WARNING: This site deals only with the corporate corruption of science, and makes no inference about the motives or activities of individuals involved.
    There are many reasons why individuals become embroiled in corporate corruption activities - from political zealotry to over-enthusiastic activism; from gullibility to greed.
    Please read the OVERVIEW carefully, and make up your own mind.

OPINION ONLY

Terry Anderson was a cash-for-comment economist at the University of Montana, who moved across to the Property and Environment Research Center (PERC), and then to the Hoover Institution.

Anderson became recruited into a clandestine network of academic economists who secretly worked for the tobacco industry through the Tobacco Institute. The network was set up in November 1982 by James Savarese (working through his own company and Ogilvy & Mather PR) with later expansion nationwide through Professor Robert Tollison of George Mason University.

Tollison and Savarese acted as contractors and cut-outs, using the Center for the Study of Public Choice at George Mason University ( GMU), which supplied the adminstration staff. They recruited ultra-libertarian economics professors at the major state universities through the Public Choice Society and various regional economics societies.

The problem is not that these scientists were ultra-libertarians, and that many of them were proto-Tea-Party disciples of Ayn Rand, Frederick Hayek and/or Ludwig von Mises. Nor was it necessarily made worse by the fact that the industry they helped prosper made a product that caused the premature death of about four million people globally each year.

The problem is that these academics

• exploited their trusted position as a teacher at a university to promote dubious corporate view-points contrary to the public good.
• hid their corporate links from the university administration and staff, and from the public which ultimately paid their salary.
• exploited the public trust in universities and their reputation for independent research, for their own financial benefit.
• allowed the tobacco industry to preview, edit and alter the reports they wrote specifically as industry propaganda.
• wrote op-ed articles which were planted on their local newspaper — misleading both the editors and the readers,
• maintained a claim of being 'independent academic/scientists' when writing to politicians or giving evidence at hearings, etc. after being coached by tobacco lawyers.
• generally acting secretly as tobacco industry lobbyists.

Over a hundred professors of economics at major American universities were successfully recruited by Tollison and Savarese, and many of them remained in service to the tobacco industry for many years. Others only served for a short time, and then dropped out voluntarily ... or were found to be unreliable or unsatisfactory.

They were not paid retainers or salaries, but were erratically commissioned to perform specified functions (usually for $1000 to $3000 per project) when the tobacco industry came under attack. Some earned much more — often in the $20-40,000 range — for producing 'independent research' which was customised to produce the desired results.

Payments were never made directly from the tobacco industry to the economists. Commissions were all carefully laundered through Savarese's company or Tollison's GMU operations — and so the economist (wrongly) assumed this would provide deniability if ever challenged over selling out their academic credibility to the merchants of death.

His Hoover puff-piece says:

His research helped launch the idea of free market environmentalism and has prompted public debate over the proper role of government in managing natural resources. He is the cochair of Hoover's Property Rights, Freedom, and Prosperity Task Force.

His work helped launch the idea of free market environmentalism and has prompted public debate over the balance between markets and government in managing natural resources.

Anderson is the author or editor of thirty books. Among these,

• Free Market Environmentalism, which was coauthored with Donald Leal [a senior fellow at Hoover], received the 1992 Sir Antony Fisher International Memorial Award.
  
• Property Rights: Cooperation, Conflict, and Law, coedited with Fred S. McChesney (Princeton University Press, 2003),
  
• Property Rights: A Practical Guide to Freedom and Prosperity (Hoover Institution Press, 2003),
  
• You Have to Admit It's Getting Better: From Economic Prosperity to Environmental Quality (Hoover Institution Press).
• [with Peter J. Hill], The Not So Wild, Wild West: Property Rights on the Frontier (Stanford University Press), was awarded the 2005 Sir Antony Fisher International Memorial Award. Two coedited volumes have been recently published:
• Self-Determination: The Other Path for Native Americans (Stanford University Press 2006) and
• Greener than Thou: Are You Really an Environmentalist? (Hoover Institution Press 2008).

Anderson has published widely in both professional journals and the popular press, including the Wall Street Journal, the Christian Science Monitor, and Fly Fisherman.

Anderson received his B.S. degree from the University of Montana in 1968 and his Ph.D. degree in economics from the University of Washington in 1972, after which he began his teaching career at Montana State University, where he won several teaching awards.

The 1985 Tobacco Institute document, "Federal Markets", which was sent to the Tobacco Institute's Regional and State Directors, provided a long list of the allies the industry had among academic economists in opposing the earmarking of cigarette excises for healthcare and for other purposes. The industry was particularly interested in attacking the Food and Drug Administration (FDA) which it always feared would attempt to regulate cigarettes as a drug.

The Tobacco Institute's contractors kept a registry of those academics available to write articles or letters on demand, provide witness services at legislative or local ordinance hearings, etc. or give lectures to various influential bodies — or have one-to-one meetings with legislators. They were never required to divulge the industry connections, and they were never required to make any outright statement in support of smoking ... in fact, the complete opposite. Those who could maintain proudly that they were non-smokers were seen to be more sensible, and to have more credibility with the gullible readers who thought that political influence involved brass-bands and flag waving zealots.

Writing economic and political op-ed pieces and letters to the editor were the easiest way for these academics to earn some quick cash without sticking their neck out enough to be noticed. In their articles they attacked the principle of cigarette taxes, not the taxes themselves. They attacked the idea of the FDA extending its mandate, rather than the question of whether nicotine was a drug.

Payments were laundered through a couple of channels linked to the George Mason University's Center for the Study of Public Choice and its director Robert Tollison, and also through a labor/economics lobbyist named James Savarese.

The purpose of the network was to provide propaganda and lobbying services to the tobacco industry in all 50 US States, utilizing trusted and prominent academics at the local universities, and the scam ran very successfully for a couple of decades. It was considered influential enough for the Tobacco Institute to continue its funding when other projects suffered budget cuts. As a result, hundreds of op-ed articles appeared in many dozens of influential newspapers across America.

Some key documents

• Professor of Economics, Montana State University. He worked in collaboration with Professor Richard Stroup.
    Keith Anderson ran the Montana Taxpayers Association and provided witness services for the tobacco industry.

1968: BS degree from the University of Montana

1972: PhD degree in economics from the University of Washington

1984 Jul: The Tobacco Institute's Cigarette Excise Tax Plan.

The plan augments our basic lobbying efforts by relying on groups outside the industry — some not regularly associated with the industry — to argue against excise taxes for us.

    It is an ambitious program, based on the notion that many of the most effective protests against tobacco taxes will come from groups philosophically distant from The Institute. Many such groups agree with us on the excise issue, even though they disagree with us on other matters.

    At the federal level, supporting Congressional members from the tobacco states is essential to our lobbyists. The tobacco members consistently vote as a unified group — something that is rarely seen in Congress today. They are our lobbyists' most important resource.

    The program recommends that economic and other consultants assist us in developing, "packaging," and presenting our anti-excise arguments in legislative testimony or meetings with coalition members.

Resources:
Economic consultants with different areas of expertise will conduct research and act as spokespersons for The Institute and organizations supported by The Institute. Specific activities with economists are discussed throughout the tactics.

Tactics:

• Stimulate reputable public finance economists at key state universities to determine the validity of state revenue forecasts, perhaps on behalf of state business organizations and present arguments against excise taxes in various forums; e.g., meetings with potential coalition members or budget officials.
• Encourage economists to make the case against regressive taxation in meetings with potential coalition members and legislators.
• Retain public finance economists affiliated with non-profit organizations to research the subject and use their findings in forums such as:
  • Private meetings with state legislators or staff ;
  • formal testimony before government bodies ;
  • targeted media appearances;
  • speeches before business, civic, labor, and other groups ;
  • tax symposia in key states where the proceedings could be published for use in other states ; and
  • articles which raise the visibility of key arguments in the business, academic, and popular press.

Strategies:

• Presenting specific members of the House Ways and Means and Senate Finance Committees with arguments prepared by economists with whom they share some common interest; e.g college affiliation, service on the same commission.
• Gaining the support of Citizens for Tax Justice (CTJ), the most influential labor/liberal tax reform group in the country, in opposition to excise taxes.
• Relying on the AFL-CIO — via The Bakery, Confectionery, and Tobacco Workers Union — to ensure that the labor/liberal tax package that emerges in the next session of Congress does not include tobacco.

Appendix: A list of economists in key states who may be willing to act as industry and third-party spokespersons on the tax issue.
Following is a list of economists in key states who might assist us as experts receiving honoraria. We have begun contacting them to ensure their willingness and expertise. We are asking each about past experience; work with similar issues; previous work with the industry; published articles or research; and availability.

    Our intent is to have a group of individuals whom we can call upon as needed to testify, conduct special research and discuss their research projects and/or views on excise taxes with budget officials, potential coalition members, legislators and the media.

1985 Jan 31: Hurst Marshall has distributed this Tobacco Institute list of economists from the cash-for-comments network. It has been organise by State, and includes the names of Congressmen they wish to influence.

Attached for your information are the names of economists who have been identified by PR to assist TI on the federal cigarette excise tax issue.

These people are also available to testify at the state level.

    If you feel that this type of witness can be of assistance to you on state cigarette tax issues, please contact Fred Panzer for details and arrangements.

    Please notify your lobbyists as to the availability of these people. At the same time, you may wish to ask them for their ideas or suggestions for other economists within their states.

MONTANA (Sen. Baucus)
Professor Terry Anderson
Montana State University, Bozeman, Montana

1985 Feb 21: Roger Mozingo of the Tobacco Institute is sending his state directors a list of resources available to fight against excise taxes in their states. Terry Anderson heads their state list of available economic witnesses for Montana.

1985 Mar: Tobacco Institute document "Federal Markets" on the likely allies the industry has acquired to oppose the earmarking of cigarette excises for healthcare.

Market: Montana
Positive Actions by Local Allies:
Academics: Professor Terry Anderson (Montana State University) wrote an op-ed article on tax reform and submitted to the Billings Gazette. Editor is considering for publication. A copy of the article was sent to Senate Finance Member Baucus.

See page 4
See Success List

1985 March 21: A State Activites (Tobacco Institute) report lists him as active in Montana on their behalf:

Professor Terry Anderson and Richard Stroup (Montana State University) testified before the Montana House Taxation Committee, opposing tax increases in the state.

1985 Apr 2: Savarese bills the Tobacco Institute for three Professors who are members of his network. They have presented testimony in Kansas and Montana. His own fees are additional:

• Production and administration of testimony — $3,800
• Sherman Hanna, Kansas — $2,000
• Terry Anderson, Montana — $1,000
• Richard Stroup, Montana — $1,000

1985 May 5: Ed Battison, who was a contract economist briefly employed by the Tobacco Institute has produced a summary of Tollison's book "Smoking and Society" which had used the proceedings of the 1984 Workshop in New York City to create 'an authorative textbook"

[This was a trial run of the Philip Morris technique of totally controlling the speakers at a supposed 'scientific conference' — then publishing the proceedings — which was later used in the McGill University ETS symposium in November 1989]

• Robert D Tollison
• Eysemek [probably Hans Eysenck]
• Charles D Spielberger
• Domingo M Aviado
• Sherwin J Feinhandler
• Douglas J Den Uyl
• William F Shughart & RD Tollison
• Peter Berger
• HP Grant & Ingo Walters
• Stephen C Littlechild
• Bill Shughart and James Savarese
• Jean J Boddewyn
• James Buchanan

'it should be pointed out that each paper contains much more detail and information on each subject than presented here. Some of these points present a structure for defense of [against] prosmoking views that are applicable to legislative hearings and lobbying during 1985 and 1986.

"List of Professional Persons who have potential to testify

• against excise taxes or antismoking bills;
• for smokers rights;
• against cooercion of smokers;
• against earmarking excise taxes for public health care"

[It includes]
TERRY ANDERSON,
economics professor
Montana State University

- has written Who Cares About Efficiency in Cato Journal, 1982;

- he has seen limited service in helping state issues in WA state.

1985 May 5: Ed Battison from the Tobacco Institute has summarised Robert Tollison/s 1984 Workshop papers on "Smoking and Society" and also lists scientists and academics who would probably "Testify Against Excise Taxes or Anti-Smoking Bills, for Smoker's Rights and Against Cooercion of Smokers and Against Earmarking Excise Taxes for Public Health Care".

    He says about this individual:

TERRY ANDERSON, economics professor at Montana State U, has written Who Cares About Efficiency in Cato Journal, 1982; he has seen limited service [for the TI] in helping state issues in WA state.

1985 May 5: A Tobacco Institute summary of "Smoking and Society" edited by Tollison — it gives details of the main speakers at the New York City Workshop, and outlines the ideas which were translated into Chapters in this book.They speakers all work for tobacco:

    Robert Tollison, Hans Eysenck (misspelled), Charles D Spielberger, Domingo Aviado, Sherwin Feinhandler, DJ Den Uyl, William F Shughart, Peter Berger, HP Grant & Ingo Walter, Stephen C Littlechild, James Savarese, Jean J Boddewyn, and James Buchanan

    Also notes on Glen Loury, Walter Williams, Amitai Etzioni, Tollison, Wagner and Lee, Peter Blau, Terry Anderson, Peter Berger, and Theodore Sterling

1985 June 21: James Savarese submits his bill to the Tobacco Institute for the academics who have written articles, and those who have made speeches at important academic conferences promoting the tobacco industry line.

• Op Ed Project — $1000 each in 'professional fees'
  
  for Abrams, Alston, Armentano, Harper-Fender, T Anderson, Denzau, Bohanon, Jadlow, Wagner and Menchik.
  
  
  
• Southwest Social Science Meeting — Houston
  • Keith Watson ($1,000),
  • RB Ekelund Jr ($2,003)
  • Joseph Jadlow ($2,605),
  • Richard Wagner ($2,716)
  • Robert D Tollison ($5,000)
  • Henry N Butler ($2,070)
  
  
  
• Eastern Economic Assoc, Meeting — Pittsburgh
  
  • George E Hoffer ($1,431)
  • Gary M Anderson ($2,450)
  • Robert D Tollison ($6,375)
  • Bill Shurghart III ($2,529)
  • Michael D Pratt ($1,288)
  • John H Bowman ($1,000)

1985 Dec: /E President Ronald Reagan asked Senator Bob Packwood, chairman of the US Senate Finance Committee, to design a proposal for comprehensive tax reform

which would reduce the highest individual income tax rate down to 35% from its current 50% level, but retain adequate incentives for business investment, and avoid inclusion of any new taxes.

    In an attempt to do this without reducing the total amount of tax revenue that is currently collected, the Packwood plan proposes to offset reduced revenues from income taxes by what the Wall Street Journal has referred to as a "backdoor increase in excise taxes."

    The Packwood plan proposes to eliminate the income tax deductibility of excise taxes and import tariffs paid by businesses [and it] would increase federal excise tax receipts by an estimated $75 billion over five years. Approximately $13 billion of this would be a result of a direct increase in excise taxes on motor fuel, wine, distilled spirits, and tobacco.

1985 Dec 12: Annual Report of the Tobacco Institute's Public Relations division lists him as having helped them considerably:

We believe that the active and creative use of experts — our scientists in particular — gives us an edge. But without question, public smoking is our toughest challenge.

    A close second is taxation. In 1985, most of our resources in this area were focused on the federal situation.

    That being the case, we concentrated almost exclusively on the home districts and offices of the 56 members of the House Ways and Means and Senate Finance Committees.

    We identified and utilized economists from universities in 48 of those districts. Some testified at the four federal tax hearings in which had interest. Others participated in academic symposia attended by Congressional staffers. Others communicated directly with their Congressmen.

    And 34 of them wrote op-ed articles on the need to consider excises as part of tax reform. Many of these articles appeared in the principal newspaper in the targeted districts which have, by our estimation, a total circulation of nearly 4 million.

    The economists were of great help. [SNIP]

    Professor Terry Anderson (Montana State University) wrote an op-ed article on tax reform and submitted to the Billings Gazette. Editor is considering for publication. A copy of the article was sent to Senate Finance Member Baucus.

    [Also] Professor Terry Anderson and Richard Stroup (Montana State University) testified before the Montana House Taxation Committee, opposing tax increases in the state.

1986: This is the Tollison/Saverese network list for 1986. It has 64 names, but it still doesn't cover all 50 States. Some States have two or three network members, so newspapers [and sometimes Congressmen] need to be specified for each member to ensure there is no accidental duplication.

    Telephone numbers (office and home) are often included in case an urgent op-ed or ordinance hearing is needed. These are grouped by State:

MONTANA
Prof Terry L. Andersen
    Department of Economics, Montana State University, Bozeman, Montana, 59715, 406-994-3701

1986 Jan: The Tobacco Institute's Public Relations Resource Catalogue for their Regional Directors, lists documents, booklets, article, posters and people who can help them fight local public smoking ordinances and threats to raise the excise taxes on cigarettes.

    It provides a long list of economists who are willing to speak at hearings, write letters to the editor, or create op-eds for the newspapers to counter any threat to public smoking or possible increase in excise taxes.

    It lists him as a contact:

• Professor Terry Anderson, Department of Economics,
  Montana State University, Bozeman, MT

Public Smoking/Witness: Local economists are available on two-weeks notice to provide economic testimony on the public smoking issue. Those economists who have testified or prepared op-ed pieces on the economic effects of public smoking are marked accordingly. The others may be briefed on the potential cost to government of implementing smoking restrictions.

Tax witness: [He will] "explain why excise taxes are regressive and unfair to consumers and unsuitable and unreliable as a means to increase the federal revenue."

    Those economists who have testified or prepared op-ed pieces on the economic effects of public smoking are marked accordingly. The others may be briefed on the potential cost to government of implementing smoking restrictions.

1986 March: Copies of the letters that the cash-for-comments economists wrote to various newspapers editors, and also the ones they wrote to their Senators — none of which mentioned that they'd been paid by the Tobacco Institute to write both the op-eds and the Congressional letters. These were sent to the Tobacco Institute as proof of their activities:

    Newspaper clippings of some of the network members' published articles for this project are grouped here:

[Printed versions]

• Joseph Jadlow, Tax reform Hidden excise boost hurt consumers...
• Allen Dalton, Hidden taxes gut Reagan reform plan.
• Charles Maurice, Packwood proposal picks our pockets.
• Scott Atkinson, Packwood Tax Reform Bill Threatens Wyoming Economy.

• Allen Dalton, Tax Revision: Reform or Fraud.
• Thomas F Pogue, Senator Packwood's Proposal is Not Tax Reform.
• Richard B McKenzie, Excise Taxation: A Misguided Soultion to the Federal Governments Fiscal Woes.
• Terry Anderson, Tax Reform We Don't Need.
• Michael Crew, Tax Reform Hides Massive Excise Tax Increases: Senator Packwood Is Too Clever by Half.
• JJ Bodewyn, Taxwise, We are going to be had.
• Anne Harper-Fender, The Packwood Tax Plan: Reform or Expediency.
• Scot Atkinson, Packwood Tax Reform Bill Threatens Wyoming Economy.

1986 Mar 20: Tobacco Institute document: Background Update Of the Estimated Effect of the Packwood Tax Plan On the Price Increase Necessary For Cigarettes

If the deductibility of the excise taxes is eliminated, then most, if not all, of this tax increase will be passed on to tobacco consumers as price increases to cover the additional corporate taxes they will be required to pay, plus the indexed excise tax requirement.

    On the basis of 1985 sales, and the level of federal excise taxes paid on cigarettes, the level of taxable sales would be: $4.5 billion / $0.16 = 28.125 billion packs — the remainder are either sent overseas as exports or to armed services, or to government institutions.

    If the Packwood plan is adopted, and if the effective tax rate on tobacco corporations is 35 percent as in 1983, the increase in corporate income taxes would be about $1.83 billion.

    It must be assumed that this tax increase will be passed on to consumers in order to maintain net income. This will cause a decline in demand on the base level of 28.125 billion packs.

1986 April: Professors Joseph M Jadlow (Oklahoma) and Charles Maurice (Texas A&M) have prepared draft articles attacking the Packwood Tax Plan. James Saverese has sent them, together with clippings of articles already published, along to Fred Panzer at the Tobacco Institute for correction and clearance. (See page 10)

    It lists many dozens of articles which the cash-for-comment economist on the network have now written, including one:

MONTANA: Prof. Terry Anderson Submitted to Paper: 3/31/86 —Billings Gazette, Great Falls Tribune, Belena Independent Record, Missourian,
Current Status:[none listed]
Letters to Senators: Baccus and Melcher on 3/31/86

1986 Apr 1: An Open Letter to Senator Robert Packwood (by Wm Mitchell) has been sent to the network economists to help them write their articles. This is a checklist of those in the 1) Writing Stage 2) Submitted to Newspapers 3) Letters Written to Senators.

    This cash-for-comments participant has written the article but not sent the letters to Senators. He has attached a copy of the article which has been sent back to the Tobacco Institute.

1986 Apr 3: James Savarese writes to his stable of economists on the subject of "New Research Opportunities." [A sure-fire come-on with academics]

I would like to thank you for all of your cooperation and diligence in handling the projects we have worked on together. I am taking this opportunity to alert you to some new research opportunities that may be available in the upcoming weeks.

    The Tobacco Institute is interested in considering research proposals which would establish a much more realistic examination of the social cost issue as it relates to the smoking issue.

... rebuttals developed by Bob Tollison and Richard Wagner to the OTA report.

    The Institute would like to examine proposals for research that test, in a quantitative way, a number of propositions on the relevant cost considerations that apply to the smoking issue.

    If some aspect of this interests you, please provide me with a brief (1-2 page) description of any project you have in mind by April 30. Please include a cost approximation.

1986 Apr 3: This appears to be the approved copy of the letter on "New Research Proposals" that Jim Savarese sent to his long list of network economists. This letter leaves no doubt that these academic economist knew that they were being paid to protect the interests of the tobacco industry.

    The economist were also being given outline "rebuttals" developed by Tollison and Wagner to help them in writing their counter-attacks to an an Office of Technology Assessment (OTA) anti-smoking report.

I would like to thank you for all of your cooperation and diligence in handling the projects we have worked on together. I am taking this opportunity to alert you to some new research opportunities that may be available in the upcoming weeks.

As you know, the tobacco industry is exposed continuously to a barrage of attacks on economic issues. Many of these attacks involve a serious perversion of the concept of social cost. The Tobacco Institute is interested in considering research proposals which would establish a much more realistic examination of the social cost issue as it relates to the smoking issue.

I have attached a report prepared by the staff of the Office of Technology Assessment which is representative of the kind of "research" being put forth by anti-tobacco activists. I have also included the rebuttals developed by Bob Tollison and Richard Wagner to the OTA report.

The Institute would like to examine proposals for research that test, in a quantitative way, a number of propositions on the relevant cost considerations that apply to the smoking issue.

1986 Apr 11: The Tobacco Institute plans for State-by-State actions to generate opposition to the Packwood Tax Plan.

1986 Apr 15: Jim Savarese is reporting to Fred Panzer at the TI about the [anti] Packwood Tax Plan project. He includes numerous letters sent to Senators, copies of published op-eds, and a revised op-ed for Maine and one for Minnesota, He lists the successes of the network economists, including:

MONTANA, Prof Terry Anderson
[Submitted to] Billings Gazette, Great Falls Tribune, Helena Independent Record, Missoulian 3/31/86
[Letters sent to Senators] Baucus and Melcher 3/31/86

1986 Apr 15: Jim Savarese is reporting to Fred Panzer at the TI about the [anti] Packwood Tax Plan project.

We have contacted the following people and have asked them to request to testify before the Senate Finance Committee on April 21, 1986. As of today, no one has been asked to testify, but here is the current status.

• J.J. Boddewyn, New York - called and wrote [CUNY]
• B. Poulson, Colorado - called and wrote
• Michael Crew, New Jersey - called and wrote [Rutgers]
• William Mitchell, Oregon - called and wrote [Uni of Oregon]
• Richard McKenzie, Missouri - called and wrote [Washington Uni, St Louis]
• Ann Harper-Fender, Pennsylvania - called and wrote [Gettysburg College]
• Joseph Jadlow, Oklahoma - called and wrote [Oklahoma State]
• Robert Tollison, Virginia and D.C. - called and wrote [George Mason]
• John Howe, Kansas - previous commitment
• Terry Anderson, Montana - previous commitment
• Lee Anderson, Delaware - previous commitment

We will check back with these people daily to see if they have heard anything and I'll let you know as soon as we are successful.

1986 May: A bundle of 72 pages of information is being circulated by the Tobacco Institute to its Regional Directors. The data is predominantly on the tobacco-industry beat-up known as Sick Building Syndrome and on the general problems of Indoor Air Quality [all down-playing the effects of smoking in confined spaces]

    Section 1 is headed

List of sources. Local and national experts you can call for quotes or background information. It promotes the services of three specialist lobbyists

• Lewis Solmon - an academic who discounts problems of workplace smoking
• Al Vogel - who claims to be an expert in public attitudes to smoking
• Mike Forscey, a labor lawyer/lobbyist who helped the tobacco industry keep the union movement on-side.

1986 May 30: Fred Panzer of the Tobacco Institute was contacting British-American Tobacco's PR executive, Tom Humber [also Burson-Marsteller and National Smoking Alliance] sending him some of the examples of the network economists.

Enclosed are: (1) The first wave of 27 op-ed reprints, (2) A second wave of 32 op-ed articles (21 published and 11 unpublished), sent out on Packwood's first tax reform proposal.

    I've also included one on the Chase [Economtrics] study. There are a few others being rounded up, as well as a syndicated excise tax feature series we developed. Out of all this should come something useful for your people.

• Florida — Wagner — Tampa Tribune and Washington Times
• Indiana — Bohanon — Muncie Star
• Maine — McMahon — Portland Press Herald
• Minnesota — Raab — Minneapolis Star & Tribune
• Missouri — Denzau — St Louis Post Dispatch
• Montana — Anderson — Billings Gazette
• New Jersey — Crew — Wall Street Journal
• New York — Greene — New York Times and Newsday
• North Dakota — Doblitz — Forum
• Oregon — Eberts — Oregonian, Statesman-Journal, and Washington Times
• Tennessee — Anderson — Knoxville Journal, Memphis Commercial Appeal, and Chattanooga Times.

1986 Sep: /E A Tobacco Institute report on "State Activities" credits Professor Terry Anderson and Richard Stroup as providing help in Montana, under the heading "Positive Actions by Local Allies."

Professor Terry Anderson and Richard Stroup (Montana State University) testified before the Montana House Taxation Committee, opposing tax increases in the state.

1986 Oct 3: A Tobacco Institute report on the economists network, lists the Congressmen they are expected to influence,and the economist's various academic specialities.

    This early list is probably the most detailed of all. A later section of this 43 page document also runs through the 28 main states giving the names and details of witnesses willing to speak to legislators on Taxes (almost exclusively economists), and those available as witnesses for the tobacco industry on Public Smoking issues (economists and a range of others)

    A major effort had also been made recently to enlist fire officers and brigades to counter demands for a 'fire-safe' cigarette which had low ignition propensity.

MONTANA, (Sen. Baucus)

[Economist:] Professor Terry L. Anderson, Montana State University, Bozeman, Montana, 406-994-5647
[Speciality:] Natural resource policy; government regulations, land use; air and water policy.

Tax Witnesses:	Materials available
Terry Anderson	Montana data card "Excise Taxes: The Fairness Issue" "More Taxes on Tobacco...." Earmarking topic sheet Letter writing brochure.

1986 Oct 3: The State Directors for the Tobacco Institute have been reviewing all economics network witnesses in their territories, and culling those who are not actively participating. The Washington DC office is now circulating to its State Directors a list of the economists available who...

"...have been identified in several states by J. Savarese as available and hopefully capable to testify in our behalf, or aid in our defense against proposed state of local legislation, from an economic aspect.

MONTANA (Sen, Baucus)
Professor Terry L. Anderson
    Montana State University, Bozeman, Montana 406-994-5647
    (Speciality Areas) Natural resource policy; government regulations, land use; air and water policy.

1986 Dec 11: James Savarese sends Fred Panzer at the Tobacco Institute a summary of the activities of his network of economists. This is effectively the beginning of the main cash-for-comments economists network.

Dear Fred,
    I have attached a list of all the economists we have used along with the projects they have worked on in behalf of the Tobacco Institute.

• GSA = Government Services Administration.
• 'Ways & Means' = Congressional committee on finances
• ALEC = American Legislative Exchange Council (a formalised way for big business to directly influence Congressional and State politicians)
• Chase Econometrics = A company that did economic impact studies for the tobacco industry in various locations to 'prove' that smoking bans would destroy local economies.
  
      The references for this network member were:

Montana [ Region V ]

Professor Terry L. Anderson

Department of Economics , Montana State University, Bozeman, Montana 59715, 406-994-3701

Services rendered:
• original excise tax op-ed
• Packwood
• testimony: taxes - Montana

1987 Jan 6: and 12 Jim Savarese advises the Tobacco Institute that some economists were no longer working for his network. However Terry Anderson is still being listed as their main Montana economist-for-hire.

In order to keep this project straight with respect to the economists, we were specifically assigned to go back to all 42 names on the original list to check to see if the economists were still interested in working for us, still in the same state, and available to meet with representatives from state activities.

    We have 34 who fit this criteria and have been contacted. The list is attached. The states that we once had that are currently missing are Arizona, Maryland, Massachusetts, Nebraska, New Jersey, Vermont, West Virginia, and Wyoming.

    The attached invoice covers the project of re-contacting the original 42 economists and coming up with the present 34 people.

The primary purpose of this contact is to determine if a given economist is capable of testifying effectively before a legislative body.

    They have been informed that someone from TI will be in contact with them.

    We request that an initial contact be made by telephone immediately. Please let me know when this initial contact has been made. Personal meetings should be arranged and completed no later than May 1, 1987.

1987 Feb 6: James Savarese has finalised his list of compliant economists, and sends them to Susan Stuntz at the Tobacco Institute. It lists all the familiar cash-for-comment economists

Old faithfuls:
Lee Anderson, Terry Anderson, Dom Armento, Cecil Bohanon, Thomas Borcherding, Henry Butler, JR Clark, John David, Allan Dalton, Arthur Denzau, Clifford Dobitz, Robert Ekelund, David Gay, Anne Harper-Fender, Dennis Hein, John Howe, Wm Hunter, Joe Jadlow, Michael Kurth, Suuner LaCroix, Dwight Lee, C Matt Lindsay, Dennis Logue, Chuck Mason [Masen], Charles Maurice, Fred McChesney, Robert McMahon, Arthur Mead, Wm Mitchell, Allen Parkman, Wm Peterson, Thomas Pogue, Barry Poulson, Raymond Raab, Simon Rottenberg, Mark Schmitz, Richard Vedder, Richard Wagner

Greg Niehaus, Mario Rizzo, Roger Riefler, and Boon Yoon.]

1987 May 5: Cotton Mather ('Matt') Lindsay of Clemson University has written an article "Excise Taxes: Facist Finance" which is being circulated at the Tobacco Institute. He has discovered through his extensive research that:

it is difficult to achieve vertleal equity [equal burden on everyone] through excise taxes because the amount of the tax paid depends on purchases rather than income.

    Breweries and tobacco companies write checks to the government for the excise taxes on beer and cigarettes, but here economists agree; these companies pass these taxes on to consumers. One's share of the burden of the revenues raised by these taxes depends on how much beer one drinks and how much one smokes.

    The unfairness of these excises is manifest; it is not merely another economists' debating point. The tobacco excise tax, for example, is the most regressive tax in the federal system. It is paid only by smokers who are today predominantly lower-middle income earners, lower income working women and blue collar workers.

    Some have argued that these taxes are appropriate because the funds can be earmarked for expenditures like Medicare, environmental protection and even public employee pensions. Why beer drinkers and cigarette smokers ought to pay more for such things is far from clear, however. To the extent that these activities shorten life, they relieve the burdens of Medicare and pension funds by removing potential claimants from the eligibility roles.

    Viewed from another perspective, smokers and beer drinkers not only bear a disproportionate share of taxes because they pay excises on these commodities, but they get less for their money, too. Because they live a shorter life span, they collect less in retirement benefits and receive fewer Medicare benefits.

    This may be fine for Mussolini, but it is antithetical to tax principles in a free and open society.

Professor Terry L Anderson:
"Yes, Good witness"

1987 May 28: George Minshew at the Tobacco Institute receives an email from his Regional Director "Economic Witness Evaluations - Region V"

George,
I've talked with eaoh of the lobbyists in Region V coneerning the list of economic witnesses provided by Public Affairs.

    Each of the lobbyists felt strongly that the program could be effective; especially if TI was to develop a method to throughly brief potential witnesses "pre-Iegislative crisis". Following is a brief evaluation of each economist provided by the appropriate lobbyist.

• Professor Suuner LaCroix,
  Department of Economies, University of Hawaii, Honolulu
        Counsel Suzuki has not had an opportunity to utilize Professor LaCroix in past legislative sessions. However, he does feel that he could be an important asset in future legislative battles.
• Professor Allan Dalton,
  Economics Department, Boise State University
        Counsel Bill Roden has met and talked with Professor Dalton on several occasions, however they have never discussed excise taxes. Professor Dalton's professional reputation is excellent and Bill feels that he would be an articulate witness for a legislative hearing. Counsel Roden has not asked Professor Dalton to testify in the past, but will discuss possible future testimony with the Professor before the start of the next legislative session.
• Professor Terry Anderson
  Department of Economics, Montana State University, Bozeraan, MT TI
        Counsel Jerry Anderson reports that Professor Anderson testified during the 1985 legislative session regarding an excise tax increase. The testimony which he provided was well received as being credible and authoritative. Counsel Anderson also retains Professor Anderson to testify on behalf of his oil industry clients. When it is appropriate during future legislative sessions, Counsel Anderson intends to continue utilizing this resource.
• Professor William Mitchell Department of Political Science, University of Oregon, Eugene
        Professor Mitchell expressed his Interest in the excise tax issue and demonstrated his expertise in a recent guest editorial for The Oregonian. TI Counsel Hank Crawford feels that Professor Mitchell's reputation is excellent and his testimony at future legislative hearings would be crucial.
• Dr Mark Schmitz,
  Seattle WA
        Counsel Bill Fritz does not feel that Dr Schmitz would be an appropriate witness for TI at this time.
• Dr Dennis L. Chinn, PhD
  Consulting Economist, Bellevue, WA
        Dr Chinn has provided extensive writing, consulting, and expert testimony on behalf of TI during past legislative sessions. Counsel Fritz feels that Dr Chinn is an effective consultant and his services will definitely be utilized again in future tax fights

[Terry Anderson obviously was a very useful academic to have on tap.]

1987 June 9: The Tobacco Institute's Phase II - Excise Tax Op-Ed project involved an article-writing campaign by cash-for-comment economists was run by James Savarese & Associates. Robert Tollison at George Mason University ran this network secretly with Savarese as the front.

    In the mid 1987 period, the project was under control of Jeff Rose [under Peter Sparber] at the Tobacco Institute and it focussed on defeating cigarette excise tax increases — and especially the threat of such taxes being 'earmarked' to bolster health care budgets.

Anna Tollison, the wife of Bob Tollison, was employed by James Savarese Associates to keep a record of the articles generated by the large contingent of academic economists, and to organise payment. She reported that

"In sum, 41 economists were solicited to write editorials. We have publications in 20 states, 14 articles have been written and submitted, and 7 articles are still outstanding." [Others were in the offing]

1987 Aug 21: Jeff Ross at the Tobacco Institute has prepared a consolidated summary of "Field Staff Evaluation of Economists" for his superiors, William Kloepfer and Peter Sparber. They have been asked to look at 34 of these academics. This includes an outline of their recent achievements.

MONTANA
Professor Terry L. Anderson Montana State University Bozeman, MT

Excise Tax Op Eds: None accepted for publication.
Economic Witness/Testimony: Testified in opposition to an excise tax increase in 1985.
Field Staff Contact: Yes.
Field Staff Evaluation: Authoritative and credible witness.

1987 Aug 31: Peter Sparber [Issues Manager] to Bill Kloepfer [PR head] at the Tobacco Institute:

Jeff [Rose] has done a good job of summarizing the economic consultant situation and I am attaching my copy of his report with some marginal notes. I think he should consider sending a collection of all of the published op-ed pieces to each of the consultants for the sake of inspiration.

    In the case of those who have not had an article accepted for publication I would like to know whether they submitted one.

Two general comments from field staff warrant some consideration. Michael Brozak recommended a political orientation to prepare witnesses for potentially politicized hearings.

    We agree and recommend that State Activities consider advising field staff to conduct such briefings as appropriate. Richard Scanlan suggested that an economist from the state capital city is much more valuable. We have asked Savarese and Tollison to see if they can identify a candidate.

1989 Jan 11: TI Scientific Consultancy Activity 1988-89 This is an 80 page mixed bag of files dumped together. [First is from 1990]

• Pages 3 to 23 It begins with Witness Appearances in 1988 and 1989 involving both "Indoor Air Quality experts" who work for the Tobacco Institute, and three economists [ Bob Tollison, Richard Wagner and Dwight Lee]
• Pages 24 to 31 Labor IAQ Presentations in 1988 and 1989 which involves key figures in the labor movement and a few "IAQ experts."
• Pages 32 to 39 IAQ/ETS conferences attended by tobacco industry disinformation experts in 1988 and 1989
• Pages 40 to 41 Academic and Unaffiliated Scientfic Witnesses
• Pages 43 to 53 Smokers Rights Legislation in various states.
• See page 54: Tobacco Institute "Confidential" memo on "Tax Hearing Readiness" which is their battle plan to counter earmaking of cigarette excise taxes to fund health programs. It lists a large number of organizations and a few congressmen who can be relied on to help. It also has both primary and secondary lists of economists from Tollison's "cash-for-comments" network willing to give testimony.

  Economists: [Primary]

  • Bill Orzechowski, Tobacco Institute
  • Robert Tollison, George Mason University
  • Richard Wagner, George Mason University
  • Dwight Lee, University of Georgia, Athens
  • Michael Davis, Southern Methodist University
  • Gary Anderson, California State at Northridge
  • William Prendergast (resource: Prendergast/Solmon papers)
  • Other Network economists [see Secondary attached list below]
    
        "Due by mid-year is a book examining earmarking and "user fees" from a public choice perspective. The treatise will contain 8-10 chapters written by respected economists, including, Henri LePage and Nobel laureate James Buchanan."

  The Tobacco Institute's list of cash-for-comments professors and senior academics who were available to write op-eds and give evidence at Congressional hearings, etc. had grown extensively.

  MONTANA
  • Prof Terry L. Anderson, Department of Economics
    Montana State University, Bozeman, Montana 59715 406-994-3701

[TI budget papers show that each op-ed now earned the economists $3,000. Presentations to conferences earned them $5,000. Savarese was paid $70 to $100,000 pa for this project, and Ogilvy & Mather $250,000.]

See page 5

1989 April 18: Susan Stuntz (Issues Manager) at the Tobacco Institute memoes her boss Sam Chilcote. She is sending him material previously used for a two-day "Gerry Long" presentation. He wants to use it in a shorter one-day (unspecified) briefing session.

[Gerald H Long was the CEO of RJ Reynolds who in 1988 had just taken over as Chairman of the Tobacco Institute's Executive Committee and wanted to make changes.]

Economists' Network 64 Strong [is] Targeted to Congressional Tax Writing Committees [and utilizing the] Production of Op-Eds on Federal Tax Policy.
[List of economists]

1990 May 7: The Tobacco Institute's "1991 Tax and Social Cost Plans" have sections on

• "Social Costs" Hearings Readiness (preparation for fielding witnesses at Congressional hearings.) They list here the arguments that the Institute and its allies must be prepared to present.
• "Tax" Hearing Readiness (as above, but for excise tax increases, State and Federal)
• List of cash-for-comment network economists in each State.

MONTANA
Prof Terry L. Anderson
Department of Economics, Montana State University
Bozeman, Montana 59715 406-994-3701

1991 /E: He is now listed as a member of the Board of Directors of Elizabeth Whelan's American Council on Science & Health (ACSH)
[Her reputation was built on fierce criticism of the tobacco industry, and subdued criticism of chemical and pesticide companies which funded her.]

He is obviously happy to walk on either side of the poisoning and polluting street, and is now listed with the ACSH as being from the Political Economy Research Center (PERC), also located in Bozeman, Montana

    PERC "pioneered the approach known as free-market environmentalism. " This is an ideology which maintains:

• Private property rights encourage stewardship of resources.
• Government subsidies often degrade the environment.
• Market incentives spur individuals to conserve resources and protect environmental quality.

1991 Jan: /E Tobacco Institute draft plan for 1991 with emphasis on "Taxes." These are the economist-related paragraphs:

Objective
To discourage reliance on consumer excise taxes on cigarettes to meet social and economic objectives by demonstrating that excise taxes are regressive and inconsistent with fair taxation.

Goals and Tactics:

• Commission two op-ed articles in 1991 from consulting economists. As articles are published, provide to other Institute decisions for promotion and submission to appropriate policy makers.
• Conduct at least 10 presentations by consulting economists on the excise tax issue before national, regional and state tax policy conferences.
• Continue to utilize consulting economists for testimony and briefings. Expand appearances to include presentations to business clubs and the business press. Conduct media refresher courses for public speaking appearance and delivery of testimony.
• Utilize the consulting economists for an op-ed program that addresses the national earmarking issue and state specific earmarking issues. As articles are published, provide to other Institute divisions and promote to appropriate public policymakers. Use field staff network to support distribution efforts.

1991 Jan 8: Savarese has sent the current list of network economists to Carol Hyrcaj at the Tobacco Institute. It contains three new names, but otherwise is essentially the same as the old lists. Terry Anderson is still prominentlisted as being available at Montana State University.

1991 Feb: /E Terry Anderson and Don Leal, (both of PERC) have written Free Market Environmentalism published by the San Francisco: Pacific Research Institute for Public Policy.

1991 April: The Political Economy Research Center (PERC) and the National Center for Policy Analysis (NCPA) have a joint task force which reports on "Progressive Environmentalism: A Pro-Human, Pro-Science, Pro-Free Enterprise Agenda for Change," [implying that their opponents were anti-human, anti-science and anti-free enterprise]

    Cash-for-comments economist Richard L Stroup was the chairman, assisted by NCPA's President & CEO, John C Goodman, a professional lobbyist who worked for the Tobacco Institute. There were 76 Environmental Task Force members (far too many for them to have useful discussions) so this was obviously some "for the record" meeting of cloned minds.

    This is some sort of coordination meeting of ultra-libertarian think-tanks from around the world — almost all belonging to the Atlas Group and working for the tobacco industry. Some of the most interesting are:

• Bruce Johnson, David Theroux of the Independent Institute
• The usual list of think-tankers from the Heritage, Heartland, Independent Institute, James Madison, Mackinac Center, Reason Foundation, Claremond Institute, ALEC, CSE, CIS, Cato, AEI, SEPP, IRET, PERC and NCPA staff/executives etc.
• Bruce Ames, (UC Berkely and TASSC)
• Cash-for-comment network economists: Dwight Lee, Terry Anderson, Tom DiLorenzo, Richard Stroup, Randy Simmons, D Allen Dalton,
• Eamonn Butler, Madsen Pirie, Adam Smith Institute, UK
• Martin Summers, Institute of Economic Affairs, UK
• Jo Kwong, Direct of Public Affairs, Atlas Economic Research Foundation
• Greg Lindsay of Center for Independent Studies in Australia
• Aaron Wildavsky - tobacco tout and philosopher
• Elizabeth Whelan, ACSH (created a faux-reputation as an anti-smoking activist)
• Stephen Gold, Ex Dir, Citizens for the Environment
• Manhattan Center, Wm Hammett, Lucy Clark

1994 March 16: A group of academic economists including almost all the members of the Tobacco Institute's cash-for-comments network sent an "An Open Letter to President Clinton on Healthcare Reform." This had been organised by David J Theroux, the founder and operator of the Independent Institute apparently with the assistance of an academic network member, Simon Rottenberg. [The institute was well-funded by the tobacco industry]. They say:

In The Open Letter to President Clinton, 565 economists and 76 other scholars from all 50 states and the District of Columbia state their firm opposition to any form of direct and indirect price controls in any healthcare program.

    Rationing Health Care: The New Threat of Price Controls, by Simon Rottenberg and David J. Theroux

In countries that have imposed these types of regulations, patients face delays of months and years for surgery, government bureaucrats decide treatment options instead of doctors or patients, and innovations in medical techniques and pharmaceuticals are dramatically reduced.

1996 Dec: /E Cato Institute Annual Report: Adjunct Scholar at the Cato Institute. include Cash-for-Comments /Public Choice economists Terry Anderson, Dominick Armentano, Thomas DiLorenzo, Robert Higgs, Dwight Lee, Richard Stroup, Walter Williams and also Jennifer Roback, the Outreach Coordinator for the Center for the Study of Public Choice and Henry Manne from the GMU Law School

1997 June 20: The Center for the New West, Institute for Political Economy and and the Political Economy Research Center (PERC) have a conference on "Environmental Federalism" in Utah. The Center for the New West was run by Philip Burgess for the regional telephone giant, US West, while the Institute for Political Policy was a tobacco-funded subsidiary of the Center for Strategic and International Studies.

    Terry Anderson is listed here as the Executive Director of PERC. There are two PERCs — this was known as the Political Economy Research Center in Bozeman, Montana — but is now the Property and Environmental Reseach Center. It has two other cash-for-comments economists, Richard Stroup and Bruce Yandle on staff and is linked to a firm owned by Cotton 'Matt' Lindsay.
[The other PERC is the Koch-funded Private Enterprise Research Center of the National Center for Policy Analysis in Texas. The NCPA is a Dallas based right-wing think tank, well funded by the Koch brothers and a few other billionairres.]

1997 Aug: The National Center for Public Policy Reesearch which was run by ex Philip Morris staffer, Amy Moritz Ridenour (aka Amy Moritz) lists many organizations in the Wise Use movement, and numerous other like-minded think-tanks:
    • Milloy and TASSC.
    • Heritage Foundation
    • Small Business Survival Foundation
    • Science and Environmental Policy Project
    • Reason Foundation
    • Progress and Freedom Foundation
    • Political Economy Research Center (Bozeman)

Key Officers:

• Terry Anderson, Executive Director;
• Richard Stroup, Senior Associate;
• Jane Shaw, Senior Associate;
• Donald Leal, Senior Associate;
• Daniel Benjamin, Senior Associate;
• Randy Simmons, Senior Associate

Newsletter: PERC Reports

The majority of PERC's efforts are devoted to natural resource issues. PERC's activities consist mostly of publications and hosting conferences and seminars.
      To counter the environmental movement's indoctrination of the nation's youth in the public schools, PERC helped produce Facts not Fear, a book billed as a parent's guide to teaching children about the environment, and developed a school curriculum.
      The group produces PERC Policy Series, quick read policy papers, on topics ranging from Superfund to conservation; and PERC Reports, a quarterly newsletter. PERC has sponsored numerous seminars and conferences reaching hundreds of people over the last 15 years.

1998 Sep 29: Terry Anderson is now with both the Hoover Institute and PERC. Henry I Miller MD, [ex FDA] who is now a Senior Research Fellow at the Hoover Institution, has written a begging "Work Plan" [In Brown & Williamson's files] asking for an additional $5,000 to $15,000. He says:

I currently place about thirty op-eds and professional papers, make roughly 15 radio and television appearances, and give perhaps a dozen speeches or seminar presentations annually. These numbers are limited, in part, by time expended on fund-raising to support my research. If the research were underwritten wholly or in part, more time could be used for getting out the products.

    The amounts being discussed ($5,000 to $15,000) are relatively small sums. However, funding in the range of $15,000 would permit publishing a book based on an October 1998 conference on "The Greening of US Foreign Policy" (which I have co-organized with Terry Anderson of the Hoover Institution and the Political Economy Research Center)

An additional $15,000 would enable us to expand the science and risk communication programs described above, and also to:

• Publish the book described above, on how junk science increasingly drives the "greening" of U.S. foreign policy; and
• Increase our ability to use Internet, e-mail and fax capabilities to share my work with other think tanks that also address science issues, and have their own media distribution channels.
        These organizations include the Reason Institute and Pacific Research Institute in California — and the National Center for Policy Analysis, State Policy Network and similar market-oriented institutes around the United States.

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