Friends of Tobacco

Summer 1998

403 B East New Bern Road, Kinston, North Carolina 28501
Phone and Fax (919) 522-4769 *

Table of Contents

Forced Out Of America?

The proposed tobacco settlement, a reed upon in principle by the tobacco industry and the Attorneys General of the various States with whom the negotiations took place, was harsh. The settlement would cost the tobacco industry $368.5 billion, and would not grant them immunity from future lawsuits. As harsh as it was, the tobacco industry agreed to its terms because the alternative would ultimately be worse for America.

Most Americans, if asked today, would say they believe the attack against the tobacco industry is simply a question of "health," and that the States have an obligation to those taxpayers within their boundaries to seek compensation for "smoking-related illnesses" that were paid for from the public treasury.

It sounds good. It sounds logical. It sounds "politically-correct," and, most of all, it sounds right. Almost.

There's more to the story than the "public rhetoric."

The dispute over the regulation of the tobacco industry is not a dispute. It was settled. It was agreed.

When the initial settlement was reached and agreed upon by all parties, the Clinton White House, which had no constitutional authority to interfere, flatly rejected the deal because it was not restrictive enough. Because the tobacco industry, under the terms of the settlement, agreed to voluntarily place itself under the jurisdiction of the FDA, Clinton, after rejecting the settlement, began to implement the control of the industry by the FDA.

At the same time, two bills began making their way through Congress. The first, S.1415, was sponsored by Commerce Chairman John McCain (RAZ). The McCain bill requires more visible warning labels on cigarette packaging, halts outdoor advertising, bans cigarette vending machines (except in adult-only establishments), eliminates human or cartoon characters in ads, and mandates that all cigarette advertising be black and white. These restrictions were part of the settlement debate that was agreed on by all parties.

However, McCain's bill exceeds the mandate of the settlement by increasing the penalties to the tobacco industry from $368.5 billion to $506 billion. Another bill, S.1638 introduced by Senator Kent Conrad (DND) would further assess an annual penalty of up to $8 billion if teenage smoking reduction targets are not met.

McCain's bill by itself jeopardizes the financial viability of the tobacco industry. McCain himself challenges the tobacco industry to "...see whether they can win any [public relations] battle they might intend to wage." McCain claims the backing of both Democrats and Republicans alike in enacting a bill that will cost the tobacco industry $21 billion per year.

The question must be asked:
"How much is enough?"

The parties involved in the tobacco settlement thought $368.5 billion was enough. However, the Clinton White House and the senators on the Commerce Committee disagreed and have shattered the original agreement by marking up the bill to fit their personal agenda.

Again, the question must be asked:
"Why?"

Because the debate, rhetoric aside, is not about health. If s about controlling the tobacco industry to the point where it is impossible to stay in business. It's about politicians gaining wealth and recognition by forcing the tobacco industry overseas. When this happens, the effects on our economy will be staggering.

Hundreds of thousands of jobs will be lost in virtually every sector of the economy, including small businesses which rely on tobacco sales for their livelihood. This wholesale abrogation of constitutional rights of one unpopular industry will set a precedent for equivalent treatment of other industries which may become controversial and could also lead to the degradation of everyone's constitutional rights. A new "prohibition" era will take not only America's jobs, but also adult consumers' right to purchase the kinds of tobacco products they wish.

Congress is altering the terms of a settlement made in good faith between the states and the tobacco industry. Deal breaking is dishonorable and will force the tobacco industry to survive only by taking its business to more understanding governments.

How can the United States hope to replace the $44.7 billion in GNP produced by the core industry and suppliers alone? What will a $20 billion reduction in Federal, State and Local taxes do to the budget deficit? And what about the hardship for employees of tobacco manufacturers who lose their jobs as well as the over 500,000 farm families who rely on the industry for survival? The Congress of the United States can hide behind the "health and welfare" rhetoric only until the impact of their legislative decisions are felt in the purses and billfolds of America. At that time, Americans will reply at the ballot box. Unfortunately, at that moment, when the jobs have left America, it will be too late to do anything except replace congressmen - then both the American public and its congressmen will be seeking new employment.


MEET BIG BROTHER.

They would like you to
believe that they're just
interested in your health.

But, the attack mandated by Congress
Against tobacco is not about health...
IT'S ABOUT CONTROL!

The essence of American citizenship is the right to choose how we will live our lives, raise our children, and praise our God. Many of those who founded this nation died so that we would have these freedoms. How could we today allow Big Brother to make our personal choices for us? The tobacco issue is just one of many of a growing number of Big Brother harassments that are designed to accustom us to the intrusion of government in our daily lives Every year, more and more intrusions of this type are enacted. And every year we lose a little more of our freedom.

Now, the federal government is attempting to exert control over one of the first American industries; an industry that provides more than one million jobs for our people. Big Brother tells us he is concerned about health. In reality, he is concerned about control. Today it's the tobacco industry, tomorrow, the industry they will attack - as they did in 1920 - will be the liquor industry. Then it will be the fast food restaurant or the widget factory down the street. We must constantly remember that this nation is by the people and for the people. Take control of your constitutional rights and your country by voting out those who protect you from yourself.


F.O.T. Hosts 2nd Annual Golf Tournament



The Jenny K Jewelry Team, winners of
the 2nd Annual Golf Tournament
The Friends of Tobacco organization recently hosted their 2nd Annual Golf Tournament. The event was held on April 2, 1998 at the Ironwood Golf & Country Club in Greenville, NC. More than 140 players - representing every segment of the tobacco industry - participated in the 18-hole golf tournament.

The event began with breakfast while the teams were getting organized. Following the kick-off start, and a group photograph, players enjoyed a beautiful spring day of golf and fellowship. For lunch, the players enjoyed a North Carolina tradition: barbecued pork with all the trimmings. The evening festivities included an awards banquet and silent auction. Businesses from throughout the United States donated a variety of products towards the auction and giveaways. Donated items included silver ashtrays, handmade cigars, golf bags and more.

Tournament Promotions of Raleigh, NC helped organize the event. Featured prizes included a $1 Million Dollar Hole-In-One, 810,000 Putt-For-Cash with four putters given away, Guess-the-Distance Contest, and a Grand Prize drawing for a golf trip to Hilton Head Island, South Carolina.

Ted Lusch, president of Jerry Brothers of Richmond, Va. said, "This event clearly brings the tobacco industry and family together. Look around and you will see companies representing every segment of tobacco. Many of these co.'s representatives have traveled from all over the United States to be here and support this fine organization. Jerry Brothers is proud to support this organization and participate in this great event. Count us in next year!" John LaMonica, Golf Pro at Ironwood Golf & Country Club said, his is the largest event we host. This event caters to the players, offering gifts to everyone participating, drinks, snacks, contests to win money, golf trips and more. About the food ... no one goes hungry with breakfast and lunch being served followed by a full banquet in the evening. We are proud to host this event and look forward to next year."

The tournament winners were from Jenni K Jewelry (Greenvdile, NC) with Low-Net, and Haynes Rubber & Supply (Roc Mount, NC) with Low-Gross. Ms. Irma Smart, representing Smart Machines Corporation from Virginia, won the ladies division trophy.

Jeffrey Williams, corporate vice-president of Southern Overseas International Exporters of Wilmington, NC said, "The annual event gives us a chance to spend some very worthwhile time with all our tobacco customers right in our own backyard for a couple of days. We very much appreciate this opportunity presented to us by the Friends of Tobacco organization." According to Dean Rouse, chairman of Friends of Tobacco: "The 2nd Annual Golf Tournament raised $10,340 and brought the industry together."

The following companies participated in this year's tournament:
Alleghany Warehouse Co., Inc.
Atlantic Container Lines
Brown & Williamson Tobacco Co.
Cho Yang (America), Inc.
Clinton Tube Co.
Degesh America, Inc.
DHS Cigar LLC
DIMON International, Inc.
Dresco Belting Co.
E & B International, Inc.
Evans Machinery & Metal Fah, Inc.
Evergreen America Corporation
Export Leaf Tobacco Co.
Fahreeka International, Inc.
Farrell Lines, Inc.
First Citizens Bank & Trust Co.
Food Lion, Inc.
Fred P. Gaskell Co., Inc.
Golf 101
Hampton Roads Shipping Association
Hanjin Shipping Co.
Hapag-Lloyd (America), Inc.
Haynes Rubber & Supply, Inc.
Independent Container Lines
Insight on the News
Ironwood Golf & Country Club
Jenni K jewelry
Jerry Brothers Industries
Johnson Industrial Machinery
Liggett Group, Inc.
Maersk, Inc.
McDonald Motorsports
McLeod Belting Co.
Mediterranean Shipping Co.
NC Department of Commerce
NC State Port Authority
Norton Lilly International, Inc.
Onslow Container Service, Inc.
PP. Payne, Inc.
Panalpina, Inc.
Pepsi Cola of Greenville
P6well Manufacturing, Inc.
Proctor & Schwartz, Inc.
Quality Inns & Suites
R.J. Reynolds Tobacco Co
. RGZ, Inc.
Shipwatch Warehouse
Smart Machines, Inc.
Smoke Rings
Southern Container Corporation
Southern Overseas, Inc.
SRC VISION, Inc.
St. Laurent Packaging Co.
Standard Commercial Tobacco Co.
Tenneco Packaging Co., Inc.
TMX Shipping Co.
Tobacco International, Inc.
Tournament Promotions, Inc.
Union Camp, Inc.
United States Tobacco Corporation
Universal Leaf Tobacco Corp.
US Cellular
Virginia International Terminals, Inc.
Wilhelmsen Lines, Inc.
WITN-TV 7
World of Golf
Wyatt Transfer, Inc.
Yang Ming Line


F.O.T. Debuts New Cigar


The Friends of Tobacco organization is test marketing a new cigar. The cigar is made from North Carolina tobaccos, featuring a Dominican binder and Indonesian Sumatra Wrapper. Dean Rouse, chairman of Friends of Tobacco said, "This has been a three-year project getting this cigar to this stage. Everyone that tries the cigar really enjoys its mild taste and aroma. When we started this project, it was our objective to create another use for North Carolina's tobacco and help our local tobacco farmers. If the sales of this cigar continues to increase, we will start looking for a major company that can handle marketing and distribution. We are pleased with the results so far."

The cigar features the Friends of Tobacco logo and is available in 5-10-25 packs. Sizes are robusto, corona, lonsdale and double-corona. Retail cost for the cigar is approximately $3. Businesses that would like to have the cigars double-handed - featuring their company logo - have that option. Proceeds from the sale of the cigars benefit the Friends of Tobacco organization and can be purchased by calling 888-316-2667 or by faxing 252-523-4018.


Study Finds No Link Between ETS and Cancer

One of the world's leading health organizations has secretly published a study that shows not only that there might be no links between passive smoking and lung cancer, but that it could even have a protective effect.

The astounding results are set to throw wide-open the debate on passive smoking health risks.

But the World Health Organization, which commissioned the 12-center, seven-country European study, has failed to make the findings public, and has instead, published only a summary of the results in an internal report.

Nobody at the WHO headquarters in Geneva would comment on the findings, despite repeated calls.

At it's international Agency for Research on Cancer in Lyon, France, which coordinated the study, a spokesperson would say only that the report had been submitted to a science journal. No publication date is set.

The findings are certain to be an embarrassment to the WHO, which has spent years and vast sums on anti-tobacco campaigns.

The study is one of the largest ever to look at the link between passive smoking - or environmental tobacco smoke (ETS) - and lung cancer, and had been eagerly awaited by medical experts and anti-tobacco groups.

Yet, scientists have found that there was no statistical evidence that passive smoking caused lung cancer. Spread the word.


MEET OUR BOARD OF DIRECTORS
(l-r): Gary Corbett, president, Fred Stoker & Sons, Inc.; Mary Hardy, tobacco grower; Andy Anderson, country commissioner; Hassel Eason, Main Street Tobacco; Dean Rouse, chairman and tobacco grower; John C. Smith, Jr., treasurer and CPA; Cheryl Turner, secretary, Kingston Tobacco Shoppe; George Simpson, Chilean Nitrate Corp.; (not pictured) Jamie Blewett, vice president, Hail & Cotton; Gary Johnsey, advisor, White & Allen, PA.


Annual Fund Raising Campaign Begins

The Friends of Tobacco organization has begun its annual 1998 fund-raising campaign and needs your support.

Together, we have defeated every piece of legislation that has come up against our industry. Yet, how long can we continue? Even before they laid the McCain bill to rest, other anti-tobacco folks in Washington came up with plans to replace the McCain hill. The $428.5 billion Hatch-Feinstein Tobacco Bill is just one example of legislation currently in progress. The fact remains that the anti-tobacco establishment does not care about the tobacco industry. Their only interest is to put it (the tobacco industry) out of business. The singling out of the tobacco industry is not about health or keeping children from smoking. It's about money and power!

From the very beginning of this organization hack in 1991, we have worked together to maintain our way of life, traditions and freedoms. We have depended on each other to get things done and results we've got! From fighting tax proposals to educating the public on tobacco issues, our members know when they call our office we respond. When people contribute financial support to Friends of Tobacco's united efforts, they know we will do everything possible to accomplish our mission. From writing letters to attending special events - or even getting on a bus to go to Washington, D.C. - we know we can count on each other. Supporting each other makes us a strong and respected organization. Our efforts must continue, but to do so, we need your help.

We encourage you to make a contribution to the Friends of Tobacco today. Encourage your friends, family members or employees to do so also. Display the Friends of Tobacco logo on your letterhead, business cards or wherever people can see it to show united support for our tobacco industry and personal freedoms. Enclosed is a membership form that details everything about Friends of Tobacco and includes some gifts to those that sign up. Please fill this out today, include your generous contribution, and send it back to Friends of Tobacco. If you have any questions, Please call 252.522.4769.

Thank you for your continued support.


Get Free Stuff!

 Handmade Cigars • Lighters • T-shirts • Caps • Coffee Cups • Cutters • Humidors • New Products • Discount Coupons • Golf Stuff and much more!

Limited Time Offer while supplies last The Friends of Tobacco organization would like to send you a box full of free stuff! As part of our 1998 Membership/Fund-Raising Drive, companies throughout the United States have donated a variety of products and Discount services to Friends of Tobacco. All members that sign-up after June 22, 1998 will receive these gifts.
When you return this membership form, we will send you a full box of free stuff. No box will contain the same stuff and this is a limited time offer while supplies last.

YOUR BOX COULD CONTAIN AS MUCH AS $50 OR MORE IN STUFF.

We want to encourage all friends of tobacco to join forces and support this industry and, freedom of choice. There is a strength in numbers and the politicians will listen to organizations with large memberships. Let's work together and preserve our rights before the politicians take over completely. Please join with us by returning your membership/fund-raising form today. We will get your box of stuff right out to you.

The Friends of Tobacco was founded on November 14, 1991 by a group of representatives from every segment of the tobacco industry. A national non-profit organization, its mission was to create a united tobacco effort to promote and educate the general public on tobacco issues.

Today, Friends of Tobacco is more than 15,000 members strong and has become one of the most respected authorities on tobacco issues. The rapid growth of the organization has allowed it to incorporate numerous benefits for its members. Friends of Tobacco operates and maintains the world's largest database of tobacco contacts and works very closely with other tobacco organizations and mediums in support of the industry. Members of the organization can simply make one phone call to locate contacts for any type of tobacco information. The purpose of the Friends of Tobacco is to:

Tobacco: Is the end near?

As farmers throughout North Carolina get ready to start harvesting their 1998 crops they wonder... is the end near? Marvin Rouse, a sixth-generation tobacco farmer says, "Washington has gone crazy! When they put me out of business, where will they go next? The so-called leaders in Washington need to get their heads on straight and let adult folks decide what is right." Tobacco is North Carolina's number one cash crop - generating more than $1.2 billion in warehouse sales.

Tobacco markets are scheduled to open the end of July. For more information on tobacco's economic importance call Friends of Tobacco at 252-522-4769.




F.O.T. Membership Form


Below is a membership application that can be printed off, filled out and mailed to us. Please do so and join today. If you would like to serve on any Friends of Tobacco committees, please let us know.

Exciting news will be forthcoming to our membership and we look forward to being able to get this information to you. Let's continue to work together to support tobacco and freedom. If we don't care -- who will? Please mail your application today. Thank you.

Sincerely,

Dean Rouse
Chairman

Friends of Tobacco Membership Form

Please check all that apply, enclose with your check made payable to: Friends of Tobacco and mail to: 403 B East Bern Road, Kinston, NC 28501. 

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MEMBERSHIP FEES:   $20 Individual - $25 Small Business - $50 Corporation

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Sponsorship Invitation and Renewal Form

Companies needing their sponsorship packets for new or renewed sponsorship, please fax or mail this form back to us. Your sponsorship packet will be sent directly to you. Our fax is (919) 522-4769, our address is 403 B East Bern Road, Kinston, NC 28501. 

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Again, thank you for your support of Friends of Tobacco.


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