THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, August 16, 1996 TAG: 9608160567
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MICHAEL K. FRISBY, THE WALL STREET JOURNAL
DATELINE: SAN DIEGO LENGTH: 81 lines
Most corporations at the Republican convention are out to get all the attention they can. But the tobacco industry isn't so easy to find.
In a daily game of cat and mouse, demonstrators from the American Lung Association seek out tobacco-industry functions. A luncheon for the GOP's Texas delegation had just begun, when suddenly the drapes were closed in the hotel ballroom. The reason: to block out three protesters with signs attacking the event's sponsor, Philip Morris Co.
Facing more public pressure than ever, the tobacco industry has as much at stake in a GOP victory in November as any industry. On Tuesday, the Food and Drug Administration forwarded to the White House its draft of a new rule that would ban tobacco marketing deemed accessible to minors. And just last week, the industry lost a landmark court decision in Florida to a lung-cancer sufferer and his wife. Tobacco executives are counting on a GOP Congress or a GOP president to help fend off the attack.
Philip Morris, the industry leader, donated about $500,000 to the host committee to help put on the convention. The industry has given $4.8 million to the Republican Party in the past 19 months, including $1.8 million from Philip Morris. But here in San Diego, the industry is generally taking a low-key approach.
Both Philip Morris and U.S. Tobacco Co., a unit of UST Inc., have boats docked in the marina behind the convention site, where they entertain small groups. But only official convention-goers, who can clear the security checks, can reach their floating parties. The industry has largely taken to hosting small gatherings for state delegations or individual lawmakers. RJR Nabisco Holdings Corp., parent of the nation's second-largest tobacco concern R.J. Reynolds Tobacco Co., held a reception for Rep. Thomas J. Bliley, R-Va., chairman of the House Commerce Committee and one of the company's best friends in Congress.
Philip Morris has entertained several delegations, including those from Connecticut and New York, as well as sponsored a trip to the Nixon library. Even this level of participation has delivered them access: At the Texas lunch, Jack Dillard, a company vice president, was seated at the head table between Sen. Kay Hutchison, R-Texas, and State Party Chairman Tom Pauken.
At the Democratic convention in Chicago two weeks away, the involvement will be starkly different. Philip Morris will only sponsor two delegate parties, for Virginia and Kentucky, while no other tobacco companies will host events. Moreover, Philip Morris made a $100,000 donation to Chicago's host committee in the name of its subsidiary, Kraft Foods Inc.
In San Diego, the industry has friends helping organize the convention. A vice chairman of the Republican National Host Committee is Ken Rietz, the CEO of the Washington region for Burson-Marsteller, a public-relations firm that represents Philip Morris. Rietz was also active in the National Smokers Alliance, a grass-roots organization that is partly funded by the industry. The head of the host committee is Jack Ford, son of former President Gerald Ford who has supported the industry.
Despite the low profile, the tobacco makers haven't avoided controversy. The biggest flap involves Philip Morris's backdoor sponsorship of an event at San Diego's Museum of Art. Months ago, the company was negotiating with the museum to sponsor an exhibit by artist Deborah Butterfield and to hold functions there during the convention. After protests from anti-smoking groups, the museum announced that Philip Morris wouldn't be using the facility. Yet on Monday, a reception for the Georgia delegation, including House Speaker Newt Gingrich, R-Ga., was held there. Philip Morris was among the corporate sponsors.
How did it happen?
Museum officials insist they didn't know the sponsors. Darienne Dennis, director of communications for Philip Morris, says, ``We gave money ... for the function. They (Georgia delegation) chose where to hold it.''
Since the convention opened this week, officials from the American Lung Association have tried to shadow Philip Morris. ``We want Philip Morris to know that we know that they are here,'' says Bob Doyle, the public-relations director for the local lung association branch.
The company insists the protesters don't bother them, even as they plot to outmaneuver them.
``I'm glad they can express their view,'' says Dennis, ``and I hope they will respect the right of my company to speak its view.'' ILLUSTRATION: VP GRAPHIC
TOBACCO MONEY
SOURCE: Center for Responsive Politics
KEYWORDS: REPUBLICAN CONVENTION TOBACCO by CNB