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REMARKS OF HORACE R. KORNEGAY SOUTH CAROLINA TOBACCO WAREHOUSE ASSOCIATION, INC. MYRTLE BEACH, SOUTH CAROLINA 730612

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a !t ~ ~ ' Remarks of 1Io1i ace It. Kornegay South Carolina Tobacco VTDr.cliou:,c 1lssoc.i•ation, 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 Q O C~'1 r tainly not thousands. O . . • .W. 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, the•side 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. - 1jn051030 86~ 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 a•tapeworm. 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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.. I ! 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. , ., . { -i . ..., 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. . . ^ . . . . . J ; . - . '. 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. ~ I noV+' 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 hia•r_ard than air pollution, auto:AUbile: accl.di:n{a, a-l:col-,ol addl-ctivn a nc?: hard drt;gs.
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' 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. r-+ 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. ` '. 1 ~ • 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,.
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` 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." ; , new 2. Efforts i•rere 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 . . -J 3. The auclLCn:,,^- v'a',^_, urged to usc stud.grnt~ to I11z1, :e,
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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 :'C„n~.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. _ ' 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- L+L+Y-Le2L -- 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.
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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. . .- . ., ;., . r.,

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