CREATED 4/9/2013
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.
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OPINION ONLY
Fred S McChesney
(misspelled McCeasney) — Emory University of Georgia 'cash-for-comments' economist who worked secretly for the tobacco industry and took a primary role along with Bob Tollison. — Fred McChesney was one of the founding group of economists who advised the Tobacco Institute to run the operation which became the cash-for-comments economists network. The idea of running a team of cash-for-comments academic economists was developed by Ogilvy & Mather Public Relations for the Tobacco Institute in 1983 and 1984. At that time the operation was run by one of O&M's contracted consultants, James Savarese, who had both economics and labor/union contacts, and it focussed on a small core-group of academic economists who were found speaking engagements at various society meetings. Both the Tobacco Institute and Jim Savarese knew Professor Robert Tollison, of the Economics Department of George Mason University who also ran the neo-con/supply-side Public Choice Society. Tollison and his associate Richard Wagner had long worked for the international tobacco lobby organisation ICOSI (later INFOTAB) and they had excellent contacts with a large number of Hayek [libertarian] economists at other universities, due mainly to Tollison's directorship of the Center for the Study of Public Choice, which was located at GMU, but run as a private think-tank. Tobacco Industry money generously supported the Center, and before long Tollison and Savarese were using it as a recruitment and money-laundry service to develop the cash-for-comments network among appropriate academic economists. The idea was to have at least one "Professor of Economics" at a prominent local university, in each of the States, who was willing to support and promote industry propaganda. They were paid on a piece-work basis, averaging $1,000 to $3,000 each for articles planted in local newspapers, or for appearances as 'independent expert witnesses' at legislative or ordinance hearings on smoking bans, or on the raising of excise taxes on cigarettes. The first project began in June 1984 with Tollison and Savarese getting 13 economists on their network to write op-ed articles in support of the tobacco industry position on excise taxes. They were sent first to the Tobacco Institute for 'improvement' and legal clearance, then returned to the economist who was instructed to plant them on a specific local newspaper, then send copies to their Congressman. This became the pattern of operations. Jim Savarese and Bob Tollison (supported by Anne Tollison and staff from the Center) took over the operations from O&M, and they branched out into a diverse range of cash-for-comments academic networks: professors in law, business, marketing, and advertising, and with indoor-air-quality testing experts, risk-assessment specialists, biomedical researchers, etc. These academics all had in common the desire to make money from the tobacco industry without revealing their connection to the 'Merchants of Death'. Savarese and Tollison provided them with the shield from 'legal discovery' so they were able to claim that these were "independent expert opinion articles" (op-eds). Some of the better newspapers may also have paid them separately for their journalistic contributions. Some of the more enthusiastic of these tobacco lackeys were also designated to attend local ordinance hearings on public smoking, and in some cases to attended and gave expert evidence to Congressional inquiries and the like. Their credibility rested on the fact that they were esteemed academics from a university — so, in effect, they mined the credibility of their employer-institution for personal gain. By 1989 Tollison and Savarese seem to have had about 65 Professors of Economics on their books, and about the same number (combined) in the other academic disciplines. The numbers changed over the years, but overall about 100 professors of economics at various state universities were involved. Decline The Savarese-Tollison partnership appears to have broken up around 1990, but Savarese continued to run the operation for most of the decade — often using Tollison just as one source (but he was better paid than the others). Over time — and sometimes abruptly — some of these economists dropped out of the operation. Some obviously did not like their articles being modified by the Tobacco Institute, and [who knows] ... maybe some even developed a conscience? A few new recruits were added regularly to the networks in the 1990 - 1994 period, but the tobacco companies themselves tended to take control of the biomedical research specialist network [probably because of the legal necessity of dealing with them through lawyers to avoid the risk of legal 'discovery']. Of the many academic cash-for-comments networks, the economists' lasted the longest, and it was also the most productive from the industry viewpoint. Fred McChesney was a foundation member of this network, and one of the small group which met with the tobacco lobby and offered advice before the network really got underway. He can be considered as a 'core member'. Network beginnings: - 1979 Jan: Academic economists Professor Robert Tollison and Richard Wagner have been recruited by George Berman of Devon Management Resources to provide material supporting the International Committee on Smoking Issues (ICOSI... later INFOTAB)
- 1980: Tollison and Wagner had been commissioned by ICOSI's Social Acceptability Working Party (SAWP) to write a monograph "Consumer Protection, Public Policy and Cost-Benefit Analysis"
- 1982: Under Tollison and Public Choice guru James Buchanan, the team of Public Choice economists at Virginia Polytechnic/State University resign en masse and migrate over to the break-away, corporate funded, George Mason University (including their think-tank Center) — thus providing the tobacco industry with a Washington DC pool of unfettered free-market Randian-political economists who are all looking for outside commissions.
- 1982 Nov: A labor economic lobbyist working for his own company (through via Ogilvy & Mather PR), James Savarese, proposes to the Tobacco Institute that they use academic economists (mainly Kenneth Greene of SUNY and Harold Hochman of CUNY) to prepare papers opposing cigarette tax excise increases in New York State.
- 1983: The Tobacco Instittue puts the Tollison/Wagner team (which has the resources of the Center for Study of Public Choice, together with Savarese and Ogilvy & Mather PR to prepare a book "Free to Smoke" and later a propaganda booklet Smoking & Society
- 1984 Jan /E. The Tobacco Institute is now expanding the Savarese-run network of economist to other States — mainly recruiting academic economists to write op-eds for their local newspapers. Tollison is able to provide the recruitment services through his Center for the Study of Public Choice and the Public Choice Society.
- 1984 April: The Tobacco Institute has again put Tollison together with Savarese and his associates to prepare a pseudo-study which will become their economic defence against proposed smoking bans in New York resturants. The TI's Excise Tax Plan for this month lists 14 Public Choice economists in other States who have been recruited to help in the fight against excise increases.
- 1984 Jun: The network has now been formalised under the name Committee on Taxation and Economic Growth. with Savarese as administrator. They have about 15 members overall and 10 active op-ed writers.
Some key documents • Professor of Economics at the School of Law, Emory University, Georgia.
• McChesney worked extensively with Richard S Higgins and both worked for the FTC during the early 1980s. Higgins was Deputy Director for Consumer Protection from 1982 to 1986. McChesney was Associate Director for Policy and Evaluation in the Bureau of Consumer Protection, 1981 to 1983.
McChesney's wife Kathleen also worked as a researcher on some papers.
See a jointly authored paper in Anti-trust 2003-4 "Materiality and Method in FTC Advertising Regulations."
1984 Apr 26-27: Proceedings of a Conference on "Consumer Protection Economics" sponsored by the FTC's Bureau of Economics.
[Note Ryan Amacher of Clemson had just left the FTC]
This document contains a study by Richard S Higgins (then FTC) and Fred S McChensey (then Emory University) "An Economic Analysis of the FTC's Ad Substatiation Program" which is an attack on the new principle that advertisers had to be able to prove that their claims were true — as against the FTC being required to prove that they were false. Cigarette filters and health claims were one of the FTC's main focusses at this time.
The article carries the footnote * The views expressed here are the authors'. They doubtless do not reflect the views of some Commissioners, and do not necessarily reflect the views of the Commission itself.
We received helpful comments on earlier drafts from Ronald Bond, Gerard Butters, David Haddock, Cotton Lindsay, Robert Mackay, Michael Maloney, the late Steven Marston, Robert McCormick, William Shughart, Robert Tollison and Bruce Yandle [The two authors, Ryan Amacher and the six [bold] commentators were all tobacco network academics.]
1984 Apr 30: This 109 page DRAFT Tobacco Institute "Cigarette Excise Tax Plan" which was aimed at the Reagan Administration They had an immediate requirement of - One public finance economist for 10 days @ $1,000, [Total $ 10,000 ] including meetings with coalition members and/or the Governor's staff; research and preparation; and testimony.
- One economist for a union workshop on the tax issue, [Total $5,000] including 3 or 4 training sessions over the course of a convention.
- Six economists @ $5,000 and one senior economist 53,000 @ $20,000 for a tax symposium, including publishing of the proceedings at $3,000. [Total $53,000] The senior economist would play an oversight/organizational role and would be responsible for editing the proceedings. Such a symposium would be staged for regional or national impact.
- One economist provided to a public employee union to do original research on the need for adequate services to be funded by broad-based taxes; this would include the final report and testimony. [Total $ 25,000]
It has draft copy and designs for a couple of different booklets aimed at different states, and at labor/union and racial groups.
It also identifies the targetted Congress Committeemen and state Assembleymen most likely to be influenced, and adds an appendix which lists economists who can be enlisted to help.
Potential Economic Consultants
Following is a list of economists in key states who might assist us as consultants. 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 indusry; published articles or research; and speaking availability.
As discussed in the body of this program, our intent is to have a group of individuals who we can call upon regularly to testify, conduct special research projects, and discuss their research and/or views on excise taxes with the media. - California, Thomas Borsherding, Claremont College
- Connecticut, William McEachern, University of Washington
- Florida, Richard Wagner, Florida State University
- Georgia, Fred McChesney, Emory University Law School
- Illinois, James Heins, University of Illinois
- Massachusetts, Harlan Platt, Northeastern University
- Minnesota, Thomas Stimson, University of Minnesota (St. Paul Campus)
- New York, Harold Hochman, City University of New York
- Ohio, David Klingaman, Ohio University
- Pennsylvania, Mark Pauly, University of Pennsylvania
- Texas, Charles Maurice, Texas A&M University
- Washington, Yoram Barazel, University of Washington
- Washington, D.C. Robert D. Tollison, George Mason University
- Wisconsin, Burton Weisbrod, University of Wisconsin
Tollison is the most influential and prestigious on this list; he would be hired to consult on federal tax situations and to oversee efforts of the others throughout the country.
See last page
Yoram Barazel is the only name on this list who appears to have resisted the Institute's overtures.
1984 June: /E In 1984 Robert D. Tollison [of George Mason University] joined forces with four other economists: Harold M. Hochman [CUNY], Thomas E. Borcherding [Claremont College LA], Fred McChesney [Emory Uni] and Dolores T. Martin [Uni of Nebraska], to start the Committee on Taxation and Economic Growth. This very quickly became "an informal committee of economists from 42 states who have collectively and individually participated in activities on behalf of the tobacco industry in the areas of excise taxation and public smoking." This committee was funded by the Tobacco Institute (TI) through Ogilvy & Mather Public Relations (O&M) and James Savarese and Associates. Tollison and James Saverese were old associates. (SourceWatch)
The Tobacco Institute paid to publish a booklet promoting the new organisaton and the five leaders (complete with an avuncular portrait of McChesney) propounding the new philosophy (but without any mention of the Tobacco Institute and only peripheral mention of 'cigarettes'):
The Tobacco Institute booklet attacked Federal Excise Taxes (in general) under the name of "The Committee on Taxation and Economic Growth" [which] opposes excise taxes and believes government should seek other ways to raise revenue.
The following excerpts, taken from public testimony before the U.S. Treasury Department, present some of the strongest arguments against excises. [Five are quoted, with Hochman saying:] "The best way to reform and simplify these levies is to abolish them... fundamental tax reform and simplification should include elimination of federal excise taxes.
Although some of these taxes are imposed on goods that one may think of as luxuries consumed by the well-to-do... many are levied on products purchased at proportionately higher rates by individuals at the lower end of the income distribution. For goods falling in this latter category... the burden falls most heavily on those least able to pay. Moreover, excise taxes, wherever levied, misallocate resources; they cost the economy production and jobs... There is no specific mention of cigarettes and, of course, no mention that this booklet was funded and circulated by the Tobacco Institute.
1984 June: /E Tobacco Institute appendixes to some report. Page 5 is a list of "Potential Economic Consultants." 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 projects, and discuss their research and/or views on excise taxes with budget officials, potential coalition members, legislators, and the media. Thirteen consultants are ordered by State.
STATE | ECONOMIST |
California | Thomas Borsherding, Claremont College |
Connecticut | William McEachern, University of Washington |
Florida | Richard Wagner, Florida State University |
Georgia | Fred McChesney, Emory University Law School |
Illinois | James Heins, University of Illinois |
Massachusetts | Harlan Piatt, Northeastern University |
Minnesota | Thomas Stimson, University of Minnesota, St. Paul |
New York | Harold Hockman, City University of New York |
Ohio | David Klingaman, Ohio University |
Pennsylvania | Mark Pauly, University of Pennsylvania |
Texas | Charles Maurice, Texas A&M University |
Washington, DC. | Robert D. Tollison, George Mason University |
Wisconsin | Burton Weisbord, University of Wisconsin |
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.
Cash-for-Comment Economists |
---|
State | Economist |
California | Thomas Borsherding, Claremont College |
Connecticut | William McEachern, University of Washington |
Florida | Richard Wagner, Florida State University |
Georgia | Fred McChesney, Emory University Law School |
Illinois | James Heins, University of Illinois |
Mass. | Harlan Platt , Northeastern University |
Minnesota | Thomas Stimson, University of Minnesota (St.P) |
New York | Harold Hockman, City University of New York |
Ohio | David Klingaman, Ohio University |
Penn. | Mark Pauly, University of Pennsylvania |
Texas | Charles Maurice, Texas A&M University |
Wash.DC. | Robert D Tollison, George Mason University. |
Wisconsin | Burton Weisbord, University of Wisconsin |
[This was the core group which established the cash-for-contents network. Over the years the numbers reached over 100.] |
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.
1984 July 16: A summary report of the Tobacco Institute notes that they had managed to plant economist witnesses at six of the eight Treasury Department regional hearings.
- Thomas Borsherding at Los Angelos on June 12
- Delores Martin at Minneapolist on June 19
- Fred McChesney at Atlanta on June 20
- Harold Hochman at New York on July 25 (sic...June?)
- Robert Tollison at Washington on June 26
- Roger Kormendi at Springfield June 28
Kormendi was the only one not formally a member of their network at this time.
1984 Nov 20: O&M is organising the first economists forum at the Public Choice Society meeting in New Orleans, Feb 21-23. The topic would be "Public Choices About Tax Reform."
W.F. Shugart II, an economist from Clemson University, would chair the panel. Those who would present papers would be: - Thomas Borcherding, from Claremont Graduate School. Subject: "Tax Reform and Simplification: A Public Choice Perspective."
- Harold Hochman, from City University of New York. Subject: "The Value-Added Tax: Do We Need Another Excise Tax?"
- Fred McChesney, Emory University Law School. Subject: "Tax Reform in a Rent-Seeking Perspective: The Role of Interests."
- Gary Anderson, an economist from George Mason University, would be the discussant.
Bob Tollison would be responsible for getting us on the program. He and Jim Savarese would work with each of the people to ensure that each paper contained a clear anti-excise tax message.
Shughart and Anderson would also mention excises in their presentations. We will be obtaining CV s from Anderson and Shugart, who Jim and Bob Tollison know well. The other economists have all worked with us before. Savarese's estimate of the costs for running this Economists' Forum project with the three papers at $2,000 each and Gary Anderson with $1000, plus travel, hotel, administration, etc. was $16,000.
1984 Nov 27: Ogilvy & Mather are organising an Atlanta Tax Symposium, for the Tobacco Institute on Jan 18 1985. They have enlisted:
- Congressman Wyche Fowler ("who has agreed to accept an honorarium"!)
- Tom Morgan, Dean of Emory Law School (moderator)
- "Robert Tollison and Fred McChesney will present remarks, which
Jim Savarese [industry consultant] will assist in preparing."
On another subject, attached you will find CV's on William Shughart and Dwight Lee, who will participate in the Public Choice Society meeting in February.
The Public Choice Society, whose annual meeting we have recommended as a forum for the excise tax program, is an organization of economists, political scientists, historians, and social scientists. It was founded in 1960.
Dennis Mueller, an economist from the University of Maryland,
is this year's president. Bob Tollison is a member.
1985–86: The Center for Policy Studies at Clemson University appeared to be publishing studies by the cash-for-comments economists, McKenzie, Shughart, Tollison, Kimenyi, Yandle, Matt Lindsay, Maloney, McChesney, Staaf. Laband — and others not apparently in the network.
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. This economist will be detailed to make the contact with Congressmen [by sending him/them the published op-ed]: GEORGIA (Rep. Fowler, Rep. Jenkins) • Professor Fred McChesney , Emory University, Atlanta, Georgia
1985 Feb 8: Robert Tollison, now the director of the Center for the Study of Public Choice (GMU - but apparently not on staff), Fred McChesney (Emory University School of Law) are running a symposium on excise taxes at Emory University for the Tobacco Institute. This one hour symposium will focus upon the major tax issues facing Congress in 1985. The panelists will discuss issues such as the flat tax proposal, a national sales tax and the closing of tax loopholes.
The Tobacco Institute has a draft copy of a brochure for this seminar [Filed under "Testimony"] which says, "McChesney will take a Liberal Position and Tollison will take a Conservative Position" and it gives Tollisons's affiliations with GMU but not the Center.
It also reveals that Ogilvy & Mather would provide a video record of the event.
1985 Mar: Tobacco Institute document "Federal Markets" on the likely allies the industry has in opposing the earmarking of cigarette excises for healthcare.
Market: Georgia
Positive Actions by Local Allies:
Academics: Professor Fred McChesney (Emory University) wrote an op-ed article on tax reform that appeared in the Atlanta Journal Constitution on March 10 (newspaper in home district of Ways & Means Member Fowler). Copies were sent to Fowler and Ways & Means Member Jenkins.
Professor McChesney and Dr Robert Tollison (George Mason University) participated in tax reform seminar sponsored by Emory University and featuring Congressman Fowler.
1985 Mar: Tobacco Institute document "Federal Markets" on the likely allies the industry has acquired to oppose the earmarking of cigarette excises for healthcare. It also includes a record of their successful activities in each state Market: GEORGIA Positive Actions by Local Allies: Academics: Professor Fred McChesney (Emory University) wrote an op-ed article on tax reform that appeared in the Atlanta Journal Constitution on March 10 (newspaper in home district of Ways, & Means Member Fowler). Copies were sent to Fowler and Ways & Means Member Jenkins.
Professor McChesney and Dr Robert Tollison (George Mason, University) participated in tax reform seminar sponsored by, Emory University and featuring Congressman Fowler.
See page 4 See Success List
1985 May 29: Fred Panzer writes to other issues-executives at the Tobacco Institute praising the success of the Op-ed Article Project on Excise Taxes. So far, sixteen op-ed pieces of twenty-three submitted have either appeared or have been accepted for publication.That's a..700 batting average!
We're looking for about 35 of our economists to participate. They're the ones in states represented on the two tax writing committees of Congress.
Attached are clippings of ten of the articles: Des Moines Register, Chicago Sun-Times, Muskegon Chronicle, Hartford Courant, Caspar Star-Tribune, Tulsa Tribune, Austin American-Statesman, Atlanta Journal, Greenville (S.C.) News, and Huntsville (Ala.) Times. You may agree that it would be a natural follow-on to arrange for sending the article to the approriate member of the state legislative tax writing committee. This would help create the impression that we have more support "out there" than expected. If nothing else, the exercise would give our lobbyists more credible and positive material to leave behind with state legislators.
[This a variation in what became known as a 'Big Chill' tactic of letting legislators know that you had the money and power to challenge them in campaigns and Congress if they didn't fall into line.] The authors of these clippings are Thomas Pogue; A James Heins; Paul Menchik; Domenick Armentano; Todd Sadler; Joseph Jadlow; Henry Butler; Fred McChesney; Ryan Amacher; robert Ekelund Jr; who all parade their university credentials, and who all forget to mention that the Tobacco Institute paid them to write these columns.
1985 June 30 to Sep 6: The Tobacco Institute has arranged the weekly syndication of a series of Opinion pieces, comparing statements of four economists (varied weekly) on various subjects. These have been picked up and run by newspapers; presumably in the belief that they are worthy articles of economic opinion. The economists quoted are:
- K Celese Gaspari (Uni of Vermont) — a cash-for-comment economist
- David N Laband (Uni of Maryland) — a cash-for-comment economist
- Fred McChesney (Emory Uni) — a cash-for-comment economist
- Dean Tipps — nominally a union official — actually Citizens for Tax Justice lobbyist
- Allen M Parkman (Uni of New Mexico) — a cash-for-comment economist
- Richard Vedder (Ohio Uni) — a cash-for-comment economist
- Roger Faith (Arkansas State Uni) — a cash-for-comment economist
- Lee Alston (Williams college) — a cash-for-comment economist
- William Hunter (Marquette Uni) — a cash-for-comment economist
- Dennis Logue (Dartmouth College) — a cash-for-comment economist
- William Shughart (George Mason Uni) — a cash-for-comment economist
- Harold Hochman (City Uni of New York) — a cash-for-comment economist
- David Wilhelm (Citizens for Tax Justice) — think-tank lobbyist
- Joseph Jadlow (Oklahoma State Uni) — a cash-for-comment economist
- Robert Ekelund (Auburn Uni) — a cash-for-comment economist
- Thomas Borcherding (Claremont Grad. School) — a cash-for-comment economist
[It's great to see newspapers publishing such a diversity of economic opinion!]
1985 June 6: James Savarase & Associates has submitted its bill to Peter Sparber at the Tobacco Institute. The billing shows that some economists were paid via Robert Tollison, and that an Emory University Symposium had been held with Congressman [Wyche] Fowler.
- Robert D. Tollison (includes services of four economists and expenses) Completion of 40 States' Economist List. . . . . .  . . . . $6.055
- Emory University Symposium with Congressman Fowler (Robert Tollison and Fred McChesney + $1,500 to Emory Law School). . . . . . . $10,006
[This was McChesney's Law school.] - Public Choice Society Session. . . . . . . . . . . Total $17,326
- Robert Tollison ($6863),
- William Shughart ($2908),
- Fred McChesney ($2748),
- Thomas Borcherding ($3033)
- Dwight Lee (DRL Inc) ($1773)
- Op-ed Project Professional Fees and Expenses. . . . . Total $23,346
- Robert Tollison (also laundering payment to four economists) — $15,346
- A James Heins, Richard Vedder, Todd Sandler, Ryan Amacher, Joseph Jadlow, Henry Butler, RN Ekelund, Fred McChesney — (each $1000)
TOTAL A/C was for $56.733.81
1985 June 12: The formal "Committee on Taxation and Economic Growth" put together by the tobacco industry to support its propaganda, now has its own letterhead to write to Congressional politicians and aides. It claims to be a "bi-partisan organization of public policy experts and public finance economists founded in 1984 to examine ways of creating a federal tax system which will provide adequate revenue in an efficient, equitable manner. The letterhead shows that: - Robert Tollison of George Mason Institute is Chairman,
and the Executive Board consists of: - Thomas Borcherding, Claremont Graduate School
- Harold Hochman, Baruch College, CUNY
- Cotton M Lindsay, Clemson university
- Fred McChesney, Emory university,
- Dwight Lee, University of Georgia
- Richard Wagner, Florida State Uni.
[Note Delores Martin's name is not on the letterhead, even though she was involved initially, and later with the network.]
1985 Sep 6: Acey at the Tobacco Institute has sent a bundle of newspaper clippings along to their printer/copier. Enclosed are 15 original newspaper clipings (don't lose them!) some in better shape than others.
We'd like these articles on seperate sheets so the lobbiests (sp) can make up their own individual packets. They will also be including some publications too.
This brings us back to the infamous Tax Folder... To hold all these clippings, publicatiosn and information on tax articles.
Size should be a 9 x 12 folder to fit in a 9x 12 envelope. You know what I mean. Good looking folder, not too slick. Articles should be in black & white.
[This economist's article is to be circulated.]
1985 Nov 6: Ken Arnold of Ogilvy & Mather PR writes to Fred Panzer at the Tobacco Institute. Fred, here is a summary of the Economist Op-ed and Economic News Service projects.
With regard to the Economist Op-ed project, we have submitted a total of 34 op-ed articles, and 18 of them have been published. Recent articles appeared in the Huntsville Times on September 11, by Robert Ekelund and in the Providence Journal on October 25, by Arthur Mead (see attachments).
Enclosed is a revised op-ed chart, indicating House Ways & Means and Senate Finance Committee Members impacted to date and the circulation of each newspaper publishing the articles. In most cases, the papers are the largest in the targeted district. This chart list all the important Congressmen they want their economists to influence, including: GEORGIA Congressman Wyche Fowler Atlanta Constitution (c. 600,000) March 10 Professor Fred McChesney Emory University
Economic News Service:
Ogilvy & Mather appear to have organised a separate syndication system for economic articles which did not carry the names of the cash-for-comments academics, but which were simply distributed to these newspapers as if they were news. However, the titles show that they were carefully crafted to suit the local prejudices and interests — so they were probably written anonymously by the same academics.
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 Fred McChesney (Emory University) wrote an op-ed article on tax reform that appeared in the Atlanta 3ourna].
Constitution on March 10 (newspaper in home district of Ways & Means Member Fowler). Copies were sent to Fowler and Ways & Means Member Jenkins.
Professor McChesney and Dr Robert Tollison (George Mas.on University) participated in tax reform seminar sponsored by Emory University and featuring Congressman Fowler.
1986 Jan: Public Relations Resource Catalogue. The Tobacco Insitute's Public Relations Resources Commitee has listed him as a witness [This is an enlarged version of the 1984 listing] along with their pamplets, booklets, posters, wall-stickers, tapes, newspaper articles, scientific reports and other resources — all with explanations as to where these resources can be most usefully applied.
He is a Professor and an Economist at Emory University, School of Law, Atlanta GA. who is willing to act as an industry witness and give evidence on Excise Taxes. Copies of McChesney's testimony (given at an Atlanta Hearing) are included for educational purposes.
This booklet (for the Regional Directors) also gives a list of 29 successful op-ed articles opposing excise tax changes that these economists have written and planted on newspapers for the tobacco industry. These are available for use in other regions.
Page 69 notes, under the heading "Excise Taxes: A Letter Writing Campaign", that copies of an "Eight-page brochure detailing how to write effective letters to the editor opposing excise taxes" is available, either with or without the Tobacco Institute identification (so that it can be circulated by allied organisations who don't want to admit this is for the Tobacco Institute).
Also available is an eight-page booklet "Health Care Financing: We Can't Afford To Make A Mistake."
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.
The Tobacco Institute offered their Regional Directors the C/Vs of all of these economists, and said "Requests for economists should be made ASAP. Allow at least one week. PR approval needed." He is listed [along with 50 other economists] as a contact in: - Professor Fred McChesney
Emory University, School of Law, Atlanta, GA
He is available on two weeks notice as a witness for hire. 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. He includes an OTA paper on the dangers of smoking and also... ... 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. The scent of possible research money on top of the op-ed writing must have generated substantial academic enthusiasm. He is listed as one of the recipients of this letter on the "Brainstorming - Research Ideas" project.
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. This went out to the long list of cash-for-comments economist on the network.
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.
They have also provided a list of the 52 Professors of Economics from various State Universities who can be called on to provide services for roughly $1000 a time: This economists name and address are included under "Tobacco & Taxation (listed by state, alphabetically)".
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. He also lists 21 of the economist (including this one) and provides copies of many of their recent articles.
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. This list differs from others in providing a list of the economic specialities of each network economist, along with the Congresmen they were designated to influence. He is listed as specializing in: GEORGIA (Rep. Fowler, Rep. Jenkins)
Professor Fred McChesney
Emory University Atlanta, Georgia
[Specializations not available]
1986 Dec 8: Sam Chilcote is summing up the Tobacco Institute's activities in fighting the Packwood Tax Plan which attempted to impose special excise taxes on tobacco, alcohol and fuel (in the oil crisis years) to reduce use. Packwood also wanted to make these taxes and tarffs non-deducatable for federal income tax purposes.
The document bundle (219 pages) includes:
- Pages 2 to 34: A major study done for the TI by Policy Economics Group
- Pages 35 to 50: Another major study commissioned from DeSeve Economics for the Coalition Against Regressive Taxation (CART) [funded by tobacco to act as a front]
- Pages 51 to 57: A couple of papers done for Covington & Burling
- Pages 58 to 100: A long document which has deliberately NOT included the name of the organisation which produced it within the document itself. (But done by deSeve Economics Associates Inc).
- Pages 101 to 129 : A paper on the "Burden of Tobacco Taxes on Selected Demographic Groups"
- Pages 130 to 144: Some booklet trying to rabble-rouse the Hispanic and Black communities and make them believe Packwood is attacking them racially.
- Page 145 to 177: A Citizens for Tax Justice 'poll' on attitudes. and Coalition Against Regressive Taxation document
- From Page 178 on: many of the op-eds they have had published in newspapers by the cash-for-comment academic economists, (including one from this source.)
See McChesney's Atlanta Journal-Consitutition article on page 207 of the document bundle. Also see pages 210 to 219 of the bundle which have multiple Letters-to-editor/commentary from 17 cash-for-comments economists — William Hunter, Dennis Logue, William Shugart, Harold Hochman. David Wilhelm, Joseph Jadlow, Robert Ekelund, Thomas Borcherding, K Celeste Gaspari, David Laband, Fred McChesney, Dean Tipps, Allen Parkman, Richard Vedder, Roger Faith, Lee Alson, and William Hunter, They had obviously managed to plant these multiple-author pieces on a number of newspapers.
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. There are now 62 names on the list (Some states have 4 or 5) not counting himself and Bob Tollison. The details given for each consist of State, Regional Division [of the TI], Name, Address and Telephone number. Added to this is a list of the 'Projects' they have completed (in later lists, also the names of Congressmen they have contacted.)
Virtually all of these cash-for-comment academics have been generating op-ed articles for newspapers, or have, in some unspecified way, opposed the Packwood Excise Tax plan — or perhaps helped fake up one of the 'Chase' [Econometrics studies]. A few participants have attended Congressional or government inquiries ['Treasury I') or local ordinance hearings as 'independent witnesses' while secretly acting for the tobacco industry. Two of the 64 members (Ann Harper-Fender and Gary Anderson) were acting termporarily as advisors to Ronald Reagan's Advisory Council on Intergovernmental Relations— which sought to bring pressure on the FDA, EPA and OSHA and stop them being pro-active with smoking bans.
Other participants have been promoting the industry line at various academic conferences and fora [mainly as keynote speakers at economic society meetings] , and a few of the core-team were involved in brianstorming sessions with members of the tobacco industry looking for new angles for their PR, and for possible research project which might generate some economic propaganda for the industry.
Many of them have joined in with the industry's orchestrated letter-writing campaigns opposing workplace smoking bans. - 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: Illinois [ Region III ]
Professor Fred McChesney
School of Law Atlanta , University of Chicago , Chicago, Illinois , 312-962-9590
Services rendered:- original excise tax op-ed
- Tax Conference - Cong. Fowler
- academic forum
- regional hearing, Treasury I - Atlanta
1987 Jan 6: and 12 Jim Savarese advises the Tobacco Institute that some economists were no longer working for his network. However McChesney is still being listed as their main Illinois 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 invoice is missing, and he gives no details of the current project.]
An internal memo within the Tobacco Institute explains to Regional Directors why they had needed Savarese to check on availability: 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 Armentano, 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 plus a few new ones.[ Greg Niehaus, Mario Rizzo, Roger Riefler, and Boon Yoon.]
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: ILLINOIS Professor Bill Bryan Department of Finance, University of Illinois, 1206 S. 6th Street,Champaign, IL 61820, 217-333-2110
Professor Fred McChesney
School of Law, University of Chicago, 1111 East 60th Street, Chicago, Illinois. 60637, 312-962-9590
Professor James Heins
University of Illinois, Department of Economics, 330 Commerce Building, West 1206 S. Sixth Street, Champaign, Illinois, 61820
1987 May 5: Sam Chilcote (head of Tobacco Institute) memo to the Executive Committee re. tobacco advertising ban in Canada and the US and the Strategies and Programs that the TI have implemented to block them, He notes: Coalitions and Expert Witnesses = - Prof Bert Neuborne, New York University Law School — a First Amendment attorney.
- Prof Philip Kurland , University of Chicago Law School — a First Amendment attorney
- Prof Roger Blackwell , Ohio State University - marketing expert
- Prof Scott Ward , Wharton School of Business - marketing expert
- Prof Jean Boddewyn , Baruch College, City Uni of New York - marketing expert
- Michael Waterson , research director, Advertising Association of Great Britain - marketing expert
- Roger Beatson , European Association of Advertising Agencies. - marketing expert
- Darwin Johnson , Peat Marwick's Policy Economic Group on the economic impact of an ad ban. (Economist writing op-ed articles - for lobbying congressmen)
- Prof Fred McChesney , University of Chicago Law School (Economist writing op-ed articles - for lobbying congressmen)
- Vernon Dempsey , Phoenix Marketing, on cigarette
sampling practices.
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. This simplistic analysis is accompanied by a list of the cash-for-comments economist from the network [to whom it will presumably be sent] together with handwritten notes as to the skills and value of each as witnesses at legislatures or local ordinance hearings.
Professor Fred McChesney: No contact Reported to be OK and could be used in future.
1987 May 22: Bill Trisler sent his evaluation of economic witnesses for Region III to George Minshew at the Tobacco Institute. ILLINOIS Professor Fred McChesney, School of Law University of Chicago, Chicago, Illinois It will be two years, come this November, since we last had a tax issue in the Illinois General Asembly.
At this time, the only explanation I can give for not having made contact with Professor McChesney, is that my schedule has been so ongoing that it has been virtually impossible. As you know George, legislation is quite heavy in my Region, I will however give my best effort to contacting this person immediately.
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. It was secretly directed by Robert Tollison from George Mason University with Savarese as the organiser and front.
In the mid 1987 period, the project was controlled by 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.
Saverese and Tollison appear to have been in some form of loose partnership, because Anna Tollison, the wife of Bob Tollison, was employed by James Savarese & Associates to keep a record of the articles generated by their 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] She included a long list of the economists who wrote the articles, the newspapers in which they were published, together with their circulation figures [eg. the potential number of readers they may have influenced] and the publication date. This economist is featured on her list.ILLINOIS, McChesney , [no publication details} ,,
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. [This proves, beyond doubt, that under their arrangement with the network economists, they were only paid if their op-eds were published in local newspapers, and if they actually sent letters to their Congressmen.]
The attached list showed who was considered reliable or unreliable:
DEMOCRAT WAYS & MEANS COMMITTEE PROJECT |
STATE | Democrat Congressmen | Economist | Reliability |
Illinois | Dan Rosenkowski Marty Russo | Fred McChesney | Unreliable |
Florida | Sam Gibbons | Richard Wagner | Unreliable |
Texas | J. J. Pickle Michael A. Andrews | Charles Maurice | RELIABLE |
California | Fortney H. (Pete) Stark Robert T. Matsui | Gary Anderson | RELIABLE |
Indiana | Andrew Jacobs | Cecil Bohanon | RELIABLE |
Tennessee | Harold E. Ford | Brian Goff (in Kentuxky) | RELIABLE |
Georgia | Ed Jenkins | Dwight Lee | RELIABLE |
Missouri | Richard A. Gephardt | Tom Wyrick | Unreliable |
New Jersey | Frank J. Guarini | JR Clark | RELIABLE |
Arkansas | Beryl Anthony, Jr | David ER Gay | Unreliable |
Alabama | Ronnie Flippo | Robert Ekelund | RELIABLE |
North Dakota | Byron Dorgan | Cliff Dobitz | RELIABLE |
Connecticut | Barbara Kennelly | Dominick Amento | Unreliable |
Pennsylvania | William J. Coyne | Ann Harper-Fender | Unreliable |
Wisconsin | Jim Moody | William Hunter | RELIABLE |
---|
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. ILLINOIS Professor Fred McChesney University of Chicago Chicago, IL
Excise Tax Op Eds: None accepted for publication. Economic Witness/Testimony:(nil) Field Staff Contact: None. Field Staff Evaluation: None.
1988 Feb 8: The Tobacco Institute to its Regional VPs and Directors. Attached is an updated list of The Institute's cadre of excise tax economists. These economists are available for testimony, one-on-one meetings with legislators, writing letters and op-ed pieces in the states in which they teach, as well as in any state you deem appropriate. This economist is listed.
1988 July 27: Richard Wagner, writing on the letterhead of the Center for Study of Public Choice at George Mason University, writes to James Savarese [as surrogate for the Tobacco Institute] outlining a book editing project being mounted by himself and Robert Tollison.
The tobacco industry is fighting to block the 'ear-marking' of cigarette excise taxes for Federal health programs. . Bob and I both think we have an excellent chance of getting [libertarian journalist Henri] Lepage, as well as having a strong chance of getting [Nobel Prize-winner James] Buchanan.
You may not know of Lepage. He is a prominent French journalist-economist, who several years ago had an international best seller that was translated into English as Tomorrow, Capitalism. Lepage is presently conducting a major research project into pricing in French utilities, and finds that the actual conduct of French utflities bears no relation to the normative economics of user-charging [actually a gross overstatement], but bears a strong relationship to the theory of public choice.
I think you will agree that we have the makings of a strong and interesting book on user-charges and tax earmarking, one that will challenge very strongly the halo that seems to surround these terms in ordinary discourse about tax policy. All of those involved [apart from LePage] were cash-for-comment economists. Chapter 11 — "Excises, Earmarking and Extortion in Government User Charges," by Fred S. McChesney, Emory University. The economic case for excise taxes and user charges (whether or not earmarked) is complex and flawed. The author discusses how earmarked user charges lead to political opportunism and inefficient pricing. The Tobacco Institute's Tax Hearing Readiness Plan in the following year had a note saying: Several new excise tax-related studies are underway and will be completed by spring 1989. In addition, an update of the Chase economic impact study has been commissioned.
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.
Preliminary research has been conducted assessing public attitudes toward excise taxes.
Specialist PR firm Fleishman-Hilliard were then contracted to promote this book and its authors around the various states in the USA. See
1989 Jan 11: The Tobacco Institute's Scientific Consultancy Activity 1988-89 This is an 80 page mixed bag of files dumped together [Well worth perusing]. The first document is from 1990 [ordered in reverse]
- Pages 3 to 23 begin 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. ILLINOIS Prof Bill Bryan, Dept Finance, Uni of Illinois
Prof Fred McChesney, School of Law, Uni of Chicago
Prof James Heins, Department of Economics, Uni of Illinois.
[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.] This document has the speaker's powerpoints, including a list of network economists divided on a State-by-State basis. Note the document is 117 pages The outline for the Powerpoint slides is here in full, together with the names of the politicians they were required to influence. It boasts that the.. 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 May 31: Debbie Schoonmaker recommends funding of Tollison & Wagner's "Earmarking Book Proposal"
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.
This is an updated list with the current locations of each, with phone numbers and addresses.
ILLINOIS Professor Bill Bryan Department of Finance, 1206 S. 6th Street, University of Illinois Champaign, IL 61820 217-333-2110
Professor Fred McChesney School of Law, University of Chicago 1111 East 60th Street Chicago, Illinois 60637 312-962-9590
Professor James Heins University of Illinois, Department of Economics 330 Commerce Building, West 1206 S. Sixth Street Champaign, Illinois 61820
1990 Oct 19: Richard Wagner, as section-chairman of the Atlantic Economic Society [subtitled "Patriots of the Future", Williamsburg] reports to James Savarese on a session he has run on "User Fees and Budgetary Politics." [The document is clearly designed as proof of payable services to the TI]
He outlines his introductory remarks, then writes: The participants did the rest. Dwight Lee, Fred McChesney, and Robert Tollison each presented their papers dealing with aspects of the session's theme, and Kevin Grier and Bruce Yandle offered some interesting observations in discussing the papers.
Indeed, one of Bruce Yandle's comments was to the effect that the three papers together provided a quite coherent, alternative body of analysis to the conventional literature on user fees.
[All speakers and pre-selected discussants were members of the cash-for-comments network]
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
They use the old straw-man scare techniques of the sky-falling.
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. Which, as anyone who has lived in England, Canada, Australia, etc. knows, is pure rubbish.
Along with McChesney and his associates, also on this list of signatories were a number of think-tank lobbyists [including most of the Hoover Institute] and others who worked for the tobacco industry, and the Research Director of the Independent Institute, Robert Higgs, who was also a fill-in network economist.
Excise Tax Forum |
---|
1996 Aug 14: Philip Morris and RJ Reynolds were trying to put together a coalition of tobacco and alcohol companies and organizations to run a three-day "Comprehensive Inter-industry Forum on Excise Taxes", to be held early January 1997 in Palm Beach, the Bahamas, or Nassau.
It would bring together "15 Leading Academics, 10 Industry Representatives, 5 Decision Makers, and 5 Representatives from the Public Policy Community [eg. think-tank operatives]."
It would be funded by the tobacco companies through the Coalition Against Regressive Taxation (CART) [a tobacco front], but officially run by the Tax Foundation
[A subsidiary of Citizens for a Sound Economy which is now known as FreedomWorks.]
Deliverables The Excise Tax Forum will produce two immediate deliverables:
- A special journal supplement, and related articles summarizing the proceedings of the meeting. It is anticipated that this will be published in a scholarly economic journal:
- Press materials and video summarizing the meeting, and its findings.
In addition, participants in each of the four workshops will determine at least one area for additional research. The result of each of these research projects will be an academic journal article and related press material.
Estimated Cost. Provisions wIll be made to provide small honoraria to forum participants [those who attend, not just those who speak] and all expenses will be paid by the sponsors. These expenses include airfare, ground transportation, 2 hotel nights, and all food and sponsored entertainment.
As crrently envisioned, the cost for the Excise Tax Forum will be approximately $195,000.[Plus the cost of future research committed.]
It is recommended that a small New York based boutique shop, Current Medical Directions (CMD), be hired to undertake this event.
Independent Institute |
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The Independent Institute, which is itself a component of the Atlas Group of ultra-free-market think tanks with links to the Alexis de Tocqueville Institute [all heavily dependent on commissioned corporate funding] appears to have taken over the role of administrator of the Tobacco Institute's cash-for-comments network at the end of the 1990s.
Their research director and journal editor, Robert Higgs, was already a member of the network. Tobacco funding continued to flow to the Independent Institute which appears to have taken on the role of 'warehousing' these academic supporters to insulate them from discovery. The Institute acquired the bulk of the cabal of cash-for-comments economists who were still operating, and some who had been retired:
Senior Fellows - Bruce L Benson, Florida State
- Robert Higgs, Independent Institute
- William Shugart, Utah State
- Richard Vedder, Ohio University
Research Fellows - Burton Abrams, Uni of Delaware
- Gary Anderson, California State at Northridge
- Dominick Armentano, Uni of Hartford
- Peter Boettke, George Mason Uni
- Thomas DiLorenzo, Loyola College, Maryland
- Robert Ekelund, Auburn Uni
- Lowell E Gallaway, Ohio Uni
- Randall Holcombe, Florida State
- Dwight Lee, Southern Methodist Uni
- Cotton 'Matt' Lindsay, Clemson Uni
- Fred McChesney, Northwestern Uni
- Mark Pauly, Uni of Pennsylvania
- Richard Stroup, Montana State
- Mark Thornton, Ludwig von Mises Institute
- Richard Wagner, George Mason Uni
- Bruce Yandle, Clemson Uni
Also dozens of other academics and writers who provided independent contract services to the tobacco industry — like Richard Epstein, John Goodman, Peter Huber, Paul Craig Roberts, Paul Rubin, Peter Samuel, S Fred Singer. Russell Sobel, etc.
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