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Tollison, Robert

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https://www.sourcewatch.org/index.php?title=Cash_for_Comments_Economists_Network

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Thomas J. DiLorenzo was a Professor of Economics at Loyola College in Maryland and George Mason University who attacked tobacco control researchers in the press. He then moved on to a position as Senior Fellow at the Ludwig von Mises Institute. [1]

DiLorenzo was a minor figure in theCash for Comments Economists Network run by Robert Tollison out of the libertarian think-tank, the Center for Study of Public Choiceat George Mason University. The tobacco industry paid James Savarese and his staff (at James Savarese & Associates) to organise and oversee the operations and keep it at arm's length. This was a Tobacco Institute operation which went on for many years.

Its aim was to keep pressure on Congress and State Assemblies not to increase excise taxes on cigarettes - or to pass legislation that would ban cigarette advertising - and to stop them blocking sales via vending machines (mainly to minors). Because of the ad-ban threat, they had the tacit support of many media outlets in promoting this message. Their input was generally in the form of 1000-1200 word op-eds for a designated newspaper, or a letter to the editor on a subject the Tobacco Institute wanted promoted. They would be paid $700 to $1500 for each piece published, with a bonus if personal letters were sent to two local Congressmen.

HOW THE NETWORK WORKED

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The Cash-for-Comments Economists' Network was run by Savarese through a partnership with Professor Robert D Tollison who used the staff and facilities of the Center for Study of Public Choice at George Mason University to prove cut-out and organisation services. They developed and maintained a network of Economics Professors with at least one on tap in virtually every US state. As one Professor transferred or dropped out (there was a regular turn-over) a new one would be recruited in that State. In all, about 130 university professors were involved in the period 1985-1995, and costs ran to $3 million/year at a time when professor's salaries were in the $30-40,000 pa range. An active network member at a State university could almost double his normal salary.

{nl}The main focus of the group was to write commissioned op-ed articles on a subject determined by the Tobacco Institute. The draft article would then pass back through the network to TI staff, who were essentially public relations experts. Here they were 'improved' and refined; then sent to the Institute's outside lawyers for vetting. Modified articles then returned to the professor, who would then send them to a designated State newspaper as if they were his 'independent expert opinion'. The professors received a base amount for writing and bonuses for successfully planting the article on the newspaper. Some, but not all, received a small (eg.$1000) annual retainer.[2]]

{nl}  Published papers would also be copied by the professor and sent to his local Federal Representative and Senator (for a further bonus). Sometimes there were special commissions, but generally the work was writing op-eds and LTE's where they were paid just on results (varied from about $700 to $3000 over the years). Network members could also be called upon to provide witness services and promote the cigarette companies' political/economic line at local ordinance or State legislative hearings. An active professor of economics at a State University could almost double his salary with these activities and with some further appearances, for instance, speaking on the importance of cigarettes in economic terms at major economic conferences, etc.|

Cash for Comments Economists Network   &   Robert Tollison   &   James Savarese   &   Network Document Index

In the mid 1990s there appears to have been a break up of the larger network with most of the non-core members joining William Shughart in working through the Independent Institute. Savarese and Tollision, however, continued to work through George Mason University. DiLorenzo served as a research fellow at theIndependent Institute and the Capital Research Center, two public policy think tanks that have accepted tobacco industry funding.[3]

Contents

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very long

https://www.sourcewatch.org/index.php?title=Cash_for_Comments_Economists_Network

The Cash for Comments network of 127 (in total over ten years) American Professors of Economics (with a few law and business professors), was one of the most successful, and long-lasting of all the scams run by the tobacco industry. It was the brain-child of Professor Robert D. Tollison at George Mason University's libertarian think-tank, the Center for the Study of Public Choice (CSPC), and James M Savarese of Ogilvy & Mather Public Relations.

Savarese later took the lobbying operation out of O&M and ran it through his own private lobbying company James Savarese & Associates with a skeleton staff -- and in partnership with Tollison and his wife Anna Tollison. Later Savarese turned up, once again, as a key lobbyist with Ogilvy Adams & Rinehart, so clearly this had always been a surreptitious O&M operation - kept at arms length and legally separated from that large company - probably for legal reasons.

Essentially, Savarese and Tollison recruited as network members at least one Professor of Economics in each State University (they were poorly paid and welcomed the chance to make money on the side). He used his list of members and associates within the Center for Study of Public Choice and the Public Choice Society which he jointly controlled with Gordon Tullock and James Buchanan at George Mason University.

The foundation document of this network was a memo "Excise Tax Speaking Forums" sent by Ogilvy & Mather to FredPanzer at the Tobacco Instituteon the 20th November 1984 [2]. It refers to a forum sponsored by the Public Choice Society to be held in New Orleans (Feb 21-23 1985) which had four core-group network speakers on a major panel, which was being organised for the tobacco industry by Tollison and Savarese. This early manifestation came to be called the Committee on Taxation & Economic Growth.

Public Choice Libertarian ideology

'Public Choice Economics' in the context of the day, was a catch-phrase meaning "free-markets, less government, reduced regulation" of goods and services. It was the ultra-libertarian economic ideology of UK Prime Minister Margaret Thatcher which was followed (as much as he was capable of understanding it) by President Ronald Reagan in the USA. It's main emphasis was on deregulation of industries -- even those with poisoning and polluting proplems - and in Reagan's case it led to major scandals with the forced retirement of over 20 top staff from the EPA, and the hurried exit ofThorne Auchter as head of the Occupational Safety & Health Administration and his (later) lobbying partner James J Tozzias the administration's "Deregulation Czar" (Office of Information & Regulatory Affairs - OIRA/OMB).

Payment system

The tobacco industry paid no retainer fees to the general Cash-for-Comment network members. However they did retain some of the core network and paid higher fees to a half-dozen of the Society economist recruited as part of the Committee on Taxation & Economic Growth. Network members were employed purely on pay-for-service transactions, and expected to also make some extra cash from the newspapers which accepted their op-eds.

RELATED ENTRIES
Com. on Tax & Economic Growth
Economists' network
Robert Tollison & James Savarese
C4C Network Documents
C4C Network Members

Savarese and Tollison would put out a request to each network member, specifying the subject to be covered and including a few of the key themes to be promoted, together with any essential statistics. The professor-member was then expected to:

  1. write an op-ed piece following the theme and guidelines provided (usually 1000-1500 words), but in layman's language.
  2. send the article to the editor of a local city newspaper (specified by the minders). It was probably assumed that some would be paid a token freelance writer's fee by the newspaper. ($100-$250 at this time)
  3. if the article was published (and many were since they were essentially free) then photocopies of the article were to be sent to two local Representatives or Congressmen (specified by the tobacco staff)
  4. copies of the published piece would then be returned to Savarese for payment.

The professors would then be paid between$600 and $3000 for their efforts by way of the Center for the Study of Public Choice at George Mason University; the amount varied over time.

The articles were commissioned via Savarese's staff, and the draft article was expected to be returned to the Institute for checking. They would make any necessary changes, and pass it through one or more of their major outside law firms for vetting. Sometimes Savarese or his staff might make changes also. Newspapers were designated in each region, so two or more articles didn't conflict.If the article was published (and sometimes even if they weren't) copies were to a designated Representative or Senator, with a note bringing the economist's 'independent opinion' to the Congressman's notice.

They were also paid to write letters-to-the-editor whenever the opportunity arose to promote the cigarette industry's line. For a period in 1987-88 the network was extended to also include Professors of Law and Business.

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SEE C4C (Doc Index) for the most relevant of tobacco archives documents.

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C4C Network Phases

The Cash for Comments Economists' Network developed in five clearly identifiable phases.

Organisation

The principle organisers included the:

At a later date the operations and administration was hidden behind the veil of the Independent Institute and William F Shughart (one of the core group).

The most popular line of economic argument favoured by the tobacco industry was that of maintaining that cigarette excises (which the States controlled and used to bolster their funds when needed) were 'Regressive' taxes. The appeal was made on human-rights grounds; that the State was kicking the poor and attacking the more defenseless members of society who enjoyed a smoke. Next in line would be a return of alcohol Prohibition or excessive excise taxes on beer and fast food....[much more incl james buchanan, fred singer]