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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.


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
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
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




Kathy Jean Hayes     [Prof]    

(aka Cathy (not Katherine))

— A cash for comments economist from Northern Illinois University who worked briefly for the tobacco industry. —  

Kathy Hayes was working for the Tobacco Institute as a consultant before the formal recruitment of economist into the clandestine network. She only remained within the network for a few years.

These were academic economists who secretly worked on commission for the tobacco industry through the Tobacco Institute. The network was set up in November 1982 by James Savarese (working through his own company and Ogilvy & Mather PR) with later expansion nationwide through Professor Robert Tollison of George Mason University.

Tollison and Savarese acted as contractors and cut-outs, using the Center for the Study of Public Choice at GMU, which supplied the adminstration staff. They recruited ultra-libertarian economics professors at the major state universities through the Public Choice Society and various regional economics societies.

The problem is not that these scientists were ultra-libertarians, and that many of them were Tea-Party disciples of Ayn Rand, Frederick Hayek and/or Ludwig von Misen. Nor was it necessarily made worse by the fact that the industry they helped prosper made a product that caused the premature death of about four million people globally each year.

The problem is that these academics

  • exploited their trusted position as a teacher at a university to promote dubious corporate view points contrary to the public good.
  • hid their corporate links from the university administration and staff, and from the public which ultimately paid their salary.
  • exploited the public trust in universities and their reputation for independent research, for their own financial benefit.
  • allowed the tobacco industry to preview, edit and alter the reports they wrote specifically as industry propaganda.
  • wrote op-ed articles which were planted on their local newspaper — misleading both the editors and the readers,
  • maintained a claim of being 'independent academic/scientists' when writing to politicians or giving evidence at hearings, etc. after being coached by tobacco lawyers.
  • generally acting secretly as tobacco industry lobbyists.

Over a hundred professors of economics at major American universities were successfully recruited by Tollison and Savarese, and many of them remained in service to the tobacco industry for many years. Others only served for a short time, and then dropped out voluntarily ... or were found to be unreliable or unsatisfactory.

They were not paid retainers or salaries, but were erratically commissioned to perform specified functions (usually for $1000 to $3000 per project) when the tobacco industry came under attack. Some earned much more — often in the $20-40,000 range — for producing 'independent research' which was customised to produce the desired results.

Payments were never made directly from the tobacco industry to the economists. Commissions were all carefully laundered through Savarese's company or Tollison's GMU operations — and so the economist (wrongly) assumed this would provide deniability if ever challenged over selling out their academic credibility to the merchants of death.

Network beginnings:
  • 1979 Jan: Academic economists Professor Robert Tollison and Richard Wagner have been recruited by George Berman of Devon Management Resources to provide material supporting the International Committee on Smoking Issues (ICOSI... later INFOTAB)
  • 1980: Tollison and Wagner had been commissioned by ICOSI's Social Acceptability Working Party (SAWP) to write a monograph "Consumer Protection, Public Policy and Cost-Benefit Analysis"
  • 1982: Under Tollison and Public Choice guru James Buchanan, the team of Public Choice economists at Virginia Polytechnic/State University resign en masse and migrate over to the break-away, corporate funded, George Mason University (including their think-tank Center) — thus providing the tobacco industry with a Washington DC pool of unfettered free-market Randian-political economists who are all looking for outside commissions.
  • 1982 Nov: A labor economic lobbyist working for his own company (through via Ogilvy & Mather PR), James Savarese, proposes to the Tobacco Institute that they use academic economists (mainly Kenneth Greene of SUNY and Harold Hochman of CUNY) to prepare papers opposing cigarette tax excise increases in New York State.
  • 1983: The Tobacco Instittue puts the Tollison/Wagner team (which has the resources of the Center for Study of Public Choice, together with Savarese and Ogilvy & Mather PR to prepare a book "Free to Smoke" and later a propaganda booklet Smoking & Society
  • 1984 Jan /E. The Tobacco Institute is now expanding the Savarese-run network of economist to other States — mainly recruiting academic economists to write op-eds for their local newspapers. Tollison is able to provide the recruitment services through his Center for the Study of Public Choice and the Public Choice Society.
  • 1984 April: The Tobacco Institute has again put Tollison together with Savarese and his associates to prepare a pseudo-study which will become their economic defence against proposed smoking bans in New York resturants. The TI's Excise Tax Plan for this month lists 14 Public Choice economists in other States who have been recruited to help in the fight against excise increases.
  • 1984 Jun: The network has now been formalised under the name Committee on Taxation and Economic Growth. with Savarese as administrator. They have about 15 members overall and 10 active op-ed writers.


There appears to be a Cathy Hayes in the tobacco archives.
    Also there is a Kathy Hayes who is the Education Editor for The Atlanta Constitution. It is likely that this is the same person (working part-time) since the economist was at the Southern Methodist University in Dallas, Texas by 1990 and deeply involved in promoting the school voucher program.
    The Atlanta Constitution was one of the tobacco industry's most compliant conservative newspapers — always ready to publish their material.

Some key documents

• Professor of Economics, North Illinois University, Illinois. In here early years she worked extensively with Shawna Grosskopf, of Southern Illinois University at Carbondale.

• Her C.V as sent to the Tobacco Institute.

1952 Aug 8: Born

1980: PhD in Economics, , Syracuse University, Syracuse, New York

1980 June: Assistant Professor Department of Economics, Northern Illinois University

1981 Jan: - July 1982 Visiting Professor at Southern Illinois University [with Shawna Grosskopf]

1982 May: to September: consultant to the Illinois State Tax Reform Commission which was looking into the potential of higher cigarette taxes (among others). The researchers supporting the commission are listed as including

Dr Shawna Grosskopf and Kathy Hayes, Department of Economics, Southern Illinois University at Carbondale

1982 Sept: Shawna Grosskopf and Kathy Hayes have prepared a Report to the Excise and Consumption Taxes Task Force of the Tax Reform Commlssion [in Illinois]. There is no obvious slant towards support for the tobacco industry although they do conclude:

Given the relatively severe bootlegging. problens which already exist in Illinois, attempts to increase the tax on cigarettes could backfire.
[ACIR = Advisory Committee on Intergovernmental Relations]

1983 June: She becomes a Consultant to the Tobacco Institute
[Admission in C/V]

1983 July 5: Tobacco Institute regional director's activities records show for the Illinois Region that

Monday & Tuesday: worked on getting retailers to appear before the Cook County Commissioners on Wednesday. Called the company district managers for help.

    Brown & Williamson, Lorillard and Liggett & Myers responded with names of retailers to call. Philip Morris and R.J. Reynolds did not help due to various other projects they were involved in. We were able to get 5 retailers to appear in addition to Dr Kathy Hayes and Bud Kelley.

    Wednesday - picked up Dr Hayes at Meigs Field and took her to the open meeting of the Cook County Commissioners in Markham, Illinois.

    Those who appeared for the Tobacco interests were:. Dr Kathy Hayes, Bud Kelley, Margo Maple - Sun Drugs in Elk Grove, John Gerlisits - Sweeney Oil Co., Alan Sears and Greg Polickek - Mark Drugs. In addition, several liquor dealers also spoke up for their cigarette business

    His weekly report says:
Our economist, Dr, Kathy Hayes, from Northern Illinois University, DeKalb, IL, did a superb job testifying against the cigarette tax increase at the Cook County, IL suburban hearing. There may be a further hearing later this summer or early this Fall on the proposed tax increase,

    At this writing there is no word on a smoking in the workplace ordinance for the City of Chicago.

1984 June 2: The Tobacco Institute has cleared some testimony with their legal advisors (Covington & Burling). It is titled "Economic Analysis of Illinois State Cigrette Tax" and the authors are Shawna Grosskopf and Kathy Hayes. It was...

... testimony for Cook County cigarette tax hearings [which] explores rationale for cigarette taxes, statistical evidence related to elasticity of demand, and who ultimately pays such taxes.

    ACIR bootlegging findings are related to the Illinois case.

1985 Jan 31: Hurst Marshall has distributed this Tobacco Institute list of economists from the cash-for-comments network to their Regional VPs and Directors. 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]:
ILLINOIS (Rep. Crane, Rep. Rostenkowski, Rep. Russo)
  •   Professor Kathy Hayes
      Northern Illinois University, DeKalb, Illinois

1985 Jan 31: A Tobacco Institute list of economists in the cash-for-comments network, which has been ordered by State, and includes the names of Congressmen they wish to influence. It give the details of the economist who will be detailed to make the contact... probably via sending him/them a published op-ed. It lists:

ILLINOIS (Rep. Crane, Rep. Rostenkowski, Rep. Russo)

Professor Kathy Hayes
Northern Illinois University, DeKalb, Illinois

1985 Feb 6: Fred Panzer writes to Hurst Marsahll on "Change to List of Economists"

Please add the following names to the list of eoonomic experts:
  • Professor James Heins
    University of Illinois (Urbana)
  • Professor Robert McMahon
    University of Southern Maine (Portland)
Please delete from your list the following:
  • Professor Kathy Hayes, Northern Illinois University (DeKalb)

[The possible explanation for this temporary depletion is that one of the cigarette companies, or the Federal Relations TI division, had objected to Hayes working for two distinct entities. The network economists were to keep their involvement secret.]

1985 Feb 7: Judy Wiedemeier of the Tobacco Institute is writing to the regional lobbyists.

Attached for your information, are the names of economists who have been identified by our Public Relation department to assist T.I. on the federal cigarette excise tax issue. These people are also available to testify at the state level.

    If you feel this type of witness can be of assistance to you, please contact me for details and arrangements. If you have any ideas or suggestions for other economists within your state, please let me know, as we are always expanding our resources.
The attached list includes the contact details of this economist and also the Congressmen that are their targets.
(Rep. Crane, Rep. Rostenkowski, Rep. Russo)

Professor Kathy Hayes
Northern Illinois University DeKalb, Illinois

1986 Oct 3: A Tobacco Institute report on the economists network, lists the Congressmen they are expected to influence,and the economist's various academic specialities.

    This early list is probably the most detailed of all. A later section of this 43 page document also runs through the 28 main states giving the names and details of witnesses willing to speak to legislators on Taxes (almost exclusively economists), and those available as witnesses for the tobacco industry on Public Smoking issues (economists and a range of others)

    A major effort had also been made recently to enlist fire officers and brigades to counter demands for a 'fire-safe' cigarette which had low ignition propensity.

ILLINOIS, (Rep. Crane, Rep. Rostenkowski,, Rep. Russo)

[Economist:] Professor Kathy J. Hayes , Northern Illinois University, DeKalb, Illinois
[Speciality:] Tax specialist, urban economics, fiscal policy; public finance; forecasting personal income tax revenues.

[Note: however, that James Heins is listed for Illinois below.]

Tax Witnesses: Materials available
James Heins Illinois data card
"Excise Taxes: The Fairness Issue"
"More Taxes on Tobacco...."
Earmarking topic sheet
Letter writing brochure.
Public Smoking Witnesses: Materials available
Al Vogel (productivity)
Steve Schlossberg (labor implications)
Lew Solmon (economics)
Bob Klotz (enforcement)
Voter survey
Economic survey
Labor assistance
Response Analysis summaries
Public Smoking topic sheet
"Some Considerations" workplace kits
"In Defense of Smokers" reprint
"The Other Side of the Smoking Controversy" reprint
Letter writing brochure
Fire Safety Education Grant to
  • Chicago Fire Prevention Comm — Raymond R Morgan
  • Springfield Fire Department
  • Skokie Fire Chiefs' Ass. — James E Clark
Media Relations:
Contacts are in place in Bloomington, Chicago, Decatur, Eanston and Skokie. Contact Bill Toohey for assistance.

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. She is listed as specializing in:
ILLINOIS (Rep. Crane, Rep. Rostenkowski, Rep. Russo)
Professor Kathy J. Hayes
    Northern Illinois University, DeKalb, Illinois
    [Specializing in]Tax specialist, urban economics, fiscal policy; public finance; forecasting personal income tax revenues

Kathy Hayes disappears from the network records at this time. However she turns up writing articles for the Southern Economic Journal, and later in the RJ Reynolds file, which suggests that she was just on casual contract.

1990: The Annual Report of the Southern Economic Association has her listed as a Trustee with the Southern Methodist University

1990 June: /E John E Chubb, (Brookings Institute — Center for Education Innovation... a subset of the Manhattan Institute) has been proposing a educational voucher system to privatise US education (also Edison Project). This report says:

John Chubb is one of a 14-member task force who issued a study that "proposed a set of bold, innovative solutions designed to bring about... improvements in Texas public schools," entitled Choice in Education: Opportunities for Texas (March, 1990).

    In addition to Chubb, "Members of the Task Force producing this study included... Dr John Goodman, president of the National Center for Policy Analysis, Dallas; Allan Parker, associate professor of law, St. Mary's University, San Antonio; Dr Linus Wright, former under secretary of education; Dr Kathy Hayes, associate professor of economics; and Fritz Steiger, president, Texas Public Policy Foundation." (Texas Public Policy Foundation REPORT, Summer, 1990, Vol. 11, Issue 11, pages 34.) Dallas Eagle Forum also reportedly co-sponsored the John Chubb-Terry Moe conferences in March, 1990....

1998 June: RJ Reynolds is running its own organised letter-writing campaign in Illinois against excise tax increases. Their lobbyists have convinced a large number of Democratic politicians, academics and bureaucrats to oppose the Federal tax increases by writing letters to their Congressmen (copies enclosed):

  • Jerry P Genoa, the Mayor of Calumet
  • Laura Block, City Council of Chicago
  • Cady Gibbons, Exec Director of Cook County Democratic Party
  • Frank Giglio, Committeeman at Thornton Township Regulah Democratic Org.
  • Reg Roth, Committeeman, 43rd Ward Democratic Party
  • Sandra Reed, Committeeman, 46th Ward Regular Democrtic Party
  • Eileen Carey, Commissioner, City of Chicago
  • Edyth Cole, Illinois Association of Minorities in Government
  • Don Hohenadal, North District Coordinator, City of Chicago
  • Christopher S Grant, City of Chicago
  • Meg Schaafer, City Council of Chicago
  • Mary B Gallagher, (Democratic Party worker) Chicago
  • Patricia Feeley, Seargant at Arms, Chicago City Council
  • Meredith O'Connor, Department of Planning & Development, City of Chicago

    Attached is a chart which provide information about who each of the letter-writers knows and their position in the various administations.

    Another five have made phone calls to Representative Bobby Bush

Kathy Hayes is included here. She is now listed as:
Kathy Hayes
African American Liaison for Cook County State's Attorney.
Has known Rush for years



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