Reports that Matter

United States v. Philip Morris USA Inc.: Amended Final Opinion

Elliott; Engineered Energy Mgt. Inc.; Environmental Policy Institute; J. Earle Estes; Frederick

Section 25 of 129

Elliott; Engineered Energy Mgt. Inc.; Environmental Policy Institute; J. Earle Estes; Frederick

J. Evans; William Evans; Expenses related to Congressional Hearings in Washington D.C.; Hans J. Eysenck; Eysenck Institute of Psychiatry; Jack M. Farris; Sherwin J. Feinhandler; Alvan R. Feinstein; Herman Feldman; Edward Fickes; T. Finley; Melvin First; Edwin Fisher; R. Fisher; Merritt W. Foster; Richard Freedman; Herbert Freudenberger; Fudenberg; Arthur Furst; Nicholas Gerber; Menard M. Gertler; Jean Gibbons; Carl Glasser; Donald Goodwin; B. Greenberg; Alan Griffen; F. Gyntelberg; Harvard Medical School; Hearings-Kennedy-Hart Bill; William Heavlin; Norman Heimstra; Joseph Herkson; Richard J. Hickey; Carlos Hilado; Charles H. Hine; Hine, Inc.; Harold C. Hodge; Gary Huber; Wilhelm C. Hueper; Darrell Huff; Duncan Hutcheon; Industry

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Research Liaison Committee; Information Intersciences, Inc.; International Consultancy; International Technology Corporation; International Information Institute, Inc.; J.B. Spalding Statistical Service; J.F. Smith Research Account; Jacob, Medinger & Finnegan; Joseph Janis; Roger Jenkins; Marvin Kastenbaum; Leo Katz; Marti Kirschbaum; Kravetz Levine & Spotnitz; Lawrence L. Kuper; Mariano La Via; H. Langston; William G. Leaman; Michael Lebowitz; Samuel B. Lehrer; William Lerner; Edward Raynar Levine; G.J. Lieberman; S.C. Littlechild; Eleanor Macdonald; Thomas Mancuso; Nathan Mantel; R. McFarland; Meckler Engineering Group; Milton Meckler; Nancy Mello; Jack Mendelson; Michigan State University; Marc Micozzi; Irvin Miller; K. Moser; Albert Niden; Judith O'Fallon; John O'Lane; William Ober; J.H. Ogura; Ronald Okun; Ingram Olkin; Thomas Osdene (Philip Morris); Peat, Marwick Main & Co.; Thomas L. Petty; Pitney, Hardin & Kipp; Leslie Preger; Walter J. Priest; R. Proctor; Terrence P. Pshler; Public Smoking Research Group; R.W. Andersohn & Assoc.; L.G.S. Rao; Herbert L. Ratcliffe; Attilio Renzetti; Response Analysis Project; Response Analysis Consultation; R.H. Rigdon; Jay Roberts; Milton B. Rosenblatt; John Rosencrans; Walter Rosenkrantz; Ray H. Rosenman; Linda Russek; Henry Russek; Ragnar Rylander; George L. Saiger; D.E. Sailagyi; I. Richard Savage; Richard S. Schilling; Schirmer Engineering Corp.; S. Schor; G.N. Schrauzer; Charles Schultz; John Schwab; Carl L. Seltzer; Murray Senkus (Reynolds); Paul Shalmy; R. Shilling; Shook, Hardy & Bacon; Henry Shotwell; Allen Silberberg; N. Skolnik; JF Smith; Louis A. Soloff; Sheldon C. Sommers (CTR); JB Spalding; Charles Spielberg; Charles Spielberger; Lawrence Spielvogel; St. George Hospital & Medical School; Stanford Research Institution Project; Russell Stedman; Arthur Stein; Elia Sterling; Theodor Sterling; Thomas Szasz; The Foundation for Research in Bronchial Asthma and Related Diseases; The Futures Group; Paul Toannidis; Trenton, New Jersey Hearings; Chris P. Tsokos; University of

176

South Florida; Helmut Valentin; Richard Wagner; Norman Wall; Wayne State University; Weinberg Consulting Group; Roger Wilson; Wisconsin Alumni Research Foundation; Jack Wiseman; George Wright; John P. Wyatt; J. Yerushalmy; and Irving Zeidman. 01347232-7243 (US 75293); 03638929-8931 (US 20059); 03746309-6316 at 6313 (US 85355); 03746320-6331 at 6327 (US 75305); 86002410-2413 (US 85716); ATX140000938-0939 (US 21122); 507875698-5700 (US 22953); 507875832-5834 (US 20794); 507875857-5859 (US 20795); 507876993-6994 (US 20799); 1005122219-2222 (US 20214); 1005122237-2240 (US 20215); 1005122262-2265 (US 20218); 1005122267-2271 (US 20219); 2015028333-8336 (US 20314); 1005122246-2249 (US 20216); 1005122257-2260 (US 20217); 2010047954-7955 (US 86358); 2015041994-1997 (US 36654); 2015042056-2059 (US 21862); 2015042069-2072 (US 22949); 507876986-6987 (US 20798); 80680283-0285 (US 21065); 80680301-0303 (US 21066); 86002393-2396 (US 86359).

c. Special Account No. 5 306. Another avenue used by Defendants for joint funding of scientists was the research

supported through Lawyers' Special Account No. 5. In a memorandum dated November 8, 1978 to Thomas Ahrensfeld of Philip Morris; Joseph Greer, Liggett; Arnold Henson, American; Ernest Pepples, B&W; Henry Roemer, Reynolds; and Arthur Stevens, Lorillard, and copied to Janet Brown of Chadbourne & Parke; DeBaun Bryant, B&W; Max Crohn, Reynolds; Alexander Holtzman, Philip Morris; Lester Pollack, Lorillard; and William Shinn of Shook, Hardy & Bacon, Edwin Jacob of Jacob & Medinger enclosed a two-year, $400,000 research proposal from Alfred M. Freedman and Richard Brotman. Jacob advised: "Janet Brown, Bill Shinn and I have discussed this proposal with [Brotman and Freedman]. We recommend its approval." The Brotman/Freedman research, related to defining risks and "unhealthy" behavior, was designated by counsel to be a Special Account No. 5 project.11 521029470-9485 (US 30450); 03639217-9217 (US 29290); 682070027-0027 (US

177

  1. In July 1982, Arthur Stevens of Lorillard sent an updated Brotman/Freedman proposal to Lorillard scientist Alexander W. Spears for review. In his assessment, Spears concluded that the Brotman/Freedman proposals were of "little potential value to this Industry," but acknowledged "the area of Brotman's and Freedman's value as witnesses in legislative proceedings." Lorillard participated in the joint funding of the first phase of the project, but did not participate in the second phase. Stevens WD, 16:17-17:3; 01335523-5523 (US 26496); 01335522-5522 (US 26495); 521029470-9485 (US 30450); 01335521-5521 (US 26494).

  2. The Brotman/Freedman project was approved in 1982 by four of the Defendants: American, Reynolds, Philip Morris and B&W and ran through the mid-1980s. 521029470-9485 (US 30450); 86002376-2377 (US 32044).

d. Institutional Grants 309. Lawyers' Special Accounts were also used to pay for the institutional grants funded

by Philip Morris, Reynolds, Lorillard, Liggett, B&W, and American. Defendants funded projects at Harvard University, University of California Los Angeles ("UCLA"), and Washington University. Stevens WD, 19:7-15.

  1. In a November 17, 1978 memorandum, Robert Seligman, Vice President of R&D of Philip Morris, described how Defendants used institutional grants to refurbish their scientific image. Seligman reported that at the meeting Shook, Hardy & Bacon attorney William Shinn had stated:
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CTR began to lose their luster in the mid-60's and the tobacco industry looked around for more beneficial ways to spend their research dollars on smoking and health. It was at this time that special projects were instituted at Washington University, Harvard University, and UCLA. . . . [T]he industry received a major public relation 'plus' when monies were given to Harvard Medical School.

2045752106-2110 at 2107 (US 20467); 1003718428-8432 at 8429 (US 35902).

  1. Defendants' institutional grant to Washington University in St. Louis was to research the immunologic aspects of cancer. 2045752106-2110 at 2107 (US 20467); 1003718428-8432 at 8429 (US 35902); 01338888-8888 (US 26572); 521033382-3383 (US 30478); 521033485-3486 (US 30479).

  2. Defendants' institutional grant to Harvard University was under the direction of Dr. Gary Huber, who was conducting in vivo and in vitro animal studies on the biologic responses to tobacco smoke. Funding began in 1972, and the participating companies were Defendants American, B&W, Liggett, Lorillard, Philip Morris, Reynolds, along with Larus & Brother, Tobacco Associates, and United States Tobacco. The project was to be funded for a total of $2,792,750 over a five-year period. Arnold Henson of American acknowledged that one of the main reasons for the Harvard project was "the PR value of the Harvard name." ZN25950-5956 (US 64794); 955030735- 0737 (US 86365); BWX0004364-4375 (US 36228); 968003136-3137 (US 25857); 961016507-6508 (US 25854); 1000207774-7775 (US 26078); 2015057132-7132 (US 86366); 980076941-6942 (US 86367); BWX0004364-4375 (US 36228); 1005053856-3856 (US 20197); 86001059-1071 (US 86369); 968003658-3666 (US 25860); 961017594-7594 (US 86370); 968003658-3666 at 3665 (US

179

961000834-0834 (US 32366) (Confidential); 01335777-5778 (US 26508); 01335779-5779 (US

503646200-6200 (US 29701); 01335767-5772 (US 26506); 01335774-5774 (US 26507); 01335761- 5764 (US 26505); 980078407-8411 (US 25865). See Section III(E)(3)(d), infra, for discussion of the Harvard/Huber research.

  1. Joint funding at UCLA began in 1974, and the participating companies were Defendants Philip Morris, Reynolds, and B&W, along with United States Tobacco and Tobacco Associates. ZN25950-5956 (US 64794); TIMN217740-7743 (US 62720); TIMN217738-7739 (US 62719).

F. Committees