A HOLE IN THE DAM

It will have come as no surprise to most people to hear that tobacco smoking is addictive and that it causes cancer and diseases…

It will have come as no surprise to most people to hear that tobacco smoking is addictive and that it causes cancer and diseases of the heart and lungs. What is surprising is that the latest iteration of such statements has come from an American tobacco company. Until last week the American tobacco industry had been adamantly unanimous in its denial of these facts, even going so far as to have its senior executives swear such denials under oath to a congressional committee.

Now the smallest of the main American manufacturers of cigarettes has admitted, in course of a settlement with prosecutors in 22 American states, that tobacco is indeed addictive and can cause disease. In return for this admission, and a promise to re label its products accordingly, and an undertaking to pay 25 per cent of its pre tax profits to the 22 state authorities for the next 25 years, Liggett has been granted protection against further prosecutions in those states. It has further admitted (as if no one ever knew) that tobacco products have been marketed directly to young people.

There is a certain ironic sense of nemesis in the fact that Liggett should be the first manufacturer to admit that there are real health hazards in using tobacco. For many years, before the health risks of smoking had become apparent to most people, its own main brand had been marketed as a health giving product, with pictures of doctors in white coats smoking and testimony from physicians on the benefits of smoking Chesterfields. Last week's admissions were a far cry from those more innocent and more ignorant days.

Predictably, the reactions, of its larger rivals to those admissions have been a mixture of denial, dismissal and denigration. It will be easy for Liggett to hand over 25 per cent of its profits, some say, because this will be 25 per cent of nothing. And it is said that, since the company has not been in profit recently, its owner, the Brooke Group, wants to sell what is left of its tobacco concerns. But those who say these things must also have concern for their own legal and financial futures.

READ MORE

Part of the Liggett settlement with the state prosecutors involves an agreement by the company to hand over hundreds of documents to be filed in state courts. It is believed that these documents may provide evidence of crime and fraud and conspiracy throughout the tobacco industry, evidence that could be used in other cases against the tobacco giants. The validity of this belief remains to be tested, but tested it will be.

There are many smokers and their families queuing up to sue manufacturers for damages, just as there are many state and other health care agencies who would like to reclaim from the tobacco industry some of the costs of the health care that has been provided to treat smoking related illnesses.