European Stars and Stripes (Newspaper) - September 25, 1977, Darmstadt, Hesse                                Page 8 the stars and stripes sunday september 25, 1977i tobacco is among the world s great sit Loke it Icie industries despite health warnings sixth in a 10-Day series of articles by staff writer Bob Hoyer the growing and marketing of tobacco is one of the world s great industries. Bits very size this enormous Enterprise is protected from the health interests now trying to educate and legislate it out of business. In skirmish after skirmish anti tobacco groups must contend with the economic and political clout of a global Industry that provides work for millions and that Annu ally pays taxes totalling Many billions of dollars. Given the differing and powerful forces at work in the dispute Over tobacco governments tend to behave in a contradictory manner. While they May recognize the health hazards of smoking they must face the consequences of decisions which could disrupt National economies and wipe out major sources of Revenue. The Paradox is further complicated in a number of countries including the United states by policies which actually subsidize a product that medical experts regard As a major health Hazard. The dilemma faced by policy makers everywhere grows out of a More Cavalier past when largely due to ignorance and in difference tobacco was propagated throughout the world. In ail probability commercial tobacco first took Root in colonial America. A ship ment of tobacco from Jamestown a. To England in 1613 is usually cited As the starting Point for today s International Industry. In 3 2 centuries tobacco has become a major commodity in world com  nations now produce tobacco in commercial quantities 60 of which Export tobacco products. The ., Turkey Greece India Brazil and Rhodesia Are among the major exporting countries. Tobacco manufacturing industries in More than 30 countries including six of the 10 largest tobacco consuming nations Are state owned and operated monopolies and As such tightly regulated sources of government income. In Many of these coun tries the tax Revenue from tobacco far exceeds the amount received by Farmers for the original tobacco crop. On the consuming end of the business cigarette smokers around the Globe Annu ally spend an estimated $100 billion and in so doing account for the major portion of the retail Market. In America the size and importance of the tobacco Industry is reflected by Busi Ness consumer and Trade statistics by the volume and value of tobacco company shares traded on financial markets and by the tax Revenue collected by Federal stat and local governments. An Industry spokesman reports that a $2 billion payroll of More than 160,000 persons is involved in the manufacture wholesaling and vending of cigarettes alone. The department of agriculture lists 18 states As producers of tobacco. The biggest Are North Carolina Kentucky South Caro Lina Georgia Virginia and Tennessee. William l. Lanier director of agriculture s tobacco and Peanut division re ports that 530,000 farm families Are associated with tobacco production Pri Marily in the Southeast Region of the coun try. He adds that tobacco accounts for 30 per cent of All farm receipts in North Caro Lina and Kentucky the largest producer states. In the 1960s tobacco ranked fifth in Cash value among All  Farm crops with growers receiving an annual average income of $ 1.2 billion. At the processing and marketing level tobacco manufacturers Are among the nation s most successful companies. American brands formerly the Ameri can tobacco co is one of the Blue Chip stocks on the Dow Jones bellwether aver age of 30 industrials a list that is watched closely by investors As a clue to the strength of the Stock Market. Reynolds industries the nation s top cigarette producer with a third of the Domestic Market Phillip Morris Liggett group Loews the Loh lard division pro growers such As these in Bowling Green ky., Are among the millions pm ducks cigarettes and  Tobacco the world s largest manufacturer of snuff and chewing tobacco All Are Wall Street favourites of an Industry that has had a glow ing track record for turning out profits. Federal Trade commission statistics for 1975 show that tobacco manufacturers led All Industrial groups both in durable and nondurable goods in profit with 14 per cent before taxes and 9.2 per cent after taxes. The financial standing of tobacco manufacturers has prompted a number of companies to diversify. As a result tobacco corporations now Are involved in activities such As brewing and Oil interests and in the production of a wide array of consumer goods. Although diversification began before the big push of anti smoking groups More recent acquisitions May have been influenced by the continued warnings of health officials that smoking is a health Hazard. Despite broadening their base of moneymakers played in the tobacco Industry a major source of tax Revenue. Its influx operations most tobacco companies still make huge profits from tobacco products. The economic importance of Reynolds Phillip Morris and american brands America s three largest cigarette manufacturers is reflected in the value of common Stock shares. Collectively the 133 million common shares of these three companies Are Worth an estimated $8 billion at current Market prices. The International flavor of the tobacco Industry is shown by the overseas operations of the big three. All of them sell cigarettes manufactured in some 20 countries by subsidiaries affiliates and licensees. During the 60s America exported about 30 per cent of All Home produced tobacco products to the Benefit of the nation s Trade balance. From an investor s viewpoint tobacco shares have a wide Appeal. Such diverse groups As american institutions Hong Kong chinese Arab Oil interests and wealthy Swiss All own shares in american fake cigarettes facing a Cloudy future at Best new York up few of 11 synthetic cigarette brands currently marketed in Britain Are expected to survive business week Magazine said in its oct. 3 Issue made available to the press Friday. The cigarettes which Are three parts to Bacco to one part cellulose based substitute have captured Only about 2 per cent of the $5.4 billion Market the weekly said. But it said the tobacco companies remain hopeful pointing out that the brands have been on the Market for 12 weeks and that it took filter cigarettes eight years to win 3 per cent of the  producers of the new cigarettes spent$70 million to launch their brands and also spent heavily on initial advertising. The Magazine said the and Campaign is succeeding in that it is persuading smok ers to try the product. It added however the problem is that most switch Back to their old  it said the fake fag concept May be around for a while but most of the present brands Are Likely to go up in  an executive director of Britain s retail confectioner and tobacconist association said i reckon about three of the 11 brands will  ence explains Why efforts to legislate it out of business Are stymied. A tobacco companies. In America despite a spate of Adverse publicity on the harmful effects of smok ing cigarette sales remain High. While the percentage of adult americans smoking has declined in recent years the number of cigarettes sold continues to climb an indication that More Young people Are smok ing and that smokers Are smoking larger numbers of the new Low tar brands. It is estimated that american Consumers spend close to .$20 billion a year on the More than 620 billion cigarettes they smoke. Government income on All of this spend ing at the Federal state and local Levels runs in excess of $6 billion a year in taxes paid on tobacco products. The statistical evidence is overwhelm ing. It shows that tobacco is not Only in grained in american culture but that it exerts a powerful influence on decision making. The influence of the Industry explains Why All efforts to end tobacco subsidies experts set the figure at Between $44 $78 billion a year have been stymied. The tobacco lobby argues that the end of support would Hurt the Economy without substantially reducing the Public s con sumption of tobacco. In still another controversy critics Point to the inconsistencies in decisions Banning the Sale of by climates and saccharin while permitting the Sale of tobacco which they claim is Many times More harmful than the two artificial sweeteners. An army surgeon who treats patients for diseases caused by the use of tobacco expresses the frustration of those who sense the contradictions of policy but Cando Little about it. It s a helluva nerve to Parade cigarettes before the american Public and to ban saccharin the doctor says. But when you tackle the tobacco Industry you have a Tiger by the  tomorrow does military life promote smoking