Wednesday, 4/23/97 Big tobacco lights up for lawsuit immunity
Settlement is pocket change compared to damage already done
By Derrick Z. Jackson The Boston Globe The possible settlement
of tobacco lawsuits is a deal with the devil that will keep hell
well-lit for an eternity. Philip Morris and RJR Nabisco, under
attack in lawsuits by both individual smokers and states that want
to recover smoking-related health care costs, would apparently pay
up to $300 billion over 25 years to settle current claims. The
companies would also ban cigarette billboard advertising and human
figures in ad campaigns. The companies would also ban sponsorship
of sports events. In exchange, big tobacco would be shielded from
future lawsuits. Philip Morris and RJR Nabisco are negotiating with
attorney generals in several states and lawyers for individual
plaintiffs. The talks have included top cigarette executives
Geoffrey Bible of Philip Morris and Steven Goldstone of RJR
Nabisco. Mississippi Attorney General Michael Moore said, "We’ve
progressed further than anybody contemplated." Minnesota Attorney
General Hubert Humphrey said, "The tobacco industry is in big
trouble and they know it." Massachusetts Attorney General Scott
Harshbarger, a lead figure in these talks, is playing both the
skeptic and the optimist. He said he is wary of tobacco companies’
willingness to accept a deal, but also said the possible settlement
could be "a major public health breakthrough." It appears that
these attorney generals are so self-absorbed in the novelty of the
talks that they have forgotten how to count. If big tobacco is in
as much trouble as Humphrey boasted, then why was it that the
moment the negotiations were announced, the stock of both Philip
Morris and RJR Nabisco soared about 10 percent on Wall Street? It
is because $300 billion over 25 years, or $12 billion a year, is
nothing for big tobacco? Based on the first quarter returns, Philip
Morris "occupies the strongest position it has ever been in,"
according to securities analyst Emanuel Goldman of Paine Webber.
Last year Philip Morris and RJR made $10.7 and $2.25 billion,
respectively, in profits. Philip Morris alone will sell a trillion
cigarettes worldwide this year. Philip Morris and RJR deal in so
much volume that all they, say cigarette analysts, need to do is
charge between 25 and 50 cents more per pack, and poof, there goes
that bit of smoking history. Whatever satisfaction states and
plaintiffs may derive from extracting $12 billion a year will be
dwarfed by the costs ahead if big tobacco indeed is granted
immunity from future lawsuits. Smoking-related illnesses costs the
nation $50 billion a year and $100 billion in lost productivity.
While the devil pays a mere $300 billion equity loan over 25 years
to keep its hearth glowing, the nation’s health care system and
economy will pay $3.75 trillion for the embers. The actions of the
attorney generals and lawyers for victims of smoking are
understandable. They say the normal process of suing big tobacco
takes too much time with too few victories. The achievement of
getting tobacco executives to the table is not a small thing. But
they must remember they are not dealing with a normal entity. No
other industry in the world is as good at masking evil as the
tobacco industry. Forget Heaven’s Gate. When an industry can
convince 436,000 Americans to kill themselves every year, and when
it markets death to children at the same time it funds youth
organizations, and when it can silence the loudest politicians and
activists who rail against crack and heroin, that is an
otherworldly power. That is a power that needs to pay more than
$300 billion to feel any pain. That is a power that should never be
shielded from immunity. Many people say that smoking is an
individual choice. Such thinking conveniently forgets that devils
always seduce people at their weakest moment. Marlboro makes men
feel macho. Virginia Slims makes women feel empowered. Kool makes
African Americans feel real cool and Joe Camel makes wayward
teenagers feel as if they are going on an adventure. It looks as if
big tobacco may finally be forced to pay some dues. The problem is
that the dues amount only to a month’s bill on a lifetime of heat.
Any settlement must be so stiff that tobacco’s losses will scare
stockholders into abandoning the industry. Anything less by the
attorney generals and the lawyers for the plaintiffs is a lot of
Bible-thumping, but ultimately bowing to the closest thing the
corporate world has to Satan.