently
facing governments, where governments are called upon to act on the
basis of scientific evidence against important economic interests in
which the goals and role of government action are diffuse and soot. In
this sense, our present study may provide some insights into governmental
response in other policy areas which we do not directly touch upon.

Policy studies can be comparative in a number of different respects:

1. by exemining different countries,

2. by examining different policy issues within one country, or

3. by examining one policy area or issue over time.

We will limit ourselves in this study to making comparisons‘between
countries and to examining a single issue over time.

The breadth of government policy relating to the smoking-health
controversy will be considered, including both actions that oppose and
those which favor the tdbacco industry and cigarette consumption. Once
again we hypothesize that the structure of government plays a consider‘
'able role in policy outputs as well as in the level and depth of govern-
mental consideration of the problem. Thus, more centralized systems may
‘1end themselves to broader and deeper consideration of the problem, while
'less centralized systems may lead to more rapid, specialized considera-
tions of limited portions of the problem.

In considering governmental response, ve‘will‘discuss three theories
of the relationship between interest groups and government:

. 1. 'the "referee" theory which "asserts that the role of the central

government is to lay down ground rules for conflict and competi-
tion among private associations;"

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2. the "vector-sum" theory 8 that Congress is the focal point for
the pressures which are exerted by interested groups and Congress
combines them into a single social decision; and '

3. governments can be examined as a collection of interest groups
competing among themselves to solve public problems while

. Delimizing their client groups.
we will explore the utility of the first two approaches in explaining
linking-health policy in the U.S., Great Britain and Canada, and using
the third approach, present an alternative focus which may be useful in
addition to the first.two.
{3): Cigarette Consumption-.

In considering the tltslts of public policy and private economic
health interest group effects, we will examine the response of cigarette
smokers. we will briefly examine the cross-national changes over time
in the level of cigarette consumption, both absolute and per capita, and
variations in consumer preference for particular types of cigarettes
(i.e., filter and non-filter brands).

' Consumption is a broad indicatbr of the effectiveness or failure of
health interest group and governmental actions in influencing cigarette
smoker behavior. One preposition which we will examine is that the
level of filter cigarette consumption increased sharply with the aware-
ness of the cigarette smofiing poblic‘of the smofiing-health problem.
Another is that centralised government consideration of the problem and
unified action results in grestcr impact upon cigarette consumption than
decentralised response. we will examine these aggregate indicators of
cigarette consumption and criticize their utility in'light of the smoking-
health controversy in the hope that better indicators can be developed.

In short, in the present study we will consider, in the first stage

of analysis, the impact on governmental policy of key political forces:

 

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the actions of health interest groups, the economic interests engaged in
the growing of tobacco, and the strategies of the tobacco industry. In
the second stage of analysis, we will look into trends in smoking, their
possible health significance, and the possible impact of government
policies, health interest group actions, and tobacco industry tactics
on them. (see diagram below)

In comparatively analyzing the smoking-health controversy in three
countries we hope to focus on those factors in each country which have
most affected public policy. We do so in the hope that better (or at

least more considered) public policy will result.

Diagram of the Two Stages of Analysis

actions of heal interest groups the economic importance and
tactics of the tobacco industry

government smokig€:::::::/;olicy ¢////////
Vb

smoker behavior: level and type of cigarette consumption

 

 

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1.

2.

3.

7.

{outnotes ~fi1ntrodugtion

Harold S. Diehl, Tobacco and Your Health: The Smoking_Controversy
(New York: HcGraw Hill, 1969), p. 1.

 

Ibid. , p. 2.

world Conference on Smoking and Health: A Summary of the Proceed-
ings, September, 1967, p. 118.

~ T.H. Bennsssey, "The Comparative Analysis of Public Policy: Some

Theoretical and Methodological Problems," unpublished paper, p. 20
(1969).

Lewis A. Prcman, Jr., "The Categorisation of Policy Contents,” in
Political Science and Publig,Poligz;, Austin Rannsy, editor (Chicago:
.Harkham Publishing Company, 1968), p. 66.

Robert 8. Salisbury, "The Analysis of Public Policy: A.Search for
Theories and Roles," in Austin lanney, editor, Political Science

and Public Policy (Chicago: MarkhamuPublishing Company, 1968),

p. 155.

Robert Paul Holff, "Beyond Tolerance," in Robert Paul Wolff, Barring-
ton floors, Jr.’ and Herbert Hercuse, A Critigue 93 Pure Tolerance
(Boston: Beacon Press, 1965), p. 11.

Ibid.

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PART as!

1‘ ' -" :

THE SPRING-HEALTH CMTROVBRSY IN THE UNITED STATES

10

I“. 710 T FIN!

BETATB CETI'V‘ZU EEHT MI YZ‘IHII‘JCHT'KOT) HTJAKii-DVIHOMZ HUT

CI

Chapte r;; The Economic and Political Deportance
fT _3______Tbacco in the United States .

[3

 

A. Introduction '
‘ In the following sections we will examine the economic reasons for
predicting that tobacco would be politically influential in the United
States. Duh tin-sin and the structure of the tobacco indestry facili-
tate its peliticsl influence. Cigarette mmmmfactsting and.tshacos grow-
ing are concentrated in a lflsited number of congressional districts in
only a few states. Under the basic assumption of rational action by
political leaders, we would expect representatives from these districts
had states to defend their constituents' interests and defend the tobacco
industry against attack. 0n the other hand, cigarette smokers, found in
every-district.-eonstiauts~a.siaesb1eruntimg1b1oewwhnrmmg’mpg-semanti-
smoking effects. In:districts ‘IP'.‘Ihlch.L.Ilt‘.'rh..leh<*l.-. isrnot
economically salient, we would expect representatives, acting rationally,
to avoid actions which might antagonize and alienate their cigarette
‘smoking constituents.
. It is the concentration of tobacco' s economic importance which has
increased the obstacles to goyernmenta1 regulation of cigarette smoking
and which will increase the hardships that result from government
policies which lead to reduced cigarette consumption. The congressional
committee system‘snd the seniority rule.hswe resulted in a structural
arrangement which allows a strong minority to exert considerable

influence, although the actual significance of seniority has been

11

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"J

12

challenged. 1 laps-natives of ”teeming ad manufacturing
districtshsvs forssd aschamimority and base to a eouidsuuseatest
either delayed or blocked anti-asking legislation.
; Senator lobsrt Kennedy,- in his address to the Usrld Conference on
fishing and Isalth assent-barn, 1167., suggested that the political
fiesta! the tobacco industry issdinsct usultof itseossusic-powsr.
ls “tinned: "
Cigarettes meld have been banned years ago were it not for the
tremendous economic power of their producers. If the cigarette
industry's economic power».- were as minieeule as that of the
marihuana industry, cigarettes would surely be illegal now and
their sale sweet to severe penalty as a-health haaard.
t Candi. earn-snug ee-ittee studyiq their-obi.” similarly oss-
clshd that "if it more not for the economic csqlaxities of the problem,

thseushnswsnldh’ebesnsctedfioamschss-srthamitwa‘s.“3

Manned: :
Mmhnflstiouthsttfeigsmmefoodesdrug~
or being newly marketed, their sale would have to be prohibited
or strongly regulated . the basis of amid-us mow available,
the known constituents of the smoke and the express purpose for
which they are sold. 4
It ”Matti. ens tab “Measures.

"tin, “Mia-“ ton-ins that the possible

“in may W and asphsin ch ~mstshlisbd system

sf maladies slut a main uill affect. Industry officials

were that hasn‘t disses - dismount a m tobacco

”audio-flannel. flames implify this

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13

The «onosic inortance of tobacco in the United States is
asidsmcod imifesr principal ways.‘ Pirst, tobacco basrbesn as: insrtant
scores of income for sun 591,600 farm families. on 373,700 farms that
produce a yearly crop valued in excess of 1.3 billion dollars. 5
Tobacco‘hss been the fourth largest cash crop in the United States,
sneebded in inortasce only by cars, soybeans, ad wheat, and ice vital

6 Cigasette-tobsccos- conniso over 90 per
7

sector of tbe darn econ-y.
use of all tobacco cash receipts.

loosed, the cigarette emergence. industry any. eue- 35 the»
send people with an‘ssusl payroll in excess. of 200 million dollars.
Tobacco salesis 1972 were over 12 billion dollars, and tobacco cm
predate ensued-‘06“ million 19.21971.

turn, tax revenues frsn'tobscco'bevs increased (on all locales!
government) 156 perlcsst'frsm as average of $1.080 billion-between 1950
helm—It. $5.1 billion. in‘fiscsl 1972. Ivory‘seeee' in the .donomsw
tans cigarettes te‘raise seeded pdlic revesmsspesa' total stats ciga-
rette taxation rapidly in ups-caching federal cigarette tax receipts.

Ideally, tobacco enpsrcs been contributed substantially to: the 0.8. 's
u... u payee-evens ether cs-aries; re- Unitsd'ststss losds um
isrid in tobacco exports, ad tobacco has been an inortant export
co-odity since tbs only 17th my. I

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A stats d'IIIsiprscnlIWImsw exists in wbiab'botborsnp the
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15

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grout-1a Ioat at loath Baaoliaa aad 1.!‘OLOUCUC30‘ Vitgtlta.,39uth

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16

Carolina and Georgia; light air-cured tobaccos are produced in most of
Kentucky and a significant area of Tennessee and Maryland.

Tables 1, 2, and 3 give a brief overview of some of the general
changes in tobacco production statistics between 1949-53 and 1972. These
show national tobacco acreage, yield per acre, production and crap value
by crop years. They include five year averages fron l94g-68 for those
classes of tobacco used in cigarette production, as well as total
tobacco production and sore recent statistics from 1969-72 for flue-
cured, barley and Maryland tobacco acreage, yield and production. Hence-
forth when we refer to agricultural aspects of the economy of tobacco,
this fact should be.kept in wind. Although sore detailed breakdowns by
the type of tobacco are sonetines useful, little distinction has been
Isle by either side in the shaking-health controversy.

Tobacco acreage has declined substantially in the past twenty years.
Sharply increased yields per acre, however, have caused total production
figures 00 decline less sharply. 'Total production of all cigarette
tobacco‘hes declined fron the 1969-53 to 1960-68 average (as well as
sore recently) caused in part by the increasing popularity of filter-tip
cigarettes and the sore recsnt popularity of sins cigarettes, bath of
which use less tobacco Eben non-filtered and hing-sired varieties. 9

Increasing cigarette tobacco yields during this sane period have
been acconpanied by a decline in the quality of tobacco produced.
further-re, this decline has Hie sales to— Gnostic and foreign buyers
less difficult and has forced Eln:gownrnllnt to buy tebscee under the

1° measure. discussed 1.; sum. later.

price w progru.
Recent revised price support legislation has attelpted to control

tobacco yields as well as acreage in order to increase the quality of

61

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17

Table 1

(LS. Tobacco Acreage, Production, and Value 1949-53 to 1964-68.

Total . I Cigarette
Cigarette Total . Tobaccoa
Tobaccoa Tobacco of Total
Acreage
1949-53 ”1,516,000 1,681,360 90.1
1 1954-58 1,213,360 1,345,220 . 90.1
1959-63 1,058,710 , 1,173,700 90.2
1964-68 881,130 .
X.cbange 1949-53 - 1964968 -4l.8
Production (lba.)' ‘
1949-53- 1,875,566 2,129,109 88.0
‘ 1954-58 1,811,003 , ~ 2,003,221 . 90.4
. 1959-63 1,909,257 2,092,113 ~91.2
1964-68 1,775,666
2 change 1949-53 - 1964-68. - 5.3
Crop Value ‘ “—
-11949-53 . $914,067 $1,069,156 91.1
;.1954958 999,418 ' 1,091,538 - . 91.5
1 1959-63 1,156,491 1,252,536 92.3
' 1964-68 1,155,169 - 1,275,200 90.6
. 2 change 1949-53 - 1964-68 +18.6 +19.3

I—I - ‘ ‘-

a. Piguree have been calculated fro. data available in Tobacco Situation
and.Annual lepgrt‘gg_Tobacco'Stetietica, both publiahed by the U.S.D.A. For detaile
on tobacco acreage, yield per acre, pounde produced, price per pound and value of
production eee U.S.D.A., Statistical Reporting Service, Crop Reporting Service,

___’ .1123_and Claaa Eetiaatea,
1919-1965 (Haahington: Scatietical Bulletin— No. 454, June, 1970).

VI

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18

Table 2
Cigarette Tobacco: 8

Yield per acre

Average Drice Crop
Per Lb. to Production Value
‘ Acreage Growere lbe. ($1,000)
Flue-cured (Types 11-14) - ‘ _
1949-53 1,027,400 1,257 51.5 1,292,406 666,625
1954-58 3 842,060 1,509 . 54.1 1,255,205 ' 675,201
1959-63 ..701,570 1,815 60.2 1,273,831 ,767,067
' 1964-68 588,030 1,967 64.1 1,160,056 740,406
‘2 60.636 1929-53 - 1964-68 . -42.8 1+56.4 +24.5 -10.2 +11.1
Barley (Type 31) _ ,
1949-53 439,000 1,316 49.6 578,439 _287,531
1954-58 329,000 1,579 59.7 519,524. 306,369
h 1959-63 Y 318,546 1,870 ~62.2 599,470 ,368,830
1964-68 ‘ 259,300 2,244 67.9 579,353 392,447
z'chnngé 1949-53 -:1964-68 -40.9 y70.5 +36.9 +.15 +36.5
Maryland (Typc 32)
1949-53 49,600 823 48.9 40,721 19,911
1954-58 42,300 868 50.0 36,274 17,848
_ 1959-63 38,600 933 57.3 35,956 20,594
1964-68 33,800 1,072 61.7 36,257 22,307
2 change 1949-53 - 1964-68 -31.9 <+30.2 -+26.2 -11.0 +12.0

a. United States Department of Agriculture, Conan-er and
Marketing Service, Annual Report gg_Tobacco Statistics - 1969 (Hashington,

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19

Table 3

Recent Cigarette Tobaccos Data a

Production
Acreage Yield lbs.
(000) per acre (million)
!l-e-cured (typea 11-14)
1969 576.8 1,825 1,052.8
1970 584.1 2,042 1,178.1
1971 525.8 2,052 1,076.3
1972 518.6 1,949 1,021.7

Average 1969-72 551.3 1,964.5 1,082.2

Burley (type 31)

1969 237.7 2,488 591.4
1970 216.4 2,590 560.5
1971 213.5 2,213 472.6

, 1972 V 228.5 2,541 580.7

Average 1969-72 224.0 2,458 551.3

Maryland (type 32)

" 1969 28.0 1,000 28.0
1’70 27.0 1,090 29.4
1971 27.0 1,040 28.1
1972 26.0 950 24.7

Average 1969-72 27.0 1,020 27.55

Recent ieeuee of Tobacco Situation.

r“

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20

tobacco grown. Proponents of thia legialation have argued that it will
“ 11

1
J

help increaae Anerican tobacco leaf exporta.
Table 1 aleo indicates that tobacco crop values have increaaed only
19 per cent iron the 1949-51 avera;e of $1.069 billion to an avera;e of -.
$1.275 billion between 1964-68. In 1971 caab receipta tron tobacco were
$1.326 billion. Thun, recent increaeea in the value of tobacco produc-.
tion have been well below knonetary inflation durin; the cane tine period.
the value of cigarette tobaccoa haa increaaed tron‘an average of $974 .
nillion between 1949-53 to. an average of $1.155 billion in 1964-68. In
etable dollara the dollar value of cigarette tobaccoa haa declined tron
necenber, 1958 to Dec-beg 1968. ‘Price chance for nejor ;roupa of tbe
conauer price index increaaed 22.7 per cent while ’totel tobacco crop

1?_ Ci;arette

value hee only. incgeaeed 19.3 Per cent ‘durin; 1949-68.
tobaccoe have been an excellent caah crop producing a bi;h caab ‘yield ~.
per cultivated "acre. lecauae of the high profita nany. anall tar-era are
enable’and. unvillin; to enitch toleaa profitable ‘crope, and are ready

to £1;ht politically 'a;ainat what they perceive aa unwarranted goverment
‘ 13 i i ' ‘

‘ )

haraeenent. :‘rbe U.8.D.A. atatea: .

Tobacco reneina one of the few cropa that can atill utilize
fanily labor and provide a reaaonable incone on a anall fern.
l'hua it repreunta the atron;eat baation of the dininiahin;
tern fanily.

The! eubetentiel decline in tobacco acreaie rhaa .;iven .neny tobacco
far-era the opportunity to diveraicy. Anon; nany of the younger farnera,
diveraification in“ the watchvord of the day. :Hhile 'atill. relyin; for the
finent on“ tobacco'a relatively hi;h return per acre, they are raiain;
6ther cropa In" 1196.66.91.73” Declinin; tobacco acreage probably will:
adult in further divereification and a neakenin; in the inportance ‘of

tobacco .

OS

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21

, 1. Concentration _o__f_ Tobncco Growera

The concentration of tobacco growero in a relatively few atatea
enhancoe their political inf luenco. The following oection diacuoooo this
concentration and exaninee ite political inportance. The data prooonted
ohow thia concentration endpoint to none of the problono in neuuring
it. We will oxanioe political activity in the next “tor. - Gaerolly,
there one iodicotione that tobocco far-inn in beconing a leo- .ioeertant
oource of incone in tobacco growing otatoa. It appeare that the nunber
of tobacco for-e ia declining, but loaa rapidly than the decline in total
far-o. Thin decline in due in part to the hull coal: yield per onto and
to the difficultiee involved in large-ecale tobacco forning.
‘ . Toboeco ia grown in eighteen different otatea, while cigarette to-
been in grown in thirteen etateo. , Tobacco growere (and: especially
cigarette tobacco groworo) are concentrated in a enall umber of atatee
which produce o nojeoity of herican tobacco. Table” lo indicatee the
total nonboa of tobacco far-e in cigarette tobacco producing etatee ea
well an the nuber of f-ilieo aoaocioted with tobocco far-a in theeo
atatoe in 1969 and 1971. Data on other non-cigarette tobacco producing
etatee io aloo Met
. lithe}! of: the nflnr of tnbocco fan in tho United Staten vary.
The 1959 __Cen_e_t_|_o_ _o_f_ gricnlture reported that a total of 1.17.000 farne

16

produced eone tobacco during 1959. The Co-ittoe of Gronera of 0.8.

Tobacco citing 0.8.0.1. fignroo (they do not footnote the exact eonrco)
oetinatod that there were 525,000 tobacco farna in 22 atatoe in 1969. 17
anthernore, while neny farna produce tobacco, nany prodneo extr-ely

nall quantitioa. Another and probably better nooonre of the n-ber

21"913 099r‘nf 3o n013n1inofinnfl .1

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195mm“ 9&3 3sfi3 a159qq5 31 .893838 gniwo1g 0995d03 n1 9mo9n1 30 991uoe
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gn19u591q 0995d93 933915519-non 19d30 no SJBQ .1191 has 9691 at 393538
.b93nsas1q 0818 at 893838

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e

22

Tabla 4

Tobacco Par-a and Para Falilica in the
~-Un1tod State: by State 1969 and 1971 I

- 'qubar of tililioc
Aaaociatcd with
Tobacco Par-a

Nu-bcr of Tobacco
Producing Par-a

Stats (cash receipta
‘fron tobacco, 1971.

 

 

 

ailliona ogrdollara) fi_1969 19711 _ 1298 _fif 1971
North Carolina (562) 132,200 80,000 186,000 132,000
Kaatucky (271) ‘ ' ' 150,500 ‘135,000 " 169,000 157,000

South Carolina (101) ‘23,600 - -‘13,0003i ‘33,000 33,000-
vxnganxa.(90) 45,400 ;, 28,000 51,000 ‘48,000

Tcnncaaac (76) 96,800 74,000 97,000 96,000
Georgia (92) 25,700 10,000 31,000 30,000
Florida (27)= “ 6,100“‘ 2,300? 8,500 f 10,000

Haul-d (23) 5.800 3,000 3 0,000 6,000
Othera: Indiana, 37,400 28,800 00.900 80,770
Hiaaouri, 0h10,'flbat - » ~ ”

_ Virginia, Connecticut,

“Pcnnay1vania,'flaaaa-* ‘

’ cbnactts, Uiaconain (86) _

Total. (1,328) ' " ' ' 534,500 '373,700 624,400 591,100

. , a 1
1 a . f‘ _ ' ‘ - J O1
G. é M“ i r ‘I- l -9 i ' .40 i F

"“‘ 1"Tobacco in tbd‘NationhI Iconoay, ”:CQgggpaaional Iacord,
_Jannary 11: 1973, p. 8072. U. S. D.A., Tobacco Diviaioa, "Tobacco in
the National Scam} June, 1970, p. 1. Catacomb“) - -' ~

’ I
1‘33'0. _: ‘1‘: ,r‘. 1. 1= ,‘:r

FQIIEmLT 30

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23

of ocononically viablo tobacco far-o (oxclnding part-rotironont, part-
tino and inatitntional fauna) ia tho porcontago of con-orcial 18 tobacco
fauna in oach atato. Iablo 5 proaonto thoao data naing 196‘ fignroa.
'l'ho data chow that tobacco roproaonta 1a largo porcontago of co-orcial
far-o in tobacco growing atatoa. Tho nunbor of con-orcial far-o ia
anbotantially loaa than tho total.lnlbor*ot_auch lac-o tnditttnd-pro-
vionaly. . 1 I
Thoao'fivo noat inportant tobacco atatoa havo followoo tho nation-
wido doclino in tho nubor of far-o and torn acroago harrootod. Tho
gonoral downlopnant pattern of nrbaniaation and indoctrialiaation hao
bocono ovidont in tho "low South," and toning hao bocono loaa inortant
in tho oxpanding oconony. -- .5
Iogardloao of tho oatinotoa, two facta aro inportant. rirat, tobacco
“to toovor lama-tot total caahnoooipto fnonall tornoon-v
nditioa in only nix atatoa. Socond. with tho doclino in total tobacco
acroago, thorn hao boon a doclino in tho nnnbor of tobacco farno and in
tho anonnt of tobacco torn labor. Thia point will bo diacnaaod lator.
Tabla 26 indicatoa tho inortnco of tobacco growing aa a porcontago
of total cooh rocoipta tron all torn cCoditioa botwoon 1952-71.
tobacco'a inportanco varioo in tho oightoon atatoa that prodnco tobacco,
fr- .3 porcont in Hiaaonri in 1971 to 36.8 pot-cont in North Carolina in
tho aano yoar. Only fiwo atatoa rocoivo owor 10 porcont of thoir total
farn o‘cdity caah rocoipta fr. cigarotto tobacco. Thooo atatoa aro
lorth Carolina, lontncky. South Carolina, Virginia and Tonnoaaoo. llorida,
Ohio, lndiana,iliaaonri and float Virginia rocoivo loaa than 2.5 porcont.
In all atatoa, (oxcopt thooo prodncing non-cigarotto tobaccoa)

tobacco hao doclinod in inortanco or hao ronoinod atablo ainco tho 1961-65

CS

’stq ,3nsr911J31~3150 gnibulors) am1s} 0935403 sidva {[1531m0c039 30
Uganda: 81 13E3190x03 30 Gcfi3n9319q ed) 31 (axis) Isnoljujljanl ban on}:
.aaxugii hofl guiau 8355 93943 BJHJBSYQ E 9156? . 3838 does at am1sl
islozsmnoo 30 sxnjnaoieq 93151 5 aznoasxqqx oassdoj 35d: woda ajsb 9dT
at 20151 151319mm03 i0 10dwrn on? .893338 gnzwoxa ooondoj n1 cm1£l
~91q bujsoEbnl amtsi doua 30 Isdnun 1530) 9d: and: 0891 (11511n332dua
.Eiauoiv

~nckjsn 9d: bsvniloi avsd 293533 0332603 Jnsjjnqflk 330m svt} sasdT
ed? .b8389V7nd 9313'35 mini bus RN13} lo xsdnun 953 nl snl1osb sbiw
and ncljsxlinlzjaubnk has noljsslnsdju 10 a19335q Jnamqusvsb 1519n93
JRLJTqui anal snoaod and gnimjei bns ".fijuoa wax" 941 nl Jasblvs snnsod
.Ymonoos anibnsqxs 9d: at

0308003 ,32113 .Jnnjioqml 315 23983 ow: ,asjsmljas ed: 30 3891515393
-moo M751 115 m013 23119033 fins: 19303 30 Ins: usq 01 zsvo o) njnuons
0039503 1530] nl srlioab 9&3 031w .bnoosa .asjajn x13 glno 01 asiJibom
n1 has amjni onasdoj 30 zodmun 5d) at snilasb a used and 91913 .Sgsuxas

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L“

egafiuoojoq s as aniwnxg 0903403 10 sonsjwoqmi 9d) asjsotbnt £5 91131
.11-3C?1 novwfind anijlbomnoa $101 113 mot} 83q19391 dasa 15103 30
,ooosdoa sonbowq chj 233333 naajfigie 95: n1 aoizsv 9303330001 e'oajndoT
at 50310153 J}102 at 339319q 8.68 03 1791 n1 11uoa?1H nl 309319q E. m0}?
[330: 119$: 10 Jnaatsq 01 wavo svisoox 893838 svl! 2100 .1592 saga 9d:
975 aaunsa ozsdT .ooon/OJ sjzaragro maxi eaqtsoai fins: ijbomroa mTSi
,nhiVHEW .00333530T bun sinigwi? ,5x110153 flJnne ,zfsujaax .59110153 onion
.Jeuazqq 6.3 "£43 3201 9v15391 52n3g117 3293 has 11uoaaIH ,snslhul ,olfifi
(‘auwaJnj 933913213~nun gaioubuxq 93043 sqssxs) .893838 11a 51

Cd*1011 953 Sfiflla alduja ben‘hmot and 30 sonnjtoqwt at boniIafib and on3nd03

Stntn

North Carolina
Kentucky
Tonnes-on

Virginia

South Carolina

2‘

'Tahln 5

Commercial Tobacco Farms: 1964 .

Rulbcr of Col-arcinl Percentage of .11 _
3 Tobacco Far-n . Cal-arcinl Par-n
65,981 63.7
53,‘69 50.5
17,963 x '25.5
16,763 36.3
12,036 35.5

a. Colpiled fro. U. 8. Bureau of tho Census, Census of

Agriculturn, $964,8tnt13t1cn for the State and Countion (Nothington:

U. S. Govern-ant Printing Office, 1967).

C 313.7

I; ‘ 1 ' " 0 r O n .
ydfil :Lm"n1 Oanwuf Lbiufifimfid}
I[a 30 a u3n~3191 Inio3sawofl in vqixyx
(M134 Jvinrgmaafl amwul ossuyof 33538

1.56 139.66 sailors) d310M
6.02 955,8) {£3u3n93
6.53 CA9,11 saaaannoT
{.63 Ed?.6£ slnlgaiv

E 63 380,31 Bn110153 dJuoe

“a a~xn°W ,QUPVQD adj 10 uguxud .8.U m0}? bellanD .8
:nojfiwznrzd) auiJnuoD ban 33538 513 :0? 8133213518 ,QQPI ,91u31n0113A

.(‘381 ,soiiiu gnijnixfi Jn9mn13vo0 .8.U

25

Table 6

Cssh Receipts tron Tobacco ss 3 Peroentsgs of Total Cash
Receipts from all Far- Colloditiss 1952-56 to 1967-71

2 Chsngé
1952-50
" ‘ to

Stats 1952-56 1957461 1962-66 1907-71 1967-71
north-Carolins 50.5 46.2 * 43.3 37.7 34.0
(garnet, 41.2 38.6 39.7 34.3 20.1
south Csrolins 25.1 25.1 24.4 23.3 7.7
Virginie ' " 19.0 17.3 18.1 15.3 24.2
2.004.... 16.1 14.8' ‘14.5 12.0 34.2

1s. Conpiled from U.S.D.A. Annual Regorts gg.Tobscco Stntistics
and recent issues of Tobscco Situation,_

a :.i\.fJT

flusJ InjoT in «fintnyw“07 s 95 osnnme mn11 83213313 can)
i i asiJEdummoD min? 115 max? eJqLaofifl

LT-YéGI 11-1691 60~Sd€1 id-TLQI OC-SEQI 93538

0.$€ Y.VC 8.{¢ $.60 6.0C BUIIOISD dJ3OM
1.09 E.AC (.9C 6.?8 $.1A {JDUJUaX
1.1 E.€S $.03 1.2K 1.ES snifowsD d3u03
2.¢§ {.81 1.81 8.11 0.91 51n19117

3.03 0.91 8.01 8.A1 1.61 asaagnnsT

8913433L17 UQUPJUT n0 azwnvwfl {aphrfi .A.Q.3.U MOI? ballqmoj .B

a
A~.- *w-—-. an... —.._ “—ns—W —..—' -

..~13£u3%8 osveiuT 30 89uaa1 3n9393 has

”fin—o "‘4 - an

”A. .0“.-—- - -.

26

period. Moreover, there has been a decline in importance in the five
etetee that have relied most on cigarette tobacco for farm income. The
importance of cigarette tobacco has declined approximately 34.0 per cent
in lorth Carolina, 20.1 per cent in Kentucky, 7.7 per cent in South
carolina, 26.2 per cent in Virginia and 34.2 per cent in Tennessee from
the 1952-56 average to the 1967-71 average. Nationally, tobacco has
declined approximately l/Sth to 2.5 per cent of total cash receipts from
all farm.commodities from an average of 3.1 per cent between 1964 and
1968.

2. Tobacco z!£=_lgployment

The most relevant political consideration is not the number of
tobacco farms however measured. Variations in the estimates of the
member of tobacco farms are indicative of the crudeness of the measures
ueed. lowever, the number of tobacco farms can be used to pinpoint the
geographical and political concentration of tobacco growers.

Central to the problee of measuring political impact is not the
member of tobacco farms 255ng.but, more importantly, the number of
tobacco farmers and farm employees. This more relevant measure indicates
the number of individuals who may vote and affect political election out-
comes and, in turn, be affected by changes in governmental policy towards
tobacco.

Generally, the data indicate that there has been a substantial
decline in tobacco fare employment. Furthermore, with the possible
introduction of a mechanical tobacco harvester, declines in employment
may-continue and even accelerate. Tobacco remains, however (and this

point should be emphasised), an important source of farm.employment and

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27

income and‘affects the‘lives andlivelihoods of asubstantial. number of
people in a limited ember of electoral districts. -

boring the past decade. the number of 0.3. farm faily workers on.
tobacco terms has decreased about 35 per cent and the amber of hired

workers has decreased 37 per cent. 19

Eedrick, using U.S.D.A. figures.
estimated that the number of persons nioyed in tobacco farming has
declined free three hundred and eighty-eight thousand in 19459-51 to two
hundred and thirty-nine thousand in 1965-67. 2° -

tobacco is a laborfintensive crop that requires many man-hears of

labor for each acre harvested. 21

As'mantioeed previously ”tobacco
proponuts, the tobacco farm represents the strongest bastion of, the
diminishing fare family. The labor required for tobacco‘growing has
declined 57._per cent between 1950 and 1968, because of new technology,
increased. Isobsnisation and improved management practices. 9

. As a consequence of this declining labor requirement, tobacco.
alone with easy other farm cmdities. has been a declining source of
farm qloyment and sweetening support of the farm family. The picture
is not one-sided._however, _l'he U.S.DJ. Iconomic Research. Service
reported that. efficiency, in. tobacco production has not kept pace with
that of other eajor crops, thus. wile, tobaccofismployeeet has declined
absolutely, it has become a greater percentage of total eqloyeent in
911 crops. increasing free a l0.6 per cast average in ”ii-51 toe 12.9
per centgsversge in 1965-67. ’23 The decline in tobacco farm eqloyment
has not been as steep as that found in the total farm picture.“ The
failure to develop an. econ-ically feasiblemechanicsl harvester has

elloved tobacco. to remains labor- ratbar than 'a capital-intensive

VS

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crop. 2‘ nevertheless, as U.S.DJ‘. analyst Johnny D. Irsden noted

there is a tobacco labor ehottag'eend “mention for labor chows no
sign of easima all probably will intensity as tobacco areas becoee more
industrialised." 25* _

Tobacco farm qloyment has declined more slowly than the national
decline in ten film. the I‘m! of tobacco farmers and fare -
where when w ad in. are success by the prosperity of
the tobacco industry has declined. Hitb an absolute decline in‘their
under, their hos-tame an a political force probably will decline.
Index the dire-stances, anagram-en from tobacce growing districts
nationally ebuld bee-c «less intnss in their defense of tobacco as ‘
the number of thsis'oonstitnesta who would be affected by changes in-
W policy declines. : uls'aaliesey-oi ths'tobscco question and
use ape-ibis W Mid had very itch upon the importance ‘
of tobacco to particular states rmmd manual ‘diatricte. 2‘ In the
launch-aeolian inthsa‘stof tobacco terms and tobacco cm
uploy'm,accnqluied by the inure-in relative marten“ of other—
Mc inter-nausea: as textiles, should weaken the intense1 concern
ad mulled me of M's present protagonists.

. homer, thadnrt teemeetl'ott "orally“ indicates that tobacco
Mellie-names .co have a powerful peliticalimpact. ' Tobacco
flowers; aid their. fumes are use-[traced in twenty-fear congressional
«mm: :- sewea states. 27

(our etates: berth, Carolina, Kentucky, Tennessee and Virginia. In

—W-ef these districts are'ia only

seen of thsoe hetty-fearddatriece, there ere-at least 2,700 ce-ercial

tobacco farms, while in seven, there are over 10,000. A vital economy

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29

in thoao diatricto ia baaod upon tho oconolic proopority of tho largo
nnlbor of tobacco far-o. Politiciono-rocognizo that tobacco in impor-
tant to largo oolbora o! thoir conotituonta and havo attolptod to
protoct thoir conotitnonto' vital intoroata. ‘

Table I: ahooa thoao tuontynfoor diotricto, tho aolbor of coo-or-
cial tobacco far-o in oach. tho Iodian incooo and ranking on nodian in-
cooo of thoao tobacco growing congraaaional diotricto. Tho data oood
voro gathorod in 1963. Congroaaional diotricta in which tobacco far-ora
and far- faoilioa aro concentratod aro along tho pooroat congrooatoool

28 In fact, oi:-

diatricta in tho nation, in tor-o of oodian incoooa.
toon of thooo diotricto aro in tho.pooroat forty-font of all congroo-
aional diotricta, whilo only ono diatrict ia in tho top half. Thooo
data indicato tho rolativo povorty of congroaaional diatricta in which
thora ia a high concontration of tobacco faroing. Tobacco faraora tory
roll nay bo younliho aa oany onpportora clain. but aggrogato data do
not prooont a particularly appoaling pictnro of thoir oconooic auctoao.
6onorally, tho data iadicato that tobacco tar-ing io an important
factor in tho oconooioa of thoao rolativoly poor congroaaional diotricto.
Tobacco, ao a govornooot onpportod cooh crop, proyidoo incooo to oooy
congroooional conotituonta who night othorviao bo iopovoriahod.
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atod by tho rolativo nood and povorty in tho aorrounding con-unity. with
altornotiva oourcoa ot'inooloiprooont1y*oaorailoblo, tobacco:providoo
'oootonaoco for nany pooplo in congroaoional diotricto that would, in

ita abaonco, bo.iniovonmdooportononolin'trouhlo.

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Table 7

Congressional Districts in which There Were 2,700
or More Conercial Tobacco Farmein 1963 a

State State, I of Median
Median District Tobacco Income Rank
Income Number rarna b ($) (out of 435)
$4,964 Virginia ,
4 5,716 3,532 405
5 8,090 3,733 _ 393
9 2,761 ‘ 3,370 411
4,208 Georgia
' 8 4,673 3,440 410
6,309 Maryland .
5 2,745 ' 6,809 ‘ 69
3,821 South Carolina
’ 14,745 ‘ 2,748 427
4,051 Kentucky
1 3,551 3,453 407
2 6,222 3,547 404
4 6,799 4,869 298
5 8,378 2,085 434
6 12,734 4,161 352
7 6,829 2,888 424
3,949 Tennessee
1 8,344 3,649 . 399
4 3,442 ' 2,962 422
6 3,371 3,339 412
$3,956 ' North Carolina
1 7,355 2,662 430
2 12,814 2,775 426
3 13,423 3,105 418
4 10,244 4,148 355
5 12,915 4,347 343
6 3,022 ' 5,208 v ‘ 266
7 10,520 3,316 413
9 2,765 4,175 351
11 2,906 3,750 391

a. U.S. Bureau of the Census, Co reaaional District Data Book
(Washington, D.C.: U.8. GOVernment Printing Effice, 19635. Also see

£39, enaua Analzgia: Congreaeiong; Dietricts 25.533 United States,
August 2 , 196 .

b. Data for 7 atatea represent 174,359 of 183,381 callercial
tobacco far-a in the 0.8. in 1963.

HUGH sirfl 53?752?Q [aanwrnW~nn3 ,auava) 95) 30 uuewufl .2.U

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31

OIIIra ocIIIIic dialocatioa III bIrIIhip IIImIrraIIlt froIta
mm otiort to raaoca cigarotoa "tin abs-ply; Wt
titQOI-QD'CIIt'iI!“Il¢.IIIly trInIitioI.£rIIzthacco to IllFtDbltfl.
itIIIiI. (or Othlt'lll-flllintilltl)1liflitvfirivllt tImIIII.leiticIl
W tua h affoctul. foliciaa daaigaad to .cliorata th
nIcaIIIry Chi-III”Il11~IIIUWIIIIII'III‘Prdilbly divida thIII.oppIaII;

% “kilo in tho Loug’rII; tho iroIIII' fi'litiflld‘tllt in thII III-
*ltillionlliilitrictl app-Ira £31.! atoning .108I111Itofiflllllt, tIIIcco
tu- Wt and incoII r-aia politically vary inortant. Tho largo
and cIIIIIttIIId ngIp atrougly.IffacIId 57"tflinil.fll‘tbhlccfl farIing

ia thI firIt DI foIrHIlIIIIII IIIdI:dIIIIImII thrIIIIIIItiIl.IIoIIIic
and political input If :mélh .., - ."

3. 2.8. W's hlI in Tobacco m

flu 1m "HwMI-jwrohmm tobacco
fir-Ill‘Il"lllltilc'thlir‘plllbirityz .ILIyatIIlIt tIIIIttvaa baa
Tiovdflopod‘uhich bIIIfitI III ngIIrI and indiroctly’tha gIIIrIIIIt. Tho
:lolloltng aIctiIIa III-lairCHI“.Uiltllhnttt.vfllllinstiflin.~Ilhidflfl"
mra' and hen: it'll). IIIJIII Ibsen-alto bandit-I. tat-hat by the
:uIIIIIIInt foun,tobaoeo.

x labor: a. Salidbury III cflflcl’flflllilfliuiltlflllt<BtIlpI.llrbIII11t
W.‘ _' .‘ ._;. '.',.11
lutrIprIIIIIIlorgIIiaara int-at'oIpital to crIIta I aIt of

baaafita which thay offer to a Iarkct of potential cuatoIara

.uIt a prica. If, and aa IIIg aa, Guildh»CUItdlfltl buy, i.I.,
join, to Iaka a viable orgaaiaation, tha group ia in buainaaa.

It thabInafitatail, .orauinadaquatatourraatthIoIIt
of IIIbcrahip, or tba laadara gat inadaquata rotor-I, tba

m collqaaaa 3’
111a tadaral gmrmant baa hIlpad to orgaaiaa Ioat tobacco farIIra into

iataroat groupa by providing financial bIIItita and oaadad aarvicaa. The

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:aagnsdoxs

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32

governIent'a tobacco progran uaa developed to protect and aid tobacco
grovera by controlling production and oupporting priceo. Anerican

tobacco grovero have had (in one for: or another) price eupport and

production control prograno aince they were firet authorized in the

Agricultural Adjuatnent Act of 1933. 3?

larlier atteqte to organise tobacco producora aluaya had failed
bocauoe the benefita of IoIberahip aluayo had been outweighed by the
coete. Tennont, in hio fine atudy of the herican cigarette induotry,

coIIonted:

There were, indeed, occaoional atteIpta at collective action
by the far-era ainod at reetricting cropo, but the difficulty
of effecting ouch control in the aboence of adequate organiaa-
tion and the incentive of each farIor to flout the general
‘vill uaually inoured that reaulto nere negligible. In yeara
of exceptional diatreaa a reoort to violence visited upon
diaaentera occurred aporadically; eopecially in Kentucky and

' Tonneeaee. The oppoaition of atate authority, the difficulty
of Iaintaining a otate of aeIi-inourrection, tho tenuouanoaa
of group loyaltiea, and the difficultiea of oecuring adequate
geographical coverage uaually prevented looting roaulta. 31

The failure of. tobacco farIero to organize in the IJZO'I bod rooulted

in tobacco pricea far'bolov the coat of production and econeIic hard-

ohip. 32 Tree m coIpetition dong the organized grovoro had

lreaulted in very low priceo forcing nany nnrginal 'grooe'r‘o out' of the

:Iarhot. During the Depreaaion thin cutthroat cnfietition becone «so-II"

'and aevere. The" Depreaoion brought aboth for govern-Int. a non, note

active roloin‘regulating th‘oec’ononandanevoe'nae’of oocial re‘eponi-

laibility’ to main menu. Undor m was “nu-cram, cu

”variant offered tobacco grouere incentiveo to «courage their coopera-

tion tovarda their co-o'n good;

0
' I

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33

Several political ecientiata and econonieta, including Downa.
Saliebury and Oleon, have attenpted to develop a rationality nodel to
explain political and group actions. Often uaing econonic concepta, they
have eought to mum logically individual nenberehip in groups. a.
logic of collective action neceeaitatee that group benefita be provided
for group neibera. If benefite are not eonewhat restricted, then-there
in no incentive for nenberehip and cooperation. ‘Although the tobacco
growere have a cannon intereat in obtaining certain benefita (e.g.; high
tobacco pricea and better quality tobacco), there in no col-on intereet
in peying the codt(i.e:;'linitin£'yielde and production) of providing
the collective good.

he thcur Oleon put it: "The cuatonary view that groupe of individ-
.31. with col-on interests tend to further thoee cannon-intereete appeare

. 33

to mum; {14-1591 nerit. fie hao concluded: " '

'1 . . in a large group in which no eingle individuel'e contribu-
tion nakee a perceptible difference to the group an a whole, or
the burden or benefit of any aingle nenber of the group, it in

.certain that a collective group will not be provided unleee .;
there ia coercion or aone outeide induce-ante that will lead 3‘

. the Ienbere of the large group to act in their con-on intereet.

The govern-ent_hae provided thie inducenent to tobacco growera in the
{on of guaranteed nininul prices tolperticipatin‘ growera and penaltiee
to thoee who do not join participating grower groupe. 3?: _’ ,_,I

the has.p.h. under the Agricultural Adjuetnent Act, contracted with
growere to reetrict their production in return for caah.paylente. The;
41933 ect alaoauthorixed.nerheting agreemente._liceneee and code... The,
ect_wnn eupplenented by the Kerr-SlithAct in 123‘ which taxed tobecco

ealea of growers who did not eign contracts with the U.S.D.A..36

,enumG gribniani .ajz?mon039 has egrkjaaloe [fi311?10q [azsvsa

OJ Iwbom gjifznoiisj 3 golavcb OJ bozqunfijn svnd ‘noeIO has YIUJBIIBZ
god) .ajcnunoo alaunuoe 321:” 50310 .8302335 quowg bus Isalilloq nlsqus
SAB .rquowg at qihaxsdnem Inublvibzl qllsuigol ninqus 01 Jdguoa svad
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9193: main .5333113293 jgdwgmoa Jun 918 aJiianad 31 .819dmsm quoug 101
oossioj an: figuodjlfl .noljnifiquoo L05 rldaislssm 101 svljnsanl on at
dyld ,.g.o) eJkiannd 0153193 unin153%o at Jasxeanl nnmmoo a svsd 8199018

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9d? .uagua has 33339311 .HJQvaflifa Quijelfiam baslzudjus 0?[B 393 £591
onvr’uj blrpj fizidw ¢ETI at 33A fijtza-xznfi 513 yd bSJRfifiSIGQUR asv 338

og . - . . .
.A.U.2.U srl fijxw aJDszuno ngxa 10a bib oflw vxawozg 3o salsa

 

3b

The prograa rae terninated abruptly in January. 1936, when the
Supt-e Court declared’ portiona of the Agricultural Adjuatnent Act
of 1933 unconstitutional and Congreaa' repealed the Kerr-saith Act. 37
To achieve effectira production controla, additional legislation wee
enacted. The Agricultural Adjuetnent Act of 1930 authoriaed'narletin3
quotea with a penalty to gravera who exceeded theae quotaa. Harketin3
quotee were authorized when two—thirde or acre of the tobacco growera
voting 1!. epe‘cial election voted in favor. Grower approval allowa the.
to receive up to 75 per cent at parity price for their tobacco. 38 In
not referendua, aore than 90 per cent of the noun votin3 have
favored urketin3 quotea. . .

Aa atated in the Agricultural Adjuataent Act of .1938, ita 3oal waa

"to provide an orderly, adequate, and balanced flow of auch co-oditiea
‘ .. 39

D

in intereatate and forei3n co-arce. In reality. the 1938 act wee

one of Iany paaaed durin3 the New Deal which helped to nodify the teneta
of leiaaea-faire capitaliaa and which reflected the newly reco3niaed
role of “warn-ant to attenuate the "harah huan coata of free coneti-
tion.” .. .1 . l 1 .-
Cooperative tobacco aaaociationa (3rowar interact 3roupa) are
financed by and act ea a3eata for the 3overnent'a Co-odity Credit
Corporation (CCC).1'heae cooperatirea arran3e for facilitiea, to receira.
redry, pack and atora tobacco. The Secretary of A3ricu1ture haa been
required (except under epecial circuateacea) , cedar proviaiona of the
act, to proclaia national aarketiu quotaa and aaai3n acree3e allot-ante
for individual farne throuh theae local “one. Supply and «land

condition deter-inc the aiae of the national aarketin3 quote. If large

bE

P

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YE

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".oolJ

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35

tobacco stocks have accusulated, the law requires that the national
quota be cut back and that acreage allot-enta.be reduced.

Joseph.R. Williams, director of the Tobacco Division, 0. S. D.A.,
restated the purpose of the price support progras in his testisony before
the Subcolnittee on Tobacco of the house Collittae on Agriculture in

1961:

The price support operations for tobacco adninietered by the
Depart-set of Agriculture through the Col-odity Credit Corpora-
tien seek to maintain an average return to growers equalto the

- statutory level of support.. The purpose and objectives of
the progrea ere to support average prices to growers at stzautory
ainilln levels through.aither purchase or loans, or both.

The tobacco fern progren has been called the lost successful of all fern
progress., Prices received by tobacco growers hare been equitable and
posts to thl govern-Int for price supports on tobacco have been relative-
1y snail. Tor aany years, the government's tobacco price support pro-
gran.has operated rith.no losses to the governnent.

; Charbea S. Murphy; under secretary of Agriculture, stated in 1965
that "the tobacco prograa, which naintaina decent prices for the people
who produce tobacco hao cost only $39 aillion during the entire life of

41

the.prosraa." The. soot of the price support prograa true 1933 to June,

1972, has been about 0.15 per cent of the coat for all fern coasodity

price support operations. ‘2

l .

Table 0 shows the value 0! CCC tobacco loans aade for crop years
1930-1969. the percentage of the total crop under loan and the govern-
lent'a realised loss. Under the price support prograa, any net profits
fro- CCC sales go to the groaers according to their patronage; but any

losses are aasuned by the government. The govern-eat acts as a buyer of

last resort, supporting the price of tobacco if established niniasl

Ehuijfifl 333 3513 8971ND91 wsi 933 ,Bwjniumnass svad 233033 ooastJ

.hnwuiaz ad 23v3“3n11n quflfifin 3:53 has 1983 Jun 9d 530v?

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:1501

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. 16
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(I

thtnrq 3w: {as .mizgnuq JIOQfiua 93;

‘(3rr,~m::rrrc:') mm? His '10} 39.03 9:!3 30 3119:) 13¢; 81.0 Juoda nssd and

t‘
a

.anoleroqo 310qqua
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~uwovog adj bus nnoi 195nm 5033 £5303 9&3 30 annJHoaisq sd3 .9391

.4

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lb*ififl hsdaifds729 31 oaosfu3 30 soqu 9d) gnkJququa .330891

mars

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3851

 

 

Table 8

Tobacco Price Support Loans, Commodity Credit
Corporation, Crop Yeora. 1950-69 ‘

Total Total
Crops Value Quantity
' 0.8. & of Loaoa lald Under

Loans Made b
Quantity Alouat

Puerto Outatand at Loans

Loan At Realizeg
Rico lad~of Year aa 1

Year End Loss

Year Mil.Lb. $(Hillion) Mil.Lb. $(Million) Crop Hul.Lb. $(Million)
1950 .155 78.5 ' 2,056 125.5 7.6 311 5.3 d
1951 265" 131.8 2,360 114.2 11.2 247 ' .1 d
1952 370 166.0 ' 2,290 * 194.1 ‘ 16.1 380 1.0
1953,: 286 121.3 , 2,093 218.6 13.7 496 2.7
1954 ' 379 208.4 2,278 254.8 16.6 586 1.0
1955 408 252.5' 2,223 ‘402.6 18.4 797 .5
1956 '363 202.6 ~ 2,200 587.8 - 16.5 857 .4
1957 153 _ 82.8 1,694 577.5 . 9.0 946 .1
1958 167 105.3 1,762 566.9 9.4 901 4.3
1959 83 46.5" 1,825‘ 580.8 4.5 ' 892 1.9
1960 79 46.8 1,972 - 417.7 4.0 668 .2 d
1961 102 , 68.0 2,092 387.9 4.9 610 .6
1962 328 212.9 2,350 304.7 13.9 ' 451 9.3
1963 519 310.2 2,376 437.4 22.8 610' 16.1
1964 415 =-262.9 25266 666.9 16.1- 942 11.5
1965 130 1 92.3 1,871 826.3 6.9 _ 1,149 .4
1966 159 107.8 1,899 761.1 8.4 1,018 .3
1967 353 245.6 1,979 “ 678.8 .17.8 921 7.6
1960 191 ~135.0 1,718 * .756.0 11.1 1,035 . -1.8
1969_ 264 209.8 1,815 811.9 14.5 1,109 4.9

a. U.S.D.A. calculationa

b. Crop year

c. Fiacal year '

d. Gain

6C

8 SIKLT

315813 Y31Ln«;93 .anncl 33CGQU3 93139 033sdvT
5 96—0691 ,a1nuY 0033 ,n0135300103

IL3OT 1530T
VJII-RUCI 9min? 80333
THHHC D190 annoJ 30 6 .8.U
bsxlissfi 3A ns0J ennui 38 b3n333u0 szsuq 905M znsoJ
9 aaou 001 353! “ as 3:31 30 bn3 031H JnuomA v313nsu0

(noiIIiH)8 .dJ.1iR 3033 (3031119)8 .dJ.11H (001111”)? .dJ.liH 389?

b {.6 118 6.1 E.ESI 6E0,$ 6.8? 8C1 0391

I.

“ 1. 182 3.11 9.411 06E,S 8.181 €69 IEQI
0.1 088 1.61 1.991 099,3 0.661 OVE $691
1.3 696 1.91 6.512 {90,3 {.121 639 1691
0.1 688 6.61 8.862 811,3 6.6OS 915 6891
E. 19? 6.91 6.306 CLS,S 3.36? 856 6891
4. 188 E 61 8.186 002,2 6.903 [69 6691
1. 669 0.9 E.YTE 996,1 8.88 £61 1691
(.6 [C9 0.9 9.666 961,1 5.301 (61 8691
9.1 $18 6.9 8.006 EC?,1 6.6‘ [8 9691

b 2. 666 0.4 1.114 210.1 8.64 91 0691
6. 016 9.6 9.15' 290.5 0.86 501 1691
{.9 186 9.E1 9.90E 038,5 9.819 828 S691
1.01 016 8.39 b.1fib 615,3 3.015 918 £691
6.11 269 5.81 9.666 662,5 9.362 CIA 6691
6. 961,1 9.6 {.638 113,1 £.£9 051 6691
E. 810,1 6.8 1.111 998.1 8.101 961 6691
6.1 199 9.Y1 8.916 919,1 6.ێC EEC (691
8.1 CCU,1 1.11 0.661 811,1 0.6E1 191 8691
9.9 91!,1 €.é1 9 110 {13,1 8.9 C 963 9691

8331351n3153 .A.C.2.U .5
3599 0330 .d

1999 1:321? .3

nisa .b

 

37

pricea are not reached on the open market. CCC holdinga have increaaed

fro- 3l7.l Iillion pounda (valued at $125.5 Iillion) in 1950 to 1.153

‘3 Recently loan atocke

have declined to am 733.6 million pounde in Hay, 1973. “_ The

billion pnnnda (valued at $756 aillion) in 1968.

Canadiantobaccovjourn‘al, 1h... Lighter, noted that the U.S.D.A. invent-eat
in tobacco ."ie alnoat aa inportant in tune of value _aa the total inveat-
tent in all other crope ouch lee: corn, aorghun and wheat. . ." ‘5. .
While the coata oi, the price support progran have been aininal, the
progrn cannot be called a total aucceaa. Govern-cot acreage controla
deemed to protect the. garner tron, overproduction and aaaure hie a
reaaonable remuneration have failed to reduce production.” _'1'here ha
been a gradual reduction inithe aunber of acrea of tobacco grown; but,
et the I. tine, with each decreaae in govern-ant acreage. allotnenta
there hae been an intenaa effort by tobacco growers to increaee produc- 1
tion per acre. Growera heve acted to naxiniee their productivity within
the cpfinea of acreage controla. . More inportantly, accompanying thia
increasing productivity baa been a general decline in the quality of
tobacco grown aaaociated with the far-inn ltechniquea used to increaae
yields. ' Hedrick co-Ienta that 'becaueeof the tobacco program the
owner haa received a lower quality of rproduct at ,‘ higher price than
would have been the caae in the aboence of the program” ‘6
Acreaae-poundage legialation‘waa paaaed by Congreaa in 1965 in an
ettqt to increaee the quality of production by uniting ease of the
preuurea . to increaae tohacco yielda. The legialation regulated tobacco
yielda aa well aasacreage, and allouenta can be reduced if overproduc-

tion continuea ., ‘7 Recently, with production reduced below earlier

1E

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. . . . 16
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levels, the percentage of the burley and flue-cured crops placed under
govern-hut loan has declined substantially.

The federal price support prograa forced tobacco far-era into
collective action and interest groups to take advantage of govern-ent
tobacco price supports. Regulated by the govern-cut for so long and
organised with the govern-ent's help,‘the tobacco growers are now 3'
powerful interest group who lobby for their vested interests. Grower '
groups are-the powerful grass roots‘support behind the vigorous opposi-
'tion of some legislators to govern-eat involve-ant and regulation of
cigarette seeking. The tobacco growers' cow-on econoaic survival and
prosperity'have necessitated collection action to protect their challenged
interests. 'Crower groups, established priaarily to obtain material
benefits, have extended their actions to coabat the present challenge
to their livelihoods and protect their vested interests."8 plson noted
in general: . .. . 3 “ h
The lobbies of the large economic groups are by-products of
organisations that have a capacity to 'aobilise' a latent' ‘
group with"se1ective incentives.’ Only organisations that
have the 'aelective incentives' available are those that (l)
have the authority and capacity to be coercive, or (2) have

a source of positive induce-ant: that they can offer to
individuals in a latent group. 1?

hithout govern-ant help, it is doubtful that the growers would have been
sblerto_provide the necessary induceaents to organise. ‘ _

' 'The Coaaittee of Growers of 0.3. Tobacco was forsed in 1964 by
representatives oi f9 organisations of growers, and of persons directly
interested in growers.‘ The group was for-ed shortly after the Federal
Trade Collission announced its ”Proposed Trade Regulation Rules for the

Advertising and Labeling of Cigarettes." These grower organisations had

CO
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39

becomevconcereed specifically with FTC proposals to regulate cigarette
advertising ssd.'very alarmed about the whole subject of existing threats
ed essrese and emotionally hostile labeling." 5°
~ The presentations of the growers' committee in Congress have been
consistent with tobacco industry views. The growers emphasize that
considesetise of their economic need is not paramount to consideration
of the psblic's health; however. they feel "that there are far too many
unknowns'to arrive at the conclusion of placing further restrictions

" 51 The growers feel unjustly accused of purveying

on our industry.
disease and death, and although the growers are themselves already highly
regulated they fear "unwarranted" regulation of cigarettes:
I we people who grow tobacco and our predecessors for many gener-
stioss hsve believed that we are in an honorable business.

we have believed that in important respects tobacco is bene-

ficial to the user. 52
The tobacco growers have played an important supportive role in mobiliz-
ing-enti-regulstory forces because of their high degree of organization
and the concentration of their membership in a relatively small number
oi congressional districts.

-0Ihsr government tobacco programs are additional evidence of the
ability of tobacco interests to obtain governmental aid. In addition to
Iehsces prise supports. the federal government also provides a number of
other material hematite to tobacco growers. The U.S.D.A. provides free
inspection. mm: more and demonstration services. 53 Under the
Iehsoes Inspection set of 1935, growers have received free and mandatory
inspection of tehaece st tobacco auction markets, where two-thirds of
the esoesrs voting is referend- favered inspection. 5‘ The tobacco

Isthet seleveerviee gathers information on the approximate value of the

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'

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60

different grades of tobacco to “. . . aid the farms to get a fair price

. 55

for his tobacco. , The Wrstioa service acquints tar-ere with

the objectives and benefits of “inspection ad Iarket news at! mar-rte
thatchteprqare theirub‘ee‘eeso that‘it'winbes'eld at the
highest‘pries‘eeisistdItSwith quality:

m‘..mm (1) certify-re the seller the grade at his
tobacco, (2) furnish hiI‘with current average price and support
or loan price for each grade, and (3) keep hiI inter-ed as to~
the best way to prepare his crop for Iarkcting. In short.

they are designed to aid MI in all ways to get as and: assay

as po ssible for the tobacco which represents his year' a work. 55

In 1968, the tobacco Iarket news service had s budget of soIe $295

thousand while tobacco inspection, grading, classing and standardization

' “ 57

received over $3.5‘I111100. Tobacco inspection and Iarket news cost

$6. 8 Iillion during the 1972 fiscal year. 58

The Federal Crop Insurance PrograI provided over $146 Iillion in

#- ‘J ‘ ‘ I

tobacco crop insurance in 1968 (75, 657 crops insured) second only to

wheat in the anunt of protection. PreIiuIa for this insurance anunted

S9

to $3. 93 Iillion.whila indeInities were $2.16‘Iillion in 1968. Hell

1

over 10 per cent of the total tobacco crop is insured through the federal

l'

governIent.
, . U.

Still another service to tobacco farIers was enacted in the 1965
Food and Agriculture Act. This act provides for a cropland adjust-ant

prograI that pays farIers to divert cropland acres to non-agricultural

r

and conservation uses. Under this prograI approinately $3.1 Iillion

has been paid for converting tobacco acreage. 60 With decreases in

.‘

tobacco consqution and acreage under cultivation, this prograI Iay

becoIe Iore inortant in the future as a Iesns of easing the transition

.-

froI tobacco to other uses.

03

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61

The present goweruent loan stocks of tobacco represent a signifi-
caIt iaweeueat‘by. thegoverIIent ointle future ecoIeIie growth of
teheceireed- ciagrettes. This investIent Iakes the governIent an indus-
try partner in seeking increased doIestic and foreign sales. The
goverIIent'sttobaccoriIientory is‘the largest inwaloeof any feral-a
Mn 6]? andtorepreeeees' svpeseible Ioes.o!:ower 000 Iillion dollars.
eengoverIIeIe actions which succeed :in‘ reducing cigarette coon-”ion
donatioellyrwdll me. te' coatinIId flerpeodattioa.‘ lurthhrIora, osder
peoeest'gsoer-ast pugrens coditoeotsdecreeeod eeasupcieeotz ciga-
rettes, reduced cigarette isdIssry purchases, andlor reduced foreign
mom will he IIde up by additioeal gout-eat purchases. .

. The'gm- is “(attested in protecting its $800 Iillion .invest-
out. hear-us inacti- to Iaintain the status one will protect this
We and possibly enable it to reduce its present holdings. In a
decliuhg tobacco LIerhotyptdoe supports have burdened the gorse-at
oith ea eoorIeu tinsecm‘ce-iteeat. This co-itIsIt weehe against .-
esneeg gorse—eat action to redone cigarette consuptioa and protect the
”lid-shtlmmfi. .. ' . 1
:1 » .Steooglp Issued inter-ere to Iaintain govern-eat toheeco progrus
have developed oev'che-portof progreI participants, governIent adIinis-
tratoreldod coIgIeeai-el opeeeese. Oacesterted, progrns and bustits
ere dun-salt “given. Isfare faced-sot oIly with the great eoeIoIic
“:tf'." people heieg eatieiied by the tobseee econer, bot else
etch .e' dyer-.92 .mmnx beaetits ohichprevides staterooms with
his eed states and tehaeee'tareeee nick neehneeded Inert-1 .beIstite
animus. congressional nd-etete representation is turn are '-

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‘2

proviud with 'pouttulauuppon. A landfills. sync-l of “and?“ ties
tho ”urn-Int Ia tobacco. m ton-tug notion encum- Quanta
Museum. .
e. 'Ctgrotu‘mutucutnl $1th 23251 §_¢_a_¢_6_i_

3n. “.1qu manufacturing" tun-try, 11k: tobacco grating, 1o -
acne-cum in ~60), 'a In ltltll. In fact. it to «an nerd concom-
cranial m mm, larch unlluywnghi. a“ Kentucky. have
Mad-tor mi 1:!- ”1.: cut of “0‘9““ and 62 by cunt-ct“
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63

Theee f iguree clearly indicate that the tobacco nenufecturing
induatry, and eepecially in cigarette caeponent, have not kept pace
with the general induetriel econonic growth of the tobacco nenufacturing
etetee. In north Carolina, for mle, cigarette manufacturing nakee
q leee then 6 per cent of total employ-eat in the atate, leee then 5
per cent of total ealariee and vegea ilhil'e contributingtyer 16 per cent
of total value added. In coeperieon, textile nille and related producta:
contributed over 60 per cent of total atete enployeent in all industriea,
over 37 per cent of total eeleriee end vegee and ovdr 32 per cent of
total value added by nenufecture in 1965._ The eane eituetion in true in
Virginia and Kentucky. Other induetriee are clearly an inportent or
nore inportant than tobacco and cigarette nenufacturing. Clearly in
North Caroline. textilee play a nuch eore inortent role in the econonic
proeperity of the etete then do cigeretten. - Ae the date in Table 9
indicate, cigarette and in fact, tobacco nenufecturing in tbeee three
etetee play a relatively anal]. role in the total etete why-net and
vagee picture, but do contribute a larger portion of the total value
added by nenufacture than night he expected} 6‘

I'Over tine, tobacco'e contribution to the econonic proeperit'y of.
cigarette ennutecturing etatee bee declined. Tobacco'e contribution to _
etetevide eeployeent hee declined in North Carolina free 6. 3 per cent
in 1950 to 6.2 per cent in 1966, in Kentucky tron 6.0 per cent in 1950
to 6.9 per cent in 1966, ad in Virginia tron 5. 6 per out in 1950 to
6.0 per cent in l966.- - Tobacco qloyeent generally bee reeeined ateble,:
Ihih general atetevide qloynent figurea have-increaeed eubetentially.

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importance and growth auch ea aalariee and wagon and value added by
Ianufacture. Tobacco nanufecturing hae increaeed eubetantially by each
of theea neeeurea, but not ea rapidly en the general etetewide growth.
hence, tobacco and cigarette manufacturing are not an inortant to atate
proaperity an they once were.

The W“ “featuring induetry mm 36, 600 people, while
the entire tobacco induetry qloya 75.100 pereone. Cigarette nanufac-
using bee been a highly autonated induetry ain'oe the introduction of
Jenna A. loneack'a firet practical cigarette-eating nechine in the
lOBO'e. Cigarette ”future" hue qloyed lean than 50 per cent of
total. tobacco -1”... although hey have been the' largeat eingleo
qloyer in the induetry aince about 1958. The total amber of induatry
qloyeee hea declined eubatentielly fru 100, 729 to75, 100 between
11,996? attordhgtogorernn-tfiger-

Table 1.0 preeeete tobacco. innuetry data indicating the percmage
contribution to the national ecoaony. letioually, tobacco nenufecturing
rum-stun 1:17 Ital}. percentage‘of undone]. gloyneut, payroll and
value added by nanufacture. One final aggregate neeeure of tobacco'e
inortence ehould be briefly eentioned. Table 11 ahowe total tobacco
iaduatry contributione to the Groea national Product (GI?) including
both doneatic eelee and exporta, ee well an the inertence of tobacco
an a percentage of the our for five year: averagee between 1940-19“ and
yearly for 1965-69. Tobecco'e contribution to the eation’e econoey hee
declined froe 1.95 per cent in 194.0 to a low point of 1.18 per cent in
1969 at the e-e tine that ite total contribution to the GNP bee increeeed

fro. $2.19 billion in 1940 to $11.02 billion in 1969. lecent eetinetee

 

 

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47

Tnble 10

Tobaccoe' Contribution to the National Econoey.

Tear Tobacco Enployeee* :5 Tbbeece Payroll 3(600) 1c
(Cigarette Enployeea) .:~. .-

1950 92,323 ‘.6‘ 212,536 .‘5
. (27,743) .19 (75,556) .16

1900 32,500 ..£9 _J319,386 .36
' . (36,110) .21 (165,553) .18
1966* 72,363 « .3: " 356.171 .23
(35.602) .18 ' (209.272) .16

1 f 1 .
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a. Conpiled fron varioue ieauee '13! 11.8., Bureau’ef the Cannon,
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b. Percentage contribution of libicoo and cigarette unpleynant
to total 0.8.;enp1oynent.“ 1:” .. - . , :.

c. Percentage contribution of tobacco and cigarette payroll to
total 0.8. payroll.

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‘8

Table 11

Tobacco Industry Contribution to the U.S. Econony a

Domestic ~ Total Total no
Selea~ ' Salon » Pe

$billione) $(billione) of GNP
1940—66 average. '2.353 1.067 ' 1.63

1965-49 average ’ 3.742 - 6.062 = 1.76 —
1950-510 «average ~ 4.904. ,, 5.247 1.56
1955-59 average 5.893 _ ‘ 6.330 . 1.94
1960-66 average 7.677 I 8.186 1.66
1965a69 ayerage' 9.586 10.189 1.27
1965 8.651 9.157 . 1.34
1966 9.160 b 9.751 A 1.30

1967 7 9.582 ' 10.217 1.29 '
.1968 : 10.112 » 10.796 . 1.25

1969 10.b§4 ‘ 11.020? A 1.18

a. U.S.D.A. calculations.

 

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et. the= inertaaoewi cigarettezaadatoheceo induct, have bece-e
tact-auteur eluted by indeaery “unification and the finance-of
letailei' bteakdoeae ef corporate'aalea ‘nd earniaut'tigurea by product
linea.

‘ Thestobaeee indeetry ‘and cinema mfaetutia. Integral-aub-
atantiauyaatheiaaet mayqeera. In recent yam", cigarette ‘
haaatacturine “recently-tee well over (billion-donate in valae added
by “at”. The total value. added'hywheutebecce induattr (includ-
iae clean; OOH-IO tobacco, and! and chevinawobacco) bee intranet
(m.$677.25aiu1ea ta 1958-cc a- can). of over. $1.87 billion ”—1966.

'mu tenetallyrtObaccejaaefiactnrm .e-ploynent baa declined and
percentage attribution troll “Flathead“, utal 'hduetry ealea
labertncreaied‘adetaatiauy11rn.$lo.361 51111.. to 810.551.5111“;
ham-the parted" 1957-71.’ afloat-e! the recent-tutu”: to “in an be
attributeLto the'aoeetobacee antennae-of tbbeece “featuring
manna: Jewell ea- to increaeea in cieamte‘ cautiee. let iacoue
after feleral'eaneeslae“ iamaeed abet-pl: tree 8210*nilltoasia1957 to
8663 nillieeia 1971..” ‘

.Ci'ereete “lecturing. la. ceeeeatreeed in- aix. cerniea? that
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betcha-teem“ L1. .W*mcrm, he... much mu 1a.,
m:-emnm:muco Montiu,‘.rhiltp‘rbrria Iae., Loew'a
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50

protect the industry froa.an increasingly uncertain environ-ant of
Itieltiftc controversy. contradictory propaganda and government action.
Later, we will diaouea the industry's reaction to this controversy.

u. Cigarette maturing in the United States is an oligopoly
Contested i! sin fir-e. This economic power has been concentrated in
titan-atatoa in which the tobacco industry has had a very long and proud
itatery. The slot, that once was tobacco's has dimmed slightly as the
ttlattlt tansrtaacs of tobaoce.lenufacturing has declined. But while
tobacco'e image haa_been tarnished recently, its economic import remains
quite substantial in cigarette manufacturing states, especially when
tfllttltttd is conjunction.with tobacco growing.

It it ilposaible to measure the exact political impact of the
tobacco grower. and leauiacturers. They possess three of the basic
rateurcea useful in obtaining political influence: votes, money and
infatuation. These resources can be and have been mobilised by growers
and manufacturers to elect political candidates who represent their
Itlvlo Tobacco manufacturing and growing have declined relative to
general economic growth, but nevertheless they remain very important.
The.reductioa of tobacco consumption by government action without con-
current diversification into other areas by both tobacco growers and
Illufattuaera‘ululd be catastrophic for the entire tobacco industry and
(or the near voters that it directly and indirectly affects.

11- mm
1- W

.Tha discovery of tobacco and the diffusion of tobacco smoking have
provided national genera-ents'with abundant tax revenues and ease with

”’1

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dslw 9309 has sounsvo3 393 30950030 d3tw a309mn39v03 lsnolen b9b1v03q

 

51

profitable snort-set mono... Tobacco taxation was first need by
the Ititish sour-ch Jones I in on «tempt to discourage its use. “he
use! instead the growing of when? trees and the propagatioo of 'oilk

‘8 Neverthelesi, despite

sores, ‘sr being of sore mu. than tobacco.‘
his persons]. hostility to the "noxious seed," Janee I and his successors
to the British throes were forced in the interests of their bobjects in
ths‘Iatgisis‘eolfly to folter the' tobacco trsde'. In'fsct, Jones I for-
taac. ten-91mm of tobacco a mum and Wales in 1619 to aid colonial

develop-sot. lsclenee, in hi‘s'book The Bull Engliah'tobacco Trade,

 

cuts! that ' "the policy ofrthe Gonna»: hodnted to nothing‘ short
of the regulaties of the national taste in tobacco in the interests of
tbs Colénfigg.”,§g ’ f *
The tobacco trade‘br‘oeglit brosperit‘y to the Virginia icolony‘ and
my in“ the-loyfl musty; mired-bionic: ofeconouic sustenance
sad gmmtel revenue bee eucceasfuny rationaliied and 'icgicmcca
tobseco use throughout ite history. Cardinal Richelieu, vbo becafie Chief
mum- of rodeo m 1024,"'thoughc that 1:: tobacco he could find an -
W131i norm; of filtllthf“70 ’Richsllieo's motives‘ “Vere very nixed
on can io‘eoe‘ cock: on. bend,‘ he oodgbt to check cum habit with
1 wind on the'other’w, be sought to sake I profit forthe‘ state. 71
This-dim hu ofccd been considered and is now reassert’ri‘ng itself
with the *iooreso’ed recognition of tbb'ecco's poea'ible her-£01 effects.
' my morn-auto but (:6on tobacco in Iota! gmda éhiic
profiting Wily “mitts uee.‘ corti in his book A 'liietog '91 Smoking
noted that "metever their {on of govern-cut, [they] 00v encourage and

heilitdte the motor! for esokfng in every ”conceivable way, sorely for

1E

yd b980 3831} 85w 00138x03 0335doT .831100000m 309m039v03 91d931103q
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1.

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52

cu m «to. m wait-pm" 7.2 mun-«1y have;
played it active role in secosragiagzcigerettecoeaqcion (with the
exceptio'a of coentriesia’vhich tobacco is a government-omen) aa-
yet' at the one ties, before the present eoetreversy,‘ they have data
little to' dismal-ego it.

cigarette tuati‘oe; seletius best. es‘plrt‘ of 0 hotel. crusade}
against cigarettes, hss’ bees-serial sosrce of Wtflmm.
ne'preseot wig-health controversy hr .11 turn beat the clock and
hurts a new sot-01 true-is shich scold seek to “cigarettes-out of
We. ‘Ma tins, toaster, the crusade .y not be'uor'anr; but
scientific-11y (culled. ' * -1' ..
2; Federal 1!!! §_t_a_t_g Tobacco Taxation

Is the falls-lag action, a. wilth-iefiy can-inc (moi can etete
tebsoco Wt is notice.- Macoe'tues, wally ea cigarette»-
W W. govetbnt asset's. TM benefits" tu- tobacco
are my to Inhibit poucuo “can m out. w;

~30” ”a” use we M—utdbudq to t1. be“:
mace-cc. a tobacco; '5’: “M5. in u. esrly study. of the
‘I-ardc- tebaoee “any“ that "eat paliny'hls not be. unique,
too-an taps-coat ban-mu- buy tu- cottuflmsw chat-ohm
“any ottoman u can nun-ct e m m.“ 73.- -~ ‘

M0! to tb‘CiVfls-Ihr m tauth‘emas uni a! only two dif-
tcm em and au- tor ssh-Mt; pom-or c1... 7‘ since. that
em} mu m b'md cw? h‘dfflt m 1363.

he fear-1'- Wise cannot-d ever 51 man busts tree tobacco
75

incite tease (88.6 per c“:- tasteless“) beaten 1863 #81969.

h
N

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53

Coebinad etate, federal and local taxae have averaged aleoet $0 per cent
76

of the total coon-er price for cigarettea aince 195‘.
Table 12 providea data on tobacco and cigarette tax revennea aince
19m and ahova tobacco and cigarette taxed aa a percentage of total
internal revenue collectione. Federal cigarette tax-e have increased
enbeteetially aince 19100 but have declined free 10 per cent of total
internal revenue collectione to a lee point of sent over 1 per cent in

77

1970. Tax revennea froe cigarettee have not kept pace with the

treeandone increeae in federal tuation and me. Since 1953,
jcigarettee have accounted for over 95 per cent of total oohecco revenoea

:and have yielded over 2 billion dollare a year in revennea to the govern-
7". ‘ L ' I o
I 4 1
Jacobetein anggeeted that "there eeeee to prevail a tacit belief

‘ecnt aince 1965.

:that a govereeent deght to derive free thie particular iadeetry ea eoch
:revanee ea peeaibla. 79 the tuna 9...... actually hao been '
rcetrained in taxing cigarettee eoepared to my lnropeee govern-ante
J:‘l'he tax rate on a package of treaty cigarettee hao increaeed only 33 1/3
{per cent free 6 to I centa aince rebroery,1919. In fact. the tax. rate
:hae W the the aince W, 1951. Since 1951, the gap of‘
potential revenue 1hao not been overlooked. State taxation had filled
the void left by the aboence of increeeee in federal cigarette taxation.
Bedrich noted without interpretation that federal rem- would be

80

:affected inortentlp‘ it tobacco contention declined. tobacco tee

when have declined enbatentially in their percentage contribution

to total governant roveeeea aince 1,100 and even eore tron the 1930'e. 81

. federal toba'ccio‘tanatioe hee doubt the proper tax to uni-lee mention

he
I'd

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8?

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lg A A'- - f“ ‘9 e
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nnjjgnuanoa sxlmixxm 03 x33 teqqu 033 fifiguoe and noijnxsj oaasdo) Iztsboi

 

_ e —_L

 

 

54

Table 12

Internal Revenue Collections and Share From
- Tobacco teeee, Fiscal Yeare, 1940—70 ‘

 

 

::::.i TobacCo Taxes As percent of total collected
Bndieo- - : - , - Tahecco Cigarette 1.233;,
June Total Total Cigarettes Cigars Taxes Taxes rage.
30 .' Million dollars_ ” Percent
1048 b 5,240 609 534 . 75 11.40 10.00 1.40
1941 7,370 695 617 81 9.47 8.37 1.10
1942 . 13,048 781 . 705 . * 76 . 5.99 .- 5440 x - .58 =
1943 22,371 4 824 . 835 ~ '89. " 4.13' 3.73 ..70
1944 '40,122 - - 985 : 904 -84' 2.46- 2.25 '.21
1946 . 40,672 x 1,160 ‘ 1, 073 93 2.87 2.64 .23
1947 39,108 1,238 1,145 93 3.47 2.93 .24
1968 .' 41,865 . 1,300 " l,200~ *? 90 3.41 2.89 .25”
1949 40,463 1,322 1,233 ' 89 3.27 3.05 .22
1950 ~ 32,957 '1,328» -1,243 * 85, 3.41- 3.19’ ‘.22
1951 50,446 1,380 1,294 86 2.74 2.57 .17
1952 65,010 1,565 "1,474 ~91 ” 2.41: 2.27‘ .14
1953 69,687 1,655 1,587 68 2.37 2.28 .10
1954 . 69,920. ' 1,580 - ‘1, 514 . 66 'a2.26 . ' 2.17 .09
1955 66,289 1,571 1, 504 67 2.37 2.27 .10
1856‘ 75,115~ 1,613.»- 1, 549= ‘64 "2.15 2.06 .00
1957 80,172 1,674 1,611 63 2.09 2.01 .08
1.958 ' ‘ 79,978 1,734». 1,668 66 _ ' ‘ 2.17 2.09 .08
1959 79,798 1,807 1,738 69 2.26 2.18 .09
1960 . 91,775 1,932 1 . 1,864 . 68 . 2.11 a 2.03 .07
1961 94,401 1,991 1,924 67 2.11 2.04 .07
196! 99,441 ‘ 2,826 ' ' 1,957 69 2.06- 1.97 .07
1963 105,925 2,079 2,011 68 1.96 1.90 .06
1964:~ 112,268' 2,053 '1,977 A 76 1.83 1.76 .07 *
1965 114,435 2,149 2,070 79 1.88 1.81 .07
1066; .128,880 ‘ 2,074 . : 2 ,006- . 66.~ "1.6d 1.56 “.05
1967 148,375 2,080 2,023 57 1.40 1.36 .04
196.: 153.6571. 2,122 -' 2,866 ‘ 56 1.38‘ ’ 1.34 -.04
1969 187,920 2,138 2, 082 56 1.14 1.11 .03
use” 190,400 ., 4.09.1 1.07.0. 57 1.95 “1.02 .03

a. 8.6.0.6. oeloalatiene ode tree the Cmieeiomr g; 1n__t_e____rne1

 

Revenue Annual Reporta.

b. Eatieeted.

,1...

31 9:3151

mod? 91nfi€ bns an013391103 sunsvsfl 15n193n1
5 03—0491 ,8159Y 15331? ,asan ooosdnT

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m-»=m'-I -11....1...
04.1 00.01 04.11 63 456 906
01.1 33.8 34.9 18 316 696
86. 04.6 99.6 63 603 183
03. 63.6 81.4 98 668 438
13. 63.3 64.3 48 09 659
33. 19.1 {1.3 69 388 369
£3. 46.3 38.3 69 {30,1 061,1
43. 69.3 34.8 69 641,1 863,1
63. 96.3 14.8 3 803,1 005,1
33. 60.8 33.6 98 {83,1 336,1
33. 91.8 14.8 8 643,1 838,1
31. 36.3 43.3 68 493,1 088,1
41. 33.3 14.3 19 434,1 666,1
01. 83.3 35.3 86 386,1 666,1
90. 31.3 63.3 66 416,1 086,1
01. 33.3 36.3 36 406,1 136,1
90. 60.3 61.3 46 946,1 [16,1
80. 10.3 90.3 66 116,1 436,1
80. 90.3 31.3 66 866,1 463,1
90. 81.3 63.3 96 883,1 308,1
30. (0.3 11.3 86 468,1 369,1
30. 40.3 11.3 36 439,1 199,1
30. 39.1 40.3 96 369,1 630,3
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55

and tax revenues rather than prohibition. Several changes in cigarette
taxation have been suggested.

Senator Robert Kennedy suggested a sliding tax scale on cigarettes.
The current rate--$4 per 1,000 cigarettes-dwould remain on cigarettes
with less than 10 ailligrams of tar and .8 milligrams of nicotine. 82
Others with higher tar and nicotine contents would be taxed a higher
rate of up to $15 per thousand. Nicholls, in his fine study Brigg_
Policies ig_the Cigarette Industry: ‘§L§£ggyflg§_"Concerted Action:_and
Its Social Control 1911-1950, stated:

. . . there is no excuse for continuing the present flat cigarette

tax, based upon quantity rather than value of product. Such a

tax not only strongly discourages price competition through its

differentially heavy effect on economy brands, but is unduly

regressive in its incidence. 83
licholls' remedy is a graduated or ag_valorem tax which he hoped would
retern a degree of price competition to the cigarette industry. 84

Neither of these very different suggestions has received serious-
consideration. There are, however, few people seriously proposing
changes in cigarette taxation. Differential taxation is one method which
'eight be used to persuade economically cigarette smokers and manufacturers
to produce allegedly less harmful cigarettes. Nicholls' proposal is
probably overshadowed today by the threat to the industry's very existence
-so that competition no longer appears to many an important question. The
existence of oligOpoly in the tobacco industry and their competitive
practices was popular with economists such as Tennant and Nicholle about
twenty years ago and resulted in a good deal of scrutiny of the industry.

{At present an even greater controversy is being considered: do cigarettes

cause disease and death and what should be done? Cigarette tax revenues

86

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56

have stifled a good deal of meaningful political debate that has been
overwhelmed.by the pragmatic reality of maximizing needed revenues from
a liaited nder of tax sources.

The enactment of state cigarette tax legislation in the 1920's has
been attributed to anti-tobacco feeling and to the growing demand for
property tax relief by econoeically depressed agriculture. Originally,
cigarette taxation was viewed as a last desperate stand against the

'cigarette ”fiend. ' 85

In the late 19th and early 20th centuries, there ‘
vsre several states, including North Dakota. Iowa, Tennessee, Kansas, and
Utah, which prohibited cigarettes. 86

i 4 The cigarette tax also was viewed as a method for shifting a portion
of the state tax burden away from real property to consumer goods, from
the farmers to the city dwellers and from the non-smokers to smokers.
During the 1920's, ten predominantly agricultural states enacted cigarette
tax legislation, several of which had repealed prohibition laws to increase
tax revenues. . ' ‘

During the 1930's, the rationale for cigarette taxation shifted from
efforts to decrease consumption to efforts to maximise revenues and fur-
nish property tax relief. State cigarette tax rates and tax revenues
have increased sharply since the early 1950's. The median cigarette tax
per package has increased from 3 cents, as of November 1, 195‘, to 10
cents on November I, l?69. 87 The Advisory Commission on Intergovernf
mental Relations' report wzederal Ovegglepping i3 Cigarette £9333
attributed that sharp increase in tax rates to two factors: first, "a

persistent need for additional tax revenues to meet the States' expand-

ing expenditure commitments" and second, "a marked decline in concern

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57

‘with the effectelef tax instillce.on consumption." 88; The report cited
the emergence of the health issuehin 1956 as the catalyst for the
reesergeece of the anti-cigarette spirit of the l9ZOYa, and as an
inserts-t factor is naiaiag_tax'ratea and revenue yields to new heights.

1 Cigarettes presently are taxed in also states while only ,19 states

tea sthar.tobaece products. Over 98.per cast of total sat stats tobacco

89

tease,“ fess cigarettes. _. geissrattetaxatisa costributaa presently

aver-Spar cast of total state tax revenues." This .mtributisn wants
to ever 32 billion a year and, is some states, contributes over 10 per

osst.of total state tax revenues. In fiscal 1969, six states (New York,

California. :‘lasas. Illinois. In: Jersey. and fluids) ~each collected .

ever $100 sillios in cissrstts revenues. 2° : - . 1.

Is the insane future. :state cigarette taxation probably will

reflect three factors: the continuing cigarette-health controversy.

f a r e
V.

growing anti-tobacco sentiment. and the continually increasing revenue
needs sf stats asvsraesats. the reliance on cigarette tax revenues and

the difficulty of replacing lost tax revenues sake sharp cheeses in

cigarette tag rates valiksly. H" other factors also work against sharp

1' II— I" P

cigarette tax increases. . . 1 ,

m tabaacs fax email is its booklet 311 I35. m.g‘m.~,
indicated the significant tax benefits derived by governments from

tobacco les at the sass ties casplaiusd about the heavy tax burden:

Aside n.- ths fact that trsnda in cigarette tax rates inparil
the market for cigarettes, is the injustice imposed upon
cigarette users who secure no special benefits by virtue of .
saying the tax. Where cigarettes are concerned political
expediency rather than tax equality has. been. the controlling
factor in.- the minds. of the taxing authorities, at all levels of
government. 2

 

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58

The tobacco industry today fears the effects of increasingly
higher cigarette taxation upon consumption. Earle C. Clements; hr?

president of The Tobacco lnstitute, Inc., has noted that "prohibition by

n 93

taxation is still prohibition. r. J. Reynolds Industries, Inc.

appealed to 1:: shareholders in its 1970‘ mm Report mm... to the

representatives in your state legislature and let then know that you are
opposed to unreasonable and punitive state cigarette tases which directly
influence your investment in our company.” ,‘ Tobacco distributor groups

have coed-ned cigarette tax increases as a ”bonanza" for organised

xi I

crine.'”' "' "

The alleged elasticity of desand for cigarettes has been used as a
rationale to urge restraint in cigarette taxation. High taxation and
high prices, 1: 1'. argued, will “in...” cigarette emu-prion:

'Contrary to the thinking of economists of the past, the desand
for cigarettes is quite elastic. Sieply stated the demand for - ._
cigarettes in a given community is directly influenced by the

_ serket price for cigarettes. Consumers have already demon- .
etrated their unwillingness to buy cigarettes in a conmnnity
.in which tax rates on cigarettes are high. They have several
alternative choices. They can cut down or abandon their use
of cigarettes; they can cross political boundaries where ciga-
rette taxes are lower; or they can acquire their cigarettes
fro. sources which by one means or another avoid the heavy
burden of the tax in their own communities.

Before substantial increases in state cigarette taration in the 1950's
and 1960's Tennant concluded: ‘

.':'. the price elasticity of tobacco demand is very law under
the conditions we have been able to observe. the dust! for any
‘comhodity sust be elastic if only the price is pushed high enough.

Presumably public ire at ertortion would cause consumers to re-
strict purchases well below that level. . . but within.the
'observed range of sovement, price has not been a sufficient

variable to bringrabout changes in cooll!lfifiono. 97

(‘3

 

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59

lo found that coonuoptiuu is offoctod hath hy'oocolor-iufluouooo dud by
tho lotioool taco-o,»ohd that tho lottor io opporoutly tho ooro important
iutlunoo'olthouuh "tho roopooohooooo-ot cuuoqtiuo tu' iocuoo 'io:
tolorhohly 1a.." ’8

1 sun «mum figum’tudiuoto u olooticity u out mu
upou.priooa Puhliu iro te high eigorotto'toxotiou‘ouu high priuoo boo
iod to .ouhotoutiol tutorototo'ooloo oud than“, oucurriu; fr- loo

9? "limo; ototo oifltotto untioho tppur tooo *

to high- tox‘ototoo.
unit“ hyz-oltorootiuo‘ouilohlo’oouruoo oi rigorotooo in uoighhoriur‘
ototoo-vith loooracigorotto ttlotiou at pricorrothor cm ou-ohooluto
toolootiuity of out“. With loior pricoo ottoui-hvoilohlo. olooo by, it
it difficult tun-3o tho octtoLolooticityot autoiot o portiuulor
prioos Prico «aeration croutod-hy ouoquol nutter-of cigouottoo
prod“ iocoutivot for ciurotto. huuliuglood thio ‘hoo hocono o Juno
prohlu‘fiorCh-o onto ”run; “on nigivotu toutidu'thuo io
touotroiooirhr tho pottoror of tontion- h: uoighhoriu-ototoo tud tho
difliuuitylvof promising out of outo ooh-Loud illogol ouugglinge
l.‘ Iohocco Elnora

‘l'uhouuo-olporto oro tho Cfuorthrolonout cutrthutiu' to tho inurtooue
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u thortohocco «to-root to tohocco groutro.‘ “match-o- program,
Id.- tobooco mount“ hocroducod maul”. Cmrnolt tdhuuo
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60

vested interest in tobacco. This section exanines the governaent's
export role and its tobacco prograns.

Exports of nanufactured tobacco products and unnanufactured leaf
have contributed substantially to our balance of pay-ants with other

countries. 100 Tobacco ranks fourth anong fare crops in export value

102

101

averaging approxinately 10 per cent of total agricultural exports.
‘Table 13 shows average 0.3. exports of unnanufactured tobacco fro. 1955-
$9 and yearly 1960-69, by value and weight. During the 1972 calendar
year exports of manufactured tobacco were valued at $63 Iillion and
‘tobscco products at 32‘0‘nillion. while the value of U. S; tobacco
:cxports has increased substantially since 19‘9. the quantity of tobacco
lelported has increased very little. lxports of tobacco have been
‘cttccced seriously by a decline in the duality of production that has
recon-panied rapidly increasing tobacco yields. Horace Godfrey, adninis-
ttrstor for the Agricultural Stabilisation and Conservation Service,
in explaining this relative stability of tobacco exports, stated: "we
'have not shared in the expanding export aarkat and export trade in
tobacco." 103
The’United States' share of total eorld*tobacco'exports has declined
fron an Eversge‘ot 33 per cent in 1955-59 to 32 per cent 151909. The
decline in inch sharper 15 1962-65 vhen the percentage declined to 27.75
per cent. In recent years, United Nations' sanctions against Rhodesian
tobacco, and 0.3. governnant subsidies have resulted in a partial recovery

10‘ Due to increased

of a greater portion of world tobacco trade.
foreign output and the reduced 0.8. production previously discussed, the

United States' share of total uorld leaf output has fallen fro-.29 per

06

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61

Tabla 13
Tobacco Exports ‘

Tbbcceo Export: Vila! “

16.: (Iillion 1b.)c $(M111106)
1955-59 699.8 369.9
1960 '696.1’“ '379.3
1961 . 601.0 390.9
1962 . 668.9. 373.6
1963 505.5 603.1
1966 ' ~516.6 ‘ 612.9
1966 '66IL1~ 382.1
1866 551.2 681.5
1967 572.3. 698.3
1368 ‘ 598.8“ 526.6'
1869 577.5 539.7
1970 _s1o.6 -688.5
1971 673.3 662.0
‘606.1 b 638.7“

1972

b.

c.— rigoro- at. for nun-nufoccurcd tobacco.

Tobacco

f

Situation. March, 1971, p. 1‘ and March, 1973, p. 10.

1972 cxport1 worn largo due to the 1971 dock strike.

16

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68

 

62

cent in the early 1950'. to 19 per cent in 1965-69. 105

The govern-
nent's export pay-ant prograa, discussed later, attelpta to rectify this
situation by subsidizing Aaerican tobacco exports.

Exports of aanufactured cigarettes have increased substantially
since the early 1950's and in calendar 1972 sons $2£O*aillion in tobacco
products was exported. Exports of aanufactured cigarettes are shown in
Table 16 for calendar year averages for five year periods beginning in
1950. The value of exported cigarettes averaged over $119'aillion

106 U. s. tobacco iaports have been substantial

annually during 1965-69.
and have reduced the export surplus frol tobacco expo rta . The United
States is the third largest tobacco laporting country in the world,

107 In fiscal 1972

averaging over $130 adllion yearly between 1965-69.
our total asnufactured and unaanufactured tobacco iaporta totaled $167
Iillion.

Aaerica's tobacco export surplus has averaged over $465‘aillion
annually for the past five years, increasing to $745 Iillion in calendar
1972. Total tobacco exports during the period 1969-68 have been valued
in excess of $9.16 billion and lake a very substantial contribution to
our balance of pay-ants.

The United States govern-ant has developed several progress to aid
tobacco exports which are a significant ale-ant in the total tobacco
econoay. The first govern-ant export prograa for tobacco was passed in
1954. The Agricultural Trade Developaent and Aaaiatance Act of 195‘
(Public Lu ‘80 - 83rd Coast-u) m aere recutlycalle'd the 16.8 for

Peace lrograa:

 

 

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63

Tdble 14

70100 of Cigarette Exports 8

 

 

Cigarette Export. Calendar Years
1950-5; ' ' 15.8 billion
1953-59 p 17.1 ”
1960-64 ' 23.0
”1965-69 24.3

0.: fofiacco Situation, Hitch, 1569.

 

 

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64

[the progru wee deaigned to] expand international trade enong
the United Statea and friendly natione, to facilitate the
convertibility of currency, to promote the economic atability
of Aeerican agriculture and the national welfare, in further-
ence of the foreign policy of the United States and to atieu-
late and facilitate the expansion of foreign trade in agri-
.cultural coeeoditiee produced in the United Staten by provid-
ing a neane whereby aurplua agricultural coenoditiea may be

aold through.private trade channel. and foreign currencies
accepted in paylent therefore.
The act authoriaee aalee of U.S. agricultural coauoditiea for foreign
‘currency and long tern (dollar) credit.‘ The progran he; helped expand
U.S. tobacco ealee to developing countriea. Another eection of the act

108 Tobacco is thereby exchanged for eater-

providee for barter ealee.
iale and eervicee need by 0.8; agenciee evereeae. Theee traneactione,
which are coneidered*equtvaleat to dollar eelee. lake a direct contribu-
tion to the U.S. balance of pay-ante. 109

; Govern-ant tobacco exporta alao are eede under the Mutual Security
and AID prograla in an effort to "pro-ote collective atrength, and
Iteeter in other weye the foreign policy of the United Staten." Total
1exporta under apecified govern-ant progreae have averaged $34 aillion
yearly between 1955-59, $56 million ‘bémeu'ned-cb and $92.2 Iillion
between 1905-69. 110 Govern-ant export progreee'have.beeoae increeeingly
filpertentlee-e.perceetege of total waleaefactuted tobacco exporte aince
.1955; .Innorte.ender.leverneent In 480 progrele have increaaed froa an
neverege of 10.1 per out between 1955.59 to a sore recent average of
;Qpruieetely 20 ~pee cent between 1265-69.. Under the PL ‘80 program
:‘tbe‘eevenaeet vhee been a ease: exporter of tobacco, Iubaidizing all
se£.the=eeetqaeedieacleiaiag.bhe benefite to the balance of pay-ante, ae

a~ rationale.

$9

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65

The anti-ated'cCC coat of financing the export of eurplua agricul-
tural col-oditiee for foreign currenciee includee the export Qalue of
ehiplente froa coaeercial atocka.” The coat includee the acquiaition'
coat of CCC-owned coeeoditiee (baeed on doaeetic eupport pricea, coat of
atorage proceaaing, inland tranaportation and other coata of financing
ehipeent).l Table 15 ehowa'progran.operation coata for Pl 480 ealea for

foreign currenciee and credit aalee for dollare for the fiecal yeara

1962-63..
‘_ . Table 15
Public Law ‘80:.Aprogrel.0peration~Coete‘
SALIS.FOR FOREIGN CURRENCIES CREDIT SALES POR.DOLLARS
(Iilliona of dollars)

1362 19.9 ' ' '1 9 -
1963 1 . . . 2303' 10‘ L
196‘ 25.6 2.9
1965 , , w . . 15:6 1 w 6.7
1966 * ’ 30.1 1.1
1967 - 16.7 . v . .£.5
1968 22.5 8.7

a.‘ Tobacco Situation; June. 1169, p. 36.

,Aleo under Congressional authorization provided in tn 480..tbe
U.S.D.e.thaa worked with Alerican agricultural and trade groupe to help
expand exporte of_e large nuaber of @eericaa fare producte including ;
wheat. feengrain , cotton. fruita. tobacco and Ian! othore. In.a one
page etateeent ieeued.in larch, 1969, by the n.s.n.e. foreign Agricultural
Service entitled _"£lpert Develop-ant Progr- for ms. Tobacco," 111 the
departeent carefullyexplained ite prune in light of the noting-health

controfereyh' The U.SLD.A. noted that "an eaveral occaoione the Congreee

83

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66

hes fsiled to ensct proposed legislation which would exclude tohecco
{rm perticipetion is dmsstic progrsns' end in foreign trsde progr-s."112
the Desertsent of Agriculture bee retried set its export progrse for
“becco "with full sensitivity to the existing controversy over mun;
end heelth end hes iqeeed two nejor restreinte on tho tiara":
(1) the only objective of thetobeeco enort progr- ie to
encoursge foreign countries thst elreedy ere buying tohscco

in ti. 19:14 nsrket to buy 0 lihernl pert of their purcheses
fro- Ansricsn supplies.

(2) The progren is cerried out only in countries where tobecco
nemfecturing in 0 revetment “poly end such walnuts

sctively welcone the use of Anerican tohsccos in products they

Inn-future for eels to their custonere. .
these restreinte um linitsd the man sincs 1.967 to three countries,
Mtrie. .1" end i'heilend. fro- e high of nine countries including,
11.1“. tunes ad Italy in 1957 end 1959. Expenditures have declined
fro. highs of $723 thousend in 1960 Ill $722 thoussnd in 1962 to e recent
low point of $102 thousend 1011mm 1965. 11‘

m. federsl gover-ent hn epent e totsl of $4.22 nillion dollsrs
lieu 1956': 11.8.. traitoenerntors been spent sun 61.68 nillion; while
”foreign mob" contributions hen roundly-s $6.67. Iillion. Mt
oi the pronun't mom: is need to pro-one locei dig-ream brads the:
are uh partly lith 0.3. taboos.

Sons opposition hes developed within Congress to continustion of
this pram... At the 19m Ciuntte menu and advertising Heeriess
Fluid- by. the lsunn—Interstete.“ let-sis- Ccnrnsfimittee. Wm
m I.-. Inch 0.2.)- stem: .

lthhkitipoutml mummim Wt shouldhe
taxed to psy for cigsrette sdvertising end 1thserehy spresd

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67

enking, ieitnetueeenncioneble thetuenbuldeuceuugn

it in other countries. 115

The ncet recently eetabliehed export prograe ie alno poeeibly the
most extre-e; it further tiee theiederel governeent to tobacco. A linit-
ed export paynent progran deeigned'tn ”help 'regain the hietcric ehere
of the world nerket for 0.8. tobacco" van beg-9 in lfie uning the CCC
Chnrter Act euthor‘ity. Under thie progrnn, the oldeet crope in etorage
qualify for e lO-cent per pound enbeidy payeent; note recent crcpe
qualify for five cente per pound: "The prograe eneiete in naking U. S.
tobacco ncre coqetitive with tobacco in comtriee thet “can offer it at
lower pricee beceuee of eubeidiee, preferential dutien, bilateral

treding erreng-entnand cheaper foreign labor and land. " 1‘17 Govern-

nent progra- coete for fiecel yearn l966 through11969 and 1972 are:

1966 leee then 350, 000
1968 $28. 4. nillion 118
1969 - .928. o nilliee 119
1972 $26. 7 .1111» 12°

1

The cont of the progran eince ite inception hen been approxinately $89.5
nillicn. ‘l'hie progr- hen helped to further the artificial nerket in
tobacco. The U.S.D.A. ennounced in 1973 that thin prograe vculd be ended
and cited eccnonic juetificetione mrelated to the necking-health contro-
verey.

In neking American tobacco nore coqetitive, the govern-net hen
played e nejor role in ite eale and in neinteining not only pricea and
production but tobacco grower incae. Thin progren, ee well an the cthere
nlreedy diecueeed. hen aided v.8. tobacco exporte, and, in no doing, hne

helped diepoee of and lieit the quantity of tcbeccc held under the CCC

price eupport progrn.

Y5

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ausdjo ed) as lieu as ,mnxgoxq aid? .9m09n1 xzwozg oaaado: and nationhozq

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.mswgowq Jtoqquz solzq

 

 

Table 16 aullarirea the coata of CCC program operations previously

discussed. Total progral.coata are shown for the fiscal years 1962-68.

tibia 16
CCC Program Costs

(millions of dollars)

1962 29.2
1963 61.0
196‘ 38.8
'1965 20.4
1966 31.6
1967 61.9
1968 61.3

i

a The export pay-ant program has increased sharply total CCC program costs.

. Costa over the past seven years have totaled $284 million. The federal
govern-eat plays an integral and vital role in the tobacco economy. In
so doing, the govern-ant reaps the benefits of tobacco taxation and

” exports which make important contributions and cannot be replaced easily.

The increasing extent oi government involvement and the vested

n.1nteraata that have been created inhibit change. The system of benefits
.once established in most difficult‘to change. In the following section,

a we will consider the changes in the cigarette manufacturing industry

that have been brought by the smoking-health controversy.

‘7

 

#
' I
Lt --'—-*
"_-———

 

80

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9.I3 (091
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l.

2.

3.

5.

6.
7.
8.

9.

10.
ll.

12.

: apparently 1969). (Himeographed.) , ., . _

69

Footnotes - Chapter I

Nelson W. Polsby, Mirial Gallaher and Barry Spencer Rendquist, "The
Growth of the Seniority System in the U. S. louse of Representatives,"

American Politicals ciggu Revigg, LXlII (Septeaber, 1969), pp. 787-
80. ,

News Release fros the Office of Robert P. Kennedy, New York, September
11,1967. . . .

Canada, rt of thg_8tandin Committee on Bealth,Ue1fgre £!__ hgial

Affairs on o acco a d Ci are e Smokingr (Ottawa: Que»
Printer for Canada, 1969), p. i2.

Ibid.’ p. 9.

"Tobacco in the National Economy," Congressigggl Record, January 11,
1973, p. 8672. Also see "So-e Facts about Tobacco - for Background
Information" (washington: The Tobacco Institute, Inc., no date but

' 3"

See Table 1. Also see Johnny D. Braden, "Tobacco Acreage and Yields

- Trends and Prospects," obacco‘_i§ga§ign, March, 1971, pp. 32-36.

Calculated from U. S. D.A. r;;¢:...,

Flue-cured and light air-cured tobaccos used in cigarette production
are also utilized in pipe and chewing tobacco. These latter uses have

- declined appreciably to less than 10 per_cent of total production.

See "Tobacco Used for Cigarettes,“ Tobacco Situation, September, 1969,
pp. 36— 38. The U. S. D.A. reported that the average 0.8.. cigarette cos-.

'tains about 23 per cent less tobacco than it did in the mid-1950's.

Joe Western, ”0. 8. Tobacco Progras Once Praised asluodel, Runs into
Troubles,7 The Wall Street“ Journal, February 16,1963. . :

"Job-Retraining Plan Is Extended by House:. Senate Unit Votes Curb on
Tobacco Yields,” Th Wall Stree at Jggrnal, April 2, 1965.

Manufactured tobacco product prices have increased 58. 6 per cent from
1957-59 to 1970. Tobacco Situation, March, 1971, p. 6.

93

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.—...

 

 

13.

1‘.

15.

16.

17.

18.

19.

20.

21.

70

See “tobacco in the Istionel Been-y,"‘0onggeeeional Record, January
11, 1973, p. 8471. Also see testimy of Fred 8. Royster, Chairaan,
emitter: of Growers of 11.8. Tobacco, in 0.8., Congress, House,
Ge-ittee on Interstate and Foreign c-srce, Hangs, Ci ette
Labelig and Advertising .. 1969, Part 2, 91st Ceng., let Sese.,
1969, pp. 655-669.

0.8., Departnent of Agriculture, Tobacco Division, "Tobacco in the
national Iconney,” June, 1970, p. l. (Hi-eogrsphed.)

See, for «file, the {alluring articles: Joseph 0. Hertaberg,
"Tobacco Per-inga' A Problu, High Costs Cast Glo- over Future of
Par-era," The New York Tines, October 6, 1969; "Tobacco Growers
Feel Insecurity as Business Pessinien Mounts," The Nev York Tiles,
ltarch 30, 1969; and Willie- R. Stevens, "Tobacco Peres Changing:
Tobacco Per-are in Carolina Yield to the Age of reflexology," _Th_e_
Lew _Y____ork _‘l_'____ines, April 12,1969.

 

U. 8., Federal Trade Cmiuion,A -2222:— an Cigarette Advertisijg
and mint (Washington, 1963), p. 15 (in the files of the Mission).
The report uea prepared for the U. 5., Pederel Trade Co-ission
hearings on their proposed Trade Regulation Rule for the Prevention -
gf_ Unfair gr Deceptive Advertising and Labeling g; Cigarettes _i_n_
Relation to the Health hasards of hokigg and Accoganling Statenent

 

 

 

 

 

or Basis and Pumas seo__f_ Ru___l__e (Washington, 196‘) (in the files of the
hission).

0. 8., Congress, noose, Co-ittes on Interstate and Poreign Co-srce,
_;Is_e_r__in§_s__.____ . . ,1909,p.657.

The 0.8., "Depart-er er Agriculture defines co-srcial tobacco fares
as all tar. uith a value at sales aunmting to $2,500 or acre or
fares with a value of sales of $50 to $2, 599 if the fare operator
ussender 65yearsoiegeendhedidnetvortdfthstere100er

asudaysderiegtheyeer.

Jeh-y Bred. ”-d lobar: ll. Miller, “Trends .11 Prospects for ‘Tobacco
labor, " Tobacco Situation, June, 1970, p. 37.

Jun 1.. Bedrick, Seating, Toba___g__co and health (rev., Washington: 0. S.
Depart-ant of health, Iducation, and-'— welfare, Public lealth Service,
lsslth Services and Mental health ministration, 1969). p. 77.

Total eqloynsnt is derived tree total hours by dividing by 2,000

per year (asst-in. s so-vaeh year and an 8-hour day). This is an
artificial asstqtion for (are labor because far. enterprises typic-
ally require unre than 8 hours a day in the st-sr and less than 0
hours a day in the winter. louever, the assqtion does per-it crude
coeparisons with off-tare Cploynent where the 50“ year and 8-
bur day are reasonable “none for full qloyuent.

Braden ad Killer, Tobacco Situation, June, 1970, p. 37.

 

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22.

23.
25.

25.

26.

27.

28.

29.

30.

31.

71

Ibid., p. to. The mechanization of tobacco harvesting has been

slowed by'the‘anall size ot.moat tobacco terms which make the '
size and cost of presently developed mechanical harvesters un-
econoeical for most growers to own and operate. Furthermore,
”federal laws and regulations hinder merging production units
into a size of operation that can effectively use available pro—
duction technology."

Hedrick, p. 77. The heavy labor require-ant for tobacco places
tobacco growing at a disadvantage at a tine when labor costs are
rising rapidly and the fare labor supply is declining as workers
seek more advantageous employment in other sectors of the economy.
See braden and Killer, Tobacco Situation, June, 1970, p. 61.

 

I.J. Reynolds announced in its 1970 Annual Report that they had
completed a production model of a compact mechanical harvester.

 

Johnny D. Braden, "Tobacco Acreage and Yields -- Trends and
Prospects," Tobacco Situation, March, 1971, p. 36.

 

lepresentstives {roe eon-cigarette tobacco states such as Pennsyl-
vania sad Connecticut have failed to support vigorously the cigarette
industry in the present controversy. In fact, many ex-seokers have
turned to other tobacco products as cigarette substitutes. The
nee-cigarette segeent of the tobacco industry has not been under
attack and vigorously has  sought to take advantage of the present
health controversy.. . -

The tobacco industry is aware of its potential political influence
and publicized, through industry publications, the opinions of
candidates on issues affecting tobacco. See "Tobacco and Politics,"
Tobacco Eeporter, XCV (October, 1968), pp. 15, 16, 18.

 

Ten of the twenty top comaercial tobacco farming districts ranked

along the lowest twenty in the country in average cash value of
far: products sold per farm. 'Thirteen of these lowest were major
tobacco producing districts. See U.S., Bureau of the Census,

Con reasional District Data Book (washington: 0.8. Govern-ant
tinting Office. 1964). ,

 

Iobett H. Salisbury, ”An Exchange Theory of Interest Groups," Midwest
Journal of Political Science, XIII (February, 1968), p. 11.

 

James L. Rodrick, Smoking, Tobacco and Health, and Robert H. Miller,
'U.l.D.A. Tobacco Price Support sailboan Progress,” Tobacco Situation,
June, 1969, pp. 30-33, have been used extensively in the following
discsssion.

 

 

“chard I. Tenant, The Aesrican liarette Industry: _A_S t___udz in
Economic Analysis and Public Policy (New Haven: Yale University
Press, 1956), pp. 189-190. See Rodrick, pp. 85-86.

I?

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0. 8., Federal Trade Collission, Rgggrt_ of the rederal Tradem

sission_ on 5%3. Tobacco Industgz (Hashington: Govern-ant Printing
0 fits, 192

Hancur Olson, 11:; Logic 2; Collective ‘Action (Ca-bridge: Harvard
University Press, 1966), p. 2.

gbid., p. 64.

See, for exalpla, "Hurley's Brief Preedm," '_l‘_h__e_ Wall Street Journal,
Hove-her 22, 1968.

Tobacco Situation, June, 1969, p. 30.

ledrick, p. 86.

ibis was later increased to 90 per cent of parity price.
Rodrick, p. 87.

0. 8., Congress, House, Subcollittea on Tobacco of the Connittee on

Agriculture, Hegrig‘s, Tobacco Price-Sgpport Progran, 87th Con3.,
lat Sesa,, 1961, pp. 6-5. . '

U.S., Congress, House, Subconnittea on Tobacco of the Connittee on

Agriculture, Hearigla, 1965 Acreggngoundage Harketig. Qggtaa £g£_
Tobacco, 89th Con3., lat Sess., 1965, p. 26.

0.8. Depart-ant of Agriculture, Tobacco Division, "Tobacco in the
National Bconony," p. 2. Hedrick notes that cunulative progra-
losaes ranked 16th along najor commodities in 1965. ledrick, p. 92.
For details on the origins of the govern-enta' role, see 8.3. Rove,
Eobacco gag95_595.a.a.s. (Hashington: Brookings Institution, 1935).

6.5., Depart-ant of Agriculture, Annual Report 2! Tobacco Statistics,
195;: p. 6 and 1968, p. 9. Also see Tobacco Situation, June, 1969,

’0

Tobacco Situatiog, June, 1973, p. 12.
mm. mm 0.11. 1968). p. 31. .
fledrick, p. 92.

Flue-cured tobacco growers approved the progran effective for the
.1965 crop, while burley tobacco acreage-poundage quotas disapproved
the progran in referenduns held in 1966 and 1967 but later approved

mdage restrictions. See Hedrick, p. 91, and lobacco Situation,
Hatch, 1973, p. 30.

 

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73

to: era-ple, aoae burley tobacco growers have forIed a lobby fund

by contributing $1 out of each pay check. "Not one farIer in 1,300
requeated hia dollar back last year." See George Vecaey, "Tobacco
Chanta Huaic to Growera' Ear,” Ihg.Ne!:York 23953, November 29, 1970.

 

Olson, p. 133. ’

U. 8., Congreaa, Rouse, CoIIittee on Interstate and Foreign COIIerce,
Hearings“ . . . , 1969, p. 655. See teetiaony of Fred 8. Royeter,
ChairIau, CoIIittea of Grovera of 0.8. Tobacco, pp. 663-665.

Ibid., p. 633.

lbid., p. 659.

0. 3., Departaent of Agriculture, ConauIer and‘Harketing Service,
Tobacco in the United Statea (Washington: 0.8. GovernIent Printing

5ffice, 2366), p. 59.

See Tennant, pp. 221-222.

 

I.

6.8., Depart-ent of Agriculture, Tobacco Division, Tobacco: Inapec-
tion-Market Neva and Demonstration Services (Washington: v.3.
53;;rnIant Printing Office, Decerer, 1961), pp. 3, ll, 17.

tbid., p. 16.

0.8., Congraaa, Senate, Appropriatioea CoIIittee, flu «rings, apart-
Ient of Agriculture and Related As» mciea Appropriationa, Part 1:
Agenciea of the DepartIent IarI Credit AdIiniatration, 9lat Ceng.,
let Seee., 1969, p. 874.

 

an.

0. 8., DepartIent of Agriculture, 2obacco Diviaiou, "tobacco in the
National Bconon," p. 2.

a.» Jlt '. .
6.8., Congre-d, Senate, Appropriation! CoIIittee, flearigga . . . ,
2969, p. 133. '

I. 3., Departaent 62 Agriculture, Tobacco bivieion, l'T'obacco in the
lettuce! lcouon,' p. 2. During fiacal year 1972, approaiIately
$1.6 Iillion eaa paid to producera for diverting tobacco acreage.

Iedrick, p. 93. He uaee 1965 cqulative data. Recent data can be
Obtained in Tobacco Situation. '

Value added approrteitea the actual net productive contribution in

a given induatry. In the coIputation of‘valua added for the Cenaua
of Henufacturera, the coat of purchaaed Iateriala, euppliea and other
iteIa, is deducted froI the value of chip-cute. nedrict.vritea that
“value added thua defined includee auch ite-a aa eIployeee' payroll,
‘IanageIaut aalariee, taxaa paid (other than exciae taxea) return to

 

 

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atockheldera and interact retee. depreciation. and operating coata
en buildinge and equipment. The value added concept providee a
convenient way for viewing the contribution of the tobacco nann-
lecturing aector aince the value of the tobacco leaf (i.e. the .
contribution of the fare nectar) is excluded free the ”cabana i.“
the aenufacturing eector." Rodrick. p. 56. Aloe nee U.S., Federal
II.“ cm.1”.Am e a e g 1963.’e 20o '

Data preaented on atatewide indicatora are troa.U.s.. Bureau-oi the
Genera. Annual Survgz _g.§!g_iacturere (Haabingtont 0.3. Govern-
‘aeet Printing Office. for the yearn indicated). ~.

Tobacco annotactering and agriculture elao benefit a neaber of other
laduatriee. Sec 0.8.. Gangrene. Houae. SuchIIittee on Tobacco of
the Coalittae on Agriculture, Tobacco Reaearch Laboratory Heariggg,
88th Cong.. let Seaa.. 1964. See atateaent by Archie Davie. Chair-
lan of the Board. Wachovia Bank and Truat Coupany. Winona-Salon.
U.C.. p. 56. .For exaaple. the following are eatiaated contribution!
by tobacco agriculture and nanufacturing to other inductrieaa
fertilizer and line indeattY. $k5 Iillion; peaticide induatry.

$20 aillion; fuel oil, petroleun, $7 Iillion; tobacco bed canvaa.
textilee, $8 Iillion; replace-ant of tobacco curea. $11 Iillion: -
twine. $2.5 Iillion; plaatic covere; $2.5 Iillion. tobacco aeeda..
$1.5‘nillion; cigarette paper, $25 million, tranaportation, $79
Iillion; and advertiaing. over $166 Iillion. Advertiaing will be
diacueaed later. . . . . .

Tobacco Situation, June; 1969. p. 35, June, 1970, p. 36, and June,
1972. p. 21. Data include non-tobacco enterprieee of tobacco ,
Innatecturiae corporatieneu . , L . -.,.

Data on the percentage contributiona of verioua cigarette aanufac-
turere were publiahed yearly in Harketing-Coaaunicationa. John
Iaawell who wrote the reporte has gathered tobacco aarket etatietica
for nany yearn. Nicholle writes that "The American cigarette
induetry aince 1911 in a print ea-ple of the way in which a tow
“intent time can. without any for-a1 agree-ant whataoever, develop
'tacit fulea of the gaae' by which price coapetition can be avoided
Old joint profita aaintained at a level at leaat approaching thoae
of aonopoly." Hilliae I. Nicholle, Price Policiee in the Cigarette
m: _A_ 9.951. g; 'Qoncerted ActionT _a_n;_d_ Lt; §_o_cial Contrgl

19119§Q_Claahvillet The Vanderbilt Univeraity Preae. 1951). p. 201.

Iadrich providee data on the value or total reoeipta. total deducr-
tiena. protita before and after taaea,.aad total aeaeta for theae'
eia largeat cigarette nenutacturing corporatiena for the 1965 fiaoel
year. Hadrich. p. 107. Concentration in the cigarette indoctry

he: been the euhject of both eeonnnic diacueeion and controverey and
govern-natal action in the peat. Several aajor econolic etudiee
have era-ined the atructure and cenpetitiveaeea of the tobacco --
iadnatry. See, for exaaple: Nicholle, Tennant, Cox and Bernetein.
all cited in the bibliography.

 

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69.
70.

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15

t;l. billinga, Tobacco: Ite Matogz, Verietiea, Culture,.lanufac-
fore and Connerce, with 52 Account g£_$£g.Yarioue Moder of yes, froe
Aaerican Pub-
li:hingw eeapany, 1875). p. 5!. Billings writea that King Jeane I

in 162‘ prohibited the inportation of foreign tobacco ea well ea the
planting of tobacco in Inglend or Ireland. "Uhereae our con-one,

in their laet eeeaieee of parliaaent beceea haable petitionere_to
ea, that for aeey weighty reaaona, ouch concerning the intereat of
our kingden, and the trade thereof, we would by our royal power
utterly prohibit the uae of all foreign tobacco, which ie not of the
growth of our own doniniona:..And whereas we have upon all occaoiona
aade known our dialika we have ever had of the one of tobacco in
general, ea tending to the corruption both of the health and aannere
of our people. Nevertheleee becauae we have been often and earneetly
fanortwned by aany of our loving aubjecta, plantera, and adventurere
in Virginia and the Solar ialea; that, an thoee coloniea are yet but
in their infancy, and cannot be brought to aaturity, enleea we be~ '
pleeaed, for a tine, to tolerate unto then the planting and vending
of their own growth; we have.condeecended toitheir deeireez and dos.
therefore hereby atrictly prohibit the iaportation of any tobacco
free beyond can, or froe Scotland, into England or Ireland other.
than fro-.our coloniea before naeed; aoreover we etrictly prohibit
the planting of any tobacco either in England or Ireland." Ibid.,
’6 S'e . f . I

 

 

Fl'
2*:
J3
L'Z
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3:
1'5?
E5
a
9
E
g

c.n. Heclaaaa, ghg_larl Egglieh hTebaoco Trade (London; Kegan Paul,
Trench, Trainer and Co., Ltd., 1926), p. 121. -

Count (it-leaner) com, gm»!!! m, treae. 4:... England
(London1 Georga.8. Iarrap.6 0o., Lads,.1939), pp. l69~l§0. '

Ibid.
I‘ll—‘1‘ O ’ p O 265 0

Meyer Jacobetein, The Tobacco Indeetgz_ in the United Staten (New
Iork: liowGoiuebee Unioereity Drona, 1903), p.185.

Jacobeteia writea that in 179... to: wee levied oe.aanafacturea
tobacco to help defray the coata of adninietrating the national
govern-ent.~ It gave rise to an aech-dieeonteat, however,tthat it
one abandoned-after being in operation but two yearn. It wee intro-
daeed again daring-the we: of 1812, bet reeained in effect only .
eeail 1816, when the national govern-ant returned to dependence for
ite revenuee upon tariff duties. The excise tax wee not attempted
again until 1862, when the financial etreee of the rebellion inpoaed
upon the national govern-ant the utilization of all available aourcee
of revenue. " 13“., pp. 106-181. ~

The Tobacco Tax Council,The Tax lardggng!_robacco (lichaond, Vir-
ginia, 1969), p. A.

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“16., ”o 36"510

”on data provided by the Depart-ant of Agriculture tan-piled tron
Internal Iavanaa Service publicationa. Tennant notes that "Federal
tax yields from cigarettes in 1949 were greater than the proceeda
It. all internal revenue taxea for any year prior to 1918. Teaaant,
p. 3. Ear an earlier conaideration of federal cigarette taxation,
aoa T.J. flooltar, Jr., Egg-flight_ of Cigarette Tobacco (Chapel lill,
1.6.: The naiveraity e£.lorth Carolina Preaa, 1931). PP. 56-67. '

The Tobacco Tax Council, p. 5.
Jacohataan,'p. 182.
ledrich, p. 128.

Sea Egg Administrators News, I (Septenber, 1938), p. 1. Tax revenuea
Iran tobacco repreeentad a vary aubatantial contribution to total
federal tax collectiona: 1910, 9 per cent; I915, 13 per cent; 1920,
5 per cent; 1925, 11 per cent; 1930, 12 per cant; 1931, 16 per cent;
1932, 21 per cent;:1933, 22 per cent; 193‘, 16 par cant;.1935, 15
per cent.

 

Sea National Interagency Council on Sucking and Baalth, world
Conference 25 Sinking and Health, Septanber, 1967: A 8m ~51_ of the
:roceedi:g_+(lau'York, no date). Aloe aee U. 8., Congreaa, Senate,

 

I967. Bililar legialation waa introduced by Congreaanan Mona in 1969.
A graduated cigarette tax in uaed in New York City at the present
‘ho '

yimll. p ’e ‘18 e

Ibid.
3.9., Adviaory Celliaaioa on Intergovernnental [elationa, State-
raderal 0ver1appigg_ in C arette Taxea, laport APZ‘ (Haahington:

. u. 8. Cavern-ant Printing tioe, Septenbar, 196‘), p. 11.

Alan eea Jaoobateia, p. 91. In certain atatoa, lava.ara atill on g
the book- to ptavent emu fr- uiting; Tor a diacuaeion and *
digeat o! atate lane pertaining to the aale of cigarettea to ninora,
aaa U.S., Congreaa,‘laaea, neariegg . e . , 1969, pp. ABS-A90.

Ila Tobacco Tax Council, pp. 36-51.

. 0.8., ldvtaory Go-niaaioa ea Interjonernndntal laxatioaa,- State-

Mt“ “219,131? a e e ‘g ’e l‘e

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77

89. The tobacco Ten Council, p. 0. 'There ie aleo local cigarette -
taxation. Bee fledriek, pp. 132—13A, end The Tobacco Tax Council,
pp. 65-71. Local cigarette taxation in citiee and countiee aeounted
to $58.6 Iillion tor tiecal year 1969.

90. The letional Tobacco Tax Aeeociatien periodically publiehee etate
cigarette tax data on coeperative cigarette tax collectione and per
. cepita cigarette coneulption by atate. 'For additional atate data on
cigarette taxee and for general articlea on all aspecte of cigarette
teeatioe, eee proceedinge of the yearly annual eeeting of this
eeeociation.

91. For a general diecueeion of the effecta of health ecaeee on tax
revenues on the atate level, eee Joaeph H. Murphy, "Significance
of e Decline in Cigarette Bee on Tax Revenuee,” Aggrican Jggrnel‘g£_
Public health, L71 (Deceeber, 1966), pp. 38-43.

92. The Tobacco Tax Council, p. iv..

”.3 Earle C. Clo-ence, "Where the Tobacco lnduatry Stands,” Illinoie
Aeeociation of tobacco Dietributora, 1967 Yearbook, p. 33.

94. l.J. Icynolde Induatriee, Inc., 1970 Annualh W2 ,p. 3.

95. Retail Tobacco Buildere of Aeerica, Inc. et al., "Another Cigarette
Tax Increaee Meane Another Bonanza for Organized Crine, " The New
. York Tilea, March 29,1971.

964. The Tobacco Tax Council, p. iv.

’Ie. TM‘. '1 126a '1 l

98. Ibid., p. 121. Tennent diecuaaea the elaaticity of deeend for all
* tobacco peedeete be pp. 119-126. -

99. For inforeation on the diaperitiee eeong etate cigarette tax rates,
'. eee The Tobacco Tax Council.

100. Letter tron Gangreeeeen Harold C..Cooley, Chair-an, flouae Coeeittee
on Agriculture, to the Preeident in 0.8., Congreee, Houee, Sub-
. coeeittee on Tobacco of the Coenittee of Agriculture, Hearingg . . . ,
1965, p. 27. More detailed breakdoune of 0.8. tobacco exports by
. country and by variety can he found in Tobacco Situation.end in
the B.I.D_.A.'e periodical retain Agriculture Circular.

10.. WTICK, ’6 .9 . f ' l ' ’. :-

102. U. 3., Joint Teak Force of the U. S. D.A. and the State Univereitiee
and Land Grant Collegea, A National Prograe_ of Reeearch for Tobacco
(HIahington, 1968), p. v. 1972 figuree were taken free Tobacco
Situation, March, 1973.

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78

U.S., Congreaa, Uouae, Subcoaaittee on rebacco of the Coaaittee on
Agriculture, Uearinga . . . , 1965, p. 1&2.

 

Tobacco Situation, March, 1969, pp. ‘-5.

Tobacco Situation, Septeaber, 1969, pp. 19-20.

U.S.D.A., Aggggl.ggport . . . , 1969, p. 61.

fiedrick, p. 78.

Under the barter prograa $35.0 Iillion cigarettes valued at $868
thouaand were exported froa July 1,19SA through Deceaber 31,

1967. U. 3., Department of Agriculture, Annual Report on Public Law

480, Pood for Freedoa. New B haaie on Self-Help (Washington: U. s.
GovemnntTrm—_tin— 'g""'och, 1177—96 , pp. ”sf-‘39 .

'robacco Situation, larch, 1969, p. 17.

'Theae prograaa tnclude barter aalea,'lutual‘aecurity and A.I. D.

prograaa.

Data.vere coapiled froa‘robacco Situation, Septa-ber,
1969, p. 16. .

0.8.. Congreae, Bouae,_Counittee on Interatate and'toreign Connerce,
learin . . , 1969, p. 49.

Eula
IEEQF. . .. .L c " a

Figurea were coapiled by the Foreign Agriculture Service of the U. s.
Wt of Agriculture, June, 1970. _.

U. 8., Congress. flouae, Collittee on Interstate and Foreign Coauerce,
Bearinga . . . , 1969, p. ‘7.

Ib—I-Ld.’ P. 52.
Tobacco Situation, June, 1969, p. 32.

I.

Ibid., p. 3‘.

U.S., Congreaa, Houae, Co-aittee on Interatate and'Poreign Col-erce,

Egariglg , g . , 1969, p. .9.

U.S., Depart-ant of Agriculture, Tobacco Diviaion, "Tobac co in the
National Bconoay.”

 

 

 

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M31!— 11: Rooponao of the 11.8. Tobacco Induotry to _t__he .
.- em “3135371 tF'CoT'iove re} —
A. Introduction
no tobacco induotry in a political actor in the controvoray that hao
developed over the propoood regulation of cigarette onoking ad the alleged
health haoardo involved. lho induotry hao roopondod baoically tour wayo
.- J l. 'J" J
to the challenge prooatod by thie controvoroyr
1. aince a nojor baoio for the regulation of eating io
aciatitio evidence. the tobacco indnotry hao. oapporeod
ociontific reoearch to produce counter-evidence or to
. at leaot keep the ociontitic qnoation open: -:
2. propagada canpaigna againat the public claino oi ati-
. cigarette mo and individual” . . ’
3. voluntarily neoting oone of the donada of tho intonoto
favoring regulation, in order to reduce th paaaoura
for governnatal control;
&. corporate direroiticaticn to protect corporatiene- iron

the finacial conooquencoo of a decline in cigarette
oeloo. . .

lo the toll-eugeoetioeoveeiu- dime too v.8. tobacco iadoury'o
booic rooponoee truncating-health controverey ad probe ooa of the
political iqlicationo or tbooo acticno. In general tobacco induotry
tactieo baro.boon- toilette giro aha indatryithe ti- ad theraaearooo
(i.e., pronto) to “are“, into ether-new. Vol-tory indeotry actiono
are geared to prevent or at'loat poetpono pverenat regulation adait
poooible ao intone tho oontroooeq‘-betore'tho public. on thorn-o tine—
tho tobaca‘iadeotrp baa denial-d attacked act-cigarette rooearch find-
iagovand governnont or private propoaalo. the Tobacco lnduotry Reooerch
(in-itceo ad ite ouocoooor. the tobacco laotltuto. Inc., have unified

the induotry' o otad boforo the public. have criticiaod all reooarch which

79

 

 

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indicataa a ulattmhlp hm Wu aunt: .fl duaaaa. ad hava
oppoaa'd‘ gonna-nu]. tamattaa. Iaduatty aftotta ban aoufit to publiciaa
to tha “in. public that tha controvaray haa not baaa aattlad ad that
w m. m 9 ha “and.” farm Web.

n. tobacc- tadnatq ha “I: to amt ”tan-at actinmby Lta
“.1“ oath... Mum um attaqt In” an tar.
II- mason-tact tuna-um d.mauau th- industry 01*,
m «an .6 it. puma. unification to tho Wad of tha
mam;- wflta fu- dgata‘tumaxa mat ta uh that 6).,
M1... ~'; - '~ * W}.- .42.

Politic-t opp-1th: to ma). aattaa Ir dacuaa aa tha indu-
try baa-a 1a. mm ha atgaaattaa- for its prottta and annual.
01" could a.‘ aha nu ”rapidly it It. pm: mld nth: wary
Mm a bum “mmauour Iartb- £01m man. It 10cm
at in am cad by th- UJ. tobacco hm tam mm. 11:
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81

enIe nay linked'uitb lung cancer in hoIIn beings . . .

us feel it is in the public interest to call attention

to the fact that eIdnent doctors and research scientists

have questioIId the claiIad-eignificalce of these experi-

encesz .~ . .:
The TIES at the saII tiIa pledged aid for tobseeotheelth research to be
supervised by a scientist s1"hmdapeachable integrity and national repute"
and an advisory board of "disinterested scientists disinterested in the
cigarette industry. " 3 Ba-senator Maurine leuberger, one of the industry' s
sharpest congressional opponents, stated that "the TIRC furnisheda
IechanisI by which Iillions of dollars could be spread anng research
institutions to purchase (albeit subtly and indirectly) good will for the
l.

tobacco industry throughout the scientific coIIunity."

The authors of The ConsuIers Union Report on Snoking_and the Public

 

Interest have celled the TIRC "a Iarriage of research and public rela-

S

tions," and it also has been called "a Iutual defense pact among . . .

tobacco coIpanies." 6 The AIerican Cancer Society has noted that " the

T. I. R. C. is fighting a delaying action . . . to Iislead the public into

believing that no change in eIoking habits is indicated from the existing
statistical and pathological evidence, nor will be until 'direct experi-
Iental evidence' is at hand." 7 In the present section, we will discuss
the tobacco industry's research effort, public relations and propaganda.
:In response to Robert P. Kennedy' s charge of tobacco industry "inst-
tention to responsibility" Iade at the World Conference on SIoking and
Health in_Septerer, 1967, the industry retorted:
l.. The industry has pledged $10 Iillion without strings
'to the AIaricag Medical Associations' Educational and
jasearch Fund and 2. The industry has granted Iore than
$12 nillion for basic research on anking and health through
the Council for Tobacco Research-U.S.A. 3. The industry

’has cooperated with the Federal Trade CoIIission in the
‘setting up of its laboratory to test tar and nicotine

18

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92.

coatentwof cigaltttaa. .IhILiaflasaay'haa4Iadaiddailable
to the CoIIission the treIsndous technological knowhou
rad its scientists in order to help1Iake ears that figures
are as accurate as possible and 6. In the industry's ‘
'privete laboratories, Inch effort and funds have gone
into the developIent of new and better filters for
cigarettes. In fact, in addition to the are thu $22 «
Iillion Iade available to independent scientists, the
industry has iIIa :Iore than a equivalent anunt
in its own researdh.

The Tabaseo IIIIid‘I cm, in nomad-“tau l'the picture pre-
sented by these “for“ [inflating ehe “lately oimtte advertising
code We! labor} is legal: Hit of -zinhtsu'y Idlich is 'inatten-
tive' to its responsibilities." 10

I The Council for Tobacco Research - U. s.a. (research successor of
the TIRC funded by the tobacco industry) has awarded a total of over

$17 Iillion in 396 separate research grants. In addition, the financial

.a "fit1_.

¢°llifilflnt t0 t6. Education IId IIIIIIchnteaIdaaton.no£ the AIsricen Hedi-
: ' r

cal Association has ”Intended and new tunes, sore total of $18

Iillion. These tobacco industry research grants have resulted in over

11

1,115 scientific papers. industry research eapenditures also have

been used to develop better filter cigarettes which lower tar and nicotine
content. Cigarette advertising has publicised the "-1_tfc1.." that have
resulted froI.induatry repanxchn '

Research allocations hy thIrtobIono;hndasory'hevaebeantextreasly
sIall coIpared to their total revenues or even their advertising expendi-
tures. Consuasrs Unioowqops.of.therisdastxrls=henahest«esasteat critics,
noted that the $§09_thpnllpdrI110tt¢! for rsssettbain 1963 use only about
one-half of one per cent of the industry' I intended advertising outlay, and
only about half the sonnet spent for research by the. far eIaller Host
GerIen cigsrette industry. _1 Total indflflfit! research expenditures since
1954 anunt to less than 20 per cent of recent yearly advertising expendi-

tui’tl .

 

 

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83

The Tobacco Reporter anti-shed that $lZ.e5 Iillion was spent in the

 

United States.ee seeking and health research in fiscal 1967 and that this
figure increased ts at least.8l$.5 nillien in fiscal 1968. 13 The effec-
tiveness of this research is difficult to:neasure. The Tobacco Institute
eel-ed up the presenthiteetionsi . ,' '.

.80 far; in spite-sf this sessive [research] effort,
there are eeinent scientists who question whether
any causal relationship has been proved between
cigarette smoking and human disease, or enphysena.
They believe that years lore of sahenstiys investia
gation will be requireg to clear up what is indeed
new a Ieddy pictures . .,

Dr. Clarenee Geek Little. scientific directorref the Council for Tobacco

Research w» U.SsA.. found an slnest identical picture after 15 years of

scientific investigatien: .*

-.:. . the ease in kneuledge are so great that those

who dog-stically assert otherwise -- whether they

ltste that there is or is not each a causal relation-

ship [between cigsrette Ignekina and disease} are

prenaturs in jndgnent. a int ; ,
’ )

It is difficult to discuss these research efforts without at the she

tine discussing the industry' s public relations response to the cigarette

.. r

seeking-health controversy. The Tobacco Institute noted:
In fiscal 1969, for exanple, the tobacco industry s
. *on-itnsnt in this area [inst research] was nsre than
any government depart-eat . . . and adllions lore than
* the research sxpenditsteuee seeking and health-reported.
for the sane perigd by all the voluntary health associa-
-~I‘u.-M£n“.. - r . Jot , . 1 ' . .

The.eobacco industry has consistently argued for nore research. For
exaspls. Liegett 5 Bears l963. lasasl Repeat stated;

The 'great cigsrette eonerseetsy' which is presently '
occupying so such public attention begs for an answer.
When this answer will be supplied is not known. The
isnswsr will not be generated free sentinel era-est
nor enthusiastic dedication to a cause, but only free
patient coupseeat research.‘ . ' '. ' ~ *

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8‘

lesearch expenditures by tobacco conpanies for their own product

research increased substantially after-the initial wave of negative

!'

scientific findings, and in response to the proliferation of new brands
that dennnded nee scientific breakthroughs in srder, at the very least,

to sake geed advertising copy. Tbilip Harris noted, in their 1956 Annual
Report, that planned research expenditures during 1957 would be three

tines as large as they-were only three yearslago. 18 The tobacco oolnsaies
hare attenptsd to characterise their opponents as ann-seientific.: Tor
ens-els,IAIerican Tobacco noted in its 1966 Annual Reports:

At the ease tiner-the.indnstry has attanptsd to point
to the non-scientific approach of their opponents
.Innting that 'sonn of this [anti-cigarette} activity -
took on a prohibitionist and evangelictb character,
2 as distinct fun scientific inquiry.‘

In nil-they again eta-secede.”

The concern.ahoet~snnking.andaies relationship to
health is aggravated by persons and groups who do
‘not seek scientific and factual answers but instead,
unrelentingly and often hysterically, attenpt to
inpligats seeking in alneat nosey ail-ant henna to
nan.

‘ e s‘- r .‘

s
I...-

Thn tobacco industry has sought to convince the public that "after

'I'" t If f I, l' ‘5

nillions of dollars and over 20 years of research the question about

sacking and health is still a question. " The industry will not accept
,. 1 I ' \

statistical correlations between seeking and disease as anple eyidence for

I}. ‘ 1' ,
the condo-nation of their product and argues that causality has not been
proven:
In fact, even those who clain a cause and effect relation-
“ehip has been proved adnit that no particular ingredient,

as it occurs in cigarette snake, has also denonstrated as
the cause of any particular disease - -

The 1963‘ansrionn dancer.aeciety.staeenent "Cignoette Seeking and Cancer,"

explained the organisation' s actions and responded to the tobacco industry

 

 

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85

position of requiring caesal proof:

Although apokesesn for the tobacco industry and a

few scientists state that all this evidence does not

prove that cigarette seeking ceases lung cancer,

there is no other reasonable explanation for the

consistent association between cigarette seeking

and lung cancer. Responsible health agencies,

therefore, have no alternative but to act on the .

assueptien'tggt the relationship is one of cause

and effect. v .-

lssearch expenditures are used by the' tobacco-industry to syebeliss---
its public responsibility and.to back up its continued-assertion that all
thetscieaaific answers are not knoen.. They believe (unlike-health interest
groups and agencies) that setiensnagainstscigarette seekingzsre mwsrrasted
as long as questions are unanswered. In Dacsnber 1972 the industry gave
a $2.8 Iillion grant to the Harvard Medical School for a five-year in-
vestigetion of any specific effects cigarette seoke say have in the
desalopesnt of leng and heart diseases.» 23
C.1 Indestrz Public Relations and Propgggnda

~‘ln'l954, thee Presihnt'of the enrican Tobacco m Pull. Hahn
“ed that the-ai- ef industry research was to "let the results speak
for theelveafehntssst they are." 2" . The: Inc mi its successor, The
mobae'ce Institute, have been tireless in- their defense: of ,ths cigarette
dnhetry I! have ptfilici‘sad son' research and sharply criticised other
research. .Innaffeas,utheutsbanco industry has helped.ssen results "speak
I‘mmlm." LN"? "2H ,'.-.." .w‘-:‘
r The Tobacco: Institute, Inc., suifoundsd in 1.958. with the following

objentises: . .12: .- H

l. : Ten-creates batter publicknowledge and. “mending

of eh inpert-t position tobacco occupies in the nation's
u~.eeeeoey, its place in history, and its positive contri-
betiou to people in rnhneiee and. eeploy-nt.

- . t\ 0‘ .
’ C ‘ e. 0 - In. ' .s a, a \ .. I‘ ,. .I "A '

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86

2. Te.erentsra better*puhlic understanding sf facts
regarding tobacco use and health, and of the contri-
bution the industry is asking to efforts of science
to find the answers to health questions.

3. To provide a eaenn and eaterial for nesting anti-
tobacco attacks, including adsenea gevernnsnt pooh
posals and actions.

b. To secure recognition has The Tehaooe Institute, ~
Inc., as the central source of authoritative in-
ferentien concerning all aspects of the 2§ndaatry
with which the Institute is concerned.

The Institute also acts as a listening post to detect and evaluate legis-
lative and regulatory developnsuts, inforning its sunbership and orches-
trating industry response which does not conflict with anti-trust statutes.
In 1958, Edward T. Inglend, the vice president of the Institute, stated: h

. . . there is a real and growing need for an articulate
effect by the industry to keep the record sereight,to
negate the prejudiced representations of the crusaders

' wand- te tell of the pridshl centributions tobacco has 26
nude to a growing herica throughout its entire history.

Addison T. Teaenn, vice president and general counsel for brown and

Hilliaeson, has reiterated nore recently this goal, stating that "we met

I I . .3
and we will defend the tobacco industry against the nounting crusade of

!

uwarrnted hares-nut. " 27

an

" l

The Institute periodically ha flushed "fishnets lens" and "Reports
on Tobaede and health Researah." he fer-er atta‘ts to indicate the
econonic iqortance of tobacco ad the latter to indicate scientific
opinions and'etudies which question charges against cigarette enoking. 28
Tet, while claining that the seeking-health controversy is still unsettled
9T.““1."'29 the industry stated that, if sonsthing is anisa, it can be

corrected. Earle C. Clenents ex-president of The Tobacco Institute stated:

If there is sonething in tobacco or in the snoke which
eenssncancsrueenyethsrhunndi’aaeeumsuntte
know what it is. If there is sonsthing hateful, I an
emfishut then act-itises can renedy it. To date,
however, extensive chenical tests have not denonostratsd

 

 

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81

that any substance as found in cigarette slots accounts
for buses disease. . .

Hhile defending industry responsibility and supporting the need
for additional research, industry spokesaen have vociferously attacked
their opponents. The industry has been supported in nest of its efforts
by a nunbes of business publications including Barrou' s and The Wall Street
Journal. Both of these publications have opposed governnent intervention
into "matters of purely personal behavior and private decisions. Since
there is no logical place to stop that sort of thing sons of us may be

'“ 31

pernitted to view that it is an extreaely bad habit to start. Barron's,

in an editorial, eonnnnted that "What began a few*yesrs ago as a seeningly

well-intentionsd, if disturbing, effort to brainwssh the citizenry . . .

has spiraled into arcrusads ss‘aenacing and ugly as prohibition. 32

f

The tobacco industry however, has not allowed nest of its defense to

a.

be conducted by others. The following quetstious are indicative of the
tobacco industry' a response to the present challenges 33 .
Despite the unsettled state of therscientifie situation,
there are those who wish to iapose further punitive and
restrictive legislation on the tobacco industry. Generally,

they ignore what the industry has already done through
research and by voluntary regulation of its own.sdser-

rising. . . . In a- free:aociety, the voluntszy approach
is far preferable to govesnnaet regulati

In reasons to the "Report of the Task Peres for flushing and Health" which
proposed: goveranental actions in:1968, the Tobacco Institute retorted
"The report it‘s shockingly into-pernte defnnetion of an industry which
had led the way in nsdical research to east answers in the cigarette
controversy'." 3?

Addisonit. Tennnhndesaribed the present picture to the Tobacco

Growers Infornation Connittee:

4““

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88

The deplorable reality is that our unseeing Surgeon
General is in the vanguard of a formidable coalition
of government agencies, legislators, fundraising
organizations, prepagandists, and do-gooders -- all
engaged in a crusade against tobacco.

Statistics, through repetitious claims and ballyhoo,
have now assuned the face of scientific fact. Using
this statistical platforn, the Federal anti-cigarette
forces have mounted a crusade of staggering propor-
tions. Where once reasoned action followed due
deliberations, now we see evidences of an arrogance
which goes far beyond reason and due process.

Paul D. Smith, vice president and general counsel for Philip Morris des-
cribed the situation in even harsher terms:

One of the great tragedies of our time is that the
propaganda machinery of our enemies is brainwashing
not only the public but also many,many dedicated
scientists. The result is, that instead of searching
for the true cause of, for example, lung cancer, many
researchers are accepting without investigagion the
allegation that cigarettes are the cause. 3

What do our enemies have at stake? Well, remember that
the small group who generated this health controversy

and are keeping it alive have risked their careers and
reputations on the speculation that cigarette smoking
‘will eventually be demonstrated to be the cause of such
premature death and disability. Not to be deterred by
such a adnor obstacle as the failure of the scientific
proof to arrive they speak and act as if it had arrived.39

A large empire has been built, mainly financed with Federal
funds and devoted to eliminating cigarette sacking. This
aspire, governed and supported principally by the Federal
health establishment, has proved' to be a good vehicle for
anbitious public health officials to obtain funds.

As the frustration of our enemies grows greater, their
voices will grow louder and more shrill. They will devise
new tactics to harass the industry. They will seek new
allies and incite those who have already joined zhe battle
against tobacco to aske more vitriolic attacks.

we aust not let our enemies becoae the only source of
infornation for the uncomnitted - we aust present the
facts whenever given an Opportunity.

 

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89

The Tobacco Institute has released nueeroua news iteus that criticise

‘3 am. following is an...

research linking cigarette aeoking to disease.
from a critique of the March, 1967, Roswell Park Hoeorial Institute Report
on Cigarette Testing which considered acthods to detetaise the tar and
nicotine content of cigarettest ‘

The sampling difficulties, the statistical deficiencies,

and the deceptive and deluaive enactitude in the report-_- _

ing and ranking of results found in the paper are starkly

revealed. Not since Procrastaa stretched or cut travelers.

to fit his arbitrarily uaasured bed has a like effort to

distort sad overstate data been seen .

m m 12;; 13;. is criticising the tobacco industry. has ceueatod
the -iadestry'-a standard «smooth» scientific studies linking smoking
ud disease are "iasceuratevud misleading has-the hello-seas of a cough
in egress-yard." '35. .The industry's highly- esitical approach has created
as auosphare of hostility and conflict between thee and. anti-ousting
proponents that has node cooperatiaraed counts-tau difficult. ' Earlier,
the ma uaapcritieised for alasst she-.sals‘ seasons hy-m' _Q. the
advertisingjeusaal. ”herniation Tieethy V. lsttnstt. chainsaw!
run as a mans-v v-ubut hishiy ’Mictehle.”a.werdn 'Jsothisg-has been
poo-ads“. The-Journal.esntissed chukka use has-.uun-ohieuflnfom—
the. [Incl-ta dropthissiejurod defensive..toao.aad.ssy and do. ”nothing...
asse'pesitivo. :Tho industry’s current noble-s won't Just disappear . . .
namnuugicm9"5-. ~ v ... m. L,

The taheaoa industry's proble- have not gone uay. but The Tobacco
Institute has been able to at least unintel- ud filiedse the continuation
of the sciutuie eoutroeeray. In aflitiae. they hue pruutad a precipi-
tous decline; in.- cigarette salsa “eh might have resulted if their opponents

had become the only source of public information. The industry's response

"I

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90
to tho "unfair and unjuotifiod hotaoonont tron 3ovornnont and privoto 5
ooutcoo that how boon moquollod oinco tho Volotood Act” 1.7 woo onptooood
by tho induotty publication Tobacco in 1963:

Porhopo tho tino hao arrivod for tho tobacco induotry to
toho off tho 316‘!“ and £i3ht book with all tho political

tho ocononic vooponry thot_o gigantic induotry can touotolr.‘8

Tobacco induotty rhototic and roo'oatchion'ponditurothavo not ooouaaod
tho footo toi‘ood by tho ci3ototto tnkinrhoolth nontrotatoy. Ci3orotto
nautoctutotnhovo tokon otopo to toooouro tho ci3arotto onokins public.
Ho will briotly diocuoo two actiono tokon by ci3arotto nonufoctutoro to
toaoouro tho public: tho ptoution of tho filtor ci3ototto no tho in-
croaoo in ci3orotto advortioin3 onpondituroo. . . . a . .

Conn-aro lhion hao no-ontod: "mo o: tho odditioo'ofwtho prooont
onokin3 oituotion io -‘M‘Q'MF noithar muttctutot not cuotonor nonto'”
to odnit that tho hoolth chor3ot aro trua. both havo octod on it thoy U

aro. " ‘9} Tho inttoduction of filtor-tip ci3arottoo and thoir rapid

occoptnoo by tho anokin3 public oupporto tho Conouoro Union no-ont.
riltot ci3otottoo hava drooticolly oltorod tho nation' o onokin3 habito.
lnduotty onocutivoo hava boon unwillin3 to otttibuto tho rioo of. filtoro
to hoolth oonoidototiono tclainin3 inotoad that "pooplo likothon bocattoo
thoy hoop tobacco outtoi tho nouth! or that nooo ovin3o in tooto aro in-

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ouch ohnuoo. ‘59 Run: no-ontod in _o lo3ol analyoio of tho controvaroy:

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' -indicativ'o of tho olocrity with which tho public roocto
to potontiol dan3ot and ito villin3nooo to noko con-
noooiono to than. Horoovor, tho nooo chon3oovot to"
tiltato dononotrotoo tho ronarkablo tooourcofulnooo and
' rooilioncy of tho tobacco induotry.'ond ito abilitysto
alloy tho ptnlic' o fooro by nodifyin3 tho product.

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91

The‘Honitobo Bducotionol Reoeorch Council'o report, 5 Study of Ci3orette
Advertinhng, included tho followin3 connentory on tho introduction of
filtero:
Tho filter bed a polaririn3 effect on onoker ottitudeo.
There were ole-onto in ci3orette aloha which were dangerouo.
Filters renoved dongorouo ole-onto in cigaretteo. Filtero
were thereby invented with overtones of oafety and oocurity.
Irrespective of their volue in reducin3 tho health hazard,

filtero dovglopod favourable connototiono in tho nind of
conounero.

Table l indicateo tho rapid incroooo in the percentage of total
ci3aretto production accounted for by filter cigaretteo, between 1950-68.
Tho incroooo hao been quite renorkoble, fro-.oix-tontho of one per cent in
1950 to 80.1 per cent in 1970. Adyertioin3 con clain a good deal of credit
for thin oucceoo. Tho virtueo of variouo "norveloue" filtoro and tho
"extraordinary" reoearch behind then have boon heovily advertioed by the
ci3orette induotry. Since the introduction of Kent filter cigarettoo in
1952 by 2. Lorillord. with an unuouolly heavy pronotion conpai3n that
played hard on tho virtueo of itot"Hicronito” filter developed by reeearch-

53 other conpooieo hove pronoted heavily their

oro in atonic energy planto,
ontrento into the rapidly 3rouin3 filter norket.

The introduction end acceptance of filter ci3orotteo hao led to a
ropid proliferation of brondo and increaoin31y exponoive odvertioing cooto,
oepociolly for new brondo. 5‘ mu. in 1951 nine of the twenty brando on
tho norket had nore than a 1 per cent norkot ohare, in 196‘ oeventeen of
the forty-one brando (oncludin3 dual veroiono of the oane brand) had nore

than a 1 per cont.ohare of the narhet. 5’

The inportonce of the filter
trend nee noted by tobacco induotry onolyot lorry Hootton: not aince tho
3roat buoinooo depreooion of the early 1930'o with ito outcroppin3 of 10-

cent brendo hove coneunoro appeared no receptive to new cigarettoo. 56

 

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92

Table 1

Cigarettes - Estimated Output of Nonfilter and
Filtertip 1950-71 '

 

 

Year Total Output ’ ' 2 Filter
1950‘ - ~ 0.6 . 2.2
“1951 50.7 3.0
1952 1.3 5.6
h 1953 2.9 12.6
1956 ‘ n 9.2 36.9
- 1955. . 18.7 77.0
1956 V424.2 27.6
1957 662.3 38.0
“1958 3 *670.5 65.3~
~ .1959 .689.9 68.7
1960 _ 506.9 50.9
l96l ‘ 528.3 52.5 ‘
1962"' ~535.s 56.6
~196a . " 550.8 58.0 /
.1966 .3 0 539.9 '60.9
1965 ' 556.8 66.6~
1966 ’ ‘ ’“1567.3 '63.2
"1967'. 9 576.2 72.6
.;1968 , 579.5, 76.9
1969 ‘ 557.6 77.0
‘1970' 583.2 80.1

1971 , 576.6 . 82.4

6.. ClllilI‘ trap rqgggcg'giégagigg, March, 1969, March, 1971,
and anhap 1972c ". .:' . . . . . , ‘ .

 

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93
This "tar derby" of the late 1950's was basically the aharply intensi-
fied advertising competition eauaed by the proliferation of new filter
brandé flying for a share of the new growing filter market. In this period
of'ehange cigarette nanufacturere eXperimented with filters while care-
fully watching consumer reactions to reduced tar and nicotine cigarettee
with their often acco-panying hard draw and reduced flavor. 57 It ie
acted in “the 3:86:61 Trade Co-iaaion'e’atudy, A m 93 2.1.5323:
Advertiaing and Output, that 54.2 per cent of total 1962 output vat toepoeed
or ”a“ introdueed on or after January 1, 1950. 53
' ' coupaliee‘vied'vith each other ueing rhetorical unaubetantiated claims
to advertie’e their bread a different hon the othera. Varying €181“
eere Iaee‘"to be up frout‘eith the Ieaet tars, the beat filter, the aoet
filter traps." Conan-ere Union teeted tar and nicotine 'yielda of 0.8.
(N-‘S‘Branda) and 'Canadian cigarettee (8418 6mm aeveral use". during
thie period-and'coneluded thht "ei'evidence linking‘cigarettee and dieeaae
‘nounted, there out a noticeable downward trend of tar and nicotine yielde
for an typed of 6136216an 595 Metal noted that, while .666 filtere do ~
relove at leaet none df'the harnfulingrediente in cigarette aloha.‘"1abo-
eatery etudiee ahov that'thie ia'true for oboe filter-tip cigarettes but
lot for all." 50‘ The'CoIIittee on Goéernnant operatioua hearing on Falae'
and unloading Advertieiug ‘(l‘ilter Tip Cigarettes) in I938 included the
following candid enalyaie: ' - ‘ ’ * ‘
'Uhfortuuately, the ouch advertised health protection -
' that is, leee nicotine and tar -- uae an unpubliciaed
oaeualty. The filter cigarette aeoker ie in moat ceaee,
getting aa ouch or more nicotine and tar froe the filter
'than he would get fro. the regular cigarette the adver- '

tieere have pereuaded hi- to abandon - for hie health'e

 

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94

This type of blatant.nisleadins advertising led to the first sttespts by
the FTC to regulate the industry“.

A further consequence of the "tar derby" and the uncertainty and
confusion caused by the trend toward filter cigarettes was the rapid
increase in advertising expenditures during this period.. Advertising,
sxpenditures-in,selected media increased sharply fron,$56.67 Iillion in
1952 to $147.77 Iillion in 1959... 52 The advertising figure doubled again,
,fral 1959-67 to over $300 gillion. 63 Advertising of filter cigarettes
.increased from 2.8 per cent of total advertising expenditures in 1952 to
52.2 per cent in 1959,.69, : :,-1. a. t

‘, The trend toward filter cigarettes,has.bssn accelerated by dispro-
portionately large advertising expenditures. 95, Thus, for era-pie, in
l956_when-only 9.2 per cent of.consueption was of filter cigarettes 19.6
per cent of advertising expenditures was for filter brands. In 1968. filter
,sales pure 74 per_cehl of consueption and disproportionately 95 per cent of
advertising expenditures,,6§.3Advertisingexpenditures by cigarette ssnu-
facturers have increased fro-[2.1 per cent of sales in 1946 to 5.5 per cent
in 1960,_but the FTC report noted that "all of the increase in the expendi-
ture/sales ratio occurred prior to 1957 and that this ratio has releined
alsost constant;since:then,f;6? Theb"tar derby" ias ended by a voluntary
agreeeent between the FTC and the cigarette Ienufacturers in 1960; but,
as the advertisingexpenditure figures indicate, there was no.rsduction in
cigarette advertising, The cigarette sanufacturers' political strategy
includes the forlation of coalitions with supportiné groups. The core of
this coalition contains groups with direct econonic interests in tobacco,
including tobacco distributors. In addition; the industry has appealed to

other economic groups through the use of ideologv.and'propaéanda. This

A?

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95

political ottatogy io looo obviooo that Tho Tobacco Inotituto'o nowo
tolaoooo and odwottioamnto. but it probably io. ovoo’ aoro ioportnt to

tho tobacco indnotty'o offcrto. . In tho following ooction. wo will conoidor
tho indootry'o otrotogy to“ infloonco gown-ant policy. .

. tho Tobacco lootituto hao ootwod oo opolta“ for ‘tho tobacco induotry
in prooontoticoo to govotnnntal rogulotory ogoncioo no ‘congroooional
[bootingm no tobacco indootry'c rooponoo _to govornoootolptopooalo hao
hoon uitiod undo: tho loodorohip of thio trado aooccioticn. frho thtoo _
prooidonto of. tho Inotitnto (Gogcgo V. Allan, hood of tho 0.8. Intonation
Money ocular Pmidont Eioonhowor; Borlo C. Gil-onto. for-or govornot of
Kontucky no 11.8. Sonato‘n ac proooatl'y noroco 30mm, {on}: Forth '
pomlina_ Congroooon) hawo octad ofioctiwoly to block or rotord gonzo-ht
action unfoworoblo ito thoir intorootog Diohl co-ontcc: "Undo: ouch
loadotohip tho influonco of tho tobacco induotty with tho todorol gnom-
not to trooondono. ”68

A. _Loo Ftitochlor. in hio book m~ nd Pol tico oli

| C ‘ . o . ' C‘- ‘ | o I ‘

:51— tho !o_dgrol ”to gerocz. hao rotorrcd to what ho calla tho "tobacco
ooboyotoo." Policy in ‘thio _ooboyotoo woo oodo "in'o triondly opirit of

triondly ndflqciot cooporoticn botwoon foooll oopoto ct Gcngrooo, Fh‘.

" 69 no wroto:

buroaoctacy. ad tho intoroot group cmity.
‘lho tobacco ouboyotoo includod tho paid raptooontatiwoo of
tobacco groworo. notkcting organizationo, and cigorotto
unufocturoro; congtoooncn roproocoting tobacco conotitn-
_oncioo; tho loading nofiaro of four oubconittooo in '
Congrcoa - two appropriationo oubconnittcoo and two oub-
otontivo lagiolotivo connittoco in each how- which
handlo tobacco lagiolation and related appropriation;
ond cottoin officiala within tho Dcpottnent of Agricultnro
who won involvod in voriouo tobacco program of that L
dopartoont. lhio woo a oooll group of pooplo wall known"
to ooch othor and knowlodgooblo about all aopocto of tho
tobaccooinchotry no ito tolotionohip with tho gourn-
“to

 

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96

The publicity and concern eccoepenying the sacking-health controversy have
to sole extent ended the "privitisation" the the tobacco subsystel and
opened it to the critical perusal of outsiders and the countervailing
power of opposition groups. Nevertheless, little has been done to change
the systen itself. The absence of sufficient payoffs to anti-tobacco
representatives helps to shield the systen of reciprocal benefits fro-
outsiders. Further-ore. tobacco congress-en on appropriations coenitteee
have eade the legislative review process eost difficult for agencies such
es HRH which say have raised the congress-en's ire by their anti-snoking
progress.

The Tobacco Repgrter. in an article "Tobacco and Politics," appraised
tobacco'e political power and slightly revealed one of its sources. They
noted particularly that Representative Carl Perkins of Kentucky heads up
the House Cos-ittee on Education and Labor, the committee that works nost
closely with the Depart-ant of RE". 71 Any HEW efforts to expand its anti-
sloking progren will seat with powerful opposition fron this cosnittee

72
which say also affect passage of the depertnent's total budget.

In discussing the politics of hunger in Alerice, Nick lot: also has
described the dynanics of the Agriculture subsysten of which tobacco is a
part: i

The House at large rarely has challenged Agriculture

budgets because lost nonfara bloc nelbers find the

subject too coeplex or dull, and rarely take the trouble

to inforn the-selves about it. If none eenbers. or the

public. are roused to the point where a challenge develops,

the House's cosaittee chair-en generally pull together to

defeat the love. Connittee Ienbers follow to insure that

they will have the chair-en's support for their own pet

bills -- and to keep sacrosanct the whole systen of nutual
support and protection.73

 

 

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97

Elisoboth boot has rathor succinctly snosisod tho ssassns for tho tcbocco

industry's succoss in doaling with Congroso in 1965:

l ‘ ' '

Tho industry brought it off bocauso tho tobacco lobby
ooployod uutoolly skilloa .d oollaorganiood strotogy:
bocouso it hirsd sons of tho boot logal brains and boot-

' . sonoctod pocplo in Washington to holp with tho tight; .- '
bocauso it succossfully groftod into its built-in con-
grossionsl-strsngth fro- tobacco-producing stotos-os
sutficiont nutbor of congrossnon to who: tho issuo uos
.oot ononi hoalth. or soon oi tho tobacco industry,
but ono of. curbing tho powors of rogulatory agoncios.
~.oh as tho no; and bocanso it succoodod in thrwing
a hsavy socks scroon oromd tho hoolth issuo. And
finally it was tho industry' s good forty: that roosidont
Johnson tonsilsd alooi fr- tho battls. .
Connosntal rogulatioa is csotrsry to tho notion froo ontorpriso

3 ' J _. a. r'

tradition. toll-rogslotioo is tovorod our gssouasntol involunont ovon
than ssgolatioo light bring substantial bonoiits to a moosus proportion
of tho yopulotin - s-kors and thsir frisnds nd rolativos. Tho ocononic
argutnt. against'ioogulotioa- is .oupootod-.by..o philosophioal. arm-tot which
smut-pumice. togulotioa. atho tobacco industry hassottrootst soot
support iron othor soooonis groups which syyoso guarantor rogoloticn.
chosso ~”broad. baood. coolit‘iomoi busiaossv groups hos boos tot-ad. ;
.. no tobacco industry'umytosoto proposod gottrno-stxogulotsry-
ogoooy actions boson-shoot prodictoblo. tho goosrol tssyonso goos sons.
thing.” tho-,tolloniog: .3. . .. n-
l. In tho snout stoto oi sciootiiic hoovlsdss about
sucking ad hoolth. tho ruling contsqlotog by tho
[rec] could bo arbitrary it tho onto-o.
2. It woo:- hrbitrary action Iodoxby o soall group of
unoloctod buroaucrots who accoptod tho fcrogono -
. but still uptown- conclusion. of tho onti-sooking
lobby obout cigorotto sucking.

3. Furthoroors, tho agncy' s mount is n obvious
{throat to- usurp lhl- csngsoosisool (action.

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98

4.‘ Tho industry” also throotons litigation "against what
is ollogsd to bo an illogal action.

Tho industry has nods o nubor of offorts to oxploin tho prossuros
ollignod “against it. Tho industry has oxploinod sway oppononts by calling
than soolots and fastics as woll as buroaucrots who aro sttsating to _
ougnsnt thoir own powor. Moro rocontly Tho Tobacco lnstituts's Prosidat
horaco Kornogoy has attributod industry cpprossion to tho tnood for a
scspogoat by frustrotod voluntary hoolth intorost groups: I

In tho 50's tho sood of. roprossion fall on ooro fortilow

soil. Although tho nsdicol indict-ant was statistical,

it tillod on aching void. It provided a oosy answor _to

a problon that porploxod politicians. public hoolth

officials. ad tho public aliko - tho failuro to discovor

tho couso or cuts of cantor. Vory iaportontly. tho

cigarstto was a usoful targot for tho nony voluntary .

hoolth ad wolforo groups dopondont on oaotionol oppo'ols

for fund raising. Instoad offiocts. tho Morican pooplo ‘

havo‘ boa givon a scopogcot. ' ” ‘

Whotovor industry oxplanation is usod‘ to saploin him: political
prossuros.‘ tho industry's politic‘alistrat’ogy h‘os sought'rotio‘nial‘ly to ‘.
p'rovat govornoat policy which would intorforo with thoir businoss. Tho "
Tobacco ‘lnstituto has plannod' ad orchostrotod both industry and fovorablo
sciontific tsstioony at fcongroosio‘nal 5...“... .John ‘D'. ‘Morris notod in i
a how York Tints articlo that "syapathotic co-ittoo noobors havo' boon fad
quostions, rosoorch ootoriol ad o'rguoats. Vitnossos hovs gotta varying ‘
dogroos of holp in pro’poring tostioony ad aticipating quostions.” 78
8ono witnosoos havo boa rocruitod by tho industry and had thoir oxponsos
paid. Othors havo boon paid by Tho Tobacco Instituts to proparo thoir

congrossionol tsstioony.
9. Voluntary Industg Actions
um. tho tobacco industry has vigorously opposod gcvotnoontal rsgula-

tion. it has ovon aro vigorously ‘dosirod uniforo' national rogulation. ‘

 

 

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29

Mt atate' actione could create, chaoe for the tobacco induetry and
all-rely inereeae their coata. The induetry favora federal action to
'pteventgarbitrary aad poaeibly capricioua etate and/or local actione,‘ In
fact actione by the federal govern-en: have helped reatabiliee the an-
~vironpent in qhich the tobacco industry operatee after the ranking-health
controveray had_etieulated varying propoaala tor local control ot_cigarette
.advertiaing and labeling, Gabriel Kolko and Jaaea Weinetein have argued
.that large corporations have favored weahatederal regulation to prevent
_chaotic local action: which would intertera with their busineea.~ Thed”.
tobacco induatry in acceptingiweak federal regulation hae received federal
protection from local regulation in returnt_| ., w .‘ ‘ ., :1. 3

The industry haa fought to prevent local action, keep the controverey
open by continued well-publicized reeearch and prevent open recognition of
the independent regulatory agencyfle authority to act_by voluntarily E
.cooperating t°.9F9V9“9r§Ft¥°ut.rF°§ example, Kornegay hae said that "the
:way to close the_knowledge gap is through a cooperative effort between the

"'7? while the eaae article quoted Robert

industry and the govern-out.
,Finch, then Secretary at HEW ea stating that "I believe that industry and
'governnent working together offers great proniee of finding the anewere

we need. I_an confident our joint effort will yield a cooperative research

progran which strongly promotee the public intereataf

Cooperative indhdtry4gdvéihhgh: research thus has ehifted part of the
financial‘burden to the governnent and further htrengthened the industry's
‘hrguIEnt that iihii‘is a “knowledge gap” and/or that a ‘healthful cigarette
can be developed. IWhile thie cooperative reeearch continues (or is planned),

han‘the federal government take beaningful action to reduce cigarette '

‘coneunption?” The price of industry cooperation lay be targreater than

(C
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tho oigototto actor chin totthot ’cotpocic; my hood oocioino. on
no amount otooptod tho induct-y vioo that cocooutyooot ho prom
bolooo action can bo. tokoo7~ «Mon-1y. tho no and tho rcc which but
IttoQIod'oo oct bovo‘oot occoptod thio pcoitioc. cor boo HEW; yot tho
Doportuot of uricoltoto cation” ito tobocco cuboid, no oxyott mgr-o
oo an co ito oothotic. no coco oorvicoo tortcbocco ton-row um.
otboo oo-ploo of tobacco iooootryncopoootico ooto .tho I‘m-utlto'cou
on tho To: Dolby in 1970; thoracic-at to .volutotiiy diocoooo tor and
nicotioo totiop- io 1970 no tbomnoonoot “.1971 to «manly: ploco
o hoolth ionic. in print“ ciutotto.odvootiooodto.- manna-onto;-
coccioooooodzot otloo pcicto otthiootooy... .~:

Voluntoty mototioc by tho tobocco ioduotry boo boon occoptod by
tho ”amt in color to ovoid ptoiocgodaouu litidoticn which con-
otntiy boo 'bon'thoootoootby tho indootty. * Voluotoof ogrooont oloo
oporoo tbo moi-attach A: tho difficulty cocoof‘tottlnoodod to oooitor
tho tobocoo icduotty. Tho PIC notod, for can-91o, thot with tho volmtory
“5.51;“... i..g1;.‘.:,‘...;..-.;.;.* ‘ ‘ ” ‘ ' " ‘ '

| L . . tho mm... nu bo m.- to onloy ocbotoctioi
:mo: 04 {undo ma Could omnioo m boon biotod
to hooricgo cad court procoodingo to cooling with “90
- «com. probi- oolotiog toaoiurotto oduttiotcg. -. -

Shocoooo otpumooot topictioc oro high, yot pothopo thoy oto nocoooory
if loci-ml amniotic to tobo plooo. Votnotooy anaconda-without
hon-tic molitioo on'bc bookoo-soooily:no out no no FCC “outdoo-
oith coboccotooQ-ioojmicoo littlroooooity thot thoooogooooonto will

not .boloioiotoo. Random-null; cigctotto-mctootorooo but

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3; 9d) 919w NLJJF131003 ykxauL“i cannon: 30 ouiquuxa Tuxjo

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buhsun uniia bub vjluaillib ed: 30 Lnum Juamausvoa as: 821843

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bsjovvb nsud 3vy$ ua?ufi¢zjn blunw fiaifiw agnui bus Istoqnnn
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.gulaijwavga sjjujggiu 0] finififllu1 anldciq BUUIISI

a wad) egafijaq 332 .filfi 919 nufijsiagni 3x9m313voa 30 cnaoa a“!

inguauxja 21L unis? .ufibfq GJr: 03 at nolsaiugcx luignia:um 11

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101

volataotad to cocporata. * to fact. thora ‘haa booo a good daai of ccdcorc
that individual cigaratta ccopaiao would continua talawiaioo and radio
adurtioiag. attar thait lanai alioiaatioa by changing tho caoa ad '

padtaaih. at choir aohiog tobaccoo (which cal to iagally advattiaod) to

Woo of popular cigaratta brando. 81

E. Tobaccola uotgz Divaroiticatioo .
to mat at tho muopiring proopacto for iocraaaao in cigaratta

‘I 1.

cocouaptioo. tho iaadiog tobacco ccopaaioa hava acknooladgad tho ooricuo

throat pooad to thair proaparity. ad poooibly to thair vary ourviwal. by

divaroityio; into coo-tobacco fialdo with graatar growth potaotiai. 82

. H ‘ ‘
‘Iha rapidity of. thia procaao appaora to icdicata "tho frak aoauaticc
[by cigarotta Iaufacturaro] that thoir buoiuoao futurao in tobacco hava

.83

bccooa oohawhat dwiouo. Hapa wrota. in a attaat to iotarprat

inchotry otratozys

If thia [divoroiticatioc] io intorprotad ao a hodga

againot tutura lcaoao cow ragardod by tho iodoatty ao

incvitabla than thia fact aloha. cyan in tho aboanco

T of cthar oaoitaataticca. ouuaota that tho cigaratto

intcrooto nay cot ba abihto fond off tho oodicai

ooalaaflt iodafinitaly.
Quito to tho contrary tho oodical ooolaught IQ bacon rolativcly uni-pot-
tat ao tobacco ooaaiao with incraaoios dioaraifiaatioo lay boob-a iooa
iotataoaod ia ad roliat a tobacco oalaa. thia praooot aoaticn diocuaooo
tho oxtaot and mm of thia diwaroificatioa ad ito poooibla long-raga
pcliticai aftacto. -

do oarly ao 1957. P. Loriliard oncomood to ito otochholdoro that
“wa aro . a a ioyootigatih' tho pcaoibility and advioability of divaroifi-

cation ad aro cccaidario; whathor oxpaoaioc into cow fialda would bo
' as

I H.

ouitabla ad adyatagacuo for our Coopay.” Philip Horrio caoo to tho

rm. .h‘s. 3.1mm}

 

ntoexcs 3O ififib boa} 5 xu;i whi 913': .7333 31 .DJBqucoa OJ buxosSHUiov
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01 (bUBiJXquB 2:155»; 9d an: 5915») noausdoa gaixama 11933 30 gniahianq

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.anwhto oajsrngla Inluqoq 30 soon)

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ainstrhtgia 91:3 Jud: zzjczzzquuo .szmlrmsesllnnm ”(misc 30
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102

cane conclueion in 1959, announcing that "it ie management'a conviction
that a oound program of. diveroification will benefit the operationo and

u 86

aarningo of Philip Merrie in the year ahead. American Tobacco alao

can to thia oama concluoion oomewhat later. otating in ito 1963 Annual

mart:

. . . the Company and ite otockholdero would benefit

tron a well-conceived diveroification and acquioitiono

program. if thia could be carried out without undue

diotraction of. the management from ito primary reopcnoi-

bility, which io the maintenance and growth of our

billion dollar tobacco buoineoo.
Interestingly enough, thie otatement wao made after the releaae of the
1966 Surgeon General'e Report on Smoking and Health. The actiono of the
other tobacco companieo alao indicate their acceptance of diveroification.
Par from enphaoizing their dedication and devotion to tobacco, these
ccapanieo have attempted to change their inageo by emphaoizing their new
diversification. 88

Five out of the air najor United Stateo tobacco conpaniee have gone
on for ac to change their corporate name aince the ioouance of the Surgeon

General' a Report.

9.1.4. _a... £22. _Na-e
R. J. Reynaldo Tobacco Coqany R. J. Raynolda Induatrieo
Merican Tobacco Company America Brando Incorporated
Philip Morrio Tobacco Conpany Philip Merrie Incorporated
Liggett 5 Myero Tobacco Coapay Liggett & Hyero Incorporated
P. Lorillard Tobacco Company Lorillard Incorporated

 

Brown 5 Hilliamoon Tobacco Corp.

Philip Merrie otated in ito 1969 Annual Report that "we conclude the

" 89 Reynaldo

year ao a diveroified. nulti-naticnal tobacco company . . .
1969 Annual m ohowo for the firot tine "the reopective contributiono

to ealeo and eamingo tron . . . ito principal operating component"

 

 

 

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103

tobacco, traopartatian, ad other aourcee (food and beveragea, aloninun
ad packaging, and corn refining aperatiana)." 9°
The Tobacco Rmrter 91 hao given the following eetinateo of the per-

centage of nan-tobacco oalco by the air oajar 0.8. tobacco canpaniea:
1968 1969 1970 1971 1972

Reynaldo c T ‘73— —2-5— .75- T
mac... 23 22 2!. ' 32 45
Philip lbrrio 17 32 23 23 19
higgett d Myera 25 36 53 53 60
P. Lorillarl ; 5 2 taken over by Loow'o
drawn a Williaeon 0 k 6 6 8

Hora detailed figureo have been gathered fron annual reportal for the two
largeat cigarette nonufacturera: Reynaldo and American. The figureo in

Table 2 indicate the percentege of net aalea and operating ravenneo from
non-tobacco operationa, ae well ea, the percentage of total earninga iron

92 Theoe fignroo chew the iacreadoingnce-tobecco

non-tobacco operation.
activitieo of cigarette naufecturing fine, but alao thct diveraification
nay be tapering off anong acne nannfacturere.

P. Lorillard ia now a anboidiary of Loew'a Theatrea [now called Loew'a
Corporation]. no 1e_w_ Egg! 23.3.9. reported that "[Larillard] eaid frankly
that the reaaoo it waa willing to each ehelter in a conglomerate wee that
the future of the tobacco induatry in the United Statee aeened eonewhat
doubtful.” 93 Brown 8 Uilliaaoon Tobacco Coaany, the only tobacco coqeny
in the United Statae to heap the word tobacco in ito corporate title. io
owned by Britiob American Tobacco.

Anarica cigarette nannfacturero have purchaoed aaveral large well-

hnowa non-tobacco conpeniea in their efforto to diveraify. The following

[Di

mnnimuIa .asnnjoved bns boo?) esovuna oefifo has ,not3n310q9nh13 .ooosdoj

C9 ".(anoi1sjoqo :nlnllao "103 bus .gnigsdanq has

, 19

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SYCI IYQI OTDI 0301 8dfil

"Bi" :2 63 '“JE‘ "11 chicngcx

EA £8 £8 23 ES nsoloomA

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8 6 6 d 0 noannllliw d nwo13

 

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~n§wofiu3 sflT .vilarsvih oJ 331n?19 olefin n1 enjnscnoo oaoadoj—non award
8 c .

 

 

104

Table 2
Non-Tobacco Rav6nucs and Burningq'

~2 of cutting. k:.-.§on-
tobacco-opprationl

X of not 3.10. 16d Operating
mum fro- non—tobacco

operations
Ycar 3.12614: Anniic6n ggzgolds titties:
1966 16.2 14.9 I ‘13.6 6.9“
1967 19.0 [22.5. 13.3 f 12.6
1968 21.0 4 22.3. 16.6 13.0
1969 . 26.1 . 19.7, 17.6. _ 15.7
1970 27.0 . 23.1 16.1 - ' 15.7

1. Compiled fro-IR.J. Raynoldl Industrico, Inc., 1969 é!523_,
222;. 1»- 26-27 12121251122931. 1» lbs-31.9.1.2 3212251.
Data for Alnrical Brands Inc., val takcn tron thgix 1967, 1968. 1969 and
1970 Annual lcporta. . , p 1 , ,

$01

S sfdfiT

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E“ 6.8[ 8.£I E.SS 0.91 (091
111; O.{I 6.61 {.33 0.1S 8691
(.61 6.YI Y.QI 1.63 9681
Y.EI 1.61 I.ES 0.VS CV91

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Jitrsm't‘; 1.591098 .5739! has M -q «3.72.338 22:20.5 95.2.1. «VHS 4*: dams!

has écvj .BhPI ,Ydel alsdj mo13 unis: 25w ..3n1 abnsxa nsolxsmA 10} 5355
.2310qu IsunnA DY?!

 

 

105

lieting indicetee the renge of diversification that has taken place or

bee been anomced in principle:

aeriea:

Liggett 6 Hyere:

r. Lorillerd:

Brown 8 Hilliaeon:

hilip m:-

leyeelde:

Sneehiee lieeeite Inc. (Saehine Kriepy Crechere),
Jaee 3. Been Distilling Co. (Jie Bea -- Kentucky
Streight Barbo- Hhiekey). Duffy-Mott Co., Inc.
(Mott’e Apple Seuce, Smeveet Prune Juice). Heeter
Lock Co., Acne Vieible Recorde (filing equip-at),
Svingline Inc. (Stepling nechinee), w. R. Ceee 6

he Cutlery m. The ad:- Jerpee any
(bend-cere producte).

Alla Producte Coepeny (Alpo Dog Foode), Perk Poode
Co., Inc. (Vote conned dog finede), Ietioeel Oete Ce...
Hercury Hille, Inc. (roon-eiee ruge), Brite Induetriee
(notch bade) , l'eddingta Conn, Cerilloe Ieportere
Ltd., Auetin, Nichole 6 Co., Inc. (e11 liquor corp-
oeetione), Ierl Grieener 60., Inc. (Blue Latre hoae-
hold cleaing producte).

Golden Nugget Cady Co., Reed Cendy Co.

Vite Food Producte (food epecielitiee). Aleutien King
Cab, Kohl Com (e an. of “ne'er-emu).

- m Genety Ieeer Coa‘ay (Ga, n.1, lereeae &

Iver-Reedy Reeor Bledee), Clerk Cue Coepeny, ASE
Nicel Indeetriee, Hikelie Ceaay of Irena, Beet
Ger-eny (e epecielty cheeicel eeker), Hiller Brewing

Capay (Miller Highlight Beer), Borne-Vite Coupeny

(eheving producte), Hilprint Inc. (peckeging uterine
hr inetitetionel ad cone-er food producte), 'rrae-
vieion (grephice end vieuel eide for the educetioe
field), .Xech Induetriee Inc. (epecielty edheeivee end
chenicele need in textile eenufecture), Nicholet
Peper Conpay (gleeeine end epecieley pepere), lieeia
Viejo Coepeny (new co-uitiee, lad deulopaet ad

“lake-e reed (Vet-at leid Iyrepe, iyo'l-Iiee Deeeerte,

College Inn end Vegenoto producte), The Chm King
Corperetien (orientel etyle foode), Filler Producte
Inc. (eneck foode), til-co Peckeging Pilee (vinyl
peckeging producte), Ichea Indnetriee, Inc. (See--
Lad Service, Inc. (conteinerieed freight traeport-
etioe), eariea ledepadeet Oil Ceaay, united

Stetee Lieee , Inc.

Cigerette eaufecturere hue eought eleo to increeee their foreign

eelee through eerketing end production egreenente with foreign conpeniee.

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106

be wey the)I do thie in. through .eetright.percheeee of foreige eoepalee
aeh ee aeeioa Brade‘perchae of e eatrelling-intereet in Celleher .
btd.. the eeoeed lergeet lritieh toheeco doepeey. There etill eppeere to
be good growth potontiol. for apart. caeeeptia «a «In outeide the
united eteoee end.deerieee.eeeoieotneeee ere etteepting to teke pert ie
thie growth. 9".

inteneire diuereifioetion peegreee ere continuing even though‘eoet
fade-try eelee eed reeeedee ere etill derived free.eigeeettee. nor .
ere-ole. in 1966. Liggett a Hyeee notified ite etoekholdere.thet "re ere.\
continuing our breed eereey for edditieeel'divereifiteeioe opportunitiee.
He here edded epecieliete to our owe eteff end ere doing oeteide eerwicee
u ieteneify our eeernh for dainble ecoeieieiae."-95- : - - .. '

Diveeeifieetien,hee helped the tebeeee iedeetty.gentieee growing in
eplee of ieereeeieg.teeetiee end.prepegeede-egedeet cigerettee.‘ Robert B.
Uelhee. pteeidat ad'eheiteaef the hoerd other“. Brendeyeeeeed' -
thet hie, ceaay'e prieeey. ohjectiwe ”it eepaeien by divereificetienaleto
indeetriee with m ”mun." 9‘ .
. lemtheleee, aeriea cigerette emfeeteeele rennin highly (if ..
decreaingly) dependent upon tohecco eelee ad continue to defend their
product veheantly. The _l_9_6_9_ Delgado 9.1222}. 3.22253. eteted thet "deepite
the uneubetentieted etteeke egeinet the induetry in recent yeere. end
deepite the unfeir tee burden thet it beere. tobecco reeoine e good
mm." ’7 Welter hee noted. however. thet the nerlutplece hee one in:

”chage or perieh.” 9‘

The cigerette eenufecturere heve node the decieion
to ehage ad ere repidly puming thet goel. They ere fighting egeinet
propoeed policiee thet would leed to e repid decline in their cigerette

eelee ad profite in order to ellow theaelvee enough tine end reeourcee

601

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107

to buy and urge into noro lucrativa fialda. A good proportion of. tha
noncy provionaly apant for cigaratta televiaion and radio advortiaing will

probably ha and to halp financa cmtinnad divaraification. 99 Nautican

Brando. for aaanpla, apcnt “6011111“ in 1970 to divaraify.loo
Tho long run political conuqnancaa of divaraification ara praaantly
hiddaa by the very ”unity to continua diminution. To m1!
acknowladga tho haaarda of cigaratta anoking or to acdniaaca' to oovara
gown-ant policies would Jupardiu tho wry tub-I that “halting divarai-
fication (nd a domhgxolianca an tobacco-innit) poaaibla. Divarai-
tication ia naking tobacco conpanica axtrancly inportant in a nudnr of
othar iadnatriaa including liquor. food producta. and dog foods anon: .
10th."; Tho long-torn trand nay wall libarata tobacco nannfactnrara fron
(a ralativaly atagnnt indnatry and tha praaant onoking-haalth throat and
«Ink. than otrongar tinncially ad non inortut politicallyvth- our
baton; Continuing divoroification will avantnally naka cigarotta num-
factoring a anallor We of inmatry protita ad proapocta. Aa thin
taboo place. it up be “notod that induct; monitioa to pnnmtal
ragnlationof cigaratto noting will ba raplacad by incraaaing cooparation.

* ‘ “I

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1.

2.
3.
4.

3.
6.

8.
9.

10.

108

Footnotes - Choptor 11

r

m oirth oojor cigorotto' unnfocturor Liggott-and Uyoro did not join.
rhoir Vico Prooidont in chorgo of roooorch Dr. Frodorick I. Iorhio io
qnotod ao ooying: ‘ ‘ '

do far no I can Vinolioo tho 1.1.1.6. boo booo Iootly
' a publicity organization. 11on hovo givon oilliono to

variono roooarch analyoto, hot it io vory difficult to

know what pnrpooo tho may hao oomd. .

Roth Iroéhor _o_t_:_ al., tho Cour-or'o Union 12223.! g; Ming and 53;
Public Intoroot {about Vornon, Nov York: Cooouooro Union, 1533). p. 112.

Ibid., p. 107.
Ibid.

Harold 8. ‘Diohl, Tobacco ond Your lloalth: I!!! Sucking Controvorgz

(Nov York: McCray-Hill look Conpony, 1969), pp. 181-182.
lflcIICr _'_E .91" ”o 107'108o

Bnoan Longor, "Tobacco Activity Haoko Unroot in Indnotry ao Cour-ant
Soaking study io Proporod for Roloaoo,“ Scionco, mu (“or 15,
1963). p. 9&2.

Ironhor gt- _o_l_., p. 112. Congrooooan Horrio K. Udoll oaid in 1965 that
tho porpoho‘ofvtho mt hoo boon to "mini-13o tho ioportonco of logit-
ioato ociootific findingo and to qnootion tho truth of ubiaood roooarch.
‘l'ho Co-ittoo'o oain thono io 'bnt tho facto oron't all in.” 0.8.,
Congrooo, lonoo, Co-ittoo on Intorotato and Poroigo Co-rco, Iooringo,

Cigerotto Loboling‘ggg_odvortioigg —- 1965, 39:3 Cong., lot too... 195 .

. p. 26.

‘rho Tobacco lnotitnto, "Tobacco Inotitnto loplioo to m Chargo of

-Indnotry Inottontioo to Iooponoibility," lovo Ioloaoo, Ioptodor 11, 1967.

IMO.

mu Tobocco Iootitnto, "Aftor Milliono of Dollaro and Ovor 20 Yooro of

loooorch: ‘l'ho Qoootioo About flocking and noolth io Still a Qoootion."

" _1'h_g_ _lo_v_ York Tinoo, nae-on 1, 1970. (Advortioo-oot.)

11.

Ibid.

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.EIJY

._.-

 

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-’ ——

 

V1

 

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24..
25 .'

26..

27.

109

Brecher .: .1.. pp. 116-115. Also ... "Embattled Tobacco'a New
Strategy," Yong, January, 1963, p. 131.

"How Close is an Improved Cigarette," Tobacco Rgorter, XCVI (April,
1969) .

The Tobacco Institute, The 52'. York Times, December 1, 1970.

Dr. Clot-co Cook Little, Scientific Director of the Council for
Tobacco Research - U.S.A. , asserted that "the gaps in knowledge are
so great that those who dogmatically assert otherwise -- whether
they state that there is or is not such a causal relationship --
aro premature in judgment." The Tobacco Institute, "Bow Huch is
Known About Smoking and Health?" The New YorkT £2 February 28,,
1969. (Advertisement. ) _

The Tobacco Institute, _Tl_1_e_ 551 York Times, Deco-her l, 1970.

Liuett and Myers, 1963 m nepgrt, p. 10. Also see R. J. Roy-
nolda, 1966 Annual Emu, p. 3 and American Tobacco, Annual

Report 1966, p. 15.

 

Philip Morris, 1956 Annual heart, p. 7. Also see American Tobacco,

 

1955 AM Regrt, pp. 10-11.

American Tobacco, .3325 52229}. m, p. 8.

Andean Tobacco, 1967 Annual Report, p. "3.

The Tobacco Institute, The New York Times, Deceebor l, 1970.
Antics: Cncer Society, Inc. , "Cigarette hokin; and Cancer,"

Smoking and Health Reference Book Canada (Ottawa: Queen's Printer
and Controller of Stationery, 19,610 , p. 54. . .

 

I. J. lay-holds Industries, Inc., 1972 MMB p. 6. Floating
the study are: American Brands, Inc., Brown & wilili-son Tobacco
Corp., Larus & Brothers, Inc., United States Tobacco Company, and
Tobacco Associates. Noticeahly absent is Loewe, Inc., which owns

P. Lorillard Tobacco. See Tobacco Iggrter, C (January, 1973).

 

grocher _e_t__a_l_., p. 107.

Edward P. koala-d, "Objectives of The Tobacco Institute, Inc., 11:2-
in a of. The Thirt 8_e_____cond Annual Meeting, Rational Tobacco Tax
Association (Chicago: Yoderation of Tax Administrators, 1959).

Ibid., p. 35..

Address of Addison Y. Yeoman to The Tobacco Growers .Inforlation
Co-ittoe Annual. Fleeting, November 6,1967. .

' J

 

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28.

29.

31.

32.

33.
3A.
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36.
37.
38.

‘0.
61.
62.
63.

110

See for example, "State Tobacco Taxes Doubled in Seven Years:
Cigarettes Have Becose the Subject of Tax Esploitation," Tobacco
‘News, V (April, 1963), and "As Tobacco Goes, So Goes the Retailer,"
Tobacco News, VI (Fall, 1966). There were twenty-four issues of
Reports on Tobacco and Health Research beginning in late.l957 before
being suspended in 1968.

s... for example, The Tobacco Institute, “The Cigarette Controversy --
Eight Questions and Answers," nailed to R. J. Reynolds stockholders,
May 28,1969.

Berle C. Clements, “Where the Tobacco Industry Stands,” The Illinois

Téesociation.ggrzpbaccg_Distributors, 1962 Yearbook, pp. 30-32.

 

”Editorial: Breaking Bad Habits,“ The Hill Street Journal, Deco-bar
28,1966. Also see similar editorials - flTThe Snoking Threat," The
Wall Street Journal, January 14,1966 and "Behind the Bloke Screen,"
The ”Hell Street Journal, March 16,1964.

"Dangerous Lengths: ‘The Federal Crusade Against Sloking Has Gone

Too Far," Barronfis, October 2, 1967.

Also see Diehl, pp. 217-229.

Clelents, pp. 30-32. '

Statesent by The Tobacco Institute in connection with "The Report
of The Task Force for Sucking and Health, " News Release, August 16,
1968. . .

Tea-an, p. 3.

‘Ibid., pp. 5-6.

Address of Paul D. Smith (Vice-President and General Counsel Philip
Morris Incorporated) to the Eighteenth Annual Convention of the
Burley and Dark Lest Tobscco Export Association, October 3,1967,

p. 3.

‘Ibid.

Ibid.
Ibid., p. 9.
‘Tbid., p. 11.

See, for example, Correspondence between The Tobacco Institute and
The American Cancer Society, Fobruary 27,1970 and April 29,1970;‘
and The Tobacco Institute, News Release, October 12, 1970 over the
alleged pressture and erroneous disclosure of scientific research
before publication. Letters were also nailed to labors of Congress
explaining the Institute's position.

 

 

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' Advertising: _A_ Re ort Subeitted to the ”that— of L___ational

111

The Tobacco Institute, News Release, no date, but apparently 1967,

p. 30. The Institute also reports on outside eaterials criticising
governeental actions and scientific reports. Also see the following
users releases of The Tobacco Institute: "Tobacco Institute Issues
Nine-Point Critique of New Public Health Service Survey," May 1, 1967;
"Institute Says Much Recent Research Does Not Support Anti-Seeking
Positions," August 21, 1967; "Seeking 'unieportant' in heart Disease
Prediction, New Studies Find," Novedaer 6, 1967; "PTC's Tar Ranking

of Cigarettes Meaningless," Novedur 27, 1967. The Institute has

also pwlicieed such outside critiques as Alan S. Donnahoe, "'hoking
and Health': Other Side of the Report, A Critique of the 1966

- Surgeon General's Report," Richeond Tiees-Dispatch, Jnuary 19,1966,

and Dr. Vincent 2’. Lissnti, TRssearch Perspective on Seeking and

' Health, ” Teb____a_____coo, Decseber 2,1966;

"Editorial: The Cigarette lineage," The Lee York Tiees, August 22,

J

Ireche‘r'gglu p. 11.
Aeerican Tobacco Coepany, l96__§_ Annual m, p. 16.

The hanitoba Educational Research Council, A Stud 2_ of Cigarett

 

IF IV
ls

Health 91* Welfare Winnipeg, 19667,.— p. 92.

Srecher et al., p. ‘127.

Ibid., p. 126. Also one address of Robert C. Beckett, "mar. be Uh
Go Free Here in Tobacco and Health Research?“ to the burley and Berk
Leaf Tobacco Export Association, October 2,1967. Beckett also
co-eeted that "the industry also eade available a variety of
relatively low 'tar' and nicotine cigarettes to eeet public'deeend:
created by various kinds of publicity given to theories."

Richard A. Ilegean, "Cigarettes and health: A Legal halysis,"

Cornell _Lg; Erterlz, LI (s-ar, 1966), pp. 680-681.

The llanitoba Educational Research Council, pp. 79-00.
Srscher et _a_l., p. 150.

Thoees ibiteside co-entsd in 1963 that ”Twelve years ago, there
vere five big brands -- Lucky Strike, Caeel, Chesterfield, Old Gold
and Philip Morris - which accounted for ninty-five per cent of all
cigarette sales in the country. loo fifteen brands account for
roughly the «no percentage." Thoeas imiteside, "A Reporter at
Large: A Cloud of fluke,” 91E! Yorker, louder an, 1963, p. 70.

The llanitoba Educational Research Council, p. 90.
Ibid.'

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end MisleadiJ Advertisin; LPilter-‘tip Ci;erettes2 (weshington: U. S.
Coven-set Printing Office, 1958). pp. 14-15.

U. 8., Pederel Trede Co-ission, A 3222133.... on Ci;erette Advertisin;
31 21:22; (Washington, 1963).

lreeher g_t__e_1:, p.- 217‘.
M. ’e no

8.8.. Congress. House, Co-ittee on Govern-ent.0perations, Pelee
_e_ngnislesdin; . . . , 1958, p. 1.5.

 

U. 8., tederel 'l'rede Ceniseion,‘ Mt . . . , 1963, p. 37. See
Table 21, "Cigsrette Advertising prenditures in Selected Hedie by
Type of Cigarette: 1952-1962."

I r .'
U.S., rederel Trade Co-iesiu, l_9___69 m_ to Cesgy; s(washington,
1969), p. 37.

l

0.8., nan-.1 2nd. con-mm, I Report . . . , 1963, p. 37.

1'. Lorin-re net“ in ite 1956 Annunl Report the: “In-nah: of this
and toward grater We of the filter type, the nej'or pert
of our pronotionel effort will be with brands equipped to pley n
i-orteet role in this nerhet." llerhet dune and copeny success
(tor individual mutecterers) hm hinged substatially epoe their
hility or inability to switch to-tiltered cigsrettee fro: the
declining non-filter nerket. John C. Hemll hes estilsted the
peroentege of total production nede up by filter cigerettes for
Mivtduel 0.8. Infectuers :fer 1969 en fellas: .- .

I. J. Doynolds - ' 80.5
tutu-e '37.:
‘ 1:... s 111111.... 94.0 -
Philip Morris 95.8
i. Iarillerd _ 93.3-
1.13;»: a 1m:- 71. 3

I!

Join C. W. The W11 Report: _A_ Quarterly Stetistical

gm_ of _t_h__e 1.;ere rette Industg (New York: Oppenheimer 5 Coepeny,
1970)e . . l-H “ '

U.S., tederal Trade Co-ission, 1969 Report . . . , p. 8.

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U.S., Federal Trade Co-ission. A‘Rgort . . . , p. 23.

Diahl, p. Ill.

A. Lee Tritchler, Sunking_and Politics:

Federal Bureaucracy (New York:

Ibid.

 

Also see Drew Pearson and Jack Anderson, The Case
A Coupelling_lndictnent_ of Corruption on CTpitol Hill (New York:

Sinon & Schuster, 1968),— pp. 159,

Nick lots, Let‘Thei lat Pro-ines:

85.

182, 328-329.

 

Policysaking_snd the
Appleton~Century~Crofts, 1969), p. 2

”Tobacco end Politics,” Tobacco Bonnier, October, 1968, p. 18.

Against Mg :

The Politics of Hunger in Anerica
(Garden city, New York: "63" "1"”.y and Conpany, ‘f'ne. , 1971‘)? 3p": "8'6:

Elisabeth Drew, "The Cigarette Cospanies would Rather Fight Than
Switch, " The New York Tiles Magazine, May A, l969.

'See, for exasple, The Tobacco Institute, News Release, February 5,
1969 and February 12,1969.

See, for era-pie, Horace Kornegay "Re-arts before the'natioual
Association of Tarn Broadcasters," Chicago, love-her 28,1969.

Horace tor-agay "snark. to the sales and larleting Incentives
Also see Maurine B. Neuberger,
g§noke Screen: Tobacco and the Public welfare (Englewood Cliffs,

Club,” Richmond, April 20,1970.

.Neu Jersey: Prentice-Hall, Inc., 19335, pp. 16-l7.

 

‘John D.‘lbrris, “The Tobacco Industry Bald Losing in Struggle Over
Cigarette Ads: Congressional Fight Centers on Trssdsn to Advertise
without Regard to Health Risks," The Nev‘Tork Times, April 27, 1969.
“Norris also indicates that expenses_of some uitnesses have also been-
psid by the American Cancer Society and the Anerican Heart Associat-

ion. Also see Nan Robertson, "Witness Against Snoka Warning Got

.33, 200 Tee: NTU Educator Was Paid by Tobacco Industry After His .

Testilony to Senate, “ The New York Tines, August 23,1967.

Tron an article by Horace Kornegay, "Tobacco' s Goal:

Closing the

Knowledge," The Wilson Daily Tines (Rilson, North Carolina, August

6, l970).

John D. Morris, "8 Cigarette Makers To List Tars in Ads, ” The Lev

John D. Morris, "Tobacco Hen Bar Evasion .of TV Ad Dan," The New York
'Tiaas, January 9,1971. .

If ,

'Tork Tiles, Decenber 2£,1970.

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82.

83.

85.
86.

87.

89.
90.

91.

92.

93.

9‘.
95.
96.

91.
98.
99.

100 .

114

Stndard and Poor, Industry Surveys -- Tobacco Basic Analysis, May 14,
1970. Also see Vsrtsnig G. Vartsn, "Tobacco Stocks Cain: Diversity
Aiding Cigarette Makers," The New York Times, November 1, 1970.

"Tobacco Industry Seeks to Diversify," The New York Times, April 16,
1969.

 

Negman, Cornell Law Quarterly, LI (Sn-er, 1966), p. 685.
P. Lorillard, 1956 Annual Report, p. 3.
Philip Norris, 1958 Anual Report, p. 6.

Americ- Tobaeco, 1963 Annual Report, p. 12.

 

See, for era-lo, Liggett 6 Nyers, "Ne Haven't Really Changed the
Nae, but We Have Changed the Company. We Are Now 56 Percent Non-
Theeoo," The New York Times, October 13, 1970.

Phillip Norris, L969 AM]. Report, p. 2.

R. J. hymelde Tobeeco Cempmy and Consolidated Subsidiaries, 1969
A__n_n___ua1 Re rt, p. 2.

"Diversificatiom 1969, " Tobacco Reporter, XCVI (November, 1969) and
“rm Di'eudfioati. During 1972, " Tobacco Reporter, XCIX (Decem-

 

Other tobacco mieo do not break down sales and earnings by
prohet lime in their usual reports.

"Tobaceolmeeetry Seeks ee Diversify," The New York Times, April 16,
1969. Also see Narylin Render, "Loewe and Its Mutual Fund," 1115 Ne!
York Thee, February 18, 1973.

Alexander R. M, "Cigarette Nee Looking Abroad: Overseas Busin-
ess Climbs Despite Some Problems," The New York Times, August 6,1967.

Liggett In Nyere, AnnualRe Report l96___5_, p. 3.

J. B. Neimer, "The High-Stakes Strategy of American Tobacco, " Dun's
Revia'g Nederu Indeet , Lxxxuu (Noveder, 1966), p. 105.

1.1. Rogelio, 1969 £11 hart, p. 3.
um, Don's Review, mull (November, 1966), p. 105.

Stepbem Grover, "Cigarette Ad Spending to Decline Drastically when
TV ‘1‘ Starts," Lb: Wall Street Journal, September 15, 1970.

Americam Brands, Inc., Annual Report 1970, p. 25. The company's
ecquisitions from 1966 to 1970 have involved the outlay of
approximately $892 million.

 

 

 

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Chagter $155 The Independent Regulator! égenciee,
m1 n MWMLUU .
A. Federal z£g§g_Colliaaion

The lederal Trade Couniaaion (FTC) hae been actively concerned with
cigarette advertiaing for Iany yeare preceding the voluntary agree-cut
reached with cigarette Ianufacturera in 1960. Thin agree-ent ended the
"tar derby" which we gravioualy diacueaed. Misleading and falee adver-
tiaing have been a prime focua of govern-ant regulatory attelpta by the
0.8. govern-cut over the paat l5 yeara. In the following aection, we
will coneider FTC activitiea relating to cigarette advertiaing.

The coleiaaion hao cone a long way hetween.l955 and 196‘. In 1957. the
Legal and Monetary Affaira Subcollittee of the Bouee Collittee on Govern-
Ient Operatione had concluded that "the Federal Trade Col-ieaion haa
failed to approach the prohlea of falee and nialeading advertiaing with
vigor end diligence.” 1 Hith.the releaee of the Surgeon Geeeral’e report
in 196‘. the col-iaaion'repidly acted to wlrn.the yuhlic of the hararda
of cigarette necking. Prior to the 1964 report. health claile in
cigarette advertiaing have brought the induatry into conflict withIthe
FTC whoae juriadiction over unfair trade practicea in collerce extende
to the nerchandiaing of cigarettea: ‘ ’

Between 1995 and 1960 the Co-Iiaaion coupleted aeven fornal

canoe-ead-deaiet order preceedinge againat cigerette nenufac—
turera involving medical or health claile made in their adver-

tieing. leer other precaediaee have.heen rattled inforeally. 2

115

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116

On Septenber 15, 1955 after a year of conferences with the indus-
try, the conniasion first pronulgated cigarette advertising guidelines.
The guidelines, along other things, sought the following:

. . . [to] prohibit representations, in cigarette advertising

or labeling, which refer to either the presence or absence of

any physical effects fron cigarette seeking, or which lake un-

substantiated claina respecting nicotine, tars, or other cone

ponents of cigarette snoke, or which in any other respects

containing nisleading inplications concerning the health
consequences of snaking cigarettes or the advertised brand.

3
This first attenpt to obtain voluntary industry conpliance was weakened
by two factors: the inability of the connission to enforce its actions
and the failure of the connission to confront the problen vigorously

The FTC has attributed its lack of success in controlling cigarette
advertising in part to the refusal of the courts to extend the use of the
injunction pernitted in the case of false and nisleading drug advertising
to cigarette advertising. Nevertheless, FTC Connissioner Robert T.
Secrest reported to the Legal and Monetary Affairs Subconnittee in the
sun-er of 1957:

[The TTC] is of the firn conviction that its adaption and adnin-

istration of the guides did nore to prevent deceptive advertis-

ing of cigarettes and to fulfill the Conniesion's responsibility

to the public than it could possibly have acconplished by any

other nesns.
He cited 75 instances of voluntary conpliance which resulted in the with-
drawal of objectionable advertising. Based upon hearings held the pre-
ceding July the subconnittee released its report in February. 1958.
entitled 15l23.23g_flialaadigg Advertising {Filter-Tip Cigarettes). The
report was part of a broader investigation of the advertising of products

which have a direct relationship to the public health.

 

 

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117

In its report, the subconnittaa sought to evaluate the efficiency
of the FTC's progress to regulate filter-tip cigsrette advertising. The
subconnittee, chaired by Representative John A. Blatnik, was highly
critical of both the cigarette industry and the FTC. The report stated:

There can be little doubt that the anergence of the filter
cigarette is attributable to the widespread public belief that
the filter-tip cigarette furnishes protection against . . health
hsaards. - .

The cigarette industry has done a grave disservice to the snohing
public, initially. blatantly. and lore recently. very subtly.
publicizing the filter-tip snoke as a health protection.

The aubconnittee further concluded that “there can be little question
that reports linking cigarette snoking with lung cancer were . . .
responsible for the 1953 decline in cigarette sales. . ."

The cigarette industry responding to this first investigation refused
repeated private and even public invitations to appear before the sub-
connittee... The connittaa. in at caustic criticise of the industry.

r
I

consented: ‘_ .. _ a _ h . . . ' ,1 3

During a period fraught with public concern over grave health
inplications of cigarette snoking, business responsibility and
even decency would apparently dictate that the Anerican public -
is entitled to an accounting.fro-heigsrette nssufsetarers.. It
is indeed nest reprehensible that the tobacco industry should
so shirk its vast responsibilities to the custonnr and

apparently conspire to boycott the hearings of a congressional

.co-ittoe.6-.; . -..;,. - g-.. ..

. platnik's subconnittea criticised the belated TTC action for having
”mum «can!» ”11¢ m boss, 'brsmhed' that mm. would
furnish health protection.” I _Ierthsraere. Colliesioaar‘Saerast.eelt.
that the.ch could not initiate a seaplaiat against filter.eigsretse
advertising "until-scone.” server was oddest-d so deter-ins wot-er

netivetion fer the purchase of filter cigarettes.” 8' The failune ta

 

 

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118

camlata tna aarvay'vaa a1tad hy aha aubadttaau aa “la at
tha ca-1u1aa‘a lalay‘ 1. «much. aata’rcmaut acttaa ...1... :11...
tmmtaalvarttam. ‘ .. .- -~ . ' . 1
' firm had cim'tha-laah a! .11... praaaauraa farrtaatta‘rtha
nah cauta‘a’t at 'cuarattmma a prahlm h1adar1aj action. It. Ilatatk
Mum aaaatavad .hu:
Althamh'tt varaaaadad'that- tha'Ca-1aa10u haa authar1ty to
at any Gavarmmt agency to lake tcata far 1t, tha Cam1aa1au
hm aavar Ilia my. raquaat at tha luraau at Ctmdarla at my,'
athar Gayarmaut agancy ta caaduct auch taata. 9
Furtharlara, tha camiaa1au had igaarad publ1ahad taata hy privata
argm1aat1aua auch aa Cauau-ara 011100 and 'l'ha ha____§_____ar'a01|aat. ‘l'ha aub-
camittaa caucludad that "tha racard .1 tha Ca-1aa1aa 1a tha araa at
taat1a;. . .haahammaaltaaatiaa'lo
n. Mttaa a-artaaa 1ta t11t1c1ma of tha m a fallava:
1..er Irada Wm haa 1.11.. 1. la atatatary duty
to 'prayaut dacapt1va acta ar pract1caa' 1a ftltar-c1garatta
advart1a1u. Tha act1v1t1aa at tha c...1..1.. ta pravmt thia
dacaptian vara vaah md tardy. Aa a raault, tha camcuaa
hatvaau 111:..~.1. cuarattaa ..a 'putaatka' hm bama'daaply
a...“ 1. tha ”.11. .1... 11

. I
11.. Iadaral Trada Ca-1aa1au haa failad to approach tha prahlm
.1 1.1.. .1 mun. .dvmua. 1.1.. v1... and 4111...... 12

'l'ha raahar vtgaraaa attack by can...“ Mata aa aha tuba“
ea binary Mafia-m vaa aat'iallavad by my gayarmmt and/or 1adua-
try acttaa.‘ h but, thia tint gout-mt «taut ta ahtah valmtary
mt! "lime. in aura-pact, mat ha dad a ta1lura. ‘lha
01......» wad-1301‘.- dint .1 tin -‘tartiathy" althaqh tho!
Val-tart]: midi“ a! tit tact-1m cabana-w Vial-tion.
'..- finally in 1960, tha admin-m“. tha‘ "tardarby."vhm.tha
1.11.. duratta “a...“ yalmtarily aura“ ta Ma tha .

 

 

 

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119

contain. and mauhataatiatad elat- af tar and uieatiaa content. larl
l. mu... than me chair-a. .tatod that ”1. the ahaanea at a aetio-
taetory unifora teat and panel a! advantage to the alohar, there will
he no ..:. tar and .1...1.. mu. murmum.” 13 . a... m b...
aa'gaatad tirat in 1955; van acclaiaad in 1960. lintaat called the car
at aiaetiaa We "a hao-rt Ina-pl. of induatry-aavarmant coopar-
atiaa 1a halving;aspraapia¢,prohlllh” 1‘

To other cheery-re; liatnar'a col-tion no entrant of tha‘prahlm.

._ - f

the and of the "tardarhy" vaa to thadndaatrrh “new.“ the pub-
lit‘a'dteadvaataga.. r...cn..u..r.' Union report included the following
aoaevhat'aataaatic analyaia*ot the voluntary accord:

. . a by aallia§~off-tha infightiaurthat had characterized the
Tar Derby, the cigarette industry aucceedad in extricatin.
itaaif fro- tha “1.. paaitian 1t had-accwiad aince

the health diaclaauraa of the early l950'a - that of con-
ataatly rauindin' ite coata-Ira through-ite Iqaladvartiaia:
that cigarettaa carried a real threat to their health. 15

The laadar' a Mgaat, one of the tahacca induatry' a*aoat para and
harahaat criti ca, hlalad the '10 action for "diacouragin; the aanufactura
of high filtration cigarettaa and for raacuing the cooker fro. chaaa only

a 16

to leave .1. in ignorance. Another critic called the voluntary

i

agreement ”a land-ark axa-pla of hav huraaucrata aolva a praaain; proble-

by avaaping it‘ under the rug. ” 17

1.1....t......u1...n..r. h... naught ta'liniliae the health.000tra-
varay, and voluntarily ending the ”tar derby" III ....a.. atop in thia
direction. Gout-mat praaeura m the indeetry to aliaiaata, voluntarily,
Iaiaavanew-talaaling-cigar-tearadlartiaiaupnarhapa»auaaaadod taa~vell.
.1.'.11.1...1.. the hone at evacuation, the I!¢.peatpoead ite active
:iaaolva-ant 1a tha.aanhia.rhaa1th tantravaray. .Tha saver-Iona. inataad

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120
of regulating and teeting induetry health clam. choee for the lnoeent‘
to elininate then. Later, with the developnent of note refined teeting
proceduree lthie decieion would be revereed.

The cigarette induetry ha been divided on the uee of tar and .
nicotine diecloeurea and health claine in cigarette advertiaing. Ciga-
rette coqaniee that had 'only a relatively elall percentage of their
ealea in the rapidly expanding filter cigarette narhet found the-aelvee
handicapped in coqeting with coepaniee better eetabliehed in thie
narket.‘ The voluntary agree-ant ended induetry coepetitia to develop
and earhct a eater cigarette. _ . . ' fi . ‘_ _

Following the proeulgation of the Cigarette Advertieing Guidee.
the co-ieeion cloeely ecrntinieed cigarette advertieing practicee by
nonitoring cigarette edvertieeeente. Further-ore,‘ the c'o-ieeion‘ha‘e
noted that it "hae been deeply attentive to the progreee ot‘n‘edicel
reeearch into the health aepecte of cigarette noting."

In 196‘, the FTC pro-pted by the Surgeon General' a report propoeed
ite 1r____e¢1e_ m 5111: $35 the. Prevention 3; 9.359;! 25 Deceptive
Advertie1_ng 21 M _o_£_ cg arettge in Relation _t_g _t_h__e w haearde‘
g; Sucking and? W Stat-ant g; 3411; .21 Pumoeg 9; 5113. The
co-iaeion noted in ite report. I . -

The findinge and coeclueione of the Advieory Co-ittee' e Report

repreeent, 1n light of the nature of the 1aeuee and the gravity

of the enoking and health problene, a conpelling baeia for '
renedial action by the Federal Trade Co-ieeion within ite
etetutory juriediction and reeponeibilitiee for the prevent1oe

of unfair or'decept1ve acte and practicee in co-erce.

The co-ieeion had requeeted technical aeeietance and aid fro. the 0.8.
Public Health _al-deg out) on 115.11.; and win-nu“ or tobacco

producte. "'l'hie ,req'ueetwee along the f'actore which led the Surgeon

031

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121

General to annoanee an Jane 7, lDOZ, that he nee eatahliahin; an expert
adviaery tennittee te review all availahle data on anehing and health.

A nedieal eeeter tree the '16 atntf'aaa, in tact, an dhaerver aha
partiti’etea in the initial dalmatian-ta! menu-or, -¢cnnittee. 'rhe
eenniaeien acted rapidly apen the Inrueen'deneral'a call tor action ia'
annennein. the-relenee‘efthe mart thet,"'ont at ite lee. and etene-
tive deliheratiene the.[adViaeryl Oeanittee had reached the overall
jade-ant that cigarette'anehing ia-a health haaarl 6! anlficient inpar~~
tanee an. United sum _t_g warrant Ire-dun m." 3’»

On January ll, 13“. the aann any the advieery cannitten rapert van
aeleaeed hy the Sergean General the eennieeien annanntel ite intention
to 'heee prenptly, eithin the «eye at ite mentor, jerialietion and
napeneihilitiee, to interline the mam aetien -ma it 'eheala‘take
in the pine inureat." Only one red later. the ee'-union notified:
intereeted'partiaa e1 ite-prepeeea relewnahinc proceediana tor the'
eetahliahnnt ot-aesnlatiean tar the'aaeartieiq and indie. afweigu-
rettea."" "

‘ the ee-ieeie‘n’a entailed and elaqneat nuite eapre'eeed—ite eonoern
etch the teefiuaye«innahiah-eigaratte aleertiaing any he niarapreaentina
er concealiaa‘anlanially the health haearda et leaking:

itiaet, the cenniaeien haa reaaon te helieve that anny current

advertinanenta falaely ntete, or give the falae inpreaaion,

that cigarette anehin. prenatal health or phyaical well-being

an in not a health haaard, or that necking the advertieed

Irena in lane at a health hnaaaa than anehin. ether hrnala

a! cigarettaac ' *1-

‘aaeona; the Wine hen reaeen to -heliave that aneh earrent

advertiaing nuggeata or portraya cigarette necking ea being

'pleaaarahle or danirahle, eenpatihle'eith phyaical health. '

fitneaa or well—being, or indiapenaable te full peraenal
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121

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122

mm the cea-her of chm-cum health heard-of

cigarette seeking. Such edvertiaiu; lay create a paycho-

logical and eocial barrier to the coeeueieg puhlic' a under-

atandin; and appreciation of the gravity of the2 rieke to

”life aed.heelth involved la cigeretteralehiusg . . «

the Ouleiaeieelprepeaed three trade reeoletiee.mu1ee., The liret
eeeld requioera‘heelth.eoreieg in cigerette advertieeeeate and eunciae-
rette oeataiaere aeld to the public etetin “Caution; Cigarette aeohiea
la dangerou- tezheelth. It nay oeuae deeth frat-nut «d'ether
dieeeeee." The eecoed trade regulation rule would forbid advertieeeeuta
which otated Aer inlied that eunuciaerettee (a) eon-flee,“ health
or ”manna-um. (”All m e hand.“ health. .er (cl to leee
e heterd te heelth then enable. other hreede. Inception! were_elleved
lee apeeific~udr£eoteel clai- thet are heehed . by "aeheteatiel a“
reliable” evideeee. nexule provided that all fact: an the health
We of noting a reticular advertieed broaden!“ be:"cleer1yo
paeaieeetlyaaed ietellieihly” dieeleeed ia eleee conjunctiou.vith the
tilt-at Iele.thaee.preuided thlt Oilllttti IiIIttthIllt .UOIIG lit coe-
teie .7 atet-eet ee te thee-entity of ea: eiaerettm tut-edict“
fie»... are a“ aieetiae) ouch have not been verified in .a unite. and
reliable countenance» the no. i .. u ..:m. L :. a!

thereiearette iadIeCIyseaeiu reiueed.tevceoperete in the.preeeediaae.
the ceeeiaeioe aeeedt .

t The iaduatry hee alt-utted ae data or infornatioe with reapect

to euch lettere ae the health hazarde of cigarette lacking,

the preepecta. tor develop-eat of lean hazardeue cigereiieeu-

and the purpoae and effecta of cigarette advertieiug.
Iuetead, the induetry choee to lake only a limited preeeutatioe takiu:
the poeitioe that ”the Coeeiaeioe lache authority to conduct auch a

proceed“; aed, alternatively. that it the Codeeioe hee ouch authority,

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123

it ehould not enerciee it et thie~ tine." 22 Induatry attache on-ceew-
nieeiee efforta to inveetigete and regulate are a long f-iliar etery.
Legal repreeentatiwee o! the cigarette coqeniee epecifioally coeteeoed;
the juriediction and legal authority of the co-ieaion to pro-ulgate
the pron-ed trede regulation relee aed~reeerved the right to object on
ouch juriedictioaal ead other legal groeade. All cigerette eeeufecterete
adopted the eteteeent ale hy the Tobacco Inetitate, the. , in their
behalf. '

lepreeentetivee ef other econonic intereat‘greepe. alemprote'eted;
thepropeeed fl: actioee. Parallelieg the tohecoo indeetty'e cententione,
ehe eupporting group, the Grocery Ian-lecture", ef Aeerice, In», he. .
lieved'i that the prepoeed relee represented ee' udeeirahle eeteaeion of

23

hover which ie hatter left to ceegreeeional legielatihe. A here.

geeeral criticiee wee .raieed by'hoth the “vertiai‘eg lederetienof .

h-et'icen 2‘ 25

and' the relewieion hereon-of Advertieing, lac. They
clot-ed the propeeed‘ rule. night eetahlieh a dengereu precedent for
eiailar meme. ageiut other induatriee taste-rum. m hrican

lune,» Pehliehere Aaeociatioe 26

end Tb Iedio Advertieiu hereon.
Inc., 37 allowed-the tohecco induetry'e pattern of denying that the COI-
liaaioe' hed the authority to act. .Moeg ethere' to voice oppoeitien were
the National herniation et lroedcuter‘e eed the- Aeeocietioe. of letioeel
Hvert'ieere.'r- --~= :~

Opponente o! lit-action: have hooked epthedr argue with the.
throat of legal ection to both delay and/or overturn any poeeihle regu-
latory ectioe. Uncertainty‘pet'eiete hecauae of the aboence of court

teete upholding or rejecting the eethot-ity of. the agency action. the

~- 9 f'

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12‘

tobacco induatry prefera voluntary aelf—regulation to prevent the eatab-
liahlent of any new precedenta. The other econonic groupa lentioned
above have aupported the tobacco induatry'a oppoaition to new govern-ant
regulation. . ' 1’ ’

The purpoae of a trade regulation rule ia to deteraine for the
future whether certain buaineaa practicea. if followed by the aeabera.o£
an induatry, would be unlawful. 2‘ Several obaervera have cal-ented '
that FTC actiona regarding cigarette advertiaing are an exception_in an
otherwiaa lethargic picture. ‘FTC col-iaaioner Philip Ellen, a driving
force behind vigoroua colaieaion action; couplained that in general "an'
ataoaphere of all deliberate ladk of apeed prevaile.‘ 2’ “fleficalled the
col-iaaion'a cigarette rule ”an i-portant beacon ahowing the hind of-'

n 30 . .

affiraative role that the Col-iaaion can play. The highly critical

“Nader Report” 22 the; federal Trade Couniaaion ipublieh‘ad in l9é9llnoted
likewiae that ”the aingularly unuaual caae of the FTC'a action on decepF
tiva cigarette advertiaing ia indicative of what the rrd would be capable

n 31

of if properly directed and notivated. They continued that "the

FTC can be effective, if it acte Quickly and deciaively, ignoring the
vine.- indnatrial‘ lobbiea . " 3’
ilaan aualariaed peat critical etudiee of the coaaiaaion. atating
that "over the yeara virtually every acholar, every objective critic who
hee carefully reviewed the col-iaaion’a record haa cone to the aaae‘con:
cluaion - the coaliaaion ie not perforaing effectively any of the rolea
given it by éongreaa.” 33‘ t ' "~ ‘ T h '
Fur-thereon, [lien obaerved:

On thoae occaaiona when the con-iaaion haa tahen vigoroua and -
creative action in the public intereat - for era-ple, in

 

 

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125

aaaaeaciag the ”reade- lagalatioa hale concerning the health

hatarda of cigarette choking -- the Congreaa haa often acted

to rawerae or liait the Co-iaaion'a deciaion. 3‘
Iader attrihatad-thia-weahaeaa of thee-iaaiaa to thaahaeace of a
cane-er oanatithuq and aqpert in the face of an organiaed indaetry.
la wrote.

in the rare inatancea when the co-iaaion doea try to act force-

fully againat atrong econonic-political-intareata - auch ea with

ite cigarette-advertiaing propoaala in l96b-65 - it finda itaelf

overwhelned hy the indaatry concerned. Thea. a Iederal agency

that ahould have a atrong graaa-reata coeatitaeacy 1a deprived

of thia daaocratic eupport in large. part aa a melt at ite peat

ineptitude and laaaitada. 3

thencwaareqauedtarepert-eachyeartecmraaamdat,taraa of
the tederal Cigarette Labeling ad mum. Act of 1965, a congru-
aioaal act which preapted the amt-ed 1969 as trade .taallattea rolea
“while-udlderhavaaetad. theaaaaalmrapart-pravided_
infornation“:- the‘ etieetiweaeaa.~et.cigaa'uta labeliaar entrant practice!
eta-ethane: cigeretteadaat‘tiaiaeaedpreaetieaaewauu reel—ca-
dudaaa-Jer- W legialatiea. la the} found-actual”, wa_will
_iaar the. no maparta Cd m m “ting thematptip period
mewmimmd amend—1.1m
I“. ~

rIachrtiuaeI'I'Coapee-ttetweet-eaten”.note-dawning: the
ataga ter additional m an trade W... rolea by. “knurledging
that "there-1a My a ”than that the waning atata-ent on ciga-
rette pacing» [an-dud ho m] haa had any aigaifient enact." 3‘
«amt M and-tam thtionhaa been
theta-name uefladethat it. cigerette “new mac.
m.m«mwealddoa~thiqaheut it. 37 Ihaalaoet

 

 

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126
uhiqeiteee cigarette advert“! in proof .ugh to -y that eige-
rettee ”can't he all that had.“
‘17 Gardiner Jonea, no Co-iaeioner, co-ented in an article
”Governt in the-brketplae‘et"

[The no) in the eely neural qeney mich cane-In agaieet the
retailer or manufacturer who defrauda or deceivea a conauear. 33

lurthereore:

. . . there ia need for the enerciae of governeetal power to

protect cone-re . . . Ita pewera to preeote coqetitioe and

truth and honeaty in the nerketpiace are atill vitally neceaaary

to the welfare of emu.
lot only in than h'eeed for We pretectiee of cookware. bet
then-iaaleeaeeqec‘t‘atieethatthe-qulaet'. '1

to Mouth'clgamte been. filing the mm
a-detory mun. of'ter ndeieotiee content an cigarette peehegea and
in cigarette Minute. ae well-amena- m that-“unit "pro-pt
cinetne .fetterere ee' eel-elepiaee manna eta-rattan." the r-
e—iaeiaeeleo queaeea that educational progr- eh'eula be eqheeiaed
heavily and- iecteeeea‘ abet-daily 1e the’echeele‘. «In helping to eat
the grand eerhfor eaenn-eel ra-diel action by the'rehral cent-ice-
tioee W. the m queatea:

ib-centerect the'ae forcee {i.e. current cigerette eater-titted= ’

nay ultieately require either tereination or draetic alteration

‘ef cigarette advertiaing on radio and televiaion, and will

certainly alao require a vaat educational caepaign to negate the

ieege «cigarette aeehieg ea haeeieea aeI-aatiafyieg.“
he ”Va 106? repeat carefully ee‘alyaed cerreec- practieee eed“ netheaa
ef cigarette eaeertiueg cea preeetherfleattae wee alao nae at
abettiedq‘enpeediterea, ea eell an the audience to which‘it'eeasdirectad.
the. report oeecleded that ”intentional or terteiteua. teenagera appear

... 61

tate a priee target for televiaea cigerette advertieieg‘.‘ ‘rerthereere.

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122

th- mum mad that cigar-um amusing "minus to dlpict
Inching u an mjoyahlc nativity whilo ignoring conical}? ch. health
hazards."

To mid the punihln diminution at clan-tn «tutti-in; tho
tdncm inch-try ’lld thn hmdcut -dic hm cachsdoptcd voluntary
limitations an 913mm Mining“ In the following action, we will
chuck: can of than unwary limitation: a ".1118 out-id. unlu-
tiaun of thtit m.

n. Self-m gf_ Ci‘auttc grung-
l‘b (2th Matching Cninm‘m in April, 196"” flu

 

Imam- of out 99 m at of 3114““! cumtu‘ nut hut
into «that My 1, 1965; ‘2 ‘1!- ed: prahthitnd cigarettc “artis-
in; dilutud ptin‘ily to m min: 21, at M3 in uahool,
collage an: annuity: man. In: all: also yum“ guns. but -
cipnttt. .91:- 3 m1, count. at “vanity- mm‘. - Mahar—
Inch-thatch mud Chit: "eight-at" Main; dull nut nprount
tint ”Men-am is umtinl to social ptoninancc, distinction,
“can or “1 attmimu" Thu hiatus at w: wanting
in or win. tar Mitt?!“ in :thletic activity requiring physical
miu~ ad in .mt’ of 9m Itm tar-cm _cialc an
' a. 11W indmtty. II than: «cult of animal:
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mmn. mm W flit-call an mu m: 1.11-y
'Funt 13h. uh "of 'cignrcttu contributu to individual achieve-ant,
pascal mm, a: in a habit with of mm.’ m code:

also prohibitod atatin; that the promcc or con-traction of a filter is

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128
beneficial to health or well being. Under the Cigarette Advertising
Code, this type of representation is also prohibited unless the code's
adninistrator held otherwise. '

For-er New Jersey Governor Robert B. Hayner. tobacco industry
code adniniatrator. testified before the house-Connerce Connittee that
"the code has two basic goals: ‘(1) to prohibit appeals priaarily
directed to persons under Zl years of age. and (2) to prohibit health

‘3 The industry‘s code which went into effect in January. 1965.

claine."
ended sis years later in NOVenber, 1570. Henbership in the code had
dwindled fro-hall nine of the country's cigarette aanefacturers to three.
The alaiaietrator had the power to levy e.fine of ap to 3100.000 for
violating the code. bet no fines were ever iaeeeed.~
..The health claine section of the tobacco industry code was deleted

in 1967 after the FTC changed its policy..'Thiflcflell!l$fln-Cldad its
objection to disclosure of tar and nicotine content a. cigarette label-
tag and advertieieeu arevided that no healthhclatle lame lede.* the.
celldsaien found that: ' 'v - ':_ r., _ ,

nu iadastry u nade any linitedmae of m “.mm'hn-

closures . . . and that with the exception of True, these

brands were only an iaeignificaat share of the lDQe‘narhet.
Bane have aesetiened the-utility.ef having twnueaparate operating codes.
Robert 3. Halter. pmidnt of W.W«s. cogent-ed in a. letter
to Goeernor lay-t that hit-wenld appear to we. that no neat»). purpose is
served by the aaiatenee‘ot two oedee which duplicate each other in

mm regents.” “ m cm the indnetry'a code "fliegood

deelefgondz"‘s~

In noted that cigarettae.aea no longer advertiaed on.collage:.
canpnsea, that testinonials were no longer need and that nodels

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129
in television commercials 'are still a little lore nature.' ‘6
The FTC's evaluation of the attempts at self-regulation have been
much lore critical. The 1967 report to Congress noted:
Although einor changes have been made in some advertisements
since promulgation of the Cigarette Cede. their themes and basic
impact rennin unchanged. Cigarette advertising continues to
promote the idea that cigarette smoking is both pleasurable
and harmless. On their face, the various advertising codes
may appear to set proper guidelines for cigarette advertising.
but in practice it is impossible for cigarette manufacturers
to comply with the codes without asking known the health
hazards of smoking or‘gininishing in any way the appeal of
their advertisements. _ . g
The commission concluded: ”in the interest of fairness to the adults
of toaorrow. advertising without an adequets‘lsrning should not be per-
aitted to continue. Self-regulation by the industry has proved to be-

ineffectual.“8

FTC comnissioner Philip BLIea.went still further in his evaluation
reco-ending to Congress that (1) cigarette advertisi' M W-
entirely on television and radio. and (.2) the "snot-kins Oil." 100 n.-
cigarettes, now being extensively pronoted by the industry, he hamlet.
tron interstate commerce as toadangstOUI to: human C...‘I't‘fl.m‘9

In their 1968 report to Congress. the m: ed“ a bushel: noon-
mendation along the lines of Ellen‘s first proposal:

Cigarette advertising on television and radio-should be banned

entirely. Alternatively, cigarette advertising on television

and radio should be limited as to the hours at which it may

appear; the extent to which it appear; and the type of

programs on which it may appear.5l, a ' ; ,,, .

The commission took special note.in this report of cigerette.mmmn£an-
turers' attempts to iniluence.pnblic.opinion:including:(1) atfnrts.to

discourage the display of commission tar and nicotine yield data in

 

 

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130

food.end drug chein etoree end (2) ettelpte to halt e PBS ce-peign to
pehutue ttu feet mt hue huh-rent «lactate hen lire: ‘ cigerettee.
The 0.1”“ lepott duleexteneively Sun the controverey' reuniting
free the publidetion.of en articlereetitled."lo Eloke or not to Snake -
nut 1e Still the m" written by Steele; neck. The 33am
mince-echoed the: "e: thee-eat, elleeceeeqtoreure “that
then 1e eheelutely ne pm! thet not“ eueee haul center." The
etude eneeeny nee «in. by u euloyu e: the Iehecu Ieetitete'e
uhne eeletieee fire H11]. 5 Keelltoe. he. the article III elm
eeteeeive edverttetne eed repriete were «ems-m te people in the .
eedtcel. “teeth“. eed edeeetteeel “eide ee cell ee te enven-
eent can-Jen. eeeertty eeelyete hustle! onion leeeere. the hill
lot the ever-‘00 theeeeed update!“ evuteelly a.“ .hy the iehecco
induettya

. tecte eeeeenhe the free “one epiude veal-elm he the H0
mett'heeeeee-'thtyrte1eue 1e e eery neural my :6 am: eutectic.-
Ied netball e! 'eteetette. “vent-heed ereutieefl'n In eveleette. ‘
uuutu . tune", ._ teettee: 1e thte eeee. -.the 'ce-ueioe- eoeehded that
M“ "ere net the hard I! tad-an either «client of ite feet.

”52

et unctteee ef ite repetetiee. At leeet eeverel of the ce-ieeiea'e

unhere eneer te hue hee- heeeree eel reveled et the matey teetice
eedthe veeetty e! eat-When; ' §
. 1e lg, 1960511: m renewed ite neeeere-(et increeeed emrneeet
mice e! eleeteeteedmtteteez by. m thet it. would consider
e emu-e. rule meta-e thee-en cigerette “vent-tee melon.
clearly end preueeeup. e eereeeee-heelth urea-e. The proposed '

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131

verning otated:

cigarette outing ia dangerouo to health a! my caeoe death

froe cancer, coronary heart diocaee, chronic bronchitis,

pnleonary eqhyoeea, and other dieeaoeo. 53
The FTC, in effect, see giving Coagreae notice that it nee willing to
back up ite one reoeeeoedatioea‘eith actioea after tho'ooegreeaieaal=
aorateriee.oe ite octioae expired. During the three yeare iollooiag
the paneage of the Cigarette Labeling and Advertiaiag Act of 1965 no
federal legiolation regarding cigarettoo had heea paeaed eed FTC recol~.
eendatioeo renaieed eainpleeentod. Meeting or ite eiterte .tthoae
of the FTC, the ITC otated, "whether taken together or eeparately, the
propooed ruleo of the tee agencieo-are aigaitioant otepo in the lichen

" 5‘ Both c-ieoiona

0! regulatory row to the public interoot.
eppear to tahe a great deol of pride in their efforte in thie area.

In ite 1960 report to Congreao, the m aloo tooh a'ete. of peblic
opinion by euggeetieg that "the clieete eeeee to he ripe for iacreaoed

"suction of cigerette advertieieg eed labeling.” 55

they eitod a
lerrio Poll indicating that over 50 percent of the public favored banning
all cigarette ohettioiag‘lro- tolooioioe ad radio. The eo-ioeien
elee recounted-a aev etroeger warning on cigarette pachagee eed in ell
cigarette altertiolegr
hm: Cigllettehohiag io Mic loalth‘llap Canoe
Death Ira Cancer, Coronary Heart Diaeaae. Chronic Ironchitio,
Pol-teary hhpeeee and Other Noeooea.
The co-ieoioe voeld 'aleo require rotate-rt eettieg forth the tar and
nicotine cottert of each cigarette on the pochege and in all cigarette
advertieiag moon“ h- cigar-ate Wee radio eeateierieioa

entirely. television an! roiio becoae-euro, a part of their pdlic

 

 

 

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132

service responsibilities, would be required to devote a significant
amount of broadcast time for prograls and announcements on health hazards
of cigarette smoking.

The negative assess-eat of tobacco and broadcast industry self-
regulation by the federal regulatory col-issions has played a large role
in determining counission actions. Bowman Gray (R.J. Reynolds) stated
in his congressional testimony in 1965 that the industry's advertising
code "represents a sincere effort by the industry to respond to criticise
of the industry's advertising which has been voiced in sees quarters.

It is an earnest effort at industry self-regulation." 56

Criticiss of the industry's own efforts has cone froexpoliticians
as well as federal bureaucrats. Robert Kennedy said in his speech before
the world Conference on Smoking and Health that:

. . . we have witnessed a charade of purported selféregulatioe

for some years. The codes of self-regulation have been largely

ineffective, and I see little hope for changes. 57 '
Kennedy's criticism is very ainilar to FTC and FCC consents-articulated
at a later date.

The 1969 FTC Report to Congress cited extensively free a confiden-
tial report, prepared by the Code Authority of the National Association
of Broadcasters. The report assessed cigarette coesercials on radio and
television and was made public at hearings held by the House Interstate
and Foreign Col-arcs Col-ittee on June 10, 1969. 58

‘warren Braren, the principal author of the report voluntarily
testified that:

The broadcast industry has had ample opportunity to delonstrate

its willingness and ability to enact a truly responsible and

‘loaningful progras to self-regulate broadcast cigarette adver-

tising. The NAB and the code authority have failed in this
public trust. 59

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133

the confidentiel Iwoedoeut cigerette Adwertieine leportwritton in
I!“ concluded: - J

Cigarettou, end the eduertioiee thereof. prooout e unique eit-
uetion. for the firet tine broedceeting io confronted with e
duo-e of eccepting edwortieing for e product which. throth
nor-e1 end obwiouely populer uee, io potontielly if not neceo-
eerily «Behind inflicting irrepenehie here '9- e uoor'e
hoolth. 6

Iurthernore, the report continued:

The difficulty in cigerette edwortioin; io thet co-ercielo

which hewe en iupect upon en. edult ceueot ho out-ed to loowo

uneffectod e young wiewcr. enokcr or otherwioo. The edult

world depicted in cigerette edwertieine wery often io ewerld

to which the edoleecent eepireo. The cowboy end the otoel-

- worker ere eyuholo of e eeture ueeculinity towerde which he
otriweo. Populerity, ruentic ettechnent end oucccee ere
-. oieo perticulerly deoireblo echiew-ente for the young. To

the young, onokin; indeed uey noon to be en inportent otep

*tewerde, .de help in-erewth free: edeieooeueg tooeturity. ‘1

the Irene tout-e7 wee firmly Janine to the tobecco indoo-
try'ef clein of oelf—o'uguletiq .d eollehoreted the m'olm concluoiouo.
hornet-d thet their outrun-we of cigarette odVoetieiee conducted in
it“, 1067. 1960 end 1’61”.” d-eetrete the futility in ”lat-d 0”!
M negoietien of cigerette edwertieiq no Mourning»
mummmmummmm'”

mmmwmmeumnmmumiuc
Mdeddcmrm h—thi-otinotho
tobecco induetry wee willing to co’runieo in order to prowont further

.I.?

oeueroooiouel ection ad edditionel uenetiwe publicity.

The robecco Inertitute ectod in behelf of ewery nejor United Stereo
cigerette eenufecturor except hericee hrendo. Inc., when it notified
the no in Sept-her, 1970 thet e womtery ogre-on; on the diocloouro
"of ”tor” eed nicotine content in cigerette edwertieine would he prefer- "

ehle to rule-coking, litigetion or legioletion. Theoo coqenieo

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136

mood thet they were propered to diocuoo eweilehle nethodo for
tee-ring eqlinee with e woluntery progren. The poooibility of
woluntery newline“ depende in port qon the cooporetion of Anericen
Rondo which hed egreod to oooporete only if the ITC dienioood e pending
«opium egeinet th- churning th- with nioioeding edwertioing. ‘3

Uhile the induotry egrood to wolunterily dioclooo tor end nicotine
oontento, the «outlier induotry donielo of the. welidity end ueofulneoo of
theoo neeeooeo hewoceuntiouod. Upon the reioeoo of the firot'gowernnent
teoeo. conducted by the no in low-her, 1967 the ‘Inotituto releeoed‘o
omen-e: - ‘oeying thet there one nouneientificelly oetehliohod reletion-
ohip heueenter ad nicotine lowolo dd h-en hoolth. In egroeing to
3].":in «donate. the iednotry reitereted ‘ite prewiono contention "
thet theneeeuree hed no reel noening.- “-

. Inortheluee, tehneeo cQ-y eetiono ohow both their concern ehout
edreree pthieitw “$1.1: recognition thet low ”tor" end nicotine
don-tan could he oold cofititiwoly. - In men, '19“ the FTC pertielly
\dtiulrew -ite :eerlier hen on hoolth otet-ento in cigerette edwortioing:

it in the fl—ieoinn'o position thet it in in the public intoreot "
to pronote the diooeninetion of truthful infornetion concerning
Acigeretteo which ney be netoriel end dooired by the conouing
public . . . e fectuel otetonent of the ter end nicotine con-

“ out Genre-ed in nilligrene) of the neinotre. enobe fron e'
cigerette would not be in wioletion of ouch guideo.

I .,) I.

The feiluro of woluntery induotry edwertieing guidelineo won in port due
to the withdrewel of tohocco coqenioo iron the code to teko edwentege.
of the eeood reguletion. Philip horrio noted in ito 1967 Annuel Lego;
thet 1...: ter end nicotine deliwery were the reoult of chengeoin

D.

filtoro. blendo. peper in reoponoe to public denend for nilder cigerettoe

' I.

 

 

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135

and that "thia indicatoa tho induotry a ability to roopood affinotivoly
to coon-or viahoo. " ' ‘

flavour. volmtary‘ cooperation hao had ito linitotiono. Voluntary
«stunt. m not to St cmutttd ao tn adoiaoion by tho induotry that
tho ITC ia authoriaod to pro-ulgato a trado rozulation rulo on thio'
oattor and furthor 'tho induotry dooo not adoit that failuro to cooply
with ito own *vofluntary agrouont conatitutoo a violation of law. ' "

Vol‘éry ogroooont .vith tho induatry my not bring oithor co’opoto-
tioo or coiliooco. Tobacco induotry cooporation to on ito ovo' tor-o
and io a vary ooah aubatituto for sworn-out rogulation with ponoltioo
to mutton. Tho proooot ‘tgtttutt tum tho 'mdutty to toot tho
co-iooion'o right to profilgato a trado roxulation rulo on thia oattor
by tokinx tho can to 'court. J Boraco'l. 'Kornoga'y‘praiood tho oiroooont.
lo “143(— boliovo vo hava again ohowo that Govorooont-induotry mora-
tioo coo and dooo ochiovo doairod raaulta ouch ooro officiontly and
‘oxpoditioooly rathor than tho ontondod procooooo of logiolation, rogu-

lotion or litigation.” ‘6

I Tho ITO accoptod tho voluntary diacloouro plan bocauoo it appoarod
to bo in tho public intoroot to givo tho induotry an opportunity to
riql-on‘t tho knot and. opirit of tho plan. Tho co-iooioo hovovor
rotainod tho right. to roochodulo tho trado rosulation rulo procoodingo
J :to "taho tony othor action rolatin; to thia oubjoct at any tilo it
t 1(loo-o ouch action to bo nocoooary or dooirablo in tho public intoroot.” 6’

I Gonoraliootiono about trondo in tar and oiootioo rm ovor tioo
aro lioitod by a lack of ‘cqforobility bctvooo toot _rooulto. rm tooto
; oodo botooon Octobor, 1968 and Juno, 1970 aro conarablo and ohoo that '

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136

71 voriotioa of cigarottoo toatod docroaood in tar, 23 woro unchansod
and 11 incrooaod ohilo 34 voriotioo docrooaod in nicotino, £1 voro
unchangod. and 30 hawo incrooood.

. Iocontly, in April,l971, tho Tobacco Inotituto onnouncod that .
"honcoiorth nodia advortioing will dopict cigorotto pockagoo logibly
ohowing tho hoolth worning that Congroao roquiroo on tho pockasoo:
"Warning: Tho Surgoon Gonoral loo Dotorninod that Cigarotto Sookin; io
Qangorouo to Your Hoalth.” Onco again Aooricon Brondo_did not join in
tho cooporativo voluntary oifort. lornogay rooophaoiaod again that
"tho cooponioo do not osroo with tho Surgoon Gonoral'o opinion onztho_
rolationohip of auction to hoolth, and ho notod that tho iaauo continuoo

oo o oubjoct of controvoroy noon; ociontific oxporto.”68

Too gonoral trondo con bo citod to indicato tho interoot of tho
cigarotto induotry in producing looo harnful cigarottoo. Tho_introduc~
tion and oprood of tiltor cigarottoo hoo boon ougoontod by coooidoroblo
induotry aovortioino. Coopotitioo boforo tho woluntory coooation of tho
tar dorby woo ioplicitly, if not oxplicitly, hoolth oriontod. and oinco
tho TTC_turnabout allowing diocloouroo of tar ond nicotino contouto
oooourod by tho TTC,_ooyoral cigarotto cooponioo hawo vigorouoly
odvortioodlthoir low tor ond nicotino brando. ’

_nflo noxt turn to tho Todorol Coo-unicotiono Cooniaoion which alao
hao ployod on octivo and ioportont rolo in novornoont‘rogulotion of
cigarotto advortiaino. . . ‘

c. g______odoral W Cgooion__ andc 9m ___oLt_i_o_i_n‘
In tho following ooction on will conoidor tho rolo tho Fodorol

Com-nicotiono Co-ioaion haa' playod in regulatin; cigatotto' advortioing.

i ’ I. ' Iv t -'

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137

rho col-iaaion'a actiona appaat to hava had i-portant attacta in
applying pronouta upon tha tobacco indnatry to chansa ita advartiain;
pelican.“ in hunting cmraaaional action. Our ptaaant purpoaa
it to 01-10. ICC actions in cola datail, conaidorh thair rationala tot
thaaa action “ well an diacul‘a‘ tho raaponaa of tho. tahacca induatry.
In "nail tho pictuta app“:- to ha vary tailor to that fonnd in
coming tha PIC. “’00 ‘actiona arc onca again baacd upon tha‘ Surgaon
Gucral'a upon and «at to 'p'ravant dacaptiva advattiain'g.‘ ‘11:."
indnatry, in toaponaa, has nought to for. a coalition bat£vaan 'thanaalvaa
ad hroadcaat intaraata who ara diractly affactad by co-iaaion actiona
and for who- tha Pcd'acti'ona night hacona a pracadant anplicahla to
tothat *advcrtiaing. This coalition haa fought FCC tagulation and pro-
'poaad aalf ragnlation ‘aa a auhati‘tnta‘. Ha will conaidar FCC raaction
to thia voluntary activity ud avalnata .ita affacta upon tho natnra of
t“wart-oat ragnlation. I - l i, .
Guild-ratio. by tho ICC of ciuratto “would.“ 21:5: occurrad in
tha only 1960's. . “Tho haaia for thin action; had has: laid in 'tha Sui-goon
Ganatal'a rapoit. but tho con-iaaion thought that inaction on ita part
sat macaainnathamhad givannotica that it mid act. unlika
tho ICC. tho FTC W broad raplatory authority to molata all
gladia. _ ‘ . . ,
.. .Hullinn i. nanny. chairnpn.oi tho ICC. atatad.tha basic conflict
-hatvaa tho ICC Q4 tho tohncco inducer-yin a 1966 addraaa _batora, tho
elation“ Annunciation at Woo-tau: .
mmmtm‘mlyhaingcatriadonndiond ._

talaviaion no ona would mt know that tho grant bulk of

'udcal opinion. was a Moon Ganatal'a Report. hon
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138

cigarette smoking and health. Nor is there the slightest hint
that the Congress of the United States last year passed a
Cigarette Labeling Act which requires every pack to contain

the warning -- and I quote -- 'Caution: Cigarette Smoking May
be Hazardous to Your Health.‘ Despite all of this, the sign

on broadcasting's door for cigarette advertisers reads: 'Business
as usual.’ A startling anomaly is thus created. Television
viewers in particular are led to believe that cigarette smoking
is the key to fun and games with the opposite sex, good times
at home and abroad, social success and virility. But as the
individual approaches the tobacco stand and mystically changes
from television viewer to cigarette customer, so the message
changes. Life with cigarettes is no longer beautiful: the
package warns that smoking may have ugly consequences indeed.

The powers of the independent regulatory agencies derive from congression-
al efforts to bring both independence, objectivity and expertise to
certain questions. Both FCC and FTC actions have been the result of
their evaluations of the smoking-health controversy and the necessity
for action within their own jurisdictions.

The PCC's first action came unexpectedly in June, 1967, in a ruling
that the Fairness Doctrine was applicable to cigarette advertising:

The Fairness Doctrine has its foundation in the obligation

imposed on licensees by the Communications Act to operate

in the public interest, which includes the 'basic policy of

the"standard of fairness"' and the broad encompassing duty of

providing a fair cross section of opinion in the station's

coverage of public affairs and matters of public controversy.
The doctrine as applied to cigarette advertising does not require that
each cigsrette commercial be balanced by an ant-smoking spot, but only
that within total station programming opposing views be reasonably

71

represented.‘ Roughly one anti-smoking commercial for three cigarette
advertisements has~been used as a simple measure of balance. This
squared to lpptbxilately $75 million worth of free promotion each year. 72
The FCC ruling resulted from a complaint by John F. Banahaf III who was

concerned "not so much about the dangers of smoking as about the tactics

 

 

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139

73

being used in sdvertising cigsrettes,” end "sbout the use of the

public eirusves. to seduce young people into tehing up snohing without

eny etteqt to tell the other side of the story on television end

rsdio." 7‘

d

The FCC Benorendu Opinion end Orde____r.: Applicebility of the Tsirness

Wwfi

 

 

m 53 _i‘lerstg Advertisigg rejected requests for reconsiderstion
of the ruling uhich were urged by representstiues of the breedcest end
tobscco industries .

The ruling is reelly e siqle end precticel one, required by
the public interest. The licensee, uho hes s duty ’to operete
in the public interest,’ is presenting co-srciele urging the

' conception of 9 product whose nornel use hes been found by the

‘ Congress end the Govern-nut to represent e serious potontiol

‘ hsserd to public heelth. 7 - -

The FCC continued:
This obligstion to infor- the public of the other eide of tilt
netter stone not tron eny esoteric requirenents of e perticuler
doctrine but 1m the sinle fect thet the public into t nouns
nothing if it does not include such e responsibility.
Liggett ad Hysrs co-snt in their l__9___68 Annusl 2291!. typifies the
tobecco industry's resction to the epplicebility of the ”ieirnsss doc--
tries." They noted it es "perheps the nost_1.ortent eduersity in the

"77

*cigerette industry in 1968 . . . , uhile hericen Tobecco celled the

”(sinus doctrine" requirasnt typicsl of the pressures ensrted egeinst

the tobecco industry. 78

The tobecco industry eppeelsd to other industry ms for snort.
especielly as broedceet industry, to oppose the FCC ruling uhich pre-
sented s cm thrust by esteblishing s nsu precedent. ICC co-issioner
Lee Loveinger 9199 cited this nsu precedent: ‘

lo nutter uhet the omission nou seys ehout the distinction
between cigsrette edvertising and other types of divertising, '

.9 1

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140

it is establishing the principle that the Fairness Doctrine

applies to col-arcial edgertiaing, as distinguished tran.paid

political advertising.
Yet. in spite of his reservations Loveinger reluctantly voted for the
ruling "because of a strong feeling that suggesting cigarette sinking to
young people in the light of present knowledge is sonething very close

to wickedness. This sense of noral outrage and anger at tobacco

industry actions or inactions has apparently notivated ITC and FCC
neabera to press for additional govern-ental actions.i —

The broadcast industry was indignant over this FCC action as they
had been earlier with FTC proposals. FCC action was a potentially
catastrophic precedent not in keeping with the accepted role of govern-
‘nent in not interfering with the workings of the tree  enterprise systen.
The fact that the independence of this free enterprise syst- fro.
govern-cut is a nyth has been discussed by nuaerous contenporary writers
including cu.:1.£ ieich inizbg Creenigg §£_Anerica ‘1 and John Tenneth
Galbraith in jr_h._ 31.; Industrial 335;. 32 the broadcast 54...”... itself
is closely regulated by the governnent. While nany peoplem recognise
and accept the ubiquitous govern-ant presence in Iodern business the
tobacco industry and its supporters have consistently opposed govern-
nental regulation and have argued in favor of self-regulation. In fact
independent regulatory agencies have urged voluntary industry actions'
which'would "obviate the need for for-a1 enforce-ant proceedings or ‘-

fl .; ‘ J . . ‘ '7 ' - ”a ‘
sanctions."

opposition to the FCC action has been articulated in a nunber of
different iky.."‘ Vincent T. Easilawski, the president of the lational

Association of Broadcasters, Issued a state-ant declaring, "the FCC has

 

 

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161

ermeted to iteelt the tomletion -et e‘netioeel. policy. . . . oeteide

e! ite-field of erpertiee.” 85 Opponeete of memory ectioe here
ehided (to-pron to mount ite entherity by'oeetreliee‘nc endlor ICC
eetioee.- Conereeeioeel heeriue end utioee hue lereely been e reepoeoe
to nation propeeed by the mend/or the ICC. The tobenoo indeotry hee
preteeted miner the tori-noun; was which follued the i“!!-
one dottrine ruling, collie; the. “protely‘ieen-rete'eed um." 3"
brece- lw'loreeeey, preeideet of the Tehecco luetitute hoe celled FCC
ectioe end the“ reoultiee ehti-eeehine needs-o "diotorted, eieleedioe.
hd- naive prop-nude," thet it “e dieeervice to the hericen people end
to the concept oi turnout. levertheleoo leeel eppeelo by the tobecco
induotry hue feiledeed theuti-uhiee epeto anti-ed.

The “.8. Court of Appeelo for the D.C.. Circuit upheld the FCC
feirueee doctrine rulinxl in Benr____h_e_f v. _T_§_C (Cele Io. 21285, love-bet 21.
l9“). The court pointed out thet ”we ere here teced vith e noet ‘
oerioue .enique deneer to public heelth. 'eutheeticeted by otticiel end

87

Cmrueionel ection . . . "' It in in pert the perceived uniqueneee

of the preeent eituetioe thet hee etieuleted reeuletory ectioe eed

L

leeitinieed ite coetrovereiel neture. The co-ieeion reitereted thie

1 t

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uiqueneee in etreeeiee thet their ection wee limited to thie perticuler
product end thet they were III-ere of eey other prohct co-erciele
celline for ouch ection. In eddition they eepreeoly diocleined eny

intention to proceed eyeinet other product c-erciele. 88

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1‘2

In lobmry. 1969 th. NC "loud I IocoIdgptopIIIdJIlI .rIlItin;
“Acnnfltta IdvIrtiIiII. 1314va of tbo canonical- IItItIri- II
IctioII tIlItiotto cichIttI Idvortiliu.‘ rho cI-iIIiIn .IIIIInIId-
tht it IIuld. bII th woodcut If cumtto curtain by'rIdio Ind
“.101“. ItItiIoI. km 1967 I“ 1969 tho ICC bod pmxIIIId
"II!“ I not ,Ioto outopokII pooitioI roaming cigIrIttI Idvottioing.
acummgrwggmmmmjmm-
I-tly tht "meItItion o! co-IrciIlI panting tho III If Iioocottu
iI iIquIiItIut witb “c.0119“. iuocod .oo buIdIIotoIItI man

"89

iI . tho public iItIIIIt . Mthmu!

It would thI Ippool: wholly It Iddo with tho public law for
broIchItIrI to mount IdvortiIing prcIoting coIqutioI of tbo
”productpooio‘. thiIIIiauIdquotwc- tIIIoIIIdiItItII

of an opid-ic of dIIthI Ind alumna... 0

with tho bInuing of cigIrIttI co-IrciIlI froI tho IirvaoI by
cmtIIIioIIl Ictiou IftIr JInuIry 1,1971 th FCC Ictiou III vIcItId IId
tho co-iIIiou fIcId tho «nation of IhIt would bocoIo of tho Inti-
IIoking IpotI. ‘l'bI co-iIIioI rIIctod by tolling rIdio Ind tIlIviIiou
ItItioII thIt, in Iffoct, tboy would bI rondoting I public Ionico by
coutinuod broIchItin; of Inti-Iukiug co-IrciIlI IVII in tho IbIIIcI
of cigIrottI IdyortiIiII. PurthrIorI, th co-iIIioI IlIo rulod, in
tht could bIcoIo I procodout for IdditioIIl tIIodiIl Ictiou. thIt tho
uokiI; “no lo Io lougor "coItrovIrIiIl" Iud tboroforo, cigIrIttI
coquiII do not nyo tbo tight to rIply to IIti-IIokiI; IttIckI.

ltoIchIt iuductry Ipoko-II vao Itguod thIt tho bII II ciurotto
curciIlI would roliIvI th- of tho "fIirIIII” obliIItioI to dIvotI
IubItIItiIl tiII to tho othIr Iido. In coutrIIt IIIIhI1.vho providId

tho iuotuI Ind rItioIIlI for tho (int FCC Ictiou bIliIch thIt

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”tolovioion‘hII I rooponoihility to Into up for tho tIo docIdII in
which pro-muting IdI wont mm." mm ci‘gIrIttI woman
'hIVI IppIIlcd thiI rcc ruling II I "violItion of tho froo IpIIch,pro-
Viciou- of tho Hut bond-Int of tho ".8. Con-titan”; thIt it to lot
huthotizod by tho mm: Co-xnicItiouo Act, ud thIt it coIItitItII
'illIgIl ccnoorohip.“

Both tho thrIIt Ind tho tIIlity of court action- In mum-
Ind thrIItInId we a m Ictiono. Ira «know tho‘ir own
“mm- undIt poerI grand to tho- by CoIngII tho indeIIdIIt rogulI-
tory coII1IIiouI tho ouggIItId congrcIIionIl Iction to Ivbid longthy
court tIItI of thoir povoro. ‘Tho tobIcco induotry Ind ito IupportIrI
hIVI uch their right to chIllIngc-tho legitiIIcy of coIIiIIion IctionI
'to'dolIy Ind/or ptovont thoI.-

Tho tobacco induotry'o propoIIl to voluntorily IIIoiI it. col-orciIl
IdVIrtiIing {rm tho brOIchIt IodiI cho only Iftor tb btoodcoot- '
industry broko I totally unifiod front oppooi'ng gums-Int ngumion
by propooing I ngduIl IliIinItion of tobIcco col-orciolo‘ovor I (out
'onr poriod. ‘rhoir IctionI moon to hao boon in rooponoo to (motion
'rIiIId in conngIIionIl tact-any Ihich nurturod gun ‘doubto Ibout “.2
InccoII of induItry colt-rogulItion.

In July 1969 tho tobocco induct-y moaodly voluntooni to dio-
contiIuI Iu'odvortioing of cigorotcoo on “which Ind radio to
3¢pt¢Ib0t31970. Induotry roptIIIntItivoo IIid thIt tIo proniooc govornod
thIir Iction: :truthful Idvortioing :- o hIIic co-Irciol right, no
'uoting in In Idult cnItoI. .Thuo whilo may donying tho right of
govornlont to IliIiIItI thoit Idyortioing tho induotry IngId to ronoyo

it Io II not to IppIIl to I young Iudionco. It III tho intontion of tho

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ciprotto “MRI”!!! to "continuo to ovoid Idvottioinc dinotod to

young pooplo." flithdrml a! TV Ind rIdio Idvortiom III in m
with.thio policy.

It "‘ ' s~~ !

JoIoph T. Cull-In, 3rd (TrIIidInt of Philip HorriI) Ictin. II induI-
tty IpItIIIIn cIutiInod tho aovornnont thIt ?ciIIrItto Idwortioioa Ihould
not ho Iinglod out for punitiwo togulItioI. Thono Ito controvgxlioo ONO!
tho poIIihlI.hoIlth.hIIIroI It Iony productI.” no onoo IIIin roitotItod
thIt tho rolItionIhip hotwoon outing and hoolth woo ItItiIticol
IIying thIt: ‘ i I

t

It iI notowotthy thIt, Iftor hoorini oItInIivo IodicIl cctci-Lhy.
tho louoo Connorco CoIIittoo rooontly concludod 'thot nothing-now
hII boon dototninod with roIpoct to tho rolItionIhip botwoon
cigorotto IIoking Ind huIIn hoolth' Iinco tho proyiouo Consroo-
IionIl hoIringI on tho Iubjoct in 1965. 91
lo furthor ItItod thIt ”Tho public intoroIt will boot ho Iorwoo by
diointorootod, objoctivo inquiry by quoliiiod.ociontioto." ’2
Govotnlont IctionI, Ind tho rooolvo Ind dototlinotion of porticipIntI
in govornlont docioion.noking to Ict IgoinIt cigorotto Iloking hIwo boon
buoyed up In unprocodontod nunhor of ItudioI which howo corroborotod
tho concluIionI of tho 196‘ Surgoon Conorol'o roport. Tho fiIpIrtnInt
of 33w roportod to Congrooo in 1961 thIt “tho roIoIrch Ituoiooipuhliohod
Iinco 196‘ tho Itrongthonod thoIo concluoionI Ino hIVI oxtondod in
«II inortont roIpoctI our knowlodgo of tho hoolth conooouoncoo of
IIoking." Tho dopIrtIInt'I onrly toporto hIwo prongIIivoly Itrongthonod
tho concluoionI of tho 196‘ ropott. I N.
Tho YTC Ind FCC homo-uood thoIo furthor Iciontific toIoIrch findinso

to bIck up thoit own IctionI. CoOporItion‘bothon govornnont IgoncioI

iI not ovort but IIch Igoncy'o IctionI it. cloooly'wotchod by othor

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165

agoncios. rurthorloro, tho actions of ono ozone, hora-o fatal haoos
for tho actions of othor agoncios. Ior ozafilo. tho org-ants load to
Justify tho FTC action aro citod by tho ICC in rationalizing its own
“forth; '

Ssrious . considsration was also .ivsn to sthsr factors. in tho {£9

 

 

Notics 91 Propossd blanking. so. difficulty has boos cassod by tho
liaitsd Jurisdiction of mono: l i I ' . . ‘ . '

Thara is an sun-ant that a proscription should only ha across-

ths-hoard, and not just in ono broadcast fiold; that a ban

lioitsd to no fiold mld roanlt. as a practical nattsr. is .

a shift in advertising snonditnros to. tho aoofiroocrihsd arsas.93
Tho FCC conclndad on this donation thot "Us do not holiovo that this
issno can ho avoidsd upon tho basis of what othsr India nay ha doin; or
lay gain iron‘ on: actions”, ‘l'ho amic- m .III demtt‘
1349'“! was also givon Winn. NICO olasrly notod that it ~-
oas tho .prooioo of cosarooaiooal action mmiotinai‘s for a anchor-
sdncation offort -- to mass m 900910 not to onto .1! tomato
prosant mm}. of tho hazards to thotr hoolth w that "tho we
wall-homotonindnstry.hmmsnhataotial. Minoan-ado:
tho upon-acct tho public hoolth " Thoma: forth-r clsarly
statadthat "nintond mpromdonthatptuioo. unions itiosat
asida hy Court-o.“ In avaluatins tho Wm ad token ind-strys'
clai- that an advsrsa‘ ,tinanoial m: mold: result fro- 1.1—mum
of thafairnoss doctriao mm.mw:. Is soon-cit ton
thacontantion that our ruling will load to asaans ovum or
possihls alt-tsunami 91mm sdnrtisias or hon a saris-s not“:
inact on. tha ”W 13ml century to: tho intont of congross

in tho Lahaling Act. 9‘

 

 

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146

The FTC hao eloo been very ewero of the poooiblo econonic conno-

quenceo of ito ectiono. In ito l9“ trede regulation rule the PIC noted
the following:

So far no the inact of thie tredo regulation rule on the

~.cigerette induotry. and derivetivoly en the total nationel

oconony, ie concerned, the ceteotrophic conooquenceo of

'Co-iaoion ection predicted by acne of the witnoeoeo oi

the public heeringo in thie nettor ere entirely too opocu-
lotivo to weerent the Sg-iooion'o toiling to perfor- ite
cloer ototutory duty.

The cmieeioe continued: . . . i .

Io note that the witnoeeoo who ergued econonic hardohip at the
public hearing did no in tho for- of naked eooertion. lo
eepporting date were eddnood thet would afford tho c-ieoion;
lore than e purely conjecturel beoio for eoeoooing the econaic

,, hardohip, i! any, that conplianeo with t” trede. rogolation-

rule pronulgetod herewith would entail.

Congrooo hee aloo been concerned about the poeeible econonic iqect

of ito ectiono. The Bouoe reporton onthe Cigeretto Labeling and Adver-

tioing Act conteino the following otat-ent of thie concern:

«In

The determination of epproprieto rhodiel action in thin eroe.
ee teen-ended by the Surgeon Geoerel'e Advieory Co-dtteo.
in e reoponeibility which ohould be enercieed by Congroeo otter

.ceeoidoring ell fecete of the probla. The proble- hae brood

inplicetiono in the field of public hoolth and health roooarch,
end involvee- potentially {era-reaching ceneeeoonceo for a odor
of ooctoro of our oconony. The entire tobacco reioing end
nonufecturing induotry, and the onerous hweinoeaeo ohich non-hot.
tobacco products ere involved. Solo proponelo hove boon node

in thie axon-which night lend to eeveto curtailing or the i ..
poooible elinination of cigarette advertioing. Thin could hevo

e-oerieoe econonic iqect on the television, radio, ad pub-

liohing induotrioe in the United Stetoo. 97

lcwhero io it ouggeotod that the governont oheuld annotate the nego-

tivo econonic coneequencoo of ite ectiono or that it night hove a

rooponeibility to do no. The dividing line between public and privete

rooponoibility in an area on proeoing ao hdan health in uncloer, yet

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167

iaplicit or explicit in nany govern-ental ectiono or propoeed ectiono
io ito own unwillingneeo to act. The iaplicit aeoumption apparently
romaine: the government which gcverna leaot governo beat.

The FCC, for example, iooued a ”ooriouo call" to the broadcaet
induotry to (acne upon what ito rooponoibilitieo are, in light of the
public health roporta. In the wordo of Senator'lagnuaon and‘Hro. Carpter
quoted by the com-ieaion: * , :

The broadcaet induotry by following ite own code could, in fact,

obviate the neceooity for Congroooional action by voluntarily -.

refuaing cigarette advertioingssa they now refuae‘advortioing

for firearna and hard liquor. -

Voluntary ectiono have been propoeed an an equivalent aubotitute for
government regulation, yet. eo we have econ the two are not neceaaarily
equivalent. Ewen government ectiono which appear to be directed towarda
oolving the problen ooeetiaeo becoae part of the problenl themaelveo.

Take for example the case of the total elimination of broodcaot cigarette
advertioing.' The coemiooion iteelf apecifically rained the iooue of
whether there ehould be an exemption oo ae to intern the public concern-
ing cigarettee low in tar and nicotine and related filter aopocto. -The
nonunion requeeted co-ent' on thie 'poeoible exeqtibn and mnemo-
their concern with the poeaible negative conaequencea of their propoeed
action. flininating advertioing alao ammonia good an of cap-:1-
tion and prevento or at leaot olcwo conouner owitching'fron’one brand to
another. “ _ . ”_4‘ i- ‘ "

D. The Tobaccoh M552 and the Col-iooiono

‘Cigerette advertieing hao clearly‘heen a union focuo of government
interoot and regulation by both the FTC and the FCC. There hee been a

great dieparity between tobacco induotry advertieing and oelf-rogulaticn

\_ 151

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158

and-mlaatiaaa by=tha contain“ and aapaciallya-a'af ital-barn
at what would ha in tha public intaraat. Elaan co-antad that "cigaratta

advartiaino rallacta a ainola niadad daaiga ta uniniaa pniitn -hy’

.99

nailing an naay cigarattaa aa paaaihla. ' Ia {and that than waa no

raal aviduca that cithar cigantta aannfacturara or broadcaatara could
ha W apanl toaawatha "tha hadlaamhatrata a! ca-arciala pounding

h- tha dacaptiwa naaaaga that niganatta aching iaLa plaauat and

109

“tidying habit by haalthy and atttactiwa hoopla.” Ia addition, 6

than. who haa haan aacaptionally oatapahaaon thia lama. onlplaiaad
“WI.'x'--ul f- ,1 ‘ z 1:.”-

. that. ia nothing in tha‘eaaatitation at aw: wanted lila that
coapcla tha Anarican paopla to put up with thia aitnation
indafinitaly. In rccant yaara thorn haa-haan iacraaaad n
rccognition of tha duty of govarnaant to protact tha conawain.
'pwhlic againat tha'haaarda of wnaata or wawholaanaa atodwcta.
In tho caac of cigarattca, howcvar, thcra haa hcan Inch
toncatn but littla action. no can an- obligation to out
childran to halp than avoid bccoaing hopalcaaly trappad in tha
'cigatctta aanking habit .. a habit which, when thay ara old
anough to appraciata ita dangara nay ba iaaoaaibla for
thaauta haaah. 101 . .v.

A “at-“ aofiraaaiaaal rcptaaanaatiwaar havlalaovoioad aiailar
ltaatwatioa with gout-um cigatattm cooking aaaaataar- Ear-mu;
laaatot Elma manhuiobaatwads .: -' - .w

‘~ In manadin; haricana to atop anohia; wa hava failad
abyanally. Va arc plainlyvnot auccaa'ding in araaing or «an
taking a: significant input on thia our widaapraad public
haalth prob]... In wicw of tha annuity of tha dancer.
on: ra-adiaa hava hcan pathetically inattentiva.. Out on.—
aantaaca warning on cigaratta packagaa and our scat-tarot :
apot ca-anciala againat unkin, an .rcqnirad by tho redaaal'
Mcationa. en-iaaiaa, are .all aflorta whan pittad
haniaat tha indutry' a cmtaav and“? llama}. anodi-
taaaa tar charactc adwauialnaa

Tho mmfi. alao attains tor. thn inch of @423» coon-ration. than
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149

eteted his belief thet concrete in posting the Cieerette Lebeliee Act
of 1965 hsd: '

"canto-pletcd thet the cigsrette industry would inpose effective
voluntary lilitettene upon sdwertiein. which, oowbined with
extensive education celpeigne end the coepulsory warning on

the pechege,we3§ht edeqwetely elett the public to the hseerdt

of eloking. "

l~ e «-

Theec expectetione were thwerted by the leck of self-rcotreint on the
pert of the cigerette industry end the increesingly lerger sdvertising
budgets. One high govern-out officiel hes been so outspoken es to cell

induotry efforts "phony end coepletely inept," end thet "tough_ Cter

control over cigerette edwertising broedcests night hewe eeved then froe
govern-ent ection." He continued thet "they could here reguleted thee-

selves, but they were e bunch of greedy besterds." This increesin;

1 ‘. I - 1 "

swerenees of the feilure of self-reguletion hes forced greeter govern-

eentel ection. The conflict of econonic profit vereue the 'public good

-""‘I f t e

hes been e centrel if unerticuleted concern. ’
The cigerette eeoking-heelth controversy is en ieeue wrepped in

profits on well es in reseerch. FCC cow-ieeioner litholes Johnson

1'

hes conpleined of the tee-ins reluctence of sons broedcesters to eccept

the spirit of the  :.1:§... doctrine end its reletionsbip to cigerette

e‘ I 1 ' r

edvertising:

tor, once e'ein, it is the sppeerence es well so the reelity
thet eaves eee's eewls. And, unfortunately free the steedpeiet
of the broedcestere' reletions with their public, broedcesting's
iwecoeregeeeet of cigerette censulptien is en issue‘wrepped in
profits es well to property - indeed, roughly $200 Iillion of
edwertisins revenues e yeer. tor, whether or not the juduleet '-
be werrented, eseocietion with profiteble enterprise dependent

‘ .qoe— the preeotiee of diseeee, undercut or degredetion of
one'e fellow~nen - especislly children - hee hietoricelly
been viewed in‘loet hwlee societies with even less cherity then
the seneelese crininsl set which produces the sole end. It is
true thet $200 Iillion is not en insignificsnt elount of eoney

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_ V —|

 

150

voluntarily to forogo. Int oapocinlly if ito loan in ultinntoly

inovitoblo anyway, it nay bo for choopor in tho longrun to gain

tho goodwill of voluntnry forobonronco than to rink torovo:

tainting tho good nono of Anoricon broadcaating. 10‘

Tho TCC ond tho FTC hnvo both.honod for induotry cooporation and.noanin¢-

ful oolf-tognlation. Tho oboonco of both cooporation and noaningful
w-toonlationuhoo antononiaod and onoorod oaoo con-iooion‘lolbora.

'Tho nhaonco of nooninaful voluntary oction by tho tobacco ond broadcoat

mum“ in tin Dnitod Stok- l-o ati-Ilotod ad in all-ovum torcod

vigorouo cooniooion oction that night hovo othorwioo boon avoidod.‘

Tho FCC and tho FTC hovo boon oblo to act bocauoo of congroaaional
authorisation. Thoir rolativo indopondonco in tho proaont oituation hao
mtoctoo tho tron ooooooic ooo political om. Tot. uhilo thoy
can act thoy can only act in a lfinitodinonnot. Thuo, rogulatory con-
aidorotion hao. found around tho probl- of cigarotto advortiaing. m
toonlatory conniaoiono aro liadtod in tho focno of thoir actiono. but
not in tho focuo of thoir conoidorationo. Thoir indopondonco in thin
oitoation hao boon crootod by tho oniqoonooa of thoir actiono. lo
tobacco indootry atratogiat gown Inch conoidoration to tho poooibility
of trodo rognlotion ruloo rognrdin; an ontiro induotry. In rogulatin;
brood catooorioo of action inotood of apocific violationo (which could
ho oo oaoily contootod in tho coutta) tho FTC woo oblo to focua tho
onootton of cigoaotto advortioino.on to o highot lovol of canoidototion.
Tho inportanco of indopondont octoro. including tho rognlotory conninoiono
:- spurt-g Mal «up. 1- tho Unit“ am“ on boon onciol. '
Without th- conoiootation of tho iaouoa ond (wort-ontal action would

havo boon at loaot pootponod if not proclndod.

 

 

 

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16.

151

Footnotes - chapter 111

U. 8., Congress, House, Connittee on Governoent Operations, False
and Misleading Advertising_(Filter-Tip Cigarettes) (Washington:
0. 3. Governnont Printing Office, 1958). p. 25.

 

U.S., Federal Trade Commission, Trade Regulation Rule for the
Prevention of Unfair or Deceptive Advertising and Labeling_of
Cigarettes_ in Relation to the Health Hazards of Smoking_and
Accompanying,8tatement_ of Basis and Purpose_ of Rule (Washington,
1964) (in the files of the Connioaion). P. l.

 

 

 

 

 

 

Ibid.

U.S., Congress, House, Connittee on Government Operations, False
and Misleading . . . , 1958, pp. 21-22.

 

ggggg. p. 23.
.1222?

323g,, p. 24.
ggggg, p. 22.

bedL, p. 24.

Ebid.

Ibid., p. 25.

£2_£y‘

Ruth Brecher o__t_ a__l_., Tho Conaunerflg“ Union 3522.15. m m__ and 1:11;

Pub__Jlic Interest (Mount Vernon, New York; Conoonoro Union, 1963),
’e *FSAo

 

Ibid., p. 155. Also see Thomas Whiteeide, "A Reporter At Large: A
Cloud of Snlte, " The New Yorker, Nave-bet 30, 1963, pp. 73-74 for
additional infornation.

Brocher 35.5., p. 165.

Ibid., p. 154-155.

 

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Ibid.

U.S., Federal Trade Commission, A Report on Cigarette Advertising
551 Output (Washington, 1963), p. 2b.

U.S., Department of Health, Education, and Welfare, Smoking and
Health: Razort of thg_Advisogz Committee £g_£hg Surgeon General
g£_£hg Public Health Service (Washington; U.S. Government Printing
Office, 196k), p. 33. This report is often referred to as the
Surgeon General's Report.

 

 

U.S., Federal Trade Commission, A_Report . . . , p. 3.

 

Ibid., p. 7.
Ibid., p. 6.

u.s. Federal Trade Commission, Official Transcript of Proceedings
Before the Federal Trade Commission in the Matter of Proposed Trade

Regulation Rules £25_£hg Advertising and Labeling of Cigarettes
(Washington, March 16, 1964) (in the files of the Commission), p.

1708.

3233., p. 1910.
gy;g., p. 1914.
1331., p. 1837.
1225., p. 1781.

For a discussion of administrative rulemaking see Ben C. Fisher,
"Rule Making Activities in Federal Administrative Agencies," :35
Administrative Lg! Review, XVII (Summer, 1965), pp. 252-262. Also
see David L. Shapiro, "The Choice of Rule Making or Adjudication
in the Development of Administrative Policy," Harvard E2! Review,
LXXVIII (1965), pp. 921-973, adction on cigarettes, pp. 963-67.

U.S., Congress, Senate, Responses to Questionnaire 22 Citizen
Involvement and Responsive Agencx Decision-Making: A Report

__—_————__————_____—__—.—

1969, p. 123. See the response of Philip Elman, "Administrative
Reform: The Federal Trade Commission," pp. 122-192.

Ibid. . P O 166 0

Edward F. Cox, Robert C. Fellmuth and John E. Schultz, "The Nader
art" 22 the Federal Trade Commission (New York: Richard H.

Baron, 1969), p. 77.

Ibid., p. 78.

SCI

 

 

 

 

                       

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Ibid., p. 123. Congressional Action will be discussed later.
0oz, Fellsuth and Schultz, from the Introduction by Ralph Nader.

U.S., Federal Trade Con-ission, 1967 Retort £2DCongrees (washing-
ton, June 30, 1967), p. 6.

Ibid., p. 7.

”To'ics: Govern-ent in the Marketplace," The New York Times,
February 28,1970.

125$,

U.S., Federal Trade Connission, 1967 Report £2H;_;_; , pp. 8-9.
Ibid., p. 13., '

Congressionai Quarterlx,;flarch 26, 1965, p. 535.

U. 8., Congress, Senate, bonnittee'on donnerce; Hearings, Cigarette

Egbeling‘gggbAdvertigigg, Part 1, 89th Cong., let Sess., 1965,
p. 563.

‘U. 8., Congress, House, Connittee on Interstate and Foreign Connerce,
“Regulation §£_Radio and Television Cigarette Advertise-eats, 91st
Cong., lat Sess., 1969, p. 148.

John D. Morris, "Cigarette Code on Ads Dropped," The New York Tisea
October 13,1970.

121m.~ 1;.
~U. 5., Federal Trade Cos-iasion, 1967h “no; to . . . , p. 26.

Ibide. ppe 28-29a .

See concurring state—ent of Coinissioner Elnan regarding Cigarette
mttomuas. ~

‘11. 3., Iederal Trade Co-isaioa, 99; am“ to m hunrnzton.
l19681, p. 31. ,

Ibid., p. 30.
llbid.

('1

u. S.,.Pedaral Trade cos-iaaion, 1969a Regorg 52,nggms(wash1ngcon,
1969), p. 32.

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Ibid.
Ibid., p. 34.

0.8., Congress, Senate, Hearings . . . , 1965, p. 251.

 

News release from the office of Robert F. Kennedy, New York,
September 1, 1967.

U.S., Congress, House, Committee on Interstate and Foreign Commerce,

Regglgtion 21 Radio . . . , 1969.
Ibid., p. 10.

Ibid., p. 18.

Ibid., p. 19.

U.S., Federal Trade Commission, 12§2_§£pggglggiL_L_L , p. 30.
Letter from the Tobacco Institute to the FTC dated October 13, 1970.

See, for example, Liggett & Myers, 1966 Annual Report, pp. 7-8.

 

U.S., Federal Trade Commission, News Release, March 25, 1966.

John D. Morris, "8 Cigarette Makers To L15: Tara in Ads," The New
York Times, December 24, 1970.

Ibid.
The Tobacco Institute, News Release, April 15, 1971.

Harold S. Diehl, Tobacco and Your Health: The Smoking Controversy

(New York: McGraw-Hill Book Company, 1969), p. 163.

U. 8., Federal Communications Commission, Memorandum Qpinion_ and
Order in the Matter of Television Station WCBS—TV, New York, N. *Y. :

___————————_————.—_, —__.—.'

Applicability 2; the Fairness Doctrine £2 Cigarette Advertising
(Washington, September, 1967), p. 6.

 

 

"Fairness, Freedom and Cigarette Advertising: A Defense of the
Federal Communications Commission," Columbia Law Review, LXVII,

p. 1480. Also see NBC, Inc., 16FCCF 2d 956* in which the FCC held
that anti-smoking messages must be presented on a virtually daily
basis in ratio to the smoking commercials (e.g. no greater than a
5-1 disparity), including during periods of maximum audience
listening.

Christopher Lydon, ”Ban on TV Cigarette Ads Could Halt Free Spots
Against Smoking," Th; New York Times, August 16, 1970.

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Tho-as Whiteside, "Annals of Advertising: Cutting Down, " The New

Yorker, Dace-bet 17, 1970, p. 66. Henry Geller, FCC Special

Assistant to-the-chairnan~for Planning, consented that "Mr.
Banzhof's couplaint was important, because while terse, it did
constitute the focal point of FCC action. Letter from Henry Geller,
October 15, 1970.

Ibid.

U.S., Federal Col-unications Coulission, Memorandun Opinion and

 

Order . . . , 1967, p. 42.

Ibid., p. 43.

Diggett and Myers, 1968 Annual Report, p. 5.
Anerica'n Tobacco, 1968 Annual Inert, p. 16.

U.S., Federal Connunications Commission, Memorandun Opinion and

Order . . . , 1967, p. 3.

Ibid., p. 6.

Charles A. Reich, The Greening g£.AIerica (New York: Random House,
1970).

John Kenneth Galbraith, The New Industrial State (Boston: Houghton
Mifflin Company, 1967).

U. 8., Federal Trade Connission, Trade Regulation“ Rule for the
Prevention of Unfair or Deceptive Advertisin ng and Labeling of Ci a-

 

Tho-as Hhiteside in his article "Annals of Advertising: Cutting
Down," The New Yorker, December 17, 1970, has narrated a vivid
picture of the nostly behind-the-scenea conflict that has developed
over cigarette advertising.

 

Ibid., p. 66.

The Tobacco Institute, Hews Release, December 15, 1970, p. 1.

Banzhaf v. gederal Colnunications Col-ission, Case No. 21285, D. S.
Court of_ Appeals for the D. C. Circuit, Hove-bet 21,1968.

U.S., Federal Cos-unicationa Collission, News Release, February 5,
1969, Report No. 7866.

0.8., Federal Con-unications Con-ission, Notice gf_Progosed Rule
Making, February 5, 1969, p. 7 (in the files of the Counission).

rettes in Relation to the Health Hazards of Smoking and Acconpanyigg’
Statement of Basis and Pg;pose_ of Rule Zflashington, 1964), p. 153.

7

 

 

 

 

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U.S., Federal Colnunications Collission, Notice g£_. . . , 1969,
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Ibid., p. 10.

U. 8., Federal Trade Collission, Notice of Progosed_ Rulem mg,
196‘, p. 23. '

Ibid., p. 25.

u;s., Federal Communications Commission, Notice gg_. . . , 1969,
pp. 16-15.

-1‘ .3;

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-rs:‘ ' "r" .‘ \

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a
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- ‘ i i '

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'nua, _

121 . 'As quoted in Elnan's concurring Opinion.

Ibid‘ ‘ ' ‘ “. ‘ ”'
0 .
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U.S., Federal Communications'Commission, Mhnorandua Qpinion and_
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Nicfioles Johnson. "' ’ '1 _' _ ' ‘

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cmter a: Congressional Behanse
Wieseldemgmnd eetieae, he's ialb“, eventually led
to the pane.- of on cause:- labeling us Advertising u: of 1965. 1
Prior ts its enact-at, Congress had been ihudated by proposed reasdiel
actions to response techs m... Mu advisory Cs-ittee report

and ts the prepeeed no trade regulation rules. hay bills were intro-
duced in Congress to infer. the public! of the beserds at cigsrette aching.
dental approaches to the proble- wese incorporated thhsee‘ bills:

(1) to require that cigarettes sold in interstate mus
be labeled with a health warning, and/or with a dis-
closure of nicotine ltd tar content: ' '

(2) to confer on the FTC the power and duty to regulate

_. advertising and labeling of cigarettes; - .
(3) to ansnd the Federal Food, Drug and Cos-stic Act so
' ‘ to sake that Act qplicable to shun” -.
(6) to provide for infornational and educational c-paiuls
.~ by m to acquaint the public with the health haa‘ards
involved in the use of cigarettes and to provide for
' esntiausd research in this field; and -. .

(5)to toenjoin all Govern-ntal agencies, etc., fro- taking
swastiuerpursaingnypsuoywhieh seer
proaotea the public to buy or use cigarettes.

hearings were held during the Second session of the 88th Consress by
the house interstate and Foreipn Co-eros co-ittee to ”review the scienti-
tic evidence of the causal link between sinking and cancer and, if Federal
action was found to be required in the interest of public health,to
deteraine what approach would be neat desirable." 3 In reality, the hear-
ings also were held ts present no iqssttien of its; proposed trade regula-
tion salts by substitnuel tenureseienll legislation which would preeapt
agency series. '

b

157

 

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158

lbs legitiaecy oi 'geweronutal regulation ad its streets upon the
free enterprise syst. w- oueetioned in the house hearings. This issue
was a central philosophical ad practical concern of business groups and
brought e “or at other We interest groups into a coalition opposed
to ”meow.“ .cugres.‘ Koreagay stated:

. . .dutwehs‘vswi-eesedtodeyisanexpressiooor

a bare and arrogant grab for power by a agency, a grab

'tss pour reserved by:the Congress for itself with the" I

panic good in mind. No industry in the United States

is today sate tree the grasping tntscles of Federal

Agency donination under the authority presently asst-ad

by the Trek Gadsden. . a
W's str'stegymndlhat a! the tobacco industry and to attract eupport
imbeth industry "a and congrea-ee who were also fearful of federal
agency «gelatin. hemegsy continued first "i strongly oppose wisps-er “
grd and strongly deal this magmas should now roses-rt its Indore for '
“pursuit“ torthsgouoieertsss Wm”! flhs frc
did hut-vet suppert'tbe tobacoe industry in its caution that etarerenl -
local regulations! dig-arts advertising In ltelieg would create s greet '

6. "the use-try nun testified-choruses

d‘eel oi chaos-ad extrusion.
eve-m is does about prey-eras steal": iooal sctiesthere welde-
*er-hefmtsnflletoryrestim.“ 7*” . .E‘

.Groqa mmaflmufipleoed on thedetensive~
by our W to am sun, regulatory action m‘u- the
a. tin-supporting the-“oer it. nterpria‘e .syatu. June “draw
«near society addressed itselt My to this poetics: .2

[He hem] in nu eerie-o free‘ursrprise m. an
in the right of - industry to govern itself for the
benefitofenkind. but theinduatrynustehihie
self-evident, or sub-it to Governeset Control.

To cucluds: We believe in the freedo- oi the individual
in: lb dens e! um “king. We are opposed to

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159

legislation th‘atweuld prohibit the seeking-of cigarettes.
Yet we «copies and point out to you that the reduction
of cigarette asking otters greater possibilities than
ay other available adieal or public health neasure for
the prevention of cater, of serious illness, of physical
disability, at suffering ad of praatere dagth in this
country- an astounding etatenent, but true.

health interest group arm-ants were weakened by their inability to present
a alted front. In fact, seas groups worked at cross purposes as we will
casider later. Featheresre, eva greqa winiin the fedaul bureaucracy

were divided as to how to ' aboutrreplating. hhh repraeentatives, for

. r g.

eagle, earned” ad specific legislatia to bring the labeling of

£1

cigarettes adar the: ledaral hast-done Iubstasae est wbieb conflicted with

the proposed no aetisn. 1'0 i .. ‘ ,

l'ba hearings batons the lanes lnterstste: Wand Foseign Ce-erce Connittee

ended without ay legislative race-endations because of insufficient ties

for further hearings ad for the preparation ad consideration of care-

i l r- "
fully drum legislation. 11 Additional hearings were held by the co-ittee

.- f ._ lr
during the 89th Congress, ad hearingd also were held by the Senate Co-arce

I ‘ ‘

Coaittee. The Senate co-ittae 1’2 concurred with the Surgeon General's
Advisory Co-ittea in the judgesnt that ”appropriate readial action was
warranted” while the house eo-ittee was "urnrilling to conclude for or

against the nadical opinions eebodied in the Advisory Co-ittae's Report

s: 41.3

or the nadical evidence elicited by its own hearings. however, the

.a

knee co-ittea did race-ad that congressional action should be taken

with regard to the relationship of saking ad health, if only to alininate
the delay caused by industry court tests of no trade regulation rules

whihh would go into effect in the absence of congressional action to super-

seds it. 1‘ Oren harris, chairea of the co-ittee, cadidly suggested to

1
tobacco industry representatives:

 

 

 

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169

. . . you had better etart a lot of thinking en'thie and
cone up with eoncthing that everybody can live with or
eleeleuepectllregulatialieiyeingtohealotnore
revere than you night expect.

.3

me reeulting congreeeional legislation entitled the Cigarette
Labeling ad Advertieing Act of 1965 16 (Public Law 89-92. 15 U.S.C. 1331

_e_t_ _e_g.) otated:

It ie the policy of the Congreee, ad the purpoae of

-, thie-hat. to eetalieh a'ceareheeeiwerrederelpregra
to deal with cigarette labeling ad advertieing with
'reepect to ay relatioeehip between enohing- ad health;
whereby- (l) the public nay be adequately inforled that
cigarette aching nay be haeardoee to. health by the"
inclueion of a warning to that effect on each package
or cigarette” and (2) nuance and the netienal ecoeow.~
say be (A) protected to the eaxian extent coneietent
with thie declared policy and (B) not inpeded by direree,
non-uniform and confusing cigarette labeling ad adver-

. tiring regulatioee with reapert- ee- ay relationship. ‘
between enoking ad health.

~

Pritechler, in hie book The Politico o__fs noting, called the bill ”are a
.. 17

victory for cigarettee tha it wee for health. Elizabeth Drew in her

article ”The Quiet Victory of the Cigarette Lobby- how It l'omd the beat
Filter Yet- congresea,” raid the bill "waen' t a exaple of congreeeional
initiative to protect public health; it. ie a unabaehed act to protect

”18

private induetry tron pwernnant regulation. Luther Terry. for-er

U. S. Surgeon General eaid ”l would never infer that Congreee intentionally
perpetrated a hoax, but to ey interpretation it turned out to be that.

"19‘

deepite the good intentione of the Congreee. The lot prohibited for

three yeare any require-ate by ay federal. etate. or local authority ..

that cigarette advertieenente include a etetenat relating to enoking and
health. Until the acte expiration in 1969 the FTC ad the FCC were pro-
hibited tron requiring health warninge in cigarette advertieeeente. Senator

Maurine heuberger reacted cynically to thie iaoeed noratorit- etating

JCI

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161

that "while Congteee ca Lenore a rotatoriun on warning etataate in-
advertieing there out be no parallel Intention on the Mediated die-8e
cell-ed by enoking.” 2° Drew'e -aalyeie of the eucceeeful peerage of the
bill preanted earlier euccinctly explained the- elmu oi the rebecoo
intatry'e ence-em etrategy.

Meet le. the cm ihduetry wiaed to prevent the cheer
o: een-aiten ecu. ad local ee'-xenon ence could mummy raiae
Chit heel: of doing bmineee. ‘ To gain a crucial objective. miter.
regulation. the ind-try wee willing to W by adding ‘a health
waning on their cigerette packape. Drew noted in addition that "the
label nightewenbe‘abaeoi eoroe‘, providingawdetaee for the
‘ wintry in further pereonal injury can brought by cigarette enokere."21

hebill aloe mired the Secretary“ 83v! t'o rub-ll: matte to
Cagreee anally outerniag current intorletion on the health ooneequencee
of enohing ad recoeeadetiom for Iegi‘elarien. The no den one reunited
to rub-it yearly reporte which we use ‘alr‘e’edy dieoue‘eed. - The new reporte
cited mam tilee in thie: «any; we: were ”a ready been": at pro-
greeeively gri-er official reporta on the 'eone'equenoew of wanking.“ 22

In 1969. houee' and Senate he‘arin'ge «an were e’pur'red‘ when the no
ad l'ccnotified than of propoeed rule-aking after the aspiration.“ on
1965 act ad ite atatorit-‘on agency action. The FCC gave notification
on February 6, 1.969. of propoeed 'ruleeiting to ban cigarette advertieing
iron radio ad televieion in the Ma of 'a contrary congraeional

.23

direction. a: May 20. l9“, the no iooued a notice of propoeed trade

uh

regulation rulee requiring that cigarette advertieaenta bear a health

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162

Both the henna Interetate and Foreign Connerce Connittee and the
Senate Connerce Connittee again held hearinge to coneider further govern-
nent action. The Horne connitteeconcluded in ite report that "it in
incunbent on the Congreee to net on the reported legielation to prevent
intreeien by the [FCC] and the [FTC] into baeic.areae of policy raking _

n 24 0n the bgeia of ite exteneive

which it her reeerved for iteelf.
cellittee haeringa. the Houee connittee concluded that nothing new hae
been deterlined with reopect to the relationehip between cigarette ranking.
and health aince ite hearinge in 1964 and 1965. 25 Nevertheless. the COI-
Iittee recon-ended reenacting the 1965 act which would prohibit the pro-
poeed FTC and FCC ectiono and added a etronger warning requirement on_
cigarette packages to read:- . '.-1

Warning: The Surgeon General Hoe Deternined That Cigarette

Smoking in Dengeroue to You56health and May Cauee Lung

Cancer and Other Ddaeaeee._ v . '5 . . ~ .n

HEW, the FTC and the Departnant oi Connerce had reconngnded that
"advertieenente advice the_public, particularly for thejbenefitvof new—
nnokare, of the hazarde." 27_ HEW euggeeted that,"lewele of Iter'3aad
nicotine in cigarette enoke.ehonld.be.publiahed.on cigarette packager, on
cigarette vending nachinea, and in all advertieenente." 28 A ninority
report by enveral Home coaittee pnbera opposed preenpting independent
regulatory.conliaaion action. .They carpentedt_

It in a very dangerooe propoaition that Congreee abould ..

take over regulatory functione in the care of epecial

intereete fron.the agenciee which have th! reeponeibility
for protecting the health of the Nation. 9

They euggeeted that "it would probably be beat not to have any bill
at all and let the nor-a1 proceeeee of govern-ant proceed with thie product

ne with all other producta." They continued that "if there in to be a

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163

bill, then it ehould not be a weeping carte blanche protection for a
particular induetry fro- eny regulation for 6 yeare by the [FCC,] the [FTC]
and the individual atatee‘.” 3° . -.

Senate hearinge 3]- c. later than there in the Boone and faced two
rnurln'iuing develop-ate: (l) the National neociation of Broadcaetere (NAB)
Inlatarnd to eliminate gradually all cigarette advertising a radio and
television ever a n year period; and 32 (2). the tobacco induotry countered
with an offer to rennve all cigarette advertising fron radio-end television
by Sent-bet, 1970,. if all ati-trnet *cdaideretiona enuld be‘wnivered.
“The. MD offer c- after (aging teetinony wee heard which criticired
industry alt-regulation. The tobacco indnetr'y preponl drab btrong oppeei-
tion- fro-the NAB in behalf of the broadeneting tea-err; which cited the "
our $200 Iillion in lent revenuee which it would after. The Senate
”aince-propoeed the alienation et‘all televieion and radio breadceeting
0f cigerette .ndvertieeante after. January 1. 1971 an well an etrengthened
cautionary labeling. The propoeed .bill also extended the preenption of
etate and/or local health regulation or prohibition ef cigarette advertie-~
inc and propoeed“. additional aeratortee an no action ia the area until
July. 1972. ‘

The propoeed Senate bill net with etrongoppooition free advocatee of
etoonger governor". regulation. Senator hee'a tilibauer threat, in light
of FTC and FCC-propoeale which would take effect-atterexpiretion e! the
1965 act reeulted 1n a-etrengthened act. The final reeolt, entitled the
Fublic health Cigarette 'finktna Art at .1969. eliminated all cigarette
advertising on_ radio and television after January 1, 1971 ad strengthened

the warning label on cigarette packagee. In addition the not extended the

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164

preeeption of state or local health regulation and prevented additional
FTC action regarding cigarette advertising only until June. 197l.

The United States Congress prinarily has reacted to actions pro-
posed by the independent regulatory agencies instead of acting independently
on the seeking-health issue. The tobacco industry's position has found
strong support in Congress .o'ag representatives tree tobacco growing
districts as well as free represwiutivu opposed to increased goverannt .
and/or regulaton apcy control of basineaa. The industry has had to
coqroeise to obtain legislative action which would prevent harsher action
by the FTC .d the FCC Cid to obtain national uniforn control our cigar-w
atta labeling and advertising. The benefits of Congressional legislation,
as we have noted. have been aired. legislative intent has not necessarily
resulted. in legislative effect. The congressional hearing systea has
produced a great deal of testiaony and debate but little of it has ban
new.‘ The grand covered in congressional hearings has been basically
covered hetero by. the regulatory agencies.

Yet, while Congress has played a reactive role a nuber of individuals
have played inportmt aajor roles in breaking down the privatisation of
the issue. w. I-eett, vino. Merger. Elbert Kennedy. John Hess
and Dunk Muss m .11 atteepted to spur action. Their iailurea are '
lindicatiwe o! the ability at tus mere“: internet with peeerfnl
political ,friends and allies to block legislation unfavorable to its
interestw. .It ia netusorthy ant. til. tohan. ”try did not oppose
' either thel965 er the 1969 Cigarette Labeling and Advertising Acts which
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1.

2.

11.
12.

13.
18.

165

Footnotes - Chapter IV

For a discussion of prior legislative attenpts see Ruth Brecher et al.,
The Consuner' 3 Union Report on Smoking and the Public Interest (Mount
Vernon, New hork: Consuners Union, 1963), pp. 184-185. Also see U. 8.,
Congress, House, Connittee on Interstate and Foreign Connerce, Hearings,
MI; mtte Wling and Advertising, 88th Cong., 2nd Sess., 1964, p. 69.

 

U.S.eledaral Connuaications Connissien, Hanoraadun 92m hand‘Order .
in the Matter of Television Station “CBS-TV, NCU’YOtk,L.Y.:_App11COt10n
of the Fairness —Doctrine to Cigarette Advertiein (Hashington, Septenher,

 

. 1967), p. 6.

Ibid.

U.S., Congress, House, Connittee on Interstate and Foreign Connerce,
Hearings . . . , ‘19“, p. 136. .

3111.
1239,, p. 120.
914., 1;. 159..
Ibid., p. 293.

Ibid., p. 29‘.

. U.S., Gangrene, Bones, Ce-ittu on Interstate and Foreign m,

Hearingg, Ci rette Labeling‘gggnidvertism g -- 1965, 89th Cong., lat
Sess., 1965, p. 12.

U.S., federal Connunications Connission,'uenorandun Qpinion ggg_0rder
. . . ,‘p. 13.

038., Congress, Senate, Connittee on Connerce, Iaarisgg, Cigarette
414—3. 09th ”9" m as... 1965.

“as. I,‘ 1‘.

U. 8., Congress, House, Connittee on Interstate and Foreign Connerce,
hearing! . . . , 1965, p. l.

8J1

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15.
16.

17.

18.

19.

20.

21.
22.

23.

26.

25.

26.
27.

31.

32.

166

Ibid., p. 166.
The law was ands effective January 1, 1966.

A. Lee Fritchler, Saoking and Politics: Poligzgg§ing agg_the Federal
Bureaucrag (New York: ATton-Century-Crofts, 9), 11:11.2.

zlisabeth 3. Drew, "The Quiet Victory of the Cigarette Lobby: How It
Found the last Filter Yet - Congress," Atlantic Monthly, Septeaber,
1965, p. 76.

0.8., Congress, House, Interstate and Foreign Connerce Connittee,
Bearings, Cigarette Labeling and Advertising_- 1969, Fart 2, 91st
Cong., 1st Sess., p. 268.

Cited in Richard.A. Hes-an, "Cigarettes and Health: A.Legs1 Analysis,“
Cornell §!g_Quarterly, LI (Sun-er, 1966). P. 727.

Drew, Atlantic Monthly, Septeaber, 1965, p. 77.

Elisabeth 8. Drew, "The Cigarette Coepanies Ubuld Rather Fight Than
Switch,” ‘T__h_s;_ ye! York ‘l'ines Magazine, May l», 1969, p. 129.

0.9., Federal Connunications Connission, Notice of Prgggsed_ Rule
Making, February 5, 1969. (in the files of the Conaission).

U. 8., Obngress, louse,'Coenittee on Interstate and Foreign Connerce,
Fub%ic Health 8aoking_ Act of 1969, 91st Con3., 1st Sess., Report No.
91" 89 e)“. 5.19 9 Pa _‘_—5e

Ibid.

Ibid., p. 2.

Ibid., p. 11. The Connerce'nepartient opposed labeling require-ants

for export sales which would disadvantage Aaerican cigarette exports.
Ibid., p. 9.

' Ibid., p. 1:.

Ibid., p. 3‘.

Ibid. Congress-an Eckhardt noted that ”it is lost paradoxical for
those who profess great respect for States' rights (but whose southern
districts produce tdbacco) to favor a bill providing that Congress

has preexpted the field of controlling all advertising to the exclusion
of the States.” Ibid., p. 38.

See U. 8., Congress, Senate, Connittee on Connerce, Public health
Cigarette Saokin ‘Agg_offl 1969, 91st Cong., 1st Sess., Report No. 91-566,
Deceiber 5,1969.

Ibid., pp. 8-10.

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Chapter 2; National Health Interest Groups and Smoking

A. Introduction

National health interest groups in the United States have played a
crucial role in the smoking and health controversy. They have focused
attention on the problem and pressured for government action. Four
groups requested the Public Health Service investigation which resulted
in the Surgeon Generals report. Many have supported efforts to reduce
cigarette and pressured for government action. In the following chapter
we will consider some of the public statements on cigarette smoking by
four national health interest groups: the American Medical Association,
the American Cancer Society, the American Heart Association and the.
National Iuberculosis and Respiratory Disease Association. Over time
they have become increasingly aware and opposed to cigarette smoking.
we wdll discuss the National Interagency Council for Smoking and Health,
a coalition of health interest groups formed with federal government aid
which has helped coordinate anti-smoking efforts of both government and
private health interest groups.
B. American Medical Association

The American Medical Association (AMA) has played an unclear and
almost contradictory role in the smoking-health controversy. From an
observer's standpoint, what was not said was as important as what was.
‘Drew Pearson and Jack Anderson presented a picture of the machinations

going on behind the scenes of public statements:

167

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168

Anticipating the Surgeon General's report on snaking and health,
the tobacco'nen sought to counteract it. They offered to fin-
ance a new AMA study of the seeking hazard, thus hoping to give
the impression that the Government report wasn't conclusive

and that smokers need not kick.the habit until the AHA results
came in at some indefinite date. In return the tobacco lobby-
ists pronised to use their influence in Congress to block the
medicare bill. The doctors were more concerned about Iedicare,
which they fancied to be a threat to their fees, than about the
threat to the nation's lungs. So it happened that those who
abet and those who cure illness lay down together in Iillennial
bliss.

They reported:

After cancelling an earlier tobacco study on the ground that

the Surgeon Genersl's investigation.would Iake it unnecessary,

the AMA suddenly approved a brand-new study Decerer ‘, 1963,‘

on the eve of the great struggle over Iedicsre. To finance

the study, the AHA accepted a $10 Iillion grant for tobacco

research froI six cigarette coIpanies on February 1, 196‘.

In June, 1963, the Florida AHA group had proposed a resolution which
declared that "if anking anong school children continues to increase at
the present rate, total disability and death froI d-age froI pulIonary
diseases will becoIe so great as to produce a Iajor*Iedical and econonic
catastrophe in this country." The AHA.noted that it was in accord with
the intent of the Tlorida resolution but that "becauae of the stature of
the [AHA] it cannot incrininate a single factor as an ideological agent

" 3 They continued that "the

in disease without coIplete docuIentation.
AHA is continuing its study of this inortant subject and is Ierely
deferring any public pronounceIent pending the availability Of‘lflt‘
infornation." . . .

In response to FTC proposals for a cautionary warning stat-ant on
C1Sarette packages in 196‘ the AHA stated: I

‘Hith respect to cigarettes, cautionary labeling cannot be anti-
cipated to serve the public interest with any particular degree
0! success. The health hazards of excessive anking have been

 

 

 

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169

well-publicized for more than ten years and are comIon knowb
ledge. We do not believe that the answer to the cigarette
problem lies in cautionary labeling requirements. Experience
in other countries indicates that the effect of such labeling
at best is only to reduce temporarily the consumption.

As Pearson and Anderson had noted "the letter sounded almost as if
it had been written by tobacco men instead of medical men." ‘ Neuberger
stated in her 1963 book that the AMA "long maintained an uncharacteristic
silence about smoking."

She noted:

As late as December 1961, Dr. I.S. Ravdin, [later] President of
the American Cancer Society, flatly accused the AMA of 'pussy-
footing' in its approach to smoking. Yet the AHA's unique role
as spokesman on public health matters for a substantial segment
of the nation's doctors make it imperative that the AHA.apeak
out on smoking. 5

In September, 1968, the Committee for Research on Tobacco and
Health reported on the 114 grants that had been awarded to independent
investigators using money from the $18 million fund. They concluded that
"no new evidence has been adduced in these studies or elsewhere which
would substantially alter the conclusions of the 1966 Advisory Committee

or change the policy of the AMA House of Delegates as expressed four

years ago." 6

At the AMA's 1968 Ieeting the House of Delegates passed the follow-
1ng resolution:

Resolved that the AIerican Medical Association again urge its
lembers to play a.IaJor role against cigarette sIoking by
personal exaIple and by advice regarding the health hazards
of smoking; and be it further resolved, that the American
IMedical Association discourage smoking by means of public
pronouncements and educationa1.programa; and be.it further
resolved, that the American Medical Association take a strong
stand against sIoking by every Ieana at its comIand. 7

 

 

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170

’ AHA actions and insctions are significant because they eliminated
possible unified efforts by the health interest groups. While the AHA
has played something of a passive role the American Cancer Society, the
AIerican heart Association and the National Tuberculosis and Respiratory
Disease Associetion have led a cooperative effort on the part of many'
v.9; health interest groups to focus dttention on the controversy and "
to obtain government and public action.

" In 1%"1, the heads of these three. groups and the American Public
health Association‘urged the President to establish a cOIIission t6 study
the ‘wide-spread implications of the tobacco problems." In early 1962‘5
representatives of these four organisations met with Surgeon General '
Luther I.‘Terry and shortly afterwards he recommended the edtablishment
of an advisory committee composed of ”outstanding emperts dho would
dasess available knowledge in thii area (smoking and health) and make

8 ‘The Surgeon General's report resulted

appropriate recommendations. .‘.*
from the suggestion of the four health interest groups.

Earlier the American Cancer Society, the American heart Association,
the National Cancer Institute and the National heart Institute had
jointly'iponsored a Study Group on snaking and Health. 'In its report
issued March 6, 1957 the groupiconcl‘uded‘that:H

‘The sun total of scientific evidence established beyond resino-

able doubt the cigarette smoking is a causative factor in the,

rapidly increasing incidence of human epidermoid carcinoma of

,the lung. The evidence of a cause-effect relationship is . 9

' ddequate for considering the initiation of public health.measures.

' After the TCC's fairness doctrine ruling the three major 0.8. health
interest groups:‘ the American Cancer Society, the American Heart Associa-

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171

anti-smoking TV and radio spots. 10 we will next briefly consider the

proposals and actions of these three national health interest groups.

C. National Tuberculosis and Hespiratory Disease Association

 

The National Tuberculosis and Respiratory Disease Association
adopted its first program directed at the smoking problem in 1960. It
pointed to the "alarming increase in deaths from.lung cancer-cigarette
smoking is a major cause of lung cancer-the risk of lung cancer increases
with the. number of cigarettes smoked." 11 .The organisation stated that
"Parents, teachers, and physicians have a special opportunity and a duty
to warn our youth of these facts before the cigarette smoking habit has

, l2

become established. State and local TB-RD associations were urged

to establish programs to inform the public of the hasards of smoking.

One of the socidty' 's main activities is working with teachers so
that children and teenagers can be informed as to the serious conse-
quences of adopting the smoking habit. Since 1960 the association has
produced publications, film spots and teachers' aids designed to help
persons either not take ‘up or to abandon it. '3

In 1966 the association and the Public Health Service sponsoreda
meeting of experts to discuss means by which resources for tuberculosis
'and other respiratory diseases could be improved and to enuIerate those
isteps which were most urgent in an accelerated attack on these condi-
tions. Members of this task force agreed that "the single most signifi-
cant action which could be taken to prevent dhronic hrsmehitis, and to
reduce the incidence of chronic obstructive pm” dis.” would be

the drastic reduction or elimination of eigarette smoking. “ 13

In.

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172

Association representatives testified at congressional hearings in
1965 and 1969 and urged strong action by the federal government to pro-
tect the American public from the dangers of cigarette smoking. In 1959
the group supported action to ban cigarette advertising on television and
radio noting that the 1965 Labeling Act had failed to exert any signi-
ficant influences on the smoking habits of our population.

; Moreover, in.l967 the NTRDA acted as a friend of the court in sup-
porting the "fairness doctrine" as it applied to cigsrette advertising
on the airways.14 The association was founded at the turn of the century
to fight tuberculosis and ia.now the oldest voluntary health organization
in America.‘ Itn anti-smoking programs have become an integral part of
its efforts. fit has provided through its more than 1300 affiliated
”locations an organisational framework within which a widespread
.(grassnoots).snti-smoking movensnt can develop and function. ‘

D. American 32.99;! Society . ‘ ‘ ‘

. The-American Canoe: Society has cosmitted itself to publicize the

;‘Inta about snaking.snd health. .It has believed that an informed public

,gauld decide whether to smoke or not to smoke., While the society has

goppesed s "probibitionist'.’ solutiom’to the problem‘they have called for

astrens leadershis and national action by government and ,by “voluntary
.hsslth agencies. .In their 196‘ statement to the YTC they noted:

* : Unless those with responsibilities for protecting health act
vigorously, the public will understandably forget and light
. up. Warnings in advertising and national government action
‘ are important, but we must also have energetic, persuasive
educational programs in every community worked out with the .
cooperation of physicians, schools, public health officers, ‘
w.ttsds unions, churches, responsible clubs and organisations. .

 

 

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173

In its testimony before the House Committee on Interstate esd.loreisn~
Commerce in 1964 the society carefully.defended the free enterprise
system while at the same time warning the industryi

The ACS believes in the American free enterprise system, and in

the right of an industry to govern itself for the benefit of

mankind. But the industry;mus§ make this‘self-evident, or

submit to Government Control.. 5 1 . A

In testifying at the 1965 Senate hearings on cigarette labeling and
advertising the society commented that "We in the American Cancer Society
feel that Congressional Action is.as important as the findings of our

n 16

scientists. Earlier in their teatimony they noted:

We feel very strongly that the time for the argument over the.

evidence is past - only the spokesman for the tobacco indus-

try are interested in pumping life into this argument. Today,

we lust tiye action to warn the public againat cigarette_4.:

smoking.
In 1967 the Board of Directors of the society recommended that all
cigarette advertising in all media be terminated. They voiced the hope
that this could be done voluntarily without government action. 1They
suggested that "the elimination of cigarette advertising may do much to
destroy the social acceptability of this dangerous habit. It will make
giving up-smoking easier for many, and it will stop the constant media
pressures on the young to start smoking." The ACS also elaborhted on!
their earlier statement that cigarette smoking must remain a matter of
individual choice hdding that "We want the choice to be not only informed
but free from seductive advertising appeals." l A - ' h
h.‘ American §5£££;Association

The American Heart Association has also been long awhre of the rela-
tionship between cigarette smoking and disease. 0;. Lewis January, |

former President of the group, testifying for the group at the 1969

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176

House hearings, said that "The weight of evidence we face requires the
AMA to act against cigarette smoking as in fact we have done against
other risk factors of heart attacks. 19 On January 18, 1969 the Board
of Directors adopted a very strong position on cigarette smoking:
' Cigarette smoking should be discontinued entirely or sharply"

limited. The American Heart Association favors such action .

to be taken voluntarily by the tobacco industry. If such is

not forthcoming the American Heart Association would support

legislation towards this end. And I emphasize -- consistent
with constitutional principles.

January observed in his testimony that

. The cigarette industry has had 4 years to alter itsadvertis-

‘ ing policy. If it chooses not to do so voluntarily, then we
believe that there is a need for stronger congressional action
than we have had in the past. 21 ’ " ' '

He suggested that the AHA supported legislation that would seek in
constructive ways to reduce further the number of cignrette snhkers in
the nation, and the hazards inherent in present-day cigarettes. He-
concluded suggesting that “We are in fact, we think supporting progress,
and we are respectfully telling Congress:. '00 not go backward - go
forward and we are with you.'" 22

. 'The American Cancer Society, American Heart Association and the
National Tuberculosis and Respirntory Disease Association have supported
efforts to reduce cigarette smoking.‘ In noting the opposition of health
interest groups, a Tobacco Institute spokesman compained that ”instead
of a nassive assault on the scientific mysteries of reported associations
between smoking and illness, nany of the competent research support-
sources have diverted publicly collected funds into wholesale anti-ciga-

".23

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175

regulatory agencies and the Surgeon Generals.
F. M Igterggencz Council 93; Smoking and Health

'. lut while the najor v.5. health.interest groups back.governmsnta1
action, their lack of unity weakened efforts for stronger action» In
1968, to facilitate.the development of amounting and health coalition
of national health interest groups,.tbree government agencies helped
establish the National Interageney Council on Smoking'and Health.. The
Council has served as a median of exchange for groups and organisations
concerned with the snaking problem. It was intended as an instrument
to, disseminate information on existing and .ergiag programs and
materials dealing with smoking as a health hazard. The group began with
fifteen private health interest groups and three government agencies:
v.3. Children's Bureau, 8.8. Office of Education and the 0.8. Public
Health lattice. While the AHA is presently a member of the grOup, it=
wasn’t at its inception. In 1970, the council had some 26 private mem-
bers end 5 federal. government agencies. 2‘

Luther Terry cosmentod that tho National Interagency Council "is

( l ‘

the national focal point providing direction. co-ordinatiou and impetus
in mobilities for action our national effort to reduce the wasteful toll

25 To this ende

of self-induced disease related to cigarette smoking.
the group~apousoted several conferences including the 1961 world
Conference on Smoking and.Hca1th and the 1970.Hatioual Conference on
Smoking and Health.for member.groupa~and others "to compare experiences
and to exchange ideas. to report on nes:medical and scientific findings
.‘dtt. renounced programs of research, education, and public and-

citizen 9°9‘03 easiest cigarette smoking." 26

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176

=As in the case of v.8. tobacco'grouera ths'orgnnisational problems
in exchanging information and cooperating slowed discussion and inter-
action and inhibited their ability to pressure for governeent notion.
Once again the‘prohlee of providing a collective good proved very
difficult vithsut‘estside aid. Through grants and contracts the federal
geverneent provided benefits which allowed health interest groups to
publish a-newsletter on seeking and health and eeet at conferences'
such as the lstioeal Conference on Seeking and Health and the world
Conference on Seeking and health which have been aided by govern-ant
grants.' in with the tobacco growers, the government has facilitated
the creation of an interest group, a political constituency to support
its efforts and to pressure for additional'effortss

In commenting on the governeent‘s role in funding the council,:
leesld .a Inll in his-hose cooperative Lobbying - £35 tower of Pressure 27
otated:.

This 'voluntary' association has thus tapped federal funds to—

create a permanent office and staff with the avowed purpose of

' propagandining taxpayers and their children to change their '

attitudes and tastes. As Senator Morton would say, 'If ciga-

rettes today will it he tailfins, boots and movies tomorrowt'

At best, this aggears to be highly questionable use of tax-

payers' funds. ~. ‘ .. . - - -“’

9 is hell also notes the product of these subsidised groups of this

type is “political and the public is unaware of the relationship" between

the group and the government. ?9

the government his played an ieportant
and”relatively'enaeplored-rsle in organising latent interest groups in
the United States. In the smoking-health situation only a very small tip
of the apparently enormous iceberg of government creation has been uncov-

ered. As we eentioned previously tobacco grower groups have also been

611

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"177

created and continued by distributing government benefits.

Recently opponents of cigarette smoking have taken a different
tack. Surgeon General Steinfeld said that the "non-smoker may have
untoward effects from the pollution his smoking neighbor forces upon

him. It is high time to ban smoking from all confined public places such
I: 30'

1 . , . ‘. ,
as restaurants. theatres, airplanes, trains and buses.

The focus of public attention may shift from the smoker to the non-
smokar. If the percentage of cigarette smokers in our population
declines, limitations on smoking in public places may become a reality.
lhe social acceptability of smoking is very much a matter of custom and .
as afficionados of chewing tobacco and the spittoon as well as those
who fancied snuff know; social custom and taste are extremely fickle.
Cigarette smoking is not_the only use of tobacco and with the threat of
health hazards and governmental pressures, a new form of smoking any
become the fashion. E: ‘ J H J ' I: i' i ' '
' grhe Federnl'flviation Administration has already considered the need'
to further regulate the smoking of cigarettes, cigars. and pipes by _
persons in the passenger comparteenés of aircraft operated by‘air
carriers2 air travel clubs. and commercial.operators..3l‘ The fan ruled
in May. 19l3 that emoking is permissible on plants, but that smokers and
non-smokers be separated.‘ The Interstate Commerce Committee has also

considered banning seeking on interstate buses, and an ICC hearing

.enaminer recommended action. 32

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1.
1.

3.

"o

5.
6.
7.

I
.0
..
\
' V

9.

10.

178

Footnotes - Chapter V

Ir. Pasrsee and Jack Anderson, _T! Case ainst m: - 5 cs. ell-

a Indictment g Comtioe g_e_ glitol Hill a York: Simnend
Ichmetmrr, B69), ’0 329.

Ibid., p. 11!. The same incident was reported in James Ridgeway, _T_l_:_e_
Closcd Corporation: American Universities in; Crisis (New York: Random
Icons, 1968), p. 103. - - - . I

 

3

U.S., hderel Trade Co-ission, Division of Scientific Opinions, Bureau
of Deceptive Practices, Statements _o_e; Cigarette Smoking and Health ‘21.
United States and Foreign Health Associations and Orggizatioes, _
Hedical Societies, Governmental Public Health Bodies, and Officials,
and International Health grganinations (Washington: undated, but
apparently 1966), pp. 7-8.

 

 

 

Peareon and Anderson, p. 339.

Maurine b. Heuberger, Smoke Screen: 'Tobacco nnd the Public L__elfare
(Englewced Cliffs, lieu lousy: Pruiice—Hall,lmc ., 19635, p. 81. ,

Cer—

 

Journal o__f_ the American Hsdical Association, CCV (Septefier 2,1968),
p. 105.

U.S., Congress, House, Co-ittee on Interstate and Foreign Co-erce,
Hearingg, Cigarette Labeling and Advertising -- 1969, Part 1, 91st
Cong., lat Sess., 1969, p. 321.

r
e . '

U.S., Federal Trade Co-ission, Trade Regulation Rule for the
”evention g; Unfair g}: Deeaptivs Advertising and Labeling _o_f_
Cigarettes in Relation to the Health Hazards _o_f_ Smoking and
Accompanying 8tatemsg_l__ of Basin and Pumas 9__f Isle (Hashiegtee,
196‘), ’h 120 -. .

 

 

“9" ”a ”lab -

lea Philip I. Daugherty: "Adeertiaingt deti+Seehing Spots leltiply,"
The lot York Times, October 6, 1967 and Philip H. Daugherty,,"Adnertis-
leg: Anti-Seeking Spots," The How York Times, July 21, 1969. The
tobacco industry has vigorously protested against these spot advertise-
ments: calling than "grossly inaccurate and misleading." Alenander I. ,
later, ”Lag luress‘fohaceela,’ The lew‘Yesk Times; .Jansary.ll, 1970.

.a ‘ . e
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11.

12 .
13.

15.
15.

20.
21.
22.
23.
2‘.

179

u. 3., Federal Trade Co-ieaion, Division of sgientific Opiniona;
Bureau of Deceptive Practicee, Statcnente onC igarette Soaking. a ,
p. 9. The compilation vae Iade part of the public record in

preparation for the hearinga on the FTC WWW
Hulee for the Advertiaing and LabelinT__ of Cigarette .

Ibid., 9.,5.

U.S., Congreee. Senate. Conauer Swen-ittee'oi the Co-ittee on
Connerce, Hearing-{Cigarette Labeling 93 “refining, 9let Cong.,
let Seee.. 1969, p. 630. See etateant of Dr. John L. Coqertr,
Preeident of “RDA.

Ibid., is. 631." '

U.S., Congreee, Houee. Co-ittee on Interetete ad Foreign Co-erce,
Hearings, Cigarette Labelm £3 Advertiain‘, 88th Cong.. 2nd 8eee..
1964, p. 293.

0.8., Congreee, Senate, Conittee on Co-erce. Hearing, Cilgrette
Labeling _‘_AMvenuigg, Part 1. 89th Cong., let Seee., 196 , p. 161.

Ibid. . p. 1”.

Harold S. Diehl, ‘robac4_-_.__o ‘an__¢1 Y_o_u_r Health: _'fh_e_ 1.35.121 Controverq
(lav York: HcCrav-Hilll Hook Coapny. 1969). p. 197.

 

0.8., Congreae, Houee, Co-ittee on Interetete and Foreign Co-erce.

Hearing, Cigarette Labeling 23 Advertieinl -- 1969, Part 2, 9let
Cong., let 8eee., 196 , p. 50‘.

 

_I_b_i_¢_i_., p. 505.

1935;.

113;!” p. 506.

lhe tobacco Inetitute. §_ege_ Heleaae, January 3, 1971.

In 1970 the following gronpa were were: AIeric. Acad-y of
fediatricte, A-rican Aeeociation of Health Phyaicel Education ad
Recreation, AIerican Cancer Society. AIerican College Health Aeeociat-
ion, hericn College of Cheat Phyaiciana, AIerican College of
Phyeicina, Aperican College of Surgeona, AIerican Dental Aaeociation,
Aaerican Heart Aeeociation, AIerican Hoepitel Aeeociation, AIerican
Indical Aaeociation, Aaeric- Hurae'e Aaaociation, Inc., AIeric-
lberaacenticel Aeeociation, American Public Health Aeaociation.
AIerican School Health Aeeociation, Aeaocietion of Claeerooa
teachere of the NBA, Aeeociation of State and Tutorial Health Officera,
loy'a Clnbe of Antica, National Board of long Ho'e Chriatin
Aaeociatia. national Ioerd of Yong Uo-n'a Chriatin Aeeociation,

 

 

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IE.» York, no _dates, . 7.

180

National Congress of Parents and Teachers, National League for Nursing,
National Student Nurses' Association, National Tuberculosis and
Respiratory Disease Association, Public Health Cancer Association of
America, Student American Medical Association, U.S., Children's

Bureau, 0.8. Depart-ant of Defense, 0.8. Office of Education, 0.8.
Public Health Service, 0.8. Veterans Adadnistration.

National Interagency Council on Snoking and Health, National Conference
on Snoking and Health: __ptenber 9- 11L 1970, A Suanagy_ of Proceedings

Ibid.

Donald R. Hall, Cooperative Lobbyin .— The Power of Pressure (Tucson,
Arizona: The University of Arizona Press, _19 9695.

Ibid., p. 316.

 

Eggg,

Environ-ental‘éstggg, II (January 23, 1971).

See IDS Federal Register, 35(PR 5045), March 25, 1970.

“No Snoking Signs on Buses Advised by ICC Exaniner," The Wall Street

Journal, February 9,1971.

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_ _ .......r* r__“"

 

Chapter 1;: Surgeons General 9}: the Public Health Service and Smoking

.A. Introductiqg‘

-The‘9eb1ic lehlth-Servioe and ite lhtionel Clearinghouse for Smoking
eed.leeltb heltheen the focal pointa of governmental action againat
cigarette Man: it the United Statea.‘ In the following (section we‘vill
aim the increasingly 'oetapohen oppoaition to cigarette mung by
Snageeaa General of the 0.8. Public Health Service. '

la 73 Public Health“ SerVice and Cigarette Snohi_ng_

 

 

0.8. Surgeoea General of the'hblic Health‘Serv‘ice Lather Terry,
Hillia- I. So-ant nae Jeane Steinfeld have been outapohen opponenta of
cigarettaznohing'md van critical'of‘the tobacco indnatry. Their
“ta and the role they have played haa been very ainilar to the one
played by Sir George m, 6111“ Nicel- Officer, of the Britiah
Hiniatry of lbalth. nth w and the U. S. Surgeona General have acted
aa public gadfliea, publicizing the controveray, chaatiaing the govern-
eent for ita laaaitude and propoaing new efforta.

h only an: July. 1937, that Surgeon General Dr. Leroy Barney
new "1'!- w Health service :51. the veight of the evidence
in increaaingly pointing On one direction: that exceaaive snaking ia one
of. the ceuaative factora in lung cancer."1
I ”Steinfeld co-ented at the National Conference on Sucking and Health
I ..

in 1970:

I believe the tile in ripe for govern-eat and voluntary groups
to nount a sore vigoroua pan. on all fronta to portray

181

 

 

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182

cigarette anohing aa uhot it really in - a dirty, anally,
foal chronic tone of auicide nith the added unfertainty ot
‘rnaaian roaletta' for the individual anoher.
he otated in the one apeech that'uhile he didn't anueat that the
t-peign againat cigarette coking be atoppad for the. aahe of the tobacco
tanner he did anggeat that “we give eupport to thoae noyuenta deaignad
to help there people aritch to other forna of agricultural production
or to-o'ther liner of work." 3
« ‘ Terry. rho hecana Director of the lational lateragency Council on.
baking and health liter being Surgeon General noted in. bio teatinany on
the‘proeoaed.1969 legiolatioo that the 1965 not nee inedeauates Ia con-
tinned, "I would never inter, that the congreao intentionally perpetrated
aheax, but to Iyrintetpretation it turned-out to he that, deapite the
good intentiona' oi the congreu." l.
«Barlior'et the Hotld conference on. Smoking and leaith in 1967 he
otated: _ . r L-
In here. one to.the endiol ent‘drain thevanohing and-health ,
tiald. The period of uncertainty in over. lhile acience will
continue to probe the tea-on, why, there in no longer any doubt
the cigarette rooting ia a direct threat to. the naer' a health.
He continued: '
today. atled vith iectathat cone froncaretul-aoientiiie
inquiry, no are on the threahold of a new era, a tine of
.~ nation, a tine for public and private agenciea, enmity

groupa and individual citiaena to work together to bring
, -. SMOIMCIIWIWIII'..M aoatrol. . .- ~. 2:

wwnm- littmtlmsiieiheL“? __Public
.._.!-.E!. m 3511!! voiced very ohilar: aantinenta to thoee expraaaed
in Britain by tuba. he noted: - - , : '

trebleno ornated by cigarette aching have node thia a diffi-
cult hoolth inane: Effoetiue prerentire pronto-o out be

..
7.

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183

crested if we ere to neet' seoking' s grave challengeto hmn
health successfully and reduce the burden of suffering end

econonic loss involved. 5

Wilbur J. Cohen who wee m Secretery in 1968 was very outspoken on

the snaking end heelth issue unlike his predecessors or successors. For

TObecco end

 

unple, Heurine heubergeir in her 1963 book Smoke Screen.
the Public Welfare reported thet when Secretery of m, Anthony
Celebreeze! bed publicly co-ented‘thet "he did not considen it the
proper role of the. rederel govern-ent‘to‘ tell citizens to stop snaking.

She continued thet ”this curiously eebiguooe steteeent could heve eeent
thet prohibition wee not e solution to the enoking problee It could
s responsibility

equelly heve been interpreted es denying the goveruent'
”8

even to educete its citizens to the dengers of seoking.”

In contreet Cohen cleerly ‘delineeted the obstecles which her the

wey to reaching the goels of the goveth progre- in his 1968 Annuel

hart 52 the President:_ ,_

One is econonic, involving public revenues, egriculturel incoee,
end industriel profits. The second is eociel ecceptebility of
cigerette sucking end its neer-eddictive hold on neny people.

A third is the posture of those who insist thet the heelth ‘ ‘
heserde of cigerette snoking heve not been proved, despite the

evidence. 9
In eddition to suggesting thet the werning stetenent on cigerette peck-

egee be strengthened end thet the " level of ter end nicorine‘ should be
printed' on cigerette peckeges end in ell edvertieeeents, he elso

:3 I"

suggested the following'gover-entel steps'be teken:

‘1'th for-e1 lieisoe between the govern-sot end the tobecco indus~
try, begun by the m secretery in 1968. be sup rted. It is
eesentiel to strengthen such cooperetion to dee with the snoking '

end heelth problen. .
' The: increeeed epproprietions be eede to support reseerch, both
basic and beheviorel. _lie eust leern eore ehout 'whet ele-ents

 

 

 

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in tobacco canoe bar-fol effecteonhuanhealth andehou; we
out at the ease tine learn note about why people aloha, how

than who want help nay be.helped.to reaiat the habit, and .
we auat work toward the discovery of a nonhazardoue cigarette.

That increaeed appropriation be made to broaden and expand
prograaa of public infornation and education. Special efforta

. are needed to take advantage of iaproved methoda of teaching,
children about the effecta of anoking. The Departnent ahould

eupport the training of claaarooa teachererend‘ the preparation

of teaching nateriala to acco-plieh thia.
That Federal taxea on cigarettee be aubatantially increaaed

and aade uniforn throughout the Nation. When the national
eaenn-y auffera exceaa illneea, diaability, work loae and pre- _
nature death along cigarette anokera, aurely a greater uee of
Federal taxing authority ie juetified. torbelp finance neceaaary

reaearch ‘ and educational prograna .

Cohen, a Denocrat who wae a lane duck eecretary at the tine, placed a

‘ I 5+ 1

aubetantial burden to act on hie Republican aucceaaor, ouch of which

57 I I

apparently ha been ignored. 1°
The ability of 0.8. Surgeona General to vigorouely apeak out on the

flaking-health ieeue ia at leaat partially due to hie iaolation fro-

political ‘preaauree. 'Once ‘appointed during hie tern of office he ie not

eubject to dianiaaal or threate of die-iaeal fro. the congreea or free

the Preeident. The independence of both the independent regulatory

agency eo—ieaionera and the Surgeona General hao been crucial in allow-
ing then to play auch an inportant role in preeeuring for greater govern-

lent action. Their ability to apeah out and the protection afforded by

their poeitione haa allowed the. to act ea focal pointe of expertiae and

I I... !

preaeure. c
. The Depart-ant of Health, Education, and Welfare hae enphaaiaed that

ito e.ok:l.ngz and health progr- would cooperate cloaely with the atatea
and with health and education agenciea aa well a with voluntary health

The National Clearinghouae for Smoking and Health waa

organizationa.
l) to reduce the number of

out up within HEW to achieve ite objectivee:

ta
3:)
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185

people sacking cigarettes; 2) to reduce .the number of young people taking

up cigarettes and 3) to help develop less hazardous smoking for those

who do not vish to quit or are unable to do so. The clearinghouse serves

as a repository of scientific information, carries on a national program

of public intonation, and educational projects, and carries on research

in smoking behavior and methods of cessation.

The NCSH has negotiated contracts with national and local organiza-

tions aimed at developing and carrying on specific programs. The

government has acted as coordinator and facilitator, without setting up

a large organisational infrastructure. While the program staff is not

nearly as modest as the Canadian program its budget has remained at
about $2 million. 11
N088 has expanded its original goals to "develop a climate of

opinion so that cigarette smokers unable and unwilling to quit will
«:12

e

accept a less hazardous cigarette and less hazardous ways of smoking

Steinfeld has called the ICSH the focal point of federal smoking and

heal th activities.

Task Force for Smoking and Health

6.
In Hos-her 1967 Surgeon General Stewart appointed an ll-member

Task Force .to resin ad evaluate government and private programs aimed
at: seducing cigarette smoking and‘to recs-send further steps that might
be taboo. M occluded thet "h believe the health dangers are so
arise- and the pmgr-s to net th- are, relatively, so inadequate that
1131’- in mad for a vigorous moderation in protective action." 13 they
cared that "than is and hes been a continuing serious Malance between
force.- which encourage asking and those which encourage cessation

fine

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106

or restraint." 1‘ The advisory group recommended that the Public" Health
Service's educational and research programs should be greatly expended.
The Task Force made specific reco-endations in five primary areas:
1) advertising and promotion; 2) education of youth to prevent cigarette
sacking; 3) influence of health professions on their clientele; 45) use

of group approaches to prevent or reduce sinking ;’ and 5) development

of less hazardous cigarettes and ways of snaking.
The report is notable for its vigor and directness in attacking

cigarette snaking and the cigarette manufacturers:

Cigarette smoking is one of the foremost preventable causes of
death 1‘35““ United States as well as in other parts of the

world .

The most impelling consideration to the Task force in arriving
at its race-endations is the Mean suffering involved in the
death and disease that are linked with the smoking habit-.16 -

The report directly attacked 0.8. cigarette manufacturers stating:

. . . one of the reasons why cigarette consumption has remained
high. while cigarette brands with high tar and nicoting levels
remain large sellers, and why death and morbidity rates
associated with smoking continue to increase is the inability
or unwillingness of the cigarette industry to face up to the
health hazards of cigarette smoking or even to admit they
exist. The public relations and political posture of large
parts of the industry has been rather to attack the evidence
and to pretend that a health crisis associated with cigarette
smoking which now corfronts the United States does not, in

fact, exist at all.
The Task Force did not seek to reeevaluate the evidence linking'cigarette'

smoking and illness, instead they accepted the premise that cigarette
smoking is a major health problem for the nation. The report is a plan
of action against cigarette smoking that cells for both private and

govern-eat efforts to meet the three objectives of the Department of

Health, Education and Welfare: 1) to encourage young people not to start

 

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181

'9ka 2) to reduce-tbsnnberaf peerless! nesting: and 3) to
encourage. the develop-ant of less hassrdoua cigarettes and ssthods of

"king and concurrently, help develop a clinete of opinion so that,—

as the” are developed. linkers will turn ts'thus
The Tobacco Institute Inc. .callad the report "a shockingly inteno

perate defnstion of an industry which has led-the way in nedical research

to seek-answers in the cigarette controversy. and criticised it for its
praise or "sectional verbiage .ior the laticesl Clearinghouse for Seeking

and Health and its failure to note that the leak lorce chair-ea Denis).

late is director of the clearinghouse.
Theaspsrt sought to further facilitate coordination of pregnan-

hy the federal govern-ant and private grams. To this one. the ferns—

ds! of a federal. Council on Smoking and Health was proposed, to coordin-
ate rseersl Actions and policies and keepall agencies infer-u of pre-

grees see nehlue. The report also suggested that the Depart-ntnf
Health. Education and Heifers use its influence.“ brnden thenenbership

of the “tinsel later-agency (Is-ail. to seek a larger budget farthe .

council; and to help estamiah a paid. fancies ..cnmeil staff . .
- The “apostle mental are in actuality 'a unifesto seeking stronger

federal goverusnt action and support for "appropriate" health efforts by
private agencies and individuals. m's close relationships with private

groups are supported and specific group actions and the National Inter-

agency Council on Seeking and Health are praised.

The report concludes on a very optisistic note indicating the pro-
graaa in eeeking aslutisna that has been nsde. Significant AIerican

participation in the first world Conference on Seeking and health held in

Y8I

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188

New York City in Septeaber 1967 was interpreted as noet inportant and
indicative of the new awareness of sacking as a health threat.
awareness the Task force felt was absent ten and even five years earlier.

The report noted that there were now nillions of ex-snokera and sore

imortantly there is organisation along those "who care and are influen-
tial in guarding the nation's health on! welfare." 18 Previously unrepre-

sented es-uokers and non-anchors are now pun-ably being represented.
Their unarticulated interests are now being aggregated. and heard. ‘Their

ieplicit interests and potential inportasu are recognised by the Task
force and act as a support behind anti-snaking actions. As their m-

~|bers grow (or decrease) politicians and/or shinistrators will use their

existence and potential political power as a supportive constituency
HI r 1 - -

'3
i
4", 5'

4..
behind their efforts. ‘ ‘= . - .‘ " ..
The Task Force clearly recognized the need for effective organisa-

1.

tion, coordination and gent-eat support if anti-snoring efforts are

a, i:-

to be successful. Their review and evaluation was nade to specify ac-

tions that could be taken by m, but at the ease tine the report was _

directed and circulated to a Inch wider audience in an explicit attqt

to further 3.4":qu "e’oroader national effort." 1’

'1
x. - .

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1.

2.

5.

6.

11.

189

2V1

 

U. 5., Federal Trade Col-iasion, 'l'rade Regulation___ Rule _t_or the
P______revention of Unfair o__r_ Decgtive Advertisingand Labeling__ of

Accmanzing Statement o_f Be__a__ie and Pugoee___ of R_ule (Washington,

1966), p. 10.
The Continuing Challenge," National

Jesee Steinfeld, "Sucking:
Conference o_n Smoking_ and H__e___alth: Segtember 9- -11I 1970: A

Sung_ of P—roceedinge, aponeored by the National Interagen—cy Council
on Smoking and Health (New York, no date), p. 35.

 

Ibid., pp. 100-41.
U. 8., Congress, Houae, Comittee on Interstate and Foreign Connerce,
Hearin g, Ciggrette Labeling__ and Advertising -- 1969 Part 1, 913:.

Cong., let Seaa. , 1969, p. 268
National Interagency Council on Snoking and Health, World Conference
A 8.52 g the Proceedings

on k 51 Health, 8_egted:er 196 :
Few York, no date), 1). 1.
U 8., Depart-nut of Health, Education, and Welfare, Public Health

Service,“ alg Conmuen cos of Seeking: 19688 8m1eeent__ to th__e_ 1_967

_P___nblic Health Servi____c_e_ _R_e___viev, Publication No. 1696 (Washington: U. —8.
Government Printing Office, 1969)

 

 

Tobacco and the Public W___elfare

Maurine B. Neuberger, Snake Screen: __ __
(Englevood Cliffs, New Jeraey: Prentice-Ball, Inc.,19635, p. 66.
Ibid.

' 22231

 

v.3. , Depart-ant of llealth, Education, and Welfare 1968 Annual

2 the President (Washington: U S. Govern-ant Printing Office, 1969),

p. 19.

Ibid., p. 20.

See letter free Willie. ll. Stewart, H.D., Surgeon General, to lion Harley

O. Staggere, Chair-en, Bone Co-ittee on Interatate ad Foreign Co-erce,

Hey I 1969, found in U.S., llouee, Co-ittee on Interetete and Foreign
Additional eoney haa

D
Co-erce, Bearings . . . , 1969, pp. 180-182.

 

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0[

if

12.

l3.

14.
15.
16.
17.
18.
19.

190

been spent on the sucking and health problee by the National Institutes
of Health. At least one effort has been cooperative. The Lung Cancer
Task Force, within the National Cancer Institute, has representatives
froe the cigarette industry serving on it. The cousittee is trying

to lay out a way of approaching the prohlal of developing a less
hazardous cigarette. The Department of Agriculture also conducts
"sajor" research on tobacco, and in fiscal 1972, $6.2 Iillion was
progra-ed for tobacco research. The Depart-ant co-ented that
"Following the issuance of the Surgeon General's Report on 'Seoking
and Health' in 1964, the Department expanded and redirected its
research in an effort to ascertain what, if any, element in tobacco
or its snake, say be injurious to health." "Tobacco in the National

Econoey," Congressional Record, January 11, 1973, p. 8671.

0.8., Depart-cut of Health, Education, and Welfare, 1969 Annual Re ort
5253:; President (Washington: 0.8. Governmt Printing Office, 19705,

p. 159.

U.S., Departunt of Health, Education, and Welfare, Task Force £35

Soaking 93 Health: Report _t__o_ the Sugfign General (Washington: 0.8.
Government Printing Office, 1968), froe the introductory letter by

Daniel Horn transeitting The Task Force's reco-endations to the
Surgeon General.

 

M.
_I_b_i_d., p. 16.
1343., p. 12.
Lb_i_c_l_., p. 11.
£32.. p. 16.
Egg.

 

*r.s.g‘.':1;~

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091

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GANADAANDTEEWCWERSY

191 ‘

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OUT THAq

YRfiHVOETMUD UTJAHH—SWIXUMZ HUT GMA AUAKAD

 

IQI

Part 3‘2: Canada And no hotinrloalth Controvom"

Tho-Canadiangovor-ont'o cloning and hoolth progran hao boon baood
upon ’aonaihlo and gradoal chango." Tho gouroooat hao boon acutoly awaro
of tho oocial coatofiao~ooll aoatho oocial hoaotito of ito actiooo. Cana-
dian govornaontal otructoro hao tacilitatod control and orgaairod
coooidoration of tho probloa, and tho aboanoo of indopondont rogulatory
agoncioaond judicial rovioo m at tho o-o'tino rodocod tho throat of
oaupoctod action againat tho cigarotto .iadootry uhilo noting gmrnoont
action dofiaitivo and final. ~ = #

in tho follooing ohmoro on will dim» and amino tho Canadian
gout-onto' progr- to oodooo cigarotto cooooqtioa. In addition, no
oill oonoiador tho Wt .ot hoolth Mount group acoroaooo of tho
problol and action. Tho ocononic ilportanco of tobacco in Canada will
alao bo oxplorod including ito ilportanco to national and provincial
agricultural ooploynont, nonufacturing and tax rovonuoo. tinally no will
ozolino tho rooponoo of tho tobacco induotry to tho prooont controvoroy.

tho follooing liot indicatoo oona of tho important datoo in tho
hiotory of tho o-okiag-hoalth controvoroy in Canada. It briofly highlighta
tho chronology of avaronooo and action.

1963 Canadian Conforonco on Cooking and Boalth

1968~69 Hoaringo on Tobacco and Cigarotto Cooking by tho

Ionao of M Standing Co-ittoo on floalth,
Holfaro and Social Affairo

1969 loport of tho lonao of Mo Co-ittoo on
Tobacco and Cigarotto hoking

1969 Canadian lroadcaoting Coqany voluntarily agrooo
to and cigarotto advortioing

192

_-,_, * .' ’* - 1' -.-$~! .."\ "Y‘ ', 0 _: .. ' . .'Y‘ .-
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1970
1971

1971

'1971

193

Canadian tobacco induotry voluntarily agrooo to
and gift coupon ochonoo and contooto

Tho Britioh Colo-bio govornnant pooooo logiolo-

tion to ban all tobacco advortioing

Tho fodoral govornlont introducoo logiolation to
ban all for-o of cigarotto adwortioing and to
linit tho tar and nicotino contonto of cigarettoo

Tho tobacco induotry voluntarily agrooo to and TV
and radio cigarotto odoortioing and not a linit‘

on tar and nicotino contont of cigarottoo

'1‘ -I I

Uhilo Canada hao gonorolly roopondod Ioro olowly to tho controvoroy

than tho Unitod Statoa or Croat Britain, tho noot rocont voluntary induotry

!

agronont hao brought Canada abroaot and ovon ohoad _of A-oricon and Britioh

1 .
afforto.

In tho following chaptora wo‘wi1l oxploro why and how tho

cooking-hoolth controvoroy hao ovolwod in Canada boginning with a con-

oidoration of tho Canadian govornoant'o rooponoo to tho prohloo.

l

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Chapter V:II _T_h_o Econonic Mrsmco g_f_ Tobacco in Canada

A. Introduction

Tho acononic ilportaaca' of tobacco in Canada in bond upon tho aaoo
four factors which dotornina ito inortanco in tho Unitod Statoo: agri-
iculturo. oxporto, manufacturing and tax1 rayonuoa. Hhilo tho abooluto
oiaa of tho tobacco oconony ia conaidorably anallor in Canada than in tho
Unitod Statoa, ito rolativo inortanca io coqaroblo to ito importanca in
horica. Ao wa will ahow. tobacco agriculturo and nanufacturing aro
highly concontratod in two prowincoa, Ontario and Quoboc, whoro it playo
an important but doclining rolo. Tho following chaptor oaooaaoa tho

ocononic ioportanco of tobacco in Canada and aono of tho conaoquont

A

political inlicotiona .

3- _o__f»: co -mu.l§£n
Tobacco agriculturo ia tho firot'factor in’tho acoooaic ioportanco

of tobacco in Canada. Tobacco far-o hava producod alaoot 200 nillion'
poundo of tobacco yoarly botwoon 1959 and 1968. Such a crop in now waluod
in oxcaao of $160 Iillion annually. Canada producoo 99 par cont of tho
tobacco it conau-ao which would othorwioo hava to bo importad. Tabla l
praoonto data on Canadian tobacco acroago. production and yoluo of tho
loaf tobacco crop by fiwo-yoor avoragoa froa l9b9 to 1968 and annually
fro- 1965 to 1968. During thia poriod, tobacco production and acroago
hava incraaaod oharply in controat to docraaooa in tho Dnitod Statoa.

Tobacco production hao cloorly baco-o noro important in Canada during

194

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r

OQI

1965-69‘ .,
6:2; wages: "Mariam-mama).
1969-53 ‘ 106,512 1,326 136,565,600 57,676,600
1956-56 126,060 1,316 166,762,000 75,165,000
1959-63 125,592 ' 1,563 - 199,592,600 99,396,200
1966-66 118,100' 1,667 197,676,000 - 130,625,000
1965 99,366 “1,700' 166,600,000 “ 106,198,000
1966 130,196 1,799 236,162,000 166,029,000
1967 160,735 1,516 213,096,000 ' 166,973,000
1966 136,671 1,622 ‘ 216,607,000 153,607,000
1969 132,752 1,666 267,665,000 ‘ ' 162,925,000 ‘

195

Tabla l

Acroago, Production nd Valuo of Loaf Tobacco
Crop by S-Toar Awaragoo 19469-68 and Annually

 

’

a. Canada, Dominion huroau of Statiatico, _Quartorly Bglotin inof
Agricultural Statiatica, LXIII (Ottawa: Quoon' a Printer, July-Soptcobar,
1970). Also can Canada, Dominion Buroou of Statiatica, Tobacco _o_1_1_d_
Tobacco Producto Statiotica Quarterly, XXXVI! (Ottawa: Quocn'o Printer,
July, 1970).;

691

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yllsunnA bns 88-PLGI asés1st Iqu-C {d qo1D

(9) euEnV min? £310T

 

 

B

.29L n0130thtT

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000,018,11 000,101,011 031,1 311,001 11-901
000,101,11 000,301,001 011,1 000,631 01-041
003,891,99 090,391,991 101,1 391,931 10-9101
000,130,011 000,010,191 100,1 001,811 60-000
000,891,001 000,00 ,001 001,1 001,99 101
000,930,001 000,311,013 991,1 891,011 000
000,119,001 000,090,113 011,1 111,001 1011
000,108,111 000,100,113 330,1 113,011 9191
100,139,301 000,100,103 008,1 311,311 9091

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196
this period. This production is highly concentrated in two provinces:
Ontario 1 and Quebec. Table 2 indicates the relative importance of
tobacco in these provinces and in all of Canada as a percentage of all
crops and as a percentage of all cash receipts froe fare operations.

Cos-ercial tobacco production began in Ontario at the turn of the
19th century. Flue-cured tobacco, used extensively in cigarette produc-
tion was first grown about 1913 in Ontario and its production spread to’
over twelve counties by the add-1930's. 2 Ontario produces over 95 per
cent of Canada's total flue-cured crop, 3 and five counties within the
province, Norfolk, Elgin, Bryand, Oxford and Middlesex, in l?§6 and 1967
produced over 90 per cent of the total sarket value of flue-cured tobacco
sold in Ontario. _

The Ontario Flue-cured Tobacco Growers' Marketing Board represents
3,77‘ far-er sesbers operating 4,559 far-s plus an additional 1,163
sharegrowers registered with the tobacco board, who have esployed up to
‘s0,000 seasonal laborers in the harvesting season. The organisation was
Iestablished under provincial legislation entitled the Ontario §g£!_Products

Harketig Act. The group provides -rketing' auctions and a warehouse

 

syste- for its nenbers, while the federal goverment‘ provides grading
services. Flue-cured acreages are rigidly allocated by the board, and
approved varieties of tobacco nust be raised by participating growers.

The board serves the sane function as the federal governnsnt in the United
States by controlling acreage to naintain tobacco prices. The inability
of far-er groups to cooperate in providing for their own canon good led
to goveruent involvenent. Canadian agricultural co-operatives were
runable with govern-ant legislation to control the sarketing of fare crops.‘

The U.S.D.A., in a brochure describing tobacco growing in Ontario noted:

 

 

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197

Table 2

Peru Cash Receipts fron Parsing Operations
By Province ‘

Province Year Tobacco Total Crops I of Total I of Total Cash
$(000) Crops Receipts Including
‘ Livestock & Products,
Forest 8 Maple

 

Products
gggbsc 1950 1,992 26,940 7.4 .62
1955 3.579 35,388 10.1 .9
‘1900 4,722 46,303 10.2 1.2'
1965 4,299 55,052 7.8 .8
Ontario 1950 54,694 145,029 ’ 37.7 8.4
1955 72,196 201,440 35.8 10.0
1960 91,697 248,946 36.8 10.8
1965 84,835 .294,255 28.8 7.7
Canada. 1950' 36,724 765,205 7.4 2.66'
1955 75,812 822,409 9.2 3.34
1960 96,429 1,072,083 9.0 3.43
5.6 2.34

1965 89,134 1,635,153

a. Canada, Dominion Bureau of Statistics, Handbook of
Agricultural Statistics, Part 11, Farm Income, (Ottawa: Queen's
Printer, June, 1967). .

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198

[The] growing of flue-cured tobacco in Ontario is a
high-investnent enterprise. Cash operating costs are
large and weather risks are exceedingly high . . . r ‘
[Furthernore,] because of their extremely high labor
costs and large tobacco acreages, Ontario growers in
recent years have nade fast progress in the use of
labor-saving sachinery for the production and handling

of tobacco. 5
The rather ssall nunber of flue-cured tobacco growers and their proxisity
to each other have made the task of organisation and cooperat ion simpler

than in the United States. In addition this sane situation will acceler-

i

are such as the nechanical tobacco harvester which reduces labor costs
and which is sore feasible econonically on the large Canadian tobacco
ferns than on their snaller AIerican counterparts.

The report of the' Canadian Federal Task Force on Agriculture entitled

Canadian égricultere is the Seventies 6 questioned the supply ssnagenent

 

by the Ontario Flue-cured Tobacco Growers' Marketing Board:

Production controls under authority granted by a provincial
legislature haVe virtually excluded new entrants to'the
industry and thus reduce the opportunity for efficient

fern Ianagers to produce tobacco. Further-ore, the Ontario
Board likely operated in such a way as to reduce the export
earnings of agriculture, especially when growers chose to
underplant their allotted acres. It has operated in a
short-run context, losing sight of long-run considerationsi‘
The production control progran.has brought serious problens
to tobacco far-era themselves. capitalisation of the value
of 'Rights' [Land wit__h_ rights is now worth __8_ £3 E tines _a_s_
IMCh as equivalent_ land without _rights.I into land value '
raises costs and acreage restrictions lead to an inefficient
use of resources. High prices are required to sect rising
costs. But to a great extent the rising costs are a result
of the production control-progren. ' ' ’

 

the ease situation'exists, of course, '1: the United 'Stet'e's, as described
in Chapter I. ‘

m1. oppoeing the Ontario Baard's team,- the task force‘noted that
the powers of such boards are not derived froe federal govern-eat legis- '

lation, but froe the provincial goveresent. 'Ihile the that force took

 

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199

note of propeaale eined at reducing uee of cigarettea for health reaaona,
they nevertheleee recon-ended the fintenaive exploitation of export narket
opportunitiee involving the uae_of trade niaaiona, trade faire and where
adviaable. uee of export aubaidiee_in_a3narket derelopnent context...." 8

The United §tateeflfeddra1'govern-ant hee helped build up export
narkete for Anerican_tobecco grouera for nany yeare and recently an export
eubaidy haa been need to nuke Aeerican tobacco nore conpetitive and in-
crease exports. Canada eight feel coupelled to begin export aubaidiee to
neet the increaaed AIerican conpetitiveneae in foreign narteta.

The;Canadien task force eleo recon-90406:

Intenaive reaearch into the production and Ienufacture .

of tobaccoe that can be readily narketed under the denand

conditiona. including conaideration of effecte on heeltb,

of the l970'a be undertaken end aupported by govern-eat,

the nannfacturing induatry and tobacco grovera. . .

A Federal eovernnent inter-deparnnental connittee be_

created to lake a continuing aeeeaanent of the effect

of anti-tobacco activitiea of the Federal govern-ant,

and conaider a progran of agjuatnent aaaiatance for

J the induatry, if required. .

Cenede eppeare to be giving eerioue coneideretion to aiding the tobacco ~
induetry if the anti-tobacco activitiea of the govern-ent,nnke it neceaaary.
When thia night occur and he! Inch it night coat have not yet been enti-
lated, but Cenede differa froe both the United gtatea and Great Britain
in aeriouely raining aeaietence an an apparently feaeible alternative.
levertheleae, while apeculetion on tobhcco'e future abounda the taek force
expecte that ”barring further and unforeeeen preaeure by rovernnnnt againat
pom. . . .. doneatic duend‘vill be fairly mm. “cameo." 1°

In addition:to the flue-cured groveta there are none 1083 barley;
tobacco ¢rouera 11 who are located predoninently in Essex and Kent countiee
in,0nteriot. they are F‘PF“Q“§‘§.P¥ the hurley tobacco Harheting

Aeeociation.uhich haa deecribed ite own role:

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200

Sincel935 . . . barleyfareerahavebeenvorking

together through a voluntary organization called

the Burley Tobacco Marketing Aaeociation of Ontario.

Thie ie an entirely fareer-operated group and hee no

affiliation with gourmet—controlled earketiac

agenciee. The Aaeociation acte to regulate pro-

duction of barley tobacco no that a nor-l flow to

narket will aeaure ite 2,000 neebere an adequate

return for thia high-coat co-odity. barley fareere .

have never received any financial aid or eupport froe

sever-eat to earbet their crop. 1
flue, the purpoae of the organisation ie to control production and Iain-
teie pricea ea ie the purpoae of the Ontario Plea-cured Tobacco Groeere'
Harketing Deere and -the' any boarde me other eieilar aroupe that cooper-
‘ate for the a. perpeeea in the United Stetee. More recently. uterio
barley grove" have been! to contract directly vith cigarettenanufecturere
hto replete enre efficiently the quantity and _ouelity of theirytobacco
endocrine. 13 lerley production in 1970 vae eetineted at 2.5 aillion
Jennie of tobacco produced a 1.276 acree. grown moor contrect with
tobacco eo-aeioe. 1’” thee. in 1970 the average burley fatner earne leee
than 82.500 a year fro-.tobaoco froe an average of under .1 llztecree that
.eere elected. no 1070 figureo were down coeeiderably froe the 3,566,341
pounde orodeoed in 1969 on 2,120 acrea. In one. burley tobacco alone . H
eeee aet~appear to be a viable livelihood for the 1.083 eeebere of the
-Ierley:‘rebacoo Marketing-Melationof Ontario.

Tobacco production in Qaebecie actually very lieited. Quebec'a
\ll9 fleeeeered tobacco fenereere represented by the Quebec flue-cured .0
tobacco Grovere' Board. The plight of ite eeebere eoeee very eiailar to
31... aiteetion encountered by eany tobacco far-ere in the United Statee.
.Iobacco ie ”the one and only coerce of revenue of a great eany faraere
and their tailiee" .in Quebec. 15 Many far-e. otherwiee unproductive,

on” been tranaforned to grow thie tobacco and contribute to the

F
3
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201

agricultural and econonic develop-cut of many counties of the Pravince
of Quebec. 1‘

In addition to tobacco production in Ontario and Quebec, there is
a ”you; and expanding” flue-cured tobacco industry in the Haritine
provinces, Prince Edward Ieland, New Brunswick and Nova scam, which has
been assisted by Canadian cigarette nanufacturera. ‘ m Lighter published
by the Canadian Departnent of Agriculture reported that soee tobacco
coepanies have followed a policy aiaed at increasing tobacco planting by
offering assistance to far-era wanting to produce tobacco. l7 tobacco
acreage in these provinces has increased froe under 50 acres in 1960 to
an estieated 0,500 acres in 1970 produced by about 100 growers. ‘In con-
trast to the situation in Ontario, tobacco acreage' in the Maritines has
expanded because of the presence of plow-priced land and the absence of
restraints on production. The inconea and Jobs produced by‘ these new
tobacco fares have been substantial. Production has been deliberately
spurred to help revitalize the agricultural econoeiea of these provinces,
in which weather ashes eost agriculture a precarious enterprise. ‘1"

Increases in Canadian crop yields and larger acreage harvested have
produced increased annual tobacco crops which are often in excess of
possible sales. Table l provides figures on crop yields and acreage for
the period 19“ to 1968. lecently, as in the United Staten pomdage
controls have been proposed ea possibly a eore rational approach to lieit-
ing production. 1, In keeping with the AIerican acreage-poundage prograe,
it was further suggested that-“each fare could earket 10 per cent nore
tobacco than the fare's poundage quota without penalty, but any excess

Iarketinge would be deducted froe the fare's poundage quote the following

year."

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202

- The geographical concentration of Canadian tobacco growers and their
relatively small numbers have allowed private organizational controls to
function with minimal government intervention. Canada presently does not
have any tobacco price supports, but this is due more to the relative
success of the present system and increased exports than to a difference

in Canadian and American governmental philosophies as to the role of

government in protecting the farmer. 21

In the absence of private grower agreements, cooperatives and pro-
vincial legislation, the Canadian federal government is committed to play
a substantial role in organising tobacco farmers through the formation
6f cooperatives and marketing boards. The Canadian government's commit-
nsnt to agriculture 22 is substantial and explicit:

‘ ‘ Basic to the concept of Canada's national agricultural
_ policy is the premise that a stable agricultural policy
‘ is in the interests of the national economy and that
L farmers as a grougaare entitled to a fair share of the

national income.

fhus, Canada is a lot closer to the position in which the United
States government finds itself than is obvious on first inspection. It
is committed financially to maintain the viability of tobacco farming.
In fact, Canadian producer marketing boards have been established with
the aid of government legislation in order to stabilise prices. "Direct
government aids are also available through price stabilisation, crop
insurance and farm credit policies." 26

“The Agricultural Stabilisation Act (SC 1958, C.22 proclaimed'uarch
3, 1958)‘estsblished the Agricultural Stabilisation Board. The board is
empowered to stabilise the prices of the agriculture industry in realising

fair‘rsturns for labor and investment and to maintain a fair relationship

betwedh prices received by farmers and the costs of goods and services

 

 

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203
they buy. 25 Tobacco ie one of the cropa which haa been aupportad under
thia program although there are no eupporte preaently in effect.

The relative importance of tobacco in Ontario, Quebec and in Canada
an a whole in very much on the order of ita inportance in the United
Statee. Tobacco ia eapecially inertant in Ontario where an Table 3 above,
it often hae nade up over 35 per cent of total crop tar- receipta, and
aince 1965, baa alounted to over $100 million a year. Thd data indicate
that Canadian flue-cured tobacco production aftecte fewer individuals,
even relatively epeaking, than in the United Statea. In addition, we can
infer tron tobacco incone figurea that burley far-era produce tobacco at
a anpplenent to their incona, _not an the ‘alole, or even the pajor eource.
Further-ore, neither Ontario nor Quebec can be accurately characterized
aa a ”tobacco etate" like acne eouthern 0.8. atatoa. In both provincea
tobacco in one agricultural product anongaeueral in provincee that have
neat of their econonic resourcea and count-ant in industry and co-arce.

r lecanae of differencea in hietorical develop-ant and in the ayat-
of‘ acreage allot-ante that have been need, Canadian flue-cured tobacco
far-a are such larger than their American counterparte. Thie fact‘con-
bined with the relatively anall-nnnber ot growere eaaea the Canadian
gover-ent'e taeh if it choaee to regulate grovere. cooperate with than
or help then neliorate the conaequancee of anti-tobacco govern-ant actiona.

An in the United Staten. the tobacco growara are politically well
organized through the grower organiaationa already nantioaed and have
lobbied inteneively in Ottawa to protect their obvioua econonic intereeta.
Uhat ia perhape ironic ia that the grower oppoaitioa to governent anti-
.ohiag action wae facilitated by gover-ent legialation aiding cooperative

grower groupa. Tobacco growera' teatinony before the Standing Co-ittee

 

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204

table 3

Provincial tbbacco Production and Value‘

 

Ontario Yaar larvaatad Araa Production Value
- - (acraa) (000)1ba 3(000)
1960 124,321 200,201 109,272
1961 126,718 197,664 101,059
1962 121,640 190,265 91,165
1963 104,178 189,719 86,279
1964 76,267 142,738 78,390
1965 89,220 158,810 101,765
1966 120,561 220,736 156,318
Quebec 1960 11 ,598 13,911. 5 , 399
1961 11,081 11,900 4,156
1962 8,901 .‘12,388 4,582
1963 8,933 1 10,376 4,046
1964 a,33& ‘ 9,919 4,299
1965 9,348 9,272 3,961
1966 9,935 12,082 ' 6,845
0th: ~ V , - . v, ‘ ‘ l . " , ‘1. ,."| . .~;‘ 2', ""
rmmcu 1965 m . . .b" 1.72
' 1966 ‘ ‘ ’ 923 J.. 784

a. Canada, noninion Bureau of Statistics, Canada Year Book,
(Ottawa: Queen' 3 Printar, 1968 ,) p. 515.
b.lhava11ab1c

1.!
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90E,E $19.51 893,11 0691 39 “U“
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6&0,A 818,01 EEQ,8 £69!
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2.95

on Health, welfare and Social Affaira inveatigeting tobacco and cigarette
cooking, followed that met he tea-led the expected line. The smote

testified:

While we are vitally concerned with.bealth, to ace no
reason that our induotry, with ouch a long hietory
and with ouch valuable contributiona to our national
economy should be eliainated unleee the danger of
cigarette casting can.be eatahliahed beyond reaaon-
able doubt.

Further-ore, in a well-docuaented eection of their teetiaony entitled
"Lose from a Daaaged Tobacco Induetry," the growera deecribed the
"devastating loaaee to the national treasury, the tobacco-growing coa-

aunitica and the producere" 27 which could be cauaed by govern-ant action.

d! o

They concluded:

Ha eat that you do not recon-end legialation that will
eerioualy cripple or deetroy the livelihood of all
thoec rho vork with tobacco en the baaia of Eapravad
accusatione and prejudicee againat tobacco.

The eophietication and depth of their preeentation in exaaining the actual

econonic coata involved contraate rather eharply with the ante anecdotal

and vague presentationa of tobacco growera in the United Statea. Never-
Lv ' t .:
theleea, while there are differencea in atyle, the baeic goal of preventing

govern-ant action and aaintaining econonic viability ie identical.
Our diacueeion of tobacco agriculture would not be coaplate without
briefly nentioning the Canadian Departaent of Agriculture' a tobacco

I

Prograas The Depart-ant aaintaine a tobacco reaearch etation at Delhi,

Ontario, which hao recently begunla five-year aulti-diaciplinary progra-
"vith a view to producing aafer tobacco producing aafer tobacco producta,
aainly cigarettee. " 29 Theee experiaente are an atta-pt to aeeiet growere
in their efforte to produce lore "ouitabla" 3° tobacco for the induotry. _

Nivartheleee, "the etation' e overall objective- to iaprove the efficiency

 

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206

of production and the quality of tobacco to nest donestic and export
requirenents- reneins as a constant ingredient in all the research work
at mm." 31

The present success of this progran is perhaps indicated by the
industry's voluntary agree-eat to linit the tar and nicotine contents of
its cigarettes and the apparent ability of the growers to supply this
"suitable"variety.

C. Tobacco Exports

As in the United States, tobacco exports play an integral role in
the crop's econonic iaportence. The Lighter noted:

Tobacco is now Canada's second most important individual

export commodity (next to wheat) and has become in-

creasingly valuable as a cogiributor to the Canadian

merchandise trade balance.

Unlike in the United States, there is no export subsidy in Canada at the
present tine although the government has subsidized a nunber of tobacco
trade nissions overseas in order to increase foreign exports to countries
in which sales are controlled by a governnent tobacco nonopoly.

The Minister of Trade and Connerce reported that the cost of the
Canadian tobacco trade nission progran during 1963 to 1965 was $21,000. 33
In fiscal 1969-70, $15,000 was spent on a trade aission pronoting the
export sale of tobacco. 3‘ Table 4 indicates the value of export trade
and productions and the export weight of redried leaf. Recently, exports
have totaled about one-fourth of total tobacco production.

Canada, unfortunately, is highly dependent on the British narket with
over 90 per cent of Canadian flue-cured exports going to this purchaser
in 1966-68. 35 Further-ore, Canada's tobacco narket in Hestern Europe has

declined because of the dissatisfaction with high prices and sole conplaint

 

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207

Table I.

“Value of Export Trade Tobacco 'and Products
Export Weight of hedried Leaf and Tobacco
as’ a Percentage of Total Exports? ‘

 

_Y_e_a_1'_ M the 1900) Percentage of Total Mitts
196$ ' 35,353“ 37,333“ ' ' ' .¢1

1966 - so,oos" ‘53,.1t“ .to

1967 49.324 56,7os¢ .‘s x

1968 50,291§ .. 59,366 g . . _ . _‘ .30

a. Canada, Standing Co-ittee on Health, Welfare and Social
Affairs. Minutes 9__f_ Proceede sail Evidence (Co-one), No. 17 (February
18, 1969), p. 529, and various issues of 311! Lifitgr.

b. Figures for year ending Decenber 31st. '

c. Figures for year ending Septeder 30th.

d. Ten soothe. '

 

 

 

 

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208
about quality. In addition, British entrance into the European Economic
Community threatens continued large exports to Britain under commonwealth
preference. A.Canadian Department of Agriculture report commented:

The future for Canadian flue cured tobacco sales to
Britain seems bleak. United States tobacco will be
sore competitive in price than at present, and tobacco
from within the Community and from the associated
countries will be favored. Looming over the tobacco
scene is the possibility of the trade embargo with
Ihodesia being removed, which could change the equation
dramatically. But opinions differ. There are only
four buyers of importance in Britain and, in a recent
survey of the trade here, about the only consensus we
could identify was that Canadian sales gguld decline,
but gradually, over a period of years.

In 1970 the Canadian Tobacco Manufacturers' Council estimated that
tobacco leaf exports amount to $60 million. Nevertheless, tobacco exports
amount to less than one-half of one per cent of all Canadian exports and
tobacco is 225 one of Canada's 22 principal exports.

D.‘ Tobacco Manufacturing

 

The Canadian tobacco agricultural industry, tobacco manufacturing
and cigarette manufacturing contribute to employment, income, taxes and
exporte. Having already discussed tobacco agriculture and exports, we
now turn to tobacco manufacturing.

_ The Department of National Health and Welfare has been well aware
of the importance of the tobacco industry in Canada, and they have noted
carefully the "instinctive sympathy towards the production and manufacture
of tobacco products" on the part of a number of government departments. 37
Certainly Canadian government involvement, as in the United States and
Britain as well, has sometimes been in contradictory directions.
The Canadian tobacco industry provides jobs and income for over

'1-

8,000 Canadian workers. Unfortunately, no figures are available which

 

 

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209
indicate the relative contribution of cigarette manufacturing to this
figure. As in the United States, cigarette manufacturing in Canada is
concentrated geographically in two provinces, Ontario and Quebec.

The following tables give a brief overview of the importance of
cigarette manufacturing is Canada. Table 5 'presemte data on the con-
tributions of tobacco manufacturing to total manufacturing on Ontario and
Quebec as measured by the number of employees, total salaries and wages
and value added in manufacture for the years 1961 to 1966. Table 6
presents national data on tobacco product manufacturing including the
number of employees, total salaries and wages and value added for 1961-
66. h ' '

in general, the relative importance of tobacco manufacturing in
Ontario and Quebec has declined. Nevertheless, tobacco manufacturing
remains the sole source of employment and income for many families and
indirectly for many others. Tobacco employment in Quebec has declined
from 1.6 per cent of‘manufacturingflmployment in 1961 to 1.3 per cent in
1966, tile in Dutch the parental has declined only nightly to less
than one-half of one per cent. fSaleriee and wages, while constituting
large II- of money, have declined relatively as a permage of total
salariml and wagel;' Cigarette manufacturing in the‘Uhilmd States is more
important economically in the state: where it is manufaetured than in
Ontario or Quebec. Furthermore, almost two-thirds of the value added by
manufacture is-produoed in Quebec which produces only a email percentage
of the tobacco grown in Canada Therpulittoel impact of the-eohmomo: 2*

industry has-beeaneakened by the geographical and political separation

of manufacturing and agriculture and the separation of their economic

to a. F ' I It - . .1
4 m t. l. J .

impacts.

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210

Table 5

Contribution of Tobacco Manufacturing
To Total handsets“. in Ontario at Quebec

1961-1966 '
a
Quebec m Salarig 6 lime Value Added
1961 7, 105 30,663. ‘ 89,“,
1962 7,263 32,076 292,193
1963 7,127 33,079 . 92,316
1966 7,180 36 .261. 91,917
1965 6,869 36,916 102,060
1966 6 , 765 36 , 613 107, 756
Ontario"
1961' 2 ,fll‘ - ll , 507 3., 306
-- 1962 3.596 13.33 3.5352
1963 3,622 13 ,592 62 , 766
1966 3,617 16,002 65,269
1965 3,167 16,552 57,927
1966 3,202 15,550 63,266

a. Canada, Dominion Bureau of Statistics, Nan acturin Industries
2; Canada: Province gf_ ngec (Ottawa: Queen's Printer, 19 . The
nder of employees has declined from 1.6 per cent of total employment in
1961 to 1.31 per cent in 1966. Salaries and wages declined from 1.76 to
1.66 during the same period, while value added declined from 2.69 per cent
to 2.16 per cent.

b. Same as above except for the province of Quebec. The
importance of tobacco eqhyment, salaries and wages and value added have
all declined in Ontario. Tobacco is relatively unimportant in Ontario.

DIS

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211

Table 6

Canadian Tubscco Manufactuming

’ a

Year Nunber of Euployees Salaries 6 wasesb Value Added
’ ‘ 3(000) $(000)
1961 8,671 "33,503 108,878
1962 ' 9,031 ~ :1;240 113,680
1963 3,347 ‘41,:38 ‘ “117,622
1966" 0,956 '63,260 ' ‘123,392
1965‘ 78,615" ’ 66,837‘ ' 1:3,eaz
1966' - = 8,683., > "'47,7so~ ‘1si,2:3-
1967 v“ ' ' 8,816 ' * '52,764' 165,186
£958 3,576 ‘ ~ 56,722' ‘ 155,311

' ’9 j . , I i ‘ s
.313' *it. . .5 a.

a. See Canada, Doninion Bureau of Statistics, Manufacturing and
Prinsry Industries Division, Tobacco Products Industries, 1968 Annual
Census of yanufacturers (Ottawa: Queen's Printer, March, M7 0). P. 7.

b. “Figures are in Canadian dollars.

 

 

 

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212

As in the Bnited States and Great Britain cigarette uanufacturing
is concentrated in only a few conpanies which are interrelated with
tobacco fine in Great Britain and the United States. Benson and Hedges
(Canada) Lilited is a subsidiary of the 0.8. tobacco anufacturer Philip
Morris Inc., ad controls approxinstely 10 per cent of the Canadian cigar--
ette nsrket according to 19170 estinstes published in the Tobacco Lemrter. 38
Inasco Linited, 3 fornerly Inperial Tobacco Conpany of Canada Linited,
by far the largest Canadia cigarette nanufacturer, is owned by British
Auerican Tobacco Linited which also owns the Anerican tobacco nanufacturer
Brown and Willianson Tobacco Corporation. Inesco had by far the largest
share of the cigarette narket in 1970, between 65 and 50 per cent.
Hacdonald Tobacco Inc., which has about 18 per cent of the cigarette
arket is privately owned. Roth-ans of Pall Mall Canada Linited, ‘0 the
last of the four najor Canadian nenufacturerq's, holds about 26 per cent
of the cigarette arhet and is related to the Roth-ans International
Group based in Great Britain the group owns the asllest of the three
nsjor British cigarette naufacturers, Carreras. . ‘1 . 3

Thus, four fine control over 99 per cent of Canada's cigarette
inastry which produced over $800 Iillion in cigarettes in 1968. As in
the United States, and as we will see in Britain, narket shares are un-
equal, highly conpetitive and changing. Further-ore, this situation has
solstinss led Canadian nanufacturers to take actions that provoke both
public and governmental concern which we will consider further in our
discussion of cigarette advertising. '

only one of the Canadian fires still uses tobacco in its corporate

naa, and as in the United States, its absence synboliaes the new diversi-

fied nature of coupanies producing cigarettes. Table 7 provides estinates

 

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213

from the Tobacco Reporter of the percentage of sales outside of tobacco
by Rothnans and Imasco, the two largest producers from 1969 to 1971. 41
Table 7
Per cent of Diversification
' 1969 1970 1971

Rothmans-Canada 0 56 66

Imasco 26 ;, 25 25
For example, Rothmans owns 50.1 per cent of Canadian Breweries Inc., which
in turn owns 100 per cent of Carling Brewing Company in the United States.
Imasco owns, among other subsidiaries, Growers Wine Company, Ltd., 8 6 0
Fine Foods Inc., based_in San Francisco, and the Uddo and Taormina Corpora-
tion, New Jersey manufacturers of canned and frozen foods under the

Progresso Food label. ‘2

In 1967, Imasco formed Innotron Ltd. specifically
to investigate diversification.possibilities in other fields. Finally,
Benson and Hedges (Canada) Ltd., which has been a subsidiary itself since
1958, owns Formosa Spring Brewery, while Hacdonald Tobacco Co. owns a
textile fire, X?! Textile Co. Limited. Thus, as in the United States,
tobacco companies in Chnada’are'hedging their beta by diversifying into
non-tobacco fields.

The Canadian government has not remained aloof from the economic
prospects of tobacco. The Department of Regional Economic Expansion has
made grants to the tobacco industry. In the fiscal year ending March 31,
1971,.grants of over $800,000 were made to aid the tobacco indurtry in
Prince Edward Island, Quebec and Nova Scotiaol'3 Unfortunately, no break-
downs as to the purpose of the grants are available. ff

. In reply to the question in Parliament of "how much money was spent

during fiscal 1969-70 to assist the tobacco industry and producers in

 

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Moran-Duly. ‘onco again no broakdown of thou figarco woo givon. and tho
“pros opparontly _do not includo tho pronto and. on year latot by tho
mm of Regional Econooic Expanaion untionod abou. .

'1

lhch of tho poaitivo offoct of tobacco on tho Canadian oconooy is

unhotaldod.ond gonorally unooaaurod. Ono intorcoting oxolplo of tho
tobacco-induotryfa impact on tho Canadian oconoag wag olutidatod in an
,orticlo in tho Tobacco Rogortcr. Tho Iagoxino roportod awoootiog botwoon
Hiniator of National Health o_nd Wolfaro Munro _and labor; of ,tho Canadion
outdoor advertising induotry about tho gmrmt'o propooodtotal cigar:
otto advottioing ban in an atta-pt to hava thoéban Iodifiod.; Tho induotry
‘claiood. that ouch a by; would cost tho induatty Iona $3_ Iillion in loat_ -..
rovonuoo. roughly 18 not cont oi ito total rev-noon. ‘l‘hox Qua-cud that
_tho hon bo ,ioplooontod ‘ovcra lO-yoor poriod. or that tho gqvomt m0!
tho long with an anti-poking mam uain; billboarda. :Tho tobacg g
Worden continuodz. ,

I r ' 1 I I ‘ ‘ ‘ F

. Backing up thoit clain to loot rovonuo, tho billboard}
roprooontativoa aaid a total ban would cauoo oooo of
‘lito 55 Io-bot conponica to bo forcod out of buoinooo.
Tho group furthor prodictod that about 25 pot cont of
tho_induotry'o work.£orcc would hava to bo_diaoioaed. ‘5
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liwoa and_politiciana t_ocognizo thia. turthornoro, tobacco ia an ax-
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215

aoanrnco that tho affoct of ouch action will jaotify it. 'l'ho Canadian
morn-ht hao apparontly watchod and waitod whilo tho Unitod Statoo and
Croat Britain hava actod, waiahing tho outcoaoo of tho actiono of othoro
u aininiao tho ocoaoaic ham and mining tho ammo input of thoir
owa actiona. . . .

!. tobacgg muo-

hdoral ad amiacial tobacco taxation alao play a vary inortant
rolo in tho occaoaic inortanco of cigarottoo in Canada. 'l'abla 8 praoonto
data on fodaral to: rovonuu fro- tdsacco and in tolativo contribution
to total not gonoral romaa tot fiocal yoara l956 to 1968. no. 1964. to
1968 tho tolativo contribution of tobacco tanoo to total not aaaaral
roman hao daclinod tron 5.7 to Ll» par cont. although in abaoluto tot-o
mom hao iacroaoad ftoa $391 to $4.60 aillioa. o‘... thio o-o fiwa
root poriod, tobacco taaoo hava yioldad tho Iowan-oat ovor 81.7 billion.
botwoon 1958 ad 1968, fodoral tobacco taxation-1a Canada hao inoroaood
(too 88 par thoaoqd pluo lO pot cut aaloo tax to $10 pot thouaand pluo
11 par coat aaloo tax. Canadian lodoral tobacco taxation io ova: two and
coo-half tinaa o_a iaportnt to total not moral rovonao ao tobacco
taxation io to tho fodoral aovornaant in tho Unitod Stataa. ‘

Furthoraoto. otoviacial tobacco taxatioa boo incroaaod obarply in
can. to 155,3. a, thtoo ”one... Ru-Itlalowick. m and Princo
Edward lolnd. taxod ciaanttoo. In 1969', tho nubor had incroaaad to
niao with only britioh Colflia, Yahoo font”?! and lorthwoat torritorioo
otill not toxin; ciaanttoo. Provincial tobacco tax rovanuoo hava
incroaood froa $22.2 aillioa in 1958 to 87‘.“ aillion in 1966, to an
ootinatod $200 Iillioa in 1970, according to tho Candi- tobacco

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216

Table 8
Federal Government Tobacco Taxation a

Tobacco Excise Total Net

Detiee 6 Special Total ' General ' Tobacco Taxes as
b _ Excise Taxesk. Taxes Revenue ' : Z of Total Net
Ther« -3 $(million) '$(million) $(million) - General Revenue:
1956 " 237 v "ij3ll " 6,668 ‘ ‘ 5.07
1957 253 5,019 5,641 6.65
1958 276 4,993 5,395. 5.08
1959 #289. 4,622_ '5,066 "5.10
1960 331 5,299 ‘5,736 ' 5.77
1961 ‘1345 5,513 ' ;6,103 5.52
1962 ‘367f 5,756 ' 6,249 5.87
1963 , '9’384 * k’s,923:‘_ 1,6,527 , 5.97
1966 . 391‘”‘ 6,283 6,827' ‘ 5.73
1965 ‘ 395 ‘ ' 7,326 7,913 a.99
1966 " ~ 6‘26? ‘ “6,018“ 8.695 ‘ 9.88 '
1967 : . 667. g , 8,723 1 . 9,425. .. 6.76
1968 660 ‘ 9,558 . 10,376 . 4.63 _
a: Compiled from Canada, Dominion Bureau of Statistics, Federal

Government Finance-Revenue and Expenditure a Direct and Indirect Debt
Tattawa: QueenTs Printer, December, 1969).

 

The Federal tax rate on cigarettes has increased from $8
per thousand'+~10 per cent sales tax in 1958 to $10 per thousand + 12 per
cent in 1968. Also see Canada, Dominion Bureau of Statistics, Princigal
Taxes ggg.kates: Federal grayincial and Selected Hunicipa] Governments
(Ottawa: Queen's Printer, February, 1969). ‘

e 41»

.b. For fiscal years ended March 31st.

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217

47

Manufacturers Council, but the percentage contribution of tobacco

taxes to total provincial taxes had declined slightly from 2.2 per cent
in 1958 to 1.9 per cent in fiscal 1966 as shown in Table 9.

Like in the United States, and as we will see in Great Britain, the
importance of tobacco taxes is seen by the tobacco industry as a per-
suasive incentive against government action to reduce cigarette consump-
tion. Take for example the following paragraph from the Tobacco Rspgrter,
written while the government hearings on seeking and health were still in'
progress: 1

At a time when the Canadian government and that country's.

,tobaeeo industry are heading for a major struggle, it is

reassuring to learn that the Canadian government does not

anticipate a victory over cigarette smoking. When Tobacco

Reporter asked the Canadian Hinister of Finance, Edgar

Benson, if he expected the anti-smoking campaign and

proposed legislation to cut down on the government's

‘ revenue from cigarette taxes he replied,"I think not,

you know. There has been a campaign going on‘60r quite
a long time and revenue-_cnntinne climbing.‘

_The difficulty in replacing tobacco revenues is enormous ahd the
political liability for the political party that imposes new or heavier
taxes are potentially large. flhile the burden of progressive change
generally rests on the BDVOIIIOBI. there is little incentive to tamper
with a system that raises so much revenue so easily with as .few political -
repercussions. ._: 1 . , _ ,i , _ .

“The tobacco industry is very semeitive tn the burden of tobacco
taxation. _1. in address before'the Rational Association of Tobacco and
Confectionery Distributors Convention in October, 1969, Par"candidly
observed:

In the past two years we have experienced a greater rash

of provincial and federal tobacco taxes than ever before
known in the long history of the Canadian Tobacco Industry.

own: c: 30 nai1ieilinafi egsfinegrnq 9n) Jud ,Iijnuc) eisuxtacvav

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218

Table 9
Provincial Tobacco Taxation in caaasa‘

Tear Tobacco Taxes Tot “Tessa" Total list General Percentage Tobacco
“W5 r

 

Revenues axes to Total
' ‘s (“0005' _——_‘g_a_x_e_s_
1950 10,003 570,552 952,553 2.09
1955 15,022 665,205 1,615,980 2.26
1950 22,253 1,010,159 2,170,559 2.20-
1962 10,350 - 2,007,571 5,255,315 1.35
1965 31,255 ' 2,699,515 5,207,530 1.15
1965 53,505 3,355,159 5,100,611 1.59
1966 75,655 5,005,235 5,355,153 1.05
a. Compiled from Canada, Dominion Bureau of Statistics,.£r_o_v1._n_-
it‘fifif-‘fifi-Eti-‘Li’ffié .E‘X‘n’ofigchifli‘fiflufi‘hhmm,

a ciuntte tax to provi
1965 Ontario, Manitoba and Saskatchewen began tmdng

lufomdland following in 1968.

b. Yukon ltd Northeast Territories are excluded.

de hospital benefits for residents, while in
cigarettes with

9 956$?

abr"63 n} noiftan ocnsfioT Isionivowi

"
r - 7' ,4 -.s _ - __, l‘ '1- '\ _a r A " d --, T ' A ..- J "‘ '
M c: a, :«n,n1 1.:v . , v . 01 a..n .t.fiT 85 ' 0'55 9: 1;
“a- - uo- - ~‘ ~ ”‘4 ~ 3.: e.- o e e- #39- - ‘ 5 1.. - ~ '-
— a o I ' ‘- . -
1:1,)! (r: a. (fit $1.. H ‘ 0,: k{“‘ .3 (’I'_)};

- ,.. ‘ a-- 5
,‘3 1 \‘9 ft.

 

CCI,CIO,I
[13,YRO‘S
A18,P€a,§ b
{[3,0vf,8

909,52

.1 5.21.9133 0.39.09

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,pa'f*}3238 10 US$198 notrl~nfi ,n'cst 9%; 021A .(Q:*I ,xsdmvvod ,193n111
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219

For instance the total of provincial taxes in the

past two years is nearly equivalent to the total
, in the previous 8 years . . ..an increase of over

3001. It would be unreasonable to expect this

sudden and heavy load to have no effect on sales.

However, manufacturers would like to think that

governments now recognize the inordinately heavy

tax burden that 5 million Canadian smokers carry

and hope that more stable rates in the future

would provide a levelling of this burden and permit

the industry to maintain a patterg’of growth con-

sistent with that of population. '

There are several reasons why the Canadian tobacco industry is less
politically powerful than the tobacco industry in the United States.' '
First, Canada has no provinces that can be characterized as "tobacco"
provinces."’ This is in part due to the lesser importance of tobacco
production and nanufacturing to the provincial economies, but it is also
due to the separation of tobacco agriculture and manufacturing in two
provinces, Ontario and Quebec. The absence of overlapping economic
interests has weakened tobacco'e political inportance, both regionally
and nationally. Furthermore, Canada has no regional tobacco tradition
and identification. The Canadian tobacco industry has always been both
peripheral to the Canadian economy and especially overshadowed by its
giant 0.8. tobacco neighbor.

Second, the economic isportance of tobacco is not politically well
represented in Canada's parliamentary system. Tobacco interests are not
"overrepresented" as they are in the United States. unlike the united
States, Canada has no seniority and committee system that allow key
representatives in ”tobacco states" to postpone and/or block proposed
legislation and carefully watch over federal administrative programs and

appropriations. The Canadian parliamentary systen facilitates more
centralised consideration of the controversy which is less vulnerable to

regional economic interests and political pressures.

 

t-lf‘

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220

On the other hand the Canadian govern-ent say be inhibited by the
inportance of tobacco taxes which is greater than in the United States.
The Canadian government is inhibited too by its own awareness and sensi-
tivity to the social consequences and political impact of its actions.
~The sloking-health controversy has not becoae a, political party issue in
Canada. Both Liberals and Conservatim‘hsvb tried to mid antagonizing
cigarette makers and at least postpone the political repercussions of
having to find alternatives to cigarette tame and. alao avoid the ire of
those economically bar-ed by a govern-ant anti-noting program. As we
have noted previously the Canadian approach has been characterised by
gradualisa which has had an iiportant i-pact on the tobacco industry's

response to the prob)... «

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1.

221

Footnotea - Chapter VII

For a historical seasideratioa see Robert Leslie Jones,‘llisto_11 21:
Agriculture turein Ontario 1613-1886 (Toronto: The University of
tees-to Preaa, 1946).

 

Canada, Stndhg Co-ittee on Health, Welfare and Social Affairs,
Minutes of Proceedings and Evidence (Co-Ions), No. 63 (June 17,
1969), ’0 ~19020

 

to: detailed infornation sea special section on Ontario Tobacco
Statistics is _flg Lighter, mun (Fall, 1968), pp. 3M1. »

See Cgeda, Restrictive Trade Practices Co-ission Remt Coernnc ing

(Ottfll, 1956). ppe 132-3s

 

A1bart.A. Basia, Tobacco §g_0atario, Canada, Foreign Agricultural
Service, U. S. Department of Agriculture (Washington, Nova-her, 1968).
Alla see Canada, Report_ of the Federal Task Force on riculture
(Ottawa: Queen's Printer, 1970), p. 239.

 

M?

3.13;, p. 242.

39.41.. m 243-

_n__a_1_g_. .

M" p. 21.1.

1!! Lighter, XL!I (Winter, 1971), p. 7.

Canada, Studing Co-ittee on Health, Welfare and Social Affairs,
Minutes . . . , (June 17, 1969).

 

_Th; W, rxxvn (Yell, 1957)..
E Lag-tar, xu winter, 1971), 'p. 7.

Quads), Studins Ce-ittee on Health, Welfare and Social Affaira,
Iggy—baa . . . , (Jme 17,1969). .

Ibid., p. 1915.

Fungal]. 58s “'a

~. .3 .-—-.~.——a~

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.\a -..... _-

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17.
13.
19.

20.

21.

22.

23.
as.
as.
26.

27.
2s.
29.

33.

33.

33.

222

3!: Lighter, XXXVIII (winter, 1968), p. 37.
Ibid. .

Dara McClaren, "Tine no- for Positive Militant Action,” Delhi less
lacsrd, January 20,1971.

!!2_Ligbter, XLI (Winter, 1971), p. 13.

While no subsidy was paid tobacco producers during the period 1960-
60, a grant'sas*nsde for 1967-68 to the Ontario Plus-Cured tobacco
Grower's Marketing Board ($141,865) for colaitnsnta.incurred per-
taining to the sale or disposal of the 1961 tobacco crop. Canada,
Debates (Can-nae) Olarch 2, 1970), p. A214. .

Sea Canada, Mpg not the Federal Task Force on Agriculture, pp. 267-
303. Ice chapter 11: "Covers-ant Agribusiness and Par-er Organisa-
tions." The report includes sections on the role of govern-ant in
organisational structure of agriculture and on the Canadian philo-
sophy on the role of government. Also see Hun. Dru-land, H.J.
Anderson and 1.0. lsrr, A leviev‘g£_ggricultural Poli§z_ig_Cansda,
Agricultural Beans-ice Research Council of Canada (June, 1966),

pp. 61-65.

‘—

Caaada, Canada Yearbook (Ottawa: Queen's Printer, 1968), p. 681.
“fle'j ‘7‘.
”_‘_-£10. ’e ‘31.

Canada, Standing Colaittas oa lsaltb, leltars and Social Attairs,
Iinates . . . , (June 17,1969), p. 1.01. '

 

Ibid., p. 190‘.
Ibid., p. 1913.

e , - .

Iryaa I. lilhsy, "Cigarette Productiea, Selection, and- Sinking
Procedures for a Hulti-Disciplinary Tobacco and Health Research
hogan," _t_be__ Lighter, 11.! (Winter, 1971). P. 9.

Ibid., p. 12.,

8.1. lattield, "Issaarcb Objectives laphasise tasting and lsaltb,"
gag Laggter, IL (Fall, 1970), p. 5.

the Lighter, ll!!! (Seller, 1960), p. 1‘.

Canada, Standing Colaittea on Health, Welfare and Social Affairs,
Minutes of troceediggs and Evidence (Co-Ions), lo. 17 (February 18,

19695, . —528.

". I'wa . “1'! Y ",\r\r ,l 'V
.\; .q .\.cai ,IvJJ ~) JIIJLHX ,793.614 93?

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223

Canada, Debates (Co-eons) (October 5, 1970), p. 8728.
Canada, Report g£_£hg.ledera1 Task Porce 25 Agriculture, p. 239.

C. B. Blackstock, "UK.Access to the ECC - Evaluation of Conaercial
Aspects," Ag“ dculture Abroad, Canada, Depart-eat of Agriculture,
XXVI (August, 1971), p. 139. For a lore detailed presentation, see
”Tobacco in the BCC, " Tobacco Intelliggnce, XXIII (London: Col-on-
wealth Secretariat, jlay, 1971), pp. 105-13.

Canada, Depart-ant of National Health sad.Hal£ara, The Canadian
Snokigg_and Health Program: A Case History (Ottawa, 1967), p. ‘2.

"Why Did the Canadian Canes Suddenly Stop," Tobacco hporter, XCVII
(Amt, 1970). ’o 3‘s

As of Deco-her 31, 1968, the allplly+Ilfllly.‘~5,59‘ persons.
As of June 30, 1969, the culpany elployed 1,A00 persons.

"Diversification Moses in 1971," Tobacco Reporter,.XCVIII (December,
1971). ’0 11a '

Canadian.Haaefaeturors.Asseciatioa, 1971 Canadian 2rd __ggg, p.
1971.

Canada, Debates . . . , (October 5,1970), p. 8728.

It was noted in The ughter that' 'governnent intervention is very
widespread throughout the tobacco industries of nany‘couatriesa this
is sonetines due to the importance of tobacco for fare incomes but
nore frequently to its iaportance as a source of govern-eat into-e."
See The Lighter, XL (Sun-er, 1970), pp. 20-21,

Canada, Debates . . . , (October S, 1970), p. 8728.

"Government-Industry Agree-cuts will Bring End to Radio TV Cigarette
Ads in Canada," Tobacco Reporter, ICU!!! (October,.1911), p. 50. E

Canadian Tobaceo'laaeiacturers' Cooacil, Pacts About the Canad
Tobacco Bconoqy for the Year 1970 (gatinat edi (Ottawa, April, 1971).
ographed{)- _ .

Guy Goodwin, "Canadian Industry Speaks Oat,” Tobacco ggpgrter, XCVI
(Pebruary, 1969), pp. 33, 36, 36. """"

Address delivered by Paul Pard'to the National Association of Tobacco
and-CeniectioneryuDietribetors Convention, October 8, 1969, p. 13.

 

 

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Chagtar VIII: Govcmnat lajonaa t___o the
Smoking-Hunt: Controvatoy in

A. Caadias in;___ ad Hoal__t__h Pro real“

'rha Canadia gown-ant tirat publicly tacopiaad tho taking ad
haalth ptoblaa on Juno 1?. 1963. wha Mihiatar of Haalth ad walfara Judy
Lanatah told tha Caadia Roma o! Gonna: . ‘ .

noto ia aciatitic ayidaoa that cigatatta taking it a

outributory cocoa of lag caoat. ad that it nay alao ba \

aaaociatad with chronic broochitia ad coronary haatt

diaaaaa. flaalth apociaa. including q daoattlat. hava a
aty to into:- tha public about tha rials to haalth cooaactad

.vith aiutatta was.
cam mania. ia ‘Gaada can anon). yaaa. atta: ainilat otticial
“tin of tho munboth in tho nomad atatoa ad in Goat Britain.
"idly. tho Ma outta coal:- to tailitata “aim taro Minion
in par capit’a cigaratta coon-tion ad "tat ad oicotioa intaka baaically
throat: a baaltb adocatioo pm PM puaat chaptat cmid‘ara tha
Caadia [onto-at“ tapoaaa to tho annoy-hoolth controvaray aiaca
Lallanh’a 1963 apaach.

.1, War of ‘tha tat yaar. tho Dapattant o: latioaai llaalth ad
“altara apaaorad a Caadia Cataract on gum. and iaalth to diacuaa
tha mun. problan ad to dovalop a coordinatad ms“ pm"... to.
attic; wad attadad by muaatativaa oi tadaral ad provincial gov-tiv-
aata. voluiitary‘ ad protaaaioaal haalth association ad tho tobacco
induotry ad nova“. Hhila aoaa tavorad atm'; lagialativa actioo. "tha '
cooaaaaa tawurad a‘ progra of raaaat'ch ad haalth adulation."2

tho baaic objactiva of tha aatiaal prograa which multad fro- thia

cantata cat “to radoca tha iocidaca of la; cacat ad othar diaaaaaa

224

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225
attributablo to cigarotto amoking. by tho roduction or alimination of thia

hoolth hazard. " 3

To accomplish thia objoctivo. tho program includod:
(l) a program of hoalth oducation and (2) a program of opidomiological
ad ativational roooarch to aaoiot tho oducational program. 'l'ho govarn-
mat alao acknovlodgad ito rolo in "aaoiating in tho coordination of .
activitioo of tho variouo govornmontal ad non-govornmontal agacioo" ad
"in producing baaic oducational motorialo for uao acroaa tho country." aa
wall on in ”promoting roaoarch into tho intont ad naturo of tho omking
habit in Caada and tho ativatioaal oapocta of taking." 1'
Rom tho progra' o iaooption Caadia govarnnont officialo hava
otraoood tho coordination of public ad privato oftorto to roduco cigar.
atta mung. Thoy hayo aloo rocogaiaod tho inhoront conflict botwoon
pflmt hpartmato ouch a! hoolth and volfaro and agriculturo. Tho.
diojointod 0.8. approach hoa' loft thia conflict within tho govornmont

arooolvod and alaot unaxplorod. but no uo ahall ooo. tho Canadian
oituation ia oomhot oiglor than tho no in tho Unitod Statuyhoro tho

todaral govornut io burdaod by tobacco pinboidioa and. tho govcrnmont
about ad mama: that it ialioa.

'lloalth oducation io oxpoctod to ho a major moao of achioving tho
progra'a obfioctiuoo f'to Moro, tho public about tho rioko to hoalth
ooaoatod with cigarotto smoking: to acouraga amoharo to diocontinuo tho

habit; to_ diam ,noo-omokara from acquiring tho habit.."5

Tho (in
m to aha hoalth aducation prograo. Hora to bo diractad vara. in
ordor of priority: (1) hoolth wot-hora. (2): toachora ad poraonnol in roachar
"will! ‘MC-imim (3) aro-tool: ad toot-ago ochool. childron (A) parat
orgaiaatiooo. voluntary. profouional ad civic groupo ad (5) tho gaoral

M118.

 

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The Department of National Health and Welfare has coordinated the
Chnadian sinking and health.progras. A total of $600,000 (Canadian
dollars) was sarked by the cabinet for a five-year period beginning in
196‘ - $200,000 for research; and $400,000 for health education (exclusive
of salaries). 6 '

In the early stages of the Canadian government’ajaction, restrictive
legislation was considered but postponed indefinitely; ‘

fiscalling the dismal results of Canada's attempted

prohibition of alcoholic beverages in the 1920's,

Departmental thinking favoured a progra’ of health .

education in the satter of cigarettes.

As in the united States, the unfortunate experisent prohibiting alcohol ‘
is used in Canada as a rationale againat extra-e action by the gouernsent
against cigarettea. It was envisioned, houever, that the situation might '
reach a point where'legialative action would be justified. 3‘

In the follosing section the Canadian govern-snt'arprograss and
activities directed tosards each of its five prisary target groups will
be exasinéd. The data are froa the 1967 publication bi the Departsent of
National Health and Velfare, _T_h_g Canadian Sinking .922. £21.21! Program";
Egg: histogz. I “

l; frofeaaional Health workers-

ihe govern-ant found that the issediate'need for professional health
sorfiersivas an'authoritative reference'booh containing the nest significant
reports on the smoking”and health'issue."$§2_Snokiggigéghgeglth.Reference
325 (m5 1’ begun in batch, ‘1964,’ a. éoapuced e'xpeditiouslyito' £111
this void. ‘A ready-reference section provided answers to the lost fre- ‘
quentli aaied sedical questions on sacking. Copies of the publication

(printed in‘both English and French) were sent to’parliasentarians,'

‘1‘!“

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227

neaaasn and every Canadian doctor as the first concrete evidenu of the
Canadian steer-a.

me saver-Int also has sought to attract the attention of this group
thronh a series at educational displays exhibited at aajor asdical and
public health convention. 'l'or anemia:

tanking nchieaa. aeceUent attendee-setters and

participation inviters, were incorporated in these

Ealhihits] toidaaanstnate-the dangerous tar content

of cigarettes and the advantages of non-inhaling.10
2., Teachers and Personnel in Teacher Training Institutions

To reach this group, the govern-ant put together a Teacher' s lnforaa—
tion Kit which included psaphlets, posters, reprints, reference lists and

acoaic book treat-ant of the aaohing problea. The kit drew heavily froe
already existing sources and contained little indigenous Canadian aaterial.
The kit was planned, however, so that its interiaraake-up could be adapted
to include new and better tested aeterials as the latter becaae available.
lost of the itaas in the original hit base been. superseded by distinctively
Canadian laterals. To www.mioaal caesium, a Teacher's Resource
Guide, designed for use lithia the standard health education curricula
of the variau provinces, was published in 1966.11 I
3. m4... and Teas-1p school Children ' '

A nuaber of different progress have been used to reach pre-teen and
teen-age school children. Monthly soft sell ads using huaor and teen-age
jargon were placed in a national publication bee-ed at the high school
student. A file produced by the National Pile Board entitled "Let's
Discuss Seeking" featured a group of secondary school students discussing
the problea with an educational psychologist. In May, 1965, a Canadian

Youth Conference on Seeking and Health was held in 0ttawa to get further

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228

help in understanding the beliefs, attitudes and receptivity of this
particular audience, to encourage teen-age participation in the prong
in the delegates' own regions ,‘ and to provide potential leaders with
authoritative infornation and experience.

The Depart-ant of Rational Health and Welfare also cofliuioned the
Rational Pile Board to produce an anieated cartoon entitled "The Drag"
which portrayed a nor-_al youngster taking up the, habit which was initially
“10ml. and ultimately dangerous. The ridiculousness of his acceptance
of cigarette asking was the point _to be put_ across, preferably with a
good sensors of belly laughs. 12 While asphasiaing the soft-sell approach,
the depertaant's objective is still "to discourage cigarette seeking
entirely, particularly mung those_ who, still have a choice, - young people
who have not .yet been. dependent and omitted .to cigarettes as a part
of ‘W~1:1',‘"" 13

5. Parent Organisations, Voluntary, Professional and Civic Groups

The goverment. and this fourtho‘tar-get group cooperate:

A close working relationship with s_ nuabsr of national

agencies directly co-itted to the objectives of the ,

{Progrua has been aaintained froa the first -v- .both -

through their representation on a technical advisory

oo-ittae to the Hi stsr‘, andthrough the association

of natural allies. ’ '
The l9“ Canadian Conference on Seeking sndhealth augaented the exchange
of infornation and cooperation between these groups. Such an exchange
was achieved “through direct liaison and by Advisory Co-ittees on Health
Education and on Research." 1’ Purtherabre” in 1968, ‘a coordinating -
co-ittee' of key organisations was (bread to carry out cooperative pro-
gras. This co-ittee is cheaposed of thd Canadian Cancer Society, the.

Canadian heart ‘Foundation,’ the' Canadian Tuberculosis and- Respiratory

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229

Bissau Association, the Canadian lbdical Association and the Departaent

of National Health and welfare. The activities of these health-interest
groups will be dealt with later. The Canadian co-ittas serves basically
the a- chtion as the American. National Interagancy Council for Basking
and Health. coordinating efforts when possible and exchanging‘iuforastion.

5. The General Public
In addition to'posters md‘publications, public service co-srcisls
have be. used to infers the casein people of an hassrds .c‘ cigarette
smoking. Canada has‘no equivalent of the “fairness doctrine“ used in the
United States to canal Canadian television to allow free ties-for antib'
ending prsgrsei. Rovever, the Departaen‘t of national health and Welfare
is given free tie- voluntarily as a public eerviee to the Canadian public.
does of "this ties is used for anti-Iveaohing es-srcials.' The governaent has
been “r9 espiaant of‘t'he‘ difficult situation it faces in atte‘apt‘ing' to “
cadet cigerette aCVertisingt ’ "
Jinaa‘c'islly the Progr. was in no position to'challenga '
the industry's mlti-eillion dollar expenditure in their
field. Free public service tiaa was the one hope. It
was a soauhat this one, what with the broadcasters being

sensitive to the relationship between the good will oflghe
' cigsrette ushers ad their contribution to TV incoee.

The governaut aede funny, professionally excellent anti-seeking
co-ercials priasrily appealing to young people. The first 20-second color
cartoons were sired initially by sons Cnedisn stations in February, 1967.
several aouths before the United States Federal Co-anications Conission
decision spplyingthe the'ffairnesa doctrine" ‘to cigerette advertiseaents on
television and radio. Although the governaant's co-srcials were restricted
originally to young people' a nd woaen' s prongs, they have been scheduled

increasingly during prise ties. Further-ore, departesntsl publications and

 

 

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230

services have been natural indie for projecting the soaking ad health
asses, in articles a related subjects.

The gsaroaent, in describing its own progras. has aaphaaised the
news asdia‘s substantial coverage in publicisiog snaking-health activities
which are announced through dapartaent news releases. They take pridein
the dapartasotp'a policy that ”only those stories which could asst the yard-
stick of I discriainating national newsdask should be outta?” and ”no
ton-u . ._ . has failed to such the natiaaloews wires." 18

Like the federal Trade po-iasion in the thitad States. the Canadian
”rosoo: teats ad publicly reports. on the tar and nicotine cantata of
cigarettes. The first report was released by John Munro, Minister of
National health ad Welfare oo Novaber 20, 1968. and showed tar ad nicotine
levels for 84 __diffarat types if cigarettes. The report announced that
"the pain pontoon _io planing this. infornation is to allow people to know
tar ad nicotine levels of the cigarettes they aaohe so they nay, if they
wish. avoid the» with up; ad that-_- those with low levels.“ 1.9_

A second report. was, releaped in nay. 1969 and included the suggestion
that "cautia should be .used in mating the1 results with those, obtained

u. no mo tuna-w”?o

great results avatuslly will _be, standardin so
that malts will. be constable over ties _as ,well as within a single test
period. and hopefully unifora procedures will allow cross-national. coasti-
sons. . J t
In the third report rnlsaed' in July. 1970 Munro noted that ”sons types
[of .tpttttqtl show progressive reductions" in u: and nicotlpe catats,
indicating that such reductions are feasible. as ito-anted again, however.
that 'wslhnaw of as safe. cigarette ad it is” Departaot'a position that

by far. the best assure is to stop eating completely." 21 In announcing

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231

the results of the fourth tests on february'z. l97lhunro cited the coopera-
tion of his dep'ertaat with the Departaent of Agriculture in atteaptiag to
develop the tobaccoe required for the production of less hazardous cigar-
ettes.

The Depertasnt of stunt: Health ‘ad aunt's mutt; ad health
progra is directed in the long rage towards eroding the cigarette sacking
habit. It u tint. however. -froa eati- recent Canadian govemaent 'ectione',
that their patience ‘in' waiting for this long run effect is liaited. Prograa
changes are apt to continue to result froe periodic progrea evalustions‘ * "
within governant and froa pressures froe health interest groups and others
for aore dyneac governant efforts to reduce cigerette saoking.

I. Legislative Efforts *

The aly oatiael legislation Mg cigarette soaking in Caade
can in 1900 with the passage of the Tobacco Restraint Act. This bill,
intended to penalise thoee who ends tobacco available to’ people under six-
teen. was siailar in content to e britiah lat passed at about the seas tins.
While the Canadia 1900 act has re'aained on the books.’ it has never been
enforced. The act "also sought to renedy the problea of already existing
diverse ad conflicting provincial legislation. and in effect. to bring
unity ad order to a otherwise confusing picture 'of regulation. The
Minister of Justice. in introducing the 1900 act. co-snted that “it has
been nought better that not. should he to. Wt” of putt-.1 mu-
tttta. to the whole of cuta."- ‘3

Unlike both the United Itet'es where federal legislation in 1965 pro-
hibited individual state action against cigarette seeking and lritaio where
the problea posed by fedsrelia do not exist, Caeda has- iaposed on
legislative liaits on its provinces on this issue. The question of provincial

h)

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Hf .nuijxfughr io auujaiq 3n: 8111003 oa:w1o1 o as o: Tohxo has {Jinn
bf/ )1" 31d: Lozuonnou .338 BQQI so: 3:1.1ub013al cl .aziJaLL 10 Iovfliuffi

 

~ligjn 15-}Pw; 10 ncizrizd '91 9103 9d biuo:.a s19d1 and: 19335d signed: mood
E: n 1, . I .
.awnaud) .o 911u.d 9:3 03 :33;.L9
~11q Cuti a “1;.nfagfw1 thobo? sugar 333938 bosiaU 933 fiJod hilly?

‘C r ' - h 3‘ f -' ' e. " ' Is .' s -' . "9 r .' :\ e ‘ s . $' . " ‘3 . II

:JJ .% ‘§:.£sJ-.J'"a flat-‘4 5A~~'---lo"ua JJJJissL‘AJ jeodasole‘h ‘:(3A3 In sjbsa IBUe-J "U'aqse:i o‘e‘.J-'-~J-‘~O"

on Lpzu3rl EfiC B one) .331x9 Jon ob midi £11b51 3d Lsnoq content; :;3

., r ' i: . ,. - . "
.’f'.{‘ ." .1 .1 '1“ io ' ‘ ’ ’ .) SHE .Sl'rc’ 351.13 {10 BL'DJLVUJQ 3.11 1.0 JLJJJ. E’VJMIEJCNI ‘4»

232

pm”! fl thin but In no; and 13:11 1971 that :11. prom“ at
mm col-m. 9W6 a 1m on .11 tobacco and 1m: advertising.

1h nonbi- saline: or dial-nut: homnnml and ””111qu- 31mm-
mt an“ m a mm: than: :0 an tutu bunni- anvil-mt of.
III. M induct}. Mutton new lad-laden II in :11. Wind Stun
at can: 1mm proud“ 5 unbh Lad «mm: m: it attractive; to
III. indium. .hccntl.’ thi- nomtul. “and” find mine: by bacon a
tuna. vhtnh m, VOL]. 19m national legialation.

A “a: of bun to maxim cmmm hill bun 1.1mm“ into 1:11.
Can.“ Pun-mt. For “In. 3111 c-59.- & _A_c_c_ g m _t_h_g m
mm. m um 11;. um. radius on any n. 1967.. 1'11. 1.111 a“:
m and. an 1.908 an: which had m tuft-am). ml WIMh.. 3111
0'33. fififlmgyfifilm. tint. m on elm u. dun
mmpmtmnt th: 1903 an. which-dell; gotta”. «1 aka
durum «It-Labia. to ”m nut :11. no of. pants «nun. In. addition.
no hill laugh: to ”prone: uh. noun-Ir or purchmr of tobacco product:
tro- m. Ina-11nd a. mm a m that: autumn may a: “any
at Ila-mum ch; ul- .dcmtimtqt tahacca tum” .111; Pm?
pond act would hm sun can mum: ta W1 mt so m“ :11.
M. m ml «um-m.“ .mm $170699“ ‘0‘ 1! “£940.43
a l but. to: tbs emu ”buds-tus of tobacco _pmdnct Loam.
3111. 01-119. A; 95; _t_g £31 5114;133:552 Running 95;. van introducad on
any 29. ML. m.m at eh. 1.111. \III: to 7'er tho “alumna at
mm to «aux-n, any“: 9”“ in: tho fl“ "om my in
injuriou- .u bum." ,

on“ W m nomad t9 «and .thokprouctm 9: _th- 5%
.fl an m. which unmet up .mr “an; M ggjrmduhnt

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233

adworuom at oolling of food. drug-g countico. ond novicoo to tobocco
prodncto. 2‘ Bill 0-287. ££2M£§g Broodcaotin; _A_c_g, firot intro-
mo flail 5. 1967. nought to control or prohibit cigaretto advortiaing.

limo 'o! “no W billo on“ pool: tho firot roasting otago
in row and tho inoftocmal 19.08 oct io otill la. thorn io o cloao
oinilarity botwoon logialatiwo ottonpto in. Canada ond propoaalo or logis-
latiwo attonpto in Canada and propoaala or actiona in tho United Statoo
no Croat Britain. in we ahall ooo. Cmdian policy hao boon oonowhat
conatrainod by tho action'a or inactiona of ito noworfnl noighbor.

éanatlian logialotivo action roanlating cigarotto cooking hao boon
aoporato’ tron tho adniniotrativo actiono wo havo diocnaaoo which woro tahon
without logiolativo initiativo. Logiolativo action hao focnoood ottontion
on tho problon ond highlight“! oono of tho boooibla 'altornativo'a. 25 No
logialation actually hao boon paoood to dato, but tho Canadian aovornnont
ooooo to bo noving inoxorably toward logialation to control cigarotto
adwortiaing. ' ' ' ' ‘

" Thin conclnaion ia anbotantiatod furthor by govorn-ntal rofiorto
roloaood oinco 1968. In rooponao to oi: priwoto oonbor billo’ introdncod
in tho honao of Co-ono.‘billa which nought to rognlato cigarottoo or
cigarotto advortiaing. tho Standing Co-ittoo' on much. was“; and tocial
Affairo bold langthy hoarinp to “tho: toatinony on poooiblo ”worn-ant
actiona. 23 ' a . ; ' ~ I

rho oorioua tonpor of tho hoarinp waa aot at tho oponing by noalth
Miniator hobo Euro in bio prooontation to tho co-ittoo on Doubor 19.
1968. n. amen tho roalioation by tho unwornnont cm roplatory alto:-
nativoa warrantod uploration. 'l'ho m _o_n Cigarotto Booking 93 m J

which ho prooontod roviowod: l) cigarotto outing ao a hoalth problong'

 

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234‘

2) tho Conadin .okiag and hoolth progran ad 3) turthor poooibilitioo
for action. With-rotoronco to additional poooiblo goyornoont actiona.

hro otatodc
It tool“! that to accolorato progroao towarda tho olinino-
tin of tho hoolth haaardo of cigarotto anking ad to onauro

ouccooo in achiowing thia goal both intonoiticatioo of prooont
oftorto and uoo of additional nothodo will bo roquirod.

. . . It now appoaro that cortain octiono now'c idorod
dooirabla can only bo obtainod by logiolation.

- tho nagnitudo of tho ovidonco indicating tho dangora of cigarotto

onoking lad to govornoont oupport for rooodial action. Munro addodx

'rho ovidonco of tho dangoro o! cigarotto onoking to now our-

wholning and tho oagnitndo of tho hoalth problon vory largo

ad incroaoing. Evory affort to roduco tho prowalonco.

flaunt ltd doogorazgt cigarotto onoking could. thoroforo.

now bo “out“. .: . a
Canadian logialativo hoaringo aro a aign of govornnont intoroat ad concorn
in dowaloping a logialatiwo progran to combat tho problon. Without goworn-
oont omort. no co-ittoo hoaringo‘oould hoyo boon hold. 39“

nu mm anggootod no conaidorationa upon which .11 othor'actiono
to control cigarotto looking could bo baaod: (1) “my oflort to ”onto tho
nao of cigarottoo would bo inconaiotont with tho objoctiyo of doing ovory-
thing pooaiblo-oohort o! an outright ban on tho oalo and ooo of cigarottoos”
(2) 'oantmao oalo of tho product‘conld only bo‘ conoiotont with my
objoctivo if aocoopaniod by on adoquato warning of tho ‘rioko for‘potontial
nooroi o liat of contont” and inotructiono' rogarding looa"haoordono uoo.”3°

Ibo Dopartnnt of'lational hoolth and Walton loco-indod to tho
codttoo’ that thoy onloro tho loa‘aibility'o‘ furthor action' in thr'oo
utogorioo: (I) logiolation, (I!) voluntary action by cigarotto nonufacturora
in an) incrooood aocial" action apart m- logialation. iha' foang in

in ontlino at tho altotnatiwoo which hoolth Miniator inure onggootod in

 

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235

hia taoaiany. lay of which alraady hava boon propooad and/or “round
I. Logialatim '

A. . ”Cigarotto advartioing ad pronotional activitiaa

l. a oomlota ha on all cigatotto advartiain; and
proaotional afforta.

2. a ban on cigarattl rioting in“ advartioin.‘ for all
‘ prodnota othar than oiurottaa.

It a ooalata pan on cigaratta adrartiaing or pronotion can not fauibla.
tho following coabination of natural vaa anuutodt
l. Blinination of tho act of cigarotta ranking tron

all cigaratta advertiaaaanta and advartiaolanta “
for othar produota. -

2. Eliadaation of .11 adnartiaolanta that could ha.
conatrnad aa onuaatin; that poopla aoka nora
.ortakaaaropoflooaatiaaratta. .

3. Eliaination of all coupon ad pro-inn aohoIaa ad
tha fraa diatribntion of ciga'rattaa.

Tho uniotar carafnlly notod tha poaaihla oonflicta hatwaan fedoral ad
provincial Jnriadiotlon 19 tho Iattor of cigaretta advartiain; controla
ad unwind that tho oonittao conoidar lothor altornativo'o in tha avant
that tho ahova onuaationa word not fouibla in {canal lav.

Partial adrartiain; 'baa «to not rocomndad ad Britain vaa citad
an a aaplo of tho fact that ‘a partial ha in likely to raanlt in incraaaad
W aotivitiu in othar porniuihla aro“. Unitad gtataa prora-
antalJaaoi-oo Alto‘uotadthio difficulty in that daliharationa and tha-
ICC datorrad at “rat to broadar RC action to provant thia ahift in ad- 5
firm. Injritainltha aliaination of cigaratta advartioin; on tala-
viaioa m follwad by incraaua in ovarall pronotional bndpto ad in
coupon gift «has». Tho olinination of TV and radio cigaratta advartiain;
in tho Unitad atatoa hopinnin; 1971 raanltad in a graatar than #00 par cant

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236

increeee 1n nevepeper cigerette edvertie1ng, en over 100 per cent increeee
in eegeeine edvertieing end en over 600 per cent increeee in outdoor edver-
tieing.1n flCtg even etch cue elm-inetion of none $211 Iillion dollere
in broedceet cigerette edvertieing, totel edvertieing outleye for the
yeer dropped only 23 per cent froe 1970 to ease $200 Iillion. 31

B. Cigerettee end cigerette peckegee end certone

1. A etetencnt on e11 cigerette peckegee end certone
‘thet would eern'potentiel end corrent‘eeoherelof"
the dengoro end 1ndicete to eeokere e leee
heeerdoue‘uey to nee the product. A euggoeted
eteteeent wee:

Herning: The eeoke of theee cigerettee conteine

cancer-producing cheldcele, 1rr1tence, nicotine,

cerbon eonoxide, end other toxic eubetencce end
ahould not he inhelee:intorthe tango.

Euro eleo mat the: mum be “an to e required verning

in ell cigerette advert1ein the} eiflt ~11 otter tegiel’etive ection.
Severel eeeplee Inne»loted:' .

Dnnger: Cigerette Seating Cen Cenee Dieeeee
end Deeth.

“hunger: Cigerctce Senting CenVCeeee Dependency,
Delegc Heelth end Shorten Life. ' '

Nothing: Cigerette fleeting 1e Dangeroee to
Health end Hey Cecee Deeth Eepecielly froe ~
Coroner, Beer: Ddeeeee, Cencer eed Chronic
lteechitie. ‘ ‘"

Herling3 The Uee of tobacco ley he leeerdeee
to Your fleelthu: .

The H1n1eter-ceteiully noted 1eg1e1et1ve ection teken in the United Stetee
end the etronger centionery eteteeent thet et the tile hed been recon-ended
57 the Pederel Trede coe-1ee1on ee e reoult of public eurveye end the tTC'e

teriev of the eituetinn. J
. 2. Mexieue levele of ter end nicotine contente be

eeteh11ehed for ell cigerettee. plein-end end
l11ter.

 

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237

a. loderate initial minus and progressive
decreases in tar and nicotine levels be
established as growers and nanutacturera
adapted to the change and thus result in

. substantial reductions in eyesore over
- the long terns.

b. Mania:- lsvela of tar and nicotine contents

beastabliahed for all filter cigarettes.

This asggeatisn ass heasd an the gover—ent's «nation that "it is
desirable to reduce snpee‘nte ts cigarette “who nonititnuta as nnoh as
yanaibls.'.32 The second alternative was given because filter cigarettes
constitute about throw-tourths of cigarettes sold in csnade.1'bua,
neais- levels of tar and nicotine for filter cigarettes would affect
where oi star 10 per cent of cigarettes sold in Canada.

c. i requirsnent that all cigarette sales
’ outlets adequately‘dibylay a current list -
of tar and nicotine levels. of cigarettes:-. .
" sold in Canada along with infornation absstv
' ways that anohsra can reduce their exposure
to tar, nicotine and other cigsrette snobs
constituents.

“recounted: - ., :. ....
This aotissrwaeld censihtenaly provide canehera with
infornation at the point of sale. the periodic issuance
of reports by the napartnent of lational health and
Welfare wsuld he of linited ‘valse unless snohers were
able to readily nonpare brands at the point of III."
the posting of this infornation could be expected to
gradually reduce total exposure to cigsrette aloha
constituents by atinulating the choice silos tat, low
nicotine cigaasfies- ad the adoption oi-ieas‘hsasrdous
ways to snohs.

: f . . I: .. & J ‘ 1 a

II. Voluntary Industry Ac“.
1 second set of alternatives proposed by. has dealt with voluntary
actions wbiab the cigarette nsnsfactsraae sould tabs til-selves.
i-. leasatoh 1 . * . . . a
la hays that cigarette mm; night atoid inhalation.

2. Hays that cigsrette snohe night he nsde less toxic,
irritating or cancer-producing.

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II

398

238

I. Tutor-arise for Cosauners

l. Jlnnufactsrera night consider placing a colored
line on all cigarettes to indicate the point
at which consuners had been exposed to 10
nilligrans of tar.

2. The voluntary listing of tar and nicotine lsuels
on cigarette packages and cartons.‘

III. Increased Social Action Apart Tree Legislation
‘0! this third and final category at possible.alternative.actiens

Ibsen said:

. . . by its very nature cigsrettelsnehing is a social -
problea-as sell as a personal health problen.- Increased .
participation by all sectors of the con-unity could help
to reduce its spread anosg young persons, its hold on
cost snehsrs and its continuing appeal to forner
anchors.

A. The increased production of health education neterials
“by the Departnent of latiosal health and holiest and .~
others and an increased use of the nodis especially
‘telsvision and radio.

The latter could be sooonpliahed~by~the following:

1. Cooperation of ths=nedia atinulsood-by the bodice
Television Connisaion for the broadcasters and

d: *the provinces in the case of ether nedia.

2. A legal require-out of free tine or space as in
the case of the United States Federal Con-units-
tiona Conniaaion ruling regarding the obligation
of radio and television stations to provide free
tine for setting and health nessagss. '. = '

The intreaehd participation at erghsiastisna and individuals
in the nationside seeking and health progranm

‘ n

I

hero further explained this point by saying:

as are thinking, for exanple, that industrial and business
lanterns night eoslsct progress along their own enploynea
for the sake of the latter as sell as increased efficiency
and reduced costs due to lost tine tron work; businesses
uho deal with the public such as banks, railroads and stores
could also contribute to public education by displaying
posters and publications; hospitals and other health service
tacilitiss could also participate is.this any and insurance
conpanies night reduce preniuns for non-snohsra. 35

83

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239

c. m gradual olioination of oonking and tho aalo of
cigarottoo in a varioty of placoo to roduco tho
inproooion that cigarotto ooohing ia oocially
accoptablo and that it in courtooua to aloha any-
~20. -‘ '

D. lnoroaood roooarch into tho hohavioral and phat-aco-
logical oapocta of cigarotto dopondonco.

lituro no no "convincod of tho hoard- tho froqucntly fatal hazard
of noting” that ho announcod in hio tooti-ouy that ho was fighting to
giro q hio on .ohing habit:

. . . l h trying to quit. Ihyl Iocaooo I not to livo,

and lioo a hoolthy lilo; boooooo I hovo coat to antaciato

tho daugo I do to oy phyoical oyatoo by outing and bo-

canoo, aa Hioiotar of hoolth, it in oy hogo tbs: all
Canadiuo will anno not thia a. roaliaation.

lhnro' o porooual co-itnont to roduco cigarotto cmtim hao playod
an inortant part in holping to publiciao tho cootrovoray and in proaour-
ing for action.
:-

tho gator-oat oopportod tho rotortal of tho Privato lloobor Iilla
to tho Ioalth, Holfato and social Altaira Co-ittoo in tho hopo thatnou
logialativo action ooold “cootriboco-oatotially to-tho: aodoctloo Lot
“hug"andaloo that: ~ —' ..

. . . it oould alao ho a nigh-«a alga t‘o.tho antito.

Canadian public, including tho tobacco induotry, that

tho parliaoontary roproaontativoa of tho Canadian pouolo

aro dioturbod about tho hoolth danogo boing cauaod by

oigorottoo, and want to vioibly and concrotoly «lo-oo-

atroto thio concorn by roco-onding logiolativo action. 37

to in tho Onitod Statoo, tho oynbolic importanco of govot'noat

o_ I t _ . I:

actiooo 'uoa not ovorloohod. tho co-ittoo itaolf pointod out that "por-
hapo tho noot Icoqolling roaoon to introduco practicablo logiolation to
control tho proootion of cigarotto Dooohing in to bring conoiatoncy and

outual roinforca-ont into oocioty' o actiona to doal with tho probloo. "38

Syflolically tho govor-ont nuot act to aignify ito concorn and aaoort

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240

ite reaponoibility in protecting tho public interact. The inconaietency
and confuaion ceueed by the 'ahoence of reatradato on cigarette advertia-
ing uaa noted by the col-littee ’ad one or ito iaortat receaondationo
woe to gradually elininate tho pronotiou of cigarette ealea. ~~ ‘

Munro, in hie coaittee teatinony, alao took note of tho econonic
inportance of tobacco which will be sore clearly docaented:

It in often claioed that tho tobacco induotry ie one of
our ooot economically iopertat Caadia enterpriooo.

To a certain extent, thie in true. The umber of john
generated in the growth and manufacture of tobacco
producta in large. The cooeaer epending it genoratea
adde to our econay, and I do not need the liinieter of
Iinance to relind no tint on inportant aogpont of federal
and pro cial goweraent ta rev-1e caoe fraaigar-
attee. - I

while noting the eoooaic inportanoo of tobacco, the lioieter alao pointed
out ito coata:

Over and ohowo thoee econonic ooeatmod canine the

haan factor. he ca newer looe eight of the fact

that the iaeue ie the health and mine“, ad indeed
the livea, of countleae Canadians.

Theoe coata were docuaonted in a nae free ohd Depart-ant of National
Health ad Welfare. entitled "The latinoted. Coat of Certain Identifiable
Conoequoncce of Cigarette Snohing Upon Health, Longevity, and Property
in Canada in 1966," "1. which uae prepared to augnent the Hiniater'a
teetiaony. The report, releaaed while coaittee hearinga‘ continued,
nought to balance teatinony introduced by ihduotry apoheoan' about the
econonic laortance of tobacco production and cigarette anufacture and
eale. The Canadian gov'ernnontdhaa gone to conaiderable lengtha to
aaaure and docaont the econonic coata of cigarette onohing no that

Q

ooaningful cogerioona can be node. The govern-ant eatiatee that dollar

r.

coata (in Canadian currency) are approxioetely $400, 000,000 per year:

e a

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241

Lung cancer accounted for $56,000,000 of this, coronary
heart disease for $201,000,000, chronic bronchitis for
$10,000,000, enphysena for $7,000,000, ether disabilities
for $96,000,000, and fires caused by smoking for $13,500,000.
The four diseases, to the extent they are attributed to
snaking, caused 29,000 cases of illness treated by Physi-
cians. 755,000 patient-days in hospital and 5,900 deaths
before age 65 for the year 1966.

In an eloquent passage, the authors of the report directly faced
the crucial difficulty of neasuring cigarette sacking costs and benefits:

Sons any regard those consequences of snoking as econonic
coats, and the productivity of the cigarette industries .
(growing, manufacturing, and distributing) as economic
benefits, and set up nose sort of accounting between the
two, thereby showing either a gain or a loss on their
balance. To do this would be to fly in the face of
econonic reality, for the provision of health servicesr
is as such a contribution to our National Product as is
the nanufacture of cigarettes. It is valid, however; to..
identify the consequences of an action. in can say that
if people cooks, the consequences will be than and.ae. we
can say that if people snake, society oust accept all the
consequences and not just sons of then, Thus, if we are“
to any that we seeks to naintain the product, the onploy-
nest, and the tax revenue generated by the cigarette industry,
an aunt also accept its consequences of danogod health, re-
duced life-span, destroyed property, preempted hospital
.heda, preoccupied surgeons, and orphaned children,.snd
nust be willing to sustain the nisery and agony of the
suffering that the tobacco-borne diseases inevitably
entail. The $378,000,000 to}; cannot, of course, cover
theoeotef that suffering.- - - ~

C. 1.33311. Connittea £22255" .

mmaamumc 2%.W_§2¢1_£
£293. 9; Tobacco-9d; Cigarotto-m wards-ed in late Hitafter
the conndtton had held 28 funnel nastings«in.1960~69 to'hear~testnnnny
and consider published evidence on the cigarette snaking-health question.
The cattle, clptred'hy M. 2. Ir. :1. Costa hahelheaoplayed an
inportant part in the hearings and especially in writing the final report,
thoroughly esnninnd the health issue "particularly with respect to the

inportance of statistics, the nature of sciatifiac'wvihnnn, and the

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242

balance of expert teatinony."_ The coeaittee concluded: "There appeara

to he decreaaing reaaon to conclude that poaaibla alternative explana-
tiona could account for a eubetantial_portion of the relationehip between
cigarette lacking and diaeaee." 4‘ ' - . .

The coalittea. in effect accepted the reaaoning and concern ahown ‘“
in Health linietar Munrofa openin;,preaentation. In explaining the baaia
for actioa,,the coe-ittea ineightfully examined the tobacco growara'
and aeootacturere' poaitioa with exceptional candor. They noted:

It would aeea unrealiatic to expect tobacco prowara .34

Iaaufacturara to acknowledge the dangara of aaokin3., If

they did, the inconeiatanciaa between auch an acknowledged

belief and their behaviour would lake it i-poaaible for

'eeny of thee to continue producing tobacco or cigarettaa.

But it ia i-portant, in recognizing the poaition that aunt

,be taken by tobacco growera and Ianufacturere. to aaaert

that it ia no longer in the public interest to prolong

the debate about whether cigarette aaoking 1a.a health

hazard. Tho nany potential or current aaokara are liable

to he.aialad or given talae hope by ouch debate. ‘5 .

Alaoat the exact eaee atxuaeat varbatha hee been need in the.Uhited
8tataa.bp thoae who wiah to act to reduce aeokin. without worryins_about
the eaeatioa of caueality, ‘ . . 4‘

the coe-ittea'e report wee a Ianitaeto for atrona action by the
Canadian_governlent.aieilaa in impact to the Surgeon General'a report
in the Uhitedetatea and The loyal College of Phyaiciana and Surgeon'a
report in Great.Britain. The Canadian report ia a paragon of clear

teeaonine and broad coneideretion of a praeeina-problee. The report

 

 

Qbaerved:. .
Qgg_canm 11c ”El“: thatm Mb of the evigggge ,
‘gyernnenta and hauthoritieh we a “continuing
;a aggggibilitzt '“ . Z

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cigarette aeo Tin§_r§¥_Canadiana,

(h) Encour e whereve oi e, eae Mza‘ggg n13

o_aeo in; for t_Ee-Le o cann____o__t ato __p_.

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243

Eleewhere in the report, the econonic difficultiee involved in the
centrowerey are noted and the cofiittee concluded that "if it were not
for the econonic coqlexitiee of the problea, the evidence would have
been acted upon eech eooner than it wee.” 47 ‘Thie ie quite a candid
atat-efi for a gowereent report and ie typical of the ‘ineight and aenai-
tivity with which the Canadian report wee written. The coeeittee note
e-pheticelly etate’d:

here can he no queatioe that if cigarettee we're a food

or drug or being newly nerketed, their aale would have

to be prohibited or etrongly regulated on the heaia of 2‘

evidence now available, the known conatituente of the

note and the expreee put-pone for which they are eold.“

The emittee noted, however, that cigarettee cannot be banned
todey without I leee beerdone euhetitnte 'hecenee cigerette elohing ia
tee-wideepreed and it the indie of ”en econonicelly infiortent industry
tree grower-through to retailer.” A9 turth‘ernore, tlfe co-ittee cited
ite owe feere of wideepreed illegal motncture and dietrihntion, ea
dell tee We hardehip for thoee diepleced By ”any "precipitant die-
eating“ of the induotry. - In addition, they noted that "any hope of
developing leee heeardoue producte by neene of gowcrnunt-induetry
cooperition would he loat.” SO

In'ictilg ‘to' reduce the cigerette ducking-hula prohloe, the
govern-eat had to flee two problena, protecting the public and protect-
nng the ‘hiteflete 'ot venou- beg-cote of the tcbeccc in’dha‘tr'y. It mi 2
cleer to ”to. co-tttee that "production. diotrihutidn 'and the ‘aale oi" '
cigarettee ehould no longer he coneidered in the a... light ae the pro—
duction,” attribution end eele of other producte." 51 Yet, the co-ittee
realised that ite recomended actione to reduce cigarette 'aalee would

affect! tobacco growere end othcre end thet ’prepnretione ehould be aide
to aaeiat thoee who have been harmed.

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26‘

The connittee carefully tackled the question that cigarettes should
be banned innsdiately, connenting:

It has 'been argued that 1: cigarette snaking 1. harmful,

all sales of the product should be banned and failing

this, that it would be constitutionally and legally

inproper to interfere with its pronotion. However,

con-on sense tells us that it would not be in the public

interest to prohibit cigarette sales. IE: cigarette

stands unique along health and social problens. There-

fore, society is justified in seeking unique saluting!

and in rejecting argunents based on technicalities.

The uniqueness arguneut (which is based upon econonic considerations and
the acceptance and prevalence of the habit) has also been used in the f
United States to legitinise govern-ant action which is controversial.‘
but its use in Canada has been based prinarily upon the awareness, not
clearly acknowledged and publicly stated in the U. 5., that govern-nut
responsibility lies both in protecting the public and in protecting
those who have been.naking their livings froe tobacco growing. Ianufac-
ture and sale. Perhaps the snails: sise oi the.Canadian scone-y allows
the federal govern-est to sure easily calculate and weigh the possible
consequences of its ectious. The-governeent‘s'ewereness includes the
recognition that there'are‘no siaple solutions to this sultidinensional
problen. 1 ' ' ' ‘ ' '

The connittee openly espoused the view that voluntary actions to
reduce the seeking-health probien.are preferable to govern-ant regula-
tion. Yet, even in suggesting voluntary cooperation and holding out the
possibility of govern-ent‘nitigation'of the econonic hardships'caused by
its actions, the connittee clearly lappedlont various tactics to obtain
a reduction in cigarette sucking.

the foeiittse's'recon-endations take up 21 pages of the SS-page

report and are too extensive to sunaarise accurately. 'The sensitivity

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245

and breadth of the collittee'e ceneideratione end the elesence and

brevity of their written report hee added coneiderable eeight to their
recon-endatione and enhanced greatly the eophietication of the govern-
nent'e underetanding of the role and tectice they any uee in dealing

vith the problea. The connittee took advantage of the experiencea of

aeny other countriee in era-iningfend nuggeetin; Canadian atratagy.‘ In
fact, the coeeittee heard Dr. Daniel Horn. Director of the Nationel
Clearinghouee for Seokin; end Health. who teetified on the 0.8. progrea.53
Certain recon-endatione have been hiéhiighted b; the colldttee and they

are reproduced below an evidence of the pragnetiae of the propoeed progre-

.9.

and the breadth of the coe-ittee' e conaideratione.

Iecoanendetione: . . 9r
At Edi-mneties the proention'ot cigarette eelee .

Your Con-ittee recon-nude thatc cigerette advertieigi,and_ all
25.59.: rte-Lion... of gum“. __Hh... b0 321229.221. afio

Your Coeeittee recon-nude thet [free] diatrihutien [or f .
ciearettee] be prohibited, uhether by cigerette eanufacturere,
treneportation coepaniee, hoepitai auxiliariee and othere.

Your Coalittee recon-eede that leeieletioe be enacted to
prohibit en inoreeae above current levele of the aaounte
epent on cigarette advertiein. in any aediun or all eedia
eoehieed. . = . , .

Your Coeeittee aieo recoeeende that legialetion be enacted.
to per-it the pronotion of hrged identification only in any
reeeinies advertiein¢.. ‘ 1 .

tout Ceeeittee recon-ende that eny advertieing or pronotional
eateriale, reaeining after one year be required to carry the
eeee warning ae that claimed for me on cigerette peckeeee
eed cartene and cigarette vending eeohiaee, .

I. Increeein; fiducetionel Bfforte to Diecourage Cigarette Saokin;

Your Coalittee recon-nude the continuation and expaneion of
eniating progreee in order that Cenadiene eight be reeinded
of the dangere and aeeiated in their etiorta to avoid or
diecontinue necking or to anoke in leee haeardoue ueya.

 

 

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246

Your Oomittee recoinends that increased efforts be directed
toward the production and shoving of imaginative television
proeos and files in general.

Your Co-ittee taco-ends that arrangesents be nade through
the Canadian Radio—Television Co-sission for increased use
of sucking and health co-ercials on television and radio as
conpulsory prise-tine public service announce-nuts.

Your Conittee reco-ends that increased attention be given
to surveys of public knowledge, opinion and other ensures
of the effectiveness of sucking and health progress.

Coordinating co-ittees or councils are required at national.
provincial and local levels and increased efforts should be
nade to correct deficiencies in these regards.

Less Hazardous Sucking

Your Oo-ittee reco-ends that, within two years, Canadian
cigarette eanufacturers discontinue the production of cigar-
ettes exceeding specified sari-use of tar and nicotine content.

Your Co-ittee reco-ends that the Depart-ant of National
Health and Welfare continue to publish current tables of the
tar and nicotine levels of the sacks of cigarettes sold in
Canada.

Your 00-ittee reco-ende that all cigarette pachagss and
cartons, cigarette advertising and proeotional eaterisls and
cigarette vending machines be required to carry government
authorised statelents of tar and nicotine levels.

Your Co-ittee reco-ende the visa pronotion- of eeeeures te
reduce the intake of cigarette seeks constituents, gases as .
sell as tar and nicotine, by continuing cigsrette seekers.

Your Co-ittee reco-ende that research into less hassrdees
products and ways to snobs be increased and that the Depart-snt
of National Health and Welfare and the Dapartnsnt of Agricul-
ture stinulate such research vithin goveruent as wall as by
cigerette eanefecturers eed diversities;

Hiscellaneoee

Your Ce-ittee reco—esde increased esperientatiee is-pre-
vision of such screening services and the early adoption into
general nedical and public health practice of these same-
that are effective and efficient.

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247

Your Cdttae wishes to comend teachers, nurses, physicians.
lid others such as the Canadian Home and School and Parent
Teacher Federation for their continuing endeavour to maintain
nd encourage the important exemplar role.

Your Comittee recommends that. out of consideration for the

-Jerity of Canadians who do not smoke. a gradually increasing ..
nusber of no smoking areas or sections be provided in places

or facilities used by the general public.

Your m-ittee recommends that hospitals, health departments

and other health services and facilities consider the

feasibility of discontinuing cigarette sales because of their
inconsistency with health objectives and because of approval

of cigarette smoking which is implied by their continuation.

Your Co-ittee recomsnds that cigarette vending machines be
placed only where they can be under continuing observation by
responsible persons. and that prominent display of cigarettes
be discouraged.

3. Assistance to Tobacco Growers and Workers in the Tobacco 4""
Industry

Your cuttee recommends that the departments of Regional
Economic Expansion. Agriculture. Manpower and Immigration,
Industry. Trade and Comerce, and National Health and Welfare
co-ordinate their efforts to assist the tobacco growers and
workers in the tobacco industry to adjust to the major changes
which will eventually develop.

1'. Fires Caused by Smoking
Your Co-ittae recouaends that the National Research Council
ndertake studies in cooperation with tobacco companies to
develop standards for cigarettes with respect to their "fuse"
effects (this characteristic causes cigarettes to ignite
combustable materials with which they come in contact.) It
further recs-ends that these standards be the basis for
subsequut legislation.

6. Finally. the Comittee recommends that all levels of govern-
mnts be urged to implement the recommendations contained
this report on matters falling within their jurisdiction.

legsrdlees of the breadth. clarity. eloquence and sophistication of

the co-ittee's report. no immediate actions by the Canadian government
against cigarette smoking were forthcoming. The recommendations were
taken mder consideration and study to await a politically opportune

sonar. This pause lasted for over a year.

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248

In May, 1971, a. gout-cut of Irma Colo-Ml Itoppod into tho
uproot hpouo ood honed all tobacco and liquor odwortiuuoto nurt-
m men-bu, 1911. 55 In addition, the provinciol gov-mun: conoidorod
0th.: “to! to toduco cigontto conomption. Publication co-in; fro-
outoido tho province which night condo cigorotto Marti-unto would
to mt“. =Bulth Mini-tor of tho provided Iolph' Loft-ark oxpruud

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tho hopo that othor prowtnooo would tollow hum con-bud inn-pic. a
In J... 1971, ch: foal-o1 sour-out introducod for reaching ‘ ’

motion which had in: wot-bod ow “to: tho rolo“. of tho M'
“an nport. “rho hill ulld for o mun in on all for-- of
own advertising “ginning My 1.1972. 11.5 lmblotion, '
alas-1y hood on u. manned-u of tho nom’at Con-out cd-ittu,
oloo mud tho goal.” to on ma: at ur and nicotlno
contont and outbound a W out-‘- to macro that tho standard.
wot. mt. tho hill nquind the amt. unuuoturcro liot tor and
nicotinl contont. on chute: W and hem tho Itotount:
”Hot-hing: Dug-r to hoolth he” with- mt notod, ovoid inhaling. "
Cigarotto- Iho would kw! to be urhd with o "circu-forontiol ring" to
warn that. cu-rcttu -~hd toy-ad thiI-rt nit sicko attaining high
connotation a tu- and nicotiao. with tho W’ of our bru‘poud
Inuktitut, Con-do our havo‘onhctod tho’ loot for mchihg control: we:
canon“ of any coo-tum. minus-Lot cu’pmum 01111101111
could. bring o Illi- paucity of'o $100,000 fin. or five not. in jail
if the bill in mood. lots, tho'pouiblo' Cinnamon of tho“ honor“
in uduiu- Cigarotto mth*m‘—tortolné ’
D. lob-tn motion

. no tobacco hdutry an n m “maul-Id" by gunmauo’pg.
Thoy contend“ that tho ban would ruult in hordohipo to my pooplo in

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269

tho marketing fiold in Canada. would provont the introduction of now
branda and oorioualy rootrict conpotition anon; nanufacturoro. Munro
auggoatod that tho ban on cigaretto advortiaing would "end all induce-
aont to aloha." 5? '

In Sopto-bor, 1971, tho Canadian Tobacco Manufacturcra Council
roprooonting tho induotry announcod that thoy would ond cigarotto advor-
tiain. voluntarily on radio and tcloviaion January 1, 1972. 57 In wiow
of tho oncortaintioo croatod by_tho gowornnont'a introduction of Bill
c-268 to ban all cigarotto pronotion tho tobacco induotry adoptod a
oorioa of noaauroa to curtail cigarotto adwortiaing. Tho potontiol
innoct of thia logialation throatonod tho tobacco induotry and woro
iaportantly a nunbor of rolatod induotrioa. Pard'oboorwod at a nowa
conforonco_at which ho announcod tho induotry actiono:_

Hoot diatrooain. ia that ainco Juno 10th [whon tho bill

waa introducod] thia induotry hao boon in a tut-oil aa

a rooult of Bill C-ZAB. Manufacturora aro caught in

tho middle of tho bind. Bocauao tho Miniator hao not

clarifiod inportant propooala thc nanufacturcra havo

boon inportuncd by thoir own narkoting pcoplc, by

advertioing aooncioo, by nodia and by cultural and

aporting organizationa to gall than what wo would bo
planning to do for 1972. 5

Ho woicod apocific concorn about a) tho futuro of tho outdoor adwortioina
induotry; b) tho futuro ofCanadianiconaunor nogaainoa; and c) tho futuro
of tho tobacco induotry'a aaaociation with and ogonoorahip of aany cul-
turo1_and oporting owonto, all of which Pard'notod tho gowornlont'a'
propoaod logiolation placod in joopardy,,‘ _ '

rho four Iajor Canadian tobacco Ionufacturora roapondcd to thia
uncortainty_b1 rowiaing.tho induotry'a oaiatin; voluntary cigarotto_
advortiain. coda. Yot, noithor tho adwoftiaing induotry nor tho tobacco

growora woro conaultod in tho dmlomt of tho rowiaod codo. Paro’

u. Lin-‘3

 

 

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250

noted that the industry had considered and rejected orchestrating "a
concerted effort" by all eleeents of the industry and related industries,
to see if they could convince the govern-ant that the interests of the
country, the govern-set, and the industry would not be well served if
the goverment conducted a very wide-spread, well-directed lobby against
the bill.- Against the opposition of sons tobacco related groups the
industry decided against a unified effort.

The industry's revisions of the advertising code were seen by Par‘
as a "logical step to provide 1972 guidelines for our "resting divi-
sions, our agencies and the advertising udia." he continued that "we
have attempted to answer to the intent of 3111 c-us without placing
certain segnsnts of the business, cmications and agricultural '
Mtie’s in jeopardy." He also clearly noted in the conclusion of
his announce-set that ”the revised code brings the Canadian industry '
into line with the situation existing in the United Kingdon and the
United states.” tard’ explained that cigsrette advertising was not being
banned fro. the printed Iedie because only 1" end radio cigarette adver-
tising are "perceived as being lost offensive." Yet. the industry's '
actions go beyond voluntary or legislative actions taken in the United
ltate‘s'er Britain. The Canadian code establishes a precedent by placing
a ceiling on cigarette advertising in other sedia based upon 1971 expendi-
tures.

Another new eleeent in the industry's voluntary egreuent is probably
indicative of the direction in which governesntel regulation is headed
in the U. s. and Great Britain as well as in Canada. The industry set
limitations to becoae effective January 1, 1972 on the average tar and

nicotine content of cigarette stoke not to exceed 22 eilligreee of tar

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251
nd 1.6 milligrene of nicotine per cigarette. 59 Thue, Cenede which
bed trailed behind the United Stetee end Greet Britein hee et leeet
mterily. end even without legieletiwe eotion. leep-frogged beyond
thee heeed eleoet entirely on the exteneiwe heeringe end report of the
Cm oouittee.

me propoeed government bill would heve required e ceution etete-
unt reedinfl "waning! denser to heelth increeeee with enount eeoked.
evoid inhelinp" " The induotry firet egreed to volunterily print thet
”exoeeeive cigeret making eey be heeerdoue to your heelth,” but in
oueultetion with end with the egreenent a: the Deperthent of Netionel
Beelth ad Weltere the wording wee chased to: "Herning: The Deperteent
of letionel Beelth end Heliere edvieee thet denger to heelth increeeee
with count eeoked.“

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terther thn other countriee where inforeetion, in'cidentelly. ie e greet
deel are edvmoed in thie eree of the noting ad heelth controverey
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tea-ad the-elvee to the govern-ant and. thet hopefully. the deter-
eent of use Bill. pethepe in indefinite terfi, eight eneue.” But he

edded ”thet would be e hope tether thn en eepeotetion.”

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252

Footnotes - Chapter V111

Canada, Depart-ant of national Health and welfare, The Canadian
gaggig‘ and Health Progr : ALCase History (Ottawa, 1967), p. 1.

 

Ibid., p. 3. Also see A.J. Phillips and Michael H. Palko, "The
Canadian Saoking and Health Prograala," Proceedings_ of the Ninth
International Cancer Congress, Vol. X, ed. P.J. C. Harris (Berlin:
Springer-Verlag, 1967), p. 158.

 

Canada, Depart-ant of national Health and welfare, Report 22 Ci a-

rette Smoking_and Health, a report presented to the Health, Welfare
and Social Affairs Coaaittee of the House of Cannons, Deceaher 19,

1968, p. 5. CH1aeographed.)

 

thia.
Ibid., p. 6.

Canada, Depart-ant of Rational Health and Welfare, Hews Helen us
luaber 1971-167: Munro Announces Budget Increase for Smokingrand
Health Progrn ,Septenber 22,1971. Total smoking and health expen-
ditures have increased froa $126 thousand in fiscal 1964-65 to $350
thousand in 1972-3. In an intetV1EV”V1th O. D. Lewis on Novenher 3,
1970, it was stated that the Prostaa in 1970 consisted of onlym

full tine staff aeabers plus aecretaries who work for the Depart-ant
of National Health and Welfare. 2

 

Canada, Depart-ant of National Health and welfare, The Canadian
Banking and Health Prograa . . . , p. 4. -

Ibid.

1

’ D
H ' I ‘1 5

Canada, Depart-eat of national Health and welfare, mtin3_ and
Health Reference Book jganadala(0ttaaa: Queen' s Printer and Con-
troller of Stationery, 196‘}.

Canada, Depart-ant of National Health and welfare, The Canadian
Saokin3_ and Health Proggsn . . . , p.  7.

Ibid., p. 16.

1

The til-wrecetVad a 1907 heading Award loainatiaa-in'the aniaatad
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18.

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24.

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253

Canada, Department of National Health and Welfare, Reggrt 9;; Ci a-

rette bolting and Health, p. 9.

Canada, Departoena of national Health and Welfare, The Canadian
mg; and lealth-Prograg ... . , p. 13.

Canada, Depart-ant of National health and Welfare, Report on_ Ci a-
rette mug; and Health, p. 7.

'Ceoada, Depath of lational Health ad Welfare, The Canadian

norm and Health Prolrao . . . , pp. 14-15.

Ibid., p. 9.

ID1__¢_1_ .

Canada, Depertoent of National Health and Welfare, News leleaee
labor 1968-_l___04, loweober 20,1968, p. 1.

Canada, Depart-ant of National Health and Welfare, llewa Ioleaee ‘

“er 1969-3Q, May 27, 1968, p. 2. Chengea have reeulted in either

tearing or cigarette nanufacturing procedures. ‘l'heee teats are
preeently conducted by Dr. HJ. Waterloo, Heterloo, Ontario and are
eqportod by the Depart-ant of National health and Welfare.

Cuada, Depart-ant of National Health ad Welfare, Iowa Deleaee
Her 1970-13: ‘rar and Nicotine Levele g; Ceaadig Cigarettee Drop,

 

July 21, 1970.

Canada. Depart-ant of National Health and welfare, lave leleaee

“or 1971-ll, February 2, 1971.

Act to Reatrain the Use of Tobacco, Bill C-32, 2nd Seeaion, 27th
Parlialeot, 16 lliaabeth— II (1967).

Cnada, Debatee (Co-en), V (1907-8), p. 9021.. See Canada, An

 

Bill C-15‘ _A_n_ Ac_t_ _t_o Aoend the Food andDru Drua‘ Ag; wae given ite first
reading Sept-Tobe? 29,1967.

1.3. llallory eo-ented that in Caada, legialative co-itteea are
ueeful in conaidering broad policy queatione with a View to legia-
lation and inveatigatioo of particular eperationa of public policy.
The llouoe of Oman co-ittee heeringa on cigarette noting were of
the firet variety noted by Iallory. he wrote.

lhat ia really inn-teat to to allow intereeted partiee their
opportunitiee to preeent their caeea and to eoefront the public
with the conoidered bet often conflicting View .of the experte. ‘
l! the object of inquiry io legialation, then ouch can be gained
by placing the inquiry in the handa of experienced legialatora.

w 1“ .u "-— ‘-'-—' ——'

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254

J.l. Hallory, "The Uses of Legislative Committees," Journal of
Canadian Public Administration, VI (March, 1963), pp. 1-15.

Note: These bills were very similar to bills previously introduced
and already discussed. Three of these bills were introduced by H.P.
Barry Mather. Bill C-45 "is to protect the consumer or purchaser

of tobacco products from being deceived or mislead as to their
character, toxicity or safety and to restrain the use and consumption
of tobacco in Canada. It will give the Governor in Council power to
regulate the advertising of tobacco products and it is also intended
as a basis for the compulsory publicizing of the ingredients in
tobacco products." Bill C-39 enables the Canadian Radio and Tele-
vision Commission to enact regulations controlling or prohibiting
cigarette advertising. Bill C-53 would extend to tobacco products
the protection of the Food and Drugs §g£_which protects the consumer
against inter alia fradulent advertising and the selling of food,
drugs, cosmetics and devices. M.P. Yanakis introduced two bills.
Bill C-134 would force cigarette manufacturers to indicate on their
packaging that their products constitute a serious health hazard.
Bill C-137 would amend the Broadcasting Act to prohibit cigarette
advertising. M.P. Howe introduced Bill C-167 which seeks to give
the Governor in Council power to set the maximum amount of tar or
nicotine a particular cigarette may contain legally. Such action,
he noted, would force the manufacturer to produce a "safe" cigarette.
Be also commented that his bill was in line with the thinking of

the Department of Health and welfare judging by remarks made to the
Standing Committee on Health and welfare on June 21, 1966 by Dr. J.N.
Crewford, Deputy Minister of the Department. He said that "we are
so concerned about the impact of cigarette smoking in the health of
the population that we would be prepared to do almost anything to
assist in the elimination of this problem." See Canada, Standing
Committee on Health welfare and Social Affairs, Minutes 2; Proceed-
ings and Evidence (Commons), No. 10 (January 16, 1969), p. 1754.

 

 

 

Canada, Department of National Health and welfare, Report gg_Ciga-
rette Smoking and Health, p. 10.

 

Ibid.
Conversation with M.P. Barry Mather.

Canada, Department of National Health and welfare, Report on_Cigg-

rette Smoking and Health, p. 10. Note: The minister commented that
"illegal trafficking could be anticipated and all hape of making
cigarettes less hazardous would be lost." He continued that "the

use of the cigarette has become widely accepted in our culture and
public opinion could not be espected to tolerate a ban. Also, law-
tcspecting smokers who cannot stop smoking would be placed in a difficult
Position about the source of their cigarettes."

 

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255

John D. Morris, "Cigarette Ads Up in Publications," The New York
Times, January 19, 1972.

 

Canada, Department of National Health and welfare, Report on_Ciga-
rette Smoking gg§_Health, p. 16.

 

Ibid. The results of government testing is discussed at another
point in this study.

Ibid., p. 18.
Ibid.
Canada, Standing Committee on Health, welfare and Social Affairs,

Minutes 2! Proceedings and Evidence (Commons), No. 9 (December 19,
1968), p. 128.

 

Ibid., p. 129.

Canada, Report_ of the Stand_g§.Committee_ on Health, Welfare and
Social Affairs on Tobacco and Cigarette Smoking (Commons) (Ottawa:
QueenT a Printer* for Canada, 1969), p. 31.

 

 

canada, Standing Committee. on Health, welfare and Social Affairs,
Minutes . . . , (December 19, 1968), p. 128.

Canada, Department of National Health and welfare, Research and
Statistics Memo, June, 1969. Also see Canada, Department of National
Health and Welfare, News Release Number 1969-87: Health Minister.
Releases Estimates of Smoking Costs, June 18 ,.1969.

 

 

Canada, Department of National Health and Welfare, News geleaag Egghgg,
1969-87: Health Minister Releases Estimates 2; Smoking Costs, June
18,1969.

 

Canada, Department of National Health and welfare, Research . . . ,
June, 1969, p. 1.

Canada, Egpggg_g£_£hg.8tanding~ Committee gg_Health, welfare and Social
Affairs . . . , p. 7.

Ibid., p. 9.

Fl"!
re re
9' .

, p. 12.

9
o.

1., p. 9.

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256

'Ibid.

Ibid., p. 10. Earlier flunro had said: "The practice of smoking is

so ingrained that, even leaving aside the massive affront to individual
freedom, the outright ban of cigarettes would not be effective.
Furthermore, in regard to young people, we cannot encourage a 'forbidden
{Imit' syndrome." See Canada, Standing Committee on Health, welfare

and Social Affairs, Minutes . . . (December 19, 1968), p. 129.

 

Ibid., p. 30.
Ibid. My emphasis added.

Canada, Standing Committee on Health, Welfare and Social Affairs,
Minutes 2; Proceedings and Evidence (Commons), No. 1 (November 18 and

Canada, £52255“25_the Standing Committee 22 Health, Welfare and Social
Affairs . . . , p. 7.

At least two cigarette manufacturers, Imasco and Rothmsns ignored the
ban and sued the British Columbia government claiming the ban was not
within the powers of the provincial government. Television and radio
advertise-ants for liquor have long been banned in Canada.

ficaneda Preposes Total Cigaret-Ads Ban, Tar-Nicotine Limits, Inspection,
warnings," The Bell Street Journal, June 11, 1971.

See ”Canadians to End Ads for Tobacco," The New York Times, September
22. 1971.

s {t 5

Canadian Tobacco Hanufacturers' Council, Press Conference (Ottawa,
September 21, 1971).

Industry testing procedures differ from the method used by the govern-
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Chapter IX: Canadian Tobacco Indnetry'a Heaponae

A. Tor-e1 Preaentationa
m m
The Canadian_tobecco indnatry'a poaition in the cigarette anoking-
health controversy haa been explicated in too foreal preaentatioea. The
tirat entitled Soee Scienti£;§:Perapgctivea for Conaideration‘g£_$eoking
and Health waa preaented by an Ad Hoc coeldttee of the Canadian Tobacco
Indnatry to the Conference on Hooking and Health aponaored by the Depart-
neet of National Health and welfare in Hoveeber, 1963.

1 . ,3
_ The induatry gave three reaaona for ite preaentation: (l) the
Depart-out of National Health and welfare had ieeoed a foreal invitation;
'(2) the indnatry, ita producta and eany of ite actiona allegedly had been
eubjected to videapread eaotional_criticiee and (3) the induatry‘eaa
confident of ite record of integrity and reaponaibility achieved over the
yeare through the adoption of aonnd policiea in reapect to the probleea

of a-oking and health. The induatry con-ented:

In the face of the eeneational chargea againat ite

producta, the Canadian tobacco induatry haa tried

to Iaintain dignity and a aenae of proportion. The

indnatry hee merely pointed out to concerned groupa,

or in reaponae to inquiry, that the cherxea are In-

varranted by the acientific evidence available.

The ihdnatry‘e preaentation atteepted to define the ecientific weak-
neaaea of the can againat anokingg' to preaent certain baaic facta and
'onreaolyed queationa; and to nuke apecific auggeationa for needed reaearch.
‘Like the AIerican tobacco indnatry. the Canadian indnatry‘haa clailed

that it'haa long recognized ite reaponaibility and citea ea evidence ite

257

 

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311 sangblva as 39313 has (Jilidlanoqa91 e11 basingoosx gnoi and 31 39RJ

258

finding a! reaearch eieed at obtaining menace to vital meted
«nun They noted that "thia direct intereat of “are of the
m tobacco induetry .tedetea the current. .ti-aeehing publicity
afleute by a alder at yeare.” 2 In January. 1956. their _mtaentativee
.t with otflciala a! the Canadian nadicel Aeaocietiae and the. National
Once: Inatitnte at Canada to aeek advice ea to how the iadnetty could
cooperate in initiating or furthering eedicel reaearch:

In thee we. tha m:- of monieed anthoritiaa.

the tobacco indnatry dennatreted ite continuing deaira

to act in the public intareat. m auhaeqnent coerce

tolloved by :3. indoetty wee diet M by theae

authoritiee. -

letllaen 1954 nd 1963, a total of about $300,000 wee eade avail-
able by the Candi. eigeutte anniaethr‘lag ennui. to the Lug Cancer
haunt me eninietered by a. Iatinal «7...: banana. ‘ Tet.
ahile it accepted the advice at Cnadi- heelth inteteat stem that
additional taaeareh aaa needed, the amen-tune to «mun. ace-I, \
clneiona ranking in part flee the hee-ledge that hee been gained. free
thia additional reaearch.

The indnetry'e etateeeet critieiaad the caetieaing publicity giyn
to diacueeion of the 'aeutieg‘avideeee" againat tobacco. They claieed
that "the fact ia‘ that the 'aaueting evidaeoe' eoeaiate at repetition at
the aaee W taatetee by «an.» mu. .m. 'avideece' yea .d
tenine.‘ inconclhai've no ntter'hev ef-tee it ie repeated and netated." 5
Thu e'aee' argument hee been muted attae‘by indutry apohe—e _in the!
Bnitad Statee.I The Cnadian indnatry argued that anti-enhiag' .thIeieete
are creating the iapreaaion that the publnrof lug enoee .d heart ,
diaaaee eieply would dieappeer “u gum atopped leaking. » Alena: .
nnthing the vorda'naed by their herlcan count-mun. Canaan tahacca

I. ' -.
‘ I I r l 4! T

 

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0393):: ”Libsnsj .ezzsqnejnuoo annlzomk Itsd: yd bseu throw 9A3

259

eanufactnrere continued that "an evangeliatic attitude touard necking ia
antagonietic to an ieportent need of our tieee- the fullcat poaaible
appreciation on the part of our citirana of the eethoda, povera and
lieitationt of acience." 6 Several of the anggected quaationa raiaed by
the induatry are indicative of tobacco induetry etiorta in all countriea
to each alternative erplanationa of lung cancer and other diaeaeea which
aoeetieea afflict cigarette eaohera:

' Tb vhat extent are genetic, eeotional, horeonal

and other internal factora involved in the ana-

' ceptibility of an individual to lung cancer, heart

diaeaaa and other aileente? la there a type of

‘euaceptible' individual that can be deterained

an that he lay avoid exceaa riaka? Ia there a

'dietinctiva eeokera' peraonality? Ia there any

correapondence between thia type of personality ‘

and that of the typically high riak patient? Do

body typea appear to have an effect on auecepti-

Ability»to lung cancer or to cardiovaecular diaeaee?7
Further-ore, they-nuggeat that the difference in lung i£n¢.r‘i.£.. between
provincee' ahould he studied end reaaonable explanationa sought in‘ m... a.
air pollutahta, induotry, population daneity, ethnic coupoaition; clieete
.1! mm; um".- Lung cancer eortality in c’ic‘u.’ of like: .156" End '
varying aiae in Canada ahould‘be etudied; air aaeplea ahould be analyzed
no me with“ can“. in the: United sum.

'TIe tobacco induotry'a aecond foriel preaentation cane .053 five and
oeerhalf'yeare later in 1969 before the Houae of Con-one Standing Coeeittee
on Iaalthg:leifere-eed Social Affaira and one eora‘than twice ea long aa
their 1953'preeentatien. Thh report entitled ALCanadian Tobacco Induatgz
Preaen atioe 931 1103331 3951332 vac divided‘into'five aectionet (l) ‘a
paeittae‘ateteeent ea tle'heelth éontroveray and the legialative iaauea;
(2)915‘9 acieititio parapectivee on ranking and health queationa; (Sl‘pro-
pend enteietineian unflattering, advertieing and urinating: (4i tobacco

induotry eupport of health reaearch and (5) facta about the Canadian

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260

tohsoco eooeoey. The report wee e unified response by the industry to
the unexpectedly hersh testiloly end proposels suggested by the Minister
of Netienel leelth end Heliere, which we heve elreedy discussed.

Peal Yer‘; president of leeeco, Ltd., end chairien of the Ad Boo
Mines of the Cenedien robecco Industry (precursor of the present
Cenedien ‘l'ohecco Henefecturers Council), represented the industry before
the Co-sns co-ittse. His ergu-sets psrellelsd, in eeny respects, the
1963 presentstion.‘ He reitersted thet "it is ectuelly e disservice to
those Iillioes who enjoy snaking to be constently esssulted with sons of
the estrus eed unsubstantiated propegends thet is spreed sheet the soo-

uuusvu. of snohing.” 3

Is obliquely ohrsetened thet'public oesri‘ ,
doses Zine Penis-sot would Reuben-"if e'geeereeeet wee of such e tied
thet they "secured the responsibility for ladies this ometry is seys
till: they esteblish precedelts for which control would be el-ost
iepos's'iblu" 9 mn «my explicit there is elwsys the ieplicit threst
or cigsrette snuggling, eed ergesised crime if the public is deprived of
whet it vents. Ihe'preselt «um siloe'tiu is suggested es e Iodel
of whet fight he expected if cigerettes were i“. illegel, viciously
texed, or their present contests redioelty eltered. In fect, snuggling
between low ts: regions set high tee regions is elreedy e problea
espeoielly in'the UnitedIStetesa: H -' ' - If "

‘ M‘M'Mfll erg-est seed is'csesde es well'es‘ie-the'nsitsd
item lee been the-industry‘s voluntery edoption of e Cigsrette Adver-
tising'Cods is 'ehioh "eerteis seetteists erswoluterily observed,”
«idesos u ths‘ethicel restrsiet which thunduetry hee nosed upon
itself; 1'0 Psr‘ergoed thet the industry hes flieteieed thet.="cige'rette

.nehing is -ee edslt oesose end. thet the decision or sheihsr or sot to

 

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261

aloha ahould be nade by each adult individual freely and without undue

governeental or other interference." ll

Teri alao cited the econonic coata involved in poeaible govern-ent

action in tarna of- the umber of peraona affected "(which we have already

u!

dealt with in our diacueeion of the econonic iaportance of tobacco):

In nenufecturing and leaf there would be approxinately
10,000 people. In the leaf growing there would be
enother 5,000 faniliea.’ ' In the distribution of tobacco
'there would be approximately 2,000 wholeaelera and .
about 80,000 to 100,000 retailera whoae livelihood fi ,
dependa in xhole or in part upon the aele of tobacco ' ‘
producte.“ - ‘- " * u

0i conrae, inplicit in thia argueent ie the threat of. political retalia-

hr" ‘-
,J

tion and here againat any political party or govern-ant which injurea the

livelihooda of an nany. Par‘ alao reiterated the repeatedly ueed arguent
that tobacco providee an "inortant aource of tax revenue for the federal

goveruent and the provincee.” 1'3

He carefully co-ented on the propoaale nede by the Depart-ant of

National Health and Welfare and concluded:
The Depart-ent'a aaeuptiona about noting do not
juttify regulatory propoeala ainad at the eventual ‘
elinination of cigarette enoking. The aubatance of
the propoeale under etudy involvea' ah unreaaonable,
nnneceaaary and undesirable intruaion of Governmnt
into the pereonal deeieiene ef citiafle whether an
conaunera, workera, or bueineaenen.

I s '7; 'Iv 3*.2.” II .h'

In addition, he aaid that "it in unreaeonabla that the tobacco induatry
i . y I i H

and ite cuetonera ahould he aingled out for unuaual or unique reatrainta,
regulatione or haraaenent. " 15 .
It ahould be apparent by now that tobacco induetry repreeentativaa

in both the United Statee and Canada often have need the an or vary

It

ainilar argunenta and evidence. An exanple ia the nee nede by Par‘ of

the June, 1968 aaeeaenent by the AIerican Medical Aaaociation Education

If,

 

3 _..... be-.-._.‘.._. -4 ..j

F

163

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262

ad leeearch l'oundation which hae been well publiciaed ad quoted by

the tobacco induetry in the United Statee:

1

e e e the 'N‘l“ "1.“. to eetabliehing w R134 .1
cauee ad effect relationehip between tahacca eee and
health are far are couple: tha had been euppoeed.

The producte of tobacco coneunption are eeny ad varied.
law techniquee not be developed for their aeparetion.

* for their adninietration ad for their etudy. In
addition. the effecte oi eeoking nuet be dietinguiehed
iron the effecte of the ever increaeing environmental
pollution attributable to autonotive enginee ad in-
chtetrial waetee. It ie evident that we have a long
road to travel ad that thie will be done elowly. Hay
yeare nay be required to gather eufficient eeperieental
{acte adlgata to clear what ie at beat a nuddied
picture.

The oo-ate that ”the tobacco induetry hee diligently eought enewere to
the unreeolved health queetione" ad that ”the induetry for yeare had
believed that ecientific reaearch ie the beat way to reeolve the problea,"
alao have hea ueed tron-nationally. '

Par‘, in hie 1969 teetinony. noted that the induetry had grated
ever $300,000 in (node to the National Cancer lnetitute of Caada ad
thet ”other grate to independent ecientiete have been eade by individual
coaaiee.” U In addition. the Caedia induetry agreed in 1969 to
contribute $300,000 to McGill Univereity'e Interdieciplinery Iaepiratory
leeearch Laboratory. a. the accoaaying Figure l’findicatee. the aeoat
oi induetry reaearch grate hee varied .eharply end appaare generally to
parallel public intereet ad publicity Bea-1"» the eating-health
controverey.

‘rebecoe indatry’ repreeentativee aleo‘ have eeufltt tl eephaeiae
the “excellent coauication.” ecientitic liaieon ad cooperation between
induotry-eupported reaearch catere in different countriee."la Given

thie cooperation ad infornational exchage within the ecientific

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263

Figaro 1

National Cancar Instituta of Canada ‘

Canadian Tobacco Indnatry Cranta

to SuiPOtt

.36.!

Rnaaarch Inlated to Lung C

Km)

65

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55

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266

co-onity in difforont coutrioo (oooocinlly in thooo contrioo in which
tho noting and hoolth cootrovoroy hon boon porooivod u on ioportont
rmnrtlrprobl.) thot hon boon hunt“ by induotry inning ond in'
any coooo by emu-notional corporoto intorrolotioobhioo, noourononto
of corpora“, aovornootol ond intoroot gro. offorto in tanking and
hnlth roooorch oro niolooding ond confusing. Dollar ootintoo of .
rooooroh oxponditoroo oro otod orndoly to indicoto conitnnt ond octioo.
mo, oto bro precinly oynbolic rationalization-r W, notional: -
offortn, or oinglo grog offortn oro opnrlom. Ho oro in foot dooling
with international offort, roooorch~ond unit-out to oolvo a crouc-
notio-l probloo. Roooorcb offorto by Philip Motrin Inc., in tho- Unitod
ltotoo aro diroctly ad inoopooobly rolatod to unit oohoidiory Bonooo —
‘dflo‘goofionodounitod. Efforts inononotionorbyonooonpony
cunt 51M ond out not Coningful in tho contort of nultiplo
corporoto htorrolotiooohipo, no induotry cooperation. '. Tho offorto of
hitioh outdoors I'm Lioitod. Inoooo 1.1-1m ond Bro-n ondvliilllooooo
rob-eon Corporation fiich oro ollport of th on. intonotiotol ooctoro-
tion connot ho noonrod or ovolnotod oingly or avidod up on tho'hooio'
of notion-l homiorioo. To rut-rot», pro-out Wot ixdootry.
diort oro thoo highly into-coco ond nioloodinc and do littlo toottnolly
ooloo tho problon. ..
B. Inhotq hopoooo _t_g Giggtto Advortioio‘

flhilo no '11]. not toooidor in dopth tho tobocco. indootry'o roopouo
to criticion of ito nfiortioing policioo voiced by tho Conodion govorn-
nont out hoolth intoroot groqo, ononi ”into obold ho notod. (1)
Tho Con-din toll-too induotry boo boon m in ito: odvortioing
oxponditoroo fiicb woro olhot -50 pot cont looo porcupito thou in tho

1’;
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265

muted Statoo: (2) Totel cigarette advertising hee declined froe 316.875
Iillion in 1962 to an estimated 516.592 eillion in 1968. unlike cigerette
advertising in tho United States whoro there heve been aharp increeeee
during the cane period of tiee. (If eoeeured in otablo dollara, thia
decreeeo would be even aharpor.) (3) The tobecco induotry, like in tho
United Statoo. hee, argued that "cigerette edvortieing ie designed end
intended to proeoto‘brgggg_of cigerette. for proaont ooctoro. not cooking
per eo or incroeeed cooking." 19 They continue that "prohibiting ciger-
ette brood edvertieing could not necoeoerily be expected to reduce
cigerette coneueption." 20 The induotry hee ueed cooperative date froe
oi: countrioo which already had put eoee type of reetrictione on cigarette
advertieing. note froettho ynitod Kingdoe. Den-ork. Iceland. the Nether-
lande, New Zealend and Italy ahowod that, in oech, coneueption either
incroeeod er roleined eleoet level.

Prior to the United Statoe ben on cigarette tolovieion end redio
edwertieing. tho Cenedien induotry argued that edvortieing roetrictione
in Cenede would give an unfeir adventege to AIerican brende which would
continue to be eupported by Aeoricen televieion end print eedia advortie-

21

ing which reach Ceneda. Thie arguont waa e rationale for pootponing

Conadien action until eftor the United Stetoe had tekon etope to roetrict

cigerette advertiaing.
the induotry'e‘final ergueent preeonto a particularly rovoeling

ineight into the poeeible unintended outcoeoe of e cigerette edvortiaing

ben., The induotry noted:_ :‘,

, An edditionel effect of advortieing reetrictione would
be to hinder coepotition within the Cenedien induotry.
.It would be lore difficult to ewitch people froe en
exieting brend to a new brend for whatever roeeon. The
induotry would tend to becoee o cloeod end otetic eerket.

.—

 

 

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266

with competition ell but elininetod. New conpaniee
night be effectively excluded. The incentive for
product innovation would be virtually deetroyed. 22

Sane induotry opponente have eupported thie eaee arms-ant. They euggeet
that lieitod odvertieing eight epood induotry'e innovation (in developing
eefer cigerettee) and the public'e acceptance of any ouch change.

The Canadian tobacco induotry inetituted a Cigarotto Advertieing

1

Code in June, 1966, aevorel eonthe prior to the announce-cut of the

23

herican code. Under the Canadian code, cigarette advertieing euet

refrain froe eppeele to children and all cigarette advertieing eodele
not be at leaot 25 yeare old. Even eoro etriegent than the borican code,
no health claiea are allowed. Purthereore, aince 1965, cigarette tele-
vieion advertieing hao been roetricted to after 9:00 P. M. to ainieize
their appeal to children although they are carried on radio during the
daytieo. 2‘ An editorial in the Canadian Medical Aeeociation Journal
co-ontod on the code:

. . . ae long ae the tobacco induotry ie in a poaition

where, froe eheer econonic neceeeity, it cannot and

dare not tell the truth about ite principal product,

cigarettoe, all 'codoe' and eieilar conceuione are

eore window-dreeeing,23ble to deceive only thoeo who

wieh to be deceived. ' ‘ ' * . ' '

Yet, while taking theae ‘v‘oluntary ectiono, the tobacco induotry
vehenofitly'hae oppoeod goveruint intervention.‘ Paf‘ ‘etated:

" The museum ie may etaggored 'to than where ouch
a precedent could lead in govermont donination over

the righte of individueleend 28h. freedoee of legitid '
eete fareing and bueineeaoe.

Hhilo the govern-ant hee explained ite concern and involve-ont. in tor-e
of the unique problea that it not face, the induotry hao etteeptod to
broaden ite eupport by appealing to all thoeo who could poeeibly cone

under govern-ant regulation ae tobacco coqenioe have attenptod to do in

 

 

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267

the'Usited Itetes. In conneeting on the proposed enti-enohing legisle-
tion, Per‘ suggested:

All sre intended by ens neees or enether to restrict
verious elenents of e legitinete enterprise end its
nillione of custoners, or they ere intended to legis-
lete presuned solutions to problems thet ney not even
exist, or if they exist st ell, they ere problens not

now defined end not subject to being solved by lewe. 27

linelly, in coenenting leter on the connittee's finel reconnendetions,

Psr‘ steted in his own conpeny' s ennuel report:

I.

If these reconnendetions ere edopted, they will virtuslly
elfninete eoepetition froe the tobeoco industry. They
stteck the whole nerchendising end edvertising systen

end constitute en excessive intrusion of govern-est into

the personel decisions end ections of the Cenedien people. 28

I

Hhile gift coupons schenee end contests heve not eroused such contro-
versy in the United Stetes, they heve in Greet Britein end Cenede. In
both countries successful conpenies heve increesed their sheres of the
cigerette nerhet end reeped huge bonuses froe their gift coupon schenes

end contests. Both Inseco Ltd., in Cenede end nnperiel Tobecco in Greet

P t

Iritein heve been very successful in using these techniques to increese ‘

their reletive eerhet sheres. N. h. Wright, vice president of seles et

lesson end hedges consented thet “co-petition for e shere of the nsrket

is forcing cigerette esters to overspend on e purely econonic besis. " 29
Hecdoneld president D. M.. Stewert seid "it' s e defensive neesure with
us, " 30 while the Tobeccoh “porter quotes president Wilnot
rennyson es steting thet "the excess of ceeh pronotions by the industry
represents e highly inpolitic‘ situetion in view of the pending federel
legislstion enconpessing cigerette edvertising end esrheting. " 31
Under hersh criticise froe Consuner end Corporete Affeirs Minister

Ron testers, is well es froe John Innro, the industry volunterily egreed

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268

to end prnIetions, which Beeford hed celled "deploreble developnents,"

by July 1,1970. 32 IIIsco, which hed benefited1nost froI this type of

1

intensified cnIpetitien, wee willing to end proIotions, expecting to hold
its geins. The ensller cigerette Ienufecturers wished to end gift coupon
proIntions to forestell further nerket losses end prevent further provok-
ing possibly hersh govern-eat ection. ' l

The industry' s volunterye egreenent in Septenber, 1971, wee en effort

I

to forestell the coIplete edvertising ben proposed by the governnent.
under terns of the egreenent five Cenedien brends would heve to be elinin-

eted or reconstituted to linit their ter end nicotine contents below the
linits‘esteblished by the egreenent.’ Three of these breeds ere produced
by IIssco (two of which eredIenufectured under license froe AIericen
tohecco Isnufecturers). Per‘, Inesco president, suggested thet his coIpeny
would reduce the ter end nicotine contents of its three brends.

I

One diIension of the seeking-heelth controversy thet should be

eneIined further is the response of other releted econonic interest groups

1 i f
to govern-Int proposels for legisletive ection. AIong the first witnesses

st the l969 CoIIons heerings were the representetives of the Cenedien

hroedcesting CeIpeny (CBC). They reported thet their "policies governing

I 1

cigerette edvertising were intended to liedt such edvertising to brend

edvertising only, to prevent the use of 'ter end nicotine' stetistics in

§ ..
I l I 1 . E),

coIpsrieons end to ensure thet such edvertising is not designed to eppeel

to edolescents. " 33

i

In reletion to industry self-reguletion, Hr. OuiIst (CBC vice-cheirIen
. - l T , ‘ .. \
for progr-ing) reported:
,. 3 t ‘ i ‘ 'I .
Under the Breedcesting Act . . . there ere no specific
restrictions reieeieg tenths edvertieing of cigerettes.
Io Iy knowledge the only stenderds eppliceble to

1 _ r

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269

broedcest edvertising in Cenede ere those of the Canadian
Tobecco Industry's Advertising Code edopted in 1963 end the
Corporation's Connerciel Acceptance Stenderds. we heve
edopted ell the points contained in the Industry's code

es s good stetenent of how cigerette advertising should

be directed to the persuesion of smokers to chenge brands
end not Sgr the proselytixing of non-enokers end young

people.
Like their AIericen counterperts, individuel TV network represente-

tives heve ergued that to ban cigerette advertising fron s single Iediun
would elnost certeinly drive cigerette edvertisere to their conpetitors
either on conpeting stetione in the United Stetes or in newspepers or
billboerds. A Cenedien ben could not extend to AIericen stetione which
reech e substentiel Cenedien eudience or to AIericen periodicels which

continue to eccept cigerette edvertisenents.

In Hey, 1969, the CBC ennounced thet  it would helt ell cigerette
edvertising on its radio end television networks when current edvertising
contrects with the tobecco conpenies expired. The CBC president expleined
thet "we took ection on our own initietive rether then heve governIent

ection push us as reluctent dregone into it. " 35 The tobecco industry

. L

.-

end releted econonic interest groups heve wetched cere fully for signs of
forthconing governIent ection. In generel, industry's willingness to ect

volunterily in both the United Stetes end Cenede often hes been besed on
the perceived threet of governIent ection.
. t . .
In eddition to the testinony of the Cenedieu tobecco Ienufecturers,
~'- . - 3

the Conlons' coIIittee else heerd froe representetives of the hetionel

Aseocietion of Tobecco end Confectionery Uistributors of Cenede, Tobecco

I e

Ubrkers' Internetionel Union end verious tobecco grower groups theta

heve discussed elreedy. The testinony of the Tobecco workers' Inter-

fl

netionel Union was interesting in so fer es it Iey well heve opened e

a I

peth for governIent ection thet would be eccepteble to tobecco workers.

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270
lhis teetinony suggested a broad role for government in compensating those
tuned by governIent action:

The financial burden incurred by any kind of govern-

unt action met be borne evenly by all Canadians.

If government authorities decide to intervene to

restrict cigaret use. we feel they met assume full

responsibility for such legislation by taking neces-

sary steps to couponsate, not ”rely partially, but

in full the affected workers.

The Co-ons' co-ittee at least partially recognised this ergo-ant
and suggested in its report that "it is isporteat that plans he sale to
assist growers and workers affected by such alt-gas." magician by
the Cusdian governIent of the serious ecnosie repercussisss which lay
result free the inleIsntati- of its proposals and a oo-itImt-ts
aseliorate the social costs Isy substantially lessen the sppesitiu of
organised tobacco groups. The testiI-y If the Tehsees Horhers' Inter-
national Union say well be the har'eiager-ef spas negotiatiusdletwasn
labor ad governIent seeking te resolve the difficult situation in enrich
the tobacco workers Iay be placed. - .

Such usreness of the social costs of the problee as well as the
social benefits of gsvsuut actises as. better “loved iI Casds
than in the United States. Further resaneh isneeassary nonsense the
actual intensity of concern. Certainly. governut bondage .d legit-
lative debates in the hired Stetes-tcusdaeare nee ssffthx-te 2 h
clearly Isasuee or even indicate-the level If governIent m .d . =
the possibility of gsversnstta‘ctid ts .lieratsasfisfidedmecial seats
effecting, fer eesqls, tebdeesgsflessid yorker“. As we have seen the
tobacco industry hasbssn willing to ”lunarilyvaet ts Islierste the
governIental ad interest group pressures being placed span eh: rho . .
industry has sought to reduce its own ascertaisty.‘d enters a Iere.stahle,

predictable if less favorable business «|th for itself.

 

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271

C. Canada's Approach £2_Smoking and Health

Canadian officials cited that the basic difference between the
AIerican and Canadian response to the sIoking-health controversy is
cultural. Nevertheless, the cultural explanation is too vague, as we
have seen econonic and political differences also account for variations
in governIental approaches between countries. One Canadian official said,
"we realise that there is no percentage in doing it all at once- we don't
have an absolute as a reference, no overall principle is used. We use a
pregIatic approach. We look at the consequences and seek a solution. we
do not need absolute proof to act." 37 The Canadian governIent has care-
fully sought to uncover the social costs as well as the social benefits
of possible government actions. As a consequence, the necking-health
controversy in Canada has lacked a good deal of the abrasive, strident
conflict and blatant economic self-interest which has characterized the
controversy in the United States. In fact, the industry itself has
characterized its relationship with the governIent as "reasonably coopera-
tive." 38

The touchstone of Canadian governIent action appears to be "sensible
and gradual change." The absence of independent regulators such as the
FTC and the FCC in the united States has in a sense been a boon to pro-
ductive governIent and industry contact. It has eliIineted one threat to
the industry and facilitated a broad if eoIewhat belated consideration of
the probleI by Canada's central decision-Iaking body, parlisIent, whose
actions are not subject to judicial review and delay.

Canadian government is also highly sensitive to the disruptive
consequences of governIent action, the social costs as well as the social

benefits. What tobacco growers need, for exaIple, is not necessarily

 

 

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272

tobacco but incone and an income substitute may not be an insuperable
problem. A substitute for governmental tobacco tax revenues is probably
s.such more difficult political problem than politicians do not wish to
face. The Canadian governIent acts on the assumption that there is no use
in doing anything abruptly which will hurt people unnecessarily. Yet,
while the Canadian progresneey be seeped-ising on the speed of government
actions to reduce cigarette consumption, it hes not coIpreIised on its :'
ultimate goal: to reduce cigsrette consumption and, ultimately, to elimi-

nate the hazard to huIsn health that exists in the use of cigarettes.

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10.
11.
12.
13.
1..

15;

16.

273

Egotnotes - Chapter Ix

Ad Hoc ComIittee of the Canadian Tobecco Industry, Some Scientific
Perspectives for Consideration 2g.sIoking_and Health Questions:
{resentation to the Conference on Smokiggland Health of the Depart-
Ient of National Health and Welfare (Ottawa, November 25-26,1963),
p. 5. .

 

 

 

 

Ibid., p. 6.

Ibid.'

lb; ., p. 7.

Ibid.

Ibid., p. 53, “

we. ”9 5‘-56s

Canada, Standing Committee oanealth, Welfare and Social Affairs,
Minutes of Proceediggs and Evidence (Ce-Ions), No. 38 (June 5,1969),
p. 1542.- . .

Ibid.,, p. 1572. - Pare-else «as-sated: -"l'eat attapta by same Cened-
ian provinces and the United States ts eliminate alcohol by prohi-
bition measures demonstrated dramatically that such steps do not
deter people from fulfilling their desires. The prohibition exper-
ience showed that such bans can have serious and anti-social con-
sequences," p. 1668..

12§§,, p. 1648.

Ibid., p. 1589:

Ibid., p. 1574.

Ibid., p. 1589.

Ibid., p. 1581.

Ibid., p. 1589.

Ibid., p. 1586.

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.9

17.
18.

19.

20.

21.

22.

23.

2‘.

25.

26.

27.
28.

29.

30.

31.

32.

276

Ibid., p. 1588.
Ibid., p. 1680.
Smoking and Health: A_Presentation‘g£_the Canadian Tobacco Industry

1969, p. 81. This report is also in Canada, Standing Committee on
Health, Welfare and Social Affairs, Minutes ',' .7, (June 5, 1969).

 

 

Ibid.

Canadian brewers who are barred from advertising on Canadian TV and
radio advertise on American border stations.

Smoking_and Health ... . , p. 81.

 

For a comparison of the Canddien and American cigarette advertising
codes, see The Manitoba Education Research Council, A_Study of
Cigarette Advertising; A leport Submitted £g_the Department 2;
National Health and Welfare (Winnipeg, 1966), pp. 132-34. This
study is an excellent source of information on Canadian cigarette
advertising. "It is the purpose of this study to examine the
tobacco habit, with an eye to the psychological aspects of cigarette
smoking, and to describe the appeals and techniques that have been
employed by the cigarette advertiser in selling his product."

 

Canada, Standing CoIIittee on Health, Welfare and Social Affairs,
Minutel. s s , (9,“. 5, 1969), pps 1542-3e

 

"A Cigarette Advertising Code," The Canadian Medical Association
Journal, XCII (Jansury I6, 1965), pp. 134-5.

Cenede, Standing Committee on Health, Welfare and Social Affairs,
Minutes . . . , (June 5, l969), p. 154‘.

Ibid., p. 1540.

Imperial Tobacco of Canada, Limited, Annual Report 1969, p. 7.

 

”Mushrooming Give-Away Contests End July 1 in Canada," Tobacco
Reporter, XCVII (July, 1970), pp. 57-58.

"Government-Industry Agreement Will Bring End to Radio-TV Cigarette
Ads in Canada," Tobacco Reporter, XCVIII (October, 1971), pp. 49,
50, 52.

Ibid.

Tobacco Bepgrter, XCVII (July, 1970), pp. 57-58.

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275

Canada, Standing Committee on Health, Welfare and Social Affairs,
Minutes gngroceedinga and Evidence (Commons), No. 15 (February 6,
1969), p. 425.

 

Ibid., p. 524.

Canada, Debates (Commona) (May 12, 1969), p. 8613.

Canada, Standing Committee on Health, Welfare and Social Affairs,
Minutes 2! Proceeding; and Evidence (Commons), No. 42 (June 16,
1969). p. 1863.

Interview with 0.D. Lewis.

Letter from L.C. Laporte, July 22, 1971.

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Chapter E; Canadian Health Interest Groups and Smoking

A. Introduction
Health interest groups in Canada gradually have become aware of the
relationship between cigarette smoking and disease. This recognition has ,%
been followed by health interest group proposals for government and private . 1
action. Causality between interest group actions and proposals and govern-
asnt action is difficult to prove, nevertheless the support of health
interest groups has been an important element in spurring government ,
consideration of the problem and in rationalizing government action.
In the following chapter, we trace the process of awareness, recom-

Isndations and action through the written statements of four national
Canadian health interest groups: The Canadian Medical Association, The
Canadian Tuberculosis and Respiratory Disease Association, The Canadian
Cancer Society (National Cancer Institute of Canada) and the Canadian
Heart Association. While many other groups have also gone through the
process of increasing awareness and action, these groups have either
followed or paralleled health interest groups which have become acutely
filare of the problea and which have generally set the stage for other
group actions. ;,

..Deatb rates for lung diseases most strongly associated with the
inhalation of cigarette smoke have alarmingly increased in Canada. 2
Death rates per 100,000 population have increased for lung cancer from
13.8 in 1950 to 36.3 in 1967 for males and from 3.0 to 5.8 3 for mu...

The_rates for emphysema with and without chronic bronchitis have increased

276

 

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6Y3

277

for sales from 2.0 per 100,000 in 1950 to 13.9 in 19.66 and for feesles
free: .6 “.1950 u 2.0 in 1966. " .Theee um mm... have been
aoeqanied by and stinulated growing concern and action by Canadian health
interest groups.

. 'M Medical Asgociation .

The Canadian Hedieal Association (CHA) has been concerned with the
hesaade of cigarette smoking since 1959. 5 Their concern was related.
first to the increase in lung cancer, but, in 1960, concern also was
voiced.aheet a possible relationship heteeen teheeco seeking and breathi-
tie. bronchiectaeie. whys-seed coronary «seesaw In 1961. the CM
"expressed publicly for the first time its belief that a direct relation-
ship exists hem noting and lung most." In 1962, the CHA noted
that "the causal relationship between seeking, particularly cigarette
smoking, ad the alarming increase in censor of the lung is now accepted
in medical and scientific circles.“ They rec—ended that it is the duty
of the individual doctor and of departments of health and health educators
to educate the public to the besards of cigarette anohisg, . They suggested,
however.:that legislatiee efforts in the direction of prohibition should
not be considered. Instead, they argued that the public health problem
should be recognised and that public education should ”attempt to prevent
the acquisition of the habit by young people. . ,

the CIA through its Ce-ittee on Cancer seemed a eajor responsibi—
lity ?te stimulate. advise and assist in the institution of a broad program
of mm education on the problea of diaerette seeking ad lung cancer."
They.neted that "the chief means of prevention of lung-cancer and other
tobeeeewreleted-dieeese is preventive’edueeties." They also requested

that consideration be given to legislative measures to apply cautionary

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v1~vg a; amicacum avijainfegI n3 nsvlg 51 aujjsjoblafita 1573

278

labels to the packaged product. In an unprecedented move in March, 1963,

the President of the CMA, Dr. M. l. HacCharles called upon Canadian
physicians in an Open letter in‘ghg Canadian hedical Association Journal
to set an appropriate public example by discontinuing cigarette smoking,
or if unahle to do so, at least abstaining when in the exercise of pro-
fessional duties. In addition, he urged cooperation to support the
educational activities of other groups, especially the Canadian Cancer
Society. '

In their statement to the National Conference on Seeking and Health
in 1963, the CH3 proposed the following iiasures to reduce this puhlic
health prob-lent '

"file Canadian lfidical Association (a) bill carry 'out a
concerted progran of professional education for its
'memhers; (b) requests the Federal Government to provide
the stimulus for an all-important progran of public
education by publicly recognizing the relationship
between lung cancer and the smoking of cigarettes;

(c) requests the Department of National health and
thfare to nake educational eaterial available on .

the dangers to health of cigarette seeking, and to "
encourage sinilar activity at provincial and munici-

pal levels; (d) recommends that research on the nature
oi-tobacco habituation to he initiated; (e) taco-lends
that, as an interin step in the production of an
entirely safe cigarette, cigarettes of lower tar and
nicotine content he produced, and that the content of
these substances he described on each cigarette package;
(f) recommends that, in general, the content of advertis-
ing be altered to promote noderstion and to discourage '
the use of the product by children and young adults;

(g) recommends that certain provisions of the Tobacco
Restraint Act be enforced; (h) reconmends that veys

and means of encouraging the u’e of less-dangerous

for-s of tobacco be explored. ‘

an

The cat has conducted a professional education prograe and has had a

representative en the Department of National Health and Helfars' s Technical

.0 la

Advisory Cellittee en Imohing and lealth previously discussed.

1

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‘2

279

The CMA in its 1969 brief to the Standing Committee on Health,
welfare and Social Affairs said:

The traditional scientific discipline of medicine can--
bined‘vith the responsibility of serving as the public
voice of the profession has resulted in our nor-ally
issuing guarded or conservative public statements.
The CoIIittee is reminded of this position of the Associa-
tion to eqhasise the importace ad seriousness that it ‘
attaches to the subject at had. The story of the health
hazard created by cigarette smoking represents a un- '
rivalled tale of illness, disability and death. The
potential benefits to be derived froe the cessation of
seeking place it at a level of importance in preventive

' nedicine with pasteurisation of silk, the purification

. ad chlorination of water, ad i-unisation. . . . i, I

Once again, the uniqueness of the present situati‘onhas been used _to
rationalise extraordinary actions. The CMA continued that ”us believe it
sufficient to point out that there is no longer any sciatific controversy
regarding the risk created by cigarette seeking.” . ~

The Qu's 1.96? recoaendations vent further tha their 1963 proposals.
They taco-ended: ‘

1. THAT the Federal Covenant enact legislation to
elininste the advertising of cigarettes in all
adia and at the point of sale. ,

2. EAT the Federal Government enact legislation
requiring that all cigarette packaging be effectively
labelled so as to clearly indicate that cigarette

. saking is a health hasard . . . . He reco—end that
. . . there be effective labeling of advertising of ’
all types indicating that cigarette saking is a
health hasard. Such labeling should include the tar
ad nicotine content ad other toxic agents as they

,, are identified, as detersined by appropriately
designated governmental agencies. , .

3. ,THAT the Tobacco Restraint Act he supported,‘

. strengthened ad enforced so as to effectively
reduce the sale of this hasardous product to ‘ninors.

lo. THAT governments at all levels be encouraged to

. discontinue financial support and activity in this

. ield.

5. ' THAT governments at all levels ad voluntary health
agencies that have been engaged in public education
regarding the hasards of sucking be Med for their

, [efforts and accura'd to increase their support and
activity in this field.

ll.

 

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U

280

hora rocoatly; in January, 1970, tho Chi Council on Coo-unity Ioalth
Chro-ooggootod that a coordinating coalittoo ho oot up by tho fodotal
gator-loot including tho Canadian Cancor Society. tho Canadian Boart
iooociation and tho Canadian Tubotculooia and Roopiratory Diooaoo Aoaocia-
tion. 9 rho propoood coooittoo ahould propato a atatooont and oatoriala
diroctod to phyaiciano to holp patianta hick tho hooking habit.

In controat to tho Anorican Hodical Aooociation. tho CMA hao playod
an activo and loading rolo in prepooing govotlaahtal action. Tho CHA hao
not boon bordonod by acting on tho Ali.uao aa diotributor of tobacco
induotry toooaooh (undo. Tho objoctivity'o! tho lundod‘toooatch‘aa uoll
oo tho annoy itaolf‘oight bo joopatdiaod it tho AHA woro ao ootopohoa ao
thoir Canadion'oouatorpart. Clifio connotation with othot hoalth'iotoroat
groopo in Canada to notoootthy in holpiog prooont a uoiiiod'froat in pro-
pooiog govotnaont action.

C. Canadian Tnborculoaio and hoapiratoty-Diaoaoo iooociation

tho aoaoOnooa of tho Canadian robotculoaio'aod BoapiratOty Diooaoo
iooociation oi tho-rolatiooohip botoooo cigaootoo‘aoohing and oaphyoooa
and brhochitio oaao latot than oho aocogoitioo of tho rolatiooohiy otflung
cancor and cigatotto oookiog. 9 Tho aooociation_ondotood tho lollouing
tooolotion at ito annual oootiag Juno 1, 196309

Since it to rocogniaod that tho inhalation of tobacco

tar producto hao a Vida tango of harnful offocto not

'oaly on tho roapiratory-ayatoo but othor oooontial

body procooooo, tho [aaoociation] placoo itoolf on

Iocord ao condonning tho inhalation of tobacco to!

products at dotrinontal to tho gonoral hoolth and .

’oolfaro of tho Canadian pooplo and aloo incrioinating '

thia habit ao ono of tho cauootivo factora of carcinooo

:OIIIICIIIQ. '.‘.‘.'.‘i ,1 _

lhilo tho aooociatioo.onconai tho hooking-hoolth'conteovoooy'aoaoohat

lator than tho CIA, thoir 1969 tootinony to tho Standing Collittoo on

“1“

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. ' , .

281

laaltb. Haliara and Social Aftaira indicataa both thair aarioua.concnrn

and thair atooptanca and aupport of atrong govern-ant action. Ibay

accommamdad:

1.
2c
3.

‘.

That all.advartiaina of cigarattaa on radio and
talaviaion be banned.

CBC and CTV (Canadian Talaviaiol) ahould org.
their ataff not to nnoka on camera.

Promotional davicaa aach aa fraa gifta and oaab
prizaa naad by tobacco companiaa ahould bc mada
illegal.

Consideration ahould ba givan to making it a
raqniraaant that tobacco compaaiaa print a warnw

in; on cigaratta packagaa to tha affact that to
aaaha.tha cantanta.aau ha injurioaa to haalth.

CTlnA taco-mandatioaa ara not only aiailar to thoaa of tho CMA. but both
aarallal propoaala made by baalth iataraat [rowpa ia tha United Stataa.
'-lnrthaumara. tba aaaociatioa voluntaarad to CQODOKata with tha-govara-
man: in a atod; to aaaaaa tho-coat of an’hyaama-and bronchitis to tha
natiaa in ordar.to coantar tba oconamic argnmaata at thaac who defend .
ciaataata amoking and who oftan cita ita aconomic importance. CTRDA
auggeatad that "it aboald ba paaaibla to cat fiautaa to-countar thia. .
(acouaaic)~apgaaaaa by.ataaia¢ aha aillioaa of dollara which ara takaa .
tron. chm «on. inhaapiaal coata and. paymamt- at «maul-Wu!
1» 6.23913 2.2.9.0.: _msoc m. the mm Cu»: lin-tame; £22m .
lotl.tha‘Cmnadiaananc t Saaioty (CCS) and tba National Cancar

 

Inatitnta of Canada-(ICIC) but. hams III! coaoaraad with tin hazarda of
cigaratta.amntia:. 1° Aa aarly aa 1951, tha Exacntiva Diractor of tha
ICIC dram attamtiam to tha poaaibla manna of a link batman lung
cancar anincigaratta-ammkincn Iha»lClC antad.in 1958 that "atatiatical
atndiaa aho- that cigaratta*aaokara hava a graatar riak of dying of lung

cancar thanuhaaa monrampkarauand thanriak incraaaaa with tho amount amohad. "

hm: ailafiiA ILJJOR bJB owniiefi .d313.3

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282

In Jnne. 1960. the CCS.edopted en educational progran to inform the
public of the relationabip bet-nan lung cancer and cigarette enoking, with
aaphaaia an the education of eecondery echool children through prograna
initiated by provincial divieione ef the eociety. In June, 1962, the
aociety eeggeeted to ether health intereat greune that a broad progran of
public education en the prohl. of lung cancer and collie: ahould be
initiated through theae groupa. Furthermore, to tacilitate thie effort,
the eociety auggaated the yeaaibility of aenneaching gonernnenta, includ-
ing their departneata of health and educatinn at all levela.

In their teatinoay before the Standing Cauittee en health, welfare
and Social Altaira in 1969 the CC: and the ICIC noted the cooperation
“than theneelvee and the Canadian Medical Aaeeciation and coananted that
thia "co-an conocrn" ever the haaarda e! cigarette necking had led to

"clone collaboration in the development of programmea” to deal with the

problemu

while the propoeale of the three groupe are not fully congruent, the

C"

troupe have pointed out the eubetantial overlapping of their reconmenda-

tiona for government action. For example, in eaanining their own propoeale

‘a n ;“

for action the CCS acknowledged their eupport for propoeale nade by other
troupe aince 1963. Thane included:

1. That the Federal Government publicly recognize the
vrelatianahip hetnnen lung. cancer and the amahing
of cigarettea.

2c--That the Department at letionel Health4ane Unlfene :
naha educational material available concerning the
defiant of emohing on health and that thnae r-eao
ponaible for the public health in each province

-+ .alfl in each municipality participate in thin
educational activity.

3. -Thet a broad programme at public edecatien-on the
problea of lung cancer and enoking be carried out
by the Canadian Medical Aaeociatien. L' Aaaooiatinn .
den Medicinea de Langue Francaine du Canada and by

 

 

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283

"such other organisations dealing in matters of
public health.

A. That certain provisions of the Tobacco Restraint
Act be enforced in recognition of the importance
of protecting school children against the adoption
of the smoking habit.- In particular, it is recom-_
mended that the provisions with respect to the
control of automatic vending machines be enforced
in schools and in premises close to schools. '

5. That all parties concerned with the preparation
and distribution of advertising use it to proaote

moderation. _

6. That members of the tobacco industry be encouraged
to produce cigarettes with a lower tar and nicotine ? “a
content and that the Federal Government introduce a n

legislation to require the aanufacturers to state
the quantity of tar and nicotine on the cigarette
packages. 9 g
7. That a suitable warning be included on cigarette * ‘
packages, in advertising and in retail outlets such ‘
as"Harning- the use of tobacco may be hazardous to ' ' y W
health.‘ . 3',}
8. ‘That the Federal Govern-eat request the Canadian N
Broadcasting Corporation to review its policy to
ensure greater utilisation of the medium to combat
“this health hazard. '
The CCS and the NCIC concluded their presentation by appealing to the
Canadian Parliament for "strong leadership" in the campaign against this
health hazard. The CCS has devoted a significant portion of its activities
and of its annual expenditures in 1968 on public education to a campaign
intended to prevent young Canadians from adopting the habit and to per-
suade smokers to stop. . . p A
J ,The NCIC has gone somewhat further than the CC8 in concurring with
the can recommendations that the federal govern-ant enact legislation to
eliminate cigarette advertising in all media and at the point of sale and
that governments at all levels be encouraged to discontinue financial
support and other subsidy of the tobacco industry. Finally, to facilitate
the eliaination of cigarette advertising, the NCIC also recommended that

tobacco be placed under the provisions of the Food and Drug Act and its

 

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284

regulatory agency the Food and Drug Directorate.
E. Egggdian heart Foundation

The Canadian Heart Foundation (CBF) stated publicly in the Canadian
Mediggl Association Journal, 11 and later presented to the National
Conference on Smoking and Health held November 25 and 26, 1963, that "it
seemsressonable, in the light of present knowledge, to suggest that
those sen who are unusually prone to heart disease should severely liait
their seeking of cigarettes." The statement continued that "it would, i, 1
seem lost desirable to take whatever steps are necessary to discourage . l.
smoking among teenagers in Canada, in an effort to reduce the toll from
heart and blood vessel disease." The CRT has participated in the coordina-
tion of educational and other progress with other organisations and through
Department of National Health and Welfare_Comnittess., d

1' their 1969 testiaony before the Standing Cossittee on Health.

Welfare and Social Affairs, #2

the NH! suggested that recent research had
led the- to reaffira their previous position "that any appropriate action
that will reduce the hazard of cigarette smoking to cardiovascular health
is desirable for the people of Canada." They also repeated their earlier/
statement suggesting that ass prone to heart disease should liait their
looking of cigarettes. .Uhiletthe organisation did not take a position on
the bills being considered before the com-ittee, the representatives
present at the nesting.voiced support for efforts to reduce cigarette
consumption and to put cigarettes under the M .923. pm; Let.
1'- 922211.99. 22m 1252529. 22 m +

Canadian health interests have responded vigorously after tecosnilins

the hasards of cigarette sucking: 13 In the past chapter, we have traced

briefly this awareness in four aajor Canadian health groups snd their

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285

response. The National Conference on Smoking and Health in 1963 and the
hearings of the House of Comeons Standing Committee on Health, Welfare
and Social Affairs in 1968-69 have focused national publicity on the
controversy and have given health interest groups (as well as the tobacco
industry and other related groups) the opportunity and incentive to
foneulate and express their positions on the problem. Health interest
groups have proposed a variety of government actions short of outright
prohibition. While the specificity and extremeness of their proposals
differs, their basic aim of reducing cigarette consumption is accepted by
all.

Education of the public to the dangers of cigarette smoking is the
focus of their efforts, although they generally support more drastic
government actions which would eliminate all cigarette advertising and/or
limit the tar and nicotine content of cigarettes. Yet, they primarily
hope to dissuade youngsters from starting the habit and thus gradually
eliminate the smoking health problem, which is an approach almost perfectly
congruent with the general approach of the Canadian government.

In this situation causality between health interest group actions and
propoeale and government actions is almost impossible to prove. C. D.
Hoble, executive director of the Canadian Public Health Association, which
has also been very concerned with the smoking-health problem, perceptively
voiced the difficulty in measuring the impact of health interest group
actions:

It is difficult to know precisely what has been accomplished

through your campaign on matters of this nature. However,

it is certain that some progress had been made, through the

efforts of this organization and other health organizations.

The Government of Canada has become very concerned with

smoking and health, and is in the process of using tele-
vision advertising to emphasize the dangers.

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286

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287

Footnotes - Chapter X

My other Canadian groups have acted on tho snaking-health issue.
These have included, the Canadian Public Health Association, tho
Canadian Teachers' Federation, tho Canadian Hone and School and
Parent-Teacher Federation, and the Canadian Dental Association.

Canada, Depart-ant of National Health and Welfare, News Release Nunber
1967-ll, Decder 26, 1967.

Cuada, Departnsnt of National Health and Welfare, News Release Nuaber
1368-101: Lung Cancer Egidemic Worsening, Novenber 10, 1968.

Cnada, Depart-eat of National Health and Welfare, News Release Number
1967-11, Deced>er 26, 1967, pp. 3-4.

 

Unless otherwise noted, infornation on the CMA is taken froe their
presentation entitled "The Canadian Medical Association Brief Re: Smoking
ad Health," found in Canada, Standing CoIIittee on Health, Welfare

.1! Social Affairs, Minutes _o_f_ Proceedings and Evidence (Cannons), No.

20 (February 27, 19695.

 

The Canadian Medical Association Journal, LXXXVIII (March 16, 1963), p. 589.

the Canadian Medical Association Brief to the National Conference on
Seeking and Health (Ottawa: November 2546,1963).

"Canadian Physicians Need Federal Support to Help Patients Kick the
flanking Habit,” The Canadian Medical Association Journal, CII
(Juuory 31, 1970), pp. 131-132.

Infornstion on the CTRDA is from their "Brief to the Standing Committee
on Health, Welfare and Social Affairs Concerning the Dangers of Cigarette
Coking," Canada, Minutes 9_f_ Proceedings and Evidence (Cannons), No.

21 (April 21, 1969s.

Infornstioe on the CCS and the NCIC is froe their joint "Brief to the
Standing Co-ittee on Health, Welfare and Social Affairs of the House
of CM together with a supplesentary state-ant by the NCIC, " in
Castle, Minutes o__f_ Proceeding; and Evidence (Co-ans), No. lob

(Jane 19, 25,1969).

_111o_ Cnadin Medical Association Journal LXXXVIII (June 8, 1963), p. 1175.

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288

Guada, Minutoo _o_f_ Proceedingo and Evidonco (Co—om), No. 31 (May 15,
1969), aoo Canadian Boart Foundation, "Soaking ad Cardiovaacular
Ioolth: A Subniaoion Proparod for tho Boalth, Wolfaro and Social
Affaira Co-ittoo of tho Houoo of Conan."

0thor groupo aloo toatifiod at tho Co-ono hooringo. Soo,for oxalplo,
tootilouy of tho Canadian Ila-o and School ad Paront-‘roachor [odor-
atioo in Canada, Minutco _o_g Proceedinga and Evidence (Co-ma),

lo. 30 (May 13, 1969), or toatiaony of tho Canadian Dontal Aaoociation
ill Cuada. Hinutoa _o_f_ Prococdin‘o _agg Evidcnco (Co-mo), No. 26
(April 25, 1969).

Lottor fro- C. D. Noblo, Baocntivo Diroctor of tho Canadiao Public
Ioalth Aooociation, Aunt 5, 1970.

Ibid.

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Psrt 'rbrss: Grsst Britsin ad tbs Sakiorflssltb Controvsrsy

Tbs British govsrnuat's snaking ad bssltb progrss bss sought to
asors tbst tbs isots shoot cigsrstts sucking ad bssltb srs publicised
vidsly sad to dissusds tho young fro. smoking. Tbs British trsdition of
.isdustry-pvlsrnsat nsgotistion ad coopsrstion ad ths osntrslisstion
of British .ovsrnnsot dscision-nsking hsvs crsstsd sn' stnosphsrs 1sss
tbrsstain; to tbs British tobscco industry tba in tbs Unitsd Ststss.
1st. tbs tight for‘ incrssssd arkst sbsrss. sslss Had profits bss prs-
vatsd tobstco industry unity in Britsin ss‘it bss in tho Unitsd Ststss.

In tbs {alluring chsptsrs vs will coosidsr tbs scooosic iaortats
of tobstoo to tbs British scoooly. tbs British satin; ad bssltb progra.
ss vol]. ss tbszrsspooss of tho British tobstco iodostry to tbs snaking-

bssltb oontrovsrsy.

290

 

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Chsgter 2g: Tobacco and the British Econonl

A. Introduction

Tbs sass-1c input-cum dz tobscoo 116 cm: mean ‘bss bssn bsssd
prilsril-y do cigsrstts tsution slthougb aployant dirsctly ad in- ’
dined, rolstsd to tobacco mfsotsring sod distribution, is slso
w. . Gbils 'tohscco isndtsetoring ad distribution srs rslstiv'sly
Wis tbs tots). scone-y or main, they still plsy sn input-tan:
rolo in tho livss sad livsliboods of say po‘obls.’

m. sbsaos of tobscoo sgriculturs in cm: Imam has sli-instsd
tobscoo “ruin. ss s _fsctga' in its scono-ic iaortsncs ad bss vssbsnsd
tbs potatisl pro-tobacco sari-In: as partial strongtb. In contrsst, '
mm and Candia- tuba-cw Miss an”. manta" frod tho 1a.;
mash-z, at when tsr-srt luau country a thcir msfibiéfl sud
polities]. automatic-.5 Btittin has us alias-m tobscéo' cultivation
and hss and as its ton-u cola-loo (muslin; Csss'ds Ind tbs nut“
sum) to apply its tobsuo. British talents! policy‘sbihb‘ so' suctsssé
fully tutor“ tobscco tsltdvstion in tbs «shortest coloniss slso lsd to
tho sit-tutisu'of tsbscsO' obltivstidn is tbs iotbsr country“ by British
kings ssgor ts «protstl tbsir tlsdglisgsr‘

~ As in». mud sum and Casds. tbs‘bslltb of éitsrstt's's-oksrs
in _Britsisbss boss hslaosd noun: tbs demonic i-portsnco u: tbs "industry.
Tho politiosl mm at 3 hold mo of mm: gov’srnlsnt sctions
to rsdncs cigsrstts Wu hos-boa ma sod nitbsd i‘n Irits'in '
st .ths Wt lsvsls of: M11: uncanny. -’ nu amenity ’of banning

_S

291 “

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292

sltsrsstivs ts: rswsnuss sad tbs fssr of slisnsting tbs votss of cigsr-
stts slohsrs who.contributs bssvily to tho public purss bavs inbibitsd
ssvsrslsnt sction snd bsvs usintsinsd tbs cysts: of intsrdspsndsncc
botwoon tbs govsrsssnt and tbs tobscco industry.

In tho following cbs’tsr ws will discuss tbrss tsctors which bsvc
osstributsd to tho sconosic isportsncs of tobscco snd cigsrettss in Grsst
Britsis: tobscco ssnufscturin; snd distribution, tobscco isports snd a
orpsrts. snd tobscco tsxstion, Ws proposs to cranins tbsss cosponsnt
psrts sf tobscco's scone-it importsncs to sid in orplsinin. British ,.
.swsrsssnt policy snd prsdicting possibls futurs sctious. us wi11,s1so
considsr_tbs structurs of tbs British tobscco industry which wo will uss
is s lstsr cbsptsr in discussing tobscco industry tsctics.

so is tbs Usitsd.8tstss and Cansds ths scone-1c isportsnes at ssploy—
lost crsstsd by tobscco sssutscturis; hos boss dsbstsd in Britsin.- Bsrvsy
601s. isibis srticls "rho Iowan-it Bffscts."_1 discussod tbs sconosic
iupsrtsscs of tobscco in Grsst Britsin snd spsculstsd on tho probsbls
offsets.s rsdsctiss is cigsrstts,csosusptios would bows upon tbs British
scans-U. Bis sfforts bsvs boss oitsd by Tbs Isys1.Colls;s of Bbysitisns
offload” is tbsir 19.71 rsport mmmm.

Blisrts to sssssrs tobscco industry ssplsyssnt bsvs bssn couplicstsd
by.tbs=sostiosis¢ industry divsrsifisstios that bss tskss plscn.lnd tbs.
lock of.dsts on cigsrstts snd son-cigsrsttO CID19!IOnt within tbs tobscco
industtvo- flawsvsr. wt do know that so in tho Unitsd ststss-snd Consds
tissrsttss sscosst for wsli ovsrusissty psr cost.o£ s11 tobscco cos-
sussd is Grsst Britsis on! 'sstly~ostwsigb tbs isportsncs of otbsr focus

2

sf=tsbssco(consulption. Colo clsilsd tbst st tbs snd of 1964, 39,700

psopls worked in tbs tobscco ssnufscturing industry itsslf. 3

 

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293

rectories in two cities, Nottingha- and Bristol, accounted for
alnost 50 per cent of the total national figure. Houever, even in theae
citiee Cole found that only about fies per cent of local jobs uere created
hy'the tobecco industry. 4 0n the national level out of just under nine
Iillion people in ennufaetnring iu.l966 less than one-half of one per
sent usre .ployed ”the tobacco industry. 5

Econonista and newspapers in Great Britain have also been concerned
with the fiossible effectd of reduced cigarette eonsunption upon people
angleyed in tobacco distribution. While the profit nerxins on cigarettes
are uell halo. those on other goodd,~the uelunn of tohecce dales is
inportant to the.livslihoods of an‘estinatsd.60 theeeend tobacconists;
ceniectieners and new. agents.'6 Retail price neintenance (R.P.H.) egres-
tents by tobacco nanufacterers which froze the retail price-o! cigarettes,
helped snail businesses to cenpete'uith the.lar;er super-arkets and.
discount stores. Cole estipted that "without-cigarette ealea my
thousands of enall shoph neuld clearly find it inpessihle'to.etay in
business. . . ." 7‘ ' . ‘ * . , r ; _ .

the Ililfll‘tiOfl'Of.I.P.He by the tobacco industry in late 1968 was
a blow to nnny snail shopounere which are now being hurt by cigsrette
price reductions offered by the large chain stores. 8 although the.prs9.
cise inpact has net yet been-neasursd. The eentinuing spread and in-
creasing pepularity of supernnrhets and discount honest in Great Britain
as in,the10nited States and Canada have threatened ts force out of
business a substantial proportion of the snail shepsrregardless of the
Present-threat to their tobacco salen. Cole noted in 1965 that'ths -

Innher‘ef tebntconilts had already declined about a seventh between 1957
and 1964. 9

 

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294

Cole estinated that the prohibition of tobacco night displace
100,000 full-tine workers in tobacco nanufacturing and distribution while
perhaps a third of this total night he expected to retire or not seek
further enploynent. 10 .He concluded that the disappearance of tobacco
Innufacture would not create any najor problens, even in areas where it
was heavily concentrated "provided that this did not sinply happen over-
night." 11

The Royal College of Physicians of London and other opponents of . .
cigarette snaking have achnowledgsd_the possible econonic consequences
of their proposals, and haye considered the benefits to be derived froe
gradual rather than precipitous change.” No precipitous prohibition_or
nationalization of tobacco or the tobacco industry hee been.suggested.
Yet, there has at the sane tine been no legialation introduced or ap-
parently even suggested by cigarette opponents to neliorate the econonic
hardships which would be inposed on tobacco workers end/or distributors
by a governeental prohibition on any lesser actions that would reduce
cigarette consunption and sales and which night concurrently reduce
tobacco worhera' opposition to auch actiona.

. However, it is also conceivable that present progrann are sufficient
to protect those workers whose liyelihooda night be affected. Moreover,
no estinates are available on the nature or extent of the hardahipe that.
night result froe any of the nany possible govern-ental actiona. Colefs
eetinate of the possible displacenent of.workers by a prohibition on
tobacco is extrenely crude and unfortunately.there are no other available
estinates and no governnent studies have been undertaken.uith which.weg

can,ewaluate his figuren~

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295

The displacenent of tobacco nanufacturing enployees and diatributors
as a result of govern-cut action will depend on the nature of that action.
Estinates that predict dire consequences of govern-ant involvensnt and
unspecified action are -nisleading. Other questions nest be answered.
before rsii'abia estiaates of governeent-caased "ploy-ant seoag tobecco-
related enployees can be developed. In ennple, there is presently no
estinete of how rapidly the displacement of tobacco aqloyses can be
expected to take place‘ given different possible govern-ant actions ,
against cigarette snohing. :Purthdrnore, no consideration has been given
to the possibility of the tobacco industry's one sbsorptien.of.displaced
workere into its expending non-tobacco activitiee'or poeeibly‘evuiinto
other segunt's of the industry (such as cigars, pipeé-enshing or sun‘-
tobecco enterprises) which nightierpud «enticed-1y if eighrettes were
prohibited. 2 a . . . . r

fit in needed one is diepaesienate and authoritative study in:
Iritein an sell as in. the United States and Canada to estinste accurately
what night be realistically expected to result free a variety of possible
Wgovernnent actions. Por eaanple, the elinination of I. P. M on cigarettes
in Britain has already further weakened the nerginal econonic position
of the snail tobacco retailer and nay accelerate the gradual reduction
of this type of retailing which has been under way for a umber of years.
It is possible that govern-ant actions against cigarettes would have only

Q

a alight increnental affect on enploynsnt in tobacco retailing.

1. I ' f I l

Reassessnent of the benefits of cigarettes and tobacco naasured in

. f ,
terns of jobs and incons fron nanufacturing and distribution is needed
if the econonic costs of governesntal action against cigarettes are to

be accurately neasured. Such a reassesseant night produce evidence that

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296

the adverse employment impact of proposed government policies is less
than the opponents of anti-cigarette efforts assert.

Nevertheless, reference to the overall importance of tobacco employ-
ment is misleading. the smoking-health controversy is a_politica1 problem,
not primarily or just an economic or a medical one. In political terms,
60,000 retail tobacconists, confectioners end news agents might be

extremely important. ‘Tbeir obvious viability and contact‘vith customers

Il-e‘;
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might make their political influence and impact far outweigh. their tat-bers,

. . 3’.
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economic importance or the sire of their financial loss. _Another still
larger potential political group consists of tobacco may shareholders.
In 1970 _Imperial reported it had over 228 thousand shareholders while

BAT had over 137 thousand shareholders in 1968. While'shareholders'
livelihoods may not be involved in the. tobacco industry, at least a portion
of their. incomes pd investments are“ he importance of. reassessment
might be. mainly. political to calm unfunded fears and reduce opposition

to government actions .

A second factor uderconeideretion, British tobacco inorte,
contributes negatively to its economic importmace. Unlike the United
States id Canada vhich produce their on tobacco for indigenous consup-
tion, Great Britain must import tobacco. Thus, tobacco iqorts are a drain
on the British economyand tobacco exports make up 691,}...11 part of
the trah deficit. Table 1 shove the value ennually of tobacco imports
ad exports, 1958-68. The balance of trade deficit of tobacco has

averaged £ 69.75 million annually over the period 1965-68.

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Table 1

Great Britain: Value of Tobacco Imports
ad Smarts 195891968

Value of Inorte Value of Marta Betainad Inorts of

| v
' - “knew

(millionf ) (million£ ) Tobacco and Tobacco
, i . : . . Manufactures
(million£)
86.9 21.6 ‘318.7
84.7 18.7 ‘301.2
’ 103.6 18.2 3611‘
1100.6 18.7 .304.
“00.8 ‘16.8 278
99.5 117.9 .323?
91.1 ‘16.0 I 311
86.0 ' 20.0 182
88.0 11.9' ‘261'
' 89.9 23.7 .280
118.7 80.0 330

3

United Kingdom, uel Report 9: Statistics;
=_1__9_‘_’_ (Landon: Ber, thjeety'e- Stationry‘Office,
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298

.Britaia's halnco of trade problems might have forced the reduction
of “Mono imports if it ears not for the importance of tobacco taxation
and the importance of British tobacco imports from several Co-eevoalth
nations. Prior to Horld Has 11 the United States was the major source
of supply for British tobacco'meufaotutors-but: tobacco‘ imported-from
Wthnatioitfivhich have a preferential rate of duty which .ounts
to less than too and one-half per cost) has increased" about 50 per
cent of recent mention. United lathe-mosedaanetiome against
hedoeia heve recently removed a major source of British tobacco hurts.

the United Btaems‘nd several ‘Oo-enmoalth oodtriss, including '
“surely on exports of raw tobacco to Great Britain to help support _
thouend-e of tobacco farmers.--1'he esp-dance of the Unitedetates tobacco "‘"i
farmer‘s on British imports is quite sebatantial.- Britain has imported .
approsimat'oly 23 per cent 81.811 8.8. “taunted-count: mu '
trim. the period 1960-69. this has maltedvto over $100 million} .
smelly maria; this period. 1; by British geese-eat actions-thee 1
hold sane-as in reducing cigarette cm mould be ra‘pddly felt in
both the U. $.Tand Canada and-would adversely affect tobacco agriculture
as .11 as. their bolus of payments. ”lb Serene-national interrelated-
ness of tobacco grouimg and tobecco mm missus accurate
estimates of its Mort-Ice 1n ally one away. «This interrelatodasss
of. trdo “shoes“; on policy mists dutmeeo‘gsiee-that‘ incarnation
fight mdmereely salient rotations between nations and :load to sadism.
0. British gigarette and Tobacco Tantiunr~ r

, zlheaemdrmity and Inenosaity of tobacco revenues'tao~ the Drieish govern-

mast is .the purine]. “fact which “its glues—nut action to “reduce ‘
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299

political fact about tobacco in Great Britain. We will show in the
following section why this is the case.

The import duty on a pound of tobacco was 71 shillings (over $7.50)
in 1965 having increased 364 per cent from 19s 6d in September, 1960.
Tobacco tax revenues have increased “.9 per cent from 1737.1 million in
fiscal 1958-59 co£1105.0 in 1968-69. Britain with a 11m. ever one-
fourth the population of the United States collects more tax revenues
froe tobacco than the U. 5. federal government. Tax revenues make up
over 00 per cent of the retail price of cigarettes in Britain in contrast
to federal, state and local taxes in the U. S. which mako‘up about 50
per cent. "

levortheless, the relative importance of tobacco tax revenues in
Britainlhas declined fron 13.87 per cent in l958¢59 to 8.37 per cent in
1968~69. 13 However, the relative importance of tobacco tslation to the
national government is over three times greater in Great Britain than in
the United States or Canada. On a per capita basis tobacoo taxation in
Great Britain brought the governent approximately £ 19.50 in 1967-68
onward with £17.90 ,in 1960-61. Table 2 provides data on tobacco
revenues and total tamation annually from:l958~59 to l968469.'

the general reliance of governments on cigsnette and tobacco tass-

. 1

tion has boon noted previously in. discussing tobacco taxation in the
United States and Canada. This dependence has given the British govern-
ment an even stronger interest in the continuation of cigarette snoking.
The 1962 Royal College of Physicians report Smoking and Health, which
was extremely critical of cigarette snoking, nevertheless ignored the
economic inortance of tobacco taxation. however, the 1971 report Smoking

m Health “_0‘1 directly confronted it. The report concluded that "it

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300

Table 2

British Tobacco Taxation .

,p
Q .

Tobacco Revenuea

Tobacco Revenues b Total Taxation aa a 1 of total

(million i.) ~ (million 2) , Taxation
1956.59 757.1 5314.1 13.67
1959~6o 769.6 5400.6 16.62
1960-61 ' 826.3 5727.6 16.62
1961-62” 870.7 6360.7 13.65
1962-63 (679.2 ‘ 6571.9 15.36
1963-64 893.2. 1 6646.6‘ 13.63
1966-65 '964.g 7’931" 13.25
1965-66 1015.4 8323.91 12.20
1966-67 : 1025.6 9370.6 10.95
1967-66 1046.7 ‘ 10619.2 " 9.66
1966-69 1105.0' 12667.6 ' '6.57

a. ' Great Britain, Annual Regort 95 Statistics; 1969 (London:
Bar Majesty's Stationery Office, 1970). For earlier atatiatica on
tax revenues from tobacco duties and rate. nee Arthur E. Tanner,
Tobacco: From the Grover to the Smoke; (5th ed. rem, London: Sir

Tiaac Putnam 3 Sons, Ltd},-T§§—y;

' 8. ‘Year ended March Slat.

. .
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301

scene that Ministers, while accepting the evidence . . . are guided in
their actions by the view that the risks are regrettable but inevitable
consequences of a habit which they believe to be an essential source of
revenue." 1“ In addition they quote an unnaned former Minister of Health
in a Conservative government, who wrote in 1966 that "smokers, nainly
cigarette smokers, contribute sons £1,000 million yearly to the Exchequer
. . . and no one knows better than the Govern-ant that they sinply can't
afford to lose so nuch." 15 The report also quotes at length an unnamed
Labour Minister who expounded the sale viewpoint as his Conservative
colleague:

The introduction of a neaningful differential tax on ~

cigarettes would be bound to have a serious detrinental

effect on the total revenue obtainable froe tobacco.

The object of such a tax would be to reduce cigarette

snoking, and pipes and cigars would not be acceptable.'

alternatives for nany cigarette smokers. Further-ore,

apart from those who gave up snaking altogether,

cigarette smokers who switched to cigars would consume

less tobacco in preportion to the ties spent in snaking. 4

Thus the capacity 8f the tobacco duty to produce revenue
would be eroded. 1 7 '

The econonic iaportance_to tobacco taratioa‘and seat isportantly
cigarette seeking has been recognised by both Iajpr political parties,
which are therefore reluctant to act to reduce cigarette consuaption.
Alternative sources of needed tax revenues are difficult to find and
to elininate such a lucrative source of funds.without a.politically
feasible or econonicelly realistic alternative is political suicide for
any British govern-est regardless of political persuasion.

Saokigg_and Health Egg,castatna a section that recosnisss the

attach-ant of British politicians to tobacco taxation and chastisea than

for it:

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302

Hinisters fro. both the nail political parties have
indicated their unwillingness to reduce this source
of revenue. Indeed the Treasury has already met the
possibility of the incorporation in cigarettes of
substances other than tobacco by legislation in the
Finance Act of 1970 to ensure that such substances
should be taxed as the sane rate as tobacco without,
so far as is known, anylionsideration of the health
aspects of the natter. ' ' ‘ ‘
As in Iany other countries differential taxation of tobacco to increase
the retail price of cigarettes while reducing the price of pipe and cigar
tobaccos has been proposed as an induce-cot to cigarette seekers to switch 3 1
to less harnful types of snoking.‘ The alternative of differential taxa-
tion night be considered lore seriously if total tax revenues froe“ ’
tobacco were not projected to drop precipitously froe any large decline
in cigarette consumption. ’ I ' ‘ ‘ ‘ .ej
In 1970 the average expenditure on tobaccoiwas about 6.8 per cent
of the income of the average British household. 18 Consular tobaccO'
expenditures (at current Iarket prices) have increased‘53.l per cent
between 1958-68 froe£1031 billion to £1513; run with in. «vii-é
publicity about seeking and health there-hasn't been a single yearly
decline in conaueer tobacco expenditures since the Controversy began'
about 1930. ' ' 1 ' " l ? 7- ' 1'
‘l‘he predicanent posed by the snakingehealth controversy has been '-
conplicated by the sylbiotic attachient of the govern-ant to tobacco “
consulption. The challenge to break these ties which fbster inaction
has been issued by opponents of cighrette‘seoking in enny'countries. As
The Royal College of Physicians of London put 1:, to the stunt: govern-
lent had "to decide between an easy source of revenue and the preserva-
tion~of the lives, health, and productive capacity of the people‘they

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302

liinisters frol- both the Iain political parties have

indicated their unwillingness to reduce this source

of revenue. Indeed the Treasury has already met the

possibility of the incorporation in cigarettes of

substances other than tobacco by legislation in the

Finance Act of 1970 to ensure that such substances

should be taxed as the sane rate as tobacco without,

so far as is known, anylsonsideration of the health

aspects of the latter. " 1
As in nany other countries differential taxation of tobacco to increase
the retail price of cigarettes while reducing the price of pipe and cigar
tobaccos has been proposed as an induce-eat to cigarette snokers to switch
to less harnful types of seeking. The alternative of differential taxa-
tion night he considered sore seriously if total tax revenues fron' ’
tobacco were not projected to drop precipitously fron any large decline
in cigarette consumption.

In 1970 the average expenditure on tobacco was about fi.8 per cent
of the incone of the average British household. L8 ‘Cbnsunef tobaccoi
expenditures (at current narket prices) have increased S3.I per cent
between 1938-68 fron £1031 human to £1578; run with ‘thc «vii-é -
publicity about snaking and health there hasn't been a single yearly
decline in consuner tobacco expenditures since the controversy“began
IWIQSO. . to..l--’.I .‘.*.~..i --‘ ..-a,:“_ t

The“ predicanent posed by the sndkingéhealth controversy has been H
couplicated by the syibiotic attach-est of the govern-ant ta tobacco ‘
'consunption. The challenge to break these ties which fbster inaction‘
'hss been issued by opponents of cigarette‘shokiig in nany countries. As
The Royal College of mum-m of London put 1:, to the surrou- govern-
sent had “to decide between an easy source of revenue and the preserva-
tion of the lives, health, and productive capacity of the people they

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303

D. Mg Industry Concentration
The tobacco industry in Britain is even more highly concentrated than

 

in the United States or Canada. No British companies completely dominate
the nrket while only three control over 99 per cent of cigarette pro-
ductin. Inerisl Tobacco Limited 20 accounted for 64 per cent of the
cigarette market in 1967 (down from 81 per cent in 1947) while Gallahers
Limited (which is 67 per cent owned by the American tobscco corporation,
brim brads, Inc.) accomted for 30 per cent. Together these two
fir. controlled well over 90 per cent of cigarette production and total
tobacco sales in 1967. A third company, Carraras Limited controlled 6
per cent of cigarette sales in the same year. 21

lurtharnre lqerial has a large holding in British-American Tobacco
Coup-y Linited (a British-based corporation which does not produce any
cigarettes for the domestic market) and owns one of the large Mericen
miacturers, Brown 8 Williamson Tobacco Corporation, while Imperial
med “.5 per cent of its nearest competitor in 1961 and while it sold
net of its holding it has retained a 1.65 per cent interest in the firm.22
lmperial's control of the tobacco market is so pervasive that as Cole
aeted ”.y picture of the industry not inevitably be a portrait most of
whose features bear :1 uncanny resewlance to those of Imperial itself."23

The neeual nd unbalanced division of market shares has played an
inortut role is determining individual cowany tactics and especially
policy differ-Ices between companies which have prevented (as in the
lhited Stetes) a uitad industry response to anti-cigarette pressures.
The necessity of protecting these market shares or of improving them has
resulted in intra-industry conflict and in increased advertising expandi-

turee ad gift coupon scheme in a cigarette market that has rapidly

 

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9.
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11.
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13.

305

lootnotaa - Chaptor x1

Harvay Cola, "Tho Econoodc lffocto,” Coo-on Sonao about Soohin‘,

c. n. Flatchor at al., (1nd ad.. Hiddlaaox, England: Ponguin looho
Lindtod,1965), pp. *£0-7l. Tho obvioua nor-ativa biaa of tho book
and tho lack of footnotoa ia unfortunate and fruatrating. Cola'a
figuraa aro aatroooly cruda and aoloctivo. ' ‘

Ma. 'o ‘Jo _ :
EL. In 1968 Inorial had 69, 000 .ployaoa (including non-tobacco
onrkora) and Carraraa 3. 200 according to Jana' a Major ngganiaa_ of

‘Eggggg_l970 (London: 390 Publiahins Ltd., 19705. Gallahar, in ito
1968 Director' a Roport, atatod that it had 13, 790 aaployaaa.

Ibid., p. 4‘.

M. . Po ‘5.

"Ind of II! to loo’litting Tobacooniata.” g!g_tiaoa (London).
Iahrnary ., 1969.

Colo, p. ‘9.

”End of I?! la Nov Hitting Tobacconiata." IggDTioaa (London),
Iohruary o, 1969.

 

Colo, p. 50.
Ibid.. p. 51.
Ibid., p. 52.

0.8., Dapartout of Agriculturo, Annual lagort 93 Tobacco Statiatica
1969, p. ‘0.

Alao aoo G. Findlay Shirraa and L. loataa, Tho lurdan of Britiah
Taxation (Canbridgo at tho Univoraity Proaa, 19:55. lat racaipta of

tho Eachaquor froo tobacco taxation aa a parcantago of total racoipta
hao variad froa 11.1 par cant in 1913-191‘, 7.8 par cant in 1925-1926

to 9.8 par cont in 1937-1938. For a ooro racant diacuaaion aaa

"Tobacco Dropa aa Tax Inca-o," Tobacco Roportor, XCVIII (Dacaabar, 1971),
p. 38. Tho articlo notod that tho tobacco duty had droppod to fifth
placo ao a aourca of govarnoant ravanuo bohind tho incooo tax,
corporation tax. patrol tax and purchaaa tax.

 

 

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14.

15.
16.
17.
18.
19.

20.

21.

22.

23.

306

Royal College of Physicians, Smoking and Health Now: A New Report
and Su-nary Ln Smoking and Its Effects Ln Health from the Royal College

 

 

 

Lf Physicians LE London (London: Pitnan_Medica1 and Scientific
Publishing Co., Ltd., 1971), p. 21.

 

Ibid.
Ibid., p. 22.

Ibid., p. 136.

British Record, No. 15, December 8, 1971.

 

Royal College of Physicians, Smoking and Health Now . . . , p. 136.

Imperial Tobacco Lilited originated as a defensive combination of
thirteen leading British aanufacturers against the invasion of their
donestic'iarket by the American tObacco coabine in 1901. See Richard
Bvely and I. M. D. Little, Concentration in firitish We try: 55..

Eagirical Study Lf the Structure Lf Industrial Production 1935-51
(Ca-bridge at the University Press. 1960). _ 1 ,

 

322,2i222.(tondon). March 6, 1967. , ,

"Iaperial Selling Share in Gallaber," gbggco gigg£535,XCV (June. 1968).

p. 66.

Cole, b. as.

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Chag‘t: &::I$t;:m San unkinlou j 233:» .

A. W

Tho Britioh gonna-out o outing and hoolth canpoign hao had two
loin loci of action. Tho firot hoo boon to onouro that tho tocto obout
omkiog lid hoolth ood tho hoaordo involvad. oopociolly of cigorotto
looking. aro publiciood widoly. Tho oocond oil hoo boon to dioouodo tho
you; tron 'oookiog. Thio choptor cahoidoro tho pvornaont' o pron-on to
roach thooo polo. noto opocifically wa will cmoidor tho aovornnnt' o
roopoooo to cigorotto odvortioin. ond offorto to obtain logiolotion or
voluotory agrooo-ht with tho induotry. Ho will oloo diocuoo two otroo;
praoooroo uoinot cigorotto oaokiog which howo actod how both tho Britioh
”mount and tho tobacco induotryx (l) ,prooouroo Liraoxithin tho savan-
Ilntol-Ihurooocrocy froa tho Chiof. Modico} Officor of Hoolth. sir Goorp
6.0430. who bu lens I.“ A vorbol Mali-an In: «that dump "on“
I“ <2). nmwm m. sh- mun note-om am.“ a! wax-pom -
«mum 391d- CalL-oa. at national «m which-W tho trunn-
M and ‘11..thth of tho "dicol cc-uity looftocmiqgvoction
to room. and unwell-x out-in»: tho. udtqol. «mu-um of stunts-0
WIQ; ‘ 1*

ho sritioh oaokiu. ad hoolth coqoip hogn in o oaoll way in 1959
ad woo inmoitiodattor tho .puhlicotiqo o£__tho “£92 m u
m b1 “99 Ram Colloc- of Maui-no of L094!!! 3:!) We!» Aim-

307

‘mn-w-r-— r — -—-—-— -—'J

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308

"to: to that 'tiao noun-oat inina-oat hao'booo continu- to atatooooto ~
to Iotlimnt by ‘tho Mini-tot of llaalth. to: «filo. in 1951 tho Hiniotar
not“ that.

. . . tho Gonna-uh oooponoo—to tho advico of tho

Radical Rooaarch Council that onokin3 playod a najor

part in tho incaoooo ot doatho fun lun3 anno: m

that tho tooto ohould bo soda known to all thooo with

mitility to: hoolth oducotion. - -
tho 1’62 «you not“ that'tho‘aoocationai-ottotto by local hoolth i

nthooitioo noto man. - Ioloo at pthoto on noun .4 hoolth'by

j p.43 hurt}?
.a

tho control coutoil for Ioalth Education (which vaoo local point of only
«out» had -."Ud to‘oniy tum --lo! :a- yoara ”so-cocoons“ mu
“animation-cyan by tho motor-inflow ao aovoatiaiu our tho
.- vation. i‘l'ho vaport oontaiooa tho lollnin3 “that bloat o‘voaall
ovaluatin’ o! aflotto to 196::

float 1.991. tnoooo 'oooofition no yattioulatly'oiuo-

otto nokin3 hava continuod to incroaoa, and tooont

'ovidonoo non3 achoolahildron don not ou33oot nah -‘ -2

oducation ao Aio boin3 carriod out ia havin3 ouch affoct. '

'lho nti-onohin3 cqai3n bo3un in 1962 hao boon 3oatod to a lon3-
tot- ooqaip of oducation that would bo dovolopod pto3maaoivaly. Tho
control pnrnnnt hao ounliad pootoro. til-o and othor publicity notorial
for tho uoo of local hoolth and adoaatio'n authoritioa {too of char3a. In
March. 1962 local hoolth and ohootionouthoxitioo woro aohad by tho
man: of lioalth to uoa ".11 thoit channola' of hoolth oducation . . .
to brin3 ho- to tho public ad to oohoolhchildton tho dupra of onohin3
. . . ." 3 Sinao than laaal authoritiao hava oonductod onohin3—hoalth
oduoatin.

rho uiniotry of hoolth hoo uood a nubar of aynbolic dovicoo to in-

oroaoo public naranoao of tho haaardo'of oi3arotto onokin3. A poatnirh

, - . I"
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d3rw need: 113 3 nwoni sbam 5i biuoda 83353 5&3 3553
.noinuaubs fiJibad 101 qaliidianc a9:
dslnsd lanai yd n310139 Isnoiahoube 9M3 Jufin baaon awogaz £J§i 9d?
‘d fljjssd has Quixoma no anulfirun 3o afijha .lnmlnlm 939w noijlxoflaun
\ ‘1
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dew bsxngwoo QE-JCCI £1592 sfiJ to} $35,8’1.YICO on bsauuums bad (ajxwils
9n: xuvo gni£1313vhn no yxjaubni OussJuJ 953 yd Jasqa nolllkm ‘Sékfluna
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laljoiwn viiaiidu India has nail} 219130 boll no and :nsmquvz Idling:
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sfi: 2d bsjan 933w aslskzofijus noljsaubo has finiaod Inaui SGQI .fiozbfi
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ixan3aaq A .3nkfioma 933313313 30 hbznxad 9d: 30 aasnsxcwn siiduq bubhiD

309

undulatio- "Gi3anattoo Ian You noaith”. hao boon nod: until. an bun;
adncotioool notorial an lookin3flto all poato~o£ tho country; opot Ioti- :
alibi-3 aol-ntoialo on talovioiontrowlillial book-othos and loan than two
um. poatot'o u at dooiana hava all boon uood toopubliaiaa tho uncut}!

Ihblo l pllaanto data on alpanditnnaa by Ibo liaiatay at hoolth an.
odvartioua to non tho publia at tho dunno of onohio3-£m 1962163 .to
1166-61.. Inpandituaoo'dutin3 thia (ivo yaar potiod havo inctaoood tron
alnootJ£Ll5 tbouoaod to an.ootinotod41192.thaooand;althouchutaoont opood-
in boo lav-loci oft atoll-aft" tho that tn yoato thought-tuna“
oapndiautoo. Uhilo it to difficult. to calculata apt-ht prono- an-
poaditulo fiantoI‘hooouoa thooo atlotto alto. out ooaooo;dapattnoatal;
mm- uuugm tho liaiotty of humus-unqhnm in ma;-
1 an'iadicativo of an ocala a: a. Ititioh offott. 5 um~muuy~
Mutual-«a nooaaaa’ot allotttho Jutm‘mla' bahind both
tho no.av.!! Canadian attotto. louovor. thio ia probably not a valid
canola. baoouoo at hifiot onto h‘tbtihh ad. Guada-nd tho-ouch
lam: national loatitatioo -aod'uidoly ‘aaattotadgopulati-o .ia thooo
oounltiom .

lhbla'l

, Hiniotry of hoolth Expandituroo on
Anti-Snokin3 Advartioin3

‘196'2-63‘ 5 1 ”£14.89i'
1963966 ,, . - 29.0“
1964-65" 90.48; "
1965-66 -» ' 95.968 .
. 1966-67o“. “92366 '

flow! tho nun-'1: hoolth Mutation Council hao tho lraop'onaibility of

«rain on tho national onokin3” and hoolth pro3tan. Tho Comcil hao

;_.- ‘wv

tus—u.

‘ ,_ ,.__ - .=.,' .
guJIJ annv sxicun 3chu U. ad 860 qunuh rug! ..hi £5233’163I RbllaL; )JAJ

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no aslbofi io YjJalflifi 9d: yd asuuzihuuqxs no 8355 annacszq I sldaf
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8
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fined baffled 8351 muxgoxq 5311111 on: 3:03}: 10 'xuasam a no euxuzibunqxs
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biuflj n1 anoinaiu¢i Jq b3133353a viabiw has 33110311193 isnoizsn 193751

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an“ “3m“ 9.3T .mmgo'xq 33139:! hm; 5.114610 115301351: on”: no 2.3107333

310

laanchod a.nalbo¢ a: publicity poo3raao uoamod to apocifio a3o 3roupo and
boo nooa'tahon a atody o! tho ottootivooooo of thooo nona- in chan3in3
nohin3 M. lot ”la. oooopapot odoottiaooaooo aro boin3 uood
to tooth tho l6 to-JO yoar oldo with factual ooaoa3oo atrooain3 tho hoolth
hooordo of o-hia3 .d-oao ditfoaaot typoa of pootoro ato.boio3~oado avail-
Ola by tho “oil to local-oo-nitioo to ooppott thait localrhoalth '
odooatioo antivitooo. 6 ~

lo.io tho Bolton Itotoo.aod Canola tho look of containotlaoVbotlhooA
tho olioaoo a! ptiaooo 3aaapo bod 3oooxnaaot;ao;aall oo bollaanraovonmannt
dopaotoooto hao ptoooaaod a'ooriooo probln. .noally in Mouth 1910 a
Ioniaa‘ “col “thorns-appoint“. io‘tho upon-oat -o£ lodahcud-Oocial
Iooho‘lty oo mm tho an”: vaaiooo We, auto-u, a nit
liho- tho 8. t. Iatiooal Cloaaio3hoooo.£ox_-lloflno noto-an: my ba ooaob-
loohod»oo-iuaahot'oooaaoliao and.oooodiootof3oaoaoooat‘olfotto.
6. waggntu “not” --.:,.

to in tho Unitod atatoo no Gnoda. lootioh~ taboooo ad «grotto
mug ho‘obooo ohoo'ply? 'caiticiood tot dlopdly ‘dioootm ito. afforta
to-ohildtoo. oomall no to”: u onoooioa nlboo. no.3ovaaoont'ovaoo
allot-unto “tooto havo'oohoa nontao to ooao" lzpotrooot of indootry
odvoo'oioio3 oxpndiooaoo. ‘l‘o toopooao-‘to ‘atiticia- tho ‘iodooory dofandod
itoollnio.l!o¢ ooio3noo3aoaotorahichqhoao.booo oapootodlptuood do.ltitain
.I‘V'.‘Ilw'.1.-IItOCVUIOQx1nfiCHOrao.o:IId'CI..‘.8a

,aovoroioin3 of tobaoob”ptodocto taioaethorlaaasol - r

odvortioin3 of individual brondo. Ihoto io no ditoct

* Ippool to-noonolohoao to aloha o ... .- Tho.potpooo o! ~

brand advartiain3 ia oiaply to ooll tho brand advortiood.

which prioaaily oonmto ooll that band at tho axponao

of ooopotin3 brando.

lhbaooo aaoutaotoaaoo b . . homo novoa~ooooatoaod

onooosiva onohin3. Thoto hao navor boon any advortioin3
.ioohiohadotohavoboonotpdooaoohount 2‘ ' ..

‘F‘

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gnignrfin ni annugqu sasfi: 30 aauuuvtjsails sfii io {Quin n naiajzaLnu and
buzzu gniéd 9'13 a31‘13:.;:£-zi.12(9'~.'b8 negatiawun .siqmsxs '10"! .Iolvuiud 3.1:-“333
nsisad 9H3 gniayutja eagaaasm inujosi n31w abio 3592 UE 03 61 afi: flags: cJ
-lifiV5 sLsm gnlsd 578 519350q 30 euqzj 3n33933kb xka ban gulfloma in ebtssnd
dsiaud 15301 313¥3 Juoqqua oJ evizknuumoa £5301 o3 llbflUOD 3d: yd 9145
.oniJlVlJDI noizxnuze

“33W35d nolanihzoon 30 5951 ad: Shanna ban 8&3833 basifiU ads mi GA
3n:mninVog u53u33d as {law on Jusnnxsvna has aquoxg ervlzq 10 0310139 9&3
n UYQI dutnfl u; yilgnii .msldoxq euoixsa s bsanscszq and BJnsnzzsqrb
131008 has fisianfi 30 Jnmmaxsqud ed: n1 bajnioqqn aaa 7931330 Isolbah 101993
alau s yiiaujnavfi Y.ajxs;318qsb aucixnv i0 izow an: sjsuibxoco 03 yjixuaaa
-d5389 9d 25m daiusd baa gnijora 103 sauoxgnlzsalD lanolin“ .2 .U an: 9311
.8310119 anaqnasvog azanibxooa ban asllszans: Isdazu} oJ b96311

3!:iair!‘hs'-fiia~k fiJflr-‘Uw U) 0.1 snafu-39'} .3

 

 

$33335g13 has coasdoa deljlua ,BbflflBD ban osjana bsnlau 9d: at 1A
8310139 831 331339110 Yibagflllfi roi basialaixo yjqxndo nood oad aniaiaxevbs
~08 B'Jnuunuuvog 5d? .smaiov svlaaooxs as :03 as llsw on .ns1blifla on
qzjaubnl 10 Juan 19g I anvs 03 baJnuoms Isvsa svsd ojxolls onoblnuo b91153
bvtnqéub gwjaubni 9d: emaksljfzo o: sanoqa91 n1 .asxuslbnsqxs anlaijxevba
ninjlwfl n1 bsau {Ibsissqgj mead evsd fiaidw Bjnnwzgin anion $691 01 iluezi
2Bbbfl33 bxa .2.U ed: at beau In3n£ 919w duldwtnm

30 mto) am: 89353 833Ub01q oaasdoJ 30 antaIJISVbA

amazib on ex fliuflr .ebQSId lsublvlhnl io Quinlaxsvba

10 uawqfiuq 9&1 . . . . afloma on exsiouo-noa OJ lasqqs
,b;aisx;uuu bnan ufi: 1198 o: yiqnta at antelzxsvbn br::d
uanqxu ad: 3a Lnavd and; 1198 03 aussm (ilxsmlzq dolnw
.abnnxd gnleqmoa i0

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331u1313v95 Ens nuad 347”“ and sxsfiT .aulioaa svl:esasa
.fi*w~ efloma 03 begxu Head svsd owsjuma finihw n1

 

311

arch-ugh tho lupouitoyom'pouuoovor thooao‘of.

16 to purchaoo cigarottoa it cannot be oaid that any

oonuioctunot in thio country hao broujht a.diapooportion~

oto voight of advortioing to boat on thia clan of coon-or.

tho tobacco oonufacouooro halo oovoo'anoouragcd cooking

by ochoolchildron and hoooauovor in tho olightoot dogroo

oiood adv-etioing at tho-«. .
inch. it not not gooomtol action in tho Unitod itotoo. Gooat Britain
ad Cuoia h- «mod to uploto tho advootioino of cigaoottoo and to
lioitohcpooorooidildaootothioadooniaiop‘ -~

I“ W. M hoo attooptod to fotootall both nogativo public
opinion ood.uoooooooot~oooiootby-octiu3'1oluutotilyo‘ no H.62y aoly<ooo
utb attot to “look oi tbo .rqort oi ant-m Collop ‘oi flyoiciaoo.
tbo woooo iod-toymolutatilym h‘odvottioioycoio wicb ooo «
pooboblywooodvlaooo oo o!io0ol by both tho JIIIICllmoll.Gllldtlnftohlfito
iaAoacciao. Ibo Ititiohuindootry colouoxolodod-oly ciaoootoo:aduar:iaan
‘to'dtidl sum-m tbocplo-iooo of ooohinu foatutod convontionol
horooo of .tho you“ would to-onlzioooo. moo, or oocial “our:
or il’lflldileIUOI aafioty at any brood. Iho‘ioduoooyaaloo auoood'touaoooco
doll-III oi tobolioion odootoioiou-tofiohildooo by alt-looting ti'oootto
cum. homo p...’ m min: tqortod mom: to -
Ihio agoooioom tbofioojotzltitiohrtobocoo oooponioo:bod ploood about halt
a: an: oiglototoo:~ooioloxfloio|=~ hooto tu- : u a pan.“

'3 loin to hitod in...“ ind-om oolhdiociplifl’hoo h.
"ta-u by mm. m ooooodl'loyal cum-fiat W toport.
wgwg. whim-a a ”nan-autumn unmoun- an
OOio' oooo odoootiooooooo oi tho typo ooolodod oootioood to appoot Iot-
alao bra-a- oi'oijarotuo.”.u.s '--.-' .-: .......~. :-;. .z
‘ 'lltilottbo-otatooooppotood .loitiob looodcaoting Corpototion (BBC) did

Mt corry any co-orcial advortioing tho Indopondont Iolavioion Authority

..«4

 

 

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3.1330712: L:-;,;L;'fl.r')3!sa ‘xwur: uvmf a13'xususiwuua 03351.03 35.!
sawyib ataga lie an: at maven HVBd bxs us1biid3£oodoa yd
”.munn 33 gniainuvba basin

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03 has 29:39:53}: 30 3HILIJIsvbs 9d: essiugsx on bonqmsazo Bad shuns) has
.3nial319vbs aid: on nowblina 30 s1uaoqxs 9r: Jin;i

oiidgq evijagnn dch linzanuo) on Lflqusjjfi asd yxjuubnl oansdun ad?
9H0 yiuo .3391 nl .lexsanulov 3n1333 yd noinys znamnzsvog ban coiniqo
,anulalaznl 30 9501:03 Lsgofl 9d: 30 Jxoqow 9d: 30 sanslax odd Ionic fiznum
ahw fividw abua antailxavbs nu bsaqoba yliusjnulov {iiauhni 033840: adj
oaasdoj flLibEfiBJ has asaixsmA 9d: dnod yd lsbom o as 19351 bsau yidsdozq
~$21319vbs 9J337£3i3 (no bsbuluxs aboa (unaubnl doizlxa edT .oaixaaubal
lancijuovuou b lujaui :Muljuma 30 oaxuasalq 5d: buslosdqm9~zsvo fiolfiu 33350
:aeoaaua 151908 30 .sonnmox .aaaaliasn 01 bsiasqgs 333u02 9d: 30 asoasd

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is yd nazbilfia on galelesvbc noioivslo: 30 etuooqxs

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933915§io gniinain
_, I .‘ n I Q .. t. ‘

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31nd Juoia baooiq bad aainsqmoo ooasdon fialnrxfi Iotsm ad: sunnssxgs elfiJ

Gt - . . . . . _

.m.q Q 03 Y moxx azuod 9L3 anxxub olszaxammoa 933935313 Ilbfij Io

mood 85d suilqioalb-iisa {jjeubni dnuo 893833 b53163 9d: nl oA

.J:oq~3 enuioluqdfi i0 5391133 15203 bnooao odT .aolnlza yd bsnoinaoup

953 darw nova Jed: bsjauggua IYQI ni badeiiduq ,wnH dzféffi bog fw‘?«r%

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II" ,n : . ' ‘
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bib (3R4) nutjsxugfiuD grisnunbnonfl doiaizfl baJququa-szgjc 9d: ejlflfl

Yltxofljuh nuiaivsiJT JfihbfinQWQHI ofiJ Rniallzavbs isiojammoo ins VTYhQ :«i

o

312
cortiod about 815 Iillion a you in cigototto odvortioing. Aftor oovotal
yooto of doliborotion on tho nattot tho govornoont inpoood a but on tolo-
vioion ointotta odwottioini on 1...... lot. 1965. Soaking _o_oi M £12!
notod in tottoopoct tho following pointoz

lath of tho inctoooo in upondituro on advortiaing botwoon

- 1955 ond 1965 woo duo to tolovioioo cigatotto odvortioing

[which wont fton nothing to £7 nillion in 1965 boforo tho

boo]. “to: tho bon on tolovioion odvottioing . . . tho

oxpondituro on odvottioing cisarottoa toll ad thoro woo

‘a aimltanoouo tioo oxpandituto on odwottioin; oi pipo

tobocooo and cigoro. ‘ ‘ ‘

“bk 2 ptooonto data on tobocco induotty oxpondituroo on aaloo pro-
notia of oimttoo. tobaccoo. and titan botwoon 1955 ad 1968. ‘61::
coupon achaoo woro tow ad intonittont bofoto 1963 but oinco thon thoy
havo bocooo tho ooot popular, ton of ooloo proootion incroooing £ron£8.8
innu- in 1963. tho tint yoa't of thoit. intonoifiod uoo. to£35.2 Iillion
in 19“ in toot to tho tobacco coqaioo.

Tb nowotnnont hob nought .to .nogotioto with tho tobacto induotry to
obtain wolatory oolt-diociplino. 1n Juno. 1966 tho govotnoont anotncod
induotry otroooat to voluntorily lioit. cioototto odvootioing through
ptooo ad poototo tot oi: nontho boginnin. J‘ao lot. Tho agroooont alao
woo to and advottiaing in cinonoo ad on todio on capitation of oxioting
coottocto. 1’3 In addition on ondorotonding woo aloo nachod to toatrict
tho diottibution of (too onloo. Tho ogroooont lapood whon tho sworn-
oont ad tho induotry could not octoo on tot-o tot continuation.

rot oontho.- voluntary anon-at to olioinoto coupon ochoooa'had boon
couch: oo pott of tho nogotiotiono to toduco cigatotto odvortioin. oxpondi-
tutoo. but whilo Cartotao. Ltd. ad Gallahot. Ltd. woro willing; Inoriol.

tho largoat cigarotto oaufoctutoo. oofuood.

I

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316

In ennonncing the deedloch hobineon. Minieter o! Beelth.‘eugge_eted
m:‘ .. .. . .. I- e . ..

[Althouh] there wee e genuine deeire on the pert of. the

induotry to reech egrecnent on the linitetion of pro-

eotionel expenditure I. . . the conflict of co-erciel

intereete betwoen the coepeniee ad the enxietiee ebout

their eheree of the eerket fruetuted ell efforte to

device e formle for egreenent. ' ' ‘ '
Induetry expendituree on gift coupone hed increeeed In everege'of “.8
per cent eech yeer between 1963 end 1967. Between l96$ end'l966vvhen
totel tobecco edvertieing expendituree declined 27.4 per cent (with the
elininetion of TV cigerette co-erciele) gift coupon exnendituree increeeed
87.7 per cent. By dune 1967 coupon brende held 55 per cent'of the ciger-
ette eerket. 15 11.61.53 ekyrocketed tron neer oblivion before 1963.

leperiel Tobecco. which hed benefited loot froe gift'coupone in in-
creeeing ite elreedy doninnnt nerket ehere. defended ite unvillingneee
to egree to lieitetione in gift coupon'expendituree. while et the e-e
tine Ineriel egreed to eoderete ite other edvertieing ex'pendituree. The

‘I , r. I

candy co-ented thet:

u. do not believe thet if coupon treding vee‘vithdrnin

toeorrov you would no eny eignificent difference in .

enoking hebite in thie country. Therefore we think ”

the Wter'e propoeel irretiodel .d not eccepteble

to fie. ' ”' ‘ “
Inperiel hee celled gift coupone “nerely (deferred eevinge, e kind of'tringe
eervice to the public,” 17 ‘end "e forn of orice coupetition in no wey
coepereble with edvertieing.” 1" Iqeriel'e coqetitore' in eherp contreet
fevored voluntery egreenent to .evoid the'ooeeibility of roetrictive'legie“ '
letion,'ee:well ee to protect'their threetened nerhet eheree Iran the '
poeeibly ’glooey coneequencee of continuing coupon ever.

he united induotry front eg'einet .reetrictive neeeuree‘iee ‘ehettere'd

by the feilure of thehinduetry ad the ‘governnent' to workout e Golmtery

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31‘

In ennouncing. the deedlook lobineon. Minieter of neelth..euggeeted
m“ . .. . i . . I. ~ .. .

[Althmh] there wee e genuine deeire on the pert of the

induotry to reech egrecnent on the linitetion of pro-

notionel expenditure . . . the conflict of co-erciel

intereete betwoen the conpnniee ad the axietiee ehout

their eheree of the eerket fruetflted ell efforte to

deviee e fornule for egreenent. ‘ ‘
Induetry expendituree'on gift coupone hed increeeed ‘a' everege of 61.8

per cent eech yeer between 1963 end 1967. Retina 1965 end 1966 when

I
25:24.2?

totel tobecco edvertieing expendituree declined 27.1 per cent (with. the A 9‘ I
elininetion of “cigerette con-erciele) gift coupon expendituree increeeed

87.7 per cent. By June 1967 coupon brende held 55 per cent‘of the tiger--

15

ette nerket. bowing ekyrocketed fro. neer'oblivion before 1963.

Inperiel Tobecco, whichhed benefited-net fron gift'coupone in in-
creeeing ite elreedy doninnnt nerket ehere. defended ite unwillingneee
to egree to linitetione in gift coupon expendituree, while et the eae
tine Iqeriel egreed to noderete gitedother edvertieing expendituree. The

2
..ae'.

may co-ented. thet:

g-‘I‘ei'.'.,

We do not believe thet if coupon treding wee'withdru'vn

tenorrow you would one eny eigificent difference in ;

enoking hebite in thie country. Therefore we think ‘ "

the uinflter'e pron.“ irretioe‘e‘l ad not eccepteble

to no. ' ° “ "
Inperiel hee celled gift coupone 'nerely deferred eevinge, e kind of fringe
eervice to the public.” 17 end “e forn‘of price competition in no wey

" ‘1'" Iweriel'e coqetitore in eherp contreet

conpereble with edvertieing.
fevored voluntery egreenent to evoid the'poeeibility of reetrictive legie-Is
letion.'ee:we11 eeto protect their threetened nerhet eheree froe the ;
poeeibly'gloony coneeqnencee of continuing coupon wer.

lhe united induotry front eg'einet .reetrictive‘eeeeuree'wee *ehettere‘d

by the feilure of theninduetry ad the 'governnent' to work out e wolmtery

 

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315

compromise, end the unbelenced situation within the industry ceueed by
the repid success of coupon brends. The Times observed in Merch, 1967
thet "over the pest yeer the tobecco men's fecede of cele contentment hes
diseppeered in e cloud of confusion, wrengling end beck-biting." 1’
Cerreres. with only e tiny portion of the domestic cigerette market.
reected egeinst this isbelence. This resulted froe the ebility of those
menufecturers elreedy engeged in coupon treding to repidly improve their n.‘
positions es s result of govern-cot "interference“ thet hed elinineted i7
television edvertieing. 1° Cerreres begen e two-pronged etteck: to increese
edvertising expenditures (including e request to resume TV cigerette ed-
vertising) 11 end e seething stteck on gift coupon schemes: J
This fore of edvertising involves offering 'rewsrds for
smoking' on e qusntity consumed basis; the levish cstelogue
could be seid to glenorize smoking end certein erticles
offered heve eppeel to young people. There is elso
evidence to suggest thet it mey heve e perticuler ettrec-
tion to young couples setting up home end, certeinly, thet
it encoureges heevy smokers to rennin heevy smokers.
Cigerette menufecturers heve seid thet their products ere
offered to be enjoyed in moderetion. es ere neny other
products. end the extreme increese in this forn of edvgi—
tising is herdly in eccordence with such en ettitude.
loneld flumlsy. Cerrerss cheiresn, was quoted es ceiling cigerette gift.
coupons e “merry-go-round to hell.” 13
Thus. government efforts to orchestrete voluntery coepromise end
cooperetion were frustreted by internel industry competition. This
internel conflict probebly reeched its height in eerly 1967 when Imperiel
unileterelly dropped its cese to retein reteil price meintenence. Although
the compeny quickly reversed itself its coepetitors cherged perfidy end
After ecknowledging the feilure of efforts directed towerds voluntery

industry ection. the Minister of Beelth sought in Jenuery. 1967 to impose

Eli

1.

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not. u puvm tau-try mm- .mud :0 nut. that “flu-um
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m oo-aotad 1a hia claoaic otody Parnmt that "tho iatudo'ctioo

daunmat manhoohopttitam.1touoftha.mhoda
otmdahyvhichttiohopod, induooouatoohtahcooomt
mart m Insulation.” 3‘ I. oootiaood «pl-mm that:

no Gill-t coalition ito attitola to all puma

aolhcra' 3111a and a lint-tor uplaina tho Govorn-
nt'o loci-1-. a- whip- ato 1n attoodoooa Id

'11]. ha pot on if tho Gown-cot coooidcro that tho
an ought not to you. If this to don- 1t to am
that tho 3111 '11]. ho dafoatod. Accordingly. tho 35
warmth 'hloub.‘ or ooctultty to cocoon-.1.

it: come mm'o tut-Ian“. «tom. ulna mac-bl. has.

and mm. at hath Wanda-a mamas. 36‘

nun. 1 Labor HJ’. . W- tbs all ”unattama" atatoa a

ion out.”

cafl «1.1-nu. to “or! half thoy on! Mac tho out to can: hoolth
fro-mt. no non pm'otuou‘mwmw
factor.“ “‘M to ‘ptflh‘ oluauttl anno; ltd tho! ”Mu"m1d
to shot a all toachoo-ttotnio'. mum on duo Moro o! ctgmt‘u

37

m; to ”racial mun uncut. ‘ um!- um “It also.

caught to placa ironing. a cigatotto pom a to tho Unitod Statoo. 38
Individual mounts hatcaho proooond both Labor no Coourvativo
govatoaa'ato‘ hy qua-tion“. gown-ant actiooo‘ ot’ inaction“ dating tho“

3’ 'nu mom a aunt nu

“manuummum.

m to taco any cohort-using” «actions {to- HJJ akin; vhou'govoroaoot '

action coon ho hpcctod on tho cigaro‘ttc‘ cooking-hoolth p‘rohho.‘ -‘
and that 1. propoood tactica- (um-cu named of m tum

'1" citatott'o advortioiog) hao'oftoo initatad Ion-lotion W or Cabot“

 

- . a

15110 asiuzuq nuiJw siufi 93vuLi naI 9&3 Isbnu bsssdub x13913d 913 $321

.3 man» uViJnla;;2l baa9301q s Janiagb has 10} 2309503538 $203cneiqx5

. g . .. .,. . r .. .
30:433b013nl 9n3' 35n3 awrra':?<a {yuan 31235;: exn n1 bosaoaxoo agnznngL

I" ,a- .. n—A-'-.v-o

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abudxam an: 30 ano el .gnlevsq 331 ii sqod on 9d 919d: 31 nova iiifi 5 3°
3UJMR13VUO nisto 03 aaxuoa sub n1 .bsqud at 31 doldw id changsgujq 10

:jsdj QHiRleqxa bsuulznoo 9% $8 ".nclanlcigol 103 370qqut
ssnviuq lin on abujizna 931 nzoblcnoa JonldaD ad?
-uIson 333 eaigiqxe Iszaintm a has all)& 'auadmaw

bus anacnuezja at 9:5 aginw 3dr .noiolaub o'snaa

an: inn: axfiujanoo Jnnmnxavod an: it no Juq 9d 11;w
ninjzso st 3i snob 31 Bin: 11 .sasq 03 Jon argue 111a
CE 9%: ,lenibroooa .Lenabisb 9d lilw 1113 3&3 Jud:
.iajjuauvs a: takinajuan 10 'galoasld' a'anamn13vao

svnd .iuieaanauawu slidw .3310339 svixslaigal o'oxxcdeH b13390 118

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i xodaJ bns 5v123vzsaaoa daod 30 anifissd on: bad
situnl .Lsaoqozq nasd and noijbluigai 151819vv13a03 but amicanqmosag

s ninnnna aegnjoaq 933915313 113 Jsd: bsaaagguo ..?.fi IOdBJ a .Jzivaq
fijissd 319d: 03 iel: 9d: sclziuim as: yadfi wad azaflcmo on gniuislgxs L153
~uxsx magnum: 2d anxuninaaqxs no x33 8 bsaoqoxq onln ad .3niinma max}
biuona DOIJDUJJBHI 35%: has gnifiowa ensuingia snomozq o: bsngiaob Busiujasi

933315313 30 exaguhb 9d: no usaxuoa gnIaIBIJ-iadsssj lie at aavig 9d

YC . .,
oais svnd 8330119 svxnslataoJ .auoaasi snsxgzd lsnoawsq nl Quzxcafl

£4
8:: ,;‘ r o -. f o

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9Vi3£V128503 bus uodsJ d30d baxueauiq 0315 evsd cjnablaalb lsubivibul
333 anizub anoljssnk Io ancrjas 3n5nn19v03 galnoinooup yd anaunnxsvug
, . . i , QC , - . . a . P
and £3133“ io Ionatnth an! .onummoJ 30 eauoh on: at b01131 nmxsaany
3n9mn19v03 ucjw gniJuc 3.1.x man} auoliasup aniaonxusdma yuan 9353 03 bad
.malaoxq usiaad-anlioxa 933935313 9“: no banasqxs so bluoa nuiina

no mad 911 )0 #013393x9 9d: fljiw) nisjl18 n1 bgaoqoxq 81 Jud: noijna

havafsb 30 :3L05q noisulaigal bajujiwl nujlo 85d (galaljusvbs 33393Pgib Vi

319

in other countries. Thctc hoo in foot boon no legiolation poooedfi in
Britain to deal with tho problea. Croat-notional examinations botwoon
mmto and botwoon tobacco induotrico have been scared to sharing
notional ooporioncoo (logiclotivc and othcnticc) with colloaguoo ond
"pm" in otho: coontrioo. tho florid ContoroncoAII ”in: and. hoolth,
hold. in broth in 1967, in coo cxooplo of on oifort to intonoify croco-
notionol. mo of tho prohloo..- But ooot offorto of savor-loot, outi-
nokiog mgr. adoiniotcatoro ood/or tobacco hooinoooooo or ito-on to
ioctoooo chorouooo by pining commotivo afar-tion oro munitions}
at ofton lio hiddon in porooool ccrtooooodooco filoo, privato action
.1 tho‘ onpuhlicizod oxchongo of data and progroo ootorialo. For oxaqlo,
in “111.519“ too mountatiooo fun tho “.8. dhtidlol Cloorilyhouoo
lot ”1‘ ond Health vioitod Britoio to doctor with Molth: officialo on
tho Btitdoh onotiomo in cubot'in; tho hoolth hard. of cigarotto cook-
1:13.49 Undouhtodly on topic of thoirt coovotootim no tho thou rcccnt
Britioh ha. of cioorotto odvottioioo ito. mom tolooioion. Thuo
“Indium WWII 91:03:. in.- diffm ”trio! arc to ho oxpoctod
nod _oyflolipo tho iotornational naturo of tho cooking-hoolth probloo ao
coll ao tho clooo tioo bow tho tobocco induotrioo, worm-out officialo
and mm”. in moth}; Linn m mmdmua. ,

D- mMmg 63mm " ‘

.81.: My Godbor, Chiof Hodical Officog. of Mth hao ”do verbal
in Add»: ciurotto mum nod hoo‘ottioolatodtho concoct» ood. foo-tro-
tion of lolly hoolth outhoritioo. Ho hao octod g thia-m “mtg-on].
”canto of tho nation and hao publicized tho dongoro of cigarotto
who: 10!" sootiowd to ”more. for mom,utioo. Io hip yoarly
mount on t!“ 9‘!!! of thoupublic hoolth in Britain he hao progroooivoly

‘
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has awninviioo fljiw (oaiwtsfizo bra svjjgiaigel) eosnglweqxs Issuijzn
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~13n5 ,qufin33vog 30 ajwofijs Jean Jufi .MSIJOTQ 5d: 30 aaunewsws lsunljnn
o! zueflfisi In Hawav9n‘nud anundbz znihws 810781383fl3fibfl mn1g01q xnfiwma
buxiullfluqnu mus nnijnm1olnk svijnjsqwna aninisg yd aeanozsws sexowgni
agnijsam sjsviuq (39113 sanshnoqasuxoo ignmajuq mi nebblfi ail 09310 baa
,s‘jnhxe 101 .airijQJLm un?3n1q but 5335 )u agqnficxe basIQIIduqnu ad: has
ssuofigniuuuij Lnuoljnfi .3.0 and max} eavljajnvasqu1 ow: 6391 .IIIQA at

no aisiailio E3189“ 631w 193303 01 n153i1d b93iaiv fljinsfl be; gniinwa To}
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runf .HHIREVOIfij isiaxencoo moji gnieijusvbs sjjajngio 3o nsj n2:1?33
59335423 9d 03 518 asixjnuoo Janxuillb n1 amsugouq nssszd 853311fiiimia

as msfduuq dJlLud—gulimme 9d: 30 exujsn Isnoijscxsjni an: ssiloduxe fins

alsifiiiio Jnaunjsvog ,asijjaubnk Uganda: sflJ assszd ask: 33013 oi) as {.31

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figfth 531033 Ii? 3m 15? [xin’ fifl” Jf

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«caveuwi ban anjafinoa 5d: L9391u3i316 and bus gujfiuma sjjsjagin Janinaa 1n»

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{5103 of; en undai aid: no bsjss aaa
533:9‘1‘1‘1') 31* 8793567111 96".! {393:0} {Jim} 861i has noijnn 3'33 30 39'3il‘~;13:~:r1;)
wiggkw affi “I .nnijas Jnflmn13vng 107 SYUHESTQ 01 baunlflnoa bnn 37IwWfi?

iflfiaqu 25d SJ ntajtua at djinqd allfiuq adj 30 93538 sflj no a“ 34~ws

320

incrooood hio otitioioo oi cigaretto ooohing. In 1962 ha ooaontod that

”alooo thoto' io a gtoat rodnotion in tho aoohing of cigatottoo. tho nood-

i

loao looo oi lito till oatinoo ad incroaoo. tho tooto by not out to
goaotally than. tot thoy aro not Doing flood.” ‘1 In 1.966 ha aaid that
”it not ho‘tho hopo‘oi ayono who taood “tho tooto that ‘oigototto ooohing
ooold noon to a and in Britain.” ‘2 'mu nu ohjootivo 1'. m oiliino-
tion of oigatotto ooohing Godbot dooa not advocato a gaoral prohibition.
In hio 1961 topott. ho wroto. I'In tho oltioato aalyoia in a (too aooioty
tho control at oigatotto nothing ooot toot vith tho individual but thia
dooo not ooa that ho ahould bf pooitivoly aoootagod to ondangot hio
hoolth. " ‘3 , ' * w -‘ ' ~

Bo o_otiaod tho ltitioh aptoooh “if“. a oingularly pottioa
adiaoo at tho Fitot Hotld Catatonoo on Booking ad hoolth:

Hhatooato ttyingtodoiatopotonadothoooohorthat

ooohiog it not only a long tota throat to hia fotnro.

hat alao a induooo’ot to othota to adopt tho aaoo iolly.

ho aro in foot oohing for a alaot intinito nnaot of

noto oi oolt-ohnogotion oo that a dirty ad dongotooo

bait ca ho alininatod iron oocioty . . . o Blatly out

ttoo ohjootivo to tho and of oigaaotoo ooohing. ~
la oootiaoods

to can to oortain nay aro that 50,000 doatho a yoat

in Englad and waloa aro ditoctly duo to oigarotto

Dating ad that of thooo doatho tho nuhor «cutting -

hototo tho ago of 65 ia anifioiont to can thadooo

at It tho lo‘oot 150.000 yoata of nothing lilo.
can“ too .1» cm.“ cm “tho oholition u oigatotto looking oonld
rodnoo Ititoin'o dooth tato by a tath _ad vothtng th loot iron oith-
oooo by oath noto. no othot oxotoioo ia paovontatlo adioino could do no
loch.” ‘5 ' ‘.

Coaot‘o aoioioiaoo ot- oigaoo’tto adyottioiog and both colottol ad

Ittilsu —- In his ~19“ Wort lit-mtot- -

. or

1““.Iw-— —. —<' '

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35m) bagnnwnco ad Saki “I .gniflona ajqungto 30 malaizija aid LSBZSTDKI

~b2on 9&3 ‘asljoingia 10 gulinma 9&1 n1 nuisnubot 35933 a 81 Quad: acsixu"

9d Jaum won {J 33:31 ad? .nasuxaul has sunlinoa 111w 911i 10 tool GUbI
. t . ‘ 1A H '
JBHJ JILB :fl Ootl n1 .boasi salad Jon 933 29d: Jud .nvoai (listuuog

gnkiomn 931319323 and: 3335} 5n) boas} onw onognn 30 aged ad: ad says 3:"

‘ 1
in)

«aaimils ed: at 9v13uafido old slid? ".nlujjza at has as o: Duos birch
.aoisldidoxq itwsuug o assocvbn Jon each tadbou salient onnsfiogla 20 3011
2331203 9913 3 n1 akng'nns sssmisiu 9d) n1" .saotw 3d .azoquz (091 old nl
niiJ and ieubivibnl add dalw Joan Jnum gnifiumo oafisxngia lo £01330) 95:
old tsgnnbns 03 bannuuonnn yinvlaiaoq 9d bluodo ed and: atom Jon snob
{é . .
".ujlnsd

ntainzq qixsiuguio o ouoisd datozqqn fialaizfl ed: boxixtuuua on
:nnitsfi has gniioua no sonatglnnD bile” 3211? 9d: an oznszbus

Jnfia zaéoma 9d: abnuaxsq 0: ti ob on amigo: awn 9w Jndx

.33u3u} old 03 Josxda NIBJ gnoi o vino Jon oi anléuwo

.QIJQI amaa 9d: nqobn oJ a1sJao 03 Jnamsouhal an coin Jud

in 133xua 931ni3nl aaouia as to} nation 3331 01 033 SW

anoxauunb has 2331b 3 nafiJ on noianaandt~ilsa 30 8135

two yljnuid . . . . 2391303 mot} bannnknlls ad on: aided

.3niflona 933915313 30 bno 9d: at svlnastdo out:
:bsunisnuo 93

tony n ofisnsb 000.06 and: 91mm {nan alsjtoa ad no: 9w

323915313 03 sub (Isastib 9:5 osinw has buslnnd al

galxxuano zsdmun 5d: tflassb 983d; 10 and: ban gaifiawo

oaol‘odi noun: 0: Jnelnllluo at 63 30 923 ad: oxoiod

.9111 gnlfltow 30 81392 000.021 Jenni ed: as 30
blue: 3niiumo 913315313 30 noi3110dn 953" and: banltlo coin and tsiboo
-£3ia nor} Jaoi 9min anljxow bun djasi a 2d 9331 dnssb a'niaalza SDUU31
as on biuoo enlaibnm sidnanavszq n1 selatsxs 19d3o on .szom dang 2d neon

86“ H r

bus iuixoiua dsod 9:3 gaittatavbn 93397521: to amalalolta I'Isdhod

:QJOtw 9d Juoqaz sac; old 51 .gu;;;¢

321

hitch advortiaing appoata to bo doaignad to ptoaont
cigarotto aaohing a an adult. virilo. aociablo
activity with conoidcrabla rooatic Opportunity. .
Tho aad reality ia that ito aoquol io diaabling,
ito ate-a often offonaivo ad ito rooiduo dirty. .
It would hava boon infinitely batter for thtéworld
it tho tobacco plathad nova: boon-group ,

Ilia atrag talk too not baa notchod by town-auto]. action. . Ila analyml
tho lioitod auccoaa of tho govarnant'a pm“! in hia 1967 cafaronco
aoc-m '

Ho hava triad in Britain to not tho-map about tho
dongora of. anohing actooa and I think wo havo auccoodod
in aching tho public awaro that thooo danaato axiat
though not thoir iaodiacy or oxtont. No hava not
ouccoadod in putting thia acroaa with outficiant totco‘
to dotor tho oajority of. adoloaconto tron atarting or

it tornado “I. Mioflty‘yf mmdical..dulto who
alroady aaoho to atop.

Ba continuod. propoaing aothor poaaiblo govotn‘oontj tack which hao alao
boon giyoa natioua conaidoration in Canda:

Pothapo wo hava oodo too littlo of tho othor aido-
.a££octa of aaoking. ad of tho ganuiaanaoothotioood
ouiaaco objactiona of which wo non-aakora aro ao
- Ink. nn.mciM.than.tM amok-ta. .

r ‘ I . ,
a- ‘ ' *‘VO ' in a;

chbot coaantad in a latar roport that”: vat taboo ammo opinion ..
tumor monoclonal: mm. amount in .cooam. .mt 41cm!” 31th
ethor ooohoto. aa boing accoptoblo.” ‘8
adiinally in 1920.1». mm“ thamillinm attrition ;
mutant-Id imagining-onto funny- (no. thq .mlsioafiaalth emotion:
Pathapa out oooiatyhoon't toad tho brutal truth that. x.
wo roally wat to got rid of tho cigarotto. With an ouch
involved in «auto and agricultura and ac aoh govarnn .
oat incoao tron taxation. it ian't autpriaing that tho
- vaico of raaooa ia indaod a otill aoall voico in a babblo

of advortiaing ad oocigl bohaviour. all oncouraging tho
aaa “tho cigatotto.

nu aboanca of .Iovomt initiativovoo aritioiaod by Godbor. appoara

to ho duo onto to ito own ayaiotic rolationohip to tho tobacco induotry.

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,nujldLoiu ai lsu;;a eJl JunJ al 231153: boa s“)
.231ib ambiabw est 9?. 5V?hflfiiio H3330 £3018 9:1
bfaowoofiJ 101 quJud ylsJinzial "and owns blucw JI

.uwozg ”and xuvon bad nunlq osatdon an; :2
bnxqiana 53 .uoindn ibJfiJmHISVUQ yd bfiflpjsm mead 30a and Alt: auouja £13
5309151303 (oil aid nl mongotq e'nnomnruvag 5d: 30 aasssuo bszlcli sfiJ

:1§31(J';3

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bahuumune uvad aw ALI J I bns aaounn guljumo 10 aruguab
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93:03 snnlalliua dJiu caozot 81L} gulnnuq ul bsbuoauua
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05w aaiuhs lesibon-aou igégnixotom an: abouttuq o:
.qc:o o: sauna zbtaxin

oeis and {sidw ALLJ Jaom.tuv03 sidiaaoq :sfijoua gsieoqotq .tuuaijuog on
:thhusfl n1 noljtxsbiauua ouoizuo navig flafij

«shit tadjo ad: in 913111 003 abou SVEd ow ‘Qbfljuq
but. 31395.95.“ oniunnx 9m ‘10 bus guin'uca 30 “3:219
02 sit ornfinma-uuu 9w daidu 30 anutJooido ounteiuu
.cnoanma on: non: tuolaouug stow doum

nolnjqo aILQuq a one 03 annw I" Jud: atoqar 13331 a a1 hasnsmmuo usubod

diiw YZnQWOD n1 quoxo .qunqmuo n1 gaiioma oLIsaai isgnoi on ath guintyi

8h . .
".siquzqsaas ankod an .crnaoma zaujo

fie 311d 30 ennuguxiiivnu an: hsgbyfwcniao 9d LVQI nl {llhnii bah
:JoiJe;up “Jinan guiioma 953 9:53 KLAHRIE o: Jnsmnnsvog th baa Vioiaoa

35$: dJou injuud 9d! bonni J'nesd YZSIDOB xuo qnnxsfi
dtum 08 HJtJ .51391n313 on: 30 bit 353 03 Junw {1159: an
-s:0v03 naum on has nIuJIuniIgs bun Botswana nl boVLQVni
3%: 33d) gaitiiqnua J'nai 31 .nolean mcxi smoaui 3x3“
sldcod s n: siuv iiama lillu s boutul a1 £0883] io agiov
an: guigstuoans lin ,uuoivsnod Ifizaoo but guieizjovbn i0
.933915313 an: in sea

avsnjns . sired 2d basislsitn on .svljnlairl anmn1ov03 in osnaudn 95?

c273auhfii 0?Dfifi01 ad: on oldennlxnlsr aiJolquc uwo 831 on axon an: 5; c:

322

through tonotia. thd to tho indootry'o .cootoihotion to ooploynont.
notioooi otoduct or corporoto profit. Tho sworn-out roopo groot honotito
(no oipootto looking. and goohlooo of cooking ond hoolth hooo boon
uoolodoouooondoty to ponoiooo of noon}. iootohiiity ood oooodioooy.

b .29. _T_i_n_o_o_ o-oohot colorfully notod: “of. opoooodic oooo to poiitiool
oooooooo without my viiliopooo to donooo oo noooioo o‘ rovonoo «too: do

not‘ood q no policy." 50

E. 1.13% Collongil’gzoiciono iguana-25 Soaking ~ . ...i.
loooouo on tho Ioitioh .oooonnoot oo’oct ouioot oigoootoo onohoog

.,, ,i

hu oloo c~ lou'thoJoioioh wool. acuity. in tho. louovih. action
In an htiony oonoidor um- nape- to u- outing-hoolthoontnnvorly .» 4 "
oo ofiodiod to tho boo-nil pnhliciootooporto ioooodby: tho hoot: Canon “
otmimu.muimuieng -~.:.-L— -n.:.
'soinoilic "juotifiootion o1 politic“ ootiamhoo hooqo. oluoo. ..
oo-nplooo in ont-oooioty. ln'lnoind'tho prooodont for tho onol Canon
of Phyoooi-o ooonooocing on o onoooion of public hoolth woo ootohliohod
in 1725“ tho Gallop.nodo mot-nation oo tho. loooo of Canon con-
comio. tho dioootonno mono of tho tioinu donouption of choop
um”. . _'H.,Z";\.
In 1619 King Jonoo I footod tho ropid oprood- of tohocco grain. in
ltitoin. no ookod tho Couogo of Phyoiciuio to ooprou thoir opinion on
tho qooiity of Engiioh-groon tohocco. Tho muting opinion woo portly
hoood on tho King' o won-known convictiono oppooo; to tohoczo which ho hod
prrooood ooriior in 16“ in A Countot‘hlooto _t_g rohocoo. no innotigotin;

5047 conclndod:

do it io now nonolly tohon it canot hut ho wry
booth]. at nooholooono, ond [oiling to: ohoot of

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ejllqnud 33913 ijwt Jauvnwavog 9H? .fiiloiq sjstoqnua 30 naubotq ILHGiJflS

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bed QVbu “.15.: LHL gnifioma lo exsidaiq bna pnl.ior .5 eJJaxthD mo.‘ 1
VDHULDJqUS baa (Jilldnuani Innari in anoldoxq o: (fisbuoaso as b93592:

Icol.; lioq oJ eqna 31b w:nuqa us} A :LuJOfl zlluixolos ihdwumoa eor¢T 9a. «A

ob 3&u189 ainaxsu s svia .am on stcmtb o: casngullllw qua Juoujlw erua BLZQ
‘ ".Yalloq n o: qu bho Jon
53.12511: 21*: .L' 3.21.: .1. 333:}.2'1'131 3.2...9‘3‘1-322. £32325: 52;“. ~31

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nolfiaea gnlwolloi en: mi .Ytinumcmo issibum natalxd on: not} anon coin and
2219v013n03 d3igod~galjoma at: 03 aanoqasz old: unbianoo (Iiaktd liiw 9w
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.IYQI n1 SCQI a1 nobaol io eaaialexufl Bo

Jaomis amassd and o.«u‘3as lsoidlloq 30 noiJaolilaouL 311i: :siod
93uilu3 £5203 953 :01 Jnabebuxq 3H3 bablanfl nI .YJSI uoo :uo n1 939.1uzzoumoa
bafialldszes 88W unison allduq 30 nolnasup o no galonuouoxq antlalequi 30
-"oo unannoJ 30 saun:i an: o: n01353n9893q o sham 9399110J on: "915“ (EV! mi
qsofio 30 8013mjuauoo gain}: 5d: 30 asunaupsonoa OUOZJouelb 95:

n! gnlwoxg ooondn: 30 bsaxqo blqs: 5d: beans} I asnuL gulx €101 n1
no noiniqo zlsflj aeaquo oi annlalagufl io agslioD ed: boioo 9H .n-u3 :8
qijzsq anw aolslqo galaluesx sdT .ossauon awo"3 ~dellg 3 30 lelnup 9n:
bad 9d daidw ooasdoi 03 bnaoqqo ennljulvnua nuoni-Ilsw a'gnIA efiz no bvcbd
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yxsv 5d :ud 392mg: 31 091B: {[isuau won at 31 5A
30 zxodo 35} anilibl bus ,9moeslodwnu has luizxud

323

tho porioctioo oi othor tohocooc thoc cro brought in

iron oorc Sontgzrn porto. whoro it hcth ito ncturcl

ootority. . .

Tho'lin. nocd tho ooporc to joctify clioioocion of 'tohccco plating io
ooighhorhood cordac "co coco tho lad ooy ho pocoorvcd=£or irc propcr
an. on oohocco com to olootcd rum: “an." 53 um tho can yoor
ach oorictor ootioo woo oohoo which lorhcdo tho plootio; of tohocco'io -
hglcod or wcloo. .

Tho onol Collcgo of Phyoioiao oi London hoo wioo oincc 1962 iooocd
otronoly wordod rcporco on cooking ad hoolth. Thou hcvo boon tho out
ioport-t Irioioh otndioc oi cooking ad hoc1th oiooo Joooc I. Tho firct
roporoioooitlod Soon n._ old hoolth'woo rho cod odoolt o! c docioioo by tho
collogo in April 1959 to cot up c Co-ittoc to” "roportfl on tho qnootion of
cakin; ad otooophcric pollution in rolotion to corcinooc of tho lung ad
othor diocoooo.” Tho roport woo cddrooood to intorcotcd loyoon co wc11. co
to doctoro ad notod in tho introduction: 2

l .

Dioooooo cooociotcd with cookin; now caoo co oony
.dootho tho: thoy proooot ooc of tho‘oot cholloogiog-
opportunitioo for provativo ocdicinc todcy. Phyoi-
ciao thorciorc oooo to know tho tooto. ccooidcr whoc
thoy noon. thon docido whct oction thoy ohou1d toko
-ohoooolvoo. whot odwioc thoy ohonld givo thoir pctionto
ad who: policy thoy ohonld odvocoto in tho tigkd of
public hoolth to Iolotico to tohoooo ‘oflhlooo '

Iho ocpooo cooclccod-ohot 'lthc'ovioaoc thot’cioorottc :ooohioroflco hoo
horolcl- ad dagoroco concococoéco 'io oow‘oo convincing thct~prcvontivo

4.55

oloooooo‘oro nodonhtcdly nocdc . Tho roport onuootod c cm: of

prov-otivo occoorco occipoc to rodccc too hcocooc‘. ' " t
liltcood cioc'oottoo woro propoocd no a inrowooont «or non-fi1torcd
vcoicticc‘adwct-oucc‘tocroflicicocy‘ot «moo “loot-o mm. coo '

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:gn :11:..Li£ua Jenn ou do 930 3nuesrq you: and: adionb
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sir: biuuda zed: noijah Jsdw abiaub “an: .unam y.d3
ejnukxcq 11951 9vi3 Lluofla you: ssivbo Jsdw .aavleunsns
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b-133111-non 1;vo Juu.9vouqm1 as as b96<001q 913w osJJsrraio buns Ji 1
953 aduZELS 819311] auoiunv 30 yauuialiio 9d: sonic no! hflh Hulasifizv

yd Lasaan mudJ svad oJ sldnriuub 33cm ad bluow 31" and: bojaufigua sgeliw?

324

oooo oftioiol ohoooy ad to hovo.tho rooult of tho.toot iodicotodnmho

poohot oo tholtho potohoooo could diotiuoioh c an (no. o loco officiat

..56

liltot. La! to: ad nicotioo cigorottoo woro oloo propoood with oolo

officiol pMdhu for tooth: tho “flout“ ood “run. tho pockogoo. 57

do woo archdy ootod to tho Unitod Stotoo nod Cooodo tho OPPononto
of cioorouo looking do hot {not otohihitia. Tho Britioh Royal Collogo
of Phyoiciao cloorly dofiood tho lioito of ito propoood octiooo:

I Thoro ca. of couroo, ho no quootioo of prohibiting o . .1
hobit which mt ololtooo oojoy vithoot injury to thoio ' i
hoolth, but tho aooot of ill-hoolth ad ohortain' of
“to thot to otttihutohlo to hooking to IOU. oo grootz .-
thot Ioao mot ho oought to roduco tho voot ad in-
ot‘oooing provolooco of tho hobit. At noooot both

oooiol cuota ad co-orciol prooooro outbid t9! voicoy , "
tot ooouon ood tho holnoo ooot ho oodoooood. -

m1. hokoouodciu tho dopooooooo'ot .ptooooh cocoootto, ooohoto to tho
hohit thoy-.oloo ootod-thoir--roopoooihinty ”to-noto“ tho tooto. photo-

tioo [too 'dovolopioz tho oao don-«och " 5.9

: thou tho («hoof prova-
tivo’ootun ohoold ho 'chtuno. ‘uoloooootoaooomoooc mm to how not
noun-u mu magma. " 6° no son... mo mum-on «mom
mouthing!" W to tho-.yoooool 'ooohooo o! tho ooaonttrad
moot-oaths thio trood ohoold ho holtod.

harms boo-boon hood-1o utnum- uon oo 1o tho-mud Stotoo
ad Caodo thot tho-look o! cum“ hots. ocoioot cichtotto ooohiue .
hunt“ Iho "ooly-thoototioo1".hototo 0! tho ooroiy.”ototiottco17'. ofldooco
.mmu.:.‘1._;. -. - “km ..2

It tho Gown-on do not ooooidor it noooooorx ho hobo

octioo, it io $2.204.“ oo octioo io oo yot roquitod of

tho 13‘1““. . - x. a u . . .. :
Tho moth Iooo-oodod thht "a1 cani- to mono” mun ,ioioolotion

coocorniog tho hourdo of aotio; loot ho roioforood by oooo ovidooco of

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9:91103 Inuofl 9913119 937 .noiJidiquq woval Jon ob gnijona eanuxogio Eo

:anoijoh buaoqujq 811 30 a3imil 9d: banilsb 2119913 ouLioicxai 30

a fifli3ld£d07q 30 nnrzasap on 9d .sazuoo 10 359 StufiT

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30 gnfaaaxoua bra uJ4nflu-Iiz 10 Jacomn 9&3 Jud .njlaud
35973 on won at gniimxa on aiduaudixnao or non: siil
~ni bus 385V 9“: snubbi 03 Shauna 9d 38mm aussm 3nfl3

dzud insesxq 3A .Jidgd 9d: 10 aanuisvsxq gnlausxa
suiov by} bidsuu sxuaasxq 1923 swoon bus mOJouo lsigve
k . . . ..
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9d: 03 auoioma 53391L313 Juaasxq 10 son9bnuqsb 9d: amigbslwunjss sligé
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has xjinrmmoo qu i0 hxuawom Isguuog 3d: 01 salinsqqo ac} guleijxsvin
.baJLLd ad biuode has?) 8153 led: busouvuua
393538 boning 9d: 31 ea 119w as misalia n1 b9au used 08d :nagugts sir
gnixoma sljutfigia Janiagn aoijos lhiaiilo 30 iasi 5d) anJ abhnnD bus
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325

n 63

activo cm by tho Gaol-Inc. tho abort alao wan-cod that

"docioivo' stow" bo man by tho gown-at to curb tho rioing annotation
of cigot'ottoo: .

“ooh-noto inaginotion. offort ad nonoy ohould bo dovotod
to droning the attention of tho public to tho haaardo of
aching. Spocial attatial ohould bo paid to offoctivo
Citation of ochoolchildron, but non ohould aloo bo nado
of ovary adorn nothod of odvortioing. including pootorh
proo- suction and obort icon- on radio ad onlovioion.

In addition tho roport propoood noto offactivo rootrictiono on tho aalo of

tobacco to childron. 'l'ho Juvonilo Inching Bill. originally paoood by

Parliaont in 1906, which forbido onoking by childron undo: 16, 65 ad

'\

roalationo forbidding tho oalo of tobacco to childron oro vidoly floutod
ad cigarottoo aro frooly accouiblo in vonding nochinoo.
'lho roport aloo auggootod logiolotion to "provont. or at loaot to

rootrict tho advortioonat of a habit which cauooo ouch vidooproad injury

1‘! ti

to hoolth“ ad "would provido ovidonco of official accoptaco of tho

I.

roality of tho haaard."1'ho nood for at loaot oynbolic govornncntol
actiono indicating. tho ooriouonooo of tho ptoblan hao boon rocogniood by
nay cooking both provontivo noaouroo ad tho nodification oi prooont

aching bohovior.

Uhilo roco'ioing tho linitod inpact of incroaood cigarotto taotion

on Inducing conot-ption, tho toport ouggootod tho poooibility of. a ditto:-
atial incroaoo in tobacco taxation vith a roduction of taxation on pipo
ad cigar tobacco vhichnight "porouado nay cigarotto onokoto ‘. . . to

chago to oator forno of cooking.” 6?

Tho toport aloo ouggootod conoidora-
tion of oxpu’inontal ati-onoking clinico which could bo hold in hoopitalo

ad choot clinica to holp thooo who find difficulty in giving up noting.

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in abvsaad 3J3 oJ sildtq 9h: 30 noiJnnJJB 953 gulwaxb 03
avixuoEE9 03 Llnq sd bioufia :UIJHSDJB lslanqa .guiéum
5.4.5:: 3d og-Lr. bluuia saw 3nd “unisihfsfooxlaa lo sown-Jobs
‘:wsJaoq gnibuiunl .ynlaijzovun 30 bcdnum axobum yxavo 30
9 . .- . . 1
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19 u£ae 5d) no anoljaixjauw av1339139 oxum baaogojq Jjouai 9d: uoIJiLLa nI
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bus .61 iuhuu noubfiun yd sniAume abiduu) doing .60Qi n1 ansnsiiju?

bojuoii ylet'w 5:5 nuz?liu3 03 agenda: 30 sine 5d: 3nibbld1o§ afluljuiugu!

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an: 30 saunqusuo inlsllio 30 ssnuhivs sblvouq Lluow" ban "fijlaafl o:
lcsnumawovng aiiuuuza 33591 as 103 Loan so? ".bunsud on: 30 2311501
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326

Ho hovo altoady diocuoood tho govotnnont'o linitod toaponao to tho
M £51 noaltb ropott. Hovottboloao. fioo yoato later. in aaaoaoing
tho ropott'a iaoct. Sir Gootgo Godbot, Chiot Iodical thicot of Hooltb
mend:

no Collogo'o toport in itaolt had a nut inact,

not only bocauoo it won an adnirablo, diapaooionato

oorvoy of tho evidonco. but alao bocauoo it no

cloarly not pronotod by Govoguont, but by a dinin-
totootodvgtoup of oxporto. , . .

no ronott ia probably tho ooot iaottaot oinglo duct-oat in tho
cigatotta anoint-hoolth oontroyoray. Coniag chat to» not! bofora tho
toloooo of tho Surgoon Gonoral'a togott tho notorioty of tho Btitiah otudy
gavo tho anti-ciganotto nay-at. «rotunda. a naifoato for action. “rho
uyort anal-atod ooriona «noon and action in Jtitain and .thollnitod'
Statoo and providod _aolaco ond inonitotioo to nay who had wtkod to
obtain govornnat action oinco tho nid-l950'a vitbout accooa.

111971 the loyal Collogo of Phyaiciooa «no out with a «and «port
m on_; §o__a_1_§_§ 393. ~ Tho Collogo again took tho load in colliu'tot
tout—total action ‘to ”want ptonatuto doatha and diaablingillaooaoa
'hlbioh havoxoachod aids-1c gut-mm." 58. Tha tapottoallod tho.
ptoaoat oituatian- "tho out cial-longing of all unattaitioo for prova-
tivo'o-dicioa" {iii-Irina. It. and for manna-tot taro-Dam!
and which“ "tho Wt hao don. littlo to oath-cigatotto cooking.
which continua to iactoaaa." 70 run oocond roport within a ton yoar
ported chatty. indicata tho agoaiaod «Darn ad intonation oi .Indical
on it offoetoatina womtJactioo. Tho Gallon. $00496 .o brood
par. ”in,tbo boon thIt tho public Woo will to arooaod and that
otfootm promtivo'octioa will to taboo." 7! - - .

.m gourmont'a thototic ia criticviaod. .b! tho mat for; olaining

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to accapt tha avidacc on tha dangata of cigatatta aching bat undat-

72 In contract tha

taking no affactiva actiona to curtail the habit.
taport found that racant trcnaa in tha United Stataa hava baaa aora favor-
abla. 73

‘l’ba Btitiah rapott, lib tha Canadian approach, auggaata that "what-
an: atapa night ba taha to nadua cigaratta aching thia tadnction, and

any acnna-ic conacqncncaa, vonld ba gradual, and adjnatnanta could ba

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ravanaaa. -

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dncad lb alliala aaabic and will bunch aald ba lath graatar
than tb ta-oraty anno-1c Man. 75 Ina-var, than haa baan
littlaI afflict in hitaiat no ablab lb actual acononic coata. Iha
Collaga did mat unofficial again than lb am when
of adaman- 1n emu-alum...“ ' . '

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328

in cigarette napkin; “aoald offaat the inconvenience of eeekin. other
aourcee of raianaa-than tobacco." 77 The Royal College of Phyaiciana
alao prapeaed the folloain. race-aaadatioaa for which legialativa action

aaald be appropriate:«

hara effective public infornatiea about the health canae—;
quancea of anoking aunt be achieved by every naana and

the Govern-ant ahould ceaaalt the Breadcaatin; Authoritiea
and nawapaper proprietora to achieve lore affective publi-
c1"a ‘

legalatieaa forbiddinr the aala of ciaarattea to children _3
ahould be atrengthenad, and cigarette vending nachinaa 4
ahould be relayed free public placaa.

Advertieaaaata of ciaarattea and gift-coupon ache-ea ahould
be prohibited.

More reatrictione on anoking in public tranaport and placea j
at entertain-ant ahould be enforced. ‘ . _ ;_y

Earning noticaa ahould be printed an paclala of aiaartttaa

and, if they are allowed to continue, on cigarette adver-

'tieaaaata. . . .

The tar and nicotine-content of all narbalad blande of

cigarettaa ahould be publiahad and a public etate-ant

‘aada on the poaaibla.e£facta on health of caching than»

The Government ahould conaider inpoaing atatutory upper

liaula an the tar ana.aieatina.eentent of cigarettea.

'lbe'Covarnaaat'aaet loot beyaaa ea eaey eaarce of revels!

to the reality of the injurioua affacta of nodern cigar-

attaa on the health and econoay of the country; diffaranp

tial taxation of tobacco producta ahould ba igpoaad to

'diaaauaaga.nora haaardaaa for-ahaf.alakiaa. , -. .

linaily*thanrapnrt,auaaaated a Itahddnakcovaaalanl Callittot 3‘
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ta can:iiaahe.theuanaluet variant depart-ante~onzaanlin| and hnelth. JAt
baa-aacrthare ia no full tiaa unit ter'thia-puapoaa ea theae;ia in the

United Staten and Canada.

 

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328

in ciganntta anohing "nonld offeat the inconvaniancn of necking other
neurone of ranenaa than tobecco." 77 The Royal College of Phyniciana
alao prapaaad the following-raccnnandationn for which legialative action
nnuld be appropriate:

lane effective public infornation about the health count-s

quancen of nnoking nunt be achieved by every neann and

the Govern-ant ahould cenenlt the Breadcanting Authoritien.

and newnpapar proprietorn to achieve nora affective publi-
city..'

Ingalationn forbidding-the-nala of cigarettan to children
ahould be ntrangthened, and cigarette vending nachinan
ahould be renewed (ran public platen.

Advertinananta o! cigaretten and gift-coupon nchenan ahould
be prohibited.

More rantrictionn on nnoking in public trannport and placen
at entertainnaat ahould be enforced. ~

' “Banning noticen ahould be printed an pacleln at cigeaettan
and, if they are allowed to continue, on cigarette adver-

Tha tan and nicotine content of all nerhelad brandn of

cigarettan ahould be publiahad and a public ntatcnent

'nnda on the poeeible affactn on health of nnnhing than»

The Governnent nhould connidar inpoaing ntatutory upper

linden an the.tar ana.nicntina.centent of cigarettnnu .

"the Govnrnnnnt aunt loot banana an eaey neuron of revenue:

to the reality of the injurioun affectn of nodern cigar-

.‘ nttae on the health and econony of the country; differanr

tial taxation of tobacco productn ahould be igponad to

dinenuaage.nore haaardnnn fornn.nf-nnnkina. - , . .

finally thalrnport’auggnnted.a ntaheing.Gnnarnlnnt Cennittetcba.
natebiinhed:to ceaedinaae.ennting cantan1:nnaanree. .At pennant cavern-
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Officernanapanintaa inch Wefflealthand Social Security
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prannatzthanaLie.norfullftinn4nnit tan‘thia purpoae an there in in the

United Staten and Canada.

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Thoa, tha proatigiooa loyal 001103. of Phyaiciana hat appaalad
twico to tho tritiah gonna“ to act againat cigaratta noting. Tho
aocoad raport claarly placad tha blaaa for govarnacnt inaction on gov-tn-
nut axpodioncy; their William“ to thrutan lucrative tobacco tax -
Waxvhich va hm alraady diacuuad. ‘l'ha tobacco induotry'a volun-
tary urn-ant with tho sworn-int cant aftor tho «and «port. And
ihila caoaality hatoacn tha Collaga'a rapart and voluntary indootry action
cannot b0 prov“, tho report appear. to hava Itmlatod groator ”Vermont
contort! and industry doaird to m ito critical Ind publicity diroctad
againat cigaretta advortiaing.

rho collaga'a raporta havo playod'a vital rolo in publiciaing tha
tigarotto outing-health cofltmvdrdy hid ‘ii pad-firing for gown-anal
and privata action to ooabat tha'"aptdalic” of diaaaaa and daath cauaad
by cigaratta booking. Tho aoral might ot thaaa dociaaata haa boon a
Iaavy turd-I on hath tho savorilant‘aad tho induotry. “

Aa in tha Unitad atatoa and Canada. ltitiah Iaalth iataraat groapa
and lost othor organizationa hm cont out againat cigarette auoking.
Tho lritioh safaty Council, for axaapla, ca-a out with a raport in 1969
that taco-and“ that noting aaa to bauad in ciao-u: that aa aach
looking at poaaibla ba-cot out of tolaviaion aariaa; playa andidiocaaaiono
and “that mantra-atria coapallu by laa‘ta print a warning on cigaratta
pactagaa. ~‘1'ha Goa-til aid that inaaaa attributabla ta aaaking coat
induotry Iona than accidenta in factoriaa and'iork plaaaa, which total
an»: ‘atuilliaa-‘a ”at. ' 79 Author gmap; .cna uitiah'htidsaokiag
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to proaata raaaarch infi01lord Offacttva‘uaya'af (a) influancing youth not

to atart looking, (h) halping confirnad cigaratta a-okara to atop, and

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330

(c) producing aafer forna of cigarettea; (2) to eupport preferential
taxation of pipe and cigar tobecco; (3) to bring together a group of
inforled peeple vho will exert continuing preeaure on the government and
other public bodiea with a view to elininating aaoking in public placea;
and (4) to atop all cigerette advertising. 80
Britain alao haa a Junior League of Non-aeokera atarted by the Britiah
Medical Aaaociation'a health education aagaaine‘gggilznggg§g£_and an
organization called the National Society for Non-Snokera. The National
Society for Non-Seokera aaa briefly eentioned in Horn and Carvin'a
"Progreaa Report on Britain'a Seeking and Health Prograa." They reported
that the aociety "aupported the drive to ban cigarette advertiaing froe
televiaioe. playa a leadership role in caepaigna to aboliah aeoking in
public placea and now aeeka to have enacted a law aililar to our own re-
quiring health varninga_on cigarette packagea." Bl In the case of each
of theae organizationa they have obtained aoee public notice but there
ia no available data on their efforta or even on_their_eaiatence over
tile. .
F. {oatacript ‘
rinally. in March l97l a liaited agree-ant aaa reached between the
governIent and the tobacco induatry. Thia agree-ant appeara to have been
apurred by the aecond Royal College of Phyaiciana report iaaued earlier
in the year and aought to aaauage the growing unfulfilled deeanda both
aithin.and outaide of government for govern-ant action. Sir Keith Joaeph,
lritain'a Miniater of Health, had eahed tobacco eanufacturera to print
health warninge on cigarette packagea to avoid lore draatic curba on

cigarette pro-otion and avoid the governaent'a having to uae force. 82

j

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331

Under terms of the agreesent the tobacco industry will voluntarily
place a warning on cigarette packages that "Seeking can dasage your
health" and cigarette advertising will call attention to the warning. 83
The industry also agreed to establish a standing cossittee to review with
the government all research on less dangerous for-a of smoking. The
coeposition of this consittee and the nature of the governIent group to
work with it were not immediately announced. The col-ittee is also to
devise ways of publishing the tar and nicotine contents in different
cigarette brands.' However, inportantly no agree-eat was reached to reduce
cigarette advertising expenditures or to elininate gift coupons. Thus
the agreenent bypasses the conflict within the industry over gift coupon
ache-es that had prevented earlier agree-ant.

Since the release of the first Royal College of Thysiciana report
in 1962 no legislative action has been taken by Parliasent on seating
and health. Yet; while no government legislation has been specifically
enacted it could be argued that none was needed and that while governIent-
industry negotiations only recently resulted in agree-ant the industry
has acted to reduce the hazards of cigarette ssoking as well as its own

econonic dependence on cigarette conausption.

 

 

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332

Footnotes - Chapter XII

loyal College of Physicians, Smokg and Health: Regrt__ of the
ma Colloga___ of Phyuctana o_!_ Lo__n____don on nook1g___ 1n Rolatlonfi to
Cancer of the Lung and Other— Disease——; Eondon: P1taan Medical
i;b11.hm COO. L“., 1962), p. 520. u ‘

 

I__lg__1d. , p. 53.

Lattar fro- tha M1n1otry of Boalth to County and County Borongh
Caucus, Octohar 19,1966. * .

Danial Horn and Ball Cox-win, "Progreu Raport on Britaln'a Sloan;
and laalth Progrn'" (Rochtllo, larylaad: Natioaalfilaflduhmo
On Sucking and Haalth, July, 1966), p. 2 (In tha {11” of tho
Claarlnshouaa).

Graat Brita1n, Parlialantary Doh____a____toa (Co-cu), nccmvu (Doc-bot
3,1966), p. 193. , .

"s-oklng and Health Program. Around the World" (Rockyllla. Maryland:
Raoul Clo-ringhouao for not“; and halth, J... 1970). '
(lunaographadd

and Sta-a1) o_n_ Suckling and Its Effects on Hoa___l___th _t__ro- tha Ion}
Collogo___ of Phyo1c1ana o_f_ London (London: P1taaa Hadlcal and
Sc1ant1f1c Publiahing Co., Ltd., 1971), p. 21.

 

toyal 00110.! of Phyatclaaa, _filgu__ and balth: m g; _t_hg
m Collaga . . . _, pp. 57-58. . . .

"robocoo mutt-y 11: mm Soak- to Protact Youtha," 2h; 133 York
1'1..____a_, Apr“ 2. 1.962.

Roth lrochar o__t_ al., Tho Conant: a Dn1__o__nla hart on Shotg___ and _t___ho
Pnhll_____c_ Interoat moat Vial-non, In: York: Cour-ova Unlon, 1963),

’0 1._-T-90 * - .)

Royal Collago of Phyalclana, 8.0km £3, Baalth 52!: . . . , p. 18.
Ibid. ' '

31:; we», I (April - Jena, 1966), p. 11018.

 

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26;

27.

28.
29.

30;

31;

32;

333

'Dssdlock on Cigarette Publicity," 3113 Times (London), Decesber 10,
1966.

Hsurice Corins, "Cigarettes: Why the Hsr Turned Milder," Ihg_Ti-es
(London), July 3. 1967.

"Dssdlock in Move Assinst Cipretts Coqoss: l-perisl Tobscco
Injects Ministry Formals," Ihg_Tilcs (London), Deco-her 10, 1966.

"A Double Blow for Cissrsttest." m _‘risss (Losdon). nsrch 6. 1967.

"Cigsrstte Advertising Battle Loo-s, " The Times (London), anusry 7,
1967. .

"A Doubls Bloc for Cigsrettes‘l," 32!. 'l‘iscs (London). Msrcb 6, 1967.

Hichsel Rothwell, "Cigsrette Advertising Rou Bails Up," The Times
(London), Februsry 10, 1967.

"Ciesrette Curb to Be Broken: Firs Seeking TV Advertising," _‘131_c_
Tiles (London), anusry 6,1967.

lothvsll, The Times (London), February 10,1967.

lsurice Corins, "Why the Boss of Csrreras loved Out," Th___e_ Tiles
(London) , July 19, 1967.

. O

"A Double llos for Cissrsttsst," 2'2 315?. (London). March 6. 1967.

Dsil1_Telg§;_ph, anusry 28, (1967.

‘Hsurice Corins, “Tobecco Men Horn Coupon lsn Hay Threstes 10, 000
Jobs." The M (London). October 25, 1967.

Eng, 1967, p. 2453.: Cited bsresftsr ss w Rear .
1'12 “Ii-ee' (London), October 25, 1967.

"Cigsrette Coupons tsce Nev 'l'hrest," :1.- ‘l'i-es Won), februsry 11,

1967.

Anthonp Lewis; "British to Curb Cigsrstte has,” Ihg_fiev York Times,
October 25,1967.

‘Kichsel Bstfield,l "Going Up in Slots " z§£_Tiles (London), Septeiber
21,1970.

lornsndCorvin.

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334
Igg,Tines (London), March 25, 1970.

Sir Ivor Jennings, Parliament (2nd ed., Cambridge at the University
Press, 1961), p. 367.

Ibid., p. 369.

"Sir Gerald to Step Up war on Sucking," §§5_Tincs (London), Septem-
bertl, 1970.

 

”Levy Against Cigarette Fir-s Sought," The Tiles (London), Hove-her
17, 1970. "“"

to: exenple a bill was introduced June 10, 1969 by Dunuorthy, Ellis, r;,
labarro, Pavill, Sulerskill end Winstsnley "To provide for the ‘
labelling of cigarette packets in such a way to inforl the public
of the health hazards resulting fro-.cigarette snaking."

' 45‘4“."

Jennings, pp. 101-110.

Horn and Corvin.

Great Britain, Ministry of Health, Annual Report, 1962, p. 98. ewf
”Bloke Signals of Distress," The Pinencial 1133;, October 1, 1966.

Great Britain, Ministry 6! Health, 52222;“52225Ep 1967, p. 2A3.

George E. Godber, ”The British Experience," Speech delivered to the
Horld Conference on Smoking and Health, Septelber, 1967.

Ibid. Also see‘zhg_Tinca (London), October 2‘, 1968.
Great Britain, Ministry of Health, Annual Hepgrt, 1968, p. 231.
Godber. '

John Roper, "Seeking is Greatest Avoidable Peril," The Times
(London), October 22, 1970.

Hichael Hatfield, "Going Up in Smoke," Ihg_Tines (London), Septelber
21, 1970.

"Cigarette Sales: The Tangled Issues," Thg.Tines (London), October
25, 1967.

C.H. Haclnnes, Thg_Earlz English Tobacco Trade (London: Kegan Paul,
Trench, Trubner 8 Co., Ltd., 19265, p. 78.

1

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Royal College of Physicians, Smoking and Health: Report gfi the
Royal College . . . , p. 1.

Ibid.

Ibid., p. 46.
3232., p. 49.
Thig.

Zhiflrt p. 50.
Ibid.

Ibid.

123$, p. 52.
Eggs,

Tbid. ,;6
2212,, p. 53.

Great Britain, Report: Juvenile Smoking Bill (Lords), Ordered to
printed July 9, 1906 (London: Printed for His Majesty's Stationery

Office by Wyman and Sons, Ltd.).

Royal College of Physicians, Smoking and Health: 352255 2£ the
Royal College . . . , p. 56.

Godber.

Royal College of Physicians, Snokigg_and Health Now: . . . , p. 1.
Ibid.

Ibid.

1239.

3239,, p. 9.

193g,, pp. 14-15.

Ibid., p. 142.

‘gggg,, p. 163.

Ibid.

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.(.ij ,aaoa bns nssz yd sniiéfl

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(a;

77.
78.

80.
81.
82.
83.

336

Ibid., p. 142.
Ride, ”0 137-1390

“Cut Sucking on Television, Says Safety Council," The Times (London),
October 20, 1969.

2!; Medical Officer, Decelber l, 1967, p. 278.
Born and Corvia.,
Tobacco ggporter, XCVIII (February, 1971), p. 9.

"British nannfsctursa, Govern-ant Agree as Package asd Advertising
Label Code," Tobacco Reporter, XCVIII (Septeeber, 1971), pp. 53-56.

3.:

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' " .-- _- -ko. -_. -—.‘.

Chapter XIII: The British Tobacco Industg's Response

6W

Tobecco coepanies in Britain, the United States md Canada are inter-
rslated, not only byco-on interests, but often by_overlapping warships
or “outright control of one cespany by another which we have already dis-
cussed._ The cos-on interest in eainteining sndvincreasing roe-peony profits
has had a parallel effectkin each of the three tobacco industrieswe are

considering.

In the following chapter we will consider a umber of industry tactics
in response to the _ssokingfhealth controversy sieilar to. these we have
already described intheflnited Statessnd Cenede. These. include the
diversifiestion of the British tobacco industry into non-tobacco fields as
well aerindustry research eapenditures. He will‘alseo discuss- the ispect
of the lathe: structureeof the-tobaccoingbstry nd‘of thearructure' ofL .
the British governmental} the tobacco industry's response. We’find thar
British tobacco industry tactice are strongly ”awn“?! these, two-

intone . , - - . .
I O I a " " ‘ \ g I 1
' I I. e- ‘ . , e . . ' ' I .

. . . The battle for. increesedsarhet shares hasfiprevented‘tobaeco industry
unity in Britain as it has in the Ihited States. On the other hand the
British tradition of “industryf-gov‘ernssnt negotiation and cooperation and;
the centralisation of British governIent decieion-eeking. (and the absence
of etate and provincial governssnu with independent decision-eating 3
powers) have created a less confused and per-hope less threatening business
environnent than “ft." v.5. er_Canede. _‘Asfla‘conseeu‘ence, the-response of

337

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azliozq gnnqroa gaiasaranl bun guinisjnism n1 Jaaraznl n amen adT .bsaauo

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.gui‘x 91.10.10.)

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Jusmnxsvog delilxa lo molasslisxasoa 9d:

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Ha b9au1noo seal a banana: svsd (nuuaoq

.sbnnsD 10 .8.U ed: at and: Jnuau031?H9

YEC

338

tho mush tobacco induatry ta aora aaa-d. nd thanP uttoomappaar par-
hapl atta laaaaoabla and coapatatava.than that: countacpatta in tho-flaataa.
Itaaaa on Canada. *

I. Mutilation

3m «awn-nun but} a. mud sum anaconda. up
I21“ tobacco “hurts-1W htozwtdatoo -tarpriaaa. For
“-10. tho ~Ilparta1 Tobacco Group, which had aaloo to 1970 ovarfl.266
“n.11aaladaa.aobau$auaa can.“ a pap-rad hoatd can. “can.
brvpCOdaaaa. haadad:latahaaaaa.Laotata~cttaaa (china). aaacaa aaa:otaat
toad paadaata aa wall as och-t tatataata. Iaoluaaa ta.tha group can.
an. Jatua Ga. Ltd" and Pan Fanda-Ltd..-..Iavlay Emma. .4
m‘-u..uuu¢y..m. Ltd" man-gram.” atta: aol-“tan corpora” .
aatittaa. Iaaaatly lapartal aaa-atod llaattorcoatta'a Ltd..rwb1ch .IEOth
naahaaaty.anddlatattala-aaa paatotla aatutaaa rolatod to plaatta caatta'a
at nun-4 ‘3 £3.19” man's noun mime-5mm». 31. para-at
at tho cue-Luau- 19- pa!" via: an. tua nan-moo uuucmg that .
aquam- puportiua tar mat-u. a7 Majorca. a 12 Liz p'aroaat.3

Ila caudal”! mun autumn“: Wt,’m.u..1m11 ta;
”an!" an. mum .a utcnaoa. *a a...“ not. than 300 optical
«mun-u can- can. can arc-m Malrnd-ha naps. ‘.
um.“ ”mac. lana- “clonal 2610mm: I“ 1961-taxi!” to our
“6 union ‘ "' .

n- aumh-mucu tobacco may we“ cut).- baaad.1a.9r1tatw 1
ta thtahttd Lana" about“ float habatao-tly with total Iain-aol
“til.“S mun :- n70. -mn “Hutu-o. «antiwar-sun thraa
quartara of ito oparating capital 1: 1a atill concaruad*v1th tobacco. Tho

may has ova: 150 tobacco factoriaa 1o 55 comtnaa. w baa

. .
‘ .41.;13J

 

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2.3.1:; :.'_'.":.::.=..’. “‘1

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339

divoutflaod into a MC! of. othor flolda including popor, printing ad
pooh“. primq and coontica mu abolition m hon ”trod
magma. ooftdrlnka mum. 5 mun-alumnus
25.6 pot ant biota-t 1n fiesta _A_G_ at Ducaldorf, Gar-I]. o najor dapart-
uummtoc same-tum. ‘ n4... unsubuaumm-
at man anti-n. omhmumhtnh tha.n.a.-thtouh
no mo. “any. .. : . .1

In.“ tohocco m (ltho tint: Had. -d‘ W conton-
parto) aro hoods; can how no panacea: and: puuta by alluding
into not-moon 21.14:. By lata 1969 only tho' “loot of tho Mi thooo
”mama-ta. m, condom-d tbooatoaaha motto.“

«may; W. Jdu handy. m at m In muootod

ommmudlvoroltuotton noun. thot "out (can: . . radon
My tum-1M1: Miami: umuwuodmtuooooawmot
floaty-amvo'judpthoooohavrummanmr

uomrmuau.” 7

hodfltioodiohoavrooxlooaootuodby
”mu-am atod- 1m thaw-of mono-amount...
so no... imam tutor.“ tooto-a m. W moo-toy; bohlnd
tho tobacco mica“ dinntfloattoo nova.

nfihtlfloa‘ttou to ,hovovormatt of a gorol omtlonol trond to
boom that h. 'mhoon’ «manly W. I. data to avalloblo on
tho ralativa divoraiflcotlon of tho tobacco induotry 1n coaparloon to ‘
othor induatry groupa. whilo tho .ganoral “unification trond nay accomt

. c.

for aoaa of tho tobacco induotry' a bahovlor. it to mount thot 1t hoa aoda

a opocial. carom. ottort to find invaatoanto 1n non-tohocco Haida.

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3‘0

C. Endnetrzrtectice

Toheeco ildnetry tectice in'Greet Britein heve been in. ebruiu
the. in the United State. int etill follow the eele generel pettern of
oppoeitiaen to propoeed govern-entel regulation or ectiono. .u in both
the “it“ Stetee eed Cenede rthe Britiehtohecce indeetry eeeke to neit-
tetl ite‘prnfite by preventing er-pentpenin' regnletory ection. The.
ind-ctr, eeehe, nleeet ebove e11 elee. e etehle. predictehle hueineee
IIIIIIIICDEJCO doee the toheeco indnetry‘in.the U. si'eel Cenede.

Ir. 1; Pa Debeon, choir-en et Iritieh-mnericen lobecce (IQ-y
hinted (MI) 4.“ up the perceived threet of saver-net ection in 1971
etetinc'thet "it in beta-ins Laflhidlthlo1dllrlflll ree'eetehle-finr.entheri-
tine to ineee qreeedated and timing reetrictiu-ere perfectly
legiti-ete indeetry." 3 Dehenn tion indirectly eppeeled teacher indu-
triee.£dn Inppert-hy netingathet.?there ere inplicetione here which other
indnetriee'nnld «....n to heed." 9 121cm «Momentum-mu:
none peeeinietic ehout the future of tmceo eelee thutheir Candi.
er herita- centerperte, onetleeet mane: in-ehittieg- their preeent
difficulties; Bah-en, forming ce-ented perhpe mhetieenpa

In.the leegerrtenewleileet Ilpect further encroach-eete

on our freedol in the tobecco hneineee until reeeerch,

'Ihich continues to he vigorenely purened,-eeehlee no to .

produce e cigerette which the nedicel enthoritiee of the

uerld reg-rd ee being lent eceeptehle oe heelth .

grenade.

Tobecco induotry tectice heve been influenced by governIentel ection,
inectioe end tredition. In the ceee of Greet Britein tradition hee played

e nejor role in preventing or et leeet poetponin; governIent ection.

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341

Ono night onpoct thIt s govornnont in s.ninod soonony (nhoro soIo:nonsuro
oi industry notionnlirstioo hns boon scooptod) nould.oct directly snd
rspidly in tho prossnt controvoroy.

Hoop British gorornInnt onslysts hsns poinrsd out tho nido vnrioty
s! rolstions.hotuoon industry ond tho ntnto on roll on tho hnphsrnrd sod
piocsnnsl fashion in which tho stoto hos ncquirod ocononic functions.
Govornnsnt involnonnnt in industry hon.hoon dirortsd tonnrds n nonhor of
diftsront cools. I. S. Floronos in his 195? study-Indnntglfsnd tho Itsto
srnnsd thnt stnto control oror industry nos clonrly o procodunn.usod for
Ill tho Isin sins of stsno.nctivitylohich nrs in.sncsndin¢.srdsrho£-
hdutrisl inlicstiont hoolth, Infotymndsannitnv-squolity snd-donocrncy
(including connunnrwoovorsignty); stohility of dhs.sc6nony sod sovoroignty ‘—"J
of tho individuslgaoificionoy. pnsnross'ssd.rinhility of tho uholo.onsnony
(including dstonso of ths.notion.)u

Govornnnnt intorvsntion in tho pronsnt.snokingmhnnlth controvorsy
could in logitininsd tron snnn;bor-aof:di£fsront stnndpoints. For oxnnplo,
stotoaootion could ho rotionnlinod to protoct tohsocs- snploynont and
tohncco tnx rsvonuos, but this could only ho scconplishod by Inintsinin;
prosont cignrotto consunption.‘ Notionnlinntion hos not boon noriously
proposod. Tho British tobscco industry is vsry profitnhls. In tho post
thor gorsrnnonts hovo found thst notionnlinntion sttonpts to ronovo

profitsblo industrios tron privnto ounorship hnyo boon vigorously opposod.12

Hhilo Inny night coll tho prosont situntion uniquo Ind govsrnnont intor-
yontion or notionnlinotion justifinhlo tho tobscco industry con and doos
offor ovidonco of its own rosonrch offorts snd voluntnry sctions to
Ioliorsto soy possihlo donnndo for notionnlirntion nod (to dots) sll
doInnds for gavornnont logislntivo nctions ngninst tho industry. Thoso

I : I n. I r

rosoorch offorts and voluntnry octions will bs discussed lstor.

'

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362

Britioh gout-‘nnont intonontion in tho privato W (at in tho

Unitod Stotoo) hoo ofton taught to protoot tho coast-or tron tho nogotivo

oooooqnoncoo a: aonopoly. , "hilt tho clooo coocontration of tho British
tobacco mfacturing ’indu‘o‘tt‘y ii of ob. obncot‘n to thooo intoro'ttod in

in «tooto an. totiooolo’ for gout.“ Mime it onioportant in '

' 1

tho pr‘uont oituation.

many, hot-yon 3mm: nunootiooior notionalitttion could
to rationaliood. 'l'ho prooout “king-hoolth oontrworty io fraught with
contradiction in which tho ti. at tho otato art in conflict ond for

whichthortionoowomlopriorm Mogmdoryof govorn-

‘-1l.

loot it only notchod by tho quandary of tobacco. and thoir advortioing

I! 1 I

agonto who find tho-tolvoo accuaod of "tolling doath. "

lobort E. Coal-on in hio clooaic l9£l otudy of indopondont rogula-

an

'p'l...

tory co-iooiono 13 oboorvod Britioh rogulation of hooinoao ond concludod:

If a booinooo or induatry in England it to ronoin in
”atom,thoroa.tohoo-utoflaioooo
fairo tradition that koopo south-total rogulation
. \a mini-n; and whoa noto draatic putlio cmtnl
oooao noceooary tho amt-fiat takoo tho ontorprioo
- -1: III. .a- it diuctly. ._ . a

Oimhio and; W 1.1. in tl-Butidxmoyhoa bocooo

abou ohipitono, ”abbot moi: of thia imam-hao on. through

math notho: “.mmum _ (hi-L. howovor, putrid-o no.

“bition or: triad. for who pdalia autocl- mld or “all t‘o' ploco.
Ital-hum I.‘ tootflthat thooo-hot hoon- a . s -oh iota mpulouo
mutation-d ohonuhlil: inmost-t hp. 'hig. W' {h-Gtflc Ritual -

than in tho. Unit“- Stout." 15 , brad Wi. of. thio aognitudo

aro Moi. in- ttmtiu. to omit!!! trudo in diffonnt. -t'aioo hat aro

not difficult colon]: IG‘MiBrm..' III-onto. of Show.

oaploitation" by on induatry aro unavailahlo or oxtroaoly crudo.

“’ U
- .- 3' _. v.25:

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3&3
Hhathat at aot Btitiah induatry ia toolly laaa onloitativo th- that.
barit- warioty. what it iqartant it that tho ltitith hava a lag-amo-

iog ttaditioo "ahich poo-ito tho iotaiag out by-gaaotaaaaa at gawataaaatal

..16

”to to ptioaaa ad volutaty aaaociationo or gtoopo. Eckataio.

tot 8.1a. u coooidaoad thia unusu- at it hot atfoctod tho ltitioh

l7

lodical oaoaciatin. cooh..aotat that‘oalt-tagnlati. "had hoaoaa

goat at thozltitiah aattataai thought." lactation“:

Ill. oaad ariaoa .. . a to aubiact- to diacitlioa at
oopotviaion intatooto which hava proviooaly boon
'ntoottictod. it ia attoral to oaplota tint tho
pooaibility of oatting up ooao ayotaa of oolf-
tagalatioo or :aolf-iiaciolioa to ho ahioiooa

by raptooantotivoo of tho iotoroato aftactod.

Official cooaoltotiono and unofficial ditcoaaiona botwoon booinaaa
.d pumt ato wall accoptad by both to a aathod of taoolving diffat-

acoa. Snot]. h. loot haa pointad out in hio atticla "Ptoaaoto atom
s. f

ad Pattiao in Brittio" tho infothality of thia contact botwon ptiyota
intataoto and public otficiala. 19 no obaorvod that bocauoo of tho

I a

aboooco of a attuctorod tyataa of inforaol contacta Aaotical ”proaaoto
politiot [aro] to much coma: and loot tidy and Btitaio'o." Mom. on“
it hio atticlo: "8o. Noglactad tapacto of Britioh Proaoura Groupo. " .
obootvad that "aach tog-ant of tho oconoay hao aoaa uniotty or govotnaant

..20

oitica oapacially coocotoad with ito prob]... . . Whilo Boat aug-

gaotad that "it you on bting oyat tho [taopoooibla] mniatar and tho
“allot of tho Eochoonot you hava not much alao to worry about " 21
Cartaioiy gowaroaantal tolinco“ on tobacco taxation baa aado tho Eachaqoat
a aoppartor. ii a taiuatnt 0a. oi tho tabooao inioatrn -.

loot alooaotod that "it tho To” tradition ... . . thora it a ottong

attain oi 3aaaotoliao no a cartain 'otgnic' viow of aocioty radically

 

 

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3“

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aquatic ham banana -d pram-at in cuttaat to tha advanary
ralati-ahip which -ia -ta charaatauatic of laiaau- faita tapitaliaa in
tha Gait-d “at”.

ha Britt-h taaditiaa ta china mu.- “ Baa: bath aafa: aorta in
aa- nay. to obtuacata catamaran David found that atudiaa of praaaara
w in Ititain hava ayatuatitauy onittad W-argniaatida. u
in tho thitaa Itataa'ui may bait-i that “mutant an (at hora
“any [can «has yuan-a noun] abut "tum. than-political
hm. ndnin rauirmiat u- aaa-arch in pun... .23
hat-tau, tla an.“ that.” aaiat ham induatry ‘4 1m: ia
aft. hi“. baht-d tho lava: at prim Mania. and aaptiatim
which 'gaauauy dam-a paint canto-vaat ad annuity. 3m entrant ‘
in .tha hit-taut.- (and; lama: aunt Mada) n. -rau fatal -
pitta oi paaihla atti- (on both tha nation.” atata ,9: ptovinciah
but) tan ”Baud.“ fan-teat“ aohaato. iaiaatay aliatta tmahaia
a ataady pudiatana avit-aat.ia.vhi¢hrto vaat. Jutiahjtaditioa‘ -
plan-a tarp-wok da .bath court-u: autumn; uel-improving; a. aathod
hr in mglatiaa.

Ia hiatuy u hind: pun-ital banana-ta. taa panama-ak-
Wth uataautay on but bq‘ banana-51-3.0.1" in ma tha-
udatlyh. aaaiaa at thapvahlaat .tar-iauatayaalf-aagahtiu ht“.-
Wltfl. —W.WI. -, .- ~ . ' . ..-. .. . 1.2. ;.

"Ila -aatah1 manna: an an 'na: ataxia-“untit-

ot tha continual vitality of tha doctrina of laiaaat

rlaira in what app-art to ha a than mama to- tha.'

idaa of draatic gonna-an]. nulation of a lamina“.

or await intu-aat which it atiu left in‘ tho handa ‘
_ol ita mart. _ .

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b

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Nowartholooo. tho roality c1 rcluctaco to roplato io in oharp
controat to tho alaot aliatod ability at tho Britioh aurora-at to act.
III! M of. motivational rootrointo on pvorhoat rogulaticn could
tail, facilitoto coordinatod pwraat actiona. ‘ 30th tho Britiah ad
Caodia qotao facilitoto ”aaa: rogulatla to woll on control -
manna: ct tho cocking-hoolth tabla. thototcra. ono night hava
oopoctod _lritioh and Caadia policioo tcwotd cooking to ho .acro 11.9mm
tha thooo at tho atta fro’atod act-mat at th- unitod _sutoo. Thu-o
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ho ho in port to a occoptod tradition ohich nitigatoo tho an of govorn-
oat "not. .I.: thou woro no atm await or political intorooto
ottoctod thia traitico night hava fond a oat-orien-

“othor-aro. tho coconut: or anon-at iotormticn io quooticnablo.
Gavin int-try cannon ad notion night In actually an oftoctivo in
roality tha tho (tr-loath intact-sin) new coal-tion. ‘rhno
thot'o aro an; ncooihlo roodo to tho oao goal of hottor hoolth; intorvon-
tion or alt-romaticn. u wo 'havo alroady ooon. tho Britioh hava chcoa

,"1 1

tho lotto: road ad it raaino tot hiotory to nooouro tho ccnooquacoo.

D. lug tf‘g loooarch E__i:____fcrto
do in Ihoth tho Unitod Statoo ad Caada tho princry aim of induotry
concorn in Britain io tho rothor qniot ad footidicno ociontiiic roooarch

which cunlativoly orploroo tho rolaticnohip botwoon oakin; and hoolth.

f !

‘l'ho lritioh tchaccc induatry hao omcrtod roooarch into cooking ad hoolth
oinco 1956 (tho oat yoar 0.8. oaufacturoro hoga thoir roooorch otfcrto).
1 t .’ .f

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3‘6

aaufacturing tobacco products in the United Kingdoa. whether for tho

hone trade or for export (thia includes the giant 3A1). Unlike aanufac-
turora' groups in Canada and the United States tho council has rather
liaitod non-political objectivcat "to conduct, proaote and cooperate in

and keep in touch‘with research into all questiono concerning the relation-
ship between tobacco cooking and health." 15 '1: is sci: aiailar to.tho
Council for Tobacco Research, U.S.A.'with which it hao had close working
relations and which is also supported by tobacco industry funda. The
Tobacco Research Council's own evaluation of itself indicates an internal
tranaition that has taken place ower tile:

In its early days tho Tobacco Hanufacturera' Stading‘

Coolittee'e approach to these objectives was to finance,

or assist in financing, relevant projects initiated by

other research organizationo or individual workero, to

furnish theo‘with natarialo, such as condensate froi

cigarette onoke. and to provide chenical and statistical

infornation. Since than tho Committee, and latterly

the Council, has taken an increasing part in initiating

new projects and hao to a larggéextent asaulod responsi-

bility for carrying the: out.

In addition to studies of the chenical nature of tobacco oooke and
its possible effects tho Council has conducted a series of otudieo of
poroonal, environoental and other factors in the diseases associated with
sucking. .A aoall group of projects is directed at the activaofor cooking.
This research night also be ioportant for offorto to increase conou-ption.
Aa the Council noted in their report "it io in the belief that a very
large nuoher of people will continue to oloke that the [THC] is seeking
to provide scientific infornation that will contribute to a practical
oolutioo of the probleoo involved." 27 Up to the and of 1969 over £6
Iillion had been spent by TRC aince ito founding in 1956. The council has

ito own laboratory with over 250 scientists and staff.

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347

Since individual manufacturere' reaearch expenditures are unknown
and no reliable aggregate croaa-national etatietica are available it ie
at thie point iapoaeible to gauge the coata of reaearch or reaearch find-
inga connotatively while at the cane tiaelaccounting for the inpacte of
national population and the econonic viability and relative importance of
the tobacco induatry. Further-ore the croee~national ties between tobacco
coapaniea ae well aa the cu-ulative and international nature of ecientific

reaearch lake the validity of thievneaaure open to queation.v

_¢.rg

The croea-national ties of tobacco coapaniee and their obvioua
econonic aelf-intereat lake both the aharing of reaearch infornation and
cooperation in reapondin; to the coe-on threat likely. 'Hhile we are.
unaware of any international aaaociation_of tobacco aenufacturera that g :5
playa a role aiailar to the Tobacco Inatitute. Inc., thia ie probably
unneceeeary becauae interlocking ownershipa crate-nationally facilitate
the sharing of infornation and the coordination of reeponee..

. The differing reaponaea of particular conpaniee auch ae Gallaher in
)ritain.and.mlerican Tobacco in the United_$tatea provide aoee‘inaight
into the role of aarket aharea in ahapin; corporate reeponae to particular
propoeale for govern-ental action. While both coapaniea are controlled by‘
Intricanlhganda Inc. each_haa reacted differently to propoeed govern-Int
ectiono or propoeale for voluntary action., AIerican tobacco which ia
.lotI dependent on non-filter ealea than ite coepetitore in the United
Statea hee etrongly opposed governIent supported voluntary diacloaure of
tar and nicotine contenta of cigarettee on cigarette packagea and adver-
tieingi: such actionfwould place.Aaerican Tobacco at a bad diaadvaetage
in coupetinj with conveniee which' are lihely to benefit froe a ewitch

froe non-filter to filter brande. On the other hand in Britain the fight

Yfit

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348

for larger narhet aharea haa alao played an important role in dictating
individual coupany tactica. Gallaher, whose narket poaition has been
weakened by'Inperial‘a domination of the rapidly expanding gift coupon
brande apparently favored a self-imposed limitation on thie form of
advertiaing and when none waa forthconing-recognized and inplicitly eup-
ported government action in the absence of voluntary cooperation. In both
caaea the fight for markets and profits hna.dicteted corporate responae
in one aituetion oppoaing cooperation with the government andin the other
favoring it. - I A '

Infornation about individual tobacco corporation politica in the
three nationa under atudy are entrenely sketchy and very difficult to
obtain. Differencea within induatriea in theae countriea are rarely
publicized. 'However it ie apparent that internal diedgreenenta within
tobacco induatriee, especially in hritain an already diecuaaed, have
played an important part in facilitating or fighting govern-en: action.
Each conpany'a perception of the inpact of government action or ite own
voluntary efforta on ita totel tobacco ..1.£,"bro£ici and nerket share '
playa an inportant part in the 'deterndnation of ite own reaponae:

‘Nevertheleae differences in induatry reaearch effort: croea-nationally
do appear to exiat.' rd: exanple, Daniel Horn; director of the National
dlearinghouee for Soaking and Health in the United Statee.ihae coupli-
lented the Tic, and inplicitly conpared it to the hora recalcitrant tobacco
induatry in the united Stateaf I 1" ' ' ' ' ' ' ‘ '

The council . .'. ie eo-ething of an anomaly to AIericane.

Though aupported by the tobacco induotry,,ite_etatiatica, “

are relied on, and ueed by the Govern-eat. The efforta

.of the Council anee.to he directed gate to calving the .
‘ problea than to denying it exiata.‘

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369

The govern-ent'e concern with industry cooperation and self-regulation
as opposed to govern-ant regulation seens at least partially matched by
industry research efforts and sons attenpts to cooperate in reducing
advertising expenditures which were previously discussed.‘ Unfortunately,
as we previously found, the'rnalities 0f nethet competition prevented at
least early industry agree-eat. =

One difference between the British and hearican‘tobacco indentry's
response is eleost isposeible to sesssre. the settled nature of the con-
troversy in Britain contrasts sharply with the public conflict and --"
stridenee that have characterised the controversy in the United States.
the British industry has quietly sought solhtiose‘issteaa of protesting
its innocence and condemning scientific research that implicates cigar-
acres. ne‘tritieh tobecco isdestry hes‘so' squivslent or the sserican
lebaeco institute, lse.5 which defends and publicises the industry's
interests. fhe'costreversy has been much more publicised and overtly
political is the United Stetes. Industry—governssnt consultstioe, the
tradition of‘salf-regulation. the absence of nultiple political threats
and public political debate have all liaited the intensity of public
controversy in Iriteis. neeriese ane- canadiae'eehseee‘ cigarette mann-
faetnrers who rely on the political support af‘the tobacco growers refrain
free leggeeting that alternatives to tobacco can be found to prevent
alienlting' the support sf'tabacce farsers eed their.politieel representa-
tivee.. clearly British sseufaetsrers who sent ispert tobacco candperceive»
the utility of developing a tobacco substitute that night reduce their -
tests of prededtioe; protect their profits and elisisete the present

health controversy. 29 the Ititish'governmeet has perhaps inhibited this

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350

search by enacting the Finance Act of 1970 which insures that tobacco
substitutes will be tansd at the sane rate .4 tobacco.

British cigarette snokers have been part of the apparently world-wide
trend free unfiltered to filtered cigarettes. Presently approxinately
75 per cent of all British.cigarettes are filtered. Although 25 per cent
of seekers believe that filters reduce the risk of cancer and other
diseases.the majority give cheapness, convenience and enjoy-ant as reasons
for preferring then~3°Filtsred cigarettes use less tobacco than non- f’1
filtered varieties and with the high tax on_tobacco calculated by weight i
rather than by the pack the filtered variety is cheaper. But unfortunately
this is as extrasst weak nesswrs'. As was found during the 0.3. tar derby
in the late 1950's the question is_not one of filter or no filter but of
how good a filter. _A more precise neasure which lay tone closet to
Isa-wring the relative inpact.of different varieties of cigarettes is
their tar and nicotine content, . . , ‘ . - a ,,

while filters aynbolire a good deal of change and safety their actual
ntility_in protection health ia.hnkaewhn ,In the abeence of precise ‘
neaeurenent of tar and_nicotine we muat_refrain_fron.generalizations which
let-trains. or consent The session of the differential use of filtered
cigarettes in the three-countries under study is unknown without this
precise_nsssurenent. -;— - _, ._; :1 ‘ , 1

.ererthsles . the largest British nanufactuter,.lnperial Tobacco,,
has acknowledaed the desirability of.redwcinglthe tar end nicotine contents
of.tigarettes. JThe chairnan;reperted in May, 1971 that over the past six
years tar yields had been.redwted.30 per cent and that further:

there is also the possible production of new snaking.
nsterials; and, although we must not leave shareholders

1; b: " . t . I , . 4 t I. t

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351

with the inpreeeion that the developneat of each Deteriale
to the point of commercial use will cone about eaeily 051
quickly, it ie certainly a field for further endeavor.
B. Conelneion
we find in Britain e tradition of governIent end induatry cooperation
and induatry eelf-rexnlatiee Ihich 1e longetendinga In theory thie tra-
dition ie not very different iron that found in the United.$tntee. How-
ever, the centralization of Britieh governeental deeieinnwnnkine end the
tradition of governeent-indnetry eonenltetiona and cooperation do appear 7']
to differ froa.that found in the United Staten. Governnent action end. .
intervention in the cannon; are note eaeily-eccepted in Britain than 1e.\
the United Statee although Britieh govern-eat intervention and/or aetion-
eliaation have becoae leee coe-on in recent yeare. . ,- . - . . t :J
Further-ore the etrideace of the.eloking-hea1th centraleeey in Britain
hee been below that of the United Stetes. ~Ihe abeente of legieletive
hearinee-and lengthy dieceeeion of propoeed legialation'hae elininated..
in Britain a prime eoeree of reel which hee helped publicize the contro-
verey in Canada and eepetially ia-the United Steteel- Such heeringe and
legielative debate here foeeeeed attention to the controverey end pro- .
vided a focal point for argueenta both for and againat cigarette eloking.
lhile the Britieh tohaeee induatry hee not eupported.ef£erte to ,
redone cigarette.eenaueptien it.hee.heea nore tacit in ite reevenee to
governIent action then the.open induatryzeppeeitinn=end eondeenation in
the.united.8tatee. Nevertheleee ea ia-the.0nited'8tatee and Cenede’the
eeeeeeie and pelitieal.ileottaaee:ot thehiedeetrywhae inhibited sovere-
nent action to reduce cigerette eonee-ptioni a r h-:_ .,:
The eaeertnin political reepoaee of Iillione of enthneiaatic

cigarette.enohere who are.alreedy-hiehly.texed and the thoueeade of

1.

[68

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352

tobacco induatry enployaee and tobacco diatributora threatene.equally
both political partiee. The potential political reaction againat govern-
aent reatrainte on cigarette smoking ban been based in part on the ever
present question as to whether government should legialate individual
choice end the political reaction againat new or increaaed taxes that
would have to be found to aubatitute for tobacco tax revenuee.

Tobacco induatry efforte in dealing with a centralized governIent
are certainly clearer and probably leee fruatrating than the chaoe of llj
aultiple decision-nakera and pressure pointe that have haunted the 0.8.
industry's search for a atablo buaineea environ-ant. The British politi-
cal system with its centralized govern-ental atructure and the abeence ;‘
of a fragmented federal ayeten of etatea or provincee providee a uniform
and relatively stable (or at least lore predictable) environment with
fewer political threats than in the U.S. and Canada to the induatry.

Thus induatry tactics have been in large leaeure a result of thie eitua-
tion, as well an the recognition by the induatry of the importance of
tobacco tax revenues to the govern-ant and the continual coapetition
within the industry for increaaed narhat aharea and the reeulting increaaed
sales and profita.

Finally to close on a epeculative note. Industry efforta in Britain
to reduce the hazarda of cigarette eeoking are relatively independent of
tobacco, in contrast to the induatry'a orientation in the 0.8. and Canada.
A.non-tobacco cigarette nay well be firet introduced in Britain, which in
ahielded by distance and political boundariee froe the tobacco growere who
would be economically haraed froe the uea of a non-tobacco aubetitute and
who have played an iaportant role in the controveray in both the U. S.

and Canada. Perhaps becauae of the abeence of tobacco growere froe the

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353

political picture British aanufacturers can appear nore candid and
sincere in attempting to produce a safer cigarette than their AIerican

or Canadian counterparts.

3......" .... "...-

T

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1.

2.
3.

lo.

5.

6.
7.

9.
10.
11.

12.

13,

1‘.
15.
16.

35‘

Footnotes - Chapter XIII

 

.-

Inerial Tobacco Grows united. Annual Report _e_t_ng Ascmte, 1970,
p. 16.

_t__h; Hall Street Journal. Key 17, 1971.

Address of the Chairaan of Ieperial Tobacco Groups Lilited to the
Shareholder' s Annual General Heating, Hay 12, 1971.

betican Brands. Inc., Annual Reflrt. 1970, p. 6. Gallaher had over
$1 billion in sales in 1970.

Iritish-herican Tobacco Coqany Lieited and British-AIerican
Tobacco Invest-ante United, 5% m 91mg, 1970.

mm 1011 (January. 1972). p. 30.

Letter froe John Partridge, Chair-an. I-erial Tobacco Group Ltd..
October lo, 1971.

speech delivered by IJ. Dobson at the 68th Annual fleeting of the
British-barium Tobacco Comes, united. April 15, 1971.

I l

Ibid.
Ibi____d_.
3.8. rlereaee. Indus t_xz___ and _t___he Stat—e (London: Hutchinson and Co.,

1957) , p. ‘7.

I. Eldon Barry. latiflisation_ in Br_i_. tish Boligice: 119.. Eggerical
geyround (Stanford. Californiaz Stanford. University Trees. 965 ,
p. 379. , g . , . ' ’

Mort 3. Cal-m :3... WW (lav-rot!“
Oxford University trees. 9 1 . _ , , 1 _

Ibid. , p. 501.

I .

Ibid., p. 502.
Ibid., p. 508.

£7—
la...-

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.11

355

17. Barry Bckatein, Pressure Gregg Politics: Th___e_ §___ase _o_i' the British
Medical Association (Stanford, California: Stanford University
Press, 1960.

18. Cush-en, p. 550.

19. Samel 8. Deer, "Pressure Groups and Parties in Britain," AIerican
Political Science Review, 1. (March, 1956), p. 9.

20. Morris David, "Sons Neglected Aspects of British Pressure Groups,"
Hidvest Journal a; Political Science, VII (February, 1963), p. 1.5.

21. Deer, AIerican Political Science Reviev, I. (March, 1956), p. 7.
22. Ibid., p. 22.

23. David, Kidvest Journal gfi Political Science, VII (February, 1963),
P. M.

2‘. Cush-en, p. 501.

25. Tobacco Research Council, Review of Past and Current Activities

(London: Tobacco Research Council, 1963), p. 15. Also see reviews
for 1963-66 and 1967-69.

 

26. Ibid.
27. Ibid., p. 18.

28. Daniel Born and 8:11 Corvin, ”Progress Report on Britain's Seeking
and Health Program" (Rockville, Haryland: National Clearinghouse
for Seeking and Health, July, 1966), p. 3 (in the files of the
Clearinghouse).

29. "Iritiah Are Seeking a Safer Cigarette," _‘l_’_h_e_ 1e! York Tiles,
Hatch 19, 1972. " ""'"

30. level College of Physicians, Sucking and Health Egg: 5 _l_l_e_v_ M213.
and Sunni on Seokig__ and Its Effects on Hea___l_th froe oath; Rozal
College__ of Plysicians g_f London (London: Pit-an Medic alan
Scientific Publishing Co., Ltd., 1971), p. 16.

 

 

 

31. Address of the Chair-an of I-perial Tobacco Groups Liaited to the
Shareholder'a Annual General Heating, May 12, 1971.

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PARI POUR

COMPARATIVE PERSPECTIVES

1'.

356

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‘i'h‘I—J wr—w—vw ~ 4

HUC? TflAq

EEVITDHQHflRQ HVITAEAQMOD

(BEE

Chapter XIV: Comparative Cigarette Consumption:
Utility, Disntility and Political Implications

A. Introduction

The ultimate impact of governmental action against cigarette smoking
has been directed towards decreasing cigarette consumption and thus,
hopefully, toward decreasing the number of deaths and disabilities
associated with cigarette smoking. Some of the most easily quantifiable
and available comparative data are on tobacco and cigarette consumption.
Yet, upon closer examination these data appear to be very weak and dif-
ficult to use when making comparisons between nations rather than longi-
tudinal comparisons within one nation.

Aggregate cigarette consumption figures are of questionable validity
and uncertain reliability. They take no account of the tar and nicotine
contents of cigarettes, their size and/or the amount of tobacco they con-
tain which appear vital in measuring the actual exposure of smokers to
the harmful ingredients in cigarette smoke. Furthermore, these consump:
tion figures do not indicate how the cigarette is smoked, how far down
to the butt, and how deeply the cigarette is inhaled. In addition, there
is little indication of the distribution of consumption by amount. As
Praeworski and Teune note "Validity tells us to what extent the instrument

actually measures what was intended to be‘measured, that is, to what

extent it portrays the observed phenomena as they occur in each social

l
a! I‘- l‘. a. g m - . '- ’ (

system.”

357

II"

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3S8

Consumption figures were developed as a measure prior to the snaking-
health controversy to crudely indicate the economic health and develop?
sent of the tobacco industry. The figures are probably still valid for
their original purpose. A new'measure is needed which incorporates not
only the number of cigarettes consoled but their tar and nicotine contest
as well.

Aggregate pggngggi£g_consumption figures are also often used in
asking cross-national and longitudinal comparisons., These figures.
minimise the actual number of cigarettessmoked by smokers by watering
down the actual figures by including all possible smokers; Thus, per
capita cigarette consumption figures for smokers in the 0.8. would be
over 8,000 per year rather than the estimated 0,000. However, the dis-
tribution of cigarette consumption among smokers would be even sore
indicative of reality than the measures presently popularly used.’ .

Consumption figures in each of the three nations under study appear
reliable but the measurement criterion in each country is different.

Thus the British for example base their_measure of consumption on tobacco
weight and use a conversion formula to yield their aggregate consmption
statistics. .British and American 29.5 9521}; figures use different -
for-ulna in calculation. The British include all persons 15 years of

age and over while the 0.8. figures are calculated using all persons 18
years of age and over. Praeworski and reuse noted that "the reliability .
criterion tells us to uhat extent the categories applied to the expression
0f cross-systemic observations constitute 'universals' or are 'invar- .
1ant.'” 2 While the data are reliable for longitudinal comparisons with-

1l one country they are not reliable for cross-national comparisons.

”‘”1

i
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359

In thia atody va hava baan vary haaitant to an cigaratta conat-ption
at tho naaanrabla dopandnnt variabla to indicata tha aucccaa or failnrc
of gown-mt afforta and tho attorta of haalth intarnat ma ad tho
tobacco induatry. In tho following chapter va vill conaidcr no. of

than auragata indicatora an all an Iona of thoir political inplicationa.

3. Mn Indicator.
Tabla 1 prcaanta data on total cigaratta commotion and m 5311;; .. .‘

 

conaqtion for tho 0.81, Canada and Croat Britain for 1950 to 1971. tho

'QL'I

data in tron tho Tobacco lunarch Concil'a at“, tobacg m_ in
Variona Comtriaa 3 which haa calculatad at; $92.15.! figuraa nain; ail
paraona 15 yaara of an and oldar. -

tho data aha that ditfaraana in a; $924.55 mutt. batvaan tho
Unitod Statca, Canada ad Croat Britain hava ‘dccraaaad ainca 1950. During
thia pariod 0.8. 5!. 9333;; conauption haa inctaaaad 10‘p’cr cant, ‘Craa’t
lritain 33 par out, and Guada 83 par cant. ‘ Abaolnta commotion haa
alao incraaaad anbatantially during thia ti.- pariod, but ainca tho
raloaaa of tho firat loyal Colic” of Phyaiciana report in Britain and
tho Surgaon Omral'a mrt in tho Unitad “at”. tho growth rata hao
daclinad to an "ataga of laaa than .3 par cut a yaar in-tha 0.8, 1.2‘
PC! cant in Britain. and 3 pct cant in Canada.‘ q

Ha will not diacnu tho in.“ of apacific puma-std actionaor
Privata raporta ouch at tho two nantionad abon.1n ganaral, i—diataly
following tha action or raport connuption daclinaa, but auragata fignru

trio-.117 m. to that pmiou luau.- -5 at and: ‘taatar 1.9mm.

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.‘

360

Table 1

Aggregate Cigarette Consumption and Per Capita Consumption (15+)

1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962

1963 -

196‘
1965
1966
1967
1968
1969
1970
1971'

1—72 .

 

‘ f.
Variona Countriea, Reaearch Paper 6, London:
(Third editiOn). - .

Canada
~ _ Per
Cigarettes Capita
(millions)
17,172 1,790
15,672 1,600
17,844‘ 1,780
21,000 ’2,060
22,116 . 2,130
24,576 .2,320: '
27,000 2,480
30,144 2,720
32,404 2,840
33,822 ‘ 2,920
34,289 . 2.910.
36,699 3,060
38,683 5,140
39,877 - 7,190
.40,639 , 3,170
43,013 3,310
46,276 3,450‘
46,804 5,420
46,269 3,280,
46,582 3,230
49,823 3,340
50,864 , 3,320

United States

 

360,199
379,725
394,109
386,826
368,725
382,061

'393,154

409,458
436,354

' 455,601
470,136 .

488,119

'494,463'

509,506

.‘97:“7

511,464

522,533’
'527,000
523,008 :

510,531
532,769

528,853*

Per

Cigarettes Capita

3,250
3,390
3,490

3,3904

3,200

3,200: ‘
, 3,370
3,460 '

3,640

5,730 '
i 3,810

3,890

' '3,870 ‘
'5,950

3,770
3,820
3,850
3,060

g 3,730_

3,580
3,670
3,590

I.‘

for the United States, Canada and Great Britain 1950-1971

Great Britain

85,145:

89,335
90,400

‘ 92,695 -

t95,230
.98,670

99,560 ,_
.102,250

104,020

106,600 '.

110,900
113,400
109,900

' 115,200

114,400
112,000

‘ 117,600

119,100

.. 121,800!

124,900
127,900

' 122,400

Per

Cigarettes Capita

“2,180

2,300

'2,320

2,370
2,430

2,510
-2,530

2,590
2,630
2,670
2,760
2,810

'2,680 '

2,790
2,760
2,680
2,810
2,830

. 2,890

2,960
3,020

*2,910

Conpiled Iron 0.11. lanai, edit-t, Tobacco Cami-Jon _19_
Tobacco Reaearch Council,

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881,

008,8
088,8
018,3
080,8
018,8

019,2

3933935213

801,88
888,98
000,09
886,39
083,89
010,89
088,99
083,201
030,001
008,001
008,011
000,811
000,901
003,811
000,011
000,211
008,111
001,911
008,131
000,911
009,131
000,831

891n32 b93130

391
53108?
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.—.

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000,8
081,8
018,8
008,8
018,8
080,8
011,8
018,8
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088,8
081,8
088,8
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991,008
831,918
901,008
038,588
821,908
100,388
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088,900
088,680
188,880
581,010
011,880
880,000
888,908
1&A,1QA
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008,118
800,888
188,018
901,283

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361

than aggregate conaunption and/or per capita conauaption figures are
changea in the type of conauaption froe non-filtered to filtered cige-
rettea end froa high ter and nicotine brenda to lower tar and nicotine
contenta.

Table 2 ahowa the percentage filtered cigarettea for each of the
three countriea under atudy for the yeare 1959-1970. The data indicates
the rapid change froe non-filtered to filtered cigarettea that hea taken
place in the 0.8., Britain and Canada aince 1959. Conaenting on the
period prior to thia tine in the 0.3., Baa-ond and Garfinkel noted:

Prior to 1950, filteretip cigarettea were little acre than a

novelty, and ea recently aa 1952 only 1.3 per cent of cigarettea

eold in the United Statea waa equipped‘with filtera. . . Filter-

tip branda hed captured 9.2 per cent of the aarket by 195‘, 27.6
per cent by 1956, ‘5.2 per cent by 1958. and 5A.6 per cent by

1962. 5 ”

Ha-Iond and Gerfinkel coupletely attributed the awitch to the ”reaction
at the public and the induatry to reports linking cigarette aaoking to
lung cancer and other diaeaaea.” 7 Thia awitch wee of courae facilitated
and ans-ented by aaaaive‘cigerette advertiaing pointing out to conauaera
the beaefita of the new filtered branda.

‘Hhile filter cigarette ealea are indicative of a trend towarda
allegedly healthier cigarettea they are only a very crude indicator. The”
iaduatry‘e own eaphaaia on coapany aarhet aharea and brand ealea coabined
with govern-ant aeeaureaente of tar and nicotine contenta (all of which
could he atandardiaed croaa-netionally) could be need to develop a lore
accurate aeeaure of nectar eapoaure to tar and nicotine. In the United
Statea Philip Horria Inc. reported that ter in cigarettea had declined

‘6 per cent froe 36 ailligraaa in 1956 to l9.‘ ailligreaa in 1972. 8

‘1

 

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362

Teh 1e 2

lilter Tip Cigarettes en a Percentage
of Total Output end/or Sales 1959-1970 '

 

United States Canada 9333; Britain

1959 48.7 44.0 ' 12.1
1960 50.9 50.5 .15.9
1961 52.5 54.0 19.5
1962 i 54.6 59.0 26.0
1963 58.0 ’63.0 '32.:
1964 60.9 66.0 ~41.a
1965 64.4 69.0 53.0
1966 68.2 73.0 60.6
1967 ' 72.4 77.0 65.9
1968 74.9_ 80.0 .70.7
1969 77.5 75.5b
1970 80.1d x7a+ °
1971 62.4‘1 "

a. Coapiled froe a Variety of aourcee including The Tiaea (London).
Tobacco Reporter, Tobecco Situation and World Tobacco. .

b. Th. 71'" (W400). "Drift to Filter Cigarette Brenda Goea 0n,"
deruary 20, 1970. * .. ~ ~- - 9 -

 

'c. Tobecco Reporter, TCVIII (hove-her, 1971).. p. 14.

 

d. Toba‘cco'gwivtuatign‘, March, l972, p. 6.

...-..- "4‘— "

-.

S eldsT

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8.8E 0.10 0.9? 1591

8.19 0.00 9.00 no I

0 {a 0.00 9.00 Fe 1

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9 ea 0.11 0.91 1091

1.01 0.08 9.61 6.91

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363

Obviowaly the preaent empheeie of governeental agricultural end health
policy on liniting or at leaet attenpting to linit tar and nicotine in
cigarettea aeeunea the inportence of thia neaeure ea well an poaitive

eocial conaequencee fron‘governnent actiona. Rhee accurate aggregate

3

etatiatica incorporating enoher napoaure would be very neeful in facil-
teting evaluation of the inpact of both private and public efforte to
reduce the hazards of cigerette enoking. However, lore inportant than
how nuch ie anoked ia what and perhapa even nore inportently how. The
laet two queetiona have only been very crudely and auperficially eaen-

ined. The continued enphaeie on crude conannption and per capita

‘1

figurea ia unfortunate and obacuree the eneking-health problea. Dif-
ferent indicatora*which nore cloeely reflect the problea at hand will
hopefully be developed. Preaent efforta to neaeure the tar and nicotine
contenta of cigarettea are e ueeful beginning, hut unfortunately no
uniforn procedure hee yet gained acceptance which nahea conpariaona .

between countriea and aonetinee even within countriea elnoet inpoaaihle.

'9

The long tern picture for the induatry done not appear peeainiatic

1

but ia cautioue. The food and Agriculture Organiaation of the United

‘3

latione (2A0) in eeneaaing the future of tobacco during the preaent

.1 1;:

decade connented on the inpact of the necking and health iaaue:

The direct influence on the level of tobacco conaunption of the
varieue nedical reporte enphaaiaing the health haaarde of enehing
end which have given riee to anti-anoking canpaigne in varioua
developed countries, hee only been alight so far.1 One of the '
Iajor effecta hee been a rapidly growing denand for low tar and
nicotine content cigarette leaf in the United Staten, Cenede.
aeveral European countriea and Japan. and thia trend ia very
likely to continue during the next decade. 9 "

‘- .77". -c

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364

The report continued:

Further proof of the adverse relationship between cigarette
seeking and health and the increasing attention which is

paid to this problea nay finally result in a trend toward
stagnation or even decrease in tobacco consulption in this
whole group of countries as has already been evident in the
United States and Canada. However, this is, as yet uncertain
end at the.world level and decline could still be.aore than 10
counterbalanced by rising consueption in developing countries.

Iron the industry's standpoint per capita figures are indicative of

 

the difficulties that the industry has faced. £25.55pi£g_consulption in
Britain in 1961 was only matched again in l966, while in the 0.8. the
1963 rate before the Surgeon General's report has not been reached again
since. 11 The Canadian picture is such less clear with Egghggpigg.
consulption peaking in 1966 which has not been reached again since.

C. Consugption and Politics h

Behind these aggregate consuaption and pgrhgggigg_figures lies the
industry's basic difficulty both in econonic and political terns-in all
three of the nations under study: the decline in the proportion of the
adult population that smokes cigarettes: Cigarette sinking any well have
reached its peak. As we have pointed out in previous chapters, tobacco
colpanies have hedged their bets by diversifying into other fields and
by entering foreign aarkets that are growing at a such faster pace than
their own.

The percentage of the population that snakes and the nunber of ex-
elokers in the population are politically iaportant. Cigarette seekers.
and ex-cigarette seekers and non-seekers all like up latent political '
groups. Behind AIerican governnent actions has been the knowledge of
growing public support. in fact,the political rationale and incentive for

govern-ental action increases as the percentage of non-eeokers and the

b
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365

nulber of ex-enokera in the population increases. The anoking ieaue
which is ac salient to the personal lives of no many people night he ueed
by political entrepreneura to win votee, although this appears unlihely
while a large proportion of the adult population elokee cigarettea.
levertheleaa, draatic action ia not very likely because it would alao
alienate Iany wotera including both anokere and thoae tied econonically
to cigarettes. ‘
D. ‘Eggsgg.§£3£gg.Conaunption

In the United Statea the percentage of adult‘lalea eebking ciga-
rettea dropped froe 52 per cent in 1966 to 42 per cent in 1970. [To‘
repeat, the v.3. figures are haeed upon the adult population above 13
while the Canadian and Britiah figurea'are based on the adult population
over 15 yeare of age.]' Along women the decline during the eeee period
waa froe 35 to 31 per cent.‘ The nuiber of'ex-eeokere in the united
Statea haa increaaed froe a total of 19'Idllion in l966'to 29”Iillion in
1970; 12 a large potential, if unlikely, voting bloc. Further-Ore, the
number of aeokera haa dr‘opped froe ‘9' eillion :6 u 112 Iillion during
thia period. Daniel non, director: of the National biker-1mm“ for -
Seating and Health, reported the reeulta of a nationel survey of the ‘
total adult population; " ' E‘

The government aurvey found'thet in 1970 '6 lIZ’per cent of the
adult population agroed‘with the etate-eat, “Cigarette aloiing“ie enough

" 13 Further-ore,

of a health hazard for aoeething to be done about it.
60 per cent of the aalple agreed that "Cigarette edwertiaing should be

atopped coepletelyi' 1“ Born continued}

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366

Even such a strong prOpoaed resedial action such as, "The
selling of cigarettes should be stopped cospletely," which found
favor anong only 23 per cent of the population in 1964 and again
in 1966 has risen to acceptance by 38 per cent of the population.

. These are sassive changes of a gagnitude mom in public
beliefs and public attitudes.

Born interpreted the survey research done for HEW as indicating that
”Negative reactions to being in the presence of ssohers, support for such
greater curbs on the selling of cigarettes, and placing even sore restric-
tions on cigarette advertising are all now sejority views rather than

" 16 One final response was presented which isdiates the

Innority‘viels.
success of the govern-eat and health interest groups in'presenting their
sassage and in gaining broad public acceptance. Theouestios and the
responses to this question are shown in Table 3 for both sales and

17 Obviously, froe the

fessles in sasples taken in 1966 and l970.
response to this question, a politician in the United States sight sssuse
that relatively few of his constituents wish to esoke. Turthersore, even
ssong current ssokers over 66.5 per cent of the sen and 73 per cent of

the wosen agreed with the statesent "I hope sy children never ssohe,"
while an odditionel 12.6 per cent of the wosen and 16.7 per cent of the
sen lflldly agreed. Only 6 per cent of the sen and 6.3 per cent of the
wosen either sildly or strongly disagreed with this state-ant. ‘ This
would appear to indicate public support for progress directed towards .
istorsisg children of the hazards of ssoking and/or preventing sinors from
seeking. l8 "' ’ ,

B. Canadien Consggption

In Canada the proportion of regular cigarette seekers in the popula-

19

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367

Table 3’

Uhat would you say is the possibility that five years from now you will
be a cigarette ssoherT .

12.6.9. .121).
y. .1: . 14. 2 1
Definitely yes 11.8 5.5 6.7 3.1
Probably yes 23.3 18.9' 16.9 13.1
Probably no 14.7 12.4 22.7 17.2
Definitely so 63.0 61.7 - 52.6 63.7
K/RA g 2. 2 _ 1. 6 3.1 _ 2. 9

a. Daniel horn, "The Seeking Probles in 1971, " address to the
Assricn c-cer Society's 13th haul aince Hrioere' Gainer, Mix,
Arizona, April 6, 1971.

Table‘6
Canadian Cigarette Ssoking

Habits by Region.
Total ' =-
Canada Atlantic Quebec Ontario Prairie D.C.

Males who usually ssoke ' - * ’ ‘ .
cigarettes every day 1 53.6 53.6 . 61.8 50.6 68.5 50.0

Hales who do not ssohe .
cigarettes 63.1 63.2 “36.9 66.0 68.6 67.3

'Yessles who usually ssohe ' ' ‘
cigarettes every day 30.6 27.1 31.5 30.5 28.9 36.6

resales who do not ssoke _
cigarettes ‘ ‘ 66.2 70.1 66.2 66.6 68.6 62.6

a. Hales and fesales l5 years of age and over. Data in obtained
fro. the Cuadin Departssnt of National Health and Welfare. ‘

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368

cigarette .ekers non; nan 13 years of age and over decreased in Cusda
froe 53.6 per cent in August, 1966 to 51.7 per cent is October, 1968. The
proportion of regular seekers nong voaen over 15 increased froe 30. 6 per
cent to 32.5 per cent in the sane period. 20 The overall percentage of ‘
seekers reaeined the ease during this period. '

In federated political systeas the number of cigarette seekers in
the states or provinces is also of interest. In Canada there are sub-
stantial differences in the incidence of seeking in the different regions.
Table 6 shows Canadian cigarette seeking habits by region. '

321cm. coin-b1. which banned .11 forsa of tobacco advertising in
1971 is below the Canadi- averaga in the percentage of usual cigarette
seekers but has the highest incidence of feasle anthers. lance, while
regional, provincial nd/or state cumtion patterns say be interesting,
the relationship betwe. variations in consuption rates Ind govern-Intel
action is unclear. In the United Itstes at; 2223.9. rates'hetween states
differ very substantially, 2‘1 partially due to differences in the pro-
POttion of the population that whee, but also because of differences in
cigarette taaas and retail prices that have led to both orgnisad suggling
and consuer purchases across state lines.

I. Consunption in _G_re__a_t_ Britain '

The proportion of cigarette seekers in‘crea't hritain has also declined.
"bile recent accurate figures are not available, Mar, ‘Ch‘ief fid‘ical Officer
for health in Great Britain has reported that the proportion of cigarette
IIDkers in Great Britain has declined free 57 per cent in 1961 to 56 per
cent in 1965; an absolute «cubic: about 500 thousand during the
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369

of Egglghflggl£§_that "at least a million fewer people are smoking in
Britain." 23

Figures on the proportion of smokers in the pepulation should be
taken as indicative rather than definitive. Differences in definitional
criteria between countries (as well as in the nature of the sample used)
again lake cross-national comparisons nialeading and inaccurate. 24

with the added impetus of increasing cigarette taxation, cigarette
prices have gradually increased during the last two decades in the three
nations under study. Cigarette consumption is also a function of price
as well as taste (although cigarette consumption does appear to be
relatively inelastic to price) and substantial differences in price
(especially those due to substantial differences in the level of cigarette
taxation) exist between these three countries. Smuggling has often taken
advantage of disparities in price between countries and while British
citizens are checked for tobacco products when entering the country, we
found no santion of smuggling as a problea, as it has already become in
parts of the United States.
6. Conclusions

Three general trends in cigarette smoker behavior are apparent in
all three countries and appear to have resulted fro. the smokingehealth
controversy: (1) an increase in the sales of filtered and lower tar and
nicotine cigarettes; (22 the increase in 22! gapita_consumption has at
least slowed and will perhaps drop; and (3) there has been a reduction
in the percentage of the adult population smoking cigarettes. This last
trend, while small, has been optimistically cited by fees of cigarette

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370

detailed information is needed to fully evaluate this and recent sur-

veys point out the continuing (if reduced) popularity of cigarette
sacking.

"“1

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3 3!.U'J‘JI £3.11. 3.2.11.1 S?J.‘IEJ.I...'J‘J \ ..Ji

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371

mt- - Chat-er XIV

 

Adaa Premorski and Henry Teune, _‘I_'_h_e L___ogic of Comparative _S_____ocial
w (New York: Wiley-Interscience, 1970), p. 11.

D. ll. lease, (ed.), Tobacco Conn-prion in; Various Comtries, 3rd
Edition, Research Paper 6‘(London: Tobacco Research Council, 1972).

 

 

More detailed infornation on the consuption of tobacco goods in the
United Kingdom any be (and in G. 1'. Todd, Statistics o__t_ Smhing__ in
t___he _Up_____ited Kin doe, 6th Sditim. Renard: Paar 1 (laden: Tobacco
Iaaearch Council, _‘_—1973).

After the release of the secmd Royal College of Physician report in
1971, the govern-ant reported that sales dropped 5.5 per cent for the
year. See "Cigarette Saoking Shows Sharp Drop After British Study,"

_‘l'! FE. York Tiles, February 6, 1972.

Cuylar 8. [leased and Larence Garfinkel, "Changes in Cigarette Saoking,"
Journal of the National Cancer Institute, XXIII! (July, 196‘), p. 51.
Also see their later article "Chages in Cigarette Sneaking 1959-1965,"

AIerica Journal of Public Health, LVIII, Ho. 1, pp. 3045.11: first

—_*

survey of tobacco snoking patterns in the United States using“ a nation-
wide survey and probability sapling procedures was sponsored by the
national Cancer Institute of the United States Public Health Service in
1955. See Willian Haenssel, Michael B. Shiakin and Bernan P. Miller,
Tobacco Smoking Patterns in; the United States (Public Service Monograph

No. 45, Washington: U.S. Govern-ant Printing Office, 1956).. For sore

detailed data see U.S., Depart-out of Health, Education, and Welfare,

Cigarette Seating and H_e_____a1th Characteristics: United §____tates - July—1964 -

_J_____me _1__965, (Public Bealth Service Publicatim No. 1000_—— Series 10, No.
T, Washington: U. S. Govern-at Printing Office, 1967), and sore

_, recently froe the aaa source, Changes in; Cigarette Seeking Habits
Between _1___955 and _1__966 (Public Health Service Publication No. 1000 -

Series 10 no. 59.— Washington 0.8. Cover-neat Printing Office, 1920).

Based ad Garfunkel, m g_£_ £2... nan... onal Cancer Institute, mm
(July, 1964), p. 51.

John D. Morris, "'l'ar in Cigarettes ls Reported Donn 1062 Since '56,"

m leg York Tiaes, February ll, 1973.

Food and Agriculture Organisation of the United Nations (PAC) , Agricultural
Co-odity Projections 1970- 1980 (Rona: PAD,1971). The section on
tobacco was reprinted in _T_h_e Limter, XLII (Winter, 1972), p. 26.

IVE

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2‘.

372

Tho Britiah figuroo nood in Tabla l aro baood on m cazita figuroa
calculatod coin; tho total population abou tho ago of 15. Tho 0.8.
figuroa citod by tho govornnant uao tho total population abovo 18.
Son Tobacco Situation, March, 1972, p. 6.

Mid Horn, "Tho Snoking Problon in 1971." a apooch proaontod at

tho Anorican Cancor Socioty'a 13th Annual Scionco Hritora' Soninar,
Phoonix. Arizona, April 6. 1971, p. 1.

Ibid.. PI 2.

Ibido. Po 3o

Ibid.

Ibid., p. b.

Ibid., p. 8. For a culinary of tho procoduroa uaod in tho 1966 and

1966 aanploa citod by Hon aa roll at tho rooponaoa to tho quoationairoo

aoo [1.8. Public Hoalth Service, National Cloaringhouao for Snoking
and Hoalth, Uao g; Tabasco: Pr cticoa. Attitudoa, Knovlod , £13

 

 

Boliofa Unitod Statoa - Fall 19 lo fl Szring (Roc vi a, Mary-
land. 1969) (in tho filoa of tho Cloaringhouao).

M-

95-

Canada, Dopartn-It of lational Boaltb ad Uolfaro. gfim
lflor 1969-2;: Canadian Cigarotto Cougztion Dram 3, July 15,
1969. Thin roloaao alao containa data on tho oonauption of
nnnufacturod cigarottoa in Canada tron 1920-1968.

 

 

Ibid .

8oo The Tobacco Tax Council. E; m Bordon 9! Tobacco (Rich-9nd,
Virfllh. 1969) o

Croat Britain. liniatry of loalth. Annual Mort, 1968. p. 85.
hold m, Iobruary/larch, 1910.
Gnu-national conporiaoaa of corront cigar-atta anokara by no: and

ago aro alnoot iqooaiblo bocauoo tho ago catcgorioa uaod in tho
U.S., Croat Iritaia and Canada dittor.

54": t. l

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.II

Chagtcr 5!: Claret“ Sucking and Public Policz

a. M

II tha paat chaptara wa hava axplaiaad the dmlapnnt and aatata of
Inching-hula policy ia than auction tha Vaitad Status Gmt Britain
and Canada. Va haaically hava maidatad oath nutty'a policy with
nhtiuly faw cmruou hem cmtriaa. Ia thia chap“: I. will
lath“ oat filth-nu; Otrinad at hiatariaal “tail. a-Iriaa tha uni--
mitiaa aad diffataacaa hatwau cutting aaa atta-pt to ”lain that.
In auitiaa. wa will aaa-ha aawatal thaaaaticai actiaaa taut tha
fmhtiamaf pdlia policing which will halp aa ta aapiaia oat caaa
an“... lento! thaaa lad-la pmidaa a aatiafactory:mlnatioa. hu-
m. and tha. pictara at iatataetia; foam :that e- ha attach“! (to.
tha ataiy at awahina and hath-policy ia Ina «film an ny of than.
We will all. «data tho pracaaaaa iawolvd and mhuzthait inflation
fat-moan: aaifatara public pliay. Havaaah ta hmiha aaa aaalyaa
put and praaaat mic, aa wall aa araaaathpalic) altaraatiwaac
.I- mm
1. :2: m1; 2!. mm m

tho ability at mm: to mida tow and. kink at film 3004a
1a “min. Na in aaaaaiauy ttaa flan tha aaa} at .pfinaaatina
anniata with Mividwal {roads-c nu far c. flaunt-urn ta;
"at.“ an iadiwiaaal'a haalth? Can'thatpwamut tag-lavas. idiwidaal'a
“human or phyaioal activity to "amt hi- aaaiaat diaaaaa or

373

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{Vi

37‘

injury! tooplo ottoo bohavo in won inioical to thoir own hoolth. Should
ad on mmt oct to protoct tho individual tron alt-injury? It ao,
ha ahould tho govormt oocqplioh thio? In tho Unitod Stotoo. Groot
Iritoio. and Canada. notional govornoonta‘havo actod both‘to'onlighton

cigorotto ooctoro and to protact both chlldroo ad adulta froo tho hoolth
hazotdo oooociotod with cigorotto oloking.

Hhilo tho ond rooulta of thooo govornnont offorta on tho incidonco
of illnooo. diooaao ad death oooociotod with cigorotto onoking aro not
cloor. tho fact io that thooo govornoonta havo acted and hawo juotifiod
thoir offorto. Efforto to dofino tho noturo of tho oooking-hoolth problol
and tho govornoonto' rooponao havo contorod around apocifying tho proper
rolo ad goolo of public action. 'l‘hoao offorto hovo boon cooplicotod by
chagoo owor tino in tho focuo ad purpooo of gowornuntol offorto and tho
goolo of ati-ouoking raforoara. In tho following ooction. wo will con-
oidor tho goolo of tho ati-aoohing roiorooro and tho typoo of govarnoontal
afforto doaignod to roduca tho illnooa and dooth duo to aooking.

lncroooingly. privato intoroot groupohawo oppoorad to turn to
gowornoont to prooocuto‘thoir interooto. Iho grotionalo tor govornoont
notion in ditforont iaauoforoao hao boon ropoatodly changad to logitioiao
octiona in now aroaa ao nowLproblooo horn atinulatod interoat group dooando
on govarnoont. Cigarotto oooking hao boon-o ono ouch arono. H d

Public hoolth in a abiguouo goal that io difficult to oooouro ad
"on hordor for govornoanta to prowido. Nowortholoaa, tho increaaing
Uoronooo by public officiolo and oodicol outhoritioo of tho rolotionohip
I”moon cigorotto oooking ad hoolth. hao lad gowornoonto to intorvono in
tho tucking-hoolth controvoroy by attonpting to ondify o_ookor bohawior and

5! otto-pting to chongo tho noturo of tho cigorottoo that on onokod.

'— '_._r...,-v__

l‘.

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In tin lJnitod Statoo, south-at concorn aout ciprottoo fiat
toaaod on oigol'otto odwortioing in tho 1.930% uhoro it arouoad littlo
public notico. Gowotuat ontim inthin auo hao boon odniniatorod by
tho Fodorol Trodo Co-iooion which h. ondoovorod to-oliuinoto foloo, .
doooptitn ad aoloading cigorotto Waning but nothing aro. In tho
oarly 19505. a tho body of ociontifio roo‘oorch ovihtoo linking cigar-
otto cooking with diooooo grow, incooooing attontion ad oonoorn bocono
foouood on «:13th Apporontly. nodioal ‘gonupo- amend onoltoro- tn -
roopond to thia growing vol-o of «1m. hohorw ‘roopondod. ’howowor.
not hy giving q» cigorottoo. but by “itching to tiltorod variation which
woro hoowlly pronoun by oigoootto wanton” uhooo odtnrtiaing ialiod
tho pro-ion that tiltoro Md tho hoolth notion; . *- = v ' -

Ihilo GrootlritainadCaadohawohodoooquiwolonttotho no,
tho hiotorical ooquonco‘ of now ooiontitic ovidaoo. tho grating hoolth
intaroat group porcoption of tho'ptohlon. ad tho donada for polio
oducation ad govornno‘ntal action hava boon parallolin all thooo oouotrioo.
'fho gowornant'o of Croat Britain and Caado howo nowor focuood on truth
in advortiaing ao :5. goal of public policy.‘

lbro' rooont affort'o in tho 0J.'to ro'guloto cigarotto adiortioing
woro oxpondod at tho goal of propononto' of policy'ch‘ongo ohiftod tron
truth in adwortioing to that of protocting tho hoolth of onohoroé lhia
changa caa only aftor tho‘tirat goal (truth in advartiaingywaa'aohnor-
lodgod no inadoquato to bting'ahout I fair balancod picturo to tho 'oonduor.
m hiatory or gmrnnantal raoponao' to 'tho ati-ooohing propononta of
policy chango io lorgoly a hiotory of trying out a oorioo o! naano to' roach
tho goal of tho radoction of illnaaa and dooth duo to anoki‘ng. ”rho tadaral

Co-unicotiono co-iooion ad tho Dopartant o! hoolth, Education ad

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Ieltete heve tried to eeect pcliciee which would infer. the public of
the peeeible heelth heurde involved in cigerette noting, including
heelth-ntninge ad «ti-eating edvertieing.

the Britieh eed Cenediee goeetmente heve‘pureeed‘eieiler efforte
to infer. the public. Ietioue govern-eat involve-eat with cigerettee in
theee cemtciee. booever, doee eet eeteeete emu-e overvthe heelth heeetde
ei etching. hoe their tit-ct public teepeeee to the ccntrovecey' ie the
early 1960'.“ the Iritieh eel Mine govern-cute heve ought to protect
the heelth o! .ehere eed intone weeeherea ene chilem cf the poeeible
hueree. - All three soviet-ence heve ttied'to tenet the -eppeele of
cm“ “ttieihg to lime‘thmgh edecetioael profit“.

h ell “three «mice; ctr-cigerette cmciele, «mine on
cigerette pechegee or in cigetette eevettieuette, cutter end nicotine
mageece pert of the enact te «eeecete the cigerette «ee'-era onehle
hi- te weigh the peteael benefite eed coete of eeehieg. the emreignty
of infinite]. cea-net choice rennin, bet :the govev-eht “hee tehen' en
ecti'ee'mle to help We‘mhe theit'decieione'dn thelheeie of tore
me”. The goel of thie type of Mt policy wee to infer. the
public, end thee, chose the cmtial of cigarettes, tether-thee to
chase the mfectmcct the me it lied: ite eee.

the pel‘ef ;the We ‘of Wigwam ection ”did ve lerge:
gout": role in protecting ’the public has been to reduce thc incidence
of ill-her“ deeth due tn cigerette eating. “thie gael hee haunted
nee W ectim end theeete- of lturther etepe. ' .1 ~
- ' . Joe ell beg-eut- o! theee three: governeute ere enthueieetic‘ ehout
"rem 'policiee. m, in their efforte to protect public
hatch; govern“ heve -C manner winch 1m tobecco-

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377

Ieeefecturere end froe business end edvertisis: groups who here objected
to the studs these govern-outs heve teken end especielly to the prece-
dent-setting nethods thet heve been used.

Appemtly. soverueet efforts in ell three countries to infore the
public hed been expected to heve e uthlergsr input «cigerette con— ~
s~tion then they heve hed. The ettrectiveness eed' pleeeure of cigerette
not!!! hed been .dereetinsted end Iieunderstsedlythose uhs felt thet
"ruins were sufficient. If public responsibility ends with versin. the
public “of the heeerde. the govern-est hee deee Iers th. enough to pretest
present eed tetsre seekers. lie-lever. the failure st this first eitort to
reduce cons-ptioe hes Led to stronger governIent ectione which here ”no
beyeed the origieel uelsmf govern-estaineslvensst. ‘

Ioth stete (or provinciel) eed eetieeel govern-eats in the 0.8.,
Greet Iriteie end euede hevejersued e third-hind of effortvthet hes gone
tenths:- thp sduestie; the public. Lens prohibiting cigerette‘puuhesss
eed-ensues by Iiesrs here hssezio eftect (seen ifw.ueenterced)rse:the
stets level in the United Stetes. Greet Briteie, end anode .eiIcelths»
first we deeedeeof thiscsntery. Thee. the rights of sinors to seeke—
Vlt's united It s till whee thus-skieaxmtmreyxnenlved ereud netsl
questions. veryksililer to these :reieed ehout elcehol consenting-eed
well heist. the sIoking-heelth linkege wee publicised in the eerly 1950's.
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redio cigerette edvertieing hy citing its eppeel to Iinore. As e result,
industry cigerette edvertieing codes in ell three countries heve ettenpted
to linit or her cigerette eIoking in public plecee such es in buses,
theetres, eirplenes, treine, end hospitele. The protection of non-enokers

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froI motors hes hecoIe en inportent end grouting focus of enti-enoking

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I . .

378

activists who hope eventually to sake cigerette seeking an unacceptable
social custoI like spitting.

lore ieportently.~3overneents also have begun to chengc the neon-
lecture and coneueption of cigerettes. The 0.8. and Canediea govern-ence
heve pressured cigerette‘esnufecterers to chenge their products by publi-
cieing cigerette ter end nicotine contents. Such publicity hes directed
public awareness end concern to these indicators of the "heelthfulness"
st perticeler breads. while eenufecturers have not responded to this *
pressure eaiforely, esny new low tar and nicotine brands have been intro-
duced, and the ter and nicotine contents-of eeny popular brends heve been
reduced. The British governeent pleas to begin releasing such date early
is 1913 along with the advice that "those who met esote- should choose
breads with the losest ter end nicotine content." 1

’Ieceetly govern-est entices have sought to‘chenge cigerette consqu-
tion by eepheeieing thet~if‘yeuienst seoke, there are styles of snaking
that are less hereful then others.- These lees her-fol styles‘include i
lieitieg or claiming intention, set sealing cigerettes'dewn to-the butt,
seoking filtered low tar and nicotine brends, and finally, reducing con-
sueptiee. As with ether cones-er products such as eutoeobilee and drugs,
govern-sets eppeer to have been-sinors active in protecting consueers in“

recent years.

2. the lit-custom o_g Public Policy Alternetivee end Actions *'

 

ProI our consideration of the necking-health controversy in the United

‘-

States, Great Britain and Canada, several factors appear perticulerly
mIportent in expleining how, why end where the controversy has been exaeined
end whet ections have been  teken. Certain besic patterns and trends have

eeerged which rennin to be tested in a wider universe of politicel systeIs.

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379

The balance between governIent actions end industry actions differs
in the United States, Great Britain and Canada. Governaent-ieposed acts
in one country are soectinee accosplished with industry cooperation in
another, or by industry seeking to protect its self-interest. Another
isportent difference lies not iejwhat actions have been taken, but when.
Given the present goal of protecting the public health, policy
alternatives range froe doing nothing to prohibiting cigarette sIoking
and severely penalizing eIokers. Anti-seoking spokeseen generally have 5 ‘ 3
been dissatisfied with the results of past governIent efforts. These 7 fl
spokes-en successfully have sought to shift governIent goals (and hence,
its responsibilities) away froe sinly proeoting truth in advertising
and educating the public to the hazards of cigarette sacking. They have Lib.
asked for greater efforts restricting the use of cigarettes and further
controlling their contents, thus reducing the incidence of illness and
death that cigarette sIoking causes. - a 3

bong other things, anti-smoking advocates have proposed the following:

1. lieiting by law the IainuI eIounts of tar and nicotine a cigarette
can contain: 1 , . . .

2. alienating all for- ef cigerette advertising including billboards,
Iagesines, newspapers, etc.;

3. eliednating all gift coupon ache-es used by Ianufecturers to increase
cigarette mention: . .

s. increasing cigarette tenetions‘

5. taling cigarettes: at a graduated reta'basedoa their tar eed nicotine
contents; and

. . . . . . , g .
6. banning cigarette necking in public places. 2

Still other proposals have been ends to elininate the inconsistency of
governIent policy towards tobacco which has been especially apparent in

the united states, and to a lesser extent, in Canada. Govern-ant progress

.1 . ,l

 

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awn? o7q Jaumnuuvua .nbsna) ni .Jnijo 138391 s o) bfis ,aelhfii buJEJE 9‘3

380

for tobacco growers, protective tariffs, and export subsidies have been
contradictory to the goal of reducing cigarette consuption. As Robert H.
Rudd noted in relation to the United States:

It appears that govern-ant has positive concern for

the tobacco producer and his economic welfare, while

it views the product eade froe tahacca -- specifically

cigarettes - as hateful . . . .
The elinination of all 0.8. tobacco prograes has been proposed to remove
this inconsistency. Another proposal that lay have been considered but
has not been talked or written about has been the prohibition of cigarettes
and/or cigarette type tobaccos. H ‘ m. .

without euch prohibition in has been difficult for the 0.8. or
Canadian govern-ence to legitieiae actions that would hare tobacco groéers,
and as a consequence, jeopardise tobacco supplies for doeestic consulption
end foreign exchange. Any sharp decline in tobacco production eight have
to be lid. up of foreign ilporte. with.their:adverae_iepact on a nation's
balance of pay-eats. The elinination of the present tariff on ieported
tobacco would eake foreign isports sore attractive to fi.s. eenufacturers
and place AIerican producers at a coepetitive disadvantage. Thus, unless
sqeehow all cigarette tobacco consueptioe could_be stopped, tobacco pro-
duction lust be continued in the U.S. and Canada to avoid ieporte.. The
experience in the 0.5. with ssrijuena and with slcobol.dwring the prohi—
bition. also points to the possibilities of illegal trade thet would.
flourish if.a prohibition were again tried. The resources needed to control
the espected bootleg esrket in tobacco would.be enoreous. whera.such
advetee.prescience does not exist. and where regulation poses little or
no problees with consueers, govern-ents have acted to benpaconoeically
profitable cones-ables such as the drug,thalidoeide and the sugar substiq

tute cycle-ate, both of which have adversely affected hu-en health. The

aafbiedup Jrnqxs ins ,eiijicj 3V})35301Q ,atowowg annuio: is?
.w 31¢H~fi 8A .fisijzm anon sfijeregfs fifliDubST 30 Isng 9d: 03 yvojelhhrfluna
re 7532 hojinl ed? on nojjsiar n1 b330n Lbs?

fm’x {I‘lfi'flif'Y} :‘:vi.3!::oq 5:94 Jrrwm‘wvog 38:53 ansaq-‘gn :I

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yiisvfiivoqa -- unanfipj mo}? sham joubnjq 9d: awaiv 31

L. . . . luEmvsd as -- asJJszrgio
ovary: 91 bqaunnxq ncni ard emytqan osondoj .2.U lie 30 noljnnimjiu ELY
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again” ,eudf .QfifijnSVbLeib avtjlnaqmoo s 35 819nub01q analjsmA 93511 has
-0fiq abandoJ (hagqnja sd bluoo nviquuanoo oossdnj 933o1ngi0 lie unfinnna
«AI .ailoqni biove 03 fibfififij has .3.J sfi? n} bounijnoa 9d jaum noizjrb
«laurq 933 gnlrub lonouls djiv has ensuilasn djlw .8.U 553 nl snuglrsqzs
biuow 35d: 3hs13 1339111 30 seiziiidiaeoq adj 03 ejnloq 081s ,nnthfi
Iowjaoa 03 baboon eoyznnne1 efiT .bsivj H3535 519w noiJ?djd01q a 11 dairuuii
dove swsfifl .auumrnas 93 blunw oonedoj n} 39fi1nm noijood bejooaxe SA]

70 513131 Léseq uni3giaqaw Qweflw has ,Jnixs Jon aaob saneionnrq sarovfn
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H33 .dgjaed nnwyfl Lajgwiin vigavovbs 9vufi flaifiw 30 fined ,sjsmeffiva 92d1

381

factor of substitutability appears to be very ieportent here. There are
acceptable substitutes for cyclaeates and thalidomide, but presently no
acceptable substitutes for tobacco. Unlike cyclemates and thalidomide,
cigsrette.aeoking is associated with personal pleasure and enjoy-eat.
Turthsreore, both cycle-ates and thalidoeide have been used and have_been
ieportant to a.euch sealler proportion of the total population than cigar-
Out“.

with respect to cigarette seeking the U.S.a British and Canadian
governIents and societies have been generally alike in their acceptance
and protection of the econoeic values involved. Sqeetiees it has been
politically useful not to take scientific knowledge seriously, ignore a
problee.or postpone action when econoeic questions_sre involved., This eey
be generally true in cases like seeking and.health§ .

l...shen strong econoeic interests conflict with or are
hareed by application of the scientific knowledge;

2. 'where the problee has developed as an unintended
consequence of an econoeically profitable activity,
long accepted as honorable; and
3.. where substitution is possible or acceptable,
In particular. representative political bodies in the U.S.,r Cenede and
Great Britain have hesitated to‘handle this type of issuefbecause;thesa
cases suggest they are vulnerable to pressuee\froenaffected econoeicl,

interests, which are decentralised and econoeically ieportant in.spny

constituencies. __ -I_ . a

- r
v ‘ 0 l I.

Governeent progress have been set up to support tobacco production‘
and taxation. As we have pointed out, the governeent's own econoeic stake
and police coeeiteent in tobacco, through taxation and the benefits of. .

export in all three countries, and froe tobacco price and export supports

- _J

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382

1a the United Statea and Canada have hindered governIent action to reduce
aoking.

The variety of governIent polieua in the 0.8., Great Britain ad
Canada baa ranged between the extrenea of no government action on cigar-
ette aeoking and health ad a rigerealy forced prohibition. Serioua
public policy alternativea have been limited by a govermat'a goala, by
ita choice of rolea to adept (viva-vie the eceuay ad free choice), by
1:. political realitiaa .... by in perceptiene at unmann- a reach-
ing ita goala through epecific policy alternativea. Public policy hae
depaded alao a the rage and degree of voluntary induatry cooperation
and action, which hm aoatiae at legialation aneceaeary. The
induatry'a one etepe at tie- have been cw with the goale of
govern-ant acting and health pugraa. Oar thia countriea have cone a
long way in reaponding to the eating-health probla and their reaponee
baa been a coebination of both govern-tel and induatry actiona. not

A

govern-ant policy alone .‘

v
I

3. Health-Related leaponaea o_f_ Govern-ant and Indua g

'l'ablea 1 ad 2 ahov the broad divereity of government ad induatry
ectiono ad the diatribntioe of theae reaponeea by country. when govern-
ant ad induatry actione are coebined, we find that the reaponeea to the
leaking-hath oatrm in their theae Md. beset be. any
different. ole tact, aeide froe the tiling of govern-ate]. ad induatry
«time. which have differed betwea couhtriea, all three countriea have
had: .

l. publicity, educatiaal prograa and anti-aching advertiaaenta:

2. health reaearch or 'granta into the wilting-health _linhtl';

_'_
bit—v;~_-_>

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383

Tohlo 1

Dionnoiooo of Gavan-onto]. Booponoo to tho

Smkinrloolth Cntrovotoy
1. publicity, odncotionol presto. and onti-onoking odvortioononto
2. hoolth roooorch or grotto into tho outing-hoolth linkogo'
3. iogiolotivo hooringo
6. to: no unicotino touting
5. hoolth worningo on cigorotto pockogoo
6. olilinotiono of cigorotto odvortioin; in tho broodcoot udio
7. hoolth warning in cigototto oovottioin;

;
Tyne of communal Action
1 2 3 b 5 6 7

Unitod Stoteo yoo yeni yoo' y.- ‘yoo yoo yoo

1'. ’

Cnodo yoo yoo; yoo " yoo' yoot no no

Croat Britoin yoo‘ yoo' ' no' no" ' nob' ‘ noc ' nod-

 

fl

.tho Britioh pvornnont will. hogin pnhliohin; tor ond nicotino toot
rooulto in 1973.

l'Britioh oiprotto pockogoo com o warning voluntarily ocooodod to
ho tho toboooo induotry in Jonuty, 1911.

“voluntarily ogrood to by tho tohocoo indootty.

doinoo 1971 tohooco cooponioo hm tollovod o volutory odvortioin;

oodo vorhod out with tho [mm-Int. including hoolth nominal in oint-
otto odvortioooonto.

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Iobocco Induotry Booponooo Potontiolly Foworchlo
to Hoolth in tho Smking-fioolth Controvoroy

384

Tab lo 2

1. roooorch into tho outing-hoolth iinhogo

2. filtotod cigorottoo with rodnccd tor lid nicotino contonto

3. oolf-inpoood odvortioin. codo

J

6. voluntary hoolth worninp on cigototto pockogoo Ind/or

odvortioing

5. wimtory oiininotion of cigorottc odvortioin; in the
broodcoot nodio

6. linito on odvortioin; oxpondituroo

7. clininotion of coupon ochouo

8. linitotion on to: ond nicotino contonto

Unitod Btotoo
Conodo

Groot Britoin

 

Typo of Induotry Action

1

yoo

yoo

2 3
V“ 7“
yoo yoo_

yoo yoo

£_s. 6

yoo no no

~ . I t ~

yoo yoo yoo.

yoo yoo *

ititioh fir-o tonpororiiy rootrictod oxponditntoo.

'1

g i

'I
no no
yoo yoo
. ‘l . '
no no

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8 Y 6 d A E S I

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.auquiLcnqxu bajuivzaaw fiiljntoqmaa hu1i} fiaisifid

385

3. to: no nicotino tootinga‘

1.. hoolth warninga on cigaratto packapa;

5. tho olioination of oigaratto advortioing in tho broadcaat was
6. hoolth warningo in cigarotta advottioing;

7. inatoaaing conantion of tiltanod cigauttao with raducod
tar and nicotino contanta; and

8. oolf-inpoaod cigarotto induatry advortioing codoa.

In addition. tobacco conpanioo in all throo countrioo hava takon
throo oolf-protoctivo atopa: (l) divoraification; (2) attacka on flanking-
haalth linko and govoznout actiona; old (3) changaa in corporato nanao
to olioinato tho word "tobacco."

Actually, thooo comtrioo hon aifiorod on uly thtoo pointo, and
thooo hava hon rolatod to voluntoty induatry action in Canada. Hhilo
Candi-n induatry actiona hava hon toclnioally whatnot-y. thoy hava boon
ado moot tho throat of atnongor gonna-Qt tognlotion. Tho Canaan
tohacoo inoaotry hao agcooa to lioit oovottiaing "auditor“. olioiooto
coupon oohoooo aaa liait tho to: old oicotioo cantata of thoir bro-do.
ltiotto in Canada hava appoarod Ur. oohatantial than in tho 11.8. or
Graat aritaia. nooovor, whilo thooo apocitic atopo hovo not ban takan
by induatry voluntarily or by govotnoont in oithor tho U.S. or Croat
Britain. a nuhor of offOtto hava boon oaoo ia thia ditootion which hao.
oado 1: difficult to 3mm cloarly ma noun-y io mu. Tho olioinotion
of htoadcaat aodia advortioing hao radocod inaaatry advattioing upon“.
tom, although no tonal liait hao hon accoptod or inpoood. Tobacco
eon-tin hava tightoaod much out proootiooal offato no gift-coupon
Ichooao and hava triad to liait thoir appoal to adnlta. Further-aaa.

tobacco coopnioo in all throo oonntrioa hava rodncod tho tar and oiaotina

fl—

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386

contents of their cigarette brands. While, as previously noted, tar and
nicotine measures are presently not accurate or comparable over time,
tobacco companies have been producing and heavily advertising low tar and
nicotine brands.

Tho steps taken by both government and industry in the U.S., Great
Britain and Canadaxhave differed markedly from the relative inaction of
all other countries, which have been ouch slower in their responses (with

the exception of Denmark).

4. Factors Affecting Government Policy

 

The combination of governmental and industry responses within the
U.S., Great Britain and Canada has tended to obscure differences in govern-
ment and industry responses between countries. In the following section,
factors are brought forth to explain the differences in governmental
response apparent in Table l, as well as some more subtle variations.

The location, intensity and timing of governmental involvement have
varied substantially between countries. These differences are in part
determined by two factors:

1. which government bodies can respond to the problem; and

2. what actions they can take.

In the smoking-health case, it appears that the federated or unitary nature
of the political system and the fragmentation or concentration of govern-
mental authority and administrative responsibility are important ianeter-
mining the timing and type of governmental response.

Two structural features of smoking and health policy-making in all
three cases have led to a fragmented public response. Part of this frag-

mentation of policy is the result of the division of responsibility and

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387

audiority between agencies within the national governments of all three
cotatrims, each department having different goals and outlooks. Second,
there is the policy which has resulted from different independent units

of gosoinmat having limited authority ad responsibility to deal with

the issue. This latter cause of policy fragmentation appears to have been
are importat is the 0.8. ad Caada where the federated nature of the
political system seems to have created more possible independent actors,
each with the ability (even it it is limited) to deal with the question.

For eagle, indepademt regulatory bodies in the 13.8. have been
established to accomplish government regulation in “technical” areas.‘ The
Federal Trade Commission ad the Federal Conunications Co-iseion have
facilitated the exploration of the seeking-health problem and governant‘
regulation within the limits of their athoriaed activities and established
procedures. Yet, these limits ad procedures have slowed their actions
ad have made broad oeosidorotion of the eating-health problem difficult.
Furthermore. the limitations on their authorised activities have appeared
burdensome only when compared to our aspirations for these regulatory
agencies: compared to public agencies in Great Britain ad ca'ads, they
have been relatively free to respond to the problem.

FTC and FCC actions is this area have been unexpected ad‘precedont-
eetting, and mainly have stoned from the -efforts of individual person-
alitios. While bolh agsoeios have moored to be moving towards snore
aggressive, dyads role, they have set had the power or the sbility‘to
act on issues of this type outoido of their limitod‘poropoctiwo of
expertise ad legislati‘ madeto. noy have not‘boa- authorised or
equipped to consider the broader “motions of ‘tho smoking-health problem
or similar problo-. "not! authorisations have allowed thom' to aét in

 

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391

«an mum. Th. cum pelt-um man (111“ ch. Britt-h
mt.) iooued pun-mm duckies-Inna; in the high.“ Inn].- at
mt. ht. the Candid: political me. had four 1am:
actor. .11 hum: 3m. tho tho brim. um. th- cnndtn mm
M In tannin" my»: 1nd mud-nua- ot ch- publn. .d
«- ull-.017 hm inundation. mt. uncan- 1n and: h-
oot I... may quick on: “and”. W W‘ ”than
many: milla- until muss-.4199, “unimnfur
0.3. hfldadv. “W bag-I. .1! th- mtn but“ Mn not put
land to my haunt“. mut. flaunt, tho m total-.00 industry
in “manly,“pmumup-mgmm
«no.

no mush pun-nut bu has can has mun that in 0.8.
bi man. mm» “that“. but bun bald ad no 1031.01.21.01:
mmw- Instant. all-mama: Inlan- W4“ th-
anking-bond: pm]... chmfi Mutant“ um in tho dunes of
mm 11M!- ‘Luu. M «tum hm but mm by private
taunt: m “no: and mulling pun u find” in. 81: Bar.
Gob-r. - “II, «that have can plan with cut: puma approval.
but “that a «nun m III“ light tau 'n u tun of than;
unan- nd heat“: with ch joint-unfl- nod to: m ‘m m...
to much gown-Inc probably hu- uud Lap-t and hard“: :- chat:
“any mew ”out“; an m of m heal you“
a: «a. m but aloud “annual my ad My. In. exam
3 1m threatening Mo damn-uncle! the Matty at. in can“
find particularly, in tin mad luau. '

LC . -V.

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392

In the U.S., the broad ijplicatione of govern-ant ectiono often have
not been coneidered by the nun-atone end eeparate actore, nd atronger (if
eore naive) action wee sore likely to he taken, or at luat threatened,
by one or another goverucntal' -anthority.~ In Great Britain and Canada,
Me ooaeideration of the noble. and ite broader r-ificatione we
o-trelieed, saver-mate have eeend leee willing to act. That ie, the
hbita of the political eyeten determine that the coneideration of the
probl-enet takeplaoe at ahigh leuel of mote-e: andbe broedin
ecoee. In this eiteetioo, govern-lent till. he ceetiooe (there vill be
an -tonomue agencies flying off on their oil!) “eed aloe, and every aepect
ef tavern-eat reaponee will reflect the-oatlict of iateree'teo'vuhcreae in.
the taunted eyeten. eoee reaponeea will not railect the balance of the
contending forcee bat will be mtiean acte deeigned to unbalance the
eyetee 1a eee direction er-engther.

the threatening and uncertain ecoeeeic miroeaent ie. etill another
dependeet variable created. by. the disjointedyeclectie regulation and
taxation of tobacco and cigarettea ia’ the thited Statee; ln‘teaeda and-
Gl'eat Deitain. where there h- beeo bread highluel ceneideration. thie
induatry uncertainty perhapa.hee been reduced. -there could have-been
bread. high level eoneidcratiee in thew.8. if :the'Preeideet had been con-
«mi mesh abut the pnbl-a but to Breeideat hee been particularly or
at leaet publicly concerned. Thee. the level and breadth‘otnprohlea:cea-"l
“aeration ie ieportant in explaining induatry perceptione and the tiling
“Id lune-it! of governance]. tatereet. .imetigatioe eed reepoaae. -

la the aboence of clear legialative or motivate-and, the differ-
Oncee-bet‘lm tonal-eat depart-ease to to fiat actmuehould he ulnar

“k0. C-QOPOtétianfllmlyu' Melanoma: mm effottejy'govoruental

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393

apeoiee. the tobacco induatry and private health intereet groupe are
alnoet iqeeeihle to obtain. Such efforte appear to he eoe't fruitful in
directing additional reaearch into the problee rather than in directing
and organising efforte to reduce‘or change cigarette "ee’oking. Each
govere'eent nit ie'effected by intereet group preeaaree which oppoee
cuproaiee and cooperation vith 1:. ma. thie difficulty is recog-
aiaed in all three countriea, bat iaetitntional etrnctnree vhich appear
to caaee it are very reeietnt to ch'a'nge‘.‘ For aaa-pie; 0.8. tobacco
price eapporte ad export enheidiee have been two prograae (the latter
began after the Surgeon General'e report) which have been criticiaed at
being in direct conflict vith the’geveraeeat'e caching ‘id health progr-g
neither he. been ch‘iged. he lrltieh Exchequer he been notably relnctbt
to give up tobacco taaee froe cigarette eeekere. I. S. congreeeional -»
progr- aeeee‘eeent‘ ead‘o‘vereight hare not'been‘etrnctnr'ed't‘e eelihr'ate
different“ benveee mama. eed‘the‘coaflicting divieion of authority
and reaponeibility hee appeared very vulnerable to the narrow intereete‘
of preeehre ‘groape. Each group hee etrhg‘glad to define the into in ite
eve teree ae that the goal. nd'ectione of govern-eat voeld“he?eengreeet
’vith'iti deeiree. 'Iach hee ~eonght to eerie!“ ite own benefit! neingite
nineteehiee. Time. the treaenry hee eonght to collect revenuee. agri-
culture hae' new“: to eaintain and increaee aapltyunt. incoee and pro-
ductivity.'vhile health intereete have caught torednce dieeaee and taffet-
a... - - . I

heiever.'the“faet that cppeeieg laureate in the ‘aeehingehealth'
controverey have acceee te variant gev‘eraeent acetone and that theee’
agencie’e have veeted intereete, too. by no name iqliee that leee vill

be done the: in a eyetea where central. hierarchical decieion-aeking

915 aqunit Jagiojni diiuvd 5:8vi3q ban YWJRULAI 0333601 9&3 ,asiunags

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39b

evaluatcc the conflicting goalc. The more centralized Canadian ad Britich
political eycteoo have-not produced oora cubctantial reeultc than the nore
federated ad decentralized 0.8. cycteo. In the United Staten. it vac
crucial that all of the interecte involved had accecc to one or another
agency. If the anti-cooking forcec had not been able to gain a foothold
in the no and in the Dcpartocnt of health, Education. ad Welfare, curcly
nothing vould have been done. The cooking-health controvcrcy ic one caee
in which C. E. Lindbloo'c aacuoption that all affected interectc can have
at leaot. cooe influence in the policy oeking procccc ic borne out by the
reality.5 J . - I

Sooking ad health ea a political iccue hac been unpopular with all
but a fev politiciac regardlacc of political party pcrcuacion or country.
Not only have atrong econoeic interact groupo oppoced _governoont action,
but a cubctatial portion of adult population‘in theae three countriea
hee indulged in the habit. ad cooke'rc' recponce towgovcrnoental action
hee been uncertain. While it ie reaaonable to acct-e that the public at
large hao“ an interact in clean air. it ic not co reaaonablc‘to acouoe that
the public at large. ad ccpecially the cigarette cooking public. hao a .
interact in ay ati-eooking oeacure that entailc giving up the pleaourec
of cooking.

' 4.: av :- I v-- v ‘ ‘

“In each coatry. governantal efforte have been [oadc to obtain volun-
. s

tary cooperation froo the induatry. a approach vhich hee avoided the baeic
quectia of the role of governoent. Furtheroore. in the United Statec

judicial challenge ad lengthy litigation have been avoided by ouch efforte.
louver. even vherc induatry hee acted. it hac alveyc been under the threat

of governoent action.

 

M:

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395

Hare reeeerch ie needed into the nature of thia bargaining proceae
between induatry and government. In political eyetena where legialative
decieiona are not open to judicial review. there night be more incentive
for cooperative egreenente becauae judicial deleya in appeele and proce-
duree are not poeeible. and government ection cannot be legally challenged.
In fact. induatry cooperation with government appeare to have been greater'
in both Britain and Canada than in the United Statea. although thie eighth
be sore readily explained by induotry eerket etructurea in each country, ’
which ehall be diacuaaed um. While there to a great deal of diacueeion
about government regulation of buaineae; noet relationehipa appear to be
cooperative-end voluntary. in part becauae the financial reeourcee needed
to regulate properly are not aveilable or not provided; '” ' ' E

Governnnte in theee three countriee are heaitent to atteapt to
regulate. induatry. To date. the goale of government ection. have not
neceeeitated ouch regulation, ind governeent coata are einieal it voluntary
induotry cooperation can be obtained. " 'rar and nicotine. ratinge are'epora-
dic. and while legialative anareneee ie facilitated by annual governnentel
reports in the U.S. and Britain, the lieited goala of theae reporte inhibit
continuing consideration of eany upon-n: dineneiona of the problee.' The
uultifaceted nature of the controverey ie thua exaeined interaittently,
and in e.pieoeaeal runner; and it ia not eurpriaing that proponente of
anti-ending policiee eonetinea have need epectaculer publicity and.
journalietic rhetoric to ettract public attention. ae'a pertiel eubetitute
for etronger governIent action and ae a tactic to force euch action.

Coneideration of the problee.in all three countriea hee focuaed on '

cigarette edvertieing to achieve the goal of protecting the public. end

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396

eepetially einore. free eieleading edvertieeeente ad warning then of
eating haearde. Gout-neent efforte have eyebolieed their concern and
reetritted or elinineted the neat objectionable induatry advertieing. but
theee etiorte have had a aee'rtein ad ee yet un-eaeured i‘aact on total
matte“ If anything, the reduction in cigarette edvertieing hee Iede
the induatry etronger'eeoeoeieally. With reduced edvertieing expendituree.
protite have inereaeed. Advertieing bene or reetrictione in one advertie-
ing Iodine elone hate not been'e.penacea in reducing conenaption, at recent
".8. figured have indlceted. The eoeeeeitat reduction in the n‘er of
anti-enticing cenerciele in the United etatee ad poeeibly in Canada
actually my heve redeeeipuh-lic eee'een ad wereneee ot the problee.
Intent govern-net efforte in all three eonatriee alao have eought to
reduce the tar and nicotine leveie et'eigarettee. Unfortunately. our
preeent eeneueptioh eeaeeree heve continned to ignore needingiul'health
releted indicate“. needed. a etepnetie percentage of total cigarettee'
that are filtered hee been the neat popularly dieeueeed indicator of change
ad progreee. heater“ of aggregate'ter end-nicotine mum, ad or:
ter and nicotine eeneaeptien per eeehert would indicate progreee note '
eeaingfilly tha preeently ueed per capite cigarette consumption or the
percentage of cigarettea that are filtered and eofild.provide a further
etieeiue tor tobecco induatry action. the publieatien of tar ad nicotine
ratiage en cigarette peehagee in the united Itatee hee been an effort in
thie direction. ‘rhe'Caeadiia tehaeee=ieduetry'e linetation on the tar-hed
nicotine -cateate or no trade hee been a even etrager aetiee'.~ with
theee eaveate in eind. indieatore of cigarette eeeeueptioh have leggeeted
No that trende ie all three eonntrieec a trend (to. eenbtilterod-to ’-
filtered cigarettea. and a general deereaee in the tar and nicotine eontente

of cigarettea.

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C. Sync-15 Imrtonc:

Ho oro ottoohioa o otrou; ad. at“ how. on topronoblo
ottodol. Tho vootod intorooto oro voot ond thoy oro not

by on! ooooo ovil intorooto. ‘l‘horo to. (not of on. tho
ototo ond by tho ototo I do not noon ony porticulor govern-
Ioot. Tho loot booovoloot nd homo of odnintotrotoro

would find himoolf hord put to do without tho rovonuo thot
Inching brioso to. And thoro on tho ohotoholdoro. My Lotdo.
whotovor our politico. lot no not doopito tho ohoroholdoro.
Ihoy oro oootly onon pooplo ond thoy rightly put thoir

my whoro thoy think it will bring in tho loot. A hoovy
‘30? it! tho voluo of tobocco ghom would hit tho: hogd.

but of on but vory to: (to. looot. thoro oro tho onloyooo -
tho pooplo who work in tho induotry. Whot would hoppon to

tho- “ dutotto outing woto ooddnly to booolo forbiddoo
or to booono toboo? Would thoy ovornight find out jobo?

. m thoy to bo uctiotood by ”nothing which 1139:, thoir
foult? No. .3 Lordo, it'o not oo oooy. 6
Ron of Anon to tho Homo of Ludo ,

1. m 25 Politico

no ocooooio worm“ of datum oopooro «Idol to iohibtttn
”m1 oottoo to rodooo .oturottohonoonttooo m. tnumoo
nuoo mo. coutttoo ad to flood co tho solo ot canon“ 1o. urtcultuto.
moo-at. trodo. no tosottoo. .. .:

Sorotol potato upon to wotxoot forth“ amounting LAD“! of
mun» lunchoooo hovo boon snout“ bx out otudy. but 31m tho; tho
Inplo of than count“ to outbox voodoo on "pronoun”. tonhor
mun 1- non-um lulu-no. mom-c-59- nun-tuna. than.
“not tho pmoxnon of pooolo ottootod «caudally by dunno coo--
W. tho Loco. uhoh tho gonna-o: to to oct to zodooo aux-«to.
Woo. 8o- mono emanation-“ ouch . Mo touroot.
mum... opon ooroootoso. of tho toto]. molottoo. to toportnt oooogh
'0 tho .oooo oohoonttol odor of logiolotoro too-nun to dofood tho

intorooo viproooly. Iowovot. it tho totol'oot to too mound. oot

(QC

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kw 3i AfliHJ 29“: siadw gonom
0955603 13 oust ed: at quzb

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*TZflCLHOD 093 81 3a319731 9&3 i: .Ich uH .vlaxm :oggv sasxajz

398

cough logiolocoro V111 hm :hio inooouvo. In tho [1.8. no Cooodo,
one“. fnoo mglo ooobo: auction mom co “to oocontuooodooo-ooic
hum“ tho: on “My mum“. Bot tho- :hto potato hoo
ohoroooortood Groo: Briton oo coll. ”mono. coocooo oboo: toboooooiou
an onion to Woo manual in dosh-“or mutual“. Al-
though tho nun-o mull-B 1o -mo o-Iultlod 134.813.. owuxobocco
m. tho ”.I.: too hau‘ro‘qor to ooh. Tho duo donor.
holy oo rottoo or moon“- tho man-m.

- no magma-on not-moo ottoboocolo Momma loo
to. ”stud by poltuctno ud Jddotucou. 1o: oquo. trodo in
oobocoohoo boo won‘t in o “or“ mono“ 1...-mm; o mourn-
mt'o Ion-oo. . rebound uncommon: onoofiofiolp ,omuoo‘o
boluooot poyI-co. In ooocrooc. louo tobocoo tqorto would to on in- -
ooottoo oo opoo pun-onto}. ooctoo oo-oodooo. dooootto mun.
“W‘”u¢0 tooto.“ oft-{nod Io :toboooo momma: h-ofito
pan-no. Lot'o Buuoh Woo! cohoooo Mm'lmlooohI pvooo-
Iootol oocton to-udummomtiou, boooooo no“ oohot- moidotouooo.
oooh mood-«1o: could homo . ado-too up»: on cohocco to: rovoouoo.

Gown-nu]. to: tomooo fro. oobocoo old oigmcuo hon boon tory
otoooblo to tho 0.8.. Gm; luau...“ cum. to mortonooaoi mono
mason.“ mum]. taxman norm about“). (w..umg).
ad boo oodo tho gown-on: o porno: in tobocoo oonomuou. In foot.
para-out“ noon toon touts. boo hooo »umt.-ch- “dour; ”onto.
who!» mutton utfmuoo o1 1am. um no uplooostohoooo
now no oooroooo» .

‘no noto]. poltuool moot.“ ohoooavoqtog W of uhouo'o
Cmodotuo’rWou not, onllotonuol. robuoo'ojitnouonio sung:

—-—V _w'"-

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oh .earvnsvxijcnmg Tadufim~fiiynia u: Lsaudiuaaib selwsflil a: astvua bun
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pruninJ saglqs1 03 23353 avian“? 30 29131u01321b inal3iioq an: .qlisnli
. auum‘x ous 6‘16 89L'.::1'.';fl

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Zaiifia at nutssunie a'oxungui .isznnnauua {zuv at sonfisxoqml 312:.“ a

399

in aony roopocto to that of tho actonbilo which aloo hao cono in to:
critici- bocaooo of ito unintondod nogativo c-ooquoncoo. Tho ooononic
inert-loo of oono ocno-ot producto to an float to both tho inflatry and
tb nut. and no don: to tho not, that it io'difiionlt tor-notify
my of thoir nogatiu Wool. -

Vootod intooooto oppooin. chap oaiot within both “try lid
mt. Ibo ”caution and diooribntionnf .ubacco oroatoo jcbo ond
coyooiolly incono which aro pliticany difficult to tqor with. Tho
publ- of providing hoolth. a public (good. in wot-tial“ it io-.
.1!“ by anon nun-ammo and political haunt. tot.
lacbhaoboudonoinqitooithoooonoqic {ononi-ooh“.-

‘Gnht‘tal- W of induotry boo linitod tho diocrotion of
induott: on-.-“ u ohooooa. Wt“ at; jot-due, ..d has do-
on. in fact. in thooo contrioo for -a union; tion.” nooo ot-daflo '-
baulotollinoo boo .ooto monotonic.“ bo. Lino thonootinhotry. and
loo-nth .tho-antooohiio ind—ta, tho.oobocao Mon'orproduoo oao-nov
toningltntdot .16.”. ocmtiny and govornnato aro ‘lattonl‘ptin; to cotablioh '
conttolo ...: thoir man... to 5...... th- $6116.. '1

mi mmmméy .: thaptoblon ......1... {rd}. tho 'potoiotonco of
tho outing habit and tho cloaouro upon which" it 'io‘. baood. lhio v6.1a bo
a vary tough ham :6 an with an". '1: thorn {um 56 cabdécb incinotry
‘t‘ll, - ..._ v, :51...

Tho tobocco induott'y hao boon moccc'oooful 'i'n otopping regulation
cums... hay havo continua to aoko enact-d in thoir pioduétflthat'“
night 5. humid pooitiéoly 'cé hoolth. ' mam... ‘inoti'tutiono and pto-
coduroo hava boon ootabliobod within sworn-ant that can bo‘ oxpoctod to

hoop track of tho Inchinrhoalthlink ant! pooh for": graoual inprovonont.

.ri‘ww-‘—‘W"J

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but. 271 Ja:~;.-.':.'r as}: ILJQ'J' (,3 3591:; ms ki Bjuuimrq ‘13.".181703 sum; 3.) 93:1...‘315. I
qiibou DJ Jlugiikib at 31 Jun: .Yuau 933 03 isub ca bus .3uaaulbvog QXJ
.easnsupuauoa avifiuuon 119d: 20 gun

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abusbALJa aasdf .umli gnol yuev a :03 aslijnuoa saauJ mi .3953 31 .na
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won 915 Bjauboxq a'ziioubni oassdoJ 9d: .ngeuhnk alldumoaun 963 glnuuysx
dciidsjas 03 guqumsJJa 915 aJusmn19vog bna ynixuxac seals zubnu guiroa
.allduq 9d: nasaozq 03 Baseboaq 119d: ISVO eioxjnaa

io ssnosaiazeq an: may} 02in amoJa msldn1q adj 30 (niildnjanwanl 9d?
9d biuow aid? .Lsasd oi 31 fioifiw noqu sauesoiq sdJ hns Jidud guiiuna ofiJ
xxzaubnl oozsdo: on sxeu 939$: 11 nave dalw lash on moldqu ages: {32v 6
.ilu 33

neijniuaox nuiqaada n1 Iuleeunounuu usad can yxaaubal 0931603 ad?
39x: :subqu 31553 mi eoganfin sfism on bounijroa 9vnd 19d? .19fi3ux024fi
-nxq bu» enoisu3iJaul .973H13fi31u? .fiJisad 03 {Isvlnlaoq b91519! od 3&5L1
03 Luiueqxs ad nag 35d: Juuuuzcvog niinw bsdalldcnas n‘ed svsn autobso

.3nm19voxgmr isuhnxg 301 neuq has jail djiosd—gnifiona sh: in 59373 qwni

400

A oiaplo Hornian hypothooio -- tho groator tho oooncnic iwortanoo no
of tobocco. tho grootor ito political inportanoo - io oloorly unprovon -
in thia otody. u o. poooiblo thoory of hot poblic policy io nodo,‘tbo
Morni- approoch ovoroiqlifioo tho roloticnohip botwoon bnoiaooo ond
W. lurthomro. tho U.S., Britioh ad Canadian govornnonto havo
actod .ch -ro .otroogly in thoir ottorto to proton: tho pnhlic hoolth
th- contrioo onoh ao tho Pooploo Iopoblio of Chino. tho 088R. rrnoo.
Italy. hp. and Tail-so hon; otbooo. ohooo tobacco io canon-at .
oonopcly. lo tact, 'io countrioo ohoro toboooo-io oloooly out to gonna»
not (through trado or untoctnrin; unopolioo). ropodlooo. ol tho typo
of political—onto- Ind politicalibclogy, [onto-Int actiono. minot'
cigarotto cooking appoao unholy.

no biotoriao Gobriol Kclko. ,ia hio book 1:; m _o_g Cocoomtioo:
_A_ loiatonrotation 2g horic- lioto , .1_o_o__o-y_1_6_'.u£.uc.a*opu .oophio-
tioatoi Iorni. apprhoch uhithoonooan tho toiationohiphbotooon booinooo

no .ovorooont. Kolho notod thot ”Morniao thoorioto. within (or- only.
gloontial poxcoptiono, hayo novor ooriouoly confrontod tho rolotionohip of
' 7
II

tho nodornotato to tho-oconcny. In Aurico, Kolkoouuootod, "The.

oclution of ocononic problono hao continual to tahoiplaco‘in tho political
opboro. and thoflotronothiot tho 9“F“’;‘l‘,‘? io baood‘nltioatolyvon tho ‘

”nth.“- 9?-w11t?9-.1~§_999n991°~" 8. 3'.°?°°1“‘9‘_F‘?‘54‘_"99 9'.

*-

tailnro of Marxiot thoorioto "to diocnoothopotontiol rolo of tho otato_ 3

no politico in prooorvin; capitalian that io tho roally tudanutal roaoon
9
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vhy Mornionionot too noofol in conprchondinyrocont poricanhiotoq.
ho (anno tbot bnoinooo control ovor politico rathor than political l’O'IllI-n
tion of tho occnony woo thooipificant phonononon of_ tho l’rosroooiyo Era.

Such control nought to coo "political outloto to ottain conditiono of

 

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" 10 a. ouggootod thio to bo tho oignificant roaoon that nany

tho oconony.
booinooo non wolcoIod and vorkod to incroaoo fodorol intonation into
thoir attairo and that thio'nctod phonononon had boon virtually ignorod by
hiotorino and ocononioto. 1 . ‘ . '

Tho gown-ont'o rolo in croating a otablo occncnic onvironnont for
induotry io oubotantial. Ao Kolko notod in rogard to tho ovorall oconony.
”It woo novor a qnootion of rogulation or no rognlaticn, of otato control
or laioooa tairoé thorn into. rathor,- tho qnootiono of what kind of rogula-
no. .a by when.“ u Tho tobacco inhotry'vohld‘ol‘couroo‘profor no
tognlotioo «on. n: a «mum in mutant. cu induotry would
rathor m1: ot'tho todorol lovol thu bo torcod to light “(my
roplato‘ry ottorto at otato or provincial lovolo. It'thoifodoral mom-
out to involud. tho indootty would protot‘otahility of policy‘uo, in
tho cum sum. tho ponoo in «mum achiovod by locioloticn in tho
taco of inpo'ndinj now rogulaticn’by tho amcio‘o). Finally. «on oxpndod
rognlatory oflcrto ooy bo ohap'od and nood by tho uncanny to “a. -
nobility in ito oorhoto or. by individnal oo’no'tactoror'o.‘ to bolotor norhot
pooitiono. tor'onooplo by copi’talioin; on'otticiol tar no nicottno' rotinco
to annual «uniting. nub roam htolation of «uncut out ho
a... no 'oonothin: or o "a... corn" tor tho:tobocto'lndmtryi'if ito-r
not ho avoidod. pothqo it od otill bo ohapod'ud nonipnlotod and nood to
many how-tap; -

It io difficult in tho'ptoout'oitnotion to iQot'o a'cloor'iotoroo't
to tho pfllic. hio oontro‘voroy‘c- bo ooon no a otrnulo' botwoon too‘ “to
u man too mums. ploiooto and u» othor mun. hoalth.‘ no

otmulo tahoo plot. on m'lovolo.'uth-boovooo'ocopotiu mutated

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a miss: snijoaln but In: ltlaiiio no axialltjlquo yd oiqusxa 303 ,uholsiauq
9d 32mm asjanxnaka 30 nu133£u391 InxoLci eufiT .gnialixavhs 93391F313 a:
are 31 31 :zxnanbnl onosdofi SN) :03 "gains baxlm" o 30 8nifitnnua at flufla
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402

(with tobacco nonufacturoro and grouoro deriving profits fro-.providing
pleaouro and health interest groupo deriving rectitudo, etatuo, and other
benefita fro-Loppoeing onoking). and between conflicting values within
individuel onohore. while eouo olenonte in Kolkc'o approoch are einilar
to our own, tho aboence of a clear public intereet (or claoo intereet)
and tho aboence of larger iooueo ouch ao redietribution of wealth in our

etudy createa difficulties in using hio nodol.

2. mm m 21 m m

The tcbecce ioduotry'e reepoooe e109 hee h!!! I! illvrtont fecuo in
thia etudy. Thblo 2 ehouod the ole-onto of thie roopoeoo which oonotineo
have oubotitutodifor moron-tel action and which hove voried in our three
countriu. Several “and.“ «ruble- enter Mutant ‘ia doteroininz
thie reopoooe to the cooking-health oootroverey aod.3ovetouootal involve-
uont. Theoe euueot .bnothooeo that dooorve further etudy ad that thou
for heve oat Meow-1o“ to the political .ecieoce literatute. For
one-ole, it would appeor that the once threetooin. the political environ-
not in which the manta-vat function. noth- leee the industry‘-
utility to challenge governent ectiono, the nore cooperative the induotry
‘will.he in voluntarily acting to regulate itoolf to reduce;thio.throet.-
Uncertainty caueod by uultiple ”venue-tel fecal rpeiote of action. zeelouo
muletiou end rhetoric bovmthreetued induct!) .otebility end future
porter-once. a foot vell outed by who-“ bio aoelyeie. . The diojoioted'
aeture ct count-elm involve-out in the cookie: and hoolth euoetiou in
the 0.8. end toe leeeer extent in Coo-do. hoe _vi-outed the induotry with
o mun-m econoeic environ-out. no Genetic dietetic of health inter-r
eat troupe and individuelo in all three countrieo. at thoeo.ahao cauood
tooporory drape in tobacco oeleo and certainly hao provided change within

the induotry.

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It alao appoaro that tho looaihopotul tho aoououic outlook of tho
induatry. tho Iota likoly tho induatry will divorolfy into othor floldo
ad attoqt to chm-a ito publlo loop. Cottaluly thooo 1a a tolattouahip
botwoon tho tobacco loduotty'o “unification ad tho mung hoolth cou-
troootoy. flowovor. wbllo ouch divotoltlcatlou to found to tho U.S., Croat
lfltala ad Cnada and 1a oloarly liukad to tho controvoooy along with tho
ouoortahty of tho tutuao of cigaretta pooflta, it to uoloarjow such
guaoor la to th. tho abomination taking placo 1a any othor luduatrioa.
Futthomao. whila a tobacco hduotry'o outlook to ouooouutry nay bo
.cottotu, oobotuttal maid continua-1a othot contrtoo whoro-cou—
ouopuou to'otlll riaing rapidly.

to addition, tobacco induatry ooopoooo to :tho ooutrovoaoy hao appoaaod
to bo oubotaatlally boo-o oo atta-pea to ulntalu and/or incroaoo 1a
pronto. hataotorooo' atom. oataooo h. bouzto would at.
to auto Iorkotta; aaa of tho outing-hoolth- oouoottar Individual tobacco
ur- hawo bootlood to“ noon-out aoatooo. “not. oho' "tao‘dooby" it-
tho 9.3. had bou'aroatod by induatry clutto‘ to roaoouoo ahotpabltoao
wall o by todlvtdaol my attupta to attract cououaora to that: now
tiltoood Mada. - .. = :1 . § ., . -. 1. 9:

lag-otalg‘ot ooaaoo. tho MotayLupuooly-onoaoo’mtu
action that would taboo mungowbotutlalh :qd Mama-flatly
nauoo induatry pronto. Murmur. to “at aoooloooploa. a
horoua 1a Maui-old -t bo .aaooptablog'lf .tor “lo.- profit
unto you nit of prodoottou waao- loot'oaood at if toduotry cooltal woro
hoaatod to alcohottwao to .olgarottoo that would ylold ovou largo: profito.
lurthotnto. a doclho lo autoaoto tht. uolddittooonually attoct
“dual mica. In a altaouoo of thia ”individual 'mm

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1.04

night wall banatit tron tho roaulting aarkot turail ad incraaoo thoir
aaloo ad profito.

liarhot oharoo aro alao important in dotorainin; cot-pay rooponoo. In
a rapidly changing cigarotto warhot (o.g. Iron nou-liltor to filtar adlor
tro- rogulor to king-oiaod brado) it io difficult to obtain induatry
cooporat'ia whoro ouch cooporation will difforontially bao'fit or haru
nauw nun. u. hava pointod out tho (macaw... ouch artat coupo-
titiou hao croatod in truotrating volatary induotry'cooporation and
accoptablo iowornmtal rogulation in Groat Britain. In tho Unitod Statoo.
...... Wtition dootroyod induatry may againat puma: inwlnlant
in tho controvoroy. ad in fruotrating volatary induatry coupliaca‘wlth
bropoood FTC rocoouondatiouo to placo hoolth warninno ad tar and nicotino
rating in cigarotto advortiaiog.

no induotry'a political roapouao ‘alao appoara to follow what ocouo-
aioto tall prioo loadorohip. Slallor coIpaioo appoor to tollow tho
lorpr ouoo. although ottorta to incroaaa or protoct oar-hot oharoo ooa-
tiao ploco aaallor lira lo ditoct ooatliot with tho Iorhot loadoro. ao
boo to. th to” it Croat Iritoiu.

. All at thoaovhypotboaoo rotor to rolationoufl MWJQfl‘Ot Qfim-
“unattended. on tho ,ouo had. ad thymitical ad aomigtoanonoo
of induatrioa ad firm to rogulatory propooala ad policioo. on tho othor.
“rho difficulty of doing political roooarch .oo pti'oto oconaic intonota
ad thoir intoractioua with unto-Iota is oubatatiol. Yatagforto to’ '
inmatiaata. tho ralatiooobip botwoon oarhot otructuroonaud .political.roauguoo
would afloat to ba worthwhilo. t

Claarlg. tho inability of .iuduotry tovcooporato voluntarily with“
aovornnont ia duo in part to tho inability of mutant to doviao policioa

 

 

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‘05
which eeek the deaired eocial benefita yet eleo recognize eerket aharea

ad the differential impacta of public policiea and propoeed policiee on
individual firm. Perhape the govern-ant could aeliorate acne of the
negative consequencee of ite actiona that unevenly effect competing fir-e.
Such a renedy hee been euggeeted to reduce the negative inpect of govern-
Intel action on tobacco agriculture and concurrently. to reduce the
”maiden of grower growa to public policiea agath cigarettea. The
, lhited State. hee eet a poeeible precedent for future action by paying

far-era to reduce production of any orope nd to control land uee. It

' Uzi-.... - 1; sf

would “at to be e poeeihle. if dageroue precedent. for governIent to

mate tobecco cumin ad grovere for a gradual “reduction in the

 

Inufeeture of cigarette» However. thie would he fruitlueunleee the

dad for cigarettee duped.

”3 £29.“ 2.4. 9.2.1.3“. 3'. 3.2 2.9.5 9.9.9. ‘

l. introduction: m 2; the. Intereet 9.9.22 Proceee £13 .93: 59}...
2g Governnent. ‘ ‘

In thie etudy or" thelrefeponee or govern-ante to the mung and'health
controveray. intereet groupe rether than individuele have been the fecue
of analyeia. To a considerable extent we have ignored the role of indivi-
hale. He have coneidered health intereet groupe. hueineee groupa. ad
grape within-governint. . .. ' ‘ i

' by political. ecientiete have focueed' their etudiee on intereet

 

groupe on the queetion of power and ite diatribution, or on who 'goirerne? 12

u. have fond in'our'three can that potter ie an'edai'guo'ue'co'ncept to uee
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606
Two politicel scientists. Robert Peul Wolff end Theodore Loni, pro-

vide us with three interesting nodele of the interest group process end
the role of government which we will use to discuss the seoking-heelth
controversy. These eodele focus on two dieensione of the politicel systee:
(l) the role of govern-est; end (2) the policy-eating perticipents. He
will consider these three eodels. edd e fourth of our own, end discuss the
utility of these lodels in expleining governeente' response to the sucking-

heelth controversy.

1;?

 

3cm Role 9_£_ Govern-out W12: Perticipents 1"
A. "referee" lsy down rules for dentrel govern-est
coepetition of groups, privete eseocietions
essocietioue
I. "vector-sue" reflects forces of Congress, interest groups A

 

interest groups, eerely
coebining or resolving

then
C. "interest- ensuring eccese, lewbeeking institutions
group especially to the best (Congress. President) eed
liberelisn" organised end retifying edeinistretive egencies
their egreeeents end interest groups
D. coepetitive units of legislature and interest groups end lsur
government administrative brenches making institutions and

seek to maximize their own administretive egencies
control over policy and

their response to their

client groups in searching

to solve public problems. !.--,._h "Lt-1 .-

The two theories of governIent thet Wolff hes identified desl with the
role of government end the perticipente in policy-esking. 13 Hhile Holff
hee treeted these theories es nor-etive theories we use the- es elternetive
descriptive models in exeeining the seeking-heelth controversy:

2. ggferee gage;

...[This theory] esserts thet the role of the centrel governIent is to

lay down ground rules for conflict end coepetition eeong privete

essocietions end to eeploy its power to nuke suit thet no eejor
interest in the netion ehueee its influence...

 

 

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407

Hhile we will ignore the noruetive question of whet the governeent'e
role ehould be, the Hreferee theory reieee eole inpottent concerne. Ae
Aucoin, end Seliebury end Heine noted, the political eyeten cen define ite
own perenetere, the goele it eccepte end the role it plays. The control
over theee goele end rolee hee been referred to ee poeitionel or etructurel
policiee. Structurel policiee heve been defined ee 'policiee which eeteb-

lieh euthority etructuree or rulee to‘guide future ellocetione." 15

Sieilerly, poeitionel policiee heve referred to thoee outpete which effect r““'

the etructuring of influence in the convereion eyeteu." 16 ' ~‘

In ell three countriee the ecope of the eloking-heelth controverey *

hee been defined by etructurel policiee which hewe‘helped deter-inc the

 

eueetiou reieed end the elternetivee for public ection; Reguletory efforte LW
by the rrc end rec in the 0.8. heve been fought over etruetorel policy
elternetiwee which heve been etrongly oppoeed by the tobecco idduetry end
ether hueineee groupe‘beceuee of the preeedente thet would be eet end the
eelee end profite thet night he loet. Yet, the induetry wee willing to
eccept heelttherninge in legieletion which concurrently reetricted the
ebility of locel governeente to reepond. The governIent not only eete the
etege of intereet group conflict free without, hut 'eetebliehee the beeic
etreeturing of conflict within govern-nut end the heeie netere of the
reaponee. Thue, we find thet the "referee theory" reetricte our under-
etendint of the reel world by ignoring the politice eurrounding the ground
"lee eetebliehed 3within gmrment.
3o Lama-i! 16.42

Holff'e eecone theory to the "Vectorbeue' or "give end teke" theory of

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408

Congress-is seen es the locel point'tor the pressures which
ere exerted by interest groups throughout the nation...
Ideelly Congress, nerely reflects these forces, conbining
then - or 'resolving' then so the physicists sey —- into
n eingle social decision.

This theory is sherply et verienee with the petterne we heve dis-
covered in exploring the govern-ent'e response to the seeking end heelth
controversy. Congress end the perlienents in Greet Britein end Cenede
heve not been the centrel focus of ettention on this issue. In Greet
lritein end Cenede no perlienentery ection hee been tehen on the issue. r“
further-ore, no single sociel decision hes ever been ends by eny unit of
governIent. Ineteed we find e plethore of eon-tines conflicting decisions, .
node by different govern-nut ectors eech responding to the problee within

' 1

the renge end intensity of his. suthotity‘end responsibility. Govern-nut L

 

hes in no way orchestreted the response to the enohing-heelth problee end
congress end the British end cenedden perliennnts heve plnyed e linited
role in gover-entel respenee to the controversy.

4. Interest Group Liberelisn lodel .: -

 

the third nodel is-Iheodere-Levi'e 9inteteet.gtonp‘liherelienw” which
he discusses eed criticises in his heeh & _t_ng _o_g Lihreligm Interest
creep views the role of governIent so "one of ensuringrecuess pertieulsrly
to the noet effectively orgenised, end of retifying their egreenents end
edjustnente worked out some eoepetieg leedereeue eminent-e.“ 13 In'
Contreet to Holff, Lewi'e-nodel is ench.nore enplicit in specifying the
lole.of‘governhent end in delinnnting the renge of groups end goheennhntel
units nhich ere involved in the policy-enhing process;

Interest grunp-lihenelisn;eees_se "heeh.neceseeryend need-thet the
policy egnnde.end the public interest he defined in.tetne ef the orgenised

interests of society." 19 the public egende inrthe seeking end hesith

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‘09

controversy hee eleerly been defined by the orgenised interests involved.-
lowi‘hes highlighted severel hesic points uhich.ws will consider in light

of our study:

I. Orgenised groups ere honogeneous end essy to define, .
sonntines nonolithic. Any duly elected spokcsnen for
say interest is tehen es speehing in close eppronine-
tion for each end every nenber;

2. Orgenized interests pretty such fill up end edequetely
represent nest of the sectors of our lives, so thet one
organized group cen be found effectively enswering end
checking sone other orgeuised group es 23‘ eeehs to
prosecute its cleins egeinst society;

3. Interest group liberelien essunes thet "'counterveiling
powsr' usuelly crops up sonnhee'. “here it dees not,
government ought to help crests it."

b. A grent of broad powers to edninistretion is not e
- grent of power st ell. It is en inpositioe sf

inpotence.

5. The role of governIent is one of ensuring eccess
perticulsrly to the nest effectively orgenieed, end
of retifying their egreenents end edjustnents worksg
out snong the eonpeting leeders end their cleins.

uthese ‘eesueptioes ere ectuelly s eet of ‘(e) tourisqtrieei see-ptions
(nunbers l to Q) shout the orgsnisetiee of peliticel interests.end govern-
ssntel response; end (h) e prenise (nu-her 5) ehout the purposes of
govern-eet end its proper ends. first we will consider the.enpirice1 '
essuptionsz" '

In the enohingéheelth controversy, It is very difficult to define.or
to essees the interests of the seeking public or non-.hers'. The. snaking
public sey well velue its seeking plessure lore then its future heelth, end
non-esoters eppeer uninterested in the issue. lurthernone, the interests
of individuel tohecco conpeniee in‘governunt ection sentien- conflict,
end heelth interest groups heve been wery of the issue, fencing thet their

efforts night provoke the ire of their contributors end volunteers who

 

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610

esote or their ten ere-pt stetus. Thus, the orgenired interests involved
is the noting-heelth controversy ere neither honogeneous not so eesy to
define es the essuuptions of interest group liberelien would heve it.

Anti-noting so well so pro-snoking econonic interests ere well rep-
resented in eech of our‘three entries. The seating-heelth controversy
grew out of the ewerenoss of nowhere of elreedy well-esteblished groups
who were eble to nobilise resources within these groups end, to sone

extent, fun new groups of their own to push their ends.

I
. I 3"

Iowevhr, the sucking heelth problon‘ is not the sole or even the soot
ieportsnt concern of the- heelth interest groups. Interest is cigerette

“ing in en offohoot 'of interest in e n-her of specific diseeoes includ-

 

ing lung concur, enphyso- end heert dissent. And while pro-enoking econonic
interests' cen cleerly see the logic of collective ection end cooperetion-,
eonpetitioe for nertets end profits here oonowhet divided their response
to the controversy end ospecielly to perticuler govern-out ections or
suggestions.. This situetion is clone in eech oftho three countries we
hev's owned eitheugh the degree of internel-conflict differs.

low-l suggested thet interest-group liberelien see-nee thet '."eosnter-
veiling power" uouelly crops up sonehoe. Where it does, not, governIent ‘
ought to help crests it.” 24 :In our present. cones, genre-out polities.
hevu benefited eed helped orgenise both tobecco growers end enti-Inoking
heelth interest grows; slthough the governesnt's rstionelo he never been
to help establish new interest groups or-councorveiling power. This pettern
cleeny holds in ell three countries who're We eon be stereo con-
tributing directly or indirectly to the dovelopent of comet-veiling power
on the snorting-heelth is-o. Tho-presence of orgsnissn interest groups or

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411

governent support of then is no essurence thet they will heve success in
obteining desired public policies. is we heve noted. governnents ere
divided internelly on the snaking-heelth issue in ell three countries we
heve considered.

Levi hes criticised the vogue delegetion of powers by Congress to
edninistretoro. He hes ”meted thet ouch delsgetion is en inpnsition
of iqotence unless it hes been cleerly guided by stetutos. 25 FTC end
ICC ectiono in response to the snaking-heelth controversy ere e cleer
exception to Lowi's expectetion of ehinietretivo inpotence. , While indus-
try groupe heve chellnged reguletOty egoncy ections so going beyond
mundane]. nendete. in reelity no nendetes, only policy directions

 

exist. FTC end FCC ections ney heve been in port e challenge to Congress p
to ect. The snaking-heelth cese is en exception to interest-group liber-
elisn in so for so there hee been e visotous egency» neeponeo in on use
in which there is no cleer stetutory nendete.

Lowi's prenise of interest-group liberelien. thet the role of govern-
nent is one of ensuring octets. would st Inset superficially eppeer to
work better in stable policy erees. end with old issues tether then with
new issues thet cut scroos previously esteblished policy erees. Yet, Lowi's
eveluetion _of interest-group liberelien eppoers too pessinistic in light
of this study. Bis ergunent thet interest trout“ are. often closely
identified with one govermentel egoncy which ects in sons wey to protect
thn. end thet interest groups in one field tor-12 intrude in dress outside
their enthorised Nude”. illllioo thet in the end the public is horned.

the shility of interest groups to cnptute governnnt egencies noy
questions work to chsngspolicy isthe interest of shops“: public. no
Issue to heve hoppenod ,inpolicy Inletd sucking in, the United Stem. . The

 

 

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412

heelth interests did nenege to get their preferences enected into policy
in soee'egencies end this pushed other egencies to respond as well.'

As‘we heve shown by these specific ere-pies, the concept of interest group
liberelien hes not eeterielly enhenced our enelysis of government's res—
ponse to the seeking—heelth controversy;

Lowi hes suggested elsewhere thet politicel reletionships ere deter-
sdned by the type of policy et’steke. 2‘ Thus, distinctive types of policy
reletionships ere likely to be found within "issue erees." He hes suggested
three functionel cetegories of public policies; distribution, reguletion,
end redistribution, each of which he argued "tends to develop its own

cherecteristic political structure, politicel process, elites end group

 

reletions.”-27 'We heve found it iepossible to epply these cetegories to
the seeking-heelth controversy.‘ .

Aucoin exeeined the difficulty in cetegorising issue erees end noted
thet Lowi's epproech ' a _ W . W ; H ‘ ‘ ‘2 1

...”usuelly does not distinguish between whet govern-nut

policy-esters intended, whet the output of the public

process ectuelly is, whet the outcomes or consequences

of the policy output ere, nor how outputs end outcoses _

ere perceived by the policy-esters the-selves, groups

opposing thee, public opinion, or even enelysts. A

government policy, therefore, cen be given severel

interpretetions by she cosponent sections of the

politicel systee. 2
The interpretetion of public policy is closely releted to who is‘eeking
the eveluetion. These different interpretetions depend on how such ector
defines the problee end his goels. ‘Uhet eppeers to be reguletion to one
perty eey eppeer es redistribution for enother. Government policy'e'ekers
seen to eccept the belief thet legisletion hes equel iepect on ell tobecco
cospenies. The snaking-heelth controversy in ell three countries cleerly

indicetes thet heelth wernings, pressure on coupon end gift scheees, eephesis

 

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‘13

on filters, tar end nicotine measures, end edvertising bans ell differ-
entially effect cigarette menufecturers. What seems to be simple regula-
tion to one tobacco company may appear to be forced redistribution of
markets to another. Public policy in the area of smoking end health
contains many government actions (some of which may directly conflict

with each other) that may be categorized as regulatory, distributive or
redistributive, end hence Lowi's categories are not utilised best in
describing the smoking-health controversy at any perticuler point in time.

Thus, Lowi's concepts are difficult to apply to e whole policy eree
where there are many different decisions, in quite separate subarees of
policy. The snaking-health controversy is effected by policies in several,
cal-only separate areas: agriculture, taxation, exports, heelth, end
cigerette use by minors, etc. Efforts to simply categorise policy in such
disparate areas is impossible.

Distinctive systems may regulate policy in certain areas, but this is
debatable. Lowi's model may work best in explaining policy areas that are
stable over time, unlike our present ceees. While a pattern of policy out-
comes may exist at one point in time it may well shift over time. Lowi's
cetegories do not sensitiee as to perceptual shifts or to chenges in
functional categories over time. fhus, in the smoking-heelth controversy
lovernment efforts have shifted from regulation to redistribution with only
the outcomes indicating a shift in public policy. Manufacturers who have
benefited from such redistributive policy appear to be economically more
stable (perhaps less interested in diversification) than their competitors

'ho view government policy as inimical to their market shares and potential

profits. :

 

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5. Competitive Government

A fourth model of political reality appears to explain more of govern-
ment's response to the smoking-health controversy than the preceding three.
Governments might be examined as a series of interest groups competing-
among themselves to control public policies while maximizing their own
interests and those of their client groups. In this situation the goal
of government might be to maxi-ire such competition to facilitate the
solution of public problems. This model would emphasize the variety,
level, and geographical distribution of possible participants in the policy-
making process. Thus we can focus on either the competitive process or
on the participants. 'Two political observers have tried to explain and
praise the sort of confusion of governmental efforts so apparent in smoking
and health, confusion that results fro. the competition between seemingly
unconnected actors facing a problem that affects then all.

Horton Grodzins has extolled the 0.8. federal system of government
and the positive benefits of the apparent confusion of governmental powers
and efforts. 29 He has emphasized the competition between governments to
solve public problems. In explaining Grodains' views Daniel Blazer wrote:

Stated broadly, his hypothesis views the American system of

government as functionally analogous to a marble cake of ‘

shared activities and services even though it is formally

structured (like a layer cake) in three planes. Despite

the great increase in the velocity g£_government in the

twentieth century, the American system remains decentralised,

democratic, and responsive to the public because there is '

a little chaos built into it. _At one level, this chaos

promotes sharing because it prevents any single government

or governmental plane from gaining exclusive jurisdiction

and power in any area of governmental concern. At a second

level, the chaos allows citizens to utilise multiple cracks

(in the double sense of wallops from outside the system
and fissures in the system itself) to gain their ends. 5

 

 

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Thus, Grodsins might have argued that'without a little chaos, governmental
response to the smoking-health controversy might have been even slower
and less effective than it has been. Access may have been better assured
in unstable policy areas, where no governmental unit or level has had ex-
clusive jurisdiction and power, than in less chaotic well-established
policy areas. Thus, the division of powers and responsibilities between
gover-ental units at different levels of government, as well as within
individual levels, may have positively affected smoking and health policy. ,nm_r__

William A. Niskanen, Jr., in his book Bureaucracy and Representative

Government, examined the apparent conflict and confusion between govern- r

 

rental units within a single government and took this argument still

 

further. 31 He suggested that it is the high cost of government actions,
without any guarantee of benefits, that inhibits government efforts, and
that "the standard way of reducing the costs of such experiments is to I
make small, piecemeal changes; this is entirely appropriate, and, in the
absence of a revolution, all that can be expected." The U. 5., Great
Britain and Canada have experimented with a progression of policies designed
to reduce the illness and death associated with cigarette smoking. But,
the problem has been intractable, with no assurance of success with any
of the policies put forward to deal with the health consequences of smok-
ing. , ‘ '

Niskansn also suggested that "the most important change in the present
structure of bureaucracy would be to increase the competition among bureaus

" 32 The results of such

in the supply of the same or similar services.
competition are visible in the broad range and variety of governmental
responses to the smoking-health controversy. In the smoking-health case

llSenties did compete with each other when structures and customs permitted.

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416

(bipetition between government administrative agencies occurs if it is
notnsrtificially constrained by government policy. Within the private
sector, market competition within tobacco industries had led to changes

in the cigarettes produced that appear to have reduced the hazards of
smoking. Niskanen commented: "The coordination of related programs has
an.intuitive appeal, but the benefits of such coordination have always
been a little vague." 33 The absence of close coordination among authori-
ties in the smoking-health controversy may have produced a much more
substantial overall effort than would have been produced by a coordinated

program that was intuitively more appealing.

Summary

Based upon our experience in examining the smoking-health controversy
in three countries, several of our findings appear important in explaining
public policy. First, the ground rules established by government define
agency responsibility, who can act and how they can act in responding to
a public problem. Much research has either held as constant or taken for
granted the variable role of government in the policy process. More atten-
tion should be paid to the role of government in this process. Wolff's
"referee theory" and the concepts of structural and positional policies
focus our attention to this point.

Second, two kinds of competition help us understand both industry and
government response to the smoking-health controversy. In this section we
have emphasised competitive governments (competition between agencies and
between levels of government), and in an earlier section we found that
market structures and competition are important in determining the response
of business to the smoking-health controversy. While the image of govern-

Ient as orchestrator of competition between private interests is a familiar

 

 

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one, much less attention has been paid to the possible benefits of
competition both between and within levels of government. In the smoking
and health case, it is apparent that more vigorous governmental efforts
were undertaken where agencies and levels of government were relatively
«tom and sometitive. It is also true, to be sure, that the problem

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Footnotes - Chgpter xv

Michael Stern, "Britain tightening Curbs on Cigarettes," Thg_!g!_
York Times, September 16, 1972. ,

Canada and especially Great Britain have higher tobacco and cigarette
tax rathes than in the U. S. The Canadian tobacco industry has
voluntarily limited tar and nicotine contents of its cigarettes and
elimdnated all gift coupon schemes. .. . . f“"_--

tobert I. Rudd, "A Policy Prescription for Tobacco in the Seventies,"
Social and Economic Issues Confrontng the Tobacco Industry _ig 5h:
Seventies, ed., A. Frank Bordeaux, Jr. and Russell H. Brannon
Tierington, Kentucky: College of Agriculture and Center for Develop-
'memtal Change, University of Ientucky, February. 1972), p. 299.

 

 

ar.. .I.:

The British government will begin publishing tar and nicotine test ‘ .;
results in 1973. __we-

Charles B. Lindblom, The Intelligence gf_Democracy: Decision Making
Through Mutual Adjustment (New York: The Free Press, 1965), p. 229.

 

 

 

iMaurine B. Neuberger, Smoke Screen: Tobacco and the Public Welfare
(Englewood Cliffs, New Jersey: Prentice-Hall, Inc., 1963), p. 69.

 

Gabriel Kolko, The Triggph_ of Conservatism: ‘A_Reinterpretation 2:
American History, _1900-1916 (New York: Free Press of Glencoe,
1963), p. 294.

 

 

Ibid., p. 304.

Ibid., p. 290.

Ibid., p. 3.

9

Ibid., p. 6.

Sea for eagle, David B. Truman, the Garage-saw gm: Politi-
cal Interests snd Public Qpinion (New York: Alfred A. Knopf, 1962);
Robert Dahl, Who Caverns (New Haven: Yale University Press, 1961);
and Theodore J. Lowi, The End of Liberalism: Ideology, Policy, and
the Crisis of Public Authority (New York: W. W. Norton 5 Company,
Inc., 1969).

 

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619

lobart Paul Wolff, "Beyond Tolerance," ALCritigue gg_Pure Tolerance,
ed., Robert Paul Wolff, Barrington Moore, Jr., and Herbert Marcuse
(Boston: Beacon Press, 1965), p. 11. .

Ibid.

Robert Salisbury and John Reins. "A Theory of Policy Analysis and
Some Preliminary Applications," Poligy_Analysis ig_Politica1 Science,
ed., Ira Sharkansky (Chicago: Markham Publishing Company, 1970),

p. 63.

 

 

Peter Aucoin, "Theory and Research in the Study of Policy-Making,"
The Structure g£.Policeraking_ig_Canada, ed., G. Bruce Docrn and ,g_.
Peter Aucoin (Toronto: The Macmillan Company of Canada, 1971), r

p. 25. 3.3. Schattschneider had earlier made almost this same
point in suggesting that "Some issues are organized into politics
while others are organized out." 8.3. Schattschneider, Ihg.Semi-
Sovereign People: é_Rea11st's View 25 Democrsgz ig_America (New
York: Holt, Rinehart and winston, 1961), p. 71. Also see David
Adamany, "The Political Science of 8.2. Schattschneider, A Review
Essay," The American Political Science Review, LXVI (December,
1972), p. 1333.

 

 

 

 

 

Holff, p. 11.
Lowi, p. 71.
Eggs,

Ibid.

ibis,

£21§,, p. 156.
Ibid., p. 71.
skid,

1215,. p. 154.

Theodore Lowi, "American Business, Public Policy, Case Studies and
Political Theory," World Politics, XVI (July, 1964), pp. 677-715.

Ibid., p. 689.
Aucoin, p. 22.
Norton Grodsins, Ihg_Anerican System: A New View of Government in

the United States (Chicago: Rand Mcflaliy-;Ed Co-pzny, 1966), pp:-'
3.1.7 o

 

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Company, 1971).

 

William A. Niahanen, Jr., Bureaucraoz and Representative Government
(New York: Aldine Atherton, 1971).

Ibid., p. 195.

Ibid., p. 196.

 

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B 181. IOGRAPHY

YH‘LE‘ZQOIJHI 3

B IBLIOGRAPHY

Articles

Adm, David. ”The Political Science of 2.3. Schattschneider, A Review
Essay," The American Political Science Review, m1 (Deceder, 1972),
pp. 1321-1335.

"As Tobacco Goes, So Goes the Retailer," Tobacco News, VI (Fall, 1961.).
Aneoin, Peter. ”Theory and Research in the Study of Policy-flaking," in

Doern, G. Bruce, and Aucoin, Peter (eds.), The Structure of Policz-

Making _1_3 Canada (Toronto: The HacMillan Company of Canada, 1971),
pp. 10—39.

leer, Sauel 1!. "Pressure Groups and Parties in Britain," AIerican
Political Science Review, 1. (larch, 1956), pp. 1-23.

"Behind the Smoke Screen," 3'35 v.11 Street Journal, Marcy 16, 1964.

lender, Harilyn. ”been and Its mutual Pond,” & _Ne_e_ York Tiles,
February 18, 1973.

Braden, Johnny. "Tobacco Acreage and Yields - Trends and Prospects,"
Tobacco Situation, March, 1971, pp. 32-38.

Braden, Johnny, and Miller, Robert 1!. "Trends and Prospects for Tobacco
Labor, " Tobacco Situation, June, 1970, pp. 37-6b.+

"British Are Seeking a Safer Cigarette," The New York _1___imes, March 19,
1972.

"British Hanufacturera, Government Agree on Package and Advertising Label
Code," Tobacco Reporter, XCVIII (Sept-bar, 1971), pp. 53-56.

"lurlay' a Brief Preedon," The Hall S__t______reet Journal Nov-her 22,1966.

"Canada Proposes Total Cigaret-Ada Ian, Tar-Nicotine Limits, Inspection,
Warnings," 33* Wall Street Jou______rn_a_1, June 11,1971.

"Canadian Physicians Heed federal Support to fllp Patibllts lick the Smoking
habit," The Canadian medical Association Journal, CII (January 31,
1970). pp. 131-132.

‘21

 

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622

"Canadi-a to End Ada for Tobacco," The New York Tit-ea, Sept-bar 22,
1971.

"Cigarette Advertising Battle Loona," The Tinea (London). January 7,
1967.

"A Cigarette Advertising Code," The Canadian medical Association Journal,
XCII (January 16, 1965). pp. 136-135.

"Cigarette Advertiaing: Deceptive nd Againat the Public IntereatY,"
lanaaa Law Review, XVII (June, 1969), pp. 6815-697.

 

"Cigarette Coupona Face New Threat," The Tinea (London), February 11,
1967.

"Cigarette Curb to be Broken: lira Seeking TV Advertiaing," The Tinea
(London), January 6, 1967.

"Cigarette Salaa: The Tangled Iaauea,” _T_l_|_e_ Tinea (London), October 24,
1967. , .

"Cigarette Saoking and Cardiovaacular Diaeaae," _T_h_; Canadian Medical
Aaaociation Journal, XVIII (June 8, 1963), p. 1175.

"Cigarette Smoking Shove Sharp Drop After Britiah Study," 1113 19; York
m, February 6, 1972.

(ii-ante. Earle C. "inure the Tobacco Iaduatry Stnda," _lm Aaaoci-
251:2 g_f_ Tobacco Diatributora, 1967 Yearbook, pp. 30-32.

Corina. Maurice. "Cigarettea: llhy the War Turned Iilder," m Tiaea
(Won). July 8,1967. ' ‘

Corina, Haurice. "Tobacco nan warn Coupon In May Threaten 10,000 Joba,"
_T_t;_e_ Tilea (London). October 2‘,1967.

Corina, Maurice. "my the loaa of Carreraa Bowed Out," _Tb; Tiaea (London).
July 19. 1967.

"Cut Saoking on Televiaion, Saya Safety Cannon." E... 3352 (London).
October 20, 1969.
MW, January 28,1967.

"ID-gerou Lengtha: The Tederal Cruaade Againat Sucking Baa Gone too Far, "
$93.12., October 2,1967.

David, Morria. "Soae Neglected Aapecta of Iritiah Preaaure aroma,"
Hidveas m 9; Pongcal m VII. (February. 1963),, pp.
-5 a _ .

. w___._v.__.~_. ”7...;

 

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623

"Deadlock in Move Against Cigarette Coupons: Ilperial Tobacco Rejects
Hinistry Formula," _T_h_; Times (London), December 10, 1966.

"Deadlock on Cigarette Publicity," The Times (London), Deceeber 10, 1966.

"Diversification, 1969," Tobacco morter, XCVI (Nov-her, 1969), pp. 21,
60.

"Diversification Haves in 1971," Tobacco Reporter, XCVIII (December,
1971). pp. 12-13, 17-22, 62.

"A Double Blow for Cigarettes‘I," 11:; Times (London), March 6, 1967.

Daugherty, Philip H. "Advertising: Anti-Smoking Spots," The New York
Times, July 21, 1969.

Daugherty, Philip 8. "Advertising: Anti-Smoking Spots Multiply," The
E!!! York Times, October 6, 1967. , "

Drew, Elizabeth B. "The Cigarette Companies Would Rather Fight Than
Switch," The Lev York T__i_____mes Magazine, May 6, 1969, pp. 36-37,
129-133. g

 

Dram, Elisabeth B. "The Quiet Victory of the Cigarette Lobby: How It
Found the Best Filter Yet -- Congress," Atlantic Honthlz, Septedaer,
1965, pp. 76-80.

"Editorial: Breaking Bad Habits," The Wall Street Journal, De'cnber 28,
1966.

"Editorial: The Cigarette Message," _Tl_1_e_ Leg York Times, August 22, 1967.

"Ewettled Tobecco's New Strategy,f' Fortune, January, 1963, pp. 100-102,
120,125-126,131.

"End of RPH is Now Hitting Tobacconists," _1_‘_h__e Time_____s_ (London), February 6,
1969.

"Fairness, Freedon and Cigarette Advertising: A Defense of the Federal
Co-unications Commission," Colt-bis Law" Review, LXVII, pp. 1670-
1689.

Fisher, Ben C. "Rule flaking Activities in Federal Administrative Agencies,"
The Adninistrative Law Review, XVIII (St-er, 1965), pp. 252-262.

Goodwin, Guy. "Canadian Industry Speaks Out," Tobacc________g Lego rteg, XCVI
(February, 1969), pp. 33-36.

"Governunt-Industry Agreements Will Bring End to Radio TV Cigarette
Ads in Canada," Tobacco Reporter, XCVIII (October, 1971), pp. 69-56.

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626

Grover, Stephen. ”Cigarette Ad Spending to Decline Drastically When TV
Ban Starts,” The Wall Street Journal, September 15, 1970.

Ila-er, Alexander R. "Cigarette Hen Looking Abroad: Overseas Business
Climbs Despite Some Problems," The New York 113‘“: August 6, 1967.

B-sr, Alexander R. "Lag Burns Tobacco Men,“ _T_h_g 1e! York Tines,
January 11, 1970. ‘ '

lie-end, Cuyler L, and Garfinke1,Lawrence. ”Changes in Cigarette

pp . 69-66 .

ll-ond, Cuyler B., and Carfinkel, Lawrence. "Changes in Cigarette
Smoking 1959-1965,” American Journal 9; Public Health, LVIII
(January, 1968), pp. 30-65.

Hatfield, Hichael. ”Going Up in Smoke,” E3 Times (London), September 21,

1970.

Hatfield, 8.5. "Research Objectives Emphasize Smoking and Health," _T_h_g
Lighter, XL (Fall, 1970), pp. 5-6.

Bertsberg, Joseph C. ”Tobacco Tarning: A Problem, High Costs Cast
Gloom over Future of Parners," The New York Times, October 6, 1969.

"Nov Close is an Improved Cigarette,“ Tobacco Reporter, XCVI (April,
1969). pp. 17- 21s

"Imperial Selling Share in Gallaher," Tobacco Reporter, XCV (June, 1968),
p. 66.

"Job Retraining Plan Is Extended by House: Senate Unit Votes Curb on
Tobacco Yields,” 31!. Wall Strgeg M» April 2, 1965.

Kornegsy, Horace. "Tobacco's Goal: Closing the Knowledge Gap," _T_l_:_e_
Wilson Daily Times, Wilson, North Carolina, August 6, 1970.

Lenger, Susan. "Tobacco Activity Masks Unrest in Industry as Government
Smoking Study is frepared for Release," Science, CXLII (Novenber 15,
1963), PP. 9‘1-9‘2s

"Levy'Against Cigarette Firms Sought," The Times (London), November 17,
1970. '

Levis, Anthony. ”British to Curb Cigarette Ads,”_T11_e_ N__e_v_ York Tiees,
October 2:. 1967.

 

_T_h_ Lighter, 1965-1972.

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425

Lori, Theodore. "American Business, Public Policy, Case Studies and
Political Theory," WOrld Politics, July, 1964, pp. 676-715.

Lydon, Christopher. "Ban on TV Cigarette ‘ds Could Halt Pres Spots
Against Smoking," T§3_§g!.!ork Times, August 16, 1970.

thlory, J.R. "The Uses of Legislative Committees," Journal g£_Canadian

Public Administration, VI (March, 1963), pp. l-15.

 

HcClarsa, David. "Tine Now for Positive Militant Action," Delhi News
Record, January 20, 1971.

1113 Medical Officer, Dace-her 1. 1.967.

luller, Robert H. "U. S. D. A. Tobacco Price Support and Loan Programs,'
Tobacco Situation, June. 1969, pp. 30-33.

Morris, John D. "Cigarette Ada Up in Publications," Ihg_Nev York Times,‘

January 19,1972.

Morris, John D. "Cigarette Code on Ads Dropped, " The New York Times,
October 13,1970.

Hbrris, John D. "8 Cigarette Makers to List Tara in Ads," The New York
Times, December 24,1970.

Nbrria, John D. "The Tobacco Industry Held Losing in Struggle Over
Cigarette Ads: Congressional Fight Centers on Freedom to Advertise

without Regard to Health Risks,“ The_Nev York 23533, April 27, 1969.

Morris, Job D. “Tobacco Men Bar Evasion of TV Ad In." The New York
Sines, January 9, 1971.

Murphy, Joseph I. ”Significance of a Decline in Cigarette Use en-Tax
Revenues," American Journal g_f_ Public Health, LVI (December, 1966),
"s 38+3s

'Ibshrssling Give-May Contests End July 1 in Canada," obcceg a“: .
XCVII (July, 1970), pp. 57-58.

1m 52! 3.2;! E52,. 1950 to 1972.

"Is Seeking Signs on Basses Advised by ICC hauler." 12...... wall _s_______treet
£92353: February 9,1971.

"wen Letter to all Members of the C.H.A.," The mag geared tealAss____o___cia-

tion Journal, LXXXVIII (March 16,1963), p. 589.

Phillipe, ed., and Pelkn, Michael E. "The Canadian baking .d Health
Progrslne," Proceedings_ of the Ninth International Cancer Con ress,
ed. 1'. J. c. Harris. Values—3.03113: Springer-Vedas, 19675,»
156-159. .- I .

 

 

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426

'Tlans for New Ad Cuts in U.K.," Tobacco Reorter, XCVIII (December,
1971), Ppe 52-54e

Polsby, Nelson M.; Csllaher, Miriam, and Rendquist, Barry Spencer. "The
Growth at the Seniority System in the U. S. House of Representatives,"
AIerican Political Science Review, LXIII (September, 1969), pp. 787-
807. .e,,,.,, -

R.J. Reynolds. "Presenting the New R.J.R. - R.J. Reynolds Industries,
Inc.," The New York Times, June 30, 1970. (Advertisement.)

 

Retail Tobacco Builders of America, Inc. ggwgl, "Another Cigarette Ten
Increase Means Another Bonanza for Organized Crime," The New York
Times, March 29, 1971.

 

Robertson, Nan. "Witness Against Smoke Wsrning Got $3,200 Pee: NYU
Educator Has Paid by Tobacco Industry After His Testimony to Senate,"
The New York Times, August 23,1967.

loser, John. "Smoking is Greatest Avoidable Peril," The Times (London),
October 22, 1970.

lothwsll, Michael. "Cigarette Advertising Row Boils Up," The Times
(London), February 10,1967.

Salisbury, Robert H. "An Exchange Theory of Interest Groups," Midwest
Jogrnsl 2; Political Science, x111 (February, 1969), pp. 1—32.

 

Salisbury, Robert,snd Heinz, John. "A Theory of Policy Analysis and
Some Preliminary Applications," in Sherksnsky, Ira (ed.), Policy
Analysis_ in Political Science (Chicago: Markham Publishing Company,
1970), pp. _39-61.

Shapiro, stid L. "The Choice of Rule Making or Adjudication in the
Development of Administrative Policy," Harvard Law Review, LXXVIII
(1965), pp. 921-973.

i

"81: Gerald to Step Up Her om Smoking," The Times (London), September 1,
1970.

"Smoke Signals of Distress," The Pinanciglmggggg, October 1, 1966.

"Smoking and Health," Journal g£_the American Medical Association, CCV
(September 2, 1968), p,,§95.

"The Smoking Threat,” The Hall Street Journal, January 14, 1964.

"Stste Tobecco Taxes Doubled in Seven Years: Cigarettes Have Become the
Subject of Tax Exploitation," Tobacco News, V (April, 1963).

Stern, Michael. "Britain Tightening Curbs on Cigarettes," The New York
Times, September 16, 1972.

 

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1.27

Stevens, willie: K. "Tobacco Paras Charging: Tobacco Tuners in
Carolina Yield to the Age of Technology," _T_h_e_ §_e_v York Times, April
12, 1969.

La; Adninistrators News, I (Septuber, 1938), p. 1.

IE! Tiles (London), 1960-1972.

"Tobacco aid Politics," Tobacco Reporter, XCV (October, 1968), pp. 15-16,
18.

"Tobacco Diversification During 1972," Tobacco morter, ICIX (Decedeer,
1972), pp. 16, 18.

"Tobacco Drops as Tax Into-s," Tobgco morter, XCVIII (Decefier, 1971),
p. 38.

"Tobacco Growers Feel Insecurity M lusiaess Pessinisn buts," The L r
Ygrk Times, March 30, 1969. *

 

"Tobacco in the ECC," Tobacco Intelligence, XXIII (London: mm L
Secretariat, Hay, 1971). pp. 106-111. w

"Tobacco in the National Ecoaony." m‘muonel Record, Junery 11,
1973, pp. 3471-472. .

"Tobacco Industry in Britain Seeks to Protect Youths," The New York Times,
April 2, 1962.

"Tobacco Institute Seeks to Diversify," The New York Times, April 16, 1969.

The Tobacco Institute. "After Millions of Dollars and Over 20 Years of
Research: The Question About Snoking and Health is Still a Question,"
The New York Tiles, Decoder 1, 1970. (Advertisenenh)

The Tobacco Institute. "flow Huch Is Know About Banking and Bealth‘I,"
Ih_e_ 1:". York Times, February 28, 1969. (Advertis-ent.)

 

"Tobacco Used for Cigarettes,” Tobacco Situation. Septeder, 1969, pp.
”’38s .

"Topics: Government in the Marketplace." _T_h_e_ N__e_v_ York Tiles, February 28,
1970. . .

Vertn, Vartanig G. "Tobacco Stocks Gain: Diversity “ding Cigarette
Makers," _T_h_e_ y}: York Times, Rowe-bar 1, 1970.

Vacsey, George. "Tobacco Chants Manic to Grmrs' Ear." The New York
Tines, November 29, 1970.

 

1111 Wall Street Journal, 1960-1972.

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628

"We Haven't Really Changed the line, But We Have Changed the Coapany.
w. are Nov 55 Percent Non-Tobacco," The New York Tinea, October 13,
1970. (Advertiaenent.)

 

Hanan, Richard A. "Cigarettea and Health: A Legal Analyaia," Cornell
Lav Quarterlz, Ll (Sm-er, 1966), pp. 678-759.

Ueiner, J. B. "The High-Staten Strategy of American Tobacco," Dun'o
Review o_g Modern Industry, mu (Router, 1966), pp. 43-67,
100,103-106.

 

Heatern, Joe. "v.8. Tobacco Progr- Once Praiaed aa Model, Rune Into
Trodalea," The uel} Street Journal, February 14, 1963.

 

liaiteaida, The-ea. "Annals of Advertiaing: Cutting Down," '_r_h_e_ _lLe!
Yorker, December 17, 1970, pp. A2-97.

Hhiteaide, Thonae. "A Reporter at Large: A Cloud of Snoka," 1h}. Egg
Yorker, Router 30, 1963, pp. 67-108.

"th Did the Canadian Ganae Suddenly OtopT, " T__ob__a_____cco 2E“ er, XCVII
(Aeguat, 1970). PP. 34, 36.

Zilhey, Bryan Y. "Cigaratte Production, Selectien, and baking Proceduree
for a Hulti-Diaciplinary Tobacco and Health leaearch Progran," I"...
Li‘htgr, XLI (Winter, 1971). pp. 9-13.

Booka

Barry, 3. Eldon. lationgliration _ig lritiah Politics: The Historical
3“ng . Stanford, California: Stuford Univereity Preaa, 1965.

leeae, D. II. (ed. ). Tobacc_______9_ Constantia: in Varioua Conntriae. 3rd ed.
leaeareh Paper 6. London: Tobacco“ Iaeaarcb Concil, 1972.

Billinxa, 8 1.. Tobacco: I_t_a Hiato Varietiea, Culture, Hanufacture
n_§_ Co-erce, with an Account o; lta Varioua Hodea of Uae, _t___ron

ITa_____ Pirat Qiacove g Unt____i__l Lou. Hartford, Connecticut: AIerican

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Hertha- PubliahinT— Coepany, 1971. '

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lrecher, Ruth gig. The Coneuar'a Onion Report on Seeking _e_ag _t_h__
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‘29

Corti, Count (Egan Caesar). _A_ History 9; Smoking. Translated by Paul
England. London: George G. Harrap 8 Co., Ltd., 1931.

Cox, Edvard P., Fellmuth, Robert C., and Schultz, John E. "The Nader
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Cuahm-I, Hobart 3. The Independent Regulatog Comissions. New York:
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Diehl, Harold S. '_I‘obacco and Your Health: The Smoking Controverg. New
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Bckstein, Harry. Pressure Grog Politics: The Case 9_1_:'_ the British
Medical Association. Stanford, California: Stanford University
Press, 1969.

 

 

 

Bvely, Richard,and Little, 1.14.1). Concentration _i_n_ British Industg:
_Ag Egirical Study _o__f. the Structure _o_f_ Industrial Production
1935-_§_l_. Cambridge at the University Press, I960.

 

Fletcher, C.H. _e_g _al. Con-on_ Sense About Smoking. 2nd ed. Hiddlesex,
England: Penguin Books Limited, I935.

Florence, P.S. lgdustry and the State. London: Hutchinson and Co., 1957.

Fritchler, A. Lee. Snokigg and Politics: Policymaking and the Federal
Bureaucragz. New York: Appleton-Cntury-Crofts, 1969.

 

Galbraith, John Kenneth. The New Industrial State. Boston: Houghton-
Hifflin Company, 1967. _ . .3

Grodsins, Morton. _Th_g American Sntem: A Le! View 93: Government in; _thg
United States. Chicago: Rand HcNally and Company, 1966.

Hall, Donald H. Cooperative Lobb in - 333 P r of Pressure. Tucson,
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Hedrick, James 1.. Smoking, Tobacco and Health. 'r‘evaed. Hashington:
U.S. Department of Health, Education, and welfare, Public Health .
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Jacobstain, Mayer. _T_h_; Tobacco Industg; in mm £25223- HeuYork:
The Colubia University Press, 90 .

£9.11 £2.12: £23912: 2: £25221 1219.- London: BPC Pam-bin: Ltd" 1970.

Jemings, Sir Ivor. Parliament, 2nd ed. Cambridge}: the Univerrity
Press, 1961. .

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Jaoo. Iobort Loolio. lliotog g; Agriculturo _i_n_ Ontorio 1613-1886.
tormto: 'l'ho Univoroity of Toronto Prooo, 1966.

lolko. Gobriol. Tho Trim-1:3 _o_f_ Conservation: A Reintcrpretotion g_f_
Anoricon Biotorz, 1900-1916. Nov York: Froo Prooo of Gloncoo.
1963.

 

lots, lick. Lot The: Bat Proniooo: ‘l'h__o_ Po__l_____itico o_f Hun ungor_ in Anorico.
Gordon City, Nov York: Dooblodoy_ ad Co-pny,lnc .. 1971.

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m notuol Minot-out. Nov York: ‘l'ho lroo Prooo, 1965.

 

Lori, noodoro J . Eh_o_ End gg Liboroliol: ldoolon, Poligz, _o_n_¢_l_ 51:3

Crioio _o_; Pwlic Authoritl. Now York: um. Norton 6 Co., 1969.

Hoclnoo. CJI. 3333 Eorlz English Tobocco Trodo. Inndon: tom-Pool, r
Truck, ‘rrnbnor, and Co., Ltd., 1926.

lofiorpr. Hurino 3. Stoke Scroon: 'l'obocco ond tho Public wolforo.

Inglalood Cliffo, Nov Jorooy: Prontico-noll. Inc., 1963.

 

Nichollo. nun.- n. Prico Policioo in _t___ho Cigrotto Indnotg: A snug
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liokonon. Hilli- A. Jr. Burooocrog 93 logrooontotivo Govornnont.
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Oloon, Honour. '_l'_h_o Lolic__ of Colloctivo Acti____og_. Cdridgo: Borvord
Univoroity Prooo, 1966. . . ‘

Pooroon. Drov, ad Andoroon. Jock. _T_h_o_ Cooo “gin“ Congo: A
Indictmt of M— a 9:1 to____l Hill. Nov 10‘:
“non 8 Sch-our, 1968. =

Proovoroki, Mon. ad TCIIO, Hurry. Lb; 29115 2: Cogorotivo Sociol
m. Now York: Hiloy-Intorociaco. 1970.

loich, Chorloo A. Thoc in; g_f_ Anorico. Nov York: Rado- llonoo, 1970.
lidgovoy. 1..... ' _T_h_o Clooo____§_ tun'Cofigotion: 5.3.9.22. want“ _ig Crioio.

low York:

 

two, [.I. ob_or=co gndo rt_l_1__o LA A. Minna: hookup Imitation.
1935.

I091 Collogo of Phyoiciono. Inkig__ ad loolth Nov: A lg loport no,
Smog on Slokin‘ and Ito Effocto on Health froo th:_o_ Rozol Colloe
o__t_ Phyoiciono of London. London: Pit-on Mini-_— d8ciontific
“linking Co., _1th 1971..

 

 

 

 

 

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631

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_*fl*_

rev. London: Sir Isaac Putna- & Sons, Ltd., 1950.

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C-sda. Cuada Yearbook. Otters: Queen's Printer, 1968.

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632

Canada. Dehatee. (Co—one.) V (1907-8).

Guada. Dehatee. (CouonaJ 1960-1971.

Canada. Heart of the Pederal ‘raek Porce on Agriculture. Ottawa:
Queen a Printer, 1970.

Chade. m_ of _t___he Standing Co-ittee on Health, Welfare and Social
Affaire_ on Tobacco and Cigarette Snokin 11.3 ZCo-oneJ Ottawa:
Queen a Printer for Cmede, 1969.

 

Onade. Reetrictive Trade Practicee Co-ieeion Regort Concerning the
Production, Purchaee and Sale 95 Flue-Cured Tobacco _1_q______ Ontario.
fitua, 1956.

Cnede. Depart-ant of National Health and Helfare. 3113 Canadian Snokin‘
2!. Health Program: A Caee Hietog. Ottawa: Queen'e Printer, 1967.

One“. Department of National Health and Welfare. Snokin‘ and Health
leference Book (Canada). Ottawa: Queen'e Printer and Controller
of stationery, 1966. ' '

Cmda. Standing Co-ittee on Health, Helfare and Social Affaire.
Hinute_______e_ _o_f Proceedings gel Evidence. (Co-one.) 1968-1969.

Davie, Albert A. Tobecco _i_n_ Ontario, Canada. Foreign Agricultural
Service, 0. 8. Depart-ant ong rcui Iture ,Haehinxton, Invader, 1968.

W, H.H., Andereon, H. 3., and Herr, T. C. A _l_e____viev of ricultural
Polig 1! Canada. Agricultural [cone-ice leeearch Comci o
Canada, June, 1966.

Great Britain: Pang-eaten Debetee. (Co-one. ) 1960-1970.

Great Britain. Regort: J______uvenile Snokin‘___ Hill. (Lenin) Ordered to be
printed July 9, 1906—__Londen: Printed for Hie Hajeety' a Stationery
' Office by "yuan and Bone, Ltd. '

Great Britain. Hinietry of Health. Annual m. 1962, 1967, 1968,
l969.

0.8. Uvieory Main on Intergovernentel lelatione. Itate-Pederal
pnrlapphl_ in up erette Pence. lepert A-zb. flaehingtcn: 0.3.
Govern-ant Printing Office, Septefier, 1966.

0.3. tureau o! the Ceneue. Annual Survez of Hanufecturere. Haehingtcn:
0.8. Govern-ant Printing Office, 1966, _1535, I966.

0.8. Bureau of the Ceneue. Con reeeional Dietrict p____ata Book. Weehington:
U. 8. Governnent Printing Office, 366.

 

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633

Congress, Rouse. Co-ittee on Govern-ant Operations. False 533
Misleading Advertising (Filter-Tip Cigarettes). Washington: 0.8.
Govern-eet Printing Office, 1958.

 

Congress, House. Co-ittee on Interstate and Foreign Co-erce.
nearing, Cigarette Labeligg and Advertising. 88th Cong., 2nd Sess.,
6‘.

Congress, Rouse, Co-ittee on Interstate and Foreign Co-erce.
, Cigarette Labeligg and Advertising -- 1965. 89th Cong.,
1st Sess., 1965.

Congress, House, Co-ittee on Interstate and Foreign Co-erce.
_B_ea__r_igg_s_, Cigarette Labeling and Advertising -- 1969. 91st Cong.,
lst Sess., 1969.

Congress, House, Comittee on Interstate and Foreign Co-erce.
{Que Health Snokin ing Act _o_f l9__§_9. 91st Cong.. lst Sess., Report
No. 91-289, June 5, 1969.—

Congress, Houee. Co-ittee on Interstate -d Foreign Canton.
W2 gf_ Radio end Television Cigarette Advertiselents. 9lst
Cong., lst Sess., 1969.

Oneness, Home, Subco-ittee a Tobacco of the Co-ittee on Agri-

culture. Hearings, 1965 Acreage-Poundagg Marketing Q_u_9_tas £91.;
W. 89th Cong.. 1st Sess., 1965.

Congress, Rouse, Subco-ittee on Tobacco of the Co-ittee on Agri-I
culture. Harm, Tobacco Price-m Prograe. 87th Cap, 1st
Sess., 1961.

Congress, House, Subconittee on Tobacco of the Co-ittee on Agri-
culture. Tobacco Research Laboratory Bearing . 88th Cong., 1st
30.... 196‘s

Congress, Senate. A Bill _t_g Amend the Internal Revenue Code if 1954
_t_o_ Tn Ciggrettes on_ _t_t_1_e Basis o__t_ Their Tar end Nicotine Content.
90th Con... let Sess., 1967.

 

Congress, Senate, Resp onses t__o Questionnaire 9_n_ Citizen Involvement
ad Respmeive _A_g_e_n_¢_:1 Decision-Making: _A_ Mt SOIitted Pl..— the
Subco-ittee on Adninistrative Practice and Procedure to the
Co-ittee o__n the Judicial). 91st Cong., 1st Sess., 19“.—

Congress, Senate, Appropriations Co-ittee. Bearings, Depart-eet

of “11911ng “lam mam W. 91st Cong”
1st Sess., 1969.

U 8. Congress, Senate, Co-ittee on Co-erce. Hearin gs, Cigarette____ Label-

135191114521. 89th Gee... lst Sess., 1965.

 

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43’:

Congress, Senate, Co-ittes on Co-erce. Public Health Cigarette
Booking Act _o_f_ 1969. 91st 00:13., let Sess., Report No. 91-566,
Dace-bar S, 1969.

Congress, Senate, Consuner Subco-nittee of the Connittee on Commerce.
Hearings, Cigarette Labeling and Advertising. 913:; Cong., 1st Sess.,
1969.

 

 

Wt of Agriculture. Annual Rgport 2; Tobacco Statistics.
1959-1969.

 

Departmt of Agriculture. Annesl Report _o_n_ Public Lav 1:80, Food
for Freedom: New Emphasis _o_n_ _S__elf-He e2. Washington: 0. S. Govern-
Ient Printing Office, 1967.—

 

 

Depart-sot of Agriculture. Poreig Agriculture Circular, 1960-1970.
Depart-at of Agriculture. tobacco Situation. 1960-1973.
Departant of Agriculture, Conn-er ad Marketing Service. Tobacco

in; the thioed States. Huhhgta: 0.8. Govern-at Printing Office,
1966. .

 

Wt of Agriculture, Tobacco Division. Tobacco: Insyection-
Market News and Demonstration Services. washington, December, 1961.

 

 

Demo-at of Health, Bdecatia ad Welfare. Annual Reart__ to _t__he
President. Washington: U. S. Govern-eat Printing Office, 1967-1970.

Depart-at of health, Education ad Welfare. Snokig ad Health:
m _o_f_ the Advisory CoIIittee to the Snggon General of the
Public Health Service. Hashingta: 8.8. Covert-eet Printing Office,
1964.

 

......» of fleslth, remain, ad ielfere, Task rote. for Snoking
21 Health: Remrt _t_g the SurJeon General. Washington, 1968.

 

Depart-ant of Health. Education and Welfare, -Poblic lollth Service.
lealth Conseggaces _o_f_ Seeking: 1968 Smlenat _t_o_ the 1967 Public
leslth Service. Washington: 0.8. Government Printing Office, 1969.

 

 

Federal Co'auicstioos Ce-isoioe. Kannada clinics ad Order in
the Matter _o__f Television Station EDS-TV, New York, N. Y.: _A-gglic-
abilitz_ of the Fairness Doctrine to Cigarette Advertisian. Washing-
ton, Septeaer, 1967.

 

 

 

laderal trade Cassia. hurt g; the Federal ‘rrade Canissiea 93
_eg the Tobacco Industry. Hashington: . Covers-ant hinting Office,
1921.

 

0.8. Rental trsh Oil-ission. m 32 Congress. Washington, 1967-1972.

 

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435

0.6. Joint teak Home of the U.S.D.A. ad the State Univeraitlea and
Lad Gtat Collegee. _A_ National Prglran g; Reeearch for Tobacco.
Huhhgton. 1968.

Unpublished ”tartan

M be Coaittee of the Canadian Tobacco lndnetry. "Sea Scientific
Impecum for Constantin of Hunting and Health Qneatima:
Pretentation to the Conference on Smoking ad Health of the
Duper-tat of national Health ad Welfare. Ottaa: flower 25—26,
1963. , .

AddraeeftheChen-naot laertalraaeneGnaeLMtndtetheShare—
blar'e Annual General Meeting. Hay 12, 1971.

can. Depart-at of National Health all Ibuare. "la Ieleeau."
1966-1972. . . ,

cum. Danette-toiletiaellalthadllelfaae. "Bananarette
”in. ad halth." A report preeeated to the Health, Welfare and
Social Affaira Coaittee of the Honee of Coaone. Deceaer 19, 1968.

(in-ennui.) - a '

Cana. hart-tot lawman-1mm». "haereh'ad
ltattattoe ho." Ottaa..Jae-. 1969. W.)

Caadta “exam. Aaeociatia. "1971 Canadian trade 1m."

Cue“- taecoo Mafeetnrere' Ooactl. "rette flat the Canadian
tobacco Henna-y for the Year 1970" (led-eted). Ottaa, April.

1971. (flagrant-d.)

Caadla tobecco Hanfectnrere' Coacil. "Preea Conference." Ottawa.
“(in 11. 1971. .

Beckett. Robert c. "Where Do We Go froe Here in Tobacco ad Health
ma." dare-e to the Harley ad Dark lat reliance Expat.
Anaemia. October 2. 1967. . a .

Hun. Dam. “the Sakh- Prnblen 1a 1971.” a luau-enacted at» the
am- Cancer Society' a 13th Annual Science writere' Sainar.
Phoenix. Arizona, April 6,1971.

“on, natal ad Genie. m1. "mereee Inert en lettatn'e Sauna
all Health Program" Iockville, Maryland: National Clearinghonee
a Seeking ad Health, July, l966 (1n the fflee of the Clearing-

m)e “
Int-ru- em Caadian. u. r. 3..., Nether.

 

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Internal with 0.0. Lavie, Canadian Depart-eat of national Health and
Ieltare.

lune”, Borneo. "Renarke Before the National Aeeociation of Farm Broad-
caetere." Chicago, November 28, 1969.

“my, lee-ace. "Renarke to the Salee all Marketing Executives Club."
lichaond, April 20, 1970.

Letter fr. nary Geller, Federal Co-nicatine Co-ission. October 15,
1970.

Letter fre- L.C. Laporte, Tobacco Manufacturare' Council. July 22, 1971.

Letter fra cm Hinietry of Health to Coaty ad Couty Borough Coacila.
October 19, 1966.

Letter Ira C.D. Noble, Executive Director of the Canadian Public Health
Aeeociatia. Aasuet 5,1970.

Letter fem Jan Partridge, Chairmen, W tobecco Group Liaited. ...”-..

Gender 6, 1971.
Letter fro- the Tobacco Inetitute to the FTC. October 23, 1970.

Ratio-l hterapey Coacil a “in; ad Health. "National Conference
on bun; ad Health, Septder, 1967: A at-ery of Proceedinge."
he York, no date.

Retinal Tobacco Tax Aeeocietion, "Proceedings of Annual Heetinge."
Guinean: Federation of Tax Abinietratore, 1959.

Neva leleaee tron the Office of Robert 1'. Kennedy. New York, September
11, 1967. .

Pm’, mm m ennui-ea to the Retinal Aeeociation of Tobacco
all Cafectionery Dietributore Cavation. October 8, 1969.

saith, Paul D. Addreee to the Eighteenth Annual Convention of the Burley
ad Dark Leaf Tobacco Export Aeeocietion. October 3, 1967.

"' Baking ad Health: A Preeentation of the Canadian Tobacco Induetry
my.” ' , :. ,

“M. an! filth Pregr. mad the “arid." .Ieeltville, nerylad:
W1 Clearinghouee for Seeking ad Health, June, 1970.
(Hi-ographed.)

"50- !ecte About ‘l'obecco - for Background Inforaetion." flaehington:
III M luatitnte, Inc., no date but apparently 1969.
(Hi-agraphed.)

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Speech delivered by R.P. Dobson at the 68th Annual Meeting of the British-
American Tobacco Company Limited. April 15, 1971.

The steeco Institute. "News Releases." 1967-1970.

0.8. Deputlat of Agriculture, Tobacco Division. "Tobacco in the Nation-
al Economy," June, 1970. (Himeogrsphed.)

0.3. Federal Connications Co-iasion. "Notice of Proposed Rule Making."
February 5, 1969 (in the files of the Omission).

“.8. Federal Trade Commission. "Nave Releases." 1966-1972.

11.8. Federal Trade Comission. "Official Transcript of Proceedings Before
the Federal Trade Co-issicn in the Hatter of Proposed Trade Regula-
tion Rules for the Advertising and Labeling of Cigarettes.” Washing-
ton, Hatch 16, 1964 (in the files of the Comission).

U.S. Federal Trade Commission. "Trade Regulation Rule for the Prevention
of Unfair or Deceptive Advertising and Labeling of Cigarettes in
Relation to the Health Hazards of Smoking and Accompanying Statement
of Basis ad Purpose of Rule." Washington, 196‘ (in the files of
the Co-ission).

U.S. Bederal Trade Commission, Division of Scientific Opinions, Bureau of
Deceptive Practices. "Statements on Cigarette Smoking and Health by
United States and Foreign Health Associations and Organizations,
Medical Societies, Governmen tPublic Health Bodies and Officials, and
International Health Organizations." Undeted, but apparently 1964.

0.8. Federal Trade Coaission, "A Report on Cigarette Advertising and
Output." Hashington, 1963 (in the files of the Conission).

0.8. Public Health Service, National Clearinghouse for Smoking and Health.
"Use of Tobacco: Practices, Attitudes, Knowledge and Beliefs --

United States - Fall 1964 and Spring 1966." Rockville, Maryland,
1969 (in the files of the Clearinghouse).

Reports
America Tobacco [American Brands, Inc.]. Annual Reports. 1950-1972.

British-American Tobacco Company Limited ad British-American Tobacco
Investments Limited. Annual ReJort and Accounts. 1968-1972.

Gellaher, 1968 Director's Report.

Inerial Tobacco Groups Linited. Annual Report and Accounts. 1970.

 

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Imperial Tobacco of Canada, Limited. Annual Report 1969.

Liggett and Myers Tobecco Company [Liggett and Myers, Inc.]. Annual
Reports. 1955-1932.

P. Lorillard [Loews Incorporated]. Annual Reports. 1955-1972.

The Manitoba Educational Research Council. é_Studz pg Cigarette Adver-
tising: A_Report Submitted pg the Department pf National Health

and Welfare. Winnipeg, 1966.

Maxwell, John C. The Marvell Report: 5 Quarterly Statistical Survez
25 the Cigarette Industry. New York: Oppenheimer & Co., 1970.

Philip Mbrris Tobacco Company [Philip Morris Inc.]. Annual Reports.
1955-1972.

R.J. Reynolds Tobacco Company [R.J. Reynolds Industries, Inc.]. Annual
Reports. 1950-1972.

 

 

 

 

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