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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.




TOBACCO INDUSTRY EXPLANATORY

ABBREVIATIONS
JARGON
SPIN-MEISTERS
INITIALS
FIRST & NICKNAMES
Misc.RESEARCH HELP
Smoking-Gun docs.

RELEVANT LINKS

NETWORK OPERATIONS
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
William Prendergast
Bill Orzechowski
CASH-FOR-COMMENT
NETWORK MEMBERS

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
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
Michael Kurth
David Laband
Suuner Lacroix
Dwight R Lee
Dennis Logue
James E {Auburn} 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
Thomas L Wyrick
Bruce Yandle
Boon Yoon
Richard O Zerbe

 

 

OPINION ONLY

David ER Gay     [Prof ]    

— University of Arkansas economist who worked for the tobacco lobby. —  

Economics Professor David ER Gay of the University of Arkansas was one of the early recruits to the Tobacco Institute's clandestine cash-for-comments network.

Tobacco lobbyist James Savarese and Professor Robert Tollison of George Mason University collaborated in the 1980s to provide the tobacco industry, through the Tobacco Institute, with networks of academics in various disciplines who would be willing to write and sprout propaganda material ... always provided the payments for these services were not directly tracealble to the Institute or to any of the cigarette companies.

The idea was simply that these 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 of the acolyte academics because the distinction between economics and politics was never clear: so support of the cigarette companies could always be portrayed as support for free-market economics including the rights of individuals to make public choices ... small government ... or even the first Amendment to the Constitution.

The economist working for Savarese, always claim to be 'independent' 'professionals' and ' academics', and they exploited the fact that they came 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 imprecision) 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 were always sent to any 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!

Unfortunately, it worked.


Some key documents

• Prof of Economist University of Arkansas, Fayetteville, AK.



1984 Jan: Although the documentation is scarce, it is quite clear from that available that the Cash-for-Comments Economists Network had begun to operate by this time.

Kenneth Greene and Harold Hochman had originally joined forces with James Savarese to help the Tobacco Institute lobby in New York State. Then Robert Tollison and Richard Wagner, who had been working for the international ICOSI organisation, had then transfered over Tobacco Institute control to expand the network to other US States.


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]:
ARKANSAS (Rep. Anthony, Sen. Pryor )
  •   Professor David Gay ,
      University of Arkansas, Fayetteville, Arkansas



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:
ARKANSAS
Senator David Pryor
Congressman Beryl Anthony
Arkansas Gazette (c. 128,038) September 20
Professor David Gay
University of Arkansas

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 Dec: /E President Ronald Reagan asked Senator Bob Packwood, chairman of the US Senate Finance Committee, to design a proposal for comprehensive tax reform

which would reduce the highest individual income tax rate down to 35% from its current 50% level, but retain adequate incentives for business investment, and avoid inclusion of any new taxes.

    In an attempt to do this without reducing the total amount of tax revenue that is currently collected, the Packwood plan proposes to offset reduced revenues from income taxes by what the Wall Street Journal has referred to as a "backdoor increase in excise taxes."

    The Packwood plan proposes to eliminate the income tax deductibility of excise taxes and import tariffs paid by businesses [and it] would increase federal excise tax receipts by an estimated $75 billion over five years. Approximately $13 billion of this would be a result of a direct increase in excise taxes on motor fuel, wine, distilled spirits, and tobacco.

    See also in this document James Savarese's report to Fred Panzer at the Tobacco Institute on the progress of his Packwood Excise Tax/Op-Ed project. This economist and 18 others are writing opinion pieces for their local newspapers, and sending letters to their congressmen.
[The Packwood Plan triggered a substantial increase in the activities of the cash-for-comments economists already employed by the tobacco industry and led to the creation of the very substantial network of academic economists in every state who could be called upon to help fight tax increases on cigarettes — and later public smoking bans.]


David Gay appears to have been recruited at the end of 1985 to help them attack the Packwood Tax Plan.



Packwood's Dilemma
The Reagan Administration had gone on a spending spree while promising to rein in the bureaucracy and cut taxes. Under Reagan the national debt was skyrocketing, so Oregon Republican Bob Packwood was given the job of designing a new tax plan. However President Reagan insisted that it must:
  • avoid inclusion of any new taxes.
  • retain adequate incentives for business investment
  • reduce the top individual income tax rate from the current 50% to 35%.
This left Packwood with only one alternative — to use a "back-door increase in excise tax." His scheme was estimated to raise $75 billion over five years from increasing excise taxes on fuel, alcohol and tobacco — and eliminating tax-deducibility for businesses of both excises and import tariffs.

    So while actively supporting the Reagan Administration's anti-agency (FDA, EPA, OSHA) activities and the Republican attempts to limit product-liability, class actions, etc. the tobacco companies (who also owned beer, wine and spirit businesses) took a prominent stand against Packwood — but kept themselves in the background through hiring academic economists to promote their propaganda.


1986 Jan: Public Relations Resources Commitee of the Tobacco Institute lists him as an available witness:

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 David Gay, Department of Economics, University of Arkansas, Fayetteville, AK
[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 David Gay
    Department of Economics, University of Arkansas, Fayetteville, AK
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 March: Copies of the letters that the cash-for-comments economists wrote to various newspapers editors, and also the ones they wrote to their Senators — none of which mentioned that they'd been paid by the Tobacco Institute to write both the op-eds and the Congressional letters. These were sent to the Tobacco Institute as proof of their activities:

David Gay of University of Arkansas, Fayetteville, wrote to his friend "Bob" at the Arkansas Gazette (accompanying his op-ed) saying

I was shocked by Senator Packwood's crazy proposal to tax taxes as if they were income. I'm having a field day with this example in my public finance class this term. It is one of the screwiest proposals in recent memory. Attached a note that you might use for the op/ed page if it seems appropriate.
He also wrote to Senators David Pryor and David Bumpers with almost identical letters
Senator Packwood's proposals to, in effect, increase the excise taxes by taxing businesses as if their tax collection constitutes revenues or income is one of the most ill-conceived ideas in recent memory since taxes collected are not either revenues or income for the firm. Perhaps more importantly higher excise taxes are regressive and fall most heavily on the poor.

Furthermore they distort choices between the taxed goods and those untaxed.

Knowing of your concern and interest in such matters I have enclosed an op/ed article written for consideration by the "Arkansas Gazette."

Thanks for your attention to the complicated tax matters and the difficult choices confronting Congress. Best wishes as you continue to untangle these issues.


    Clippings of some of the network members' published articles for this project are grouped here for Professors Jadlow, Dalton, Maurice, and Scott Atkinson.


1986 Mar 20: Tobacco Institute document: Background Update Of the Estimated Effect of the Packwood Tax Plan On the Price Increase Necessary For Cigarettes

If the deductibility of the excise taxes is eliminated, then most, if not all, of this tax increase will be passed on to tobacco consumers as price increases to cover the additional corporate taxes they will be required to pay, plus the indexed excise tax requirement.

    On the basis of 1985 sales, and the level of federal excise taxes paid on cigarettes, the level of taxable sales would be: $4.5 billion / $0.16 = 28.125 billion packs — the remainder are either sent overseas as exports or to armed services, or to government institutions.

    If the Packwood plan is adopted, and if the effective tax rate on tobacco corporations is 35 percent as in 1983, the increase in corporate income taxes would be about $1.83 billion.

    It must be assumed that this tax increase will be passed on to consumers in order to maintain net income. This will cause a decline in demand on the base level of 28.125 billion packs.



1986 Apr: /E James Savarese has circulated these instructions to his stable of cash-for-comment economists. He is asking them to write to the House Ways and Means Committee members in their states, and include a copy of their op-ed articles.

    He provides stamped and addressed envelopes, and strict instructions for what the letter should say:

Contents of your letter to the member
  • Opposition to consumption taxes, especially federal excise taxes, and in particular alcohol and cigarettes (you may list others if you wish).
  • Opposition to any tax increase as part of the budget reconciliation process; i.e., the need to comply with Gramm-Rudman target of $145 billion deficit limit. This deficit target should be reached with spending reductions.
  • However, if the tax reform package that ultimately emerges generates some windfall tax revenues during the first year, FY 1987, these should take the place of any other tax increase that might be considered. (For your information, most analysts believe that the Packwood version of the tax bill is revenue neutral over a five year period, but that it raises between $15-$20 billion during the first year.
  • One tax bill per year is more than enough. Whatever tax bill (if any) passed will create enormous uncertainty among the taxpaying public. The last thing that taxpayers — as investors, consumers, etc. — need is another tax bill one month after the major reform bill is passed.
David Gay was one on the list of "Economists asked to write letters to Congressmen."
[This is lobbying in any sense of the word. The economists were exploiting their university credentials for personal and tobacco industry financial gain.]


1986 April: Professors Joseph M Jadlow (Oklahoma) and Charles Maurice (Texas A&M) have prepared draft articles attacking the Packwood Tax Plan. James Saverese has sent them, together with clippings of articles already published, along to Fred Panzer at the Tobacco Institute for correction and clearance. (See page 10)

    It lists many dozens of articles which the cash-for-comment economist on the network have now written, including one:

ARKANSAS

Prof David Gay, 3/12/86, Arkansas Gazette
Submitted to Paper: 3/28/86 to Senators Prior and Bumpers ,
Current Status:
Letter sent to Senator: [N/a}


    The Tobacco Institute also keeps a record of his submissions and letters to his State Senators, which is circulated to the tobacco companies (here Lorillard).

    One of the network economists, William Mitchell, has also written an "Open Letter to Senator Packwood" attacking his plan, and this is being circulated along with a letter from "Opportunities Industrialization Centers of America, Inc."


1986 Apr 1: An Open Letter to Senator Robert Packwood (by Wm Mitchell) has been sent to the network economists to help them write their articles. This is a checklist of those in the 1) Writing Stage 2) Submitted to Newspapers 3) Letters Written to Senators.

    This cash-for-comments participant has written both the article and the letters to Senators, and has obediently attached copies of both, which are sent back to the Tobacco Institute.


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. He is listed as one of the recipients of this letter on the "Brainstorming - Research Ideas" project.


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 Apr 11: The Tobacco Institute plans for State-by-State actions to generate opposition to the Packwood Tax Plan.


1986 Apr 15: Jim Savarese is reporting to Fred Panzer at the TI about the [anti] Packwood Tax Plan project. He includes numerous letters sent to Senators, copies of published op-eds, and a revised op-ed for Maine and one for Minnesota, He lists the successes of the network economists, including:

ARKANSAS, Prof David Gay
[Submitted to] Arkansas Gazette 3/27/86
[Letters sent to Senators] Pryor and Bumpers, 3/27/86



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 22: James Savarese has written to his cash-for-comments economists requesting that they now...

... produce a follow up letter to the members of the House Ways and Means Committee in your state. You will note that we are asking that you send this correspondence by Tuesday, May 27, to the home district offices of these members.

    You should refer to your correspondence with the state's Senators and attach copies of your OP-EDs that were placed. In the event that your OP-ED has not yet been placed, please attach it and mention one newspaper to which it has been sent.

Contents of your letter to the member:
  • Opposition to consumption taxes,
  • Opposition to any tax increase as part of the budget reconciliation process;
  • One tax bill per year is more than enough.
He also enclosed the target list of the Members of the House Ways and Means Committee, and (to the Tobacco Institute) the list of economists.


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.


1987 Aug 21: Savarese and the field staff of the Tobacco Institute have now finalised their lists of useful economists — those who have been productive and compliant. This is the current functional list (they now have coverage in 41 states). For this state they say:

ARKANSAS
    Professor David E.R. Gay
    University of Arkansas
    Fayetteville, AR

Excise Tax Op Eds: Arkansas Gazette—05/29/87
Economic Witness/Testimony: (nil)
Field Staff Contact: Meeting scheduled for June.
Field Staff Evaluation: None.



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 this to its State Directors.

"Attached is a list of economists with their specialty areas and office phone numbers. They 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:
ARKANSAS (Rep. Anthony, Sen Pryor)
Professor David Gay,
University of Arkansas, Payetteville, Arkansas, 501-575-4002
[Specializing in] General theory; economic growth, development, planning; legal relationships; micro theory



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 = 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:
Arkansas [Region VII]

Professor David E. R. Gay

    Department of Economics, University of Arkansas, Fayetteville, Arkansas 72701, 501-575- 4002

    Services rendered:
    • original excise tax op-ed
    • Packwood op-ed
    • Ways and Means letter writing campaign
    • 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 Gay is still being listed as their main Arkansas 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 Gay listed as active in Arkansas


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.]


    Note that 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:
ARKANSAS
Prof David E. R. Gay
    Department of Economics, University of Arkansas, Fayetteville, AR 72701, 501-575-4002



1987 May 29: A list of quotes excerpted from major newspaper editorials and op-eds from the TI's cash-for-comments economists about the Packwood tax plan. He has had his article "Excise taxes shift burden to poor" published in a Little Rock newspaper.

Arkansas Gazette, May 29, 1987
"I do not want to try to balance the budgets on the backs of the poor."

David E. R. Gay, professor of economics, University of Arkansas

There is no mention that this article was commissioned, edited and 'improved' by the tobacco industry. However he does attempt to establish his credibility as an 'independent expert' by stating that he is a non-smoker.

Actual article
[Selective quotes]


1987 June 9: The Tobacco Institute's Phase II - Excise Tax Op-Ed project involved an article-writing campaign by cash-for-comment economists was run by James Savarese & Associates. It was secretly directed by Robert Tollison from George Mason University with Savarese as the organiser and front.

    In the mid 1987 period, the project was controlled by Jeff Rose [under Peter Sparber] at the Tobacco Institute and it focussed on defeating cigarette excise tax increases — and especially the threat of such taxes being 'earmarked' to bolster health care budgets.

    Saverese and Tollison appear to have been in some form of loose partnership, because Anna Tollison, the wife of Bob Tollison, was employed by James Savarese & Associates to keep a record of the articles generated by their large contingent of academic economists and to organise payment.

    She reported that

"In sum, 41 economists were solicited to write editorials. We have publications in 20 states, 14 articles have been written and submitted, and 7 articles are still outstanding." [Others were in the offing]
She included a long list of the economists who wrote the articles, the newspapers in which they were published, together with their circulation figures [eg. the potential number of readers they may have influenced] and the publication date. This economist is featured on her list.
ARKANSAS, Gay, Little Rock Gazette, [circ.] 129,000, [no pub date]





1987 June 22: The Tobacco Institute has been sent by Savarese a "Schedule of Payments — Excise Tax Op-Ed Project" It details the name of the cash-for-comment economist, the State, the targetted newspaper, and both past and current payments — with a separate column labled "Total Earned to Date".

In ARKANSAS
Gay for Little Rock Gazette —Owed $1500, — Total to date $1500



1987 June 23: Savarese writes to Jeff Ross at the Tobacco Institute sending along a list of Democrat members of the House Ways and Means Committee...

... along with the economists we use in those areas. Nine of these are good, solid hits which we should be able to count on to do the job and get a publication. I have *ed these on the attached list. The remaining 6 are all people we have used in the past, but who have not been consistently successful.

    Since I'm under a new financial arrangement with the Tobacco Institute and I need to get these costs cleared in advance, I'll make my best effort here to budget this proposed project.

    If all 15 would get published, which is highly unlikely, the cost of Phase II Excise Tax Op-ed Project would run $45,000.

    More than likely we'll get 8-10 placements and 3 to 4 others who won't get placed, but will still send letters to their members on the Ways and Means Committee. In that case, the cost will be $37,000.
[This proves, beyond doubt, that under their arrangement with the network economists, they were only paid if their op-eds were published in local newspapers, and if they actually sent letters to their Congressmen.]

    The attached list showed who was considered reliable or unreliable:

DEMOCRAT WAYS & MEANS COMMITTEE PROJECT
STATEDemocrat CongressmenEconomist Reliability
IllinoisDan Rosenkowski
Marty Russo
Fred McChesney Unreliable
FloridaSam Gibbons Richard Wagner Unreliable
Texas J. J. Pickle
Michael A. Andrews
Charles Maurice RELIABLE
California Fortney H. (Pete) Stark
Robert T. Matsui
Gary Anderson RELIABLE
IndianaAndrew Jacobs Cecil Bohanon RELIABLE
Tennessee Harold E. Ford Brian Goff
(in Kentuxky)
RELIABLE
Georgia Ed Jenkins Dwight Lee RELIABLE
Missouri Richard A. Gephardt Tom Wyrick Unreliable
New Jersey Frank J. Guarini JR Clark RELIABLE
Arkansas Beryl Anthony, Jr David ER Gay Unreliable
Alabama Ronnie Flippo Robert Ekelund RELIABLE
North Dakota Byron Dorgan Cliff Dobitz RELIABLE
Connecticut Barbara Kennelly Dominick Amento Unreliable
Pennsylvania William J. Coyne Ann Harper-Fender Unreliable
Wisconsin Jim Moody William Hunter RELIABLE



1987 July: a selected group of the economists have been commissioned to write op-eds about cutting the deficit — and to de-emphasise the value of excise taxes. Generally they follow the line of listing four possibilities approaches

  • a general consumption tax (efficient but regressive)
  • increased excise taxes (inefficient and regressive)
  • a national lottery (regressive and competitive with State lotteries)
  • increased income taxes (unpopular)
In this bundle are very similar articles planted on their local newspaper in the March-April period by
  • Dwight Lee (2 of),
  • Dominick Armentano (3 of),
  • John Howe,
  • Joseph Jadlow,
  • S Charles Maurice (2 of),
  • Thomas Pogue,
  • Cecil Bohanon (2 of),
  • Chuck Mason,
  • JR Clark (2 of),
  • Allen Parkman.
  • Robert Ekelund Jr. (2 of),
  • William Mitchell,
  • Cliff Dobitz (2 of),
  • Barry Poulson,
  • William Hunter,
  • Michael Kurth,
  • John David,
  • David Gay,
  • Lee Anderson,
  • Robert McMahon,
  • Craig McPhee,
  • Brian Goff (2 of),
  • Dennis Logue,
  • Thomas Wyrick,
  • Arthur Mead,
  • Richard Wagner.

[This was one of their most successful projects. Professor Dominick Armentano writes to Anna Tollison [wife of Robert] that "... the article went national"]

1987 Aug 21: Jeff Ross at the Tobacco Institute has prepared a consolidated summary of "Field Staff Evaluation of Economists" for his superiors, William Kloepfer and Peter Sparber. They have been asked to look at 34 of these academics. This includes an outline of their recent achievements.

ARKANSAS
Professor David E.R. Gay
, University of Arkansas. Fayetteville, AR

Excise Tax Op Eds: Arkansas Gazette — 05/29/87

Economic Witness/Testimony: (nil)

Field Staff Contact: Meeting scheduled for June.

Field Staff Evaluation: None



1988 Mar 31: The Tobacco Institute's list of available economists, with details of their target for a review of Robert Tollison and Richard Wagner's "Smoking and the State" book (secretly funded and published by the tobacco industry). Jim Savarese writes to Jeff Ross who looks after the cash-for-comments network:

I have listed below potential areas where we could place book reviews for the Tollison/Wagner monograph.

Arkanas
    Targeted paper: (none given)
    Economist: David ER Gay, university of Arkansas, Fayetteville



1988 May 26: Savarese advises the Tobacco Institute that

We have initiated the book review project. [A series of newspaper reviews to promote the tobacco-funded book "Smoking and the State" written by Tollison and Wagner.] A copy of the book and a short summary were sent out today to 17 economists across the country with instructions for writing a brief review suitable for newspaper publication.

    I have attached a list of the economists. I'll keep you up to date as soon as the reviews start rolling in.
Gay's name was on the list.


1988 Aug 15: Gay has sent his draft review of the Tollison/Wagner book into the Tobacco Institute for clearance and editing. Carol Hrycaj, who was now looking after the cash-for-comments network, has sent the review along to the TI's legal firm Covington & Burling for legal clearance.


1988 Oct: A Savarese memo notes that his review was sent to (and printed in)

1. Arkansas Gazette
2. Arkansas Democrat



1988 Dec: /E A report on the 'Social Costs' issue made to the executive of the Tobacco insitute says:

Tollison and Wagner went to Oklahoma City, OK, and Baton Rouge and New Orleans, LA, promoting Smoking and the State.

    We worked with State Activities and Media Relations to select media tour sites for the next six months. David Gay and Allen Parkman's critiques of the book appeared in the Arkansas Democrat and the Alburquerque Journal. Additionally, Todd Sandler's book review has been distributed nationwide by a mat service.
[They meant "matte" — a ready-to-print high-quality page sent out to free newspapers.]

    Economists' letters to editors [were budgeted to cost] — $33,917.



1988 Dec 1: James Savarese reports to Susan Stuntz at the Tobacco Institute on his unit's activites during November (for himself and his employee, Leslie Dawson). His consultancy is specialising in coopting labor and economists, and countering the next Surgeon General's report.

  • met with officials of the Economic Policy Institute (EPI) to discuss tax strategy.
  • continued discussion with Coalition of Labor Union Women (CLUW) re national convention
  • continued work with National Energy Management Institute (NEMI) on development of training program and brochure.
  • meetings with Citizens for Tax Justice, Leadership for the New Century, Citizens for Tax Justice, National Economic Commission.
  • on the task force for Airline Cabin Air Quality (weekly meetings/ writing op-eds)
He also lists successes he has had with getting economists to plant op-eds on various local newspapers.
  • Prof David Saurman - op-ed on Prop 99 with San Jose Mercury News
        Also numerous reviews of the Tollison/Wagner book "Smoking and the State".
  • Prof Ryan Amacher (Clemson Uni) in The State.
  • Joseph Jadlow (Oklahoma State Uni) in Tulsa Tribune.
  • Todd Sandler (Iowa State Uni) in Fort Dodge Messenger.
  • Robert B Ekelund (Auburn Uni) Montgomery Advertiser.
  • Dwight R Lee (Washington Uni) Regulation Magazine.
  • Samson Kimenyi (Uni of Mississippi) in Jackson Clarion ledger.
  • David ER Gay (Uni of Arkansas) in Arkansas Democrat.
Also attached are the accounts ($114,589 for the Tobacco Industry Labor Management Committee disbursement.


1988 Dec 1: James Savarese writes to Susan Stuntz at the Tobacco Institute reporting on his activites during November (both for himself and his employee, Leslie Dawson). His consultancy is also now specialising in co-opting labor and economists, and countering the next Surgeon General's report. He has

  • met with officials of the Economic Policy Institute (EPI) to discuss tax strategy.
  • continued discussion with Coalition of Labor Union Women (CLUW) re national convention
  • continued work with (union owned) National Energy Management Institute (NEMI) on development of training program and brochure. [They were paid to fake air quality readings]
  • meetings with Citizens for Tax Justice, Leadership for the New Century, Citizens for Tax Justice, National Economic Commission. [All likely tobacco industry allies]
  • on the task force for Airline Cabin Air Quality (weekly meetings/ writing op-eds)
He also lists successes he has had with getting economists to plant op-eds on various local newspapers. His and Tollison's network of economists has generated numerous reviews of the Tollison/Wagner book "Smoking and the State," which the Tobacco Institute has funded and now wants to be widely circulated.
  • Prof David Saurman - op-ed on Prop 99 with San Jose Mercury News
  • Prof Ryan Amacher (Clemson Uni) in The State.
  • Joseph Jadlow (Oklahoma State Uni) in Tulsa Tribune.
  • Todd Sandler (Iowa State Uni) in Fort Dodge Messenger.
  • Robert B Ekelund (Auburn Uni) Montgomery Advertiser.
  • Dwight R Lee (Washington Uni) Regulation Magazine.
  • Samson Kimenyi (Uni of Mississippi) in Jackson Clarion ledger.
  • David ER Gay (Uni of Arkansas) in Arkansas Democrat.
Also attached are his company accounts ($114,589) for the Tobacco Industry Labor Management Committee disbursement.


1989 Jan: The TI Communications division report dealt with

  • Media and "Truth-squad" tours by consultants - Gray Robertson, David Weeks, Jack Peterson, Tollison and Wagner
  • Legal Briefings by John Fox
  • Third Party and Allied Activities - Bestype, HBI, John Fox
  • Freedom to Advertise Coalition (FAC) - tobacco and ad agencies
  • "Enough is Enough" campaign (attack on Surgeon General's report)
  • Counter to AMA "Tobacco Use in America" conference (and JAMA article)
  • Labor Management Committee and bribed unions
  • Economists op-eds - Allen Parkman, Todd Sandler, David Gay, Lloyd Cohen, Robert Staaf, Michael Kurth



1989 Jan 4: Savarese sends his December Status Report to Susan Stuntz at the Tobacco Institute. It lists dozens of projects that he is supervising — and meetings he is organizing to help the tobacco industry create coalitions with other industries and unions.

    Entries most relevant to the cash-for-comments economists are:

  • participated in strategy sessions on the National Economic Commission (NEC). [Later a general economists op-ed project]
  • Agricultural Research project — began development of research proposals on the effect of excise taxes on farmers. [Later became an Ekelund and Long 'study'.]
  • Airline Cabin Air Quality — continued op-ed project on Northwest Airlines. [They had been first to ban smoking on domestic flights] As of January 3, three op-ed projects have been published
    • Shreveport Journal [by] Michael Kurth, McNeese State Uni
    • Commercial Appeal [by] JR Clark, University of Tennessee at Martin
    • The Greenville News [by] Ryan Amacher, Clemson University
  • Began Ad Ban op-ed project. As of January 3 one op-ed has been published
    • Chicaco Tribune [by] Lloyd Cohen, California Western School of Law.
  • Social Cost Book Review Program [smoking and the State] - As of January 3, seven book review have been published.
    • The State [by[ Ryan Amacher, Clemson University
    • Tulsa Tribune [by] Joseph Jadlow, Oklahoma State Uni
    • Grand Forks Herald [by] Cliff Dobitz North Dakota State University
    • Fort Dodge Messenger [by] Todd Sandler Iowa State University
    • Montgomery Advertiser [by] Robert B. Ekelund Auburn University
    • Bryan-College Station [by] Charles Maurice Texas A&M University
    • Columbus Enquirer by Dwight R. Lee Washington University
    Three are forthcoming:
    • Regulation Magazine [by] Dwight R. Lee Washington University
    • Jackson Clarion Ledger [by] Samson Kimenyi University, Mississippi
    • Arkansas Democrat [by] David E. R. Gay University of Arkansas



1989 Jan 1: David Gay's review of the Tollison/Wagner tobacco-promoting book appeared in the Little Rock Arkasas Democrat newspaper with the title "Up In $moke: New book discusses in detail economic and health costs of smoking in America.

    Despite knowing Tollison intimately, and being funded by the tobacco industry through a Tollison organisation, he makes no mention of any tobbcco connections that might... just possibly... represent a conflict of interest.

    He does, however, used the old PR ploy of pretending to be reluctantly converted by the relentless logic of the book.

Most excise taxes, specifically cigarette taxes, violate this general rule. Indeed such taxes are often a smokescreen to shift some of the tax burden from nonsmokers to smokers. This is the case with cigarette excise taxes.
He then claims to counter the evidence that smokers have more absenteeism

    The new book by Robert D. Tollison and Richard E. Wagner, both professors of economics at George Mason University's Center for Study of Public Choice, challenges many ideas about the role of state regulation and public policy.

    Their analysis revises many commonly held beliefs in the controversy about who bears the cost of smoking and who should bear those costs.

    The authors provide an illuminating summary of public choice principles, wealth creation and wealth transfers, and the behavior of bureaucracy in a democracy. Whew! That took my breath away, too.

They made me reconsider my own prejudices about who bears the burden of smoking and the effects of well-intentioned laws on the choices of smokers and nonsmokers in a free society.
He supports the Tollison/Wagner attempts to lay the blame for excessive costs on non-smokers.
The resulting distortions of economic activity due to smoking are estimated to be $800 million plus the attempts to lobby for and against such taxation, so that the distortions to the economy could be as much as $10 to $11 billion!

    This book is a potent antidote to anti-smoking crusaders who cloak their biases in pseudoscience. This thoughtful, provocative little volume should be read with great interest.

[The breadth of Professor Gay's $1000 tobacco-funded hypocricy is unlimited.]

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.
    ARKANSAS

    David E. R. Gay, Univ. of Arkansas

[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 17-19: The Annual Meeting of the Public Choice Society together with the Economic Science Association. These are Hayek-oriented neo-con economists of the kind which gave us the Global Financial Crisis of 2008-9, and the Tobacco Institute was billed by Savarese & Associates for the network economist's time to attend and speak.

    The speakers list here mentions many active members of the economists network: — some of whom spoke more than once. ( William Hunter in particular.) It is clear that this society was a profitable recruiting ground for Tollison and Savarese.

    The large group of speakers connected with Tollison's Center for the Study of Public Choice at George Mason University completely dominated the conference session on Public Health.

  • Robert Tollison
  • Richard Wagner
  • David ER Gay
  • Dwight Lee
  • William C Mitchell
  • Burton Abrams
  • Cecil E Bohanon
  • Charles Breeden
  • William J Hunter
  • Bruce Benson
  • Burton Weisbrod
  • Bruce Yandle
  • Roger L Faith
  • Roger Congleton
  • James Buchanan
  • Gary Anderson
  • Peter J Boettke
  • Jeffrey R Clark
  • Robert J Staaf

    This document also contains a list of the Public Choice Society's participants, many of whom were also members of the economist's network.

    Savarese bills the Tobacco Institute $18,500 to cover the expenses of many of the network economists at the Florida Public Choice Society meetings.


1989 Mar 30: Dwight Lee's report and papers from an "Issues and Taxation" session which was organised for the Southwestern Social Science Association meeting in Little Rock Arkansas. Lee reported that:

Three papers were presented, one each by Dwight R. Lee of Washington University, St. Louis; Richard McKenzie, Clemson University; and David Gay, University of Arkansas, Fayetteville.

    Discussants were Edward Price, Oklahoma State University; Richard Wagner, George Mason University.

    The session was attended by approximated 20 people, and enough time was left over for several questions and comments

[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.]

.

1989 April 18: Susan Stuntz (Issues Manager) at the Tobacco Institute memoes her boss Sam Chilcote. She is sending him material previously used for a two-day "Gerry Long" presentation. He wants to use it in a shorter one-day (unspecified) briefing session.

[Gerald H Long was the CEO of RJ Reynolds who in 1988 had just taken over as Chairman of the Tobacco Institute's Executive Committee and wanted to make changes.]

This document has the speaker's powerpoints, including a list of network economists divided on a State-by-State basis.       Note the document is 117 pages

The outline for the Powerpoint slides is here in full, together with the names of the politicians they were required to influence. It boasts that the..
Economists' Network 64 Strong [is] Targeted to Congressional Tax Writing Committees [and utilizing the] Production of Op-Eds on Federal Tax Policy.
[List of economists]



1989 Dec 14: Jim Savarese is listing the economists taking part in their new Excise Tax Op-Ed project.

I have also listed the newspapers we plan to target and a package of the materials we are sending to the economists.

    We should start getting drafts of the op-eds around the first of the year.
David Gay is on the list for ARKANSAS Fayetteville News


1990: The RJ Reynolds files containa long document listing the Tobacco Institute's successes over 1989 and early 1990 with a range of issues.

David Gay Professor of Economics, University of Arkansas
      4/90 Excise Tax/"user fee" op-ed published in Arkansas Democrat



1990: A paper outlining the Tobacco Institute's successes in countering Federal Excise Tax (FET) increases, along with a number of its coalitions and the support from its contracted academic economists.

We are implementing a new consulting economist op-ed campaign to increase the visibility of the case against using excise taxes for deficit reduction, while bringing the anti-consumer excise message to a wide audience. Twenty economists are preparing anti-excise articles for placement in newspapers in select congressional districts.

    Articles from the earlier op-ed campaign, which debunk the excise tax/user fee connection, continue to appear in print. An op-ed prepared by consulting economist David Gay appeared recently in the Arkansas Democrat. The authors of other published articles have sent copies to their congressional representatives.



1990 Jan: This is yet another list of the work that scientists and academic consultants for the Tobacco Institute have achieved over the past year. Brennan Dawson, PR head of the Tobacco Institute, reports on their activities to the TI's Communications Committee She gives details of their work in planting ghosted academic-op-ed pieces for the tobacco industry. Some of the economists managed to plant these tobacco-funded articles on a number of newspapers.

  • Robert Tollison, Duncan Black Professor of Economics, George Mason University.
    Letters to administration officials debunking excise tax/"user fee" connection Jan 1990
  • Richard Wagner, Chair and Harris Professor, Department of Economics, George Mason University [a close associate of Tollison]
    Letters to administration officials debunking excise tax/"user fee" connection. Jan 1990
  • Dwight Lee, Ramsey Professor of Economics, University of Georgia
    Op-ed on excise taxes and user fees published in Macon Telegragh News Jan 1990


    On the Tobacco Institute list the names below are marked "Consulting Economists, not on Philip Morris' List" which suggests that many more economists were doing the bidding of the tobacco industry.
  • David Gay, Professor of Economics, University of Arkansas
        Excise Tax/"user fee" op-ed published in Arkansas Democrat April 1990
  • Barry Poulson, Professor of Economics, University of Colorado
        Excise Tax/"user fee" op-ed published in Aiamosa Valley Courier May 1990
  • Dominick Armentano, Professor of Economics, University of Hartford
        Excise Tax/"user fee" op-ed published in New Haven Register Jan 1990
  • Michael Babcock, Professor of Economics, Kansas State University
        Excise Tax/"user fee" op-ed published in The Topeka Capital-Journal March 1990
  • Thomas Wyrick, Professor of Economics, Southwest Missouri State University
        Excise Tax/"user fee" op-ed published in News-Leader May 1990
  • Clifford Dobita, Professor of Economics, North Dakota State IIniversity
        Excise Tax/"user fee" op-ed published in Grand Forks Herald Mar 1990
  • Richard Vedder, Professor of Economics, Ohio University
        Excise Tax/"user fee" op-ed published in Plain Dealer Jan 1990
  • Joseph Jadlow, Professor of Economics, Oklahoma State University
        Excise Tax/"user fee" op-ed published in The Tulsa Tribune Apr 1990
  • Ryan Amacher, Dean of the College of Commerce and Industry, Clemson University
        Excise Tax/"user fee" op-ed published in The Anderson Independent-Mail Feb 1990
  • J R Clark, Hendrix Professor of Economics, University of Tennessee
        Excise Tax/"user fee" op-ed published in The Paris Post-Intelligencer, The Weekly County Press, Kinusoort Times-News, The Commercial Appeal, the Jackson Sun. May 1990
  • John David, Professor, West Virginia Tech
        Excise Tax/"user fee" op-ed published in The Charleston Gagette Feb 1990
  • William Hunter, Associate Professor of Economics, Marquette University
        Excise Tax/"user fee" op-ed published in The Milwaukee Journal Feb 1990
  • Todd Sandler, Professor of Economics, Iowa State University
        Anti-excise tax/"no taxes" op-ed published in Fort Dodge Messenger Jun 1990
  • William Mitchell, Professor of Political Science, University of Oregon
        Anti-excise tax/"no taxes" op-ed published in The Register Guard Jun 1990
Clearly dozens of the tobacco industry's recruited academic economists have planted the same story as an op-ed in their local newspapers, under their own names — implying that this is their own work. In fact, they were acting as tobacco industry lobbyists.

Robert Tollison of George Mason university was both an organiser of economists, and a diligent consultant to the tobacco industry. He was probably the author/advisor on these op-eds along with his associate, Richard Wagner.
[This is only a small section of the list, and many of the economists are listed as having provided other similar services through the Tollison/Wagner "economists network". See document.]


1990 Feb 13: The draft articles of Joseph Jadlow ("Low and Middle Income Txpayers may be Loosers in the Political Chess Game") and David Gay ("Much Ado About Taxes") have been cleared by the Tobacco Institute and sent to the law firm Covington & Burling for legal clearance.
A note has been added to the Gay draft saying:

We are relying on Hollings in connection with the possible sequential referal of the Kenndy Bill. Do we really want to take this shot at him now?

    Talk to Bill before it goes.

    Some points for the Jadlow piece... [Not included]

    These pieces also appear to have been cleared also by the other main law firm, Shook Hardy & Bacon. See


1990 May: This is a list of the newspapers designated to certain economists on the network. They are to attempt to plant an op-ed article on "Excise Taxes" on this local newspapers.

ARKANSAS
David E. R. Gay, Univ. of Arkansas
has been given the Arkansas Gazette as his propaganda target.


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.
ARKANSAS
Prof David E. R. Gay
Department of Economics, University of Arkansas
Fayetteville, AR 72701 501-575-4002



1990 Aug: This long document has media tour records [being conducted by Fleishman-Hillard] for the cash-for-comments

  • economists network
  • ventilation network members (mainly HBI)
  • biological scientists network,
  • academic lawyers nework
  • labor network and
  • advertising academics network
The economist's media tours are to promote the Wagner and Tollison book on the Social Cost of smoking which had been written for the Tobacco Institute. and reviewsd by many of the cash-for-comment economist network members.

    Also there is attached a list of Savarese's network economist triumphs which has the intriquing heading "Consulting Economists — Not on Philip Morris List" which suggests that PM was running a parallel operation to that of the Tobacco Institute.

    This list holds the recent successes in planting op-eds on local newspapers, and a few appearances of economists at State hearings, conferences, etc.

David Gay
Professor of Economics, University of Arkansas

4/90 Excise Tax/"user fee" op-ed published in Arkansas Democrat



1990 Aug 3: Sam Chilcote at the Tobacco Institute has advised the Members of the Executive Committee of plans to develop a celebrity speakers program using academics and other expert consultants. There are offer the speakers both money and personal promotion:

[W]hile it is clear that there are a number of individuals who can and are speaking out on our issues independent of The Institute, there also is much more that could be done. There are, for example, opportunities to develop higher profiles for those individuals with whom we enjoy an existing relationship, and to increase within the media an awareness of their availability.

    There also are a number of individuals who have been identified who do not currently have a relationship with the industry, but whose views appear to be compatible with our own. Should the Executive Committee decide that it wants to proceed with an expansion of our speakers' program, these individuals would be contacted to determine their interest in our issues.

    The addition of new speakers to our program will be expensive. Most of these individuals command substantial consulting fees; media and other activity will require a new commitment of funds, although an exact amount cannot be determined until candidates have been approached.
He then lists:
  • Authors, newscasters and newspaper columnists
  • Well-known politicians, political aides, White House staffers, State authorities, agency administrators, etc
  • Heads of various coalition groups (American Advertising Federation. etc)
  • Cash-for-comments legal and business academics from Savarese's network list.
  • Cash-for-comments 'risk assessment' academics and promoter.
  • Cash-for-comment experts in indoor air pollution and ventilation systems.
  • Cash-for-comment academic economists + some likely allies:
    • BRUCE L. BENSON, professor of economics, Florida State University and board member, James Madison Institute, a Tallahassee think tank.
    • DWIGHT R. LEE, professor of economics, holder of the Ramsey Chair of Private Enterprise, University of Georgia
    • JAMES C. MILLER, Citizens for a Sound Economy Foundation, Washington; former director of OMB
    • WALTER E. WILLIAMS, professor of economics, George Mason
          University, Fairfax, Va.
    • BOB TOLLISON, George Mason University, Center for the Study of Public Choice
  • Some more minor network academics, together with their recent achievements.
This economist, along with dozens of others, is thought to be a potential speaker and he is credited with:
David Gay
Professor of Economics
University of Arkansas

4/90 Excise Tax/"user fee" op-ed published in Arkansas Democrat



1990 Oct: /E Tobacco Institute document. It lists the services that academics and secret consultants have provided to the tobacco industry during 1989 and 1990 — both as witnesses and as authors of articles and letters.

  • Pages 2 - 9     Advertising: lawyers and advertising administrators
  • Pages 10 - 30 Science and Public Policy on ETS/IAQ
  • Pages 31 - 39  Taxation
    This gives the dates of each of the services, and any 'Current Projects' they may be working on:
David Gay
    Professor of Economics University of Arkansas
  • 4/90 Excise Tax/"user fee" op-ed published in Arkansas Democrat

See page 32-5

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

See page 5


1991 Jan: /E Tobacco Institute draft plan for 1991 with emphasis on "Taxes." These are the economist-related paragraphs:

Objective
To discourage reliance on consumer excise taxes on cigarettes to meet social and economic objectives by demonstrating that excise taxes are regressive and inconsistent with fair taxation.

Goals and Tactics:
  • Commission two op-ed articles in 1991 from consulting economists. As articles are published, provide to other Institute decisions for promotion and submission to appropriate policy makers.
  • Conduct at least 10 presentations by consulting economists on the excise tax issue before national, regional and state tax policy conferences.
  • Continue to utilize consulting economists for testimony and briefings. Expand appearances to include presentations to business clubs and the business press. Conduct media refresher courses for public speaking appearance and delivery of testimony.
  • Utilize the consulting economists for an op-ed program that addresses the national earmarking issue and state specific earmarking issues. As articles are published, provide to other Institute divisions and promote to appropriate public policymakers. Use field staff network to support distribution efforts.



1993 Mar 23: Jim Savarese is proposing to Cal George at the Tobacco Institute a new Op-ed program.

Outlined below is our proposed op-ed program in opposition to the use of excise taxes to finance health care.
  1. Op-ed article by Tollison for the Wall Street Journal — $ 4,000.00

  2. Rebuttal article by Bob Ekelund, Auburn University, to be submitted to the Birmingham News — $ 3,000.00

  3. "Monster" tax op-ed project using twenty economists (list attached) to submit articles in opposition to using excise taxes on cigarettes to finance health care reform - to be submitted to twenty newspapers in twenty different states — $60,000.00

    TOTAL $67,000.00
David Gay is listed as one of the proposed lucky recipients of $3,000 in largess from the Tobacco Institute for slashing out a quick op-ed. He was to submit the article to Arkansas Democrat-Gazette


1993 Aug 3: This is a series of lists dated from March to August 1993. Savarese's staff have sent these to the Tobacco Institute to progressively report successes and failures with the economists writing op-ed pieces and having them published.

    Collectively they give us a good idea as to how the network worked and how litte they managed to plant on the major newspapers (the smaller local papers were obviously easy.) It's also interesting to observe the mechanical processes and the tight control the tobacco industry and its lawyers exerted over these academic lackies.

  • The articles were either rejected, revised or passed by Jim Savarese and his staff
  • They were then sent for checking and alteration by Calvin George [Cal] at the Tobacco Institute.
  • The lawyer David Reemes who worked for the industry's main Washington lawfirm Covington & Burling then cleared them for publication.
  • The economist then received the revised copies back for onward transmission to the selected newspapers.
  • They would then send a copy to their local Congressmen without mentioning the tobacco industry's contractual arrangement.
Clearly, by 1993, many of the original network members were dropping out. The Tobacco Institute also appears to have been having problems getting even those academics who stayed loyal to write articles that justified their $2000 to $3000 payments. [Perhaps some of them developed a conscience!]

    Despite the protestations, these are not 'independent' opinion articles. They are industry-shaped, manipulated propaganda pieces designed as advocacy vehicles to promote tobacco interests in political, media and public circles — even when they don't directly mention or promote cigarettes or smoking.

    These lists are all headed 'MONSTER' Tax Op-Ed Project:
    ARKANSAS
    Prof David ER Gay, Department of Economics, University of Arkansas, Fayetteville AR
    • Mar 23 — [Designated newspaper/s] Arkansas Democrat-Gazette
    • Apr 9 — Received 4/28/93 — Sent to Cal [TI] 4/28/93 — Sent to [David] Reemes [Covington & Burling lawyer] 5/3
    • May 12 — Submitted to Arkansas Democrat-Gazette
    • May 18 — (as above)
    • June 2 — (as above)
    • June 14— Submitted to: Arkansas Democrat-Gazette
    • Aug 3 — (as above) [Sent fax 7/20/93] [It was probably rejected]



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 Gay 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.

1998 Aug 15: The Florida "Press Journal" carries an article "Government assults success" by cash-for-comments economist DT Armentano which attacks the McCain tobacco bill and the FDA.

    The list of the activities of the other economists shows that the network continued to be operated by the Tobacco Institute itself (under Walter Woodson, and Lance Morgan - both Public Affairs division). [However Savarese is still in the picture.]
However, since legally discovered tobacco documents had already begun to appear on-line, they have carefully deleted the names of the Professor of Economics who wrote each op-ed piece.

Gay is listed under the heading

ARKANSAS, University of Arkansas
PUBLISHED 7-6
    Arkansas Democrat-Gazette




He disappears from the tobacco archives at this point. This doesn't mean that he stops working for them — but only that they have decided to deal by phone and email rather than by memo.

WORTH READING
















CONTRIBUTORS:sjc2 Jb22 in22


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