542 



Mr. Waxman. Mr. Campbell, we'd like to start with you. And I 

 guess the best thing to do is to pass the microphone right in front 

 of you. 



TESTIMONY OF WILLIAM I. CAMPBELL, PRESIDENT, PHILIP 

 MORRIS U.SA., ACCOMPANIED BY KATHY ELLIS, DIRECTOR 

 OF RESEARCH; JAMES W. JOHNSTON, CHAIRMAN, RJ REYN- 

 OLDS TOBACCO CO., ACCOMPANIED BY ANDY SCHINDLER, 

 HEAD OF MANUFACTURING, AND RICHARD COOPER, COUN- 

 SEL; THOMAS E. SANDEFUR, JR., CHAIRMAN, BROWN & 

 WILLIAMSON TOBACCO CORP., ACCOMPANIED BY TILFORD 

 F. RIEHL, VICE PRESIDENT; ANDREW H. TISCH, CHAIRMAN, 

 LORILLARD TOBACCO CO., ACCOMPANIED BY ALEXANDER 

 SPEARS III, VICE CHAIRMAN; DONALD S. JOHNSTON, PRESI- 

 DENT, AMERICAN TOBACCO CO.; EDWARD A. HORRIGAN, JR., 

 CHAIRMAN, LIGGETT GROUP, INC.; AND JOSEPH TADDEO, 

 PRESIDENT, U.S. TOBACCO CO. 



Mr. Campbell. Thank you, Mr. Chairman, distinguished mem- 

 bers of the subcommittee. In recent weeks a number of charges 

 have been leveled against the tobacco industry generally, and Phil- 

 ip Morris specifically. I sincerely hope that you and other members 

 of the subcommittee are today interested in separating the facts 

 from the rhetoric regarding issues raised a few weeks ago in Com- 

 missioner Kessler's presentation. 



Be that as it may, our consumers are being misled and when 

 that happens PhiUp Morris has and will continue to speak out 

 loudly and clearly. Our consumers deserve to know the truth, and 

 I thank you for creating a forum that allows me the opportunity 

 to set the record straight. I have a few charts to supplement my 

 testimony. We have copies of them available here. 



Philip Morris does not add nicotine to our cigarettes. Philip Mor- 

 ris does not manipulate nor independently control the level of nico- 

 tine in our products. There were a number of incorrect statements 

 or assumptions in Commissioner Kessler's presentation. These is- 

 sues are not new and many require a detailed rebuttal. 



The claim that cigarette smoking is addictive has been made for 

 many years. The fact that tar and nicotine levels vary among our 

 many products has been publicized for over 20 years. The process 

 by which cigarettes are manufactured, and which at our invitation 

 FDA representatives saw first hand several weeks ago, has been 

 publicly known for over 50 years. And the call for FDA to assert 

 or be given jurisdiction over cigarettes has been made and rejected 

 by the FDA and the courts on several occasions in the past. 



To the extent possible in the time available today, my colleagues 

 and I will try to answer the subcommittees questions, and we will 

 be happy to supplement the points we make in a detailed written 

 submission. 



Point one, Philip Morris does not add nicotine to our cigarettes. 

 The claim that Philip Morris secretly adds nicotine during the 

 manufacturing process to keep smokers addicted is false. The proc- 

 esses used to manufacture cigarettes have been a matter of public 

 record for years in patent filings and in the published literature. 



The result of that processing, cigarettes with varying levels of tar 

 and nicotine reflecting a wide variety of consumer preferences, has 



