687 



Congressman Synar also asked whether "Philip Morns, its attorneys or 

 any of its employees, threaten[ed] a court injunction that would be sought 

 against Dr. DeNoble if the Journal or the article was published'" I answered. 

 "Not to my knowledge, sir, and I have investigated to some extent." I am 

 unaware of any threat of a court injunction against Dr, DeNoble. As a result of 

 the publication, on several different occasions, of the results of research 

 conducted while with the Company, without Company approval as was required 

 by his employment agreement, an attorney with the Company wrote to Dr. 

 DeNoble, two years after he left the Company, saying: 



"The Company cannot tolerate this type of conduct. As I stated in my 

 earlier letter, if you wish to publish or otherwise utilize research from 

 Philip Morris, you must request and receive permission from the 

 Company. Any further breach of your agreement will result in action 

 being taken." 



The Company acted appropriately. No legal action, however, was ever taken 

 against Dr. DeNoble by the Company. 



Finally, Mr. Wyden asked me whether the Company is currently the 

 subject of a potential antitrust action by the Department of Justice over our 

 refusal to develop a fire-safe cigarette. I answered, "I don't know that, sir." I 

 was confused by the question and, as a result, my answer was incorrect. On 

 January 11, 1994, the Department of Justice, Antitrust Division, issued a Civil 

 Investigative Demand (CID) directed to Philip Morris Incorporated, as part of 

 "an antitrust investigation to determine whether there is, has been, or may be a 

 violation of Section 1 of the Sherman Act." The investigation is into "joint 

 activity to restrain competition in the manufacture and sale of cigarettes, 

 including joint activity, to limit or restrict research and development or product 

 innovation." We are informed that the focus of the investigation is into 

 allegations of joint industry activity to restrict the development of a "fire-safe" 

 cigarette. Therefore, we are the subject of a Department of Justice antitrust 

 investigation related to the development of a "flre-safe" cigarette. 



I appreciate having this opportunity to clarify the Record. Should a 

 further review require additional clarification, I will advise you promptly. 



cc: The Honorable Thomas J Bliley 

 Ranking Minority Member 



