595 



cigarette advertising guides to encourage cigarette manufacturers 

 to publish the tar and nicotine content expressed in milligrams of 

 the mainstream smoke from a cigarette, declaring that to be infor- 

 mation concerning cigarettes which may be material and desired by 

 the consuming public. Time has proven the FTC to have been right 

 and that consumers have shown an interest in and differing pref- 

 erences for different levels of tar and nicotine. 



Moreover, since 1971, American has been governed by and has 

 adhered to an FTC Consent Order requiring American to publish 

 in its advertisements for low tar cigarettes tar and nicotine data 

 as determined by the testing method employed by the FTC in the 

 testing of the smoke of its domestic cigarettes. 



Through tobacco blends, filtration, ventilation, American Tobacco 

 has, on a sales-weighted average, reduced tar and, consequently, 

 nicotine levels as determined by the FTC method. The tar and nico- 

 tine data for each of American's products are published. American 

 carefully monitors its finished cigarettes, and the published data to 

 assure that the tar and nicotine figures are accurate. 



Thus American Tobacco manufactures and sells cigarettes with 

 tar and nicotine content in response to the consumer dem^and for 

 different types of cigarettes, and provides correct information to 

 consumers about those amounts. American has no desire or intent 

 to manipulate nicotine. 



At no time has the American Tobacco Company attempted to 

 market a cigarette based upon nicotine content. Or more generally, 

 has it ever designed or marketed a cigarette with the purpose or 

 intent of selling nicotine. Rather, American has always considered 

 that it sells cigarettes and that nicotine is one of the several intrin- 

 sic properties characteristic of the tobacco itself. 



Thank you for your attention, Mr. Chairman. 



Mr. Waxman. Thank you very much, Mr. Johnston. 



Next I want to hear from Mr. Horrigan. 



TESTIMONY OF EDWARD A. HORRIGAN, JR. 



Mr. Horrigan. Thank you Mr. Chairman and fellow members of 

 the committee. My name is Ed Horrigan, Jr., and I am chairman 

 and chief executive officer of the Liggett Group. Although I've only 

 somewhat recently joined the Liggett, I have had the pleasure of 

 addressing this subcommittee on a prior occasion. 



After having served in the military and then in companies in 

 other industries in this country for over 20 years, I joined the to- 

 bacco industry 16 years ago. And then in 1989 I retired as chair- 

 man and CEO of Reynolds Tobacco, as well as vice-chair of RJR 

 Nabisco. I came out of retirement to rejoin the tobacco industry 

 mindful of the challenges presented to it at this time. 



And also with the knowledge, bom of my experience, that the to- 

 bacco industry is one of the respectable American industries that 

 make up American commerce. It acts responsibly in its business 

 practices, and it produces a product recognized world-wide for its 

 quality. 



And, therefore, I am pleased to have this opportunity to address 

 the subcommittee on behalf of Liggett on the matters that were 

 discussed during your meeting earlier on March 25th. 



