Cigarettes: Profit before People

The United States Tobacco Industry: 1870‐1964 19th Century Tobacco in the 1800’s

In the 1800’s chewing tobacco was coined the American Habit. Spittoons were installed in the U.S. Senate chamber. Cigarette use increased at the turn of the 20th century.

Improvements in transportation, manufacturing volume, and packaging allowed tobacco companies to expand their market and brands nationwide. Tobacco Advertising in the 19th Century

In the late 1870s with the invention of color lithography, brands strengthen their identities; companies included small cigarette cards in every box as premiums. These collectible trading cards depicted movie stars, famous athletes and even Native American chiefs. The Bonsack cigarette rolling machine

The Bonsack Rolling Machine automated the manufacturing of cigarettes, ushering in the mass production of cigarettes. Mechanical cigarette production fostered increased cigarette consumption and permitted the introduction of chemicals and additives to homogenize the tobacco and improve the flavor.

Before the Bonsack rolling machine, cigarette were hand rolled at the rate of 200 cigarettes/day. The Bonsack Rolling Machine created cigarettes at a rate of 100,000/day.

Albert Bonsack 1884 W. Duke Tobacco buys Bonsack machinery

In 1884, James “Buck” Duke the owner of W. Duke Sons & Co. purchased two Bonsack cigarette rolling machines and in 1887, made exclusive contracts with Bonsack. In 1880 these tobacco companies were the “The BIG FOUR”

Goodwin and Co. W. S. Kimball Kinney Bros. Allen & Ginter’s

Old Judge Three Kings Sweet Caporals Richmond Straight Welcome Vanity Fair Pet Cigarettes

On April 23, 1889, the Big Four merged, creating The American Tobacco Company Trust with “Buck” Duke as president. In the 1890s “Buck” Duke bought the competition 1909 American Tobacco dominates the domestic market

By 1909, The American Tobacco trust controlled • 86% of the national cigarette business, • 85% of plug, • 76% of smoking tobacco, • 97% of snuff and 14% of cigar manufacture. Big tobacco, the railroads and Big oil were the three great monopolies of the 19th century.

In 1911, the U.S. Supreme Court decides that the American Tobacco Co. was a monopoly and in violation of the Sherman Anti‐Trust Act (1890).

The American Tobacco trust is dissolved into five companies: • American Tobacco Co. • R. J. Reynolds • Liggett & Myers Tobacco • Lorillard Tobacco • British‐American Tobacco When American Tobacco Company was dispersed into smaller companies the opportunity for competitive brands unfolded. The need for tobacco blends and advertising increased.

Celebrities and sports stars endorsed cigarettes. Even physicians and nurses were depicted in cigarette advertisements, which appeared in medical journals and included many health claims. Original brand introductions World War I (1914‐1918)

The First World War propelled a revolution in smoking habits and introduced a generation of men to the new convenience habit. Soldiers received a weekly ration of 50 cigarettes known as fags. Thousands upon thousands of soldiers returned from War as regular smokers, addicted to cigarettes. Each company introduced a flagship brand

1912 Liggett & Myers introduced "Chesterfield"

Lorillard introduced the first Camel introduced blended cigarette, Old Gold in 1913 Label, in 1926

Raleigh introduced in 1926

American Tobacco launched Lucky Strike cigarettes in 1916 1913 Camel, R. J. Reynolds 1912 Chesterfield, Liggett & Myers Tobacco 1916 Lucky Strike, American Tobacco Co. 1926 Old Gold, Lorillard 1928 Raleigh, Brown & Williamson 1933 Kool, Brown & Williamson 1933 Philip Morris was not a part of the American Tobacco Company Trust

In 1919, George Whelan Tobacco Products purchased the tiny U.S. Philip Morris Company, which includes PM's brands: Cambridge, Oxford Blues, English Ovals and Players. The new Philip Morris & Company, Ltd. Inc, is incorporated in Richmond, VA. 1940 Pall Mall, American Tobacco 70 mm Cigarettes of the 1930s and 1940s

American Tobacco Lorillard Tobacco Brown & Williamson

Liggett & Myers R. J. Reynolds Philip Morris Tobacco 70 mm Cigarettes of the 1930s and 1940s

American Tobacco Lorillard Tobacco Brown & Williamson

Liggett & Myers R. J. Reynolds Philip Morris Tobacco 1918 The Three Major Brands Women smoking Women and Smoking

The cigarette habit took longer to take hold in the United States than overseas. The U.S. solders returned from the War to find a period of cigarette prohibition. Many towns considered smoking an arrestable offence on moral rather than medical grounds.

In 1929 American Tobacco’s Lucky Strike appealed to women by suggesting they “Reach for a Lucky instead of a sweet.” Edward Bernays

However in the early 20th century smoking was not considered ladylike and women never smoked in public. George Hill of American Tobacco Company realized the potential of the new untapped demographic. In 1929, he asked a New York public relation executive, Edward Bernays , to help recruit women smokers. Bernays decided to capitalize on the newly emancipated women and called Lucky Strike cigarettes “torches of freedom.” Bernays called up a few of his debutante friends and asked them to walk in the New York City Easter Parade, lighting “torches of freedom” “to protest mans inhumanity to women by a taboo against smoking.” VIDEO TOBACCO WAR EXCEP http://www.youtube.com/watch?v=iplzsMazQz4 found at 13:00 min into movie Amelia Earhart Amelia Earnhart‘s liberated likeness was used by American Tobacco to advertise Lucky Strike cigarettes. 1953 Philip Morris’ Marlboro cigarette “Mild as May” Marlboro, The Cigarette of Distinction Radio ads, movies and celebrity endorsements Hollywood and the movies

In the 1930, people visited the movies regularly; the theaters were crucial venues for tobacco advertisements. Philip Morris utilized a page boy midget, Johnny Roventini, and the slogan “call for Phillip Morris” to introduce the movies.

But more importantly movie stars were highly influential as smoking role model. America Tobacco Company sent free cartons of Lucky Strikes to entice stars, like Clark Gabel, to smoke and show the Lucky Strike package on the big screen, as in the 1934 movie: Chained. American Tobacco Co. struck deals with a handful of U.S. Senators to endorse Lucky Strike cigarettes.

In a testimonial ad depicted here, North Dakota Sen. Gerald P. Nye praised the "comfort and safety a light smoke gives my throat." Each Senator received $1,000 from the tobacco companies. Broadcast cigarette advertising increased rapidly during the 1930’s with more than half the American home owning a radio.

American Tobacco Company sponsored Your Hit In 1940 the tobacco Parade. Industry continued to utilize radio Lorillard’s Old Gold cigarettes sponsored Artie media by broadcasting "Raleigh Shaw’s band broadcasting twice weekly. Cigarette Program" or Red Skelton's show which aired with this name for a period of time. Lucky Strike became the official tobacco partner of the Jack Benny Show in 1942 Holiday Ads In response to the 1939, article Carcinoma of the Lungs by Drs. Alton Ochsner and Michael DeBakey Edward Harlow, a chemist at the American Tobacco Company, circulated an internal memorandum. Referring to research funded or conducted by American Tobacco, Harlow predicted that impartial research would vindicate cigarettes but that “this would Document never be suspected by reading the needed extensive medical literature on tobacco.” He also noted that the “medical profession is the group which it is most desired to reach and convince” and that the “tobacco industry is very much in need of some friendly research in this field.” 1942 Smoking and Movies

Humphrey Bogart Bette Davis Now Casablanca Voyager 1941 Billboard Advertising R.J. Reynolds’ Camel smoke‐ring billboard becomes a Times Square landmark for the next 25 years. World War II Doctors Nurses Lucky Strike Green Has Gone to War WORLD WAR II

The cigarette habit exploded during World War II, when a world market opened up to the American tobacco industry. Britain spent more money on tobacco than war weaponry. Cigarettes were included in G.I.'s C‐Rations. Tobacco companies sent millions of free cigarettes to G.I.'s, internationalizing the most popular brands. While on the home front smokers had to make do with off‐brands like Ramses or Picayunes. More doctors smoke 1946 Lorillard Document states “Just enough evidence”

Key Lorillard chemist, Harris Parmele, writes to the manufacturing committee stating: "Certain scientists and medical authorities have claimed for many years that the use of tobacco contributes to cancer development in susceptible people. Just enough evidence has been presented to justify the possibility of such a presumption." 1946 More Doctors Smoke Camels The phrase will run in ads through 1952

"According to a recent nationwide survey: MORE DOCTORS SMOKE CAMELS THAN ANY OTHER CIGARETTE! Family physicians, surgeons, diagnosticians, nose and throat specialists, doctors in every branch of medicine... a total of 113,597 doctors...were asked the question: "What cigarette do you smoke?" And more of them named Camel as their smoke than any other cigarette! 1946 More Doctors Smoke Camels

Three independent research groups found this to be a fact. You see, doctors too smoke for pleasure. That full Camel flavor is just as appealing to a doctor's taste as to yours... that marvelous Camel mildness means just as much to his throat as to yours. Next time, get Camels.” Medical journals and legal issues In 1942 RJ Reynolds Tobacco Company advertised in the Journal of the American Medical Association. Reynolds even presented a exhibit of Camel cigarettes at an AMA Convention. 1943 Advertising in medical journals

Philip Morris, in 1943, placed an ad in the National Medical Journal which read: "'Don't smoke' is advice hard for patients to swallow. May we suggest instead 'Smoking Philip Morris?' Tests showed three out of every four cases of smokers' cough cleared on changing to Philip Morris. Why not observe the results for yourself?" 1945 The three largest tobacco companies are convicted of anti‐trust violations

Again in 1945, the three largest tobacco companies American Tobacco, Liggett & Myers and R. J. Reynolds, together with certain of their officials and a subsidiary of one of the companies, were convicted by a jury, in the district court, on counts of conspiracy in restraint of trade, attempt to monopolize, conspiracy to monopolize, and monopolizing in the tobacco industry, in violation of the Sherman Anti‐Trust Act. 1945 The three largest tobacco companies are convicted of anti‐trust violations

In 1945, each was fined an aggregate of $15,000 on three of the counts, or a total of $255,000. On the count of attempting to monopolize, no fines were assessed, for the reason that this offense was held to be merged in the offense of monopolizing. The allegations of fact are the same for each count on which the parties were convicted. Radio ads, television and celebrity endorsements 1945 The three largest tobacco companies are convicted of anti‐trust violations

''Camel News Caravan,'' a NBC nightly news program, airs in 1949, proudly bearing the name of its tobacco‐company sponsor. The broadcast ended in 1956. http://www.youtube.com/watch?v= xfczfHjfn9k 1950 1945 The three largest tobacco companies are Lucky strikeconvicted sponsored of a antipop‐‐musictrust series violations "Your Hit Parade. " Your Hit Parade ran for 7 years on television. 1951 I Love Lucy

The immensely popular television series, "I Love Lucy" was sponsored by Philip Morris. The animated titles featured stick figures of Lucy and Desi climbing a giant pack of Philip Morris cigarettes. It was common in those days for the stars of T.V. shows to advertise cigarettes on the air. Frank Statement 1954 TIRC Tobacco Companies Meeting

In wake of the growing health concerns the Tobacco Industry decided to have a “meeting of the heads of all those cigarette companies.”

Paul M. Hahn American Tobacco December 10, 1953 1953 Industry denial

November 26, 1953 Press Release Paul M. Hahn, President of the American Tobacco Company

“. . . no one has yet proved that lung cancer in any human being is directly traceable to tobacco or to its products in any form.” 1953 Plaza Hotel Meetings

On December 14, 1953, the Tobacco Industry set up a series of meetings at the Plaza Hotel in New York with their public relations agency, Hill & Knowlton, the largest in the world. The executives discussed: (i) the negative publicity from the recent articles in the media, (ii) responding to the problem by jointly engaging a public relations counsel and (iii) removing health themes from advertising. Cigarette Industry Client Well known public relations counsel, Hill & Knowlton “feel that they [industry] should sponsor a public relations program which is positive in nature and is entirely ‘pro‐ cigarette’.” A Frank Statement The Tobacco Industry Research Committee (T.I.R.C.) published A FRANK STATEMENT TO CIGARETTE SMOKERS on January 4, 1954.

• “We accept an interest in people's It appeared in 448 health as a basic responsibility, paramount to every other newspapers from coast to coast consideration in our business. and reached a circulation of 43, • We believe the products we make 235,000 in 258 cities. are not injurious to health. • We always have and always will cooperate closely with those whose task it is to safeguard the public health.” April, 1954 T.I.R.C. White Paper

T.I.R.C.'s first scientific director was noted cancer Dr. Clarence Cook Little, former head of the National Cancer Institute (soon to become the American Cancer Society). Little's life work lay in the genetic origins of cancer; he tended to disregard environmental factors.

In April, 1954, the T.I.R.C. published A SCIENTIFIC PERSPECTIVE ON THE CIGARETTE CONTROVERSY, a booklet quoting 36 scientists questioning smoking's link to health problems. 1955 Timothy V. Hartnett, T.I.R.C. Chairman See It Now, Edward R. Murrow

"See It Now" a TV show on CBS airs the first TV report linking cigarette smoking with lung cancer and other diseases.

(For the first time on TV, Edward R. Murrow is not seen smoking. He had not quit; he felt it was "too late" to stop. Murrow died of lung cancer in 1965.)

Timothy V. Hartnett the director of the T.I.R.C. interjects the view of Tobacco Institute 1955 Clarence Cook Little, T.I.R.C. Scientific Director See It Now, Edward R. Murrow Question: “Suppose the tremendous amount of research going on… were to reveal that there is a cancer‐causing agent in cigarettes, what then?” Dr. C.C. Little: “… it would be made public immediately…and then efforts would be taken to attempt to remove that Dr. Clarence Cook Little substance or substances.”

Edward R. Murrow, See It Now, Cigarettes and Lung Cancer, June 7, 1955 1958 British Tobacco visits the U.S.A Filter cigarettes 1931 Parliament, the first American cigarette with a filter and a recessed mouthpiece Benson & Hedges introduced Parliament which came in a hard box. It featured a mouthpiece and the first commercial filter tip: a wad of cotton, soaked in caustic soda. Both were meant to keep bits of tobacco out of the smoker's mouth However Parliament was expensive and never gained much popularity until 1956, when Philip Morris repositioned the brand in the popular price bracket. 1936 Viceroy Brown & Williamson The only other filter brand prior to 1952, was Viceroy which used a cork tipping paper developed by Brown and Williamson. In 1952 Viceroy was the first brand to add a cellulose acetate filter created by Brown and Williamson, and the new industry standard. 1953 "Viceroy gives double‐barreled health protection." 1952 ‘The Greatest Health Protection’ Lorillard introduced Kent with the "Micronite" filter

At a press conference held at the Waldorf‐Astoria Hotel in New York Lorillard Tobacco boasted that the "Micronite" filter offered "the greatest health protection in cigarette history."

Its secret ingredient, asbestos in the filter tip. 1953 L&M, Liggett & Myers

Liggett & Myers widely publicized the results of scientific tests run in 1952, by Arthur D. Little, Inc. which concluded: “Smoking Chesterfields would have no adverse effects on the throat, sinuses or affected organs." The ads ran, among other places, on the nationally popular Arthur Godfrey radio and television shows. 1953 R. J. Reynolds science In February, 1953, R.J. Reynolds’ scientist Claude Teague Jr. delivered his paper to management; Survey of Cancer Research with Emphasis Upon Possible Carcinogens from Tobacco.

Teague confirmed the relationship between heavy and prolonged tobacco smoking and the incidence of lung cancer. 1953 R. J. Reynolds science

CONCLUSIONS “Studies of clinical data tend to confirm the relationship between heavy and prolonged tobacco smoking and incidence of cancer of the lung.” “In view of the facts presented in this report it is recommended that management take cognizance of the problem and its implications to our industry.” 1954 Just What the Doctor Ordered

Life Magazine runs ads for L&M featuring film idols Barbara Stanwyck and Frederic March. The brand's new "miracle product," the "alpha cellulose" filter is "just what the doctor ordered."

These ads will figure prominently in the Cipollone trial 30 years later. 1954 True, a men’s magazine publishes Smoke Without Fear

Don Cooley, in the process of writing an article for True Magazine, is contacted by Hill and Knowlton. "Considerable information and assistance was provided Donald G. Cooley in the preparation for his story in True Magazine. This entailed conferences with the author to work on factual revisions. . . Further research and assembling of material and personal conferences have been extended Mr. Cooley to provide him requested aid in his writing of a 48‐page, low‐priced book for newsstand sales and angled at the idea "You don't have to give up smoking." Fawcett Publications is issuing the book entitled 'Smoke Without Fear' , in late August and early September. " Report of Activities through July 31, 1954 July, 1954 Cosmopolitan published To Smoke or Not to Smoke

Need color copy 1954 R.J. Reynolds introduced filter‐tip Winston Philip Morris buys Benson & Hedges in 1954. Joseph F. Cullman, B&H president, now CEO of Philip Morris

Philip Morris hired adman Leo Burnett in late 1954 to re‐ launch Marlboro 1955. Burnett noted filter‐cigarette sales had tripled "in a year marked by widespread publicity on the possible harmful effects of cigarette smoking." He wrote: "You say to yourself: 'Hmmm, people are afraid smoking cigarettes may harm them. Then all we have to do is tell them that our filter makes cigarette smoking safe and we can lean back and watch the money roll in. Marlboro RED pack image. 1955 Marlboro Filter, flavor, flip‐top box.

The Leo Burnett advertising agency invented the concept of the Marlboro Man to counteract the macho impression that filter cigarettes were not for real men. The famous flip‐top box was a real plus for the new Marlboro. The original Marlboro men hailed from many walks of life. 1955 Marlboro Filter, flavor, flip‐top box.

It wasn’t until 1961, when Philip Morris invented Marlboro Country, that the rugged cowboy reigned as the one and only Marlboro Man. Marlboro is the most successful cigarette brand in history. One of every three cigarettes smoked in the U.S.A. is a Marlboro. 1950s Major Filter Cigarette Introductions Tar Derby 1958 The Tar Derby The tar derby is a term used to describe the period in the 1950s and early 1960s marked by a rapid increase in (1) cigarette advertising focused on tar content measurements to distinguish cigarette brands and (2) brand introduction or repositioning focusing on filter technology. The Tar Derby wound down in 1959 after the Federal Trade Commission (FTC) Chairman and several cigarette company presidents agreed to discontinue usage of tar and nicotine claims in cigarette advertisements. 1950s Tar Derby

In 1950 the American cigarette consumption was 10 cigarettes per capita, which equals over a pack a day for smokers. More and more evidence was surfacing that smoking was linked to lung cancer. The tobacco industry denied such health hazards as depicted in the Reader Digest; they promoted new products which were "safer", such as those with filters which implied less tar and nicotine in the smoke. This public's health concerns drives companies to compete in rival ad campaigns touting their filters it named The "Tar Wars" or "Tar Derby". When the decade began, 2% of cigarettes were filter tip; by 1960, 50% of cigarettes were filter tipped. 15 filter brands account for 95% of U.S. sales. Tobacco Institute 1958 The Birth of the Tobacco Institute

In response to the Blatnik hearings in 1957, the cigarette industry created the Tobacco Institute to provide support on matters of litigation, taxation and the press. Hill & Knowlton was traded to the Tobacco Institute to serve as public relations counsel and the T.I.R.C. now could tout itslef as a ‘science only’ endeavor. 1958 Tobacco Institute was comprised of all the major tobacco companies….

. . . and was, “created on behalf of the companies, which assembled an impressive record of derailing attempts to bring tobacco under any regulatory mandates whatsoever“ –Alan Brandt 1958 Tobacco Institute was comprised of all the major tobacco companies

After a tiring day, Donald Slayton and Virgil Grissom take time out for a smoke. 1962 R. J. Reynolds Chemist Alan Rodgman, wrote the following in his report: The Smoking and Health Problem: A critical and objective appraisal. Philip Morris hires Abe Fortas, Lyndon Johnson's personal attorney and powerful lobbyist In 1963. The law firm was ”chosen by the six major tobacco companies (R.J. Reynolds, American Tobacco, Brown and Williamson, Liggett and Myers, P. Lorillard and Philip Morris) to form a committee of lawyers to solidify industry togetherness. The committee met almost daily, planning for every possible contingency, and carefully forming the industry argument for the FTC hearings.

When the issue of labeling came before Congress, it was this group who wrote the testimony, conducted the search for friendly witnesses, and even supplied questions that its Congressional allies could ask opposing witnesses. Abe Fortas The effort of Abe Fortas as well as ex‐Senator Earle C. Clements (soon to be President of the Tobacco Institute 1967‐1970 ) led to the preemption of the F.T.C. by Congress.

The Cigarette Labeling act not only gave the industry weak, generalized labels, but preempted litigation by letting the industry argue that the labels had given smokers sufficient warning, and that they undertook smoking at their own knowledgeable risk.

As Fortas said at a DOJ meeting in June, 1964, "The companies want legislation. . . . . A requirement that packages be labeled would be helpful in civil litigation." Fortas may also have played a large role in Earle C. Clements keeping then‐President Johnson out of the fray.

Fortas later became Johnson's choice for the Supreme Court (1965‐1969). Brown & Williamson attorney Addison Y. Yeaman expresses his view of nicotine in 1963. Surgeon General Report 1964 Report of the Surgeon General Advisory Committee January 11, 1964 January 11, 1964 The United States Surgeon General’s Advisory Committee released its landmark report that linked lung cancer to cigarette smoking.

U.S. Surgeon General Luther Terry, M.D. C.B.S. News Extra: The Surgeon General’s Committee

On the Surgeon General’s report Howard Cullman of the Tobacco Merchants Association stated “We need more research. … If there are bad elements through our laboratories, through the Surgeon General, through the A.M.A. … we hope we may find them and if they are found they will be removed.” Howard Cullman Tobacco Merchants Association, Tobacco Institute Executive Committee, Philip Morris Board of Directors Psychological crutch and self‐rationale 1964 Council for Tobacco Research

After the release of the Surgeon General’s Report the cigarette industry adopted voluntary advertising guidelines Later in 1964, the T.I.R.C. changed its name to the Council for Tobacco Research‐USA, Inc. also known as ("C.T.R.") in order to create an identity separate from the tobacco industry. Despite this desire, industry control of over C.T.R. research increased and produced a menu of daily specials… . Special Projects . Special Accounts . Special Assignments C.T.R. as a “front” ogranization Bill Shinn of the tobacco industry law firm, Shook Hardy and Bacon, identified the C.T.R. as an ‘industry shield’. The End