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

Professor Cecil Bohanon was a professor of free-enterprise economics at Ball State University, Muncie, Indiana. He was an early recruit to the cash-for-comments network run by the Tobacco Institute, and he remained on the tobacco industry payroll for multiple project over many years. He also recruited professors James McClure and Cecil Johnson to assist him.

Tobacco lobbyist James Savarese and Professor Robert Tollison of George Mason University collaborated in the 1980s to provide the tobacco industry, through the Tobacco Institute, with networks of academics in various disciplines who would be willing to write and sprout propaganda material ... always provided the payments for these services were not directly tracealble to the Institute or to any of the cigarette companies.

The idea was simply that these academic 'sleepers' would be available on a cash-for-services basis when needed to counter attempts to increase excise taxes or to ban public smoking ... or just to appear as 'independent experts' at Congressional hearings and promote the industry causes.

Economist were by far the most useful of the acolyte academics because the distinction between economics and politics was never clear: so support of the cigarette companies could always be portrayed as support for the ideology of free-market economics including the rights of individuals to make public choices (despite cigarette addiction), with an emphasis on small government (resulting in lower cigarette excises) — and even on flag-waving support for the first Amendment to the Constitution (right to advertise).

The economist working for Savarese, always claim to be 'independent' 'professionals' and ' academics', and they exploited the fact that they came from some credible university. They never revealed the source of their funding in their op-eds or letters-to-the-editor.

If ever put under cross-examination, they must be able to claim (with weasel-word imprecision) that they had "never received a penny from the tobacco industry". Therefore all payments were laundered, either through tobacco industry lawyers ( usually Covington & Burling),) the principle organisers James Savarese & Associates, or through Bob Tollison's Center for the Study of Public Choice at George Mason University.

The aim was to have, in each State, at least

• one academic economist,
  
• one academic lawyer, and
  
• one academic from a business management, business law, marketing or advertising discipline

The academics were always expected to wave their own and their university's credentials vigorously, and loudly proclaim their "independence' from any crass-commercial motives. And those who could boast of being 'non-smokers' were especially prized — since without this addiction, their non-dependent-on-tobacco status was thought to be proved beyond any doubt!

Unfortunately, it worked.

Some key documents

• Professor of Economist at Ball State University, Muncie IN He was the established network operative for Indiana, but he co-opted James McClure (later also a Professor) and Professor Cecil Johnson — both of Ball State — to help him with his economists' network projects

1980: Joined Ball State University as Professor of Economics

1981: He earned his doctorate from Virginia Polytechnic Institute and State University in 1981.

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 Mar: Tobacco Institute document "Federal Markets" on the likely allies the industry has in opposing the earmarking of cigarette excises for healthcare.

Market: Indiana
Positive Actions by Local Allies:
Academics: Professor Cecil Bohanon (Ball State University) wrote an op-ed article on tax reform and submitted to the Muncie Star. The editor is considering it for publication. A copy of the article was sent to Ways & Means Member Jacobs.

See page 4
See Success List

1985 June 21: James Savarese submits his bill to the Tobacco Institute for

• Op Ed Project - $1000 each '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 12: Annual Report of the Tobacco Institute's Public Relations division lists him as having:

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 Cecil Bohanon (Ball State University) wrote an op-ed article on tax reform and submitted to the Muncie Star. The editor is considering it for publication. A copy of the article was sent to Ways & Means Member Jacobs

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, or write letters to the editor, or op-eds for the newspapers to counter the public smoking or excise tax threat.

    It lists him as a contact in:

• Professor Cecil Bohanon, Department of Economics
  Ball State University, Muncie, IN

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 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 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 June: Five economists at Ball State University, led by Cecil Bohannon and James E McClure, have drafted and signed a letter to the General Services Administration objecting to a proposal to regulate smoking in Federal Buildings.

Surely any conflict that might emerge in such circumstances is best handled by ordinary social custom and regular supervisory channels. To force a predetermined "solution" on all cases, whether a problem exists or not, is foolish and wasteful. Although the specifics of smoking and snacking may vary, the principle does not. Such regulation of the work environment is unnecessary.

1986 June: /E A Tobacco Institute list of "Schedule of Payments - Excise Tax Op-Ed project." (April-May 1986) This lists those academic economists who have already planted their article on a local newspaper, and the amount they are to be paid.

    They appear to have been paid $900 for each article, and $1025 if they had also made contact with their local Congressman. However a number of the cash-for-comments network members still have not completed their commission.

    The George Mason (Uni) production staff of Bob Tollison, Bill Shughart, and Gary Anderson were paid for "rewrites, editing and research, 18 articles", and Carol Robert for the "production of final product. " A total of $18,000 + $1067 expenses [or $1000 per article to make them into saleable propaganda for their local newspapers]

See

Bohanon in Indiana has been given the target of planting his article on the Indianapolis Star and was due for payment of $1025.00.

    The GMU production staff were also being paid another $9,500 for rewrites, editing and research on 9 additional articles, while Savarese seems to have been charging $5,800 + $235 in expenses for recruiting replacement economists in California, Montana, New York, Ohio and Tennessee.

1986 Jul 21: Sam Chilcote of the Tobacco Institute writes to the members of the Executive Committee detailing their successes in generating objections to the proposed GSA [Government Services Administration] anti-smoking bans.

    They have persauded the American Federation of Government Employees (AFGE) to help having the rules amended, and have turned out their friends and associated companies to generate letters of objection.

Included among the comments received by GSA thus far are thousands generated as a result of contact with TAN [Tobacco Action Network] activists, other tobacco family organizations, key coalitions, organized labor and economists.

    The State Activities Division's alert of key contacts in the field, as well as TAN activists, has generated at least 3,100 letters of opposition. These are letters for which copies have been sent to division headquarters; there are no doubt many others.

    Among member companies, all have asked their employees to write letters of opposition. In addition, RJ Reynolds reports its phone bank efforts to reach Washington, DC, residents, may have resulted in up to 3,700 opposition letters. Reynolds also sought letters from respondents to an earlier mailing on the federal excise tax issue. Philip Morris initiated a program designed to generate up to 10,000 mailgrams to GSA by the comment deadline.

• 8th July — Arthur T Denzau, Washington University, St Louis, Mo
• 3rd July — Barry W Poulson, University of Colorado, Boulder
• 10th July — Thomas E Borcherding, Claremont College/Graduate School, California
• 7th July — William F Shughart II, Center for the Study of Popular Choice, George Mason University, Washington DC
• Undated [June '86] — (joint) Cecil E Bohanon, James E McClure, Stephan F Gohmann, Clarence R Deitsch, Lee C Spector — all PhDs in economics at Ball State University, Muscie, Ind.
• 7th July — John F Militello, Wharton School, University of Pennsylvania,
• 7th July — Jean J Boddewyn, Baruch College, The City University of New York [Advertising lecturer]
• 5th July — Morgan Reynolds, Texas A&M University
• 8th July — Cliff P Dobitz, North Dakota State University
• 8th July — William C Mitchell, University of Oregon
• 11th July — Arthur C Mead, Economist, Newport RI
• 10th July — D Allen Dalton, Boise State University, Idaho
• 10th July — Henry N Butler, George Mason Univeristy
• 10th July — (joint) S Charles Maurice, Leonardo Auernheimer, Niccie L McKay [wife of Maurice], John R Hanson II, Lynn Gillette, Gregory Delemeester at Texas A&M University
• 9th July — (joint) Robert B Ekelund, Richard Ault, David Saurman, John Jackson, RG Hebert, J Keith Watson, Mark Thonton, at Auburn University, Alabama
• 9th July — (joint) Richard K Vedder, Lowell E Gallaway, Jan Palmer, David Klingaman at Ohio University

[Clearly Bohanon acted as a local recruiter at his own university. All of the key figures here became cash-for-comment academic economists.]

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:

Indiana [ Region III ]

Professor Cecil Bohanon

Department of Economics , Ball State University, Muncie, Indiana 47306, 317-285-5363

Services rendered:
• original excise tax op-ed
• GSA letter writing campaign

1987 Jan 6: and 12 Jim Savarese advises the Tobacco Institute that some economists were no longer working for his network. However Bohannon is still being listed as their main Indiana 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 plus a few new ones.[Greg Niehaus, Mario Rizzo, Roger Riefler, and Boon Yoon.]

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

1987 Feb 6: This is the Tollison/Saverese network list of economists recruited until the end of 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:

INDIANA
Professor Cecil Bohanon

    Department of Economics, Ball State University,
Muncie, Indiana, 47306, 317-285-5363

1987 Apr 2: A list of 26 quotes excerpted from major newspaper editorials and op-eds from the TI's cash-for-comments economists about the Packwood tax plan.

Indianapolis Star, April 2, 1987
"... excise taxes have the effect of making the economy less productive and impose a disproportionately heavy burden on those least able to pay, outcomes that are opposite to the hard-won gains of tax reform."

Cecil E. Bohanon, associate professor of economics at Ball State University

Indianapolis Star, July 24, 1987
"Surely there exists a better way to overcome the budget problems of our national government than by imposing a new set of unfair and regressive taxes."

Cecil E. Bohanon, associate professor of economics, Ball State University

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 Cecil Bohanon:
"should be replaced by listed Indiania economist Prof James A Payher[??]"

1987 May 22: Bill Trisler sent his evaluation of economic witnesses for Region III to George Minshew at the Tobacco Institute.

INDIANA
Professor Cecil Bohanon, Department of Economics Ball State University, Muncie, Indiana
During the time of the mobilization for the defeat of the tax bills in the Indiana General Assembly, it was the wishes of our Indiana counsel that we not use an economic witness. Therefore, I made no attempt to make this contact.

    Our counsel did express that, should an economic witness be useful, their choice would have been the following:

Professor James A. Papke, Department of Economics Herman C. Krannert Graduate School of Management Purdue University, West Lafayette, Indiana PH: (317) 494-4442
This recommendation is due to the fact that we used this individual for testimony in Ohio, on behalf of the Institute, in 1986.

    This individual was very effective and I have had the opportunity to communicate by phone, but never had the opportunity to "break bread" with him because of my schedule in the past year.

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 June 22: The Tobacco Institute has been sent by Savarese a "Schedule of Payments — Excise Tax Op-Ed Project." It details the name of the cash-for-comment economist, the State, the targetted newspaper, and both past and current payments — with a separate column labled "Total Earned to Date".

In INDIANA
[Cecil] Bohanon for Indianappolis Star —Owed [nil ?], — Total to date $1250

1987 June 23: Savarese writes to Jeff Ross at the Tobacco Institute sending along a list of Democrat members of the House Ways and Means Committee...

... along with the economists we use in those areas. Nine of these are good, solid hits which we should be able to count on to do the job and get a publication. I have *ed these on the attached list. The remaining 6 are all people we have used in the past, but who have not been consistently successful.

    Since I'm under a new financial arrangement with the Tobacco Institute and I need to get these costs cleared in advance, I'll make my best effort here to budget this proposed project.

    If all 15 would get published, which is highly unlikely, the cost of Phase II Excise Tax Op-ed Project would run $45,000.

    More than likely we'll get 8-10 placements and 3 to 4 others who won't get placed, but will still send letters to their members on the Ways and Means Committee. In that case, the cost will be $37,000.

1987 July: a selected group of the economists have been commissioned to write op-eds about cutting the deficit — and to de-emphasise the value of excise taxes. Generally they follow the line of listing four possibilities approaches

• a general consumption tax (efficient but regressive)
• increased excise taxes (inefficient and regressive)
• a national lottery (regressive and competitive with State lotteries)
• increased income taxes (unpopular)

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.

INDIANA
Professor Cecil Bohanon Ball State University Muncie, IN

Excise Tax Op Eds: Indianapolis Star — 04/02/87
Economic Witness/Testimony: (nil)
Field Staff Contact: None.
Field Staff Evaluation: Counsel recommended alternative economist.

1988 Mar 31: The Tobacco Institute's list of available economists, with details of their target for a review of Robert Tollison and Richard Wagner's "Smoking and the State" book (secretly funded and published by the tobacco industry). Jim Savarese writes to Jeff Ross who looks after the cash-for-comments network:

I have listed below potential areas where we could place book reviews for the Tollison/Wagner monograph.

Indiana

Targeted paper: (none given)
Economist: Cecil E Bohanon, Ball State University

1988 May 26: Savarese advises the Tobacco Institute that

We have initiated the book review project. A copy of the book and a short summary were sent out today to 17 economists across the country with instructions for writing a brief review suitable for newspaper publication.

    I have attached a list of the economists. I'll keep you up to date as soon as the reviews start rolling in.

1988 June 13: James Savarese to Susan Stuntz at the Tobacco Institute:

Here are two more book reviews of the Tollison/Wagner book. I'll wait to hear from you before proceeding any further.

"Next stage? — Placement, Publication attempts."

These two are pretty good, I don't see much problem with them.

Does this mean Covington & Burling (the tobacco lawyers) clearance is unnecessary?

1988 Oct: A Savarese memo notes that his review was

Rejected by:
      1 Indianapolis Star
      2. Indianapolis News
Will try Muncie Evening Press

1989 Jan 11: A Tobacco Institute lists of available economists, ordered by State, had him listed:

INDIANA
Professor Cecil Bohanon
Department of Economics, Ball State University
Muncie, Indiana 47306 317-285-5363

1989 Mar 17-19: The Annual Meeting of the Public Choice Society together with the Economic Science Assocition. These are Hayek-oriented neo-con economists of the kind which gave us the Global Financial Crisis of 2008-9. The speakers list mentions many active members of the economists network: — some of whom spoke more than once. (William Hunter in particular.) It is clear that this society was a profitable recruiting ground for Tollison and Savarese.

    The large group of speakers connected with Tollison's Center for the Study of Public Choice at George Mason University completely dominated the conference session on Public Health.

• Robert Tollison
• Richard Wagner
• David ER Gay
• Dwight Lee
• William C Mitchell
• Burton Abrams
• Cecil E Bohanon
• Charles Breeden
• William J Hunter
• Bruce Benson
• Burton Weisbrod
• Bruce Yandle
• Roger L Faith
• Roger Congleton
• James Buchanan
• Gary Anderson
• Peter J Boettke
• Jeffrey R Clark
• Robert J Staaf

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]

1989 Dec 14: Jim Savarese is listing the economists taking part in their new Excise Tax Op-Ed project.

I have also listed the newspapers we plan to target and a package of the materials we are sending to the economists.

    We should start getting drafts of the op-eds around the first of the year.

1990 Feb 18: Clipping of an op-ed by Bohanon for the Tobacco Institute which appeared in Muncie Star "Great Health Experiment of '90s Was Doomed to Fail." (attacking President George Bush I and excise tax increases.)

1990 April: The Tobacco Institutes "Public Affairs Management Plan Progress Report." This 40 page document has overviews by different section heads.

• Excise Taxes: (Page 3) Consulting economists' op-eds have all been written, reviewed and returned to the authors for placement. Of the 20 articles commissioned, 11 have been placed thus far. Most recently, Joseph Jadlow's article appeared in the Tulsa Tribune ; Cecil Bohanan's op-ed was published in the Muncie Star. Consulting economists also have followed up with the transmittal of the opeds to Senators and Representatives from their states.
• The Economic Policy Institute (EPI) also released its most recent study. "Are Americans on a Consumption Binge?" refutes the notion that Americans have been overconsuming and undersaving, and thus, that Congress should raise consumption taxes such as excises. The EPI study lays the groundwork for later activities, eg, a tax policy conference that will continue to build the record against aising regressive consumer excise taxes.
• We learned last month that State Activities [of the TI] has made extensive use in Texas of consulting economist Michael Davis. Davis conducted editorial board briefings with Texas newspapers in several cities, including Dallas, Houston, San Antonio, Galveston and Corpus Christi. As a result, the San Antonio Light has published a favorable editorial.
• Social Cost: [A] TI-commissioned social cost research paper on smoking and absenteeism, completed in 1989, has been accepted for publication by an academic journal.
• "Smoking and Absenteeism," (See page 30) by consulting economists Robert Ekelund, Richard Ault, John Jackson, Richard Saba and David Saurman, has been accepted for publication by the academic journal, Applied Economics. The authors examine previous absenteeism and productivity studies and find that the "association of smoking and increased absenteeism is spurious."
• Consulting economists will receive TI support for a presentation of academic papers during the Western Economic Association's conference to be held in San Diego in June. The session, "Smoking and Public Policy," will involve Dwight Lee and Gary Anderson in a discussion of smoking and social cost issues.

1990 May: This is a list of the newspapers designated to certain economists on the network. They are to attempt to plant an op-ed article on "Excise Taxes" on this local newspapers. Cecil Bohanen has been given the Indianapolis Star.

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.

INDIANA
Professor Cecil Bohanon
Department of Economics, Ball State University
Muncie, Indiana 47306 317-285-5363

1990 August: The Monthly Report of Carol Hrycaj (Issues Manager, Tobaco Instittue) includes the news that:

Consulting economists' anti-excise tax op-eds continue to appear in print. Clifford Dobitz's article was published in the Bismarck Tribune; Michael Babcock's op-ed appeared in the Manhattan Mercury. The Indianapolis Star published an op-ed coauthored by Cecil Bohanan and John Horowitz

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.

1993 Mar 23: Jim Savarese is proposing to Cal George at the Tobacco Institute a new Op-ed program.

Outlined below is our proposed op-ed program in opposition to the use of excise taxes to finance health care.

1. Op-ed article by Robert Tollison to be submitted to Wall Street Journal $ 4,000.00
   
   
2. Rebuttal article by Bob Ekelund, Auburn University, to be submitted to the Birmingham News $ 3,000.00
   
   
3. "Monster" tax op-ed project using twenty economists (list attached) to submit articles in opposition to using excise taxes on cigarettes to finance health care reform - to be submitted to twenty newspapers in twenty different states $60,000.00
   
   TOTAL $67,000.00

1993 Apr 8: The economist's network is still functioning, but Savarese and Tollison have negotiated a different deal for the participants. Savarese now bills the Tobacco Institute for economist network op-ed commissions, half-down, and half on delivery. They are being paid for preparing the articles rather than only when they succeeded in getting their articles published. This bill is for $37,000.

• Op-ed article by Robert Tollison to be submitted to Wall Street Journal — $4,000.00
• Rebuttal article by Bob Ekelund, Auburn Univeristy, to be submitted to the Birmingham News — $3,000.00
• "Monster" tax op-ed project using twenty economists to submit articles in opposition to using excise taxes on cigarettes to finance health care reform - to be submitted to twenty newspapers in twenty different states. FIRST HALF = $30,000.00

[They now get $3,000 each per article — half on commission/half on delivery — while Tollison gets $4,000]

1993 Apr 13: Calvin George writes to his Tobacco Industry boss Susan Stuntz asking for permission to spend the $67,000 for the 22 op-eds listed by Savarese.

As previously discussed, the 20 economists proposed for the comprehensive op-ed program in opposition to excise taxes for health care reform have been selected with two primary criteria in mind:

• first, capacity to reach major media markets in states and Congressional Districts represented by key members of the Senate and House Leadership, as well as the Senate Finance and House Ways and Means Committees; and
• second, the previous track record of the economists in being able to place successfully op-eds in the major dailies identified.

The cost of this project would be $67,000, which is consistent with previous experience for similar efforts. I am recommending approval of this proposal. Funds are available for this purpose in #1305-7301 under the line items for "Economists to deliver briefings, testimony, and write articles..." ($45,000) and "Op-eds on...health care costs" ($25,000).

Prof. Cecil E. Bohanon and James E. McClure
Dept. of Economics Ball state University Muncie, Indiana 47306 — Indianapolis Star 6/30/93

1993 June 17: A drafted article "Prohibition Part Deux" on the Canadian cigarette taxes, was being prepared for the Indianapolis Star. This article has been submitted by Cecil Bohanon and James McClure to the Tobacco Institute lawyers and PR staff for sub-editing and approval. It has also appears to have been cleared by the Philip Morris lawyers.

    It compared Canadian cigarette taxes with the 1919 US alcohol Prohibition Act — suggesting that these moves would automatically result in gangsters like Al Capone flourishing, and taking over the cigarette trade — while creating a general community disrespect for the law. Smuggling becomes irresistible. They preach:

[T]he Canadian tobacco tax is not something America ought to emulate. Although cigarettes are not illegal in Canada the distinction between taxation and prohibition is only a matter of degree.

    The obvious corollary is that the difference between the evil of prohibition and the evils of high taxation are also only a matter of degree. High taxes on products consumers desire only lead to illegal markets, and illegal markets erode the fabric of a civil society.

[The tobacco industry couldn't have expressed this idea better themselves. Smoking keeps the fabric of a civil society intact.]

1993 June 30: The Indianapolis Star carries an article co-written by Cecil Bohanon and James McClure from Ball State University. It says:

"Canada has recently embarked on a policy of prohibitive tobacco taxation...Just as in the case of the Merican Prohibition on alcohol, the Canadian tax increase is generating crime and violence...The lesson to be learned by those of us south of the Canadian border is clear. High taxes on products consumers desire only lead to illegal markets. and illegal markets erode the fabric of a civil society."

1993 July: The Tobacco Institute/Savarese listing of cash-for-comment economists now gives Indiana the dual listing of Cecil Bohanon & James E McClure.

1993 July 6: Susan Stuntz circulates more economist letters/op-eds for the file.

• Tollison has a letter that appeared in the New York Times in support of the Wagner/Greir view on cigarette tax excises against that of Professor Grossman (who both he an Wagner had challenged before)
• Dwight Lee had "Smokers already playing their fair share for health care" in the Altanta Journal.
• Cecil Bohanon and James McClure had planted "The prohibitive taxation of cigarettes" on the Indianpolis Star.
• Also included was a clipping of an old Ekelund/Thornton essay which had run on May 19 in the Altanta Journal and Constitution

1993 Aug 3: This is a series of lists dated from March to August 1993. Savarese's staff have sent these to the Tobacco Institute to progressively report successes and failures with the economists writing op-ed pieces and having them published.

    Collectively they give us a good idea as to how the network worked and how litte they managed to plant on the major newspapers (the smaller local papers were obviously easy.) It's also interesting to observe the mechanical processes and the tight control the tobacco industry and its lawyers exerted over these academic lackies.

• The articles were either rejected, revised or passed by Jim Savarese and his staff
• They were then sent for checking and alteration by Calvin George [Cal] at the Tobacco Institute.
• The lawyer David Reemes who worked for the industry's main Washington lawfirm Covington & Burling then cleared them for publication.
• The economist then received the revised copies back for onward transmission to the selected newspapers.
• They would then send a copy to their local Congressmen without mentioning the tobacco industry's contractual arrangement.

INDIANA
Professor Cecil Bohanon, [declined]
James McClure, Department of Economics, Ball State University, Muncie, Indiana
• Mar 23 — [TI designated newspaper/s] Indianapolis Star and Muncie Star
• Apr 9 — [Nothin recorded]
• May 12 — [No information]
• May 18 — Sent material 5/17/93
• June 2 — Will send op-ed on 6/15/93
• June 14— (as above)
• Aug 3 — Published by Indianapolis Star 6/30/93

[This suggests that Bohanon temporarily passed the job over to his associate James McClure]

1994 Feb: "Health Care," Indiana Policy Review, James McClure and Cecil Bohanon.

1995 /E: The annual Media Relations Report at the Tobacco Institute lists the then-current list of academics writing op-ed pieces, together with newcomers.

• Dr Terry Ridgeway, University of Nevada, Las Vegas
• Dr Lowell Gallaway, Ohio University
• Robert Higgs, Independent Institute, Edmonds, Washington
• Dr Robert Pulsinelli, Western Kentucky University

1995 Oct: /E Philip Morris has been sent a list of the Tobacco Instutute's network economists who had been commissioned, and had...

... prepared and submitted op-eds [attacking the FDA] for publication to major newspapers in select states — targetting key Congressional districts:

    Economists prepared and submitted op-eds for publication to major newspapers in select states:

• Dr William Boyes, Arizona State University
• Dr Barry Poulson, University of Colorado
• Dr Dominick Armentano, University of Hartford
• Dr Dwight Lee, University of Georgia, Athens
• Iowa economist tbd [To Be Determined]
• Dr Cecil Bohanan, Ball State University
• Dr Robert Pulsinelli, Western Kentucky University
• Dr Michael Kurth, McNeese State University (Louisiana)
• Dr Bill Shughart, II, University of Mississippi
• Dr Joe Bell, Southwest Missouri State University
• Dr Terry Ridgway, University of Nevada, Las Vegas
• Dr Allen Parkman, University of New Mexico
• Dr Lowell Gallaway, Ohio University
• Dr Ed Price, Oklahoma State University
• Dr William Mitchell, University of Oregon
• Dr J.R. Clark, The University of Tennessee at Chattanooga
• Dr Michael Davis, The University of Texas at Dallas
• Robert Higgs, Independent Institute, Edmonds, Washington
• Dr Charles Breeden, Marquette University

• While FDA claims their focus is on preventing youth smoking, the action is the first step to impose harsher regulations on tobacco;
• The FDA regs will have repercussions on not only the tobacco industry, but vending, confectionery and candy industries, distributors, advertisers and sponsors for sporting events; and
• The regs will have a devastating impact on jobs.

1995 Dec 8: The Savarese Status Report on the FDA Op-ed Program says that Bohanon's draft op-ed had been reviseed and returned to him on November 10. It was to be planted on the Indianapolis Star.

1995 Dec 21: Savarese & Associate's Status report to Carol Hyrcaj at the Tobacco Institute on the FDA op-editorial program.

As reflected in the status report, we have replaced Iowa, Wisconsin, and the Houston congressional district with three new states (California, Massachusetts and West Virginia). As you know, we have already received Robert Sexton's (California) article, as well as confirmation that the economist in Massachusetts is able to participate.

At this time, we are asking those economists that have published, to forward a copy of their article to their congressman/congresswoman.

1996 Jan 5: Status Report on FDA Op-ed Program. It lists 20 successful newpaper plants of their anti-FDA propaganda and the 20 economists who wrote these articles on commission:

INDIANA
Professor Cecil Bohanon,Department of Economics
Ball State University Muncie, Indiana — Indianapolis Star — Last contacted 12/13

[Of course the Congressman's cover letter makes no mention of the fact that the Tobacco Institute paid $3,000 to have the op-ed written.]

Revised op-ed returned to economist 11/10

[The later tagged note suggests that Bohanon had taken umbrage at their changes to his article, and was no longer considered part of the network.]

1996 Jan 26: This Status report for the FDA Op-Ed Program shows that they were still planting articles and contacting Congressmen for the Tobacco Institute.

1996 Feb: /E The Tobacco Institute's Media Relations report on the Economists:

Ongoing
• An extensive economist op-ed program was implemented to focus media attention on the FDA's agenda. The program attacks the FDA proposal from an anti-big government, anti-regulatory perspective. Targeting key Congressional districts:
• Economists prepared and submitted op-eds for publication to major
      newspapers in select states :
  • Dr William Boyes, Arizona State University
  • Dr Barry Poulson, University of Colorado
  • Dr Dominick Armentano, University of Hartford
  • Dr Dwight Lee, University of Georgia, Athens
  • Iowa economist tbd [To Be Determined]
  • Dr Cecil Bohanan, Ball State University
  • Dr Robert Pulsinelli, Western Kentucky University
  • Dr Michael Kurth, McNeese State University (Louisiana)
  • Dr Bill Shughart, II, University of Mississippi
  • Dr Joe Bell, Southwest Missouri State University
  • Dr Terry Ridgway, University of Nevada, Las Vegas
  • Dr Allen Parkman, University of New Mexico
  • Dr Lowell Gallaway, Ohio University
  • Dr Ed Price, Oklahoma State University
  • Dr William Mitchell, University of Oregon
  • Dr J.R. Clark, The University of Tennessee at Chattanooga
  • Dr Michael Davis, The University of Texas at Dallas
  • Robert Higgs, Independent Institute, Edmonds, Washington
  • Dr Charles Breeden, Marquette University

1996 Mar 8: Kelleigh Varnum, of Savarese & Associations advises Carol Hrycaj at the Tobacco Institute that:

We have located an economist to replace John David (WV). His name is Cliff Dobitz (ND). The status report reflects this addition.

    Also attached is Ed Price's (OK) letter to Congressman Largent.

1996 Apr 16: Kelleigh Varnum advises the Tobacco Institute on the progress of the FDA Op-ed Program.

To date, 14 of 20 articles have published.

• David Kurth (LA) informed us that his op-ed published on February 21, in Lagniappe. Apparently, there was a breakdown in communication with the editor and he did not realize that the article had published. Enclosed is a copy of the article. Unfortunately, it is of very poor quality. We will forward the original to you when we receive it.
  
  
• Although the Atlanta Constitution has promised for quite some time to publish Dwight Lee's op-editorial, there still have not been any developments. As a result, we have directed Dwight to pursue other outlets for submission.
  
  
• Cecil Bohanon (IN) is contacting the editor of the Journal Gazette. He will pursue other outlets for submission if they decide not to publish his article.
  
  
• Publication of Barry Poulson's (CO) and Cliff Dobitz's (ND) op-editorials is forthcoming.
  
  
• Both Mike Davis (TX) and Terry Ridgway (NV) are checking with their editors on the status of their articles.

• Indianapolis Star - declined
• Indianapolis News - declined
• Journal Gazette - ?

1996 May 17: Kelleigh Varnum-Roffman of Savarese & Associates is reporting to Walter Woodson at the Tobacco Institute re the FDA Project. She includes:

• Updated status report on the FDA op-editorial program
• Original copy of Cliff Dobitz's (ND) published op-editorial
• Copy of Michael Kurth's (LA) letter to Congressman Hayes

To date, 15 of 20 articles have published. Please find below some brief notes regarding the status of the remaining op-editorials.

• Publication of Barry Poulson's (CO) op-ed is forthcoming.
• Although the Atlanta Constitution has promised for quite some time to publish Dwight Lee's op-editorial, there still have not been any developments. As a result, Lee is pursuing other outlets for submission.
• Cecil Bohanon (IN), Terry Ridgway (NV) and Mike Davis (TX) are checking with the editors of their papers. They will report back to me on the status of their articles. We will pursue other outlets for submission if any of the above are declined.

Professor Cecil Bohanon
      Indianapolis Star declined
      Indianapolis News declined
      Journal Gazett [being tried]
[Bohanon] last contacted 5/10/95

1996 June 24: Status Report on FDA Op-Ed Program lists the various network economists and the articles they have planted with their newspapers, together with the Congressmen who have been contacted. With Cecil Bohanon it lists three attempts to plant an article:

Indianapolis Star - declined
Indianapolis News - declined
Journal Gazette — Last contact 6/11

[There is no mention of James McClure]

1996 Oct: "Socially Responsible Risk Regulations," Indiana Policy Review, October-November 1996, James McClure and C.E. Bohanon.

1998 Aug 15: The Florida "Press Journal" carried an article "Government assults success" by cash-for-comments economist DT Armentano which attacks the McCain tobacco bill and the FDA.

    The list of activities of the other economists shows that the network continued to be operated by the Tobacco Institute itself (under Walter Woodson, and Lance Morgan - both Public Affairs division). [However Savarese is still in the picture.] The op-eds are now being rejected by many newspapers, who are no longer willing to publish tobacco industry propaganda.

And, since legally discovered tobacco documents had already begun to appear on-line, the Tobacco Institute has carefully deleted the names of the Professor of Economics who wrote each op-ed piece.

Bohanan is listed under the heading

INDIANA, Ball State University

• DECLINED: The Indianapolis Star-News
• DECLINED: The Journal Gazette

CONTRIBUTORS:TRMU dlo2 in22