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288 CIGARETTE LABELING AND ADVERTISING-1988 military installation of the United States, including, but. not limited to, radio, television, and cinema commercials of all types, newspaper and maga- zine advertisements, billboards, posters and signs, subway and rail or bus car cards, automobile and truck decals, posters and signs, calendars, pam- phiets, handpills, matchbook advertising, and point-of-sale display material of all types; (b) Includes any written material or article or excerpt therefrom, not otllerwise advertising, when used for promotional purposes; (c) Includes labeling, Ilameiy, the display of written, printed, or graphic matter upon any portion of the package, carton, or other container In which cig_ arettes are packaged or shipped by the manufacturer; but (d) Does not include the entertainment portion of any television or radio program. 9r:c. 2. e3igarette" means any roll of tobacco wrapped In paper or In any substance other than tobacco. Rrx. 3. "Representation" means any statement, reference, or claim, express or implied, direct or indirect, whether in oral, written, printed or graphic form, or In any combination of such forms. AaTlcas II THE CODE ADMINISTRATOR $ForloN 1. There shall be a code administrator who shall be a person of rec- ognised independence, integrity, and intellectual achievement to the end that decision by him shall command public confidence and respect. The admin- ietrator shall have all of the powers and authority necessary and proper to enable him to discharge effectively the responsibilities entrusted to him by this code. Sea 2. The administrator shall have complete and final authority to de- termine whether cigarette advertising compliee with the standards of thia code and to enforce this code In all other respects. $eo. 3. The administrator shall appoint a staff adequate and competent to assist sist him in discharging his duties. S_ 60. 4. Neither the administrator nor any member of his staff shali be an officer, director, employee, or stockholder of any manufacturer of tobacco products, nor shall any such person have any financial interest 1n the business of any sucb manufacturer. Ssc. 5. The administrator Is authorised to convene scientific advisory panels to enable him to carry out his duties. Persons selected for such panels shall be of indelxndence, integrity, and competence In their particular areas of scientific discipline. In seiecting such persons, the administrator may consult with appropriate governmental and private agencies such as the U.S. Department of Health, Education, and Welfare; National Academy of 8ciences; National Research Council; American Medical Association; Scientific Advisory Board of the Council for Tobacco Research-U.S.A.; medical and scientific societies; colleges and unlversities • and nonprofit research inst[tutes. Bso. 6. The administrator shall by regulation establish procedures for the administration and enforcement of this code including, without limitation, procedure for- ;(a) The submission to him of proposed cigarette advertising which, to-r gether with Uny supporting data or docmnents, shall be kept confidential, except as otherwise provided In article IV, section 4, of this code are as agreed to by the submitting party , (b) The submission of protests by parties subject to this code concerning any determination by him ; (c) Hearings In connection with all submissions and protests; and (d) Reconsideration by him of any of his determinations. AsTral.s III ADVERTISING CLEARANCE SacTIoN 1. No cigarette advertising shall be used unless such advertising sball first have been submitt.ed to the administrator and determined by him to be In compliance with the standards of this code; provided that by regulation promul- gat.ed by the administrator specified advertising may be excepted from the requirement of such submission but not from the requirement of compliance with the standards of this code. CIGARETTE LABELING AND ADVERTISING-1965 289 AaTIOLic IV ADVERTISING STANDARDS SECTION 1. All cigarette advertising and promotional activities shall be subject to the following: (a) Cigarette advertising shall not appear- (i) On television and radio programs, or In publications, directed pri-o anarily to ixersons under 21 years of age; (ii) In_ spot announcements during any program break-tn, or during the program break immediately preceding or following, a television or radio progriam directed primarily to persons under 21 years of age ; (iii) In school, college, or university media (including athletic, theatrical, and other programs) ; ( iv ) In coalic books, or comic supplements to newspapers. (b_ ) tiample cigarettes shall not be distributed -to persons under 21 years of age. (c) No Kample cigarettes shall be distributed or promotional efforts con- ducted on school, college, or university campuses, or In their facilities, or In fraternity or sorority houses. ,(d) Cigarette advertising shall not represent that cigarette smoking is essen- tial to social prominence, distinction, success, or sexual attraction. (e) Natnral (K•rsons depicted as smokers In cigarette advertising shall be at least 25 years of age and Shall not be dressed or otherwise made to appear -to be less than 25 years of age. 1'ictitious persons so depicted in the form of draw- ingy, sketches, or any other manner shall appear to be at least 25 years of age In dress and otherwise. (f) Cigarette advertising may use attractive, healthy looking models, or il- luatrations or drawings of persons who appear to be attractive and healthy, provided that there is no suggestion that their attractive appearance or good health is due to cigarette smoking. (g) No cigarette advertising shall contain a picture or an illustration of a person smoking In an exaggerated manner. (h) Cigarette advertising shall not depict as a smoker any person well known as being, or having been, an athlete. ( i) Cigarette advertising shall not depict as a smoker any person participating in, vor obviously having just participated In, physical activity requiring stamina or athletic conditioning beyond that of normal recreation. (j) Testimoniats from athletes or celebrities in the entertainment world, or testimonialy from other lersons who, in the judgment of the administrator, would have special appeal to the persons under 21 years of age, shall not be used In cigarette advertising. SECcrION 2. No cigarette advertising which makes a representation with respect to health shall be used unless-- (a) The administrator ehall have determined that such representation is significant in terms of health and te based on adequate relevant and valid scientific data; or (b) If the administrator shall have determined it to be appropriate, a disclaimer as to significance in terms of health shall be set forth in such advertising in substance and form satisfactory to the administrator; or (c) The administrator shall have determined that the representation with respect to health In such advertising is not material. RF.cTION 3. The inclubion In cigarette advertising of reference to the presence or absence of a fllter, or the description or depiction of a filter, shall not be deeuicd a rePresenlation with respect to health unless the advertising including such reference, description or depiction, shall be determined by the administra- tor to constitute, through omission or inclusion, a representation with respect to health. If the administrntor ehaH have determined that such advertising constitutes a representation with respect to health, the provisions of section 2 of this article shall apply. RF:crlox 4. No cigarette advertising shall be used which refers to the removal or the reduction of any ingredient in the mainstream smoke of a cigarette, except that it shall be permissible to make a representation as to the quantity of an ingredient present in the mainstream amoke or as to the removal In toto of an ingredient from the mainstream smoke, or as to the absence of an ingredient normally present In the mainstream smoke, if- (n) The administrator shall have determined that such representation Ez~969?'OOt

290 CIGARETTE LABELING AND ADVERTISING--1985 is aignificant in terms of health and is based on adequate relevant and valid acientiHc data ; or (b) A diaclaimer as to signi6cance in terms of health shall be set forth in such advertising in substance and form satisfactory to the administrator; or (c) The administrator shall have determined that a disclaimer is nn- necessary for the reason that the repnwentatiim in such odvertisiug has no health Implication or that such implication is not material; and (d) The quantity of such Ingredient is determined and expressed in ac- cordance with uniform standards adopted by the administrator for Ineasur- ing the quantity of the ingredient present in the mainstream smoke, provided that., until sueh uniforiu standard is so adopted, the quantity of such in- gredieut may be determined and expreseed in accordance with any recol,lizt.d ticientitically valid method disclosed to the administrator without any re- quirement of confidential treatment. .qECTION b.Any advertising determined by the administrator to be iu con- formity with the crode may include the following legend: ''This advertising (label) conforms to the standards of the Cigarette Advertising Code." ARTICLE V PROCEDURES IN EVENT OF VIOLATION OF CODE SECTION 1. Any person, firm, or corporation subject to this code, who violates any provision of this code, ahall, in the discretion of the aduiinistrator with resilect to eaeh such violation, pay to the office of the atlniiniatrator as liquidated dumage5, and not as a penalty, a sum, not to exceed $100,000, as determined by the administrator after consideration by hhn of all relevant facts. The admiu- lstrator shall extablish regulations for the determination of such violation a[ul for the assessment and payment of such damages. No sanction shall be imposed without affording a hearing to the alleged violator. Ulxm written request from the administrator, an alleged violator of the code shall promptly deliver to the administrator any material and diicunlenta in its phs.yer4siou which are relevant and material to a determination by the administrator as to whether the code has been violated. SEOTION. 2. Nothing herein contained shall be construed to give any hersou, firm, or corporation, other than the administrator, any cause of action. SECTION 3. In the event of a violation of thiA code, tho administrator in his discretion may make public the fact of such violation in such manner as he may deem appropriate. The CiiAIRMnx. Do you know if Governor Meyner plans to come down and testify? Mr, IiAMM. 'the latest I heard- Mr. GttAY. This is Mr. Ratnm, general counsel of our company. The CHAIRMAN. 1 begyour pardoll ? Mr. GnAr. Mr. Ramm, who is general counsel of the Reynolds To- _ _ bacco Co., and I will turn Itt over to him. The CllnrxMAN. Identify yourself. Dir. RAaTrz. My name is IT. H. Ramm, vice president and general counsel of It. J. Reynolds Tobacco Co. Mr. Chairman, the latest information that I had wits the the Gover- nor would be glad to come if the committee desired his appea.rance here. IIe did not think it would be proper for him to conlo wltliout a request. The CHAIRMAN. The committee alway s leaves it to the discretion of the people who may have an interest in legislation whether or not they should come. We do not require anybody to come before this cont- mlttee on legislation. There n~ay be some other (;ircnnlstances untier which we require pe.ople to come but we do not, as a matter of polirv, do it in the case of legislation. I should think, however, a man with CIGARETTE LABELING AND ADVERTISING-19G5 291 the tremendous responsibility that he has, and in view of the fact that tlle code has only recently been adopted-what was the date of it? Mr. RAMM. It went into effect ofltcittlly on the 1st of this year. The CI[AluMAN. It would at)pea.r to me, speaking just as one indi- vidual, that without complete information on the self-regulatory pro-f gr~tm that is proposed the committee record will be incomplete. We llall the same kind of a situation in the television code of 195211 be- lieve. Mr. RAMDL Mr. Chairman, if I may say so- '1'he CHAIRMAN. If anyone with far-reaching responsibilities as we have here and with a program that has been proposed suc1l as this, or does not feel his testimony should be in the record so that we mi},*llt have the benefit of it, I am not too sure what can be expected if sueli a program and whether it should be considered to be too effective. Mr. RAMM. If I may say so, Mr. Chairman, I will convey these re- marks to hiin, and I am quite sure lIe will be happy to attend: The Cltn.ntMAN. Mr. t~rray, I am not altogether sure just what you have recommended, if you will pardon me for putting it this way. I suppose I have a right to be a little fuzzy right now in mind. You say, if there is anything done, you want the Congress to do it but you are against the G°ongress doing anything. Now, we are facing the situation here where the hederaT Trade Commission has already taken action. The Chairntan of the Commission has made it pretty clear to tlm committee in the last few days that they intend to go ahead. 1 wonder if I would be stating your position correctly that you would prefer for the Congress to consider this Inatter and to prohibit the Federal Trade Commission frotn doing oing what it is attempting to do. As an alternative, if that is not done, being faced with the proposition of the Federal Trade Commission going ahead, then you would want. the Congress to take some action requiring a specific warning on the label but not in advertisements? Air. GRAY. I am sorry; I did not, Mr. Chairman, make myself clear in my thinking on this. The CHAIRMAN. I think you have made yourself clear as to what yon would like to be done. But to me, we llave a paradox. '1'hat is whslt has me a little confused. Mr. GRAY. I think it would be only natural, sir, for me to-may I put it this way : If we are faced with the question not of whether, but of which, is this getting into the nrea that you are talking of here now, sir? If the question is not whether we are to have a labeling enact- ment or tracle rule reh ilation put on us, but rather that if it is going to be required, then I have said, sir, and I repeat c This is a matter, in my opinion, to be handled by the Congress and the Congress alone and in handling the matter, Congress should make it clear that its action preempts the field, that t•he label required should be spelled out by the Congress as well as its location and size and so forth, on the packages upon which tlie statute would require the label to be carried. Now, I am not, trying to confuse you, slr; this is my p(>t•sit.ion. This is not n t ime to tell fnlu)y st.ories-I just thought of one which would be applicable. The CIiAIRMAN. We will let you go off the record if it will give us a little levity at this time. [Laughter.] (Discussion off the record.) Dzs9ss~ ooZ

292 CIGARETTE LABELING AND ADVERTISING-198b hlr. GRAY. It seems fairly obvious, sir, I am back with you now, if I tuny be, that there is great pressure froni mn.nyareas for some kind of lalwel to be placed on packages of ci;arettes being of a c:wtiona.ry notice in the area of possible injury to the health of some people. .1a~uming that this is something has to be or is roing to be, now I will say that I greatly prefer-and I am certain it. is a position shared by t.ho other members of our industrv-I say that this is such a serious matder that it shoulcl be handled by the Con~,•Iess, determined hy the (bu;-rc:4s, spelled out, by the Congress, and preemlited from all ollier people by t,he Congress. Is that un answer, sir, that I may make to you? Does that clarify the sit.uation? The ('tlAHtrtAN. Well, I would get from that the implication that being, faceal witlt the situation of the aunouncentent of the Chairman of the Federal Trade Commission, •you would recommend that the cotn- nlittec, tl.y to work out so,ile kind of legislative approach in order to clear t.he matter up. ALr. Ginr. This is correct, sir. 'f he CHAIRMA N. Mr. Rtogers ? .llr. Iioi:ERS_ of Texas. Are you a lawyer? ~ir. GRAY. No, sir. DL•. IiooERs of Texas. The reason I asked that is this: In reading Yotu• statement and in listening to it, it occurre.cl to me that probably in view of the situation that has developed, though you did not antici- pate that the subject would ever come up, in view of what has oc- curred, you should probably anticipate the possible "alligator in the batLtttl;" if we can refer to it that way insofar as State governments or municipalities are coneerned in the future. As I uuclcrstttind Alr. Rand I)ixttn's position, it is this: That although lie is moving into the area of adopting trade rule regulations, which to me is legislating but which to him is not, that whatever he does in this respect, does not invoke the doctrine of preemption insofar as other agencies of the Gov- ermuent are concerned in making rules and regttlatic;ns. Ilence it would occur to Ine that if you take the position that no statute should be passed on this, you can find yourself in a situation of riinning tt very great risk of having souie of tliese things happen to you that, you do not, want to 1Iappen. 1Lr. GR.+Y. This, sir, I had lioped I had covered in the third recom nteud:>,tion on pages 16 and 17. That the statute should make it spe- cilir, .ve believe, thst. section 4, which deals with 1ireetnpt,ion, section 4 of S. 559, which deals with preemption, should be atnendcxl by the addition of a sentence which would make clear that no Federal, S"tate, or ]tx~al authority may impose a warning in advertising for cigarettes pacJ:agetil in confiormit.y with the labeling provisions of the act. Earlier I asked-I suggested that the statute, if written, preempt the field so far :ts labeling of any kind either on packages or advertts- iug is concerned, and the matter should be handled entirely by the Cont!ress, mr. ItalERS of Texas. But, as I understand you, you are asking-you a t e sa.y iii;; that no st;tt ute needs to be passed :in~l that you are in oppo- sition to the bills that have been offered requiring a labeling on the package. NIl'. I\E7RIrEG.\Y. Would the gentleman yleld ? i•Ir. hciutins of Texas. Yes; I would bellappy to. CIGARETTE LABELING AND ADVERTISING-1985 293 Mr, KoxNEOAr. I draw the attention of the gentleman to page 2: We do not Lelieve that any governmental action is necessarv or called for with r"xr:t to the cigarette advertising or labeling. I might ]'ust. sn~•gest. Mr. Gray means there any type of Government action by tlte FT~, C;onbress, or anybody else rather than anticipating Congress to act.. Mr. RoaERS of Texas. What I am going back to is the point raised by the chairinan is the situation the Congress is faced with at the present time is that there has been a statement by the Federal Trade Commis_sioil announcement that they intend to move into this field. If they do not move into this field or if they do move into this field, it occuts to me that the municipal corporations and the States could move in, whether either of these Federal bodies moved in. IIence it occurs to me, 11Ir. Gray, that to put it very bluntly, the Congress of the United States is being challenged insofar as their le;islative lwwers are concerned, and that is one of the very deep issues tiutt I have in nund in introducing legislation of this kind;tnd in trying to see that itt is brought into bearing. I do not smoke. It, does not make any difference to me one way or the other, I mean. I just wanted to clear that point, that I think we have here a situation that goes much deeper than the question of ec,clnomics or actually of health. Mr. GttAY. Do I understand you correctly, sir, that the challenge is from these other agencies? Dir. RocElts of Texas. Y es, sir. So I am simply pointing out, :1Ir. Gray, that I think it would be to the interest of everyone-and I am not talking about cigarette smokers or cigarette manufncturers-but I think it would be to the interest of every citizen of the United States that this matter be cleared up and this challenge to the legislative powers of the Congress, however you put it, ought to be answered and answered at this time. Tlult is all I ltave. T1lank you, Mr. Gray. Mr. GRAY. Thank you indeed, sir. The CHAIRMAN. Mr. Younger. Mr. YouxGLR. Thank you, Mr. Chairman. Mr. Gray, in view of the fact we are confronted with an nction that has already been taken and the date set, is it your idea that you might conth+st the action of Congress in the court better than you could cotitest the action of the Federal Trade Commission? Mr. GaAY. I don't believe I have been in that area at all, sir. I have no ideas of doing that. Mr. YOUNGER. You never discussed in your organization whether or not you woulcl contest the action if Congress did nothing and that you would allow the Federal Traule Comnlission order to stand and not go iut,o court d Mr. (i•RAY. I misunderstood your question sir. I thought you asked me had we planned to contest an action of Loitf;ress and it hael me off base a bit. I have already stated if the Federal Trade Commission does putt into etPect this trade regulation rule we will oppose it and oplwse it. in the courts, yes. sir. I wasc'onfuseaasto.vhttt,youasked. 11ir. YouNctt:it. You ha~•en't decided whether you would oppose the cout;ress ioual action i f(;onsyress acts ? szsss9zoot

294 CIGARETTE LABELING AND ADVERTI$ING-198b 11ir. GRAY. I have not heard it even discussed, sir. Mr. Youxcl:R. I thought maybe that in view of the, some of the Supreme Court. actions against Congress that you might feel that you would stand a better cllunce in the Supreme Court against (.',on- gress than you would against the Federal Trade Couunission ? Mr. (~RAY. That honestly is one that never has occurred to me. Mr. YouNar:R. Thank you, Mr. Chairman. `Phe CILURALAN. Mr. z17lTnntn? Mr. JAxMnrr. Mr. Gray, my concern is particularly in the field of the youtll of the country and the need for protection and education in that. field sis to all aspects of smoking when they come to the time of dec.idinl; whether tostartsmoking ornot. I wn particularly interested in that part of your statement where you s;Iy that tobacco colrLhanies lulve at;reed to adhere to the cigarette tldvertlsul=; code. In lookiilh over t,he code it sets out under adver- tising stsuldards under article 4, ciharette advertising shall not, appear on television and radio programs or in publications directed primarily to persons under 21,years of ~Ige. I{ave Governor 1lfeyner and others who have the responsibility of enforcing t he code, have they as yet come up with any list of programs that would fit thnt category . Mr. GR..Y. I think, 5ir, that the Governor's actions so far, and I believe his plans in the future, are to review, to look at, to judge, to assess each program, each advertisement each promotional advertising of eacli coiupany prior to t.he time it is ailowed to be printed or shown, and that, tht.rv is no, as far its I know, there are no broa<1 bases or specilications that govern this. You know, of course, that certain programs-I am sorry I don't look at, the younger ones very much, Lassie, for example, wouid not be a proper, in my opinion, I don'tt know the Governor's opinion, I have never dlscassect it with him, a proper program for us to sponsor. I think each one must be judged as to its content and so forth, and where it seems to be directed, what type of audience it seems to be directed toward. Mr. JAn-Mnrr. One great di0iculty I can see in trying to enforce an effective standard in t lat field, particularly with these words "directed primarily to persons under 21 years of age" being, would be, in so classifyinh programs on televislon and radio. I know Chairman Dixon at page 9 of his statement referred specificall to one program, the "Beverly IIlllblllies," as havin an audience ochildren 2 to 12 years of a1;e ec~ual to 12.6 million or aut 28.8 percent of the children of the United States of that age group. And yet with reference to that program and nearly every other, the westerns, the variety shows, I would think a very clear-cut argument could be made that the program itself has a widespread audience of all ages, and does not come under the prohibition of the code because it is not directed primarily to persons under 21 years of a e. I would think, to put it another way, that a very~imited number of programs would come within the definition of the code. Mr. GRAY. I have not. seen, I suppose it is available, Mr. Jarman, the infornultion available of breakdowns of audiences by all the shows on television, and I guess I should not make uneducated guesses here, should I, this is not t]Ie. place for that. But when an advertiser looks at a pilot film, perhaps in December or January, of a show that is pro- szsssszooi CIGARETTE LABELING AND ADVERTI$INQ-198ti 295 posed to go on the air in September, and he makes his judgment as to whether this is something that he thinks will be a good show, and this is the judgment which he has to make, and he contracts for a portion or all of that, show, he is taking a chance on a lot of things as to what will eventually turn out. 'I'lIe program to which you refer, it happens to be one of ours, and this in indicative of how infallible a man's knowledge-judg- me.nt-can be. When I found out that we had bought this show and I saw the pilot, I was not a very happy man-not from the reasons you ascribe to it but because I thought it was a terrible show. I just thought it was awful, and it went on that year as you may know turned out to be the No. 1 show. There isn't any slide rule to get at it, I am sure. Mr. JARMAN. Just one other question at this time, Mr. Gray. Since the adoption of the code by the tobacco companies has there been time enouah for the code to have any effect on the television pro- grammgof the companies? Mr. (xRAY. If by that you mean have any of us gotten off any shows as a result of this, no. I think, here may I speak for my own com- pany, I don't know about the other companies-I know the intent- I know their honor and int.egrity. I don't know the actual mechanics about how they go about these things. Naturally all of us knew this code was coming. We were hopeful it could be gotten into operation as soon as possible and I know we and I believe my competitors3 each were lookln- all through last year at• our prorrnlns, at our projections and our I~ans with the code in mind and, as a result of t}Iat, prior to its implementation a number of changes in our approaches toward advertising had already taken place. Further, if I could say, in the area of our participation in this code effort., this is a serious and wholehearted attem~pt by the industry and by each individual member of the industry, to do this ,'ob right. This is our intent and we plan to continue in that-on that basis. Mr. .JARMAN. I said a final question a moment ago, this will be the final question for me, sir: Do you know whether Governor M6yner in administering the code has in the field of advertising enforced this provision as to a television or radio program directed primarily tA-persons under 21 years of age? Iias there been occasion since the adoption of the code for him to on force the code_ in that area ? Mr. GRAY. I can speak to only one company here, sir. Perhaps the way- we communicate with the Administrator might be some- what clarifying in this situation. I nm the head of one company. I have shaken hands with the Administrator one time so I could put a name with a face. I have made no visits to his office, he none to mine. This is handled through the lawyers and through the adver- tisingmanaqers. So far as we are concerned we have had many ads which we sub- mit,ted for approval, which after consultation we,decided we wanted to make changes ourselves. We have not been told that I know of "You shall get x program off the air," or "Don't buy something that is contemplated." It may have occurred. I have no direct knowl- edge of it. I believe it would have been reported to me but I have .,~

296 CIGARETTE LABELING AND ADVERTISING-196b no such report. I think it is better for the heads of companies not to be yakking at the Governor's heelseveryday. Mr. J ARMAN. Thank you. Air. GRAY. Tllank ypou, sir. The CIIAIRMAN. E1r. Calter g Mr. CARTER. Certainly I think the tobacco industry is to be con- gratulated for the money which they have given to many scientists throughout our country to conduct research regarding tobacco smok- ing and health. it amounts to many millions of dollars. I think that it should be applauded for that. Mr. GRAY. i hank you, sir. The CuAIRMAN. lilr, I;;orneg ay. l1ir, KoeNEUAY. Th.~nk you, ltir. Chairman. First I would like to give welcome to my fellow North Carolinian here tocIa,y. I pelsonally thank you very much, Mr. Gray, for coming and for the fine statement which you presented to the committee. I think you have very ably pointed out the facts to the committee that this is a rather bi~;, broaa, and serious matter that we have under con- sideration hem and that it involves a good deal of people, not just in North Carolina-but throughout the country, from the standpoint of employment, from the standpoint of jobs, from the standpoint of taxes going into the Federal, Slat.e, and local treasuries. In light of this, certamly the Congress should exercise every ounce of -,%•isdom it has in approaching the matter. Now,llir. Gray, I would like to ask you severalqu~estions. First, I would like for you to amplify a little bit on the amount of money and the effort that the tobacco industry itself has put into the area of research insofar as cignrettes and smoking are concerned. Mr. GRAY. To amplify on this, sir? Mr. KORNEGAY. Yes. You made reference to it here in your statement concerning the council. Mr. GRAY. The Council for Tobacco Research which is supported by the manufacturers, most of the funds come from the manu- _ facturers. Mr. KoRxF.aAY. The funds that are used by the council come ex- clusively from manufacturers; do they notI l1ir. GRAY. Practically entirely, sir; yes, sir. I know of no other rontributions of any size that it has received. That is, as you know or as has been stated given to the council for use by or awards being made by the scientifie advisory board to the researchers, scientists, qnalified medical and scient.ific researchers throuMhoutt the country. 7'hey are free to publish what they find, are requested to publish what they find. There are no strings on these grants, there have not been any from ttle beginn;ng. I do not• know of any time when the scientific advisory board has been turned down on arequest for funds from this group. In addition to that I have mentioned the gn•ant, by the six major cigarette companies of $10 million to the TJducation and Research Fomndation of the American Medical Association. This was without strlllas. '1dditionnlly, many colnpaLmes, I snppose all of them, have over the p;l-t, few ,ye:u-s made in(lividual grants Io Sloa.n-Ketterint;, Danion 4zsssszooi CIGARETTE LABELING AND ADVERTISING--196b 297 Runyon Cancer Fund, and the specific projects that may be presented to these companies for research into this field. These are beyond the figures I have mentioned. Several of us, again perhaps all, have continuously given moneys to medical schools - for r research and for medical education. I do not have any total figures on this. It goes well into many millions of dollars more than we have talked about this morning. We feel this is proper, a proper use, of such moneys as we have in that area. Mr. KoRNEGAY. In addition to the money that you described going to actual research on tobacco programs, what other philanthropies, other areas of support of education, and cultural life has the tobacco indu5try participated in over the past years$ Mr. GRAY. Sir, getting into that in detailed fashion would take quite a lon~,• time. The various companies each individually are, have been for years, I think generous, proper in their contributions to education at, tlle university, at the college level. It is difficult for me to talk about all the companies because I am not as familiar with w1lat they do as I am with our own. If I anI not hurting anybody's feelings by talking about Reynolds a little bit and I will include them l>.y reference, there are just so many things that you can and do do. The opportunities are greo-tit. For example, in our own State, Mr. Kornegay, we have a joint col- lege appeal, as you know, for church-related colleges each year. This is a combined effort, I believe it is 22 colleges-24 colleges now-to which we, and I think the other tobacco companies, in some relation- ship to the activities in the State, give money each year. I believe our contribution for the past 3 or 4 years has been a hundred thousand dollars a year. This doesn't seem like much, but in these-in these halls but in North Carolina it is quite a few dollars.. Dir. KORNF.(3AY. Let me pinpoint two or three points, Mr. Gray. No. 1, the Reynolds family has endowed Wake Forest College, is that correct, sir? Certainly assisted in it. Mr. GRAY. A large portion of the endownment of Wake Forest College calne from the Reynolds famil~. Mr. lfoeNEa:~Y. Came €rom the family. Mr. GRAY. This is right, from the family. 11:r. I{o>;xrxsAY. The Wake Forest medical school which up to 1940 I believe was a 2-year medical school is now honored by having your name, the Bowman Gray School of Medicine, is that right, sir? :1Zr. GRAY. That was named for my father. D'Ir. hoRNEGa,Y. Yes, sir; it is now certainly one of the finer medical schools in the conntry. I will direct your attention to Duke $niver-y sity which was endoned b another company but still a tobacco_ com- pan,y; is that notright, sir~ Mr. GRAY. That is correct, sir, and has been supported by more than one company since then. Mr, KonxeaAY. Yes, sir. Mr. GRnY. More t han one company. Dir. KoRNEGAY. The University of North Carolina gets a consider- able ptimount. of inoiiey f ro]n the toll>tu,co companies. Mr. GRAY. Thore nre rraits being made all the time from manu- facturers to the North Carolina State College and its extension work 48-824-6b-20 . ~„ „ i

298 CIGARETTE LABELING AND ADVERTISING-1985 that they are now doing. I am talking all the way about North Carolina, and I am trying to figure out something we do in Virginia. We do give something to the Virginia Association of Church Colleges, too. There are just many of these. Mr. KoiiNFA)AY. My point was that for nearly over a week now we have heard people talking about tobacco and some of the sins they contend it is guilty of, and I thought it was time maybe to bring out some of the very fine things the tobacco companies have done. I want to thank you again, sir, for coming up and being with us today. Mr. GsAY. Thank you, sir. Mr. IioeNF,oAY. That is all, Mr. Chairman. 'I'he CIinniMAN. Air. Callaway. Mr. CALLAWAY. Mr. Gray, I want to join Mr. Kornegay in pointing out some of the notable contributions of the tobacco industry in Geor- gia. It is agricultural more than connmercial. I would like to go back to the point Mr. Jarman was making, and this is the problem of our youth. I think there are a great-many people in this country who are convinced and extremely worried be- cause_ they believe genuinely that tobacco is a serious hazard or there may be a serious hazard in smoking tobacco. The people I am talk- ing about are not so concerned about adults. Adults can read the record, they can read the Surgeon General's report. They can do- cide for themselves if they want to take this risk they can evaluate it. Most people are worried more about their children. Certainly the best way to solve this is with a voluntary code. But it seems to me this code may not go far enough for people who are concerned about their children. My children just love the_ Camel sign and it seems to m~-and I would like to ask this in all fairness, because I would like your reaction-how can you as a tobacco industry take any position except the position you have got to get the youth of today smoking tomorrow, and no matter what this code says and no matter what you do, how can you do anything except see to it that a large majority of today's children smoke tobacco. It seems to me that this is your obli~~a.tion as a businessman running the R. J. Reynolds Tobacco Co. IHow can you advertise without showing cigarettes to youth and without attempting to get youngsters to smoke F Mr. GRAY. Sir, we are not for getting the youth to smoket I want to make that plain right now. It has always been our feeling that smoking, the decision to smoke or not to smoke is one for an adult a person of adult stature, and it is his decision or her decision and theirs alone at that time. I would agree with you if this is part of your thinking that there is little likelihood that any advertising that any- manufacturer of any commodity might do not being seen, the likelihood of not being seen by just about everybody in the country who reads or looks at television. I know of no way that you can blackout this reaching, peo~le being reached by it or people seeing it. I-Iowever,the appeals in the advertismg the cigarette manufacturers are doing today are directed toward the adult mind and the adult popu- lation. Today the posture of advertising with us, the use of adver- tising, the meaning of advertising, the reason you spend your dollars in CIGARETTE LABELING AND ADVERTISING-198b 299 it, is not now to increase the number of people smoking. Millions, more than half the people, I suppose, in the country todayt adults, do smoke. I know what my intent, our company's intent is, which is to try to get some more business away from some of these guys we are fighting, and this is where we are going. This is basically where we have to get our growth. Our competitors are very nice people, but they st,illl are competitors, and I want to get every dime's worth of business awa from them that I can_ They understand that, this is nothing now. ~Laught.er.] But I sup se that-golly, you are getting down into psychological - evaluations here, Mr. Callaway, that I have had little experience and little training in. What does an advertisement do to a 3-year-old 9 I do not know. I am sure-.4ell, when lie is 6 he c:ui read, can he not4 Mr. CALLAWAY. Well, yes. My main confusion in this concerns your g ram which is bound to be approach to any kind of advertism rog predicated on the premise of "let us sellpmore cigarettes-of course you would like to take sales from your competitors, xou would like to take them anywhere you can. It is a com etitive busmess, but based on the premise "let us sell ~nore cigarettes,p'' which is ceitamly the premise of your advertising or you would not be doing it, how can it not be ap- pealing to the 14-, 15-, 16-year-old4 This seems to be the purpose of it, and I do not see how with any voluntary code we are going to solve this dilemma. It seems to me you are always going to do this with your advertising. Mr. GunY. I will agree with you there is no prohibition of anybod,y reading our advertisting as to age or as to sex; and I do not think there can be, and if that is where you are going, I think I will have to go with you. Mr. CALLAWAY. Let me ask you one final question if I may. We have had some testimony and you mentioned the fact if we take some kind of action requiring you to state in the advertising the fact that it may be hazardous, this kind of thing, it might be self-defeating and might in effect say there would be no cigarette advertising. If this happened, in your judgment what would be the effect on the sales-how drastic would it be;-how dramatic if there were no more cigarette advertising in the United Statesg Mr. GRAY. It would, No. 1, have a tendency-and I think here you are going against the philosophy of equal competition. It seems to me that if a man does not have an opportunity to advertise his product in an effort to increase his share of that market which exists, it would >ossibly and ve likely have a tendency toward freezing the sale by rands very muc : in the area where it is today, and this would mean that the man who had less business, his opportunity for getting more business away from the guy who had more, is greatly diminished. This stifles or restricts competition and the opportunity for competition. As to what overall impact it might have on the sale of cigarettes immediately or over the long term, I guess I would have to say that I remember a man named William Wrigley who made-he is dead now-e he founded a business making a now very famous consumer product. He was asked one time "What would happen to your business if you stopped advertising I" And, as I recall, his answer was "Did you ever think what would happen to a railroad train if you took the locomotive off ?" This happens. gzsssszooi

300 CIGARETTE LABELING AND ADVERTIBING-1986 I said in my statement that advertising is an essential commercial right.. Whether you do it by prohibition or by forcing the advertiser to so stultify, negate, disparage what he is trying to do is not too much different. In any of these events you put a businessman who is spend- ing his money for advertising into a situation where I think his judg- ment must be "I cannot spend this type of money advertising if thls is the kind of advertising I am going to have to have." You see, sir, a large amount of money spent in consumer goods ad- vertising today, whether it is tobacco or any other kind, goes into network television. This is a tremendous mediuin for us all. In tele- vision you have generally three types of commercial announcements. We all started out initlally, I suppose, with the 60 second, which was the longest you had. This is what you had, 60 seconds, and then as the pressure for time and mentions and impacts becamo greater, they got down to 30 seconds, now 20 seconds, now 8 seconds or identification situatlons which you have seen on television. In the case of a cigarette we use lots of the 8 second, we use lots of the twenties and the sixties. I have not timed it, but. I wonder how many seconas would be left in an 8-second or even in a 20-second spot for saying you will like Salems if meanwhile you had to read into this same 8 seconds the language which has been proposed in the various bills that are here. I think it would destroy the need for, the opportunity for, and the reason for our using this kind of advertising, and when you begin de- stroying the value of it, I think you destroy the interest in or the use- fnlness of or the intent or desire of a manufacturer to pay for it. Mr. CALLAWAY. Thank you, sir. Mr. GxnY. You are welcome. The CHAIRMAN. bir. Satterfield. Mr. SArrERl+IFa.D. I have no questions, Mr. Chairman. The CHAIRMAN. Mr. Farnsley. Mr. FARxsL>;;Y. Thank you, Mr. Chairman. All this money has been given to researchers, but I am sure you have given the mouse population a hard time. But this is a secondary effect. Mr. GRAY. I read a little bit about it this morning or was it yesterday. Mr. FARNBLEY. I have been getting one almost every day in the paper. I have been trying to find out what happens to the warnings you put on the product. The only information I have got from my psychiatric friend who testified for Bromo Seltzer some years ago, and they made them-the Iiromo Seltzer people said "What do you want us to do?" Well, the said "Cut: down the amount of bromine," they can but a warning la~ei. They may have played it smart,. It says new improved formula on that bottle, and then it has got. the warning, but my information is that their sales went up so much that their stock doubled in value in a year. Have you all got any dope, has anybody ever tried selling cigarettes with a warning label on it g Ilas it been done by law anywhere in the world ? Alr. GRAY. No, sir, not to my knowledge. I think not. And we have no firsthand knowledge ge of what would happen, because we have not t tried it. either. Mr. FARNSLEY. You have not tested the market of whether it is going to. sZS969zoot CIGARETTE LABELING AND ADVERTISING-196b 301 Mr. GRAY. No, we have not. Mr. FARNSLEY. Shucks, I do not want to tell you how to run your business, but. I have some psychologist's background ? 11'(r. GRAY. I did not, sir. Mr. FARNSLEY. I:xr>erlence, excuse me. Mr. GRAY. I have llnd no training in psycholo~y whatsoever. Mr. h'ARNSLEY. 1•:xcuse me. I thouhht you said you had. I understand in Italy they have stopped advertising, we were told this, they cut down the rate of growth froni 6 percent to 1 percent. Do you know anything about, that situation? Mr. GRAY. There are some figures available, sir. I do not have ihem here, sir; I think they are available at the Departnient of Agri- cult,ure oii just what did happen there. I have seen them. I was not aware thut• any such slow do«•n had taken place; at least the figures I s_ aw would indicate that. Mr. FARNSLEY. Could you send us some figures that you know about without too much trouble? Mr. GRAY. I will see we get those from Department of Agriculture :and get those to you. Mr. XORNF.(iAY. Vi'ould the gentleman yield? I have those some- where, and I understood they just label the imported cigarettes in Italy. The tobacco monopoly did not advertise, anyway. I Mr. GR.AY. They do not label anything, I believe, sir, as to health there. 'Mr. ICoRNEn:%Y. No, I am talking about the advertising. lFr. GRnY. Well, the history of that I can give you. I have the fi ~I1rPR. I do not know. The history is thnt some ,yeare ago the Inonopoly-and -,on nnderstand the cigarettes legally in Italy at least are sold throngh a Government monopoly- Mr. Mr. FARNSr.r:Y. I (lid not know that. Mr. GRAY. Mann factured and sold. They also sell a lot of cigarettes there that, are not• made there but are imported by the monopoly for sale in Italy and manufactnred in other areas. The monopoly dlscon-7 t inue~d advertising on its own brands, and the figures show. diat t.heir own brands did decrease but that was more than made up by splendid increases enjoyed by foreign manufacturers who were selling their cigarettes in Italy, and of course still advertising and so then they ruled that nobod,y coul~i advertise cigarettes hoping that this-i as- snlne hoping that this would cut down on the foreign ones, but I believe these figlres-if 11fr. Kornegay has theui-will show that the sale of the foreign-made cigarettes has continued to increase even though the advertising on them was forced to stop some years ago. 1[r. I'iARNFLEi-. Whrch would indicate that a new brand could pene- trate tlie market. Mr. GRAY. No, these were brands already on the marltet.. ~Ir. FARN9LEY. I see. But they have increased their share of the nia.rket, with no advertising. Mr. GRAY. As against others with no advertising. There you gret into qnality. I do not think-I am talking about my competition 1tQaln. Mr. FARNSLEY. Go ahead. Mr. GRAY. There is a great difference in the quality of cigarettes in aomo of the foreign countries that are for sale. I personally think

M 302 CIGARETTE LABELING AND ADVERTISING-.19t1b all the cigarettes that are manufactured in the United States and offered for sale here are good. Some are just better than others, but they are all good. Afr. FARNSLEY. Everything manufactured in the United States is good. Mr. GIt1.Y. No doubt about it. I think that is all I want to say about it. They do still have a great deal of smuggling going to there, that is another phase of this business. Mr. FARNaLaY. I talked with the Surgeon General with an idea there were many- problems that the social sciences could address them- selves to. Maybe you are getting visits from these people. It might be interesting and it mlght be fun. It looks to me as if all of us are flying blind. I am not fussing at you, but thank you so much. Mr. GRAY. Thank you. Mr. Koaxrxa:tY. Mr. Chairman, if the gentleman would yield, I have found those figures, and I can put them in the record if ~ou desire, for the years fiscal 1961 throu -li 1964, the percentage of increase in imports, domestic-Italian-ma%e cigarettes, and the percentage in- crease in the sale of domestic cigarettes. Mr. FARN6LEY. Put them in the record. A1r. KoRN>ranY. Mr. Chairman, I ask unanimous consent that they be placed in the record. . The CHAIRMAN. They will be included. (The document referred to follows:) 1. The Italian advertising ban affected only foreign made cigarettes which were imported into Italy because the Italian tobacco monopoly was not engaging in advertising of Italian-made cigarettes. 2. Figuros provided by the Foreign Agricultural Service of U.S. Department of AKril•uiture on Itatian cigarettes sales are as follows. Figures cover the fiHCal year, frow July of the preceKting year through June of the year stated. (The advertising ban on improrted cigarettes went lnto effect In May 1962.) - - ~ - - -~ ~ ~ Percentage Peroeatpge Impated increase over Italian made increase over previous year previous year Flncn11961 ----------------------------- 1.2YS.U00.000 -......-..~.... 60.671..000..000 ............. --- Flsen1962--------------- ------------- 1, 403, pID, 000 s. Ea 54,423,000,000 Z C Fiscal1ffif3--.-------------------------- 1,976,000,000 39.40 55.178,011U.U00 1.4 Fiscal 1984- ---------------------------- 2.207.000,000 11.69 bb, 892, alp. 000 12 These figures make clear that there was an increase In imported cigarette?+, the only ones actually affected by the ban. The decline In rate of increase ennne in Italian-made cigarettes, which were not affected by the ban since they were not being advertised. Mr:. FARNSLEY. Ilow much does your industry spend on advertising here in the United St.at,es, approxinlate1y? Mr. GRAY. Mr. Congressman, I don't think any of us ever published exact figures on it. It has been variously estimated from two to-I think the last figure I saw was $240 million for the industry. Mr. FARNBLEY. Innocent bvstanders very rarely get shot hut in that case, if the industry decided to quit the ilutocent bystanders mieht be sllnt-newspa lers and radio Mr. GRAY. said there are many endeavors, many walks of life in this country which are affected by this industry. Mr. FARNSLEY. Thank you, Mr. Chairman. CIGARETTE LABELING AND ADVERTISING-198b 303 The CHAInMAN. Mr. Gray, concerning this estimate of $240 million, do you know what year that was g Mr. GRAY. I don't think I have seen the figures yet for 1964. I bel ieve this was 1963, sir. The CIIAntMAN. Would you say that it would be about that or more in 19641 Mr. GRAY. If I may judge from my own com p- any's expenditures they were up in 1964 as compared with 1963 due to two reasons primarlly. One, that the costs of advertising, like other costs in this country, have been going up steadily for a number of years, so that even though you buy the same number of commercials or newspaper ads, maga- zine ads, the cost of that same number is greater eac1l year than it had becn in the prior year. Secondly, in our own company we introduced a new brand last year, and this added several million dollars to our expenditures for adver- tisinl; as is usual when you bring a new brand out. lt might be interestm here to know there were 14, I believe, new brands introduced in t~e market from the 1st of January 1964, through the recent, well, through last month. I believe each one of them klad advertising on it which would be, I would guess, in addition to the normal expenditures on the existing brands. The CHAIRMAN. Fourteen new brands from how many companies? Mr. GRAY. We had one, at least four-four at least, sir. I am not certain of the other two because of the timing element. They h:ave brands which are new in the recent few years but whether these others wore since J anuary 1964, I am not certain. The CHAIRMAN. There are a total of six companies in the United StAtes. Air. GRAY. Major companies, sir. The CHAIRMAN. That is what I mean. Now, could you give the committee an estimate of what part of the estimated $240 million or more last year was spent on broadcastmg Y Mr. GsAY. Again, judging from my own company only, sir, it would be more than 50 percent of the moneys we spend on network-on television. The CHAIRMAN. More than 50 percent of the total on television. Mr. GRAY. More than 50 percent of our total was spent in the medium of television; yes, sir. The CHAIRMAN. What percent on radio 4 Mr. GanY. I don't have the figure, Mr. Chairman. I would prefer not to guess. If you want me to provide you with this I will try to get it. The CHAIRMAN. I think it would be advisable if you could give us an estimate of what the whole industry is. Mr. GRAY. I might point out that some of the publications in the advertising field publish estimates on these things each year. I am reasonably certain the one which is the most widely quoted has not come out for last year. I think it was due yesterday. But it did not appear. Perhal>s it may appear next week. May I send you that as an authoritative source whlch gives you not only the tobacco indus- try but all other industries using the media 4 O~S969ZOOZ ;' -

304 CIGARETTE LABELING AND ADVERTISING-196li The CHAIRMAN. I wish you would give us the best information you have as to the total sums spent by the tobacco industry in advertising in 1964, how much of it went to broadcasting, what part for television and what part for radio, what part for newspapers and what percent- ago of magazines, if you can get that information. Mr. GicAY. I will give you the best I can find on it, sir, or come up with. (The information referred to follows :) R. J. RaYNOCns TOBACCO CO., Winston-Salem, N.Cp., April E9, 1965. Hon. Osux IIAaaIS, Chairman, Ilouse Committee on Interstate and Foreign Commerce, RayLurn House Office Building, ii'aahington, D.C. I1h;Aa 11ia. HARRIS: I have now been able to assemble the published estimated figures on advertising expenditures for companies in the cigarette industry for 1964. These are from figures published or prepared by Advertising Age; Rora- baugh ; Radio Advertising Bureau ; and d the_ Bureau of Advertising, American Newspaper Publishera'Asaociation. CIGAItETTE LABELING AND ADVERTIBING-1965 305 Mr. GRAY. Drying up the participation or the use of that medium by a company such as ours. The CuAiRMAN. That is what I said. That is the way it appears to me. Mr. Farnsley g Mr. FARNSt EY. Mr. Chairman, let mo ask one more question. It is none of my business to tell you how to run your business but I can't help having ideas. But it looks to me like you ought to test some market, I know it is a horrible thing to think about, to see what happens, and then talk about it, lyou are worried that if there was no advertising some guy who didn t have a brand couldn't start one. He mi&ht run around giving out samples. It looks to me as if you are paying a terrible price to have the Surgeon General and Mr. I)ixon and Mr. Foote chasing you all around the United States, $240 million is a lot of money, that Is it is in my part of the world. Mr. GRAY. Mr. Congressman- Mr. FAerrsr,EY. You don't have to answer that. Television------------------------------.---------------------- Dlagazines------------------------------•---------------------- Farm lapers------------------------------- . - - --- $184,938,450 32,4a'J,677 Fi0'J 745 Mr. GRAY. I take that as a statement, not as a question. Mr. FAUNSLEY. All right.. ---- - - - ----------- - Supplements----------------------------------------------- - -_ , 122 804 3 That is a statement, and I quit. -- -- Radio----------------------------------•------------------- , , 10 765 000 The CHAIRMAN. What was the method they used in Canada 4 --- , , on rettes9 nad t i l C h i Did ' h a gR n a c ave some requ remen n t t ey Total--------------------------------------------------- ---- 240,765,676 Mr. GRAY. I have heard of none, sir. The figure given for expenditures in radio is for 9 months, this being the only one available at this time. No figures have been published as to estimated expenditures in newspapers. However, the total of such expenditures in 1963 was estimated at $17,414,827 by the Bureau of Advertising, American Newspaper Publishers' Association. On the basis of our own experience, I would assume that the expenditures in news- un{ier advertising for the industry were approximately the same In 1964 as in 190 The CHAIRMAN. You don't know of it. Any further questions 4 Mr. Gray, on behalf of the committee let me thank you very much for your appearance and your testimony. Mr. GRAY. Thank you for your courtesq, sir. The CHAIRMAN. Z'he Chair had hoped very much that this hearing . I think I should point out to you that the above figures include moneys spent for other items than cigarettes, since most of the companies in the industry advertise other products. All good wishes. Sincerely, BowxAx GRAY. The CHAIRMAN. Can you tell us whether or not in the broadcasting field that the greater part of the advertising was on spot annotuice- ments 9 Mr. GRAY. No, sir. The larger costs are on the regularly scheduled shows. '1'he CHAIRMAN. Sponsored programs 4 Mr. GRAY. This is right, sir. The CHAIRMAN. Ilow can you give a warning on a radio profirilm unless you just announce that smoking cigarettes is a health hazard and th will kill ou b c could be concluded this week. I am not sure just how many more witnesses we ha,ve left to be heard but we are going to undertake a meeting tomorrow afternoon at 2 o'clock or at such time after that as the schedule of the House will permit. The committee has an executive session in the morning and, there-, fore, will not be able to have a hearing in the morning. The committee will adjourn until tomorrow afternoon. (Whereupon, the committee at 4:30 p.m., adjourned to reconvene Wednesday afternoon, Apri114,1965.) ey y y ancer. Mr. GRAY. Are you asking me to tell you how that might be done, sir? 1'he CHAIRM.\N. Yes. Mr. GRnY. I think I have made it pretty clear I don't think it can be (lone or will be done. I think you would just have to quit. The CHAIRMAN. In other words, if such restrictions were placed on the radio industrv it would have virtually have the effect of drying tip cigarette advertising on radio. i~sssszooi

CIGARETTE LABELING AND ADVERTISING-1965 zCs969Zo0T WEDNE$DAY, APRIL 14, 1965 HousE or REPREBENTATIVEB, COHffiTfES ON INTEaBTATE AND FOHEIQN COMMEROFy Wa8hin.yton, D.C. The committee met, pursuant to recess, at 2;50 p.m., in room 2123, Rayburn House Office Building, Hon. Oren Harris (chairman) _ presiding. The Cz1ArRxax. The committee will come to order. Is Dr. Thomas Moran here4 I think in view of the time element, Doctor, and in view of the fact that you are here waiting, that we will proceed. There will be other memlx3rs along right away. STATEMENT OF DR. THOMAS J. MORAN, PATHOLOGIST, DANVIL.LE, VA. Dr. MoxnN. First of all, Mr. Chairman, I should like to thank you for the opportunity of appearing before this cominittee. I am Dr. Thomas J. Moran, a pathologist, of I)anvil.le, Va. I was born near Pittsburgh, Pa., and received my education atT.angley High School in Pittsburgh and at the University of Pittsburgh. I received my M.1). degree from the University of Pittsburgh School of Medi- cine in 1936. I interned at the Mercy Hospital in Pittsburgh and took my residency in pathology at the Pittsburgh city hospital. I have been in the practice of piithology for about 26 years. During this time I have also been director of the tumor clinics of the hospitals with which I have been associated. I was professor of pathology at the University of Pittsburgh School of Medicine and Directory Laboratories nt the Presbyterian-University IIospital of the Univer- sity of Pittsbur~h Medicai Center until Au~ust 1062, when I accepted t.he position of director o€ luborutories at the l~iemorial HospitA.i in Danville, Va I am a diplomate of the America n Board of Pathology and a member o€ six professional patholog~ cal societies in this country as well as t.he Int©rnataonal Academy of Patholo~y, the Pnt.hological Society of Great Britain and Ireltind, au~d t.he Colle~s of Pathologists (Great Britain). I have been president of the Pittsbur~h Pat,hology Society, the Pennsylvnnia Association of Clinical Pathologists, and vice president of the Virgina Society of Clinical Pathologists. I am a member of the publications committ,ee of two medie_a1 journals, Gerontology and the Gerontologist. I have published approximntAly 40 articles in 7nedical journals, most of them dealing with hing pathology. Several of my recent articles 307