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

Some key documents

• Note that Savarese was used by the Tobacco Institute in Stockholm
    [See also John Savarese].

1946 /E: Born

1969–72: , he was an assistant economics professor at Virginia Commonwealth University in Richmond.

1972: - 1981 James Savarese was initially employed by the American Federation of State, County and Municipal Employees (AFSCME) which was one of the largest organizations in the AFL-CIO.

1980 Jan 24: Tobacco Insitute memo from Paul Knopick.

Diane Savarese, who has written freelance articles for the Washington Star asked about doing the same for TTO. [The Tobacco Observer newsletter] We'd be happy to have her submit an article now and again — with the understanding that the work is not done on TI time.

1980 Jan 28: Dianne Savarese is listed as an attendee at the Feb 1980 TI's "College of Tobacco Knowledge" She may have been a relative — but was probably not his wife or sister.

1981: Founded James Savarese & Associates.

1982 Feb: Economic Impact of Expanding Smoking Prohibitions in Mongomery County. Prepared by: James Savarese and Associates, Inc.

1982 Feb: [See 1983 Sep 21 Tobacco Institute Draft Communications Plan] Reference to:

• "Economic Impact of Expanding Smoking Prohibitions in Montgomery County" by James Savarese and Associates, Inc.;
• "A Survey of Opinions toward a Proposed Smoking Ordinance in Montgomery County" prepared by Hamilton and Staff forJames Savarese and Associates;

1982 Feb: The company James Savarese & Associates Inc, has prepared a report on the "Economic Impact of Smoking Prohibiiton in Mongomery County" for the Tobacco Institute. It is 71 pages long, and contains all the finger-to-the-breeze assumptions that economists love to present as facts.

[Of course it emphasises the additional costs of bans, and ignores any potential benefit (health, fires, cleaning bills, pollution costs.]

[ Savarese manages to come up with some impressive tables which are almost totally irrelevant using Theodore Sterling's calculations!.]

1982 Dec 22: Mike Kerrigan at the Tobacco Institute see difficulties ahead for the tobacco industry with the New York Legislature in 1983. He wants to recruit two 'lobbyists' James Saverese and Joe Kilgallon for the "Bootlegging project". [Spreading claims that increases in cigarette excises will result in smuggling and loss of state income.]

    He is going to invite them to lunch tomorrow with Jack Kelly (TI) and lawyer John Rupp of Covington & Burling.

I believe The Tobacco Institute should take the necessary steps to deeply involve Jim and Joe to assist us in our New York legislative efforts in 1983. I think you will agree that they both can materially improve our chances of success.

1983 Feb: Report on New York State Finances : The Cigarette Tax, by James Savarese & Associates, February 1583.

1983 Feb 8: A Press Release put out in March for the Council of Labor Union Women (CLUW) (on abortion) by Ogilvy Adams & Rinehart [who work for the Tobacco Institute], provides as listed contacts, James Carey, Leslie Dawson, Martin Gleason, and James Savarese. [either James Savarese & Associates, or the Tobacco Institute],

1983 Apr 21: Trish Milita's associate at Ogilvy & Mather PR, Marcia Silverman, writes to Peter Sparber at the Tobacco Institute.

In an effort to create organized labor opposition to certain workplace smoking restrictions, Ogilvy & Mather has targeted several unions for initial contacts and discussions on the issue.

    These unions have been selected on the basis of the industries they have organized, the size and potential growth of their membership, their clout within the labor movement and their political strength. Brief descriptions of eight of these unions follow:

1983 July 29: Ogilvy & Mather's bill to the Tobacco Institute for July 1983 contains a $900 charge for James Savarese (10 hrs at $90 ph). The others are only listed by their O&M titles, so Savarese was obviously an outside contractor to O&M.

1983 Sep 21: Tobacco Institute Draft Communications Plan

1984 Feb 16: Draft outline of the book to be derived from Smoking and Society conference (June 1984 New York) and edited by Robert D Tollison. It will have chapters written by various experts, and the international tobacco lobby group INFOTAB is to distribute the book.

The Incidence of Taxes on Smoking (Savarese/Shughart)
Smoking is a heavily taxed activity. In general, the burden of the tax is shared by consumers (in the form of higher prices), producers of tobacco products (in the form of reduced profits) and tobacco farmers (in the form of lower rents).

    This section contains an evaluation of tax equity, including a consideration of how the burden is distributed among these three groups. The analysis utilizes US data as well as data from several other countries around the world.

    The paper presents evidence that taxes on smoking are regressive, ie, that excise taxes on cigarettes fall more heavily on low-income consumers.

[Both Tollison and Shughart are core-nmembers of the cash-for-comments economists network. Tollison becomes the main organiser along with Savarese.]

1984 Apr 30: The Tobacco Institute's Cigarette Exercise Tax Plan (DRAFT) shows that they are disillusioned with President Reagan because, after the deregulatory fiascos of his first term, he was now leaning more towards the use of excise taxes to offset some of the income tax reductions given to the wealthy — resulting in a fast-growing deficit which had now reached $200 billion.

Outlook for 1985

Once the elections are over, it is almost certain that the new Congress will consider a significant tax increase. Since an enormous amount of revenue is needed to balance the federal budget, it will be very difficult to keep federal cigarette excises out of a final tax package.

Economic Consultants
One public finance economist for 10 days @ $1,000 including meetings with coalition members and/or the Governor's staff; research and preparation; and testimony. TOTAL $10,000

One economist for a union workshop on the tax issue, including 3 or 4 training sessions over the course of a convention. TOTAL $5,000

Six economists @ $5,000 and one senior economist @ $20,000 for a tax symposium, including publishing of the proceedings at $3,000. 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. TOTAL $53,000

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

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 industry; 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 Oct: James M. Savarese (public finance economist and labor relations specialist) President, James Savarese & Associates is the author of Free to Smoke.

1984 Oct: William Shughart and James Savarese have jointly presented a "Revised Draft, Not for Quotation without Permission" document on "The Incidence of Taxes on Tobacco" — which has found its way into Brown & Williamson files.

    After 36 pages it concludes, rather tamely, that

Given that smokers as a group appear to have lower permanent incomes than the population as a whole, any per unit or excise tax on them will generally be regressive.

1984 Oct 31: [In the 447 page Final Opinion in the case USA and others vs Philip Morris et al]

During 1984, the Tobacco Institute paid $70,000 for one half the cost of a monograph commissioned by INFOTAB, edited by Robert Tollison, Professor of Economics at Virginia's George Mason University, titled "Smoking in Society."

• Hans Eysenck, University of London
• Charles D Spielberger, Uni of Southern Florida
• Domingo Aviado, Atmospheric Health Sciences
• Sherwin J Feinhandler, Social Systems Analysts
• Douglas Den Uyl, Bellarmine College
• William Shughart II, Clemson University
• Peter Berger, Boston University
• Ingo Walters, New York University
• Stephen Littlechild, Uni of Birmingham,
• James Savarese [Later Tollison's partner]
• Jean Boddewyn, Baruch College, CUNY
• James Buchanan, George Mason University.

Tobacco Institute Memo
Tollison's Project Outline
Final Court Opinion page 297

1985 Feb 21: Susan Stuntz, the Issues Manager at the Tobacco Institute is sending some tobacco-related material on Florida workplace smoking bans to:

• James Saverese. who was working at Ogilvy & Mather at this time (as a contractor)
• Bob Tollison Center for the Study of Public Policy at George Mason University
• William Shughart, Department of Economics, Clemson University

1985 Mar 20: -23 [Doc date Dec 18 84] Ogilvy & Mather have set up speaking engagements at seminars for some of the industry's cash-for-comments economists under the auspices of the Southwestern Social Science Association and the Eastern Economic Association. Jim Savarese of O&M writes to Trish Milita (copied to the Tobacco Institute):

Re: Economic Forums:
Attached are the panel sessions that were accepted by both the Southwestern Social Science Associations and the Eastern Economic Association in March 1985. These are very strong academic panels and add a great deal of depth to our list of consultants for future use. I know all of these individuals personally except for Henry Butler who is a friend of Bob Tollison's at Texas A&M. They all understand their mission and will be submitting papers for us to review well in advance of the meetings.

• The SouthWestern Social Science Association seminar run by O&M in Houston (Mar 20) was on "Taxation and Social Process. It had Robert Ekelund in the chair, and papers by Henry N Butler, Joseph M Jadlow and Richard E Wagner. Keith Watson was a discussant.
• The Eastern Economic Association seminar, run by O&M in Pittsburgh (Mar 21) was on "Perspecives on Tax Reform". It had Robert Tollison in the chair, and papers by William Shughart, Gary Anderson, and a joint paper by John Bowman/Michael Pratt. The discussant was George Hoffer.

1986 Mar 11: Bill Kloepfer, the Vice President in charge of Public Relations at the Tobacco Institute send a memo to President Sam Chilcote on "Consultant Economists' Tax Issue Advice." He says:

As you suggested, I met March 5 in a hotel room with five economists to discuss approaches by the industry to tax issues. Pete Sparber participated. Attending were:

• James Savarese, Ogilvy & Mather
• Dennis Logue, Dartmouth
• Dolores Martin, University of Nebraska
• Dwight Lee, University of Georgia
• Henry Butler, University of Chicago

The advice we received was to consider carefully any earmarking proposals, perhaps accepting those which present a coalition probability and protesting those which do not.

    The effect of price, including excises, on cigarette demand apparently is usually measured on an immediate basis. Most economists evidently find the demand for cigarettes to be relatively inelastic.

    While the so-called social costs issue affects public policy in many ways, it was recognized as one of the incentives for increased cigarette taxes. The group recognized the 1985 Office of Technologic Assessment memorandum as a landmark and its members indicated they would welcome an opportunity to study it as a basis for proposing research projects which could mitigate its unwarrented effects.

    They understand that The Institute does not have an economic research budget per se, but that we would welcome any suggestions which we might consider on their merits.

    The discussion lasted for about five hours. It was quite worthwhile. We should take appropriate steps internally now to consider the major points which emerged.

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

    A month or so later the GMU production staff were also being paid $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 June 11: Peter Sparber at the Tobacco Institute memoes Fred Panzer, his boss enclosing a number of Congressional statements.[Days after they were given]

Enclosed are statements prepared for various Congressional hearings on the tax issue that specifically comment on earmarking to some degree.

    These statements are by:

• Henry Butler of Texas A&M,
• William Shughart and Dwight Lee of George Mason submitted to Ways & Means, June 20, 1985;
• Bob Tollison of George Mason for the Chafee subcommittee on September 10, 1985;
• Randy Rucker of North Carolina State on the Rose bill on July 18, 1985; and
• CM Lindsay of Clemson for hearings on the Stark bill which never were held.

    I've asked Jim Savarese, who provided these papers, to begin working on copy that could serve as the text for multipurpose anti-earmarking publications.

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 a record of the first year of operations 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 = General (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 reference for Savarese was:

[Tobacco Industry Contractor]

James M. Savarese

Savarese and Associates, 1901 L Street NW, Suite 320, Washington, DC 20036, 202-466-7590

Services rendered:
• testimony: taxes - Maryland and Ohio
• smoking restrictions
  • New York City (2 times)
  • New York [State]
  • Maryland, Montgomery County
• economic impact studies:
  • New York State
  • Vermont
  • Military Commissaries
  • Montgomery Co., Maryland
  • Maine
  • Pennsylvania
  • New Jersey
  • [Congress] H.R. 4488
  • Suffolk County
  • Massachusetts
  • U.S. Government Buildings
  • City of Philadelphia

1987 Jan 6: James Savarese sends his OLD list of legal academics along to Fred Panzer at the Tobacco Institute.

[This is the 1986 list with the same comments and notes about lunch, etc.]]

1987 Feb 6: Jim Savarese, Bob Tollison and Henry Butler write to "Participants in advertising op-ed project"[the academic economists on the Tollison/Savarese list].

We are finally ready to get this first op-ed project off the ground. I am asking you to review the attached materials and write an editorial for a major newspaper in your state. This article should support the basic right to advertise legal products and oppose attempts to restrict advertising either by outright bans or by punitive use of the tax code.

    Obviously, the point of this exercise is to support tobacco's right to advertise on basic constitutional grounds. Arguments which touch on issues such as censorship, cutting off the free flow of information, and even the experiences in other countries with such bans might be useful.

    Upon completion of a draft op-ed, please send it to me immediately via Federal Express. I will go over the article and return it to you for submission to a newspaper. At that time you will be given some guidelines for submitting your editorial to a newspaper and an appropriate newspaper in your state.

    If you have any questions, please feel free to call Anna Tollison, Jim Savarese, or Linda Prichett at 202-466-7590. You can also direct any technical questions to Bob Tollison at 703- [323-3771] or Henry Butler at 703-841-2665.

1987 Feb 6: [Same day as above] a letter to "Economists" from Jim Savarese, Bob Tollison and Dwight Lee [Note, not Henry Butler here] Re" Excise Tax Op-ed" says:

We have received our first op-ed project of 1987 and for many of you it is a familiar one. The issue once again is opposition from any and all reasonable angles to an increase in cigarette excise taxes.

    We are attaching some materials which may be of help in formulating your argument and generating relevant data. Some of the more salient points are listed below:

It is important that we generate a generalized opposition to the principle of earmarking revenues.

    Upon completion of a draft op-ed, please send it to me immediately via Federal Express. I will go over the article and return it to you for submission to a newspaper. At that time you will be given some guidelines for submitting your editorial to a newspaper and an appropriate newspaper in your state.

    If you have any questions, please feel free to call Anna Tollison, Jim Savarese, or Linda Pritchett at 202-466-7590. You can also direct any technical questions to Bob Tollison at 703- [323-3771] or Dwight Lee at 404-542-1311.

1987 March 11: Susan Stuntz to Peter Sparber at the Tobacco Institute.

Jim Savarese finally was able to make contact with his friend Peter Trask, director of the Aviation Safety and Health Assn.. in Honolulu. By way of reminder, ASHA has testified at several cabin air quality hearings, urging lawmakers to focus on the ventilation problem rather than banning smoking.

    Trask is an attorney and former staffer for Sen. Dan Inouye; he wrote the legislation that resulted in the NAS cabin air quality study. His message is at complete odds with the airlines, however, he appears to have the facts and the slides on aircraft ventilation that Gray Robertson has on building ventilation.

1987 Apr 15: Chip Foley (at TI) on a Ventilation Project to promote Gray Robertson [ACVA/HBI] and Sick Building Syndrome.

    Others involved were Peter Sparber, Susan Stuntz, Bill Cannell, Walter Woodson, Scott Stapf, Katherine Becker (State Activities), Rich Marcus (Ogilvy & Mather), Dennis Dyer, Ron Morris, John Kelly, Mike Brozek, Ric Scanlan and Jim Savarese

1987 May: The Tobacco Insititute has the books on the Economists Network audited. They find problems with the James Savarese/Robert Tollison partnership which was running the economists cash-for-comments scam. They obviously didn't like what they found. As a result:
    • James Savarese & Associates was placed under a formal contract
    • The Tobacco Institute's regional directors made contact with all the compliant economists in their region and prepared a formal recommendation for the TI to retain them. width=313.5] height=1> See example Region VIII

1987 May 18: The same day as the [above] audit report, James Savarese & Associates were placed under contract with the Tobacco Institute for two years. There is nothing unusual in the contract except that:

• The Tobacco Institute wanted approval rights over all staff.
• They attached a list of billing rates for various staff and services.
• Approval was now with TI's "Vice President for Issues Management." [ Susan Stuntz]
• Robert Tollison was formally recognised as a primary subcontractor of James Savarese & Associates, to be paid at $100 per hour.
• Leslie Dawson, Savarese's full-time employee, was paid at $95 per hour.
• William F Shughart, EA Massitis, Anna Tollison and Carol Robert were approved subcontractors paid at unspecified amounts.
• There is no suggestion of the Tobacco Institute paying contract academics direct (as per auditor recommendations).

1987 May 18: The Tobacco Institute had James Savarese & Associates's accounts audited because of "possible improprieties noted during the examination of the initial two-month period." The auditor found that:

1. It was a one-employee operation - Savarese billed at a rate of $150 per hour, or approximately $300,000 a year.
2. He only keeps rough accounts and has no contract with the Tobacco Institute.
3. He marks up the conveyed cost of all subcontracters by varying amounts up to 100%.
4. Often the name of the subcontractor is not disclosed or [their existence] establishable ... because of concerns that disclosure of their remuneration by the Tobacco Indsitute could harm the credibility of the work they produce."

• The inital "Economic Impact" research was done by Robert and Anna Tollison, with help from William F Shughart, and EA Masaitis.
• The Economists list was put thogether by Robert and Anna Tollison, with help from Carol Roberts and DRL Inc.
• A so-called "Prohibiiton Video project" done by Mary Claire Sanders (charge at $300 per week — totally $4,700) seems to have been a hidden supplementary payment made under directions of senior staff at the Tobacco Insitute. Ms Saunders was employed by the TI through a temporary employment services to work with the TI on Federal Relations.

Recommendations: That "independent consultants and subcontractors working under Savarese's direction, bill to, and be paid directly, by The Institute unless there is an important business reason to do otherwise. "

1987 Sept 1: Jim Savarese is back in the Tobacco Institute fold. Susan Stunts wites to him outlining eight projects she wants to work on in the following months.

1. AFL-CIO meeting in Florida
2. John Lyons will be her backup on the Labor Management Committee
3. Ray Scannell to advise on when to run the Surgeon-General ETS ad.
4. Ogilvy & Mather's marketing plan for National Energy Management Institute (NEMI)
5. Survey of smoker's attitudes towards the hospitality industry (HF&S)
6. Airline smoking hearings
7. Tollison double payment
8. CIAR and PASS research program (briefcase monitoring) Need a backup lab.

1987 Nov 1: - 4 The Tobacco Institute's annual Government Relations Seminar. This is a winter knee's-up where the various State Representatives get to bring their wives for three days of wining and dining with the Washington TI staff. It is held at the Ritz-Carlton [and Hilton Beach Hotel], Lugana Baach, California.

• David and Karen Weeks (affiliation given as IAPAG) are special guests.
• Robert Tollison is a keynote speaker
• Gray Robertson is another keynote speakers. Anne Roberson is a guest.
• James Savarese is also a speaker — this is his biog.

James M Savarese is president of James Savarese & Associates, an economic consulting firm headquartered in Washington, DC, with associates at major universities in more than 40 states. The company was founded In 1981.

    Savarese has produced economic studies and provided economic experts to testify in dozens of legislative settings at all levels of government.

    From 1972-81, Savarese served in several important capacities with the American Federation of State, County and Municipal Employees (AFSCME), one of the largest unions In the AFL-CIO.

1988 Dec 1: James Savarese writes to Susan Stuntz at the Tobacco Institute reporting on his activites during November ( both for himself and his employee, Leslie Dawson). His consultancy is also now specialising in co-opting labor and economists, and countering the next Surgeon General's report.

• met with officials of the Economic Policy Institute (EPI) to discuss tax strategy.
• continued discussion with Coalition of Labor Union Women (CLUW) re national convention
• continued work with National Energy Management Institute (NEMI) on development of training program and brochure.
• meetings with Citizens for Tax Justice, Leadership for the New Century, Citizens for Tax Justice, National Economic Commission.
• on the task force for Airline Cabin Air Quality (weekly meetings/ writing op-eds)

He also lists successes he has had with getting economists to plant op-eds on various local newspapers. His and Tollison's network of economists has generated numerous reviews of the Tollison/Wagner book "Smoking and the State," which the Tobacco Institute has funded and now wants to be widely circulated.

• Prof David Saurman - op-ed on Prop 99 with San Jose Mercury News
• Prof Ryan Amacher (Clemson Uni) in The State.
• Joseph Jadlow (Oklahoma State Uni) in Tulsa Tribune.
• Todd Sandler (Iowa State Uni) in Fort Dodge Messenger.
• Robert B Ekelund (Auburn Uni) Montgomery Advertiser.
• Dwight R Lee (Washington Uni) Regulation Magazine.
• Samson Kimenyi (Uni of Mississippi) in Jackson Clarion ledger.
• David ER Gay (Uni of Arkansas) in Arkansas Democrat.

Also attached are his company accounts ($114,589) for the Tobacco Industry Labor Management Committee disbursement.

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1989: Savarese & Associates Economist [92761043] Scientific Witnesses for IAQ

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1989 /E: Founder & President of James Savarese & Associates

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1989 Jan: The James Savarese & Associates consultancy now had four employees. Leslie Dawson, J Moeller, L Payne, and himself.

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1989 Jan 4: The Tobacco Institute's James Savarese was responsible for attempts to co-opt both genuine and pseudo/astroturf type operations. He has been making contact with these organizations in order to construct some sort of collaborative effort, At this time the tobacco and chemical industries were still trying to lay blame for health problems on each other. Savarese's report says:

• Citizens for Tax Justice: met regularly with CTJ officials to discuss Congressional excise tax strategy
  National Energy Management Institute: continued to work with NEMI on development of training program and brochure
• National Toxics Campaign: met with officials of the National Toxics Campaign regarding possible coalition work.
• Council on Competitiveness: coordinated plan in response to release of [Dan Quayle's] Council on Competitiveness report.

    [Note: The NTC appears to have been a genuine organisation which was being conned into assisting he tobacco industry's propsaganda efforts. The Council on Competitveness was in the mire, up to its neck.]

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1989 Jan 11: Carol Hrycaj at the Tobacco Institute writes to Debby Schoonmaker on the "Promotion of Economic Conference Papers."

Of the six papers presented during those sessions, only two that were discussed at the Western meeting may be suitable for public consumption: Lee's paper, "The Economics and Politics of Tax Earmarking;'1 and Wagner's paper, "Fiscal Norms, Fiscal Practice and Tax Earmarking."

    Paul W. Wilson, Thomas E. Brocherding and Bruce Yandle also submitted papers; their relationship with our consultants is unclear. Regardless, the Wilson, Brocherding and Yandle papers are technical treatments of the subject matter and would be difficult to repackage for the general public.

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1989 Oct 4: Chuck Lister from Covington & Burling criticises the "Dunkley video treatments" [one video was being made on Environmental Tobacco Smoke (ETS) and another on Indoor Air Quality (IAQ)]. He suggests that they use the McGill [University industry-controlled ETS] conference as a source of material.

• ETS: As to other scientists; is there merit in filming at Montreal on 3-4 November, where 40 or 50 of our people will be opining on this very subject? It is far, but it is also a unique chance to get everyone in one place at one time.

  [The Montreal McGill conference, set up by Philip Morris, was totally loaded with tobacco-friendly scientists.]

• IAQ. I also like this one. [Gray] Robertson is certainly key, and [Larry] Holcomb could be good. [Theodor] Sterling is quite possible, although busy and located in Canada. He will probably not be in Montreal for the meeting noted above.
  
      Another possibility is an American with labour connections ( Jim Savarese) whom we used last year in Stockholm. Frank Lunau is local [organiser of the UK's ARIA scam], but might come across badly. I suppose, if Paul Maglione wishes, we could also use someone from HIROSS. There are other UK possibilities for the purely IAQ, non-ETS segments.

[HIROSS was then an Italian air-conditionin company that worked with the tobacco industry via Nisses and Healthy Buildings International. It later became Atlas]

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1989 Nov: /E The Tobacco Institute budget for 1990 shows under "Excise Issue"

• Op-eds earned the economists $3,000. (total $45,000)
• Presentations to conferences earned them $5,000. (total $75,000)
• Economists as witnesses cost TI $30,000 (number not specified)
• Savarese was paid $70,000 pa for 'Economic Consultants" (cut back from a projected $100,000),
• Ogilvy & Mather $250,000 pa. (up from estimated $230,000) for "coalition work"
• Fleishman Hillard (PR) who mainly ran media tours $50,000
• Financial support to Think-tanks (Citizens for Tax Justice $100k) Economic Policy Institute $50k, Coalition on Human Needs $48k; Leadership for the New Century $12k; League for Rural Voters $10k; National Council of Senior Citizens $10k, CART $50k ... with much the same estimated for 1990)

The services of labor lawyer Mike Forscey of Wunder Ryan Cannon & Thelen had been budgeted for $60,000 in 1989 but had cost an estimated $90,000. They were budgeted for $75,000 in 1990. This is probably for labor activities, rather than economists.

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1989 Nov 30: James Savarese has left Ogilvy & Mather and set up his own business running a stable of cash-for-comments economists for the Tobacco Institute (in addition to other disinformation activities). He is still organizing economics seminars through the same organisations using the same tobacco-funded economists:

"The Political Economy of Tax Earmarking" [ie the use of cigarette excises to prop up Medicare/Medicade] Chairman: Robert Ekelund. Papers by: Richard Wagner, Dwight Lee and Robert Tollison, with J Keith Watson and Mark Thornton as discussants.

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1989 Dec 5: James Savarese is sending a bill to the Tobacco Institute for his own fees ($18,500) and the detailed out-of-pocket expenses for his group of economists speaking at the "Southern Economic Association Meeting" Nov 19—22 in Orlando Florida.

• James Savarese — $1239
• Robert Ekelund — $1271
• John D Jackson — $1029
• Richard Saba — $843
• Richard Ault — $1002
• Mark Thornton — $428
• Henry Butler — $983
• Keith Watson — (will send later)

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1990 Mar 27: This is a 60 page bundle of letters and drafts from members of the "Cash-for-comments Economists network" for a book being compiled at the Tobacco Institute. The drafts are being passed through Michael T Buckley at the tobacco lawfirm Covington & Burling to check them for dangerous content or legal errors.

• Page 1 is a note from Jim Savarese to "Marty" at the Tobacco Institute.

  Here is Chapter 11 of the User Fee Book. It was omitted in the package sent to you last week by Bob Tollison.

• Page 2 is Buckley relaying a chapter to Carol Hrycaj at the Tobacco Institute.

  Enclosed is the McChesney chapter that you sent to me this morning. I have marked a few typographical errors; we have no comments on the substance of the manuscript.

  McChesney's chapter was titled "Excises, Earmarking and Extortion in Government User Charges."
• Page 25 is a chapter by Richard Wagner "User Charges, Earmarked Taxes, and Budgetary Process: A Constitutional Perspective." It has been edited by the lawyers ...

  • to remove some specific tobacco-related material to keep it general. (Page 32)
  • to add noncommittal words like "alleged" into phrases like "the economic reflections of the alleged health consequences of smoking"
  • to add "indistinguishable" into "smoking is essentially indistinguishable from any other type of activity that might have some risk associated with it." [pruning trees is the example]
  • add "any" and "may" into the phrase "because the benefits they associate with smoking exceeds any costs they may have to bear"

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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]

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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.

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1991 May 30: James Savarese & Associates is working with Powell Adams & Rinehard, writing to Carol Hrycaj at the Tobacco Institute about the 1992 Social Cost Plan.

[Savarese had now rejoined Ogilvy & Mather, as a partner, working with PA&R]

    This new company is a Washington DC subsidiary of Ogilvy & Mather; this was a period when the public-relations, advertising agencies, campaign management, polling companies, and media-marketing firms were beginning to consolide into three very large global conglomerates. O&M became part of the WPP Group along with Hill & Knowlton, Buston-Marsteller, J Walter Thompson, and many other highly recognisable names.

• In states where it is likely that the social cost argument will be used in the tax and budget debate, we recommend the Institute pro-actively commission and release state-specific studies combatting the social cost argument. These studies can be used in legislative briefings conducted by the economists.
• For example, we recommend that a media tour program utilizing the social cost economists be implemented in geographic regions which produce the targeted commodity. Attempts also should be made to place stories and interviews with the economists in the targeted industries' trade publications.
• We recommend the Institute commission research on what products and activities are considered to be over-regulated and identify an appropriate spokesperson or organization to carry the government intervention/over-regulation messages.
  
      This program could include a media tour program utilizing the spokesperson in targeted states. Program messages would center around the theme that the government increasingly is intervening in everyday life and personal lifestyle choices.
  
      Because Strategy III reaches out to the general population, we recommend that the economists' media tours and targeted media activities also fall under this strategy.
• Commision economic consultants familiar with the "social cost¡ issue to review and maintain literature, to conduct research, to prepare articles, legislative testimony, letters to editors and op-ed pieces. When possible utilize existing tax issue economists' network. Conduct periodic meetings in central location.
• Continue to encourage "social cost" economists to submit abstracts of studies and make presentations at economic conferences, including American Economic Association, Southern Economic Association, Western Economic Association and Atlantic Economic Association.
• Coordinate with State Activities economic consultant "social cost" briefings of economic and policy staffs of organizations such as American Legislative Exchange Council, National Conference of State Legislators, Council of State Governments and National Governors Association; encourage these groups to address the issue as a serious public policy concern. Seek publication and speaking/seminar opportunities.
• Encourage economic consultants to conduct issue briefings with relevant staff of business organizations such as the Business Roundtable and local chambers of commerce.

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1991 June 5: Powell Adams & Rinehard is reporting to the Tobacco Institute quite independently of James Savarese: Their April Activity Report says:

Grassroots Activities:
— agency drafted op-ed to be signed by AAM [American Agriculture Movement] representative regarding excise tax increases in Minnesota and forwarded to client for review and comment.

Public Affairs Activities:
— agency continued to review clippings for
    letter-to-the-editor campaign that incorporates Science Advisory Board messages;
— agency submitted drafts of letters-to-the editor responding to newspaper columns on environmental tobacco smoke and submitted to client for review.
— agency drafted op-ed regarding "It's The Law" program and forwarded to client for review and comment.

O&M/PA&R appear to have also taken over the media tours from Fleishman-Hillard.

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1991 June 26: Powell Adams & Rinehard (with Jim Savarese and Leslie Dawson) have a conference with Brennan Dawson, Martin Gleason and Carol Hrycaj at the Tobacco Institute. The comments and decisions made were:

• The 'social cost' activity has become more intense in past two year — it hasn't improved.
• Hrycaj stated that the Institute currently battles the 'false social cost claims' by promoting a series of white papers and books written by Savarese & Associates' economists. These materials are promoted through media tours and presentations featuring TI spokespeople and consulting economists.
• Hrycaj pointed out that the Institute has sponsored eight pieces of social cost research since 1988. All eight were submitted to reknowned scholarly journals and four have been published. Hrycaj added that the heart of the current program is the consulting economists who produce the studies, get them published and promote them in academic circles.
• Savarese noted that the Institute has sponsored five books on the social cost issue but no new social cost research has been commissioned in three years. He noted that the research is essential to establish credibility for the social cost programs.
• Savarese said that the media tours and presentations have been successful and that the [earlier] research has been exploited.
• Hrycaj suggested that we concentrate on promoting each individual piece of research to hit individual target audiences starting with select papers
• Moeller, Hrycaj and Rinker suggested exploring the possibility of having the consulting economists conduct briefings before business groups and targeted legislators.
• Savarese recommended that the consulting economists be asked to identify speaking opportunities for themselves. He also recommended pursuing a program with consulting economists based on the critique of HHS social cost model.
      * Dawson agreed with this strategy. She recommended that consulting economists meet with influential national media outlets to explain weaknesses and flaws of HHS model.
• Savarese will prepare a proposal to attack government "over-regulation."
• Dawson recommended preparing and attempting to place an op-ed piece on government over-regulation in major papers.
• Hrycaj recommended allowing D[wight[ Lee to identify opportunities to give social cost presentations before appropriate local level business organizations.
• Savarese and PA&R will prepare a short proposal based on three-tiered program:
  • consulting economist produces a white paper questioning HHS methodology;
  • major paper op-ed on white paper; and
  • consulting economists' op-ed program based on white paper.

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1991 July 30: About this time Powell was dropped from the name of the company Powell Adams & Rinehart and Ogilvy was added. It now became Ogilvy Adams ¦ Rinehart with the same Account #7301 number. Its budget with the Tobacco Institute was $275,000 per year for the excise tax issue in 1992.
    }
    Note that this was for just this one issue [each budgeted separately). Note also that James Savarese & Associates also had a budget of $90,000 reserved for 1992 (down from $112,000 in 1991), so they hadn't actually merged.

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1992 Apr 6: The newly merged Ogilvy Adams & Rinehart organisation is bidding for the work of the coalition of companies fighting excise taxes, which runs under the name Coalition Against Regressive Taxation, and has million dollar budgets. It spends most of the time promoting the value of Tollison and Jim Miller and the economists network.

    It promotes Savarese as "Director of the Economist Network"

Jim works as a consultant with Ogilvy Adams & Rinehart to represent corporations, trade associations, labor unions and state governments on economic and labor relations issues. His corporate clients include the American Iron and Steel Institute, Philip Morris and the American Bakers Association.

    Among his labor union clients are the International Association of Machinists, the American Federation of Teachers and the United Steel Workers of America. Jim also directs the economist network — a nationwide network of university professors who write op-eds and testify on economic issues.

[It fails to mention his later claim to have been an economics professor at a university!]

It gives the Tobacco Institute Account as an example of their work, and notes:

The overall strategy that OA&R implements is to involve various coalition partners and independent economists in persuading decision-makers that excise taxes are an unreasonable burden on low and moderate income taxpayers and have a negative impact on the economy. Activities include:

• arranging for prominent economists to testify at congressional and regional
      Treasury Department hearings and state legislative sessions, and write letters
      to print outlets in key congressional districts;
• arranging for prominent economists in targeted states and Congressional
      districts to submit opinion pieces opposing excise taxes in local papers.
• conducted media tours with prominent economists resulting in favorable local
      media coverage

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1992 Oct: - [2046847184] Also $150,000 for Excise Issue p 4-24

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1995 May 25: Bob (Robert) Tollison and Jim Savarese are jointly tendering for work — anattack on Social Cost of Smoking. They promise to attack the Rand Corporation and its estimates of social cost ("alleged $20 billion") published in the Journal of the AMA. This is a five part project which will

"attack the methodology" and show error.

• Part 1 — A 25 page white paper prepared by Dr. Robert Tollison and produced by George Mason University . This will debunk the core theoretical arguments used by the anti-smoking coalition to claim that there is a social cost to smoking. It will be technically designed for publication in JAMA, but adaptable for Wall Street Journal etc, It will take one month and cost $27,500.
  
• Part 2 — A 25 page white paper which is a budgetary analysis of the incidence of Medicare/Medicaid usage after taxes by smokers and non-smokers. This will be designed for a general audience. This paper can be adapted as a sophisticated op-ed with attempted placements in the Wall Street Journal, the New York Times or the Washington Times. It will take one month and cost $25,000.
  
• Part 3 — A sophisticated op-ed program based on the white papers written by Dr. Tollison. We will attempt to place this op-ed in the Wall Street Journal, the New York Times and the Washington Times, in that order.
  
• Part 4 — A more comprehensive op-ed program which will involve a network of 20 economists attempting to place op-eds in major newspapers in targeted Congressional districts . Development of these op-eds will be supervised by Dr. Tollision. Costs for op-eds are $3,000 per market.
  
• Part 5 — A round table conference of issues raised based on the theme "Defunding the Nanny State" to include leading scholars on this issue. [press invitations, press-releases, etc.] Key panel members were to be Tollison, Jeff Eisenach of the Progress and Freedom Foundation; Jim Miller of Citizens for Sound Economy; Dwight Lee, and William Kristol.(each paid betwen $5,000 and $7.500) Est. total round-table costs with special editing/writing etc.$40 - $50,000.

    They also supplied a detailed list of the politicians to be targetted in each state, the appropriate University of a cash-for-comment economist, and local newspaper for the op-ed article plants.

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1995 Jan 26: The tobacco industry's Labor Management Committee (LMB) held its meeting at Tuscon Arazona. The minutes show that those present were:

• Bob Curtis, chairman [Kentucky AFL-CIO]
• Dick Peck[Organiser of the NEMI Task Force operation]
• Ray Scannell [Bakery Confectionery and Tobacco Workers union]
• Dick White [Tobacco Institute, VP Legislative Affairs]
• Walter Woodson, Secretary-Treasurer [Tobacco Institute]
• Jim Savarese, executive director of the LMC; [Contractor to the Tobacco Institute]
• Leslie Dawson, [Savarese's ex-assistant, who has shifted to Austin Texas]
• Sandy Parrish, [Savarese assistant]
• Tom Donahue, Jr., Donahue & Associates Washington [TI consultant]
• Bill Holayter,
• John Jarvis, McGlotten & Jarvis, consultants
• Harry Kaiser, The Kaiser Company. Ohio [TI contractor]
• Doug Weiland,
• Jim Featherstonhaugh,
• Lowell Junkins,
• Bob Wolper,
• Art Carter,
• Frank Ortis,
• David Roe, LMC
      consultants;
• Paul Harris, International Association of Machinists;
• Jim Golden, National Energy Management Institute; [also a TI consultant]
• Vince Panvini, Sheet Metal Workers Union;
• Dan Lynch, Philip Morris USA;
• Scott Treibitz, TRICOM Public Relations;
• Mike Forscey, LMC counsel; [Wunder Diefenderfer, Cannon & Thelan, Wash.]
• Bill Adams,
• Sam Chilcote, Jr., The Tobacco Institute

Mr Woodson reported that the Tobacco Institute had allocated funds sufficient to meet the budget of the LMC.

    Also LMC consultant list

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1995 Dec 1: Savarese & Assoc. and Donahue & Assoc. were shifting to Suite 1000, 700 Thirteenth Street NW Washington. Harry Kaiser was giving this out has his address also.

See last page

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1996: Carol Hrycaj at the Tobacco Institute writes to her stable of lobbyists dealing with the labor activities (Labor Management Committee) including

• Jim Savarese, Leslie Dawson, Jackie Hampel, Tom Donohue, Harry Kaiser (All Cassidy & Assoc/Savarese & Assoc.)
• Walter Woodson (TI Dir. Public Relations), Rob Walker (TI Issues Manager)
• Mike Forscey (lawyer, Wunder Diefenderfer, Cannon & Thelan, Wash.)
• John Jarvis, Bob McGlotten, (McGlotten & Jarvis, consultants)
• Scott Treibitz, (TRICOM public relations)

Attached, for your information, is a draft backgrounder on the "Synar Amendment." It reviews the history of the law and the proposed regulation, and details state action to reduce youth access to tobacco products.

    A surnmary of the final SAMHSA regs will be forwarded when available.

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1997: The Master Settlement Agreement between the tobacco industry and the Clinton Administration and State Attorneys-Generals which was struck in 1997 would have effectively closed down Savarese's business.

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1998 Aug 3: Savarese has billed the Tobacco Institute for an addition to his regular LMC payment

• $25,000 Retainer for July 1998
• $ 8,700 Two staff members, 290 hrs @ $30/hr - working with BC&T union.
• Reimbursement for office and general expenses
• Expenses for union and LMC and travel/accommodation
      TOTAL $43,814.45

    Powell Tate (the lobbying firm) has billed Savarese $660,82 for PR and consultation
    Savarese and LMC's Harry Kaiser have spent some time at the Desert Inn in Las Vegas at the union convention.

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1988 July 22: Woodson to Lance Morgan

Here is an updated report on the Savarese group project. The results are fairly impressive.

This includes the now-familiar, no-economist-names list of op-ed writers with details of the publication dates.

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1998 July 28: Woodson to Lance Morgan.

Attached is another published article titled "Proposal to Raise Price of Cigarettes has Hidden Costs." Tn addition, I have included for payment the second (final) invoice from the Savarese group. Tlianks for your help in getting the check for the first invoice sent to Savarese.-

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2009 Feb 20: The Washington Post carried an obituary:
    James M. Savarese, 64, president and founder of James Savarese and Associates, a Washington-based economic consulting firm that he ran from 1981 to 2005, died Feb. 14 at Virginia Hospital Center. He had pancreatic cancer.

    Mr. Savarese worked for the American Federation of State, County and Municipal Employees from 1972 to 1981, first as an economist in the research department and then as an executive assistant to the president.

    James Michael Savarese was born in Allentown, Pa., and received a bachelor's degree in economics from La Salle University in Philadelphia. From 1969 to 1972, he was an assistant economics professor at Virginia Commonwealth University in Richmond.

    He settled in the Washington region in 1972 and had lived in Falls Church since 2005. He was a member of Washington Golf and Country Club, St. Agnes Catholic Church and the Knights of Columbus, all of Arlington County.

    Survivors include his wife of 35 years, Joanne Sandoval Savarese of Falls Church; a daughter, Annie Savarese of Falls Church; and a sister, Colette Tettemer of Annapolis.

CONTRIBUTORS:lrt3 LR13 dhf2