378 



smoke because it is taking an inordinate risk, that they may well 

 get cancer, heart disease, emphysema, and bladder cancer, and all 

 these other problems? 



Mr. Glenn. I come back to what I have said before, 93 percent 

 of people who smoke never develop lung problems. On the other 

 hand, I know perfectly well, and I tell patients, 80 percent of the 

 people who die of lung cancer have been smokers. The interesting 

 aspect is that 20 percent of people who die of lung cancer have 

 never smoked. 



Mr. Waxman. Dr. Glenn, I suspect that you have strong views of 

 your current mission of CTR. Can you share with us what you see 

 that mission to be? 



Mr. Glenn. I see our mission to be one of elaborating fundamen- 

 tal mechanisms of diseases and we have found that the specific re- 

 search into exposing animals to cigarette smoke is superficial and 

 nonproductive. 



Mr. Waxman. My staff is telling me that since we are starting 

 a second round of questions, if you want to take a break we can 

 take a short break now. 



Mr. Glenn. I am perfectly happy, thank you, sir. 



Mr. Waxman. OK. Could you help us in understanding how CTR 

 is funded? I believe the original budget in 1954 was $1 million. Is 

 that correct? Do you know? 



Mr. Glenn. I believe it is, Mr. Waxman. I forget. 



Mr. Waxman. The current budget is $19 million. 



Mr. Glenn. Nineteen million five hundred fifty thousand dollars. 



Mr. Waxman. Where does the money come from? 



Mr. Glenn. Comes from the five major sponsor companies. 



Mr. Waxman. From 1994, what was the method of apportionment 

 of funding among your member companies and what are the actual 

 dollar amounts? 



Mr. Glenn. I can't tell you the actual dollar amounts from each 

 company, but roughly the contributions of the companies are based 

 upon their market share, a formula that they derived years ago. 



Mr. Waxman. Would you give us for the record that information, 

 and all past budgets and the share each company paid for each 

 year of your organizations existence? 



Mr. Glenn. I am sure we can develop that. 



[The following information was received:] 



We have prepared three separate tables setting forth the dollar amounts contrib- 

 uted in each year, by each contributor, to the Council and to the Tobacco Industry 

 Research Committee ("TIRC") for the General Fund, for Council Special Projects, 

 and for the Council's Literature Retrieval Division ("LRD"). (I understand that LRD 

 was a division of the Council from 1971 until 1983, that LRD compiled medical lit- 

 erature for the use of the tobacco companies, and that LRD's assets were trans- 

 ferred in 1983 to LS, Inc., a corporation that is unrelated to the Council.) This fi- 

 nancial information is non-public, and the Council's members regard it as confiden- 

 tial. We expect to provide these tables to the subcommittee promptly after we have 

 reached an understanding with the subcommittee staff with respect to procedures 

 for the subcommittee's handling of materials provided by the Council. In the in- 

 terim, I respectfully request that this letter be included at page 82 of the May 26 

 transcript. 



We have collected copies of the audited financial statements of the Council and 

 its predecessor for each year from 1963 through 1993. (In 1983, the Council changed 

 from a calendar year to a November 1 fiscal year.) We have also collected copies 

 of budgets for each year from 1954 through 1962; we are unable to locate financial 

 statements from before 1963. Again, this financial information is non-public, and 



