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REMARKS OF HORACE R. KORNEGAY SOUTH CAROLINA TOBACCO WAREHOUSE ASSOCIATION, INC. MYRTLE BEACH, SOUTH CAROLINA 730612
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' Remarks of 1Io1i ace It. Kornegay
South Carolina Tobacco VTDr.cliou:,c 1lssoc.iation, Inc.
Myrtlc Beach, South Carolina
June 12, 1973
It is alN~.ays a pleasure to be with people who know
and understand and respect tobacco and the great industry in
which we are all partners.- Frankly, it is a welcome relief to
be among friends after months in Washington doing batt le with the .
enemies of our industry.
Just last Friday the perennial skirmish over the price
support pi ogi am was fought once
we won.
a.gain. ?!nd I am happ_v to report
As you know better than most, this program is most worth-
while to the farmer and to the public. Yet it is distorted~ by those
who do not -- or will not -- understand' it. I cannot imagine that
they believe their own charges that the tobacco price support pro-
gram robs bill-ions of dollars from the taxpayers in order to give
subsidies to the growers.
Simple arithmetic belies the accusation.
Last ycar, for example, the realized cost of the tobacco
price support program was $200,000. That's thousands, not millions,
and certainly not billions..
Against this outlay, the Federal Government collected'
$2.2 billion in taxes. That's billions, not millions, and cer- N
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tainly not thousands.
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In other words, my fr.iends. for every single dollar the ~
4-n1~a,-nn Tri ni- cvnn.~ni-f »rnnrnrn nt c; }hi~ nr-I
~ l»na~nrnmPr.i : 41.J..1)0 j) rR
z- rc:re returned to the U. S. mreacury. v defy ot.7r eaemi es to show-
me any other investment, let alone a government program, with a -
payoff like that! rnd yet, they would abolish the tobacco program.
We all have been aware of the world economic crisis, of
the threat to the dollar, and of our country's unfavorable balance
of payments position.
Tobacco and tobacco products have been the rare bright
spot in this gldonly picture. Just last year, export sales of tobacco

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t.Qtalcd $87~3 mi..llion, thu:: adding $639 million to our balance of
pay;:;.:nts, po~~ition. In fzrct, siiice 1960, the export sales of tobacco
and tobacco pi.ociucts biightcnccd our balance of payments' position
to the tune of more than $6 billion. And yett, our enemies would
destroy it.
In plain language, the tobacco industry has been from
the beginning -- and it is no:o -- a big fat bonus to this country...
in terms of international trade...in terms of excise taxes, Federal,
.state and local...and in terms of the economic vitality which tobacco
.farms, warehouses, wholesale and retail outlets, andfactories pro,--
vid'e to its workers, employers, growers, investors and to the entire
nation.
Tobacco people are tax producers, not tax .consuners. -
Tobacco people pay their own way. And thanks to their labor'and
enterprise, make it possible for a lot of other people who depend
on them to pay their own way, too.
It is time for some folks in Congress and the Adminis-
tration to start realizing the value ot our industry and to stop
trying to abolish it and put us on Welfare.
The mindless, relentless and unfair attack has been
launched a-uainst the tobacco price support program for the past
three years. Three times up, and three"timc,s down. But, in-this'
cruel game, unlike baseball, theside is not retired. Senator Ted
Moss 'and other anti-tobacco zealots are dedicated foes, and this
time they -may have been encouraged to keep trying becalAse "of the
support received from an Administration which admits' it wants to
end all farm price supports. -
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So, my friends, let me assure you that we_are in a
fight. ' And I say "we"' -ldvisedly. It' s not the "editorial we, "
or the "royal we" -or the used by the man who has atapeworm.
The ."we" I use today is used by people, who share a common destiny...
c- n -.:r, 1-.n ;+ + t~n ~ C~h ?"t~t7 C`C?:Illilullltv---l:armers.
warehousemen, dealers, suppliers, manufacturers, wholesalers ar1d-
retailers...as in Ben Franklin's admonition during the Revoluntionary
War when he said: "Gentlemen, if we all don't hang together, we
will all hang separately. " ~ ~
2iaiiufacturers alone can't fight and win. Growers alone
can`t fight anc3' win. N6S_tlier can warehousernen or distributors.
But together, as a united industry,
fair chance. 7.'ogetlrer, as a united inclu::try,
we have a bettr.r-than- . a~
aiid ~=
we have the weight

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reacll of large nuir,lbur:,. And today more th:;n ever before, we need
bo th the we i:g1i c and the reach o f: large ntutibcrs to make sure e our
reasoned andreasonab.le arcu;r,cnLs will be heard.
Let me repeat, we need both the wcig,ht of numbers and
the reach of numbers. And let me explain why.
In t-he past, our major battleground ' has been in Wash-
ington. Except for the farm price support front, that battle-
ground is relatively quiet.
But our enemies there are regrouping.
Despite the broadcast ban, despite.high~taxes, despite
tr:arnings on puckaget and in advertising, cigarette sales have .
increased. This fact makes our enemies very unhappy. The last
thing they can conceive is that people have rejected their agru-
ments, restrictions, and propaganda. The last thingthey can
accept is the freedom of choice that permits adult 1lmericGns the
right to continue to smoke if they choose despite the disapproval
of Big Brother.
Unable to make their health charges stick---probably due
to their und'er.lying failure to produce objective medical evid'ence---
and, therefore, unable to persuade the public on~ the basis of prc_-s
reports, publicity and propaganda----they have shifted their strategy
.and~their battleground.
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The new strategy is contained in a catch-phrase:- Mark
it well. It'is "passive smo}.irng." The new battleground' has moved
out of the Netion`s Capital to the Capitals of the fifty states of
the Union. That is why we need the ability to meet this new chal-
lenge in every statehouse in the country. That is why we need both
weight and reach. . .
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iii. ai. i.: :.. .. ~c ~: the f alr'n i'Cl~?n t}~c"at OI~ .P..
man ° s sr~io}:ing is ano ther mar.' s po'iI_ut-.ion... they say (?ealot-s )
'
is the time for the non-smo}:er to stand up for his rights and
a ban on smoking in public places. ~
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demand
. '"Passive smo)cing"' is rlot new. 11nti-smoker_s: have been
trying to sell it for years, with little success. That is until
Je ,se Steinfeld bought i.t---or somebody sold it to him---a:s a new
publicity girnmick. This is the same Surgeon General who said;
cigarette smo'.ing was a greater ccalth hiar_ard than air pollution,
auto:AUbile: accl.di:n{a, a-l:col-,ol addl-ctivn a nc?: hard drt;gs.

' Well, Jes, e Steinfel!d used it in a specch~ in JariuZry,
1.971. lie call~~ed' forr bi:ns on ~,.~:o?.ing in public places, because
evidence showed smol:ing was hiarmful to the non-smoker. As usual,
the Surgooa Gc.neral fai led to produce the evidence. Also, as
usual, the press let him got away with it.
Three months'later, at a Congressional hearing, he was
asked about a booklet his own agency had put out that flatly
contrada.cted his speech. "It cannot harm you" to breathe the
smoke from other people's cigarettes, said the HEW booklet. To
which, the Surgeon General simply admitted: "`7e j'ust do not have
enough information to make any categorical, statement other than
it is unpleasant."
For thre.e years he sat on a government study of tobacco
.smoke in air planes that found no health hazard to non-smoking
passengers. When confronted ~;ith this shocking revelation,, he
explained' it away as "bureaucratic inefficiency." Another
explanation might be "bureaucratic coverup." ;
Call it what you will, a new anti-smoking issue was born.
The literature was combed for bits and:pieces to.bolster the
new charge. Much of this material, I might observe, serves the
purposes of certain interests who wouldilike to see cigarette
.smo}.:~_ng take the b1;a*ne for the health hazard associated with air
-pollution. Indeed, there seems to be taking shape an~unholy alliance of the anti-smokers and
other interests.
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I sincerely hope that I am %7rong. For as Senator Cook
of Kentucky so rightly declared: "Blaming air pollution on tobacco
is like blaming ,the Johnsto:,:n flood on a leaky faucet in Altoona,
Pa." And, anyone so misguided as to perpetuate such~ a cruel hoax
will impeach his own credibility and'insult the intelligence of the
Congress and i-,he -1~.~nerican people. Let me also say, here and now,
he will have our iinaustry to deal. with. `
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til: ~111i ~vi.v ; i i': C:!'C' ~...~ ~^.^^t, ~?';~
the new strategy too}L root like a weed.
Actions see?cing to r_estrict or prohibit smoking on
airplanes and buses were initiated before the Interstate Commerce
Commission, the Federal 1lviation 11d:nir.istra{:ion and the civil
Aer_onautics Board. Siniilur bills restricting smoking in interstate
transpor. tation N,rcre introduced in Congress. This year, at least 36
bill; in 22 state legislatures considered measures regarding smoking
7.n publtc places or canveyances,.

` So far there hlas.bcen no demonstration madc to any of:-
the se bo:~'i:es t*hZit st-,iol~~.inq is a he ~31th hial az d for non-smoker_ s.
For instance, the California Public litilities. Conunission refused
to bnn s-moking on inLercity buses because i t found no evidence
that the average non-s;no:~.er's health is impaired by exposure to
cigarette smoke. The California Commissionifurther observed
that, "the smoker is usually less of a~bother than the alcoholic,
the one who che::,s tobacco or garlic, or the compulsive ta1ker. "
Air travelers, the government ruled, must be segregated
for mutual co;nfort---but found no evidence of health hazard. Neither'
did the ICC in its similar ruling regarding interstate buses.
But there has been a break in the dike.
- Last month the Arizona State Legislature passed an
anti-smoking bill. The bill declares smoking to be a "public
nuisance" and'prohibits smoking in elevators,-theaters, libraries,
art galleries, museums, concert halls, and'' buses --- places used
by the public and some of which are owned;and:operated privately.
--John F.'Banzhaf, III, of an crganization called "Action
on Smoking*and HealtH"issued a press release oxpressing the hope
that the Arizona law "can: become a model law to be passed bv the
.legislatu-es of all states." He indicated'~ that at least twelve _
other states nov, have bills before them inco.rporating some or all"
of the Arizona provisions and that there may be similar action taken
in other states. That is the shape of things to come.
- . Now let me sendia- chill down. your spine.- Let me give you
an inkling of the, dirty tricks and unfair tactics that will be used~.
Here is the g,ame plan outlined at a recent meeting of a large
- natior.al voluntary health organization, the F.m,erican Lurig Association,
one that exists on public contributions and enjoys tax-exe-rnpt status.
~ mt'. r_ n V0. ... , r ~~
r... il r11v../1~.~c VL ~/~~L\I ~Y1:J S.aVa~illl./.1VLJ 1~C.yJ
emphasized in .. "he.,7 to do it" presentation on "Cruating a
constituency---rights of nonsmokers." ;
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new
2. Efforts irere described in getting local governillents
to ban snaoking in the public auditoriums, and a continuing campaign
against smoking in all public places. Representatives of some 30
state groups were told how to conduct similar campa'i.gns in theirr
are c'., s .
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3. The auclLCn:,,^- v'a',^_, urged to usc stud.grnt~ to I11z1,
:e,

carry anc; d'is tr:~hutc a}~prd~ariatc s igi.s and po, tcrc s, to have
letter-s' :1z itt:en~ to the cdi.t:o1: s cf to see)c the
etC_Ci".10;: of :'Cn~.2;:0';e?"r to c7O\'"l'?J.^,`.( 14 C)ifJ CG'` , to alGrt the
press in advaince of activiti.es ("Lditors lovc this kind of
thing" they were told) , to write "strong" letters to officials
on the rights of nonsmokzer:s, to ban smoking in their own
offices, to have local physicians ban smoking in their waiting
rooms, and so on. .
4. A nun~Der of items were distributed: , a sample
"resolution for creature comfort" for use by clubs, service
groups, etc.; no-smoking signs; information sources on "rights
of nonsmolcers ° and a fact sheet on "tobacco smoke emi;ssions."
5. Listeners were cautioned'"to use a fact sheet to
substantiate all the wild claims you`re going to make. Smokers
will `:thin?, they are wild', anyway. "
_This battle plan~ is almost as shocking as the disclosures
that are coming out of Wash ington thes e d ays . It too smacks of
dirty tricks, covert operations, and an utter disregard of personal
rights.
_ Think a"bout it; my friends. Here is a group of respectable,
: law-abiding, public spirited people who are coldly calculating ways
-to impose seconr~-class status on~ their 'fellc,-: citizens who enjol~ a
good smoke. They would segregate them in public places, relegate
theinto the back of the bus, discriminate against themion the job,
and even go so far as to vote against them in public ele(~tions. _
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Just because they were smokers.
As a nation we have guaranteed all citizens the- right to
life, liberty, and the pursuit of happiness. The Congress has by law
.abolishYd discrimination based oi~~, race, religi.on and national origin.
No:7, it appears,. we may have to fi ght to insure that the
Cc-4-- t~,±;
^n ~nd thn 14f h Amend-
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ment. apply to the 50 million men-and women who happen to enjoy a
cigzrette now and then.
Ever since January, 19G4 when tlie 7ldvisory Co:amittee to
the Surgeon Ceneral indicted ---but never proved ---smo]:ingas a health
hazard, Anleric::n smokers have been madie the target of a behavior con-
t ro]~: campaign. First, through fear arousi.ng prot~ac~anda, later through
higher ta::es, and most recently, through liiaits on his freedom of
` choi.ce and tllre_ats of social ostracism.

TTic smoi,crs have borne al1 - thc::,(-- an:,iety.-p)-oduci.nc~
efforts with long-suffering sz7:ence. Tnd n;ore, he has paid' for
the barrage of se].f-righteocts uplift, he l.ras ptiid' for the
insult on his intelligcncc, he has paid to have his own children
turned against himand fri.ghtene:d in school.
I will tell you~ just how much he has paid. In the
nine years since anti-smoking~ became an official HEiI party line,
1lmerican smokers have paid more than $36 billion in Federal and
state excise taxes on tobacco products. That means, the smokers
paid $36 billion more than the non-smokers.
So we can well talk about the tax effect of smoking on
the non-smoker. We can discuss the issue of "passive taxation" as
well as "passive smoking. " We can do our talking with the weight
and'~reach of numbers---in every place that the antismokers raise
their heads throughout the land. ' We can also do our talking with
the confidence of people who have earned and paid for their right
to speak out---as productive merbers of society, whether growers,
manufacturers, workers, warehousemen , distributors, or as over-
burdened, overtaxed smo};ers.
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