A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |     Dates
CREATED 5/19/2013

WARNING: This site deals only with the corporate corruption of science, and makes no inference about the motives or activities of individuals involved.
    There are many reasons why individuals become embroiled in corporate corruption activities - from political zealotry to over-enthusiastic activism; from gullibility to greed.
    Please read the OVERVIEW carefully, and make up your own mind.


Smoking-Gun docs.


Cash-for-comment economists' network
General TI networks
James E Long
George Berman
James Savarese
Ctr.Study Pub.Choice
James Buchanan
Robert Tollison
Anna Tollison
Richard Wagner
James C Miller III
Carol M Robert
Elizabeth A Masaitis
Committee on Tax & Economic Growth
Harold Hochman
Fred McChesney
Thomas Borcherding
Delores T Martin
Dennis Dyer
George Minshew
Fred Panzer
Susan Stuntz
Peter Sparber
Carol Hrycaj
Debra Schoonmaker
Jeff Ross
Cal George
William Prendergast
Bill Orzechowski

Dominick Armentano
Burton A Abrams
Lee Alston
Ryan C Amacher
Gary Anderson
Lee Anderson
William Anderson
Terry Anderson
Scott E Atkinson
Roger Arnold
Richard W Ault
Michael Babcock
Joe A Bell
Bruce L Benson
Jean J Boddewyn
Peter Boettke
Thomas Borcherding
William J Boyes
Charles Breeden
Lawrence Brunner
Henry N Butler
Bill Bryan
Cecil Bohanon
John H Bowman
Dennis L Chinn
Morris Coates
Roger Congleton
Jeffrey R Clark
Michael Crew
Allan Dalton
John David
Michael Davis
Arthur T Denzau
Clifford Dobitz
John Dobra
Robert Ebel
Randall Eberts
Robert B Ekelund
Roger L Faith
David Fand
Susan Feigenbaum
Clifford Fry
Lowell Gallaway
Celeste Gaspari
David ER Gay
Kenneth V Greene
Kevin B Grier
Brian Goff
Sherman Hanna
Anne Harper-Fender
Kathy Hayes
Dennis Hein
James Heins
Robert Higgs
Richard Higgins
F Steb Hipple
Harold M Hochman
George E Hoffer
John Howe
Randall G Holcombe
William Hunter
Stephen Huxley
John D Jackson
Joseph M Jadlow
Cecil Johnson
Samson Kimenyi
David Klingaman
Roger Kormendi
Michael Kurth
David Laband
Suuner Lacroix
Dwight R Lee
Dennis Logue
James E Long
C. Matt Lindsay
Donald P Lyden
Craig MacPhee
Mike Maloney
Delores Martin
Chuck Mason
Charles Maurice
Fred McChesney
James E McClure
William McEachern
Richard McKenzie
Robert McMahon
Arthur Mead
Paul L Menchik
John F Militello
William C Mitchell
Greg Neihaus
James A Papke
Allen Parkman
Mark Pauly
William Peterson
Harlan Platt
Michael D Pratt
Thomas Pogue
Barry W Poulson
Edward Price
Robert Pulsinelli
Raymond Raab
Roger Riefler
Terry Ridgeway
Mario Rizzo
Morgan Reynolds
Simon Rottenberg
Randy Rucker
Richard Saba
Todd Sandler
David Saurman
Mark Schmitz
Robert Sexton
Gordon O Shuford
William Shughart
Robert J Staaf
Thomas Stimson
Wendell Sweetser
Mark Thornton
Mark Toma
David G Tuerck
Richard Vedder
Bruce Vermeullen
Richard Wagner
J Keith Watson
Burton Weisbrod
Walter E Williams
Paul W Wilson
Thomas L Wyrick
Bruce Yandle
Boon Yoon
Richard O Zerbe




Henry N Butler    

— A cash-for-comments economist who worked both at Texas A&M and George Mason University, and then Kansas while actively supporting the tobacco industry. —  

Professor Henry Butler was an economist friend of Bob Tollison and an early recruit into the economists network set up by Tollison and James Savarese for the Tobacco Institute. Butler proved to be so useful that he, and another economist friend Professor Dwight R Lee, became associate/partners with Tollison in enlisting and persuading other economists to work for the the tobacco industry.

Butler seems to be a well known partisan economist and law professor, who is active in Republican circles, and who associates himself closely with many of the more powerful right-wing think-tanks, policy groups and societies. He clearly has aspirations to be a Republican Congressman like his father, but (judging from his work record) he probably doesn't stay long enough in any one university to establish himself with the local GOP officials.

As an academic, he certainly has the ability to move in the right corporate/wealth sectors, and he belongs to the organizations which are able to attract money from those who wallow in it. He has received grants/fellowships from the Koch, Olin, Coor and Scaife-funded organisations, and he currently serves on the:

  • Legal Advisory Council of the American Enterprise Institute's Legal Center for the Public Interest,
  • Advisory Council of Atlantic Legal Foundation,
  • Legal Policy Advisory Board of the Washington Legal Foundation

Henry N Butler — 2010 Puff-piece
Henry N. Butler is the Executive Director of the Searle Center on Law, Regulation, and Economic Growth at Northwestern University School of Law. As the Searle Center's inaugural Executive Director, Dr. Butler has built the Searle Center into a dynamic center for research and education on the impact of judicial decisions and government regulations on economic growth. In 2009, the Searle Center sponsored over 25 conferences — over 230 professors participated in Searle Center research programs.

Dr. Butler joined Northwestern from Chapman University where he was the James Farley Professor of Economics in the George L. Argyros School of Business and Economics and Professor of Law (courtesy appointment).

After three years as an assistant professor of management at Texas A&M University, Dr. Butler spent one year as a John M. Olin Fellow at the University of Chicago Law School. He then joined George Mason University as a professor of law, where he also served as Associate Dean and Director of the Law and Economics Center. Dr. Butler was the Fred C and Mary R Koch Distinguished Professor of Law and Economics at the University of Kansas from 1993 to 2001.

Dr. Butler has dedicated much of his career to improving the country's civil justice system through judicial education programs. He is an expert in public policy analysis, and has published numerous articles and books on government regulation. Dr. Butler serves on the Legal Advisory Council of the AEI Legal Center for the Public Interest, the Advisory Council of Atlantic Legal Foundation, and the Legal Policy Advisory Board of the Washington Legal Foundation.

He received his PhD in economics from Virginia Polytechnic Institute and his JD from the University of Miami School of Law in 1982. He was a John M. Olin Fellow in Law and Economics while at the University of Miami.

Note: There are a few discrepencies in the various versions of his curriculum vitae.

Professor Butler became part of a network put together by tobacco lobbyist James Savarese and Professor Robert Tollison of George Mason University who collaborated in the 1980s to provide the tobacco industry [through the Tobacco Institute] with a number of academics who would be willing to write propaganda material ... always provided their names were not linked to the industry or to any of the cigarette companies.

The idea was simply that the academic 'sleepers' would be available on a cash-for-services basis when needed to counter attempts to increase excise taxes, or to ban public smoking, or just to appear as independent experts at Congressional hearings and promote the industry causes.

Economist were by far the most useful academics to the tobacco industry because the distinction between economics and politics was never clear: so support of the cigarette companies could always be claimed as support for free-market economics ... the rights of individuals to make public choices ... small government ... or even the first Amendment to the Constitution.

The economist always claimed to be 'independent', 'professionals' and they wre recognised 'academics' from some credible university. They never revealed the source of their funding in their op-eds or letters-to-the-editor.

If ever put under cross-examination, they must be able to claim with weasel-word precision, that they had never received a penny from the tobacco industry. Therefore all payments were laundered, either through tobacco industry lawyers (usually Covington & Burling), the principle organisers, James Savarese & Associates, or through Bob Tollison's Center for the Study of Public Choice at George Mason University.

The aim was to have, in each State, at least one academic economist, one academic lawyer, and one academic from a business management, business law, marketing or advertising discipline willing to jump into action and write op-ed articles for their local newspaper, or to appear at local ordinance or legislative hearings. Copies of these articles were always to be sent to a local Congressman who sat on some important (to the tobacco industry) committee.

The academics were always expected to wave their own and their university's credentials vigorously, and loudly proclaim their "independence' from any crass-commercial motives. And those who could boast of being 'non-smokers' were especially prized — since without this addiction, their non-dependent-on-tobacco status was thought to be proved beyond any doubt!


The name Henry Butler appears to be relatively common and confused in the tobacco archives. However, the university economist who headed some Economics Departments, and the Henry Butler in charge of Business Management divisions ,and the Henry Butler who was a Professor of Law at George Mason University (and elsewhere) are all the same person. He was an economist with a JD who seems to have swap universities every year or two.
    This Henry Butler was also the son of a former Congressman and himself a Republican aspirant for political office in Virginia.

Some key documents

• Economist at Texas A&M University and Associate Professor of Law at George Mason Uni. VA Earlier, he was the John M Olin Fellow at the University of Chicaco Law School.

• See his C/V sent to the Tobacco Institute May 1987

1954 Feb 16: born in Roanoke, Virginia

1977: BA in Economics, University of Richmond, Virginia

1979–82: John M. Olin Fellow in Law and Economics , University of Miami School of Law.

1979–82: Law and Economics studies (Olin Foundation grant) University of Miami Law School.

1979: MA in economics from Virginia Polytechnic Institute and State University, Blacksburg

1982: JD from the University of Miami School of Law, Coral Gables, Florida. Also claims a PhD in Economics this year from Virginia Polytechnic. His Dissertation lists Robert D Tollison (Chairman)

1982 July: — (1984 Nov on) Assistant professor, Department of Management, College of Business Administration, Texas A&M University.

[See CV sent to the TI in Nov 1984]

1984–87: three years as an assistant professor of management at Texas A&M University

1984 Nov: Professor Henry Butler [partner/associate of Tollison and Savarese in the economists network] sends his C/V to the Tobacco Institute. It has three referees:

  • Henry G Manne, Director, Law and Economics Center, Emory University, Atlanta
  • Robert D Tollison, Director, Center for Study of Public Choice, George Mason University.
  • James S Mofsky, School of Law, university of Miami

1985 Jan 31: Hurst Marshall has distributed this Tobacco Institute list of economists from the cash-for-comments network. It has been organise by State, and includes the names of Congressmen they wish to influence.

Attached for your information are the names of economists who have been identified by PR to assist TI on the federal cigarette excise tax issue.

These people are also available to testify at the state level.

    If you feel that this type of witness can be of assistance to you on state cigarette tax issues, please contact Fred Panzer for details and arrangements.

    Please notify your lobbyists as to the availability of these people. At the same time, you may wish to ask them for their ideas or suggestions for other economists within their states.
This economist will be detailed to make the contact with Congressmen [by sending him/them the published op-ed]:
TEXAS (Rep. Pickle, Rep. Archer, Sen. Bentsen)
  •   Professor Henry Butler
      Texas A&M University, College Station, Texas

[This document also has a C/V of Henry Butler attached for information.]

1985 Feb 21: Roger Mozingo of the Tobacco Institute is sending his state directors a list of resources available to fight against excise taxes in their states. Henry Butler heads their state list of available economic witnesses for Texas.

1985 Mar: Tobacco Institute document "Federal Markets" on the likely allies the industry has acquired to oppose the earmarking of cigarette excises for healthcare. It also includes a record of their successful activities in each state

Market: TEXAS
Positive Actions by Local Allies:
Academics: Professor Henry Butler (Texas A&M) wrote an op-ed article on tax reform that appeared in the Austin American Statesman on March 14 (newspaper in home state of Senate Finance Member Bentsen and in home district of Ways & Means member Pickle). Copies were sent to Bentsen, Pickle and Ways & Means Member Archer.

See page 4
See Success List

1985 Mar 20: -23 [The report is dated Dec 18 1984] Jim Savarese, as subcontractor to Ogilvy & Mather, has set up seminars for some of the industry's cash-for-comments economists under the auspices of the Southwestern Social Science Association and the Eastern Economic Association. Jim Savarese writes to Trish Milita of O&M who refers this to the Tobacco Institute:

Attached are the panel sessions that were accepted by both the Southwestern Social Science Associations and the Eastern Economic Association in March, 1985.

    These are very strong academic panels and add a great deal of depth to our list of consultants for future use.

    I know all of these individuals personally except for Henry Butler who is a friend of Bob Tollison's at Texas A&M. They all understand their mission and will be submitting papers for us to review well in advance of the meetings.
[There can be little doubt as to what is meant by "their mission", and it is inexcusable for a genuine academic of this standing to submit a paper, about to be presented to an academic conference, to a PR company for vetting in advance of the conference.

    This is lobbying... pure and simple. These are lobbyists, not economists.]
  • The SouthWestern Social Science Association seminar run by O&M in Houston (Mar 20) was on "Taxation and Social Process. It had Robert Ekelund in the chair, and papers by Henry N Butler, Joseph M Jadlow and Richard E Wagner. Keith Watson was a discussant.

  • The Eastern Economic Association seminar, run by O&M in Pittsburgh (Mar 21) was on "Perspectives on Tax Reform". It had Robert Tollison in the chair, and papers by William Shughart, Gary Anderson, and a joint paper by John Bowman/Michael Pratt. The discussant was George Hoffer.
All of the speakers here were employed by the tobacco industry to promote their Social Cost and Taxation agendas.

1985 Mar 25: Jadlow has written to Rep James R Jones (D-OK) about "federal tax reform" and the Congressman has replied.

1985 May 29: Fred Panzer writes to other issues-executives at the Tobacco Institute praising the success of the Op-ed Article Project on Excise Taxes.

So far, sixteen op-ed pieces of twenty-three submitted have either appeared or have been accepted for publication.That's a..700 batting average!

    We're looking for about 35 of our economists to participate. They're the ones in states represented on the two tax writing committees of Congress.

    Attached are clippings of ten of the articles:
    Des Moines Register, Chicago Sun-Times, Muskegon Chronicle, Hartford Courant, Caspar Star-Tribune, Tulsa Tribune, Austin American-Statesman, Atlanta Journal, Greenville (S.C.) News, and Huntsville (Ala.) Times.
You may agree that it would be a natural follow-on to arrange for sending the article to the approriate member of the state legislative tax writing committee. This would help create the impression that we have more support "out there" than expected. If nothing else, the exercise would give our lobbyists more credible and positive material to leave behind with state legislators.

[This a variation in what became known as a 'Big Chill' tactic of letting legislators know that you had the money and power to challenge them in campaigns and Congress if they didn't fall into line.]
The authors of these clippings are Thomas Pogue; A James Heins; Paul Menchik; Domenick Armentano; Todd Sadler; Joseph Jadlow; Henry Butler; Fred McChesney; Ryan Amacher; robert Ekelund Jr; who all parade their university credentials, and who all forget to mention that the Tobacco Institute paid them to write these columns.

1985 June 30 to Sep 6: The Tobacco Institute have arranged the weekly syndication of a series of Opinion pieces, comparing statements of four economists (varied weekly) on various subjects. These have been picked up and run by newspapers; presumably in the belief that they are worthy articles of economic opinion. The economists quoted are:
  • K Celese Gaspari (Uni of Vermont) — a cash-for-comment economist
  • David N Laband (Uni of Maryland) — a cash-for-comment economist
  • Fred McChesney (Emory Uni) — a cash-for-comment economist
  • Dean Tipps — nominally a union official — actually Citizens for Tax Justice lobbyist
  • Allen M Parkman (Uni of New Mexico) — a cash-for-comment economist
  • Richard Vedder (Ohio Uni) — a cash-for-comment economist
  • Roger Faith (Arkansas State Uni) — a cash-for-comment economist
  • Lee Alston (Williams college) — a cash-for-comment economist
  • William Hunter (Marquette Uni) — a cash-for-comment economist
  • Dennis Logue (Dartmouth College) — a cash-for-comment economist
  • William Shughart (George Mason Uni) — a cash-for-comment economist
  • Harold Hochman (City Uni of New York) — a cash-for-comment economist
  • David Wilhelm (Citizens for Tax Justice) — think-tank lobbyist
  • Joseph Jadlow (Oklahoma State Uni) — a cash-for-comment economist
  • Robert Ekelund (Auburn Uni) — a cash-for-comment economist
  • Thomas Borcherding (Claremont Grad. School) — a cash-for-comment economist
[It's great to see newspapers publishing such a diversity of economic opinion!]

    There's also published articles on tax reform by Todd Sandler (Uni of Wyoming); Michael Crew (Rutgers Uni); Robert Ekelund (Ashburn Uni); Joseph Jadlow (Oklahoma State Uni); Ann Harper-Fender (Gettysburg College); Thomas Pogue (Uni of Iowa); Lee Alston (Williams College), Paul Menchik (Michigan State Uni); Henry Butler (Texas A&M Uni); Burton Abrams (Uni of Delaware)

1985 June 6: James Savarase & Associates has submitted its bill to Peter Sparber at the Tobacco Institute. The billing shows that some economists were paid via Robert Tollison, and that an Emory University Symposium had been held with Congressman [Wyche] Fowler.

  • Robert D. Tollison (includes services of four economists and expenses) Completion of 40 States' Economist List.  .  .  .  .  .  .  .  .  . $6.055
  • Emory University Symposium with Congressman Fowler (Robert Tollison and Fred McChesney + $1,500 to Emory Law School).  .  .  .  .  .  . $10,006
  • Public Choice Society Session.  .  .  .  .  .  .  .  .  .  . Total $17,326
    • Robert Tollison ($6863),
    • William Shughart ($2908),
    • Fred McChesney ($2748),
    • Thomas Borcherding ($3033)
    • Dwight Lee (DRL Inc) ($1773)
  • Op-ed Project Professional Fees and Expenses.  .  .  .  . Total $23,346
    • Robert Tollison (also laundering payment to four economists) — $15,346
    • A James Heins, Richard Vedder, Todd Sandler, Ryan Amacher, Joseph Jadlow, Henry Butler, RN Ekelund, Fred McChesney — (each $1000)
                        TOTAL A/C was for $56.733.81

See also previous links to Congressman Fowler

1985 June 21: James Savarese submits his bill to the Tobacco Institute for the academics who have written articles, and those who have made speeches at important academic conferences promoting the tobacco industry line.

  • Op Ed Project — $1000 each in 'professional fees'
      for Abrams, Alston, Armentano, Harper-Fender, T Anderson, Denzau, Bohanon, Jadlow, Wagner and Menchik.

  • Southwest Social Science Meeting — Houston
    • Keith Watson ($1,000),
    • RB Ekelund Jr ($2,003)
    • Joseph Jadlow ($2,605),
    • Richard Wagner ($2,716)
    • Robert D Tollison ($5,000)
    • Henry N Butler ($2,070)

  • Eastern Economic Assoc, Meeting — Pittsburgh
    • George E Hoffer ($1,431)
    • Gary M Anderson ($2,450)
    • Robert D Tollison ($6,375)
    • Bill Shurghart III ($2,529)
    • Michael D Pratt ($1,288)
    • John H Bowman ($1,000)

1985 Sep 6: Acey at the Tobacco Institute has sent a bundle of newspaper clippings along to their printer/copier.

Enclosed are 15 original newspaper clipings (don't lose them!) some in better shape than others.

    We'd like these articles on seperate sheets so the lobbiests (sp) can make up their own individual packets. They will also be including some publications too.

    This brings us back to the infamous Tax Folder... To hold all these clippings, publicatiosn and information on tax articles.

    Size should be a 9 x 12 folder to fit in a 9x 12 envelope. You know what I mean. Good looking folder, not too slick. Articles should be in black & white.

[This economist's article is to be circulated.]

1985 Nov 6: Ken Arnold of Ogilvy & Mather PR writes to Fred Panzer at the Tobacco Institute.

Fred, here is a summary of the Economist Op-ed and Economic News Service projects.

    With regard to the Economist Op-ed project, we have submitted a total of 34 op-ed articles, and 18 of them have been published. Recent articles appeared in the Huntsville Times on September 11, by Robert Ekelund and in the Providence Journal on October 25, by Arthur Mead (see attachments).

    Enclosed is a revised op-ed chart, indicating House Ways & Means and Senate Finance Committee Members impacted to date and the circulation of each newspaper publishing the articles. In most cases, the papers are the largest in the targeted district.
This chart list all the important Congressmen they want their economists to influence, including:
Senator Lloyd Bentsen
Congressman Bill Archer
Congressman J.J. Pickle

Austin American-Statesman (c. 160,000) March 14
Professor Henry Butler
Texas A&M

Economic News Service:
    Ogilvy & Mather appear to have organised a separate syndication system for economic articles which did not carry the names of the cash-for-comments academics, but which were simply distributed to these newspapers as if they were news. However, the titles show that they were carefully crafted to suit the local prejudices and interests — so they were probably written anonymously by the same academics.

1985 Nov 6: Memo from Peter Sparber to Fred Panzer at the Tobacco Institute. This is a TI memo detailing the arguments they have commissioned to be developed against the earmarking of tobacco excise taxes for health care. These were presented at hearings of the Congressional Ways and Means Committee on June 20 1985, and to other legislative committees at roughly the same time.

Enclosed are statements prepared for various Congressional hearings on the tax issue that specifically comment on earmarking to some degree. These statements are by:
  • Henry Butler of Texas A&M,
  • William Shughart and Dwight Lee of George Mason submitted to Ways & Means, June 20, 1985;
  • Bob Tollison of George Mason for the Chafee subcommittee on September 10, 1985;
  • Randy Rucker of North Carolina State on the Rose bill on July 18, 1985; and
  • CM Lindsay of Clemson for hearings on the Stark bill which never were held.
I've asked Jim Savarese, who provided these papers, to begin working on copy that could serve as the text for multipurpose anti-earmarking publications.

1985 Dec 12: Annual Report of the Tobacco Institute's Public Relations division lists him as having:

We believe that the active and creative use of experts — our scientists in particular — gives us an edge. But without question, public smoking is our toughest challenge.

    A close second is taxation. In 1985, most of our resources in this area were focused on the federal situation.

    That being the case, we concentrated almost exclusively on the home districts and offices of the 56 members of the House Ways and Means and Senate Finance Committees.

    We identified and utilized economists from universities in 48 of those districts. Some testified at the four federal tax hearings in which had interest. Others participated in academic symposia attended by Congressional staffers. Others communicated directly with their Congressmen.

    And 34 of them wrote op-ed articles on the need to consider excises as part of tax reform. Many of these articles appeared in the principal newspaper in the targeted districts which have, by our estimation, a total circulation of nearly 4 million.

    The economists were of great help. [SNIP]

    Professor Henry Butler (Texas A&M) wrote an op-ed article on tax reform that appeared in the Austin American Statesman on March 14 (newspaper in home state of Senate Finance Member Bentsen and in home district of Ways & Means member Pickle).

    Copies were sent to Bentsen, Pickle and Ways & Means Member Archer.

1986: This is the Tollison/Saverese network list for 1986. It has 64 names, but it still doesn't cover all 50 States. Some States have two or three network members, so newspapers [and sometimes Congressmen] need to be specified for each member to ensure there is no accidental duplication.

    Telephone numbers (office and home) are often included in case an urgent op-ed or ordinance hearing is needed. These are grouped by State:

Professor Henry Butler
    George Mason University, School of Law, 3401 North Fairfax Drive, Fairfax, Virginia 22201, 703-841-2665

Professor Richard E. Wagner
    Center for Study of Public Choice, George's Hall, George Mason University, Fairfax, Virginia 22 030, 703-323-3773

Professor Walter Williams
    Department of Economics, George Mason University, Fairfax, VA 22030, 703-323-2631

1986 Jan: Public Relations Resources Commitee of the Tobacco Institute lists him as an available Management /Economist witness from the Texas A&M University :

Public Smoking/Witness: Local economists are available on two-weeks notice to provide economic testimony on the public smoking issue. Those economists who have testified or prepared op-ed pieces on the economic effects of public smoking are marked accordingly. The others may be briefed on the potential cost to government of implementing smoking restrictions.
  • Professor Henry Butler, Department of Management, School of Business, Texas A&M University, College Station, Texas
[He is also listed under the heading ]
"Taxes/Witness: Local economists are available to provide economic testimony on excise taxes. The economist explain why excise taxes are regressive and unfair to consumers and unsuitable and unreliable as a means to increase the federal revenue."

1986 Jan: The Tobacco Institute's Public Relations Resource Catalogue for their Regional Directors, lists documents, booklets, article, posters and people who can help them fight local public smoking ordinances and threats to raise the excise taxes on cigarettes.

    It provides a long list of economists who are willing to speak at hearings, write letters to the editor, or create op-eds for the newspapers to counter any threat to public smoking or possible increase in excise taxes.

    The Tobacco Institute offered their Regional Directors the C/Vs of all of these economists, and said

"Requests for economists should be made ASAP. Allow at least one week. PR approval needed."
He is listed [along with 50 other economists] as a contact in:
  • Professor Henry Butler
    Department of Management, School of Business, Texas ASM University, College Station, TX
He is available on two weeks notice as a witness for hire.
Public Smoking/Witness: Local economists are available on two-weeks notice to provide economic testimony on the public smoking issue. Those economists who have testified or prepared op-ed pieces on the economic effects of public smoking are marked accordingly. The others may be briefed on the potential cost to government of implementing smoking restrictions.

Tax witness: [He will] "explain why excise taxes are regressive and unfair to consumers and unsuitable and unreliable as a means to increase the federal revenue."

    Those economists who have testified or prepared op-ed pieces on the economic effects of public smoking are marked accordingly. The others may be briefed on the potential cost to government of implementing smoking restrictions.

1986 Feb 24: Craig Barnes (Media Relations department) memo to William Kloepfer at the Tobacco Institute about the use of various Chase Econometrics studies [See below] which have been done in a number of states to support the industry lobbying.

    These economic studies were customised to suit the tobacco industry's requirements and were conducted in the various states when legislation or local ordinances threatened. Sometimes one of the network economists would be included in the Chase team (certainly the following press briefing) to give it more credibility. He advises Kloepfer that:

In an approved revision of the plan it was decided that including a state economist in the briefings created too large a briefing team and that we would counter subsequent anti's criticism more effectively by using the economists for op-ed pieces. The approved revision has been followed.

    [Inclued] A list of the economic consultants who have completed and submitted Chase op-ed articles.

ACTION: Such op-ed pieces have been completed and pitched in each market we've entered so far.
  • St. Louis — Richard McKenzie, Washington University
  • Baltimore — David Laband, University of Maryland
The following drafts have been recieved and, with minor revisions, are ready to go.
  • Chicago — Henry Butler, University of Chicago
  • Houston — same
  • New York — Michael Crew, Rutgers University
  • Atlanta — Dwight Lee, University of Georgia
  • Philadelphia — Jack Militello, Wharton

Chase Econometrics = BULLSHIT
1986 Feb 26: Richard Wagner wrote a private note to his friend Robert Tollison.
Here is a draft copy of my op-ed piece on the Chase bullshit.

    There is some really wacko stuff in that model: increased employment increases wages, but wages have nothing to do with employment; higher wages increase inflation, but inflation has nothing-to do with wages, and money has nothing to do with inflation. Inflation has nothing to do with interest rates. And....

    At any rate, I can live with the enclosed essay or some modestly revised version of it, but there is no way I can get any deeper into multiplier effects, interindustry flows, and the like
[They were promoting a series of faux-economic impact studies on the effects of smoking bans which were done for the Tobacco Institute in specific cities, by Chase Econometrics.]

1986 Mar 13: Savarese writes to Fred Panzer at the Tobacco Institute about the "Chase Study/Op-eds".

  • The St Louis article has been approved and submitted to the St Louis Despatch.
  • The Baltimore article has been approved, but not yet submitted.
  • John Militello's Philadelphia article is awaiting approval
  • Richard Wagner's Miami article is being discussed.
  • Four new articles are enclosed
    • Chicago (by Henry Butler)
    • (Another by Butler) for either Dallas or Houston
    • New York (by Michael Crew)
    • Atlanta (by Dwight Lee)
  • In writing stages are articles for
    • Los Angeles (by Thomas Borsherding)
    • Cleveland (by Richard Vedder)

[Note how flexible they are between Dallas and Houston — the articles can quickly be modified to suit the city]

Chase Econometrics Studies
1986 May 19: Scott Stapf at the Tobacco Institute sent to Peter Sparber a "Final report on the Chase Econometrics project." It detailed the successes of the 'Chase Campaign'
  • Press promotion: City press tours of Sacramento, Columbus, Albany (failed in New York City) Florida still to come.
  • Letters to the Editor being generated through field staff and TI media team members.
  • Economists op-eds (using Chase data) through the Savarese network
  • Smaller business publications
  • Major industry trade releases (Doremus & Co)
  • Labor publications (they have briefed Ms Jacobsen)
  • Materials production - all printed and readied for distribution
(including slide show)

1986 Mar 11: Bill Kloepfer (Head of PR) reports to Sam Chilcote the president of the Tobacco Institute on a meeting he has had with "Consulting Economists" over "Tax Issue Advice"

As you suggested, I met March 5 in a hotel room with five economists to discuss approaches by the industry to tax issues. Pete Sparber participated. Attending were:
  • James Savarese, Ogilvy & Mather
  • Dennis Logue, Dartmouth
  • Dolores Martin, University of Nebraska
  • Dwight Lee, University of Georgia
  • Henry Butler, University of Chicago
Consensus among the consultants emerged on four points:
  1. Some types of earmarking of cigarette excises may be beneficial.
  2. Plotting of a long-run demand curve for cigarettes is necessary.
  3. Academic research on the "social costs" issue is needed.
  4. Institute support of alternatives to excises as revenue sources is undesirable.
For background, I provided three documents to the consultants a week before the meeting: The executive summary of the Chase [Econometrics] study; the state activities division Feb. 10 memorandum on "Tax Revenue Earmarking Trends and Comments"; and the DeSeve [Economics Associates, Inc.] regressivity study.
[Truncated notes also on]
  • Earmarking: The advice we received was to consider carefully any earmarking proposals, perhaps accepting those which present a coalition probability and protesting those which do not.
  • Demand Curve: The effect of price, including excises, on cigarette demand apparently is usually measured on an immediate basis. Most economists evidently find the demand for cigarettes to be relatively inelastic. [because they are addictive]
  • Social Cost: While the so-called social costs issue affects public policy in many ways, it was recognized as one of the incentives for increased cigarette taxes. The group recognized the 1985 Office of Technologic Assessment memorandum as a landmark and its members indicated they would welcome an opportunity to study it as a basis for proposing research projects which could mitigate its unwarrented effects.

        They understand that The Institute does not have an economic research budget per se, but that we would welcome any suggestions which we might consider on their merits.
The discussion lasted for about five hours. It was quite worthwhile. We should take appropriate steps internally now to consider the major points which emerged.

1986 Mar 13: Savarese writes to Fred Panzer at the Tobacco Institute about the "Chase Study/Op-eds".
[These are promoting faux-economic impact studies on the effects of smoking bans, done in specific cities for the Tobacco Institute by Chase Econometrics]

  • The St Louis article has been approved and submitted to the St Louis Despatch.
  • The Baltimore article has been approved, but not yet submitted.
  • John Militello's Philadelphia article is awaiting approval
  • Richard Wagner's Miami article is being discussed.
  • Four new articles are enclosed
    • Chicago (by Henry Butler)
    • (Another by Butler) for either Dallas or Houston
    • New York (by Michael Crew)
    • Atlanta (by Dwight Lee)
  • In writing stages are articles for
    • Los Angeles (by Thomas Borsherding)
    • Cleveland (by Richard Vedder)

[Note how flexible they are between Dallas and Houston — the articles can quickly be modified to suit the city]

1986 Apr 2: The Citizens for a Sound Economy Foundation (CSEF) newletter reports on a project they have to block...

"developments in the marketplace [which] have swamped banking laws and regulations. Unless changes are made in these archaic laws, we will continue to forego the potential benefits which competition would bring."

    Citizens for a Sound Economy Foundation has launched a comprehensive Financial Services Project that will both advocate deregulation and monitor the broad range of financial services issues that affect consumers as well as the structure of the industry.

    Presently completing a Ph.D. in economics at George Mason University,[CSEF's director of financial services policy, Michael] Becker is joined in his efforts by Dr Henry Butler, CSEF senior fellow in political economy and director of Project Virginia.

    CSEF Fellow Dr Tyler Cowen will also contribute to the project. The effectiveness of the project is further enhanced by the participation of CSEF President Richard H. Fink on the Consumer Advisory Council of the Federal Reserve Board.

1986 Apr 3: James Savarese writes to his stable of economists on the subject of "New Research Opportunities." [A sure-fire come-on with academics]

I would like to thank you for all of your cooperation and diligence in handling the projects we have worked on together. I am taking this opportunity to alert you to some new research opportunities that may be available in the upcoming weeks.

    The Tobacco Institute is interested in considering research proposals which would establish a much more realistic examination of the social cost issue as it relates to the smoking issue.
He includes an OTA paper on the dangers of smoking and also...
... rebuttals developed by Bob Tollison and Richard Wagner to the OTA report.

    The Institute would like to examine proposals for research that test, in a quantitative way, a number of propositions on the relevant cost considerations that apply to the smoking issue.

    If some aspect of this interests you, please provide me with a brief (1-2 page) description of any project you have in mind by April 30. Please include a cost approximation.
The scent of possible research money on top of the op-ed writing must have generated substantial academic enthusiasm. Butler is listed as one of the recipients of this letter on the "Brainstorming - Research Ideas" project. Butler's name has been ticked twice, indicating that he has proposed projects.

1986 Apr 3: This appears to be the approved copy of the letter on "New Research Proposals" that Jim Savarese sent to his long list of network economists. This letter leaves no doubt that these academic economist knew that they were being paid to protect the interests of the tobacco industry.

    The economist were also being given outline "rebuttals" developed by Tollison and Wagner to help them in writing their counter-attacks to an an Office of Technology Assessment (OTA) anti-smoking report.

I would like to thank you for all of your cooperation and diligence in handling the projects we have worked on together. I am taking this opportunity to alert you to some new research opportunities that may be available in the upcoming weeks.

As you know, the tobacco industry is exposed continuously to a barrage of attacks on economic issues. Many of these attacks involve a serious perversion of the concept of social cost. The Tobacco Institute is interested in considering research proposals which would establish a much more realistic examination of the social cost issue as it relates to the smoking issue.

I have attached a report prepared by the staff of the Office of Technology Assessment which is representative of the kind of "research" being put forth by anti-tobacco activists. I have also included the rebuttals developed by Bob Tollison and Richard Wagner to the OTA report.

The Institute would like to examine proposals for research that test, in a quantitative way, a number of propositions on the relevant cost considerations that apply to the smoking issue.
This went out to the long list of cash-for-comments economist on the network.

1986 April 30: /E Henry Butler (at the University of Chicago Law School) replies to Savarese about the 'research proposals"

Dear Jim:
Enclosed in.an informal research proposal in response to your letter of April 3. As you will surely note, the proposal is sketchy. It basically involves the same ideas that I mentioned in my letter of April 1.

    So far I haven't had any luck in placing the op-eds written regarding the Chase Econometrics study on the economic impact of the tobacco industry, but I'm still working on it.

    Thanks for the business

1986 May: A bundle of 72 pages of information is being circulated by the Tobacco Institute to its Regional Directors. The data is predominantly on the tobacco-industry beat-up known as Sick Building Syndrome and on the general problems of Indoor Air Quality [all down-playing the effects of smoking in confined spaces]

    Section 1 is headed

List of sources. Local and national experts you can call for quotes or background information. It promotes the services of three specialist lobbyists
  • Lewis Solmon - an academic who discounts problems of workplace smoking
  • Al Vogel - who claims to be an expert in public attitudes to smoking
  • Mike Forscey, a labor lawyer/lobbyist who helped the tobacco industry keep the union movement on-side.
They have also provided a list of the 52 Professors of Economics from various State Universities who can be called on to provide services for roughly $1000 a time: This economists name and address are included under "Tobacco & Taxation (listed by state, alphabetically)".

1986 May 16: Jim Savarese and Bob Tollison have reviewed the "Social Cost' (OTA) research proposals received and they suggest to the Tobacco Institute those that "Merit Consideration for Funding:"

Although these can be improved in some regards to ensure they are most useful to the industry, three proposals seem to have a good deal of merit.
  1. "Is Absenteeism Related to Smoking? An Empirical Study" by Robert Ekelund, Richard Ault, and John Jackson. This is a solid, well thought out proposal. I think they could show that smokers are not more absent from work, other things equal.
  2. "The Relevance of Consumption Benefits from Smoking: An Empirical Assessment" by Dwight R. Lee and Phillip A. Cartwright. This is a good proposal to estimate the benefits of smoking, which, strangely enough, has never been done. This research will be quite useful.
  3. "Employment Effects of Smoking Bans in Public Accommodations" by CM. Lindsay and M. T. Maloney. This is an interesting proposal about smoking bans and the impact on restaurants.
They also want some revised and re-submitted:
  • "Improving the Accuracy of the Assessment of Social Cost Associated with Smoking" by Barry W. Poulson.
They propose rejecting the Kurth-Coats proposal; the Lindsay-Maloney proposal; and one from Henry Butler.

[There is also a scathing criticism of the Kurth-Coats project and heavy criticism of one from economist Cotton Lindsay. They have gone back to Henry Butler to give him a chance to revise his proposals. Dennis Logue, Barry Poulson and the Cartwright & Lee proposal also aren't up to the standard required.

    On the whole, the economist's network scored fairly low by their standards.]

1986 May 30: Fred Panzer of the Tobacco Institute was contacting British-American Tobacco's PR executive, Tom Humber [also Burson-Marsteller and National Smoking Alliance] sending him some of the examples of the network economists.

Enclosed are: (1) The first wave of 27 op-ed reprints, (2) A second wave of 32 op-ed articles (21 published and 11 unpublished), sent out on Packwood's first tax reform proposal.

    I've also included one on the Chase [Economtrics] study. There are a few others being rounded up, as well as a syndicated excise tax feature series we developed. Out of all this should come something useful for your people.
He also lists 21 of the economist (including this one) and provides copies of many of their recent articles.

1986 June 5: Susan Stuntz writes that she is interested in the absenteeism proposal by Ekelund, Ault and Jackson, and the food-service industry/smoking ban study by Lindsay-Maloney. She thinks the Cartwright-Lee and Poulson projects are worth reviewing.

    Savarese's attached note says about two other proposals:

  • "An Estimation of the Social Cost of Smoking: A Research Proposal Submitted to James Savarese and Associates" by Michael M. Kurth and R. Morris Coats.
  • . "A Correction of the OTA Death and Cost Estimation" by C. M. Lindsay and M. T. Maloney.
  • . "Economic Impact of Smoking on the Relative Wages of Smokers versus Nonsmokers" by Henry N. Butler.
Ed Battison ads his own evaluation of this and the original Butler proposal:
Henry Butler, U. of Chicago, Apr. 23. 1986: Butler's idea of comparing relative wages of smokers vs nonsmokers is an interesting and useful concept. He readily admits that new data would be needed, but sidesteps the problem by suggesting proxies from other published studies on wage differences and productivity differences.

    To draw these analogies would be too indirect, lose some accuracy, and results would depend too much on remote inferences.

    If his results show smokers get- lower wages, then this "internalization" of productivity losses will give adversaries some evidence they want, namely, that smokers are less productive.

    If, on the other hand, smokers' wages are higher, prosmokers could gain an edge in the argument on productivity losses, but other factors may be at work that account for differences, (i.e. occupations, skills, education, and personality differences). Not much can be achieved here unless Butler is much more clear in his objectives/approach/method/ results/conclusion. [In effect, he is saying don't do this study because the results might not match our propaganda claims.]

April 1, 1986, (Butler)
A review of medical care cost studies behind the O.T.A. report would be of some value. We know that there are conceptual and <, measurement errors. To document them in detail and rigorously would be of some value, provided that the research did achieve this objective.

    Butler then outlines in more detail his proposal of April 23rd.He accounts for the possibility of lower wages for smokers , but if no significant differences occur, then productivity differences do not exist. O.K. But, in 2) his "markets don't work" statement is wrong. Instead, it would mean that other factors are determining the outcome. Bulter does not cover the case if smokers' wages are higher. Are they then more productive?

1986 July 9: Robert Ekelund's private economists sub-network at Auburn University has been formed, and it is now attacking the decision of the General Service Administration to ban smoking by writing a joint letter at the request of the Tobacco Institute.

    They say they are bothered by economic considerations only:

  • Our general concern is that the costs of such a regulation will ultimately fall on taxpayers.
  • The most obvious costs of the regulation are those for physical alterations to the several thousand buildings that will be effected by the regulation. We would imagine that No Smoking Except in Designated Areas" would have to be placed at all entrances, and that "Smoking" and 'No Smokirrg" signs would have to be posted throughout GSA-controlled buildings.
  • A major cost of this regulation would result from a loss in productivity of federal workers.
  • Implementation of this regulation would require a great deal of time by
        administrative personnel. The regulation would of course lead to disputes
        which would also involve valuable time of both employees and administrative
  • In addition the regulation will be disruptive and lead to discrimination against minorities and low income employees.

[For some reason, this 'cost-benefit analysis' ignored all the benefits of a non-smoking environment — both for the workers and the building maintenance...?]

The signatories were Richard B Ekelund, Richard Ault, David Saurman, John D Jackson, Robert F Hebert, John K Watson, and Mark Thornton — all from the Economics Department.

1986 Jul 10: Cash-for-comments economist Charles Maurice, at Texas A&M University, copied the pattern of the Ekelund/GSA letter and has his Economics Department write one similar to that from Auburn University.

    Five Texas A&M economists got embroiled in this scam... but unlike the signatories at Auburn University, this appears to be their single indiscretion. [There were no further records of them working for tobacco.] Those caught were

  • Leonardo 'Pepe' Auernheimer, from Argentina
  • John R Hanson II
  • Gregory Delemeester
  • Niccie L McKay
  • Lynn Gillette
Sixteen copies of this letter were circulated around the tobacco industry. Clearly the tobacco industry was absolutely delighted to find a group of suckers willing to add their names to Maurice's letter,

Henry Butler from George Mason University; D Allan Dalton from Boise State Uni; and Arthur Mead from Rhode Island Uni also wrote GSA letter, and collected their payments from the Tobacco Institute.

1986 Oct 3: The State Directors for the Tobacco Institute have been reviewing all economics network witnesses in their territories, and culling those who are not actively participating. The Washington DC office is now circulating to its State Directors a list of the economists available who...

"...have been identified in several states by J. Savarese as available and hopefully capable to testify in our behalf, or aid in our defense against proposed state of local legislation, from an economic aspect.
This list differs from others in providing a list of the economic specialities of each network economist, along with the Congresmen they were designated to influence. He is listed as specializing in:
    (Rep, Pickle, Rep Archer, Sen Bentsen)
Professor Henry Butler
    Texas A&M University, College Station, Texas
    [Specializing in] (See op.ed.s); Public choice.

1986 Dec 8: Sam Chilcote is summing up the Tobacco Institute's activities in fighting the Packwood Tax Plan which attempted to impose special excise taxes on tobacco, alcohol and fuel (in the oil crisis years) to reduce use. Packwood also wanted to make these taxes and tarffs non-deducatable for federal income tax purposes.

    The document bundle (219 pages) includes:

  • Pages 2 to 34: A major study done for the TI by Policy Economics Group
  • Pages 35 to 50: Another major study commissioned from DeSeve Economics for the Coalition Against Regressive Taxation (CART) [funded by tobacco to act as a front]
  • Pages 51 to 57: A couple of papers done for Covington & Burling
  • Pages 58 to 100: A long document which has deliberately NOT included the name of the organisation which produced it within the document itself. (But done by deSeve Economics Associates Inc).
  • Pages 101 to 129 : A paper on the "Burden of Tobacco Taxes on Selected Demographic Groups"
  • Pages 130 to 144: Some booklet trying to rabble-rouse the Hispanic and Black communities and make them believe Packwood is attacking them racially.
  • Page 145 to 177: A Citizens for Tax Justice 'poll' on attitudes. and Coalition Against Regressive Taxation document
  • From Page 178 on: many of the op-eds they have had published in newspapers by the cash-for-comment academic economists, (including one from this source.)

See Butler's Austin American Statesman article on page 200 of the document bundle.

1986 Dec 11: James Savarese sends Fred Panzer at the Tobacco Institute a summary of the activities of his network of economists. This is effectively the beginning of the main cash-for-comments economists network.

Dear Fred,
    I have attached a list of all the economists we have used along with the projects they have worked on in behalf of the Tobacco Institute.
There are now 62 names on the list (Some states have 4 or 5) not counting himself and Bob Tollison. The details given for each consist of State, Regional Division [of the TI], Name, Address and Telephone number. Added to this is a list of the 'Projects' they have completed (in later lists, also the names of Congressmen they have contacted.)

    Virtually all of these cash-for-comment academics have been generating op-ed articles for newspapers, or have, in some unspecified way, opposed the Packwood Excise Tax plan — or perhaps helped fake up one of the 'Chase' [Econometrics studies]. A few participants have attended Congressional or government inquiries ['Treasury I') or local ordinance hearings as 'independent witnesses' while secretly acting for the tobacco industry. Two of the 64 members (Ann Harper-Fender and Gary Anderson) were acting termporarily as advisors to Ronald Reagan's Advisory Council on Intergovernmental Relations— which sought to bring pressure on the FDA, EPA and OSHA and stop them being pro-active with smoking bans.

    Other participants have been promoting the industry line at various academic conferences and fora [mainly as keynote speakers at economic society meetings] , and a few of the core-team were involved in brianstorming sessions with members of the tobacco industry looking for new angles for their PR, and for possible research project which might generate some economic propaganda for the industry.

    Many of them have joined in with the industry's orchestrated letter-writing campaigns opposing workplace smoking bans.
  • GSA = General (Government) Services Administration.
  • 'Ways & Means' = Congressional committee on finances
  • ALEC = American Legislative Exchange Council (a formalised way for big business to directly influence Congressional and State politicians)
  • Chase Econometrics = A company that did economic impact studies for the tobacco industry in various locations to 'prove' that smoking bans would destroy local economies.

        The references for this network member were:
Virginia [ Region VI ]

Professor Henry N. Butler

    George Mason University , School of Law , 3401 North Fairfax Drive , Fairfax, Virginia 22201 , 703-841-2665

    Services rendered:
    • original excise tax op-ed
    • Chase [Econometrics study]
    • brainstorming meeting with Kloepfer [PR at the Tobacco Institute]
    • academic forum
    • GSA letter writing campaign

1987 Jan 6: and 12 Jim Savarese advises the Tobacco Institute that some economists were no longer working for his network. However Butler is still being listed as their main Virginia economist-for-hire.

In order to keep this project straight with respect to the economists, we were specifically assigned to go back to all 42 names on the original list to check to see if the economists were still interested in working for us, still in the same state, and available to meet with representatives from state activities.

    We have 34 who fit this criteria and have been contacted. The list is attached. The states that we once had that are currently missing are Arizona, Maryland, Massachusetts, Nebraska, New Jersey, Vermont, West Virginia, and Wyoming.

    The attached invoice covers the project of re-contacting the original 42 economists and coming up with the present 34 people.
[The invoice is missing, and he gives no details of the current project.]

    An internal memo within the Tobacco Institute explains to Regional Directors why they had needed Savarese to check on availability:
The primary purpose of this contact is to determine if a given economist is capable of testifying effectively before a legislative body.

    They have been informed that someone from TI will be in contact with them.

    We request that an initial contact be made by telephone immediately. Please let me know when this initial contact has been made. Personal meetings should be arranged and completed no later than May 1, 1987.

1987 Jan 6: Savarese is charging the Tobacco Institute $3,200 to update the cash-for-comments economists list (with Henry Butler at George Mason University, still active)

1987 Feb 6: James Savarese has finalised his list of compliant economists, and sends them to Susan Stuntz at the Tobacco Institute. It lists all the familiar cash-for-comment economists

Old faithfuls:
Lee Anderson, Terry Anderson, Dom Armentano, Cecil Bohanon, Thomas Borcherding, Henry Butler, JR Clark, John David, Allan Dalton, Arthur Denzau, Clifford Dobitz, Robert Ekelund, David Gay, Anne Harper-Fender, Dennis Hein, John Howe, Wm Hunter, Joe Jadlow, Michael Kurth, Suuner LaCroix, Dwight Lee, C Matt Lindsay, Dennis Logue, Chuck Mason [Masen], Charles Maurice, Fred McChesney, Robert McMahon, Arthur Mead, Wm Mitchell, Allen Parkman, Wm Peterson, Thomas Pogue, Barry Poulson, Raymond Raab, Simon Rottenberg, Mark Schmitz, Richard Vedder, Richard Wagner
plus a few new ones.[
Greg Niehaus, Mario Rizzo, Roger Riefler, and Boon Yoon.]

1987 May 1: The Tobacco Institute has written to all its State and Regional Directors requesting that they personally check our and evaluate the academic economists who have signalled that they are willing (for a healthy commission) to provide personal witness statements at ordinance of legislative hearings.

    George Minshew of the State Activities division has sent out this memo to prod them into action:

It has been several months since the original request was given to you. Some of the witnesses have testified and been in your territories during this time, therefore evaluation of those will be a simple matter of getting it done. As to the others, may I suggest that you talk with you lobbyist, pick up your telephone and talk with the economist, go to see the economist, talk with someone who has dealt with him....whatever it takes to get it done now.

    This notice is not meant as a request or to ask what you thoughts are in this matter. It is direct instructions to get this project completed without any more delay. We will all pay one hell of a price should we end up without this resource and find that it was a plus factor that would win a battle or two in the future.

    Butler's CV is attached to this evaluation memo.

1987 May 22: The Regional Director looking after Nebraska writes to George Minshew at the Washington office of the Tobacco institute on Economic Witness Evaluations

My recommendation, if we are to continue this economic witness program, a political orientation would be advisable in order to better equip these witnesses for potentially politicized circumstances.
He reports on
  • Professor Thomas Pogue (IOWA)
    Including a C/V
  • Professor Raymond Raab (MINNESOTA)
    Including a C/V
  • Professor Roger Riefler (NEBRASKA)
  • Professor Cliff Dobitz (NORTH DAKOTA)
    Including a C/V
  • Professor Dennis Hein (SOUTH DAKOTA)
    Including a C/V
  • Professor William Hunter (WISCONSIN)
    Including a C/V
He also includes a C/V for Henry Butler (TEXAS)

1987 May 27: In this document, Michel Brozek, the Regional Director of the Tobacco Institute, has been in contact with Professor Henry N Butler, who must already be enlisted as an available witness, to evaluate his ongoing value to the tobacco industry. He writes:

[I]t is one thing to evaluate an economic witness over lunch, by telephone or over cocktails. But, it is quite another thing to evaluate these potential witnesses in the acrimonious, politically charged, circus-like disarray of a committee hearing. In essence, some of these guys (as in the case of Minnesota) fold under any unfriendly inquisition. The ivory tower is different from the political trenches.

    My recommendation, if we are to continue this economic witness program, [is that] a political orientation would be advisable in order to better equip these witnesses for potentially politicized circumstances. [ie he only wants libertarian or neo-con partisan warriors.]
A tacked-on CV shows that Butler generally co-writes with Barry Baysinger on management economics. He gives as a personal reference, Robert Tollison of the Center for the Study of Public Choice, at George Mason University. [See Butler's C/V.]

1988 Oct: 6-7 Dwight Lee sends the Tobacco Institute a formal report on Atlantic Economic Association meeting in Philadelphia which has tobacco industry economists as speakers:

  • Dwight Lee, Uni of Georgia
  • Richard Wagner, George Mason University
  • Bruce Yandle, Clemson University
  • Henry N Butler, George Mason Uni Law School
  • Robert Staaf, Clemson University

1988 Nov: /E A Washington Legal Foundation (WLF) document lists WLF publications made during the year (there are dozens, many made by tobacco industry lobbyist and supporters). It explains:

In 1988, WLFs Legal Studies Division produced numerous public policy studies that applied "law and economics" theories to specific problems confronting business.

    WLFs most important contribution in this area was the monograph Significant Business Decisions of the Supreme Court, 1986-1987 Term, by Dr Henry N. Butler and William E. Kovacic, Professors of Law at George Mason University, and Dr William A. Fischel, Professor of Economics at Dartmouth College, These scholars analyzed twenty recent Supreme Court rulings that affect business, in the areas of labor, antitrust, environmental law, and property rights.

1988 Nov 28: Debbie Schoonmaker at the Tobacco Institute writes to Savarese about Social Cost Research Papers.

Enclosed are drafts of the Wagner and Ekelund social cost papers.
Each has been reviewed and will not need further clearance provided the recommended changes are incorporated into the final versions of the papers.

    The legal comments are fairly straight-forward. If you or the authors need an explanation or wish to discuss further, please call.

    You'll also see that I've enclosed a copy of the California Health Department's "social cost" study. We can discuss this example in our "SWAT team" meeting.
She also attaches three lists of cash-for-comments speakers who have been selected to talk at various meetings of local economic associations they wish to influence [See earlier list]:
  • Atlantic Economic Assn., Philadelphia, Oct 6-9 , meeting on User Charges: has
    • Dwight LeeChairman + paper, "Some Bureacratic Implications
    • Richard Wagner"User Charges: Principles and Practice"
    • Bruce Yandle, "User Charges: Evaluation and Critique.
    • Discussant: Robert Staaf.
  • Western Economic Association, Los Angeles, June 30 — July 3 meeting on Tax Earmarking and User Charges.
    • Dwight R. Lee, "The Political Economy of Tax Earmarking"
    • Richard Wagner, "The Fiscal Politics of Tax Earmarking"
    • Paul Wilson,"User Charges and the Problem of Externalities"
    • Discussants: Thomas Borcherding and Benjamin Zycher, Rand Corporation [unknown relationship]
  • Southern Economic Association, San Antonio, Nov 20-22 on Excise Taxation
    • Robert Ekelund, Chairman:
    • Dwight R. Lee, "Political Economy of Corrective Taxation"
    • Randall Holcombe, Auburn University. "Excise Taxes in Theory and Practice"
    • Richard E. Wagner, "The Fiscal Politics of Excise Taxation"
    • Discussants: Joseph Jadlow, and Henry Butler,

1988 Dec 8: Fred Panzer at the Tobacco Institute returns the corrected and processed op-ed articles opposing advertising restrictions to Jim Savarese.

Enclosed are Op-Ed pieces by [Allan] Parkman, [Henry] Butler, [Douglas] Whitman and [Lloyd] Cohen. They have been cleared by legal counsel with corrections.

    Our lawyer said the pieces by [Paul] Lansing and [Ronald] Groeber are unsalvagable. I'll have more on this tomorrow when he returns for out of town.

    Meantime go ahead with the four good ones.

1989 /E: spent one year as a John M. Olin Fellow at the University of Chicago Law School.

1989 Jan 11: The Tobacco Institute's Scientific Consultancy Activity 1988-89
This is an 80 page mixed bag of files dumped together [Well worth perusing]. The first document is from 1990 [ordered in reverse]

  • Pages 3 to 23 begin with Witness Appearances in 1988 and 1989 involving both "Indoor Air Quality experts" who work for the Tobacco Institute, and three economists [Bob Tollison, Richard Wagner and Dwight Lee]
  • Pages 24 to 31 Labor IAQ Presentations in 1988 and 1989 which involves key figures in the labor movement and a few "IAQ experts."
  • Pages 32 to 39 IAQ/ETS conferences attended by tobacco industry disinformation experts in 1988 and 1989
  • Pages 40 to 41 Academic and Unaffiliated Scientfic Witnesses
  • Pages 43 to 53 Smokers Rights Legislation in various states.
  • See page 54: Tobacco Institute "Confidential" memo on "Tax Hearing Readiness" which is their battle plan to counter earmaking of cigarette excise taxes to fund health programs. It lists a large number of organizations and a few congressmen who can be relied on to help. It also has both primary and secondary lists of economists from Tollison's "cash-for-comments" network willing to give testimony.
    Economists: [Primary]
    • Bill Orzechowski, Tobacco Institute
    • Robert Tollison, George Mason University
    • Richard Wagner, George Mason University
    • Dwight Lee, University of Georgia, Athens
    • Michael Davis, Southern Methodist University
    • Gary Anderson, California State at Northridge
    • William Prendergast (resource: Prendergast/Solmon papers)
    • Other Network economists [see Secondary attached list below]

          "Due by mid-year is a book examining earmarking and "user fees" from a public choice perspective. The treatise will contain 8-10 chapters written by respected economists, including, Henri LePage and Nobel laureate James Buchanan."
    The Tobacco Institute's list of cash-for-comments professors and senior academics who were available to write op-eds and give evidence at Congressional hearings, etc. had grown extensively.

    Prof Henry Butler, George Mason Uni, School of Law

    Prof Richard E Wagner, Center for Study of Public Choice, GMU

    Prof Walter Williams, George Mason University, Department of Economics.

[TI budget papers show that each op-ed now earned the economists $3,000. Presentations to conferences earned them $5,000. Savarese was paid $70 to $100,000 pa for this project, and Ogilvy & Mather $250,000.]


See page 5

1989 Mar 14: James Savarese & Associates is billing the Tobacco Institute for

Tobacco Advertising Ban Project:

Final of three payments             $19,000

Butler has now been enlisted to help Savarese and Tollison with their second network of academics — cash-for-comments business law professors — willing to support the industry by attacking advertising bans.

    The attached list shows what each member of the cash-for-comments lawyers network has achieved with his op-ed articles. For this member it says:
      Received by Savarese   11-30
      Sent to Fred Panzer      11-30
      Returned to Savarese   12-8
      Returned to the Economist 12-9
Still trying to get publishedRoanoke Times

However the April 25 Status Report shows that Butler's article had been rejected and resubmitted to the Lynchburgh News & Daily Advance 3-23

1989 Dec 5: James Savarese is sending a bill to the Tobacco Institute for his own fees ($18,500) and the detailed out-of-pocket expenses for his group of economists speaking at the "Southern Economic Association Meeting" Nov 19—22 in Orlando Florida.

  • James Savarese — $1239
  • Robert Ekelund — $1271
  • John D Jackson — $1029
  • Richard Saba — $843
  • Richard Ault — $1002
  • Mark Thornton — $428
  • Henry Butler — $983
  • Keith Watson — (will send later)

1990 to 1993: At George Mason University as a professor of law
AlsoAssociate Dean and Director of the Law and Economics Center.

1990 May 7: The Tobacco Institute's "1991 Tax and Social Cost Plans" have sections on

  • "Social Costs" Hearings Readiness (preparation for fielding witnesses at Congressional hearings.) They list here the arguments that the Institute and its allies must be prepared to present.
  • "Tax" Hearing Readiness (as above, but for excise tax increases, State and Federal)
  • List of cash-for-comment network economists in each State.
This is an updated list with the current locations of each, with phone numbers and addresses.
Professor Henry Butler
George Mason University School of Law
3401 North Fairfax Drive Fairfax, Virginia 22201 703-841-2665

Professor Richard E. Wagner
Center for Study of Public Choice, George's Hall
George Mason University Fairfax, Virginia 22030 703-323-3773

Professor Walter Williams
Department of Economics, George Mason University
Fairfax, VA 22030 703-323-2631

1991 July 15: James Savarese is billing the Tobacco Institute for the services of his network economist at the Western Economic Association meeting in Seattle, Washington.

Dwight Lee; Henry Butler, Richard Wagner are charging a combined $18,500 for their professional services + $1,640; $912; $1,100 in expenses.

1992 May 22: Political Newsletter "The Rothenberg Political Report" says when discussing the primaries:

Virginia 11. (Open). A crowded Republican field, with the most important players being: former Michigan congressman Mark Siljander, Henry Butler (son of a former congressman), state Delegate John Rollinson and conservative Andy Schlafly.

1992 Jun 22: Roll Call reports

Virginia: The western 6th offers Republicans what is probably their best chance to pick up a Democratic seat in the Old Dominion. The GOP nominated 39-ycar-old attorney Bob Goodlatte, once the district office manager for former Rep. Caldwell Butler (R-Va), the last Republican to hold this seat.

    Drawn to reflect booming population in Northern Virginia, the new 11th district includes affluent Washington suburbs and should offer a fairly level playing field for Democratic state Del. Leslie Byrne and George Mason University Law professor Henry Butler (R), the son of former Rep. Caldwell Butler (R).

1993–20: 01 Dr Butler was the Fred C. and Mary R. Koch Distinguished Professor of Law and Economics at the University of Kansas from 1993 to 2001

1993: The Editorial Advisory Board of Cato Institute's Regulation magazine (taken over from the Heritage Institute) list him along with such "unfettered free-enterprise" luminaries as Robert Crandall, Peter Huber, James Miller, Walter Olson, S Fred Singer, W Kip Vicusi and a few other slightly-more obscure culture-warriors from the commercial right.

1994 March 16: A group of academic economists including almost all the members of the Tobacco Institute's cash-for-comments network sent an "An Open Letter to President Clinton on Healthcare Reform." This had been organised by David J Theroux, the founder and operator of the Independent Institute apparently with the assistance of an academic network member, Simon Rottenberg. [The institute was well-funded by the tobacco industry]. They say:

In The Open Letter to President Clinton, 565 economists and 76 other scholars from all 50 states and the District of Columbia state their firm opposition to any form of direct and indirect price controls in any healthcare program.

    Rationing Health Care: The New Threat of Price Controls, by Simon Rottenberg and David J. Theroux

    They use the old straw-man scare techniques of the sky-falling.
In countries that have imposed these types of regulations, patients face delays of months and years for surgery, government bureaucrats decide treatment options instead of doctors or patients, and innovations in medical techniques and pharmaceuticals are dramatically reduced.
Which, as anyone who has lived in England, Canada, Australia, etc. knows, is pure rubbish.

    Along with Butler and his associates, also on this list of signatories were a number of think-tank lobbyists [including most of the Hoover Institute] and others who worked for the tobacco industry, and the Research Director of the Independent Institute, Robert Higgs, who was also a fill-in network economist.

1994 Nov 1: Victoria Hughes, Vice President for Development at the Citizens for a Sound Economy Foundation, has written to Neal M Cohen, the Executive Vice President of APCO [& Associates] asking for a large donation to aid the CSE in tort-reform lobbying.[Cohen also ran American Tax Reform Association (ATRA) for Philip Morris]

    She had been supported at their meeting by CSE executives Paul Beckner, James Gattuso, and Wayne Brough [A minor cash-for-comments economist from the Uni of Central Florida].

Following up on our discussion, I am writing to outline Phase One of our research and educational efforts and to formally request that APCO underwrite our work with a grant for $63,000.
['APCO' was a surrogate for 'Philip Morris' which effectively owned the PR company via Arnold & Porter, its boardroom lawfirm.]

    As a first phase of CSE Foundation's efforts to educate citizens about abuses in the legal system, we would publish an economic analysis, as part of our Issues and Answers series. The study would frame the current rash of Medicaid litigation as part of an overall trend to redirect the judicial system from contract enforcement and property rights protection toward income redistribution or taxation. The study would also identify the relevant interest groups, assess the impact on taxpayers and consumers, and examine the potential adverse effects on economic activity.

    With a working title of "Assaults on the Rule of Law," we would publish the study in late November or early December. Dr Wayne Brough, economist and Director of Research at CSE Foundation, would write the study, which we would distribute to nationally and in targeted states to policymakers, journalists, business and community leaders, and others.

    To enhance the impact of this study, CSE Foundation would commission an academician with a law and economics background to author an Issue Analysis. We would commission the study potentially using an expert such as Henry Butler (University of Kansas), Thomas L DiLorenzo (Loyola College of Maryland), James Gwartney (Florida State University), or Richard Wagner (Center for the Study of Public Choice at George Mason University), as the author. [All cash-for-comments economists] We would distribute this analysis nationally and in targeted states to policymakers, journalists, business and community leaders, and others.
The CSE would also write op-eds and have their key executives appear on radio and TV — talk shows, etc. The letter sums up their hypocricy with the statement that the Foundation is tax exempt provided they don't engage in political or commercial activity.
The donor shall receive no benefits (goods or services) from this contribution in order for it to be fully tax deductible

1999 Feb 3: Professor Henry Butler, Director, Law and Organizational Economics Center, University of Kansas, speaking at the Manhattan Institute

2010 Feb 12: A keynote speaker at Chapman University, Orange California.



Creative Commons License
This work is licensed under a Creative Commons Attribution 2.0 Generic License