Philip Morris
How to Set Up A Tobacco Network - U.S. Hearings Remarks of John D. Kelly Infotab Workshop
Fields
- Author
- Kelly, J.D.
- Type
- SPCH, SPEECH, PRESENTATION
- Area
- CORPORATE AFFAIRS/EU ARCHIVE
- Attachment
- 2501021486/2501021725
- Site
- E26
- Request
- Stmn/Rl-008
- Stmn/R1-009
- Named Organization
- Congress
- Farm Bureau
- Ga Pacific
- Oh Assn of Tobacco + Candy Distributors
- Oh Music + Amusement Assn
- Tan, Tobacco Action Network
- Tax Writing Ways + Means Comm
- TI, Tobacco Inst
- Coalition Group
- Farm Bureau
- Named Person
- Glenn, J.
- Gradison, W.
- Lerner, J.
- Metzenbaum, H.
- Pease, D.
- Gradison, W.
- Author (Organization)
- Infotab Workshop
- Master ID
- 2501021486/1725
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- Litigation
- Stmn/Produced
- Date Loaded
- 05 Jun 1998
- UCSF Legacy ID
- wex19e00
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4.2
HOP' TO SET UP A TOBACCO NETWORK - U.S. HEARINGS
RET4ARKS OF JOHN D. KELLY
INFOTAB WORKSHOP

GOOD AFTERNOON. MY TASK TODAY IS TO DESCRIBE THE WAY A TOBACCO
NETWORK IS USED. MY DISCUSSION WILL FOCUS ON THE OPERATION OF THE
TOBACCO ACTION NETWORK, COMMONLY REFERRED TO AS TAN.
BEFORE WE GET INTO THE WAY TAN OPERATES, LET ME PROVIDE SOME NECESSARY
BACKGROUND INFORMATION.
TAN'S BASIC PURPOSE IS TO IDENTIFY, EDUCATE, ORGANIZE AND MOBILIZE
THOSE INDIVIDUALS WHO ARE PRO-TOBACCO, FOR TWO PRIMARY GOALS:
(1) TO BE A LEGISLATIVE SUPPORT SYSTEM FOR OUR PROFESSIONAL
LOBBYISTS AT THE FEDERAL, STATE AND LOCAL GOVERNMENT LEVELS
WHO ARE WORKING TO DEFEAT LEGISLATION THAT WOULD RESTRICT OR
PROHIBIT THE USE OF TOBACCO PRODUCTS -- IN OTHER WORDS, KILL
BILLS.
(2) A LONGER RANGE GOAL IS TO HELP GENERATE A SENSE OF COMMON
INDENTITY AND PRIDE AMONG EVERYONE WITH PRO-TOBACCO
INTERESTS, WITH THE ULTIMATE GOAL OF CREATING A MORE
POSITIVE IMAGE OF TOBACCO AND THE TOBACCO FAMILY.
TAN ACTIVITIES ARE CURRENTLY DIRECTED BY THE TOBACCO INSTITUTE'S 22
AREA DIRECTORS WHO ARE LOCATED THROUGHOUT THE U.S. WHO MONITOR STATE
AND LOCAL LEGISLATION IN ALL 50 STATES. THE AREA DIRECTORS REPORT TO
ONE OF FOUR REGIONAL VICE PRESIDENTS WHO ARE BASED HERE IN WASHINGTON.

CURRENT TAN MEMBERSHIP HAS BY CHOICE LEVELLED OFF AT ABOUT 85,000
VOLUNTEER. NATIONWIDE. THE DISPERSAL OF THESE MEMBERS RANGE FROM A
FEW HUNDRED IN OUR SMALLEST STATES TO SEVERAL THOUSAND IN THE LARGEST
STATES.
MANY OF THESE VOLUNTEERS COME FROM THE TRADITIONAL TOBACCO-RELATED
FAMILY -- TOBACCO FARMERS, MEMBER COMPANY PERSONNEL, WHOLESALERS,
VENDORS, RETAILERS AND OTHERS WHOSE LIVELIHOODS ARE DIRECTLY LINKED TO
THE TOBACCO INDUSTRY.
BUT THERE ARE OTHER EQUALLY DEDICATED INDIVIDUALS WHO MAKE UP THE
TOBACCO ACTION NETWORK -- GROCERS, RESTAURATEURS, AND OTHERS WHOSE
BUSINESSES ARE AFFECTED BY ANTI-TOBACCO LEGISLATION. AND THERE ARE
THOSE TAN VOLUNTEERS WHO DON'T RELY ON TOBACCO SALES FOR A LIVING.
MANY ARE TOBACCO CONSUMERS. SOME ARE EVEN NONSMOKERS. THEY'VE JOINED
TAN BECAUSE THEY BELIEVE IN THE PRINCIPLES OF FREEDOM OF CHOICE. THEY
OPPOSE FURTHER GOVERNMENT OVER REGULATION IN THE AREA OF PERSONAL
BEHAVIOR.
WHILE ITS MEMBERSHIP IS COMPRISED OF DIVERSE GROUPS, TAN HAS ALWAYS
PROVIDED A UNITED FRONT IN OPPOSITION TO ANTI-TOBACCO LEGISLATION.
WHEN THE NEED ARISES, TAN MEMBERS DELIVER A STRONG, PROMPT RESPONSE TO
THE CHALLENGES FACING THE TOBACCO INDUSTRY AND ITS CONSUMERS.

WHEN A TAN VOLUNTEER IS RECRUITED, HE OR SHE PROVIDES THE AREA
DIRECTOR WITH KEY INFORMATION, INCLUDING:
-- HOW THEY ARE ASSOCIATED WITH THE TOBACCO INDUSTRY, AND
-- THE NAMES OF ELECTED OFFICIALS AT THE FEDERAL, STATE AND
LOCAL LEVELS WHOM THEY KNOW PERSONALLY.
THIS LATTER INFORMATION IS EXTREMELY VALUABLE TO THE SUCCESS OF MANY
TAN MOBILIZATIONS. AS YOU WILL SEE, PERSONAL CONTACTS WITH
LEGISLATORS ARE OF MAJOR IMPORTANCE.
(PAUSE)
LET'S GET BACK TO THE TASK AT HAND -- HOW TO USE A TOBACCO NETWORK.
FOR THIS DISCUSSION, I WILL FOCUS ON AN ACTUAL TAN MOBILIZATION IN THE
SPRING AND SUMMER OF 1982. THE TARGET OF THIS MOBILIZATION WAS
HR 4961, A BILL IN THE U.S. CONGRESS THAT INCLUDED A PROVISION
INCREASING THE CIGARETTE TAX FROM 8 TO 16 CENTS PER PACK.
OUR OBJECTIVE IN THIS MOBILIZATION WAS TO GENERATE CONGRESSIONAL
OPPOSITION TO THIS INCREASE, WITH THE ULTIMATE GOAL OF HAVING THE
CIGARETTE TAX PROVISION AMENDED OUT OF THE BILL.

AFTER REVIEWING THE VARIOUS STATE STRATEGIES FOR DEALING WITH THIS
NATIONAL TAX INCREASE, I'VE SELECTED A SPECIFIC EFFORT CARRIED OUT IN
THE STATE OF OHIO.
KEEP IN MIND THAT OHIO'S MOBILIZATION STRATEGY IS NOT UNIQUE. JUST
THE OPPOSITE IS TRUE. THE OHIO MOBILIZATION IS REPRESENTATIVE OF THE
CAREFULLY PLANNED APPROACH USED IN MANY STATES DURING THIS AND OTHER
SIMILAR EFFORTS.
IN THE OHIO MOBILIZATION OUR FEDERAL LOBBYISTS ASKED US TO CONCENTRATE
ON FOUR MEMBERS OF CONGRESS:
SENATOR HOWARD METZENBAUM
SENATOR JOHN GLENN
REPRESENTATIVE DONALD PEASE
REPRESENTATIVE WILLIS GRADISON
THEY FURTHER ASKED US TO GIVE PARTICULAR ATTENTION TO REPRESENTATIVE
GRADISON, A REPUBLICAN AND A MEMBER OF THE TAX WRITING WAYS AND MEANS
COMMITTEE. REPRESENTATIVE GRADISON WAS KNOWN TO BE IN GENERAL SUPPORT
OF THE ENTIRE TAX BILL AS IT WAS ORIGINALLY WRITTEN IN THE SENATE.
OUR RESEARCH ON GRADISON YIELDED THE FACT THAT WITH THE DECENNIAL
REAPPORTIONMENT OF CONGRESSIONAL SEATS GRADISON WOULD BE INHERITING
CONSTITUENTS FROM 2 TOBACCO GROWING COUNTIES -- BROWN AND CLERMONT.
THEREFORE, THESE TOBACCO GROWERS WOULD PLAY A KEY ROLE IN INFLUENCING
THEIR SOON-TO-BE CONGRESSMAN.

OUR OHIO AREA DIRECTOR, WORKING IN CONJUNCTION WITH HIS REGIONAL VICE
PRESIDENT, DEVELOPED A STRATEGY THAT INCLUDED
-- PERSONAL VISITS AND PUBLIC MEETINGS WITH GRADISON
-- DEVELOPMENT OF VARIOUS COALITION GROUP SUPPORT, AND
-- DEVELOPMENT OF MAILGRAM AND PHONE BANK OPERATIONS.
HIS FIRST GOAL WAS TO ARRANGE MEETINGS BETWEEN GRADISON AND THOSE
INDIVIDUALS WE KNEW HAD STRONG PERSONAL CONTACTS.
CONTACTS USED AT THIS INITIAL STAGE INCLUDED JERRY LERNER, PRESIDENT
OF A MAJOR REGIONAL WHOLESALER WHO RESIDES IN GRADISONS DISTRICT AND
WHO, INCIDENTALLY, IS OUR 1982 NATIONAL DISTINGUISHED TAN ACTIVIST.
OTHER CONTACTS INCLUDED A REPUBLICAN PARTY OFFICIAL, THE PRESIDENT OF
A MAJOR OHIO BANK, AND THE STATE SENATOR FROM BROWN AND CLERMONT
COUNTIES.
THESE CONTACTS WERE FULLY COACHED AND THAN ASKED TO DETERMINE
GRADISON'S STANCE ON THE TAX BILL; DISCUSS THE IMPACT OF THIS BILL ON
THEIR PARTICULAR BUSINESSES; AND PRESENT GENERAL ECONOMIC IMPACT
INFORMATION REGARDING TOBACCO IN OHIO WHICH HAD BEEN PREPARED AT THE
TOBACCO INSTITUTE.
FROM THESE EARLY MEETINGS, WE DETERMINED THAT SUBSTANTIAL CONSTITUENT
CONTACT WOULD BE NEEDED TO INFLUENCE HIS POSITION. IN OTHER WORDS,
GRADISON WAS DEFINITELY LEANING THE OTHER WAY.

THE AREA DIRECTOR IMMEDIATELY ARRANGED A SECOND ROUND OF MEETINGS
BETWEEN GRADISON AND OTHER PERSONAL CONTACTS AS A WAY OF REINFORCING
THE MESSAGE DELIVERED BY THE FIRST GROUP. THIS GROUP CONSISTED OF
SEVERAL FARM BUREAU OFFICIALS, REPRESENTATIVES FROM MAJOR EMPLOYERS IN
OHIO, A PRO-TOBACCO CONGRESSMAN FROM OHIO AND A STATE SENATE OFFICIAL.
FOLLOWING THE PRIVATE MEETINGS, HE TOOK OUR CAMPAIGN TO THE PUBLIC.
WORKING WITH FARM BUREAU AND TOBACCO COMPANY OFFICIALS, HE ARRANGED
FOR 2 PUBLIC MEETINGS WHICH GRADISON ATTENDED -- ONE IN BROWN AND ONE
I N CLERMONT COUNT I ES
MEETING PARTICIPANTS INCLUDED LOCAL TOBACCO GROWERS, BANKERS AND OTHER
CONSTITUENTS WHO WERE DIRECTLY OR INDIRECTLY DEPENDENT ON TOBACCO FOR
THEIR LIVELIHOODS. LOCAL AND REGIONAL NEWS MEDIA WERE ALSO PRESENT,
ALONG WITH LOCAL REPUBLICAN LEGISLATORS AND PARTY OFFICIALS.
DURING THE MEETINGS, EACH CONSTITUENT GROUP PRESENTED AN ARTICULATE
AND FACTUAL SUMMARY OF THE ADVERSE EFFECTS OF A CIGARETTE TAX
INCREASE.
A SECOND IMPORTANT ELEMENT IN THIS MOBILIZATION WAS COALITION GROUP
SUPPORT.
MORE THAN 21 ASSOCIATIONS, COMPANIES AND BUSINESSES PROVIDED
OUTSTANDING SUPPORT IN THIS EFFORT. THE GEORGIA-PACIFIC COMPANY, FOR
EXAMPLE, PLACED US IN CONTACT WITH THEIR OWN FEDERAL LOBBYIST IN
WASHINGTON AND HELPED GENERATE MAILGRAMS AND LETTERS TO GRADISON. NJ
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THE OHIO MUSIC AND AMUSEMENT ASSOCIATION CONDUCTED MEMBERSHIP MEETINGS
THAT FOCUSED ON THE TAX BILL AND, FOR THE FIRST TIME, ENCOURAGED THEIR
MEMBERS TO ENROLL IN TAN.
WE ALSO RECEIVED EXCELLENT SUPPORT FROM THE MORE TRADITIONAL COALITION
GROUPS, INCLUDING THE OHIO ASSOCIATION OF TOBACCO AND CANDY
DISTRIBUTORS AND THE AUTOMATIC MERCHANDISING ASSOCIATION.
ADDITIONALLY, MOST OF THE COMPANIES WE TALKED TO ENCOURAGED THEIR OWN
EMPLOYEES TO SEND MAILGRAMS OPPOSING A TAX INCREASE TO GRADISON AND
OTHER MEMBERS UF THE OHIO CONGRESSIONAL DELEGATION.
OUR WORK WITH THESE COALITION GROUPS IMPROVED BOTH THE EFFECTIVENESS
OF OUR MOBILIZATIONS AND OUR RELATIONSHIP WITH SEVERAL GROUPS WHICH
HAD NOT SUPPORTED OUR ACTIVITIES IN THE PAST.
ANOTHER KEY ELEMENT IN THE MOBILIZATION WAS MAILGRAM AND PHONE BANK
OPERATIONS.
MORE THAN 2,600 OHIO TAN MEMBERS RECEIVED MAILGRAMS FROM TAN
HEADQUARTERS IN WASHINGTON, URGING THEM TO CONTACT THEIR MEMBERS OF
CONGRESS.
THE MESSAGE WAS SHORT AND TO THE POINT: IF YOU'RE OPPOSED TO AN
INCREASE IN THE CIGARETTE TAX, SEND A MAILGRAM FREE OF CHARGE TO YOUR
CUNGRESSMAN

THE RESPONSE WAS EXCELLENT. THE 2,600 MAILGRAMS WE SENT OUT TO OHIO
TAN MEMBERS GENERATED MORE THAN 3,200 MAILGRAMS FLOWING INTO OHIO'S
LEGISLATORS.
PART OF OUR SUCCESS CAN BE CREDITED TO A SEVEN-DAY PHONE BANK
OPERATION IN WHICH THE AREA DIRECTOR AND A NUMBER OF HIS MORE ACTIVE
VOLUNTEERS ATTEMPTED TO CALL EVERY OHIO TAN MEMBER WHO RECEIVED A
MAILGRAM. ALL TOLD, THEY CONTACTED MORE THAN 1,900 INDIVIDUALS BY
TELEPHONE.
THE AREA DIRECTOR ALSO DEVELOPED A SPECIAL PHONE BANK OPERATION IN
GRADISON'S FUTURE DISTRICT IN BROWN COUNTY. IN THAT ACTIVITY A LOCAL
TAN MEMBER VOLUNTEERED THE USE OF HIS REAL ESTATE OFFICE AND
TELEPHONES FOR THE ENTIRE SEVEN-DAY OPERATION.
OTHER MISCELLANEOUS ACTIVITIES CARRIED OUT BY TAN MEMBERS INCLUDED A
LETTER-TO-THE-EDITOR EFFORT TARGETED TO NEWSPAPERS IN GRADISON'S
DISTRICT, AND THE DISTRIBUTION OF SPECIAL FLYERS TO INFORM RETAILERS
ABOUT THE MAILGRAM PROGRAM.
NOW THAT I'VE HIGHLIGHTED THE MAJOR ELEMENTS OF THIS MUBILIZATION,
LET'S LOOK AT THE RESULTS.
REPRESENTATIVE GRADISON WAS INITIALLY UNDECIDED ON THE TAX BILL AS
WELL AS ON THE SPECIFIC EXCISE TAX PROVISION. FROM OUR EARLY PERSONAL
CONTACTS, HE WAS REMINDED OF THE IMPACT OF THIS SOON-TO-BE-ACQUIRED
TOBACCO GROWER CONSTITUENCY

THROUGH OUR DIRECT CONTACTS, MAILGRAMS AND OUR PUBLIC MEETINGS, HE WAS
PERSUADED TO PROPOSE A 75 PERCENT REDUCTION IN THE SIZE OF THE TAX
INCREASE. GRADISON URGED HIS COLLEAGUES IN THE HOUSE TO SUPPORT HIS
PROPOSAL. ON THE SURFACE, YOU MAY NOT CONSIDER THIS MUCH OF A VICTORY
FOR OUR SIDE. BUT WHEN ONE CONSIDERS THAT GRADISON WAS EXPECTED TO
GIVE HIS FULL SUPPORT TO THIS TAX PACKAGE, HIS CHANGE OF HEART ON THE
CIGARETTE TAX WAS MOST IMPRESSIVE.
UNFORTUNATELY, GRADISON'S PROPOSAL, ALONG WITH OTHER PRO-TOBACCO
AMENDMENTS FROM OTHER HOUSE MEMBERS, WERE NOT ADOPTED. IN THE END,
THE FEDERAL EXCISE TAX WAS INCREASED FROM 8 TO 16 CENTS PER PACK.
ALTHOUGH WE LOST THIS TAX FIGHT, WE SURPRISED MANY FOLKS ON CAPITOL
HILL. WITH THE HELP OF TAN, WE CAME VERY CLOSE TO DEFEATING A TAX
BILL THAT HAD THE STRONG, ACTIVE SUPPORT OF THE REPUBLICAN
ADMINISTRATION AND THE DEMOCRATIC PARTY LEADERSHIP.
ALTOGETHER, WE GENERATED MORE THAN 90,000 MAILGRAMS TO THE PRESIDENT
AND MEMBERS OF CONGRESS.
IN OHIO, TAN GREATLY IMPROVED IT'S TIES WITH COALITIONS AND
LEGISLATORS AND THEIR STAFFS. THESE TIES HAVE ALREADY PROVED
INVALUABLE DURING OUR MOBILIZATIONS IN 1983.
IN CONCLUSION, ONE THING MUST BE STRESSED. THERE IS NO SINGLE
STRATEGY FOR FIGHTING ANTI-TOBACCO BILLS AT THE FEDERAL, STATE AND
LOCAL LEVELS.
