Open in TheBrain

Ramhurst

<h3><font size="4" face="Times New Roman">---</font></h3><div><font size="4" face="Times New Roman"><b>Control the GOP Congress. The tobacco industry played a crucial role in the "Republican revolution."</b> As Peter H. Stone reports<span style="background-color: rgb(255, 255, 102);">, campaign contributions and a revolving door of operatives— working jointly for tobacco and for key Congress members—have locked the industry and the top Republican leadership in a tight embrace (</span>see The Nicotine Network [3]). For instance, Stone relates how <span style="background-color: rgb(255, 255, 102);">Majority Whip Tom DeLay has put a tobacco operative in charge of his main political organization, ARMPAC.</span> &nbsp;mojo 1996</font></div><div><font size="4" face="Times New Roman">==</font></div>

<h1 class="gb-volume-title" dir="ltr"><font size="4" face="Times New Roman">Mother Jones Magazine <span dir="ltr">May-Jun 1996</span></font></h1>

<p><font size="4" face="Times New Roman">Nicotine Network</font></p>

<h1 class="print-title" style=" margin-bottom: .2em;"><font size="4" face="Times New Roman">The Nicotine Network</font></h1>

<div class="dek" style=" font-style: italic; margin-bottom: .5em;"><font size="4" face="Times New Roman">How Big Tobacco and Republican congressional leaders help each other gain power.</font></div>

<p class="submitted"><font size="4" face="Times New Roman"><span class="byline">By <a href="http://www.motherjones.com/authors/peter-h-stone" rel="author">Peter H. Stone</a></span> | <span class="dateline">Tue Apr. 30, 1996 11:00 PM PDT</span></font></p>

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<p><font size="4" face="Times New Roman">Just four blocks from the headquarters of RJR Nabisco in Winston-Salem, N.C., is a small company called the <b>Ramhurst Corp.</b>, which has been playing an instrumental role in the beleaguered tobacco behemoth's political fortunes.<span style="background-color: rgb(255, 255, 102);"> Its key mission: to quash the biggest political and financial challenges the tobacco industry has ever faced--from federal efforts to regulate tobacco at the Food and Drug Administration to state attempts to impose excise taxes and smoking restrictions.</span></font>

<font size="4" face="Times New Roman">Launched in 1993 with the support of RJR, Ramhurst--which coordinates many of its activities closely with RJR--<span style="background-color: rgb(255, 255, 102);">combines <b>"grassroots" </b>lobbying with inside-the-Beltway influence-peddling.</span> <span style="background-color: rgb(255, 255, 102);">"Grassroots" coalitions have become a vital tool for tobacco's survival because of the industry's increasingly negative public image. By forming coalitions with business groups, conservative activist organizations, and other industries, tobacco companies like RJR obtain useful cover and, in effect, go from being a "black hat" to a "white hat" in the political world.</span></font></p>

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<p><font size="4" face="Times New Roman">Ramhurst occupies a special niche among grassroots organizers for tobacco, however: Its operatives have also forged ties with some of the most powerful GOP leaders in Washington, including Senate Majority Leader Bob <span style=" background-color: rgb(255, 255, 102);"><b>Dole,</b> House Majority Leader Dick<b> Armey, </b>and Arizona Rep.<b> John Shadegg, Newt Gingrich's</b></span><b> hand-picked choice to succeed him as director of the powerful political action committee GOPAC.</b></font>

<font size="4" face="Times New Roman" style="background-color: rgb(255, 255, 102);">Most significantly, a key <b>Ramhurst operative has been tapped to head House Majority Whip Tom DeLay's leadership PAC</b>, considered by many the pre-eminent fundraising vehicle in the GOP, after Newt Gingrich's money machine.</font></p>

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<div class="print-source_url"><font size="4" face="Times New Roman"><strong>Source URL:</strong> <a href="http://www.motherjones.com/politics/1996/05/nicotine-network">http://www.motherjones.com/politics/1996/05/nicotine-network</a>

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<h1 class="title"><font size="4" face="Times New Roman">The Nicotine Network (cont'd)</font></h1>

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<p class="byline byline-byline"><font size="4" face="Times New Roman">—By <a href="http://www.motherjones.com/authors/peter-h-stone" rel="author">Peter H. Stone</a></font></p>

<div id="dateline"><font size="4" face="Times New Roman">| <a href="http://www.motherjones.com/toc/1996/05">May/June 1996 Issue</a></font></div></div>

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<pre><font size="4" face="Times New Roman"><b>M A R R Y I N G G R A S S R O O T S & I N F L U E N C E - P E D D L I N G</b>

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<p><font size="4" face="Times New Roman">Ramhurst grew out of an earlier operation, set up by RJR executive Mike Phillips in the mid-1980s. Phillips' team hosted dozens of smokers' rights group meetings around the country; those groups grew rapidly and were coordinated by an RJR team of field operatives and consultants, some of whom had strong backgrounds in conservative and GOP politics.</font>

<font size="4" face="Times New Roman">Two of these operatives, James Ellis, 39, and Doug Goodyear, 36, came up with the idea of launching Ramhurst in late 1993. <b>Ellis, who had worked for Paul Weyrich's ultraconservative Free Congress Foundation </b>before going to RJR in the late '80s, became Ramhurst's president; Goodyear, a former GOP political operative in Colorado and New Jersey, became the company's vice president and treasurer. Ramhurst is secretive about some pertinent details--such as how much money it receives from RJR yearly, and the size of the RJR mailing lists it taps to develop its campaigns.</font></p>

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<p><font size="4" face="Times New Roman">From its inception, Ramhurst worked to refine the grassroots lobbying techniques used by RJR and the tobacco company's longtime consultant, Walt Klein & Associates. But to help RJR get more bang for its buck, Ramhurst married that strategy to some aggressive influence-peddling within the GOP.</font>

<font size="4" face="Times New Roman"><b>T H E D E L A Y C O N N E C T I O N</b>

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<p><font size="4" face="Times New Roman">Ramhurst, which has a full-time staff of just three, boasts a sophisticated nationwide network of about two dozen independent contractors who help mobilize coalitions of smokers, conservative activists, and business allies to block regulations and expensive new taxes on tobacco products. These operatives, some of whom have their own firms, spend about half their time handling Ramhurst work for RJR and several other business and political clients; the rest of the time, they're free to conduct their own grassroots work. In fact, several of Ramhurst's grassroots gurus also are playing growing roles in the political fortunes and campaigns of leading GOP members.</font>

<span style=" background-color: rgb(255, 255, 102);"><font size="4" face="Times New Roman">The biggest coup for Ramhurst so far has been its relationship with Majority Whip Tom DeLay (R-Texas). Last summer, DeLay's leadership PAC, Americans for a Republican Majority (ARMPAC), contracted with Ramhurst to hire its operative Karl Gallant, a former lobbyist for the anti-union National Right to Work Committee and an old friend of DeLay's. ARMPAC named Gallant, who continues to work for Ramhurst, as its executive director. His hiring represents a kind of package deal: When DeLay does fundraising appearances around the country, Gallant can call on other Ramhurst operatives to help out.</font></span>

<font size="4" face="Times New Roman">Nor is this Gallant's first connection to top congressional Republicans. In the second half of 1994, Gallant had an outside consulting contract with Bob Dole's leadership PAC, Campaign America, advising the PAC on which GOP candidates to support in Pennsylvania and Ohio.</font>

<font size="4" face="Times New Roman">The Ramhurst-DeLay connection has already yielded dividends for both. In December, DeLay figured prominently among the 156 members of Congress who signed letters opposing FDA regulation of tobacco. Meanwhile, the tobacco money flowing into ARMPAC has helped DeLay become the most successful--and influential--fundraiser in the GOP Congress after Newt Gingrich. By doling out hundreds of thousands of dollars from ARMPAC to Republican candidates in need, DeLay has dramatically increased his clout with fellow Republicans.</font>

<font size="4" face="Times New Roman">Part of ARMPAC's power comes from its unique structure as both a federal and a state PAC. That flexibility has allowed RJR to direct huge corporate contributions in at least one state--Virginia--in an effort to gain political ground for tobacco interests in the state legislature. Last year, ARMPAC raised at least $175,000 from corporations in Virginia to support GOP candidates. A whopping $73,000 came from RJR, and Philip Morris also kicked in $10,000.</font>

<font size="4" face="Times New Roman">Virginia--in the heart of tobacco country--was not picked as a battleground by accident. Two PACs run by GOP leaders and some big business PACs invested heavily in the state's Republican challengers because the legislature, long under Democratic control, seemed as though it might be up for grabs and could become even more tobacco-friendly. ARMPAC gave $27,500 to 15 GOP candidates for the Virginia legislature and reported that it spent about $48,000 on fundraising expenses. (Only two of the 15 candidates backed by ARMPAC won seats, and the effort to take control of the legislature failed.)</font>

<font size="4" face="Times New Roman">This year, ARMPAC has already made contributions to GOP challengers in a few states, including California, Kentucky, and Tennessee, where the Republicans hope to gain more seats. To keep its coffers well stocked, DeLay held a big bash in Houston in January to honor Gingrich; the event pulled in about $280,000. Gallant and ARMPAC also plan to be active at the August GOP convention in San Diego.</font>

<font size="4" face="Times New Roman">Where else will ARMPAC be at work? Gallant declined to discuss his activities for Ramhurst with <i>Mother Jones</i>. Last year, he told the <i>National Journal</i> that ARMPAC will comply with all regulations about reporting donations in states that require it. But he made it clear that he is hardly going to provide information where the law doesn't mandate it. "Why give the enemy your blueprint for action?Ó he asked. "We're not going to unilaterally disarm."</font>

<font size="4" face="Times New Roman"><b>O T H E R F R I E N D S I N C O N G R E S S</b>

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<p><font size="4" face="Times New Roman">Like Gallant, other Ramhurst operatives have capitalized on the company's loose structure to develop ties to the top echelon of the GOP Congress:</font></p>

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<li><font size="4" face="Times New Roman">Dole, besides having employed Gallant as a consultant, has long turned to grassroots specialist Tom Synhorst for campaign advice. Synhorst, who runs the Kansas City-based telemarketing company Direct Connect, is also one of Ramhurst's most important operatives. Direct Connect works for Ramhurst in several states, including Missouri, Iowa, Kansas, and Nebraska.</font></li>

<li><font size="4" face="Times New Roman">Ramhurst's Gallant was retained to consult and raise funds for the campaign coffers of freshman Rep. John Shadegg (R-Ariz.). Shadegg's star rose last year when he became chairman of GOPAC, the powerful PAC formerly run by Speaker Newt Gingrich. (According to Common Cause, RJR has also aided GOPAC, with contributions of at least $50,000 in recent years.)</font></li>

<li><font size="4" face="Times New Roman">For extra political cachet, Ramhurst last year signed on David Armey, the 20-something son of House Majority Leader Dick Armey (R-Texas), as an operative. "We're looking for new blood all the time," says Mike Phillips, RJR's director of field operations who oversees Ramhurst. "He's a sharp kid."</font></li>

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<p><font size="4" face="Times New Roman">Thus far, Armey (who didn't return <i>Mother Jones</i>' phone calls) has worked on local issues in a few states, including Texas, Florida, and Montana, according to Phillips. One of his first battles was in Texas last spring, where he helped drum up support for an unsuccessful effort to overturn a local smoking ban in Wichita Falls (see <a href="http://www.motherjones.com/politics/1996/05/brokaw.html#texas">"Texas"</a>).</font>

<font size="4" face="Times New Roman"><b>" G R A S S R O O T S " C A M P A I G N S</b>

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<p><font size="4" face="Times New Roman">In addition to creating close ties with GOP politicians, Ramhurst also has been artful at linking tobacco interests to other, more broad-based efforts. According to RJR's Phillips, as much as 75 percent of Ramhurst's work is at the state level. During 1994, for example, Ramhurst and RJR took part in the successful all-out assault by GOP, business, and conservative groups nationwide to kill the Clinton proposal that would have raised excise taxes 75 cents per pack to pay for health care reform.</font>

<font size="4" face="Times New Roman">"We held meetings with smokers and retailers," recalls Goodyear, Ramhurst's vice president. "We did town hall meetings with congressmen. We encouraged letters to members. I think that was one of our biggest accomplishments. Tobacco looked like it was going to take a big hit."</font>

<font size="4" face="Times New Roman">Ramhurst also maximized RJR's political leverage by working with powerful trade associations like the National Federation of Independent Business Inc., Washington's top small-business lobbying group. In the 1994 elections, NFIB retained Ramhurst to organize in about 14 congressional districts where NFIB hoped to elect GOP candidates.</font>

<font size="4" face="Times New Roman">Increasingly, Ramhurst is working with anti-tax groups, including Americans for Tax Reform, the National Taxpayers Union, and Citizens for a Sound Economy, says Goodyear. Last year, for example, Ramhurst helped derail a proposed New Jersey excise tax hike backed by Republican Gov. Christine Todd Whitman. Key to Ramhurst's success was forming alliances with groups opposed to taxes in general. "We try to reach out to like-minded people," says Goodyear. "Anti-tax groups are natural ones for us to reach out to."</font>

<font size="4" face="Times New Roman">Some of these groups, besides being ideological foes of tax hikes, have also been funded by the tobacco industry. Citizens for a Sound Economy (CSE), which led the New Jersey lobbying drive, received between $100,000 and $200,000 from Philip Morris in the early '90s. RJR also gave CSE an unknown amount of direct funds and provided the group with the use of its field operatives to fight the Clinton health plan. Similarly, the National Taxpayers Union, which has an annual budget of about $5 million, has received "significant" contributions from Philip Morris, according to director David Keating.</font>

<font size="4" face="Times New Roman"><b>T H E M O V E T O T H E S T A T E S</b>

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<p><font size="4" face="Times New Roman">Though it has grown quickly, the Ramhurst operation still remains just one facet of Big Tobacco's multimillion- dollar-a-year jihad against government efforts to control tobacco. For Ramhurst and the tobacco industry, the stakes keep getting higher and the fights more intense. "The nature of the battle keeps changing," says Goodyear.</font>

<font size="4" face="Times New Roman">One of the most significant challenges the industry faces is the recent proliferation of local efforts to control tobacco. Victor Crawford, a former lobbyist for tobacco interests who became an anti-smoking advocate, summed up the problem in an interview early this year. "We started getting killed when the consumers started moving from the national level to the state and local levels," recalled Crawford, a longtime chain-smoker who died of lung and throat cancer in March. "We started getting a shellacking."</font>

<font size="4" face="Times New Roman"><i>Peter H. Stone covers lobbying and campaign finance issues for the </i>National Journal.</font></p>

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<h3><font size="4" face="Times New Roman">---

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<h3><font size="4" face="Times New Roman">cf gore usf</font></h3>

<h3><font size="4" face="Times New Roman">Historical context for tobacco industry third-party efforts</font></h3>

<p id="p-11"><font size="4" face="Times New Roman">The tobacco industry historically worked through ‘third-party’ allies<a id="xref-ref-28-1" class="xref-bibr" href="http://tobaccocontrol.bmj.com/content/early/2013/02/07/tobaccocontrol-2012-050815.full#ref-28">28–32</a> because of its low credibility with the public. By the late 1980s, confronted with increasing success of the local grassroots non-smokers’ rights movement, RJ Reynolds (RJR) and Philip Morris began creating and facilitating ‘smokers’ rights’ groups to oppose smoke-free laws.<a id="xref-ref-28-2" class="xref-bibr" href="http://tobaccocontrol.bmj.com/content/early/2013/02/07/tobaccocontrol-2012-050815.full#ref-28">28</a> <span class="xref-sep">,</span><a id="xref-ref-33-1" class="xref-bibr" href="http://tobaccocontrol.bmj.com/content/early/2013/02/07/tobaccocontrol-2012-050815.full#ref-33">33</a> The smokers’ rights groups were an important component of the tobacco industry's third-party advocacy efforts in the 1980s and early 1990s. A July 1993 Philip Morris draft plan to create what became the National Smokers Alliance (NSA) described the political environment: <q id="disp-quote-1">Lobbying efforts are facing increasing difficulty. Even national representatives from tobacco states are losing heart for defending smokers’ rights and sustaining the tobacco industry. The power of the vested interest of the tobacco industry has not been fully brought to bear in sustaining smokers [sic] rights.<a id="xref-ref-34-1" class="xref-bibr" href="http://tobaccocontrol.bmj.com/content/early/2013/02/07/tobaccocontrol-2012-050815.full#ref-34">34</a></q></font>

<font size="4" face="Times New Roman">As of 2012, key personnel from the smokers’ rights groups had founded or worked at firms that consulted for Tea Party groups (<a id="xref-fig-1-3" class="xref-fig" href="http://tobaccocontrol.bmj.com/content/early/2013/02/07/tobaccocontrol-2012-050815.full#F1">figure 1</a>).</font>

<font size="4" face="Times New Roman">In the 1990s, RJR's smokers’ rights groups were organised through a network of field coordinators who recruited members, held meetings and provided meeting agendas, letters to editors and elected officials, a telephone script for contacting elected officials and petitions.<a id="xref-ref-33-2" class="xref-bibr" href="http://tobaccocontrol.bmj.com/content/early/2013/02/07/tobaccocontrol-2012-050815.full#ref-33">33</a> By the mid-1990s, RJR was using public relations firms Ramhurst and Walt Klein & Associates to help coordinate their smokers’ rights groups. Ramhurst was formed in 1993 with support from RJR and run by former RJR smokers’ rights group coordinators, James Ellis and Doug Goodyear<a id="xref-ref-35-1" class="xref-bibr" href="http://tobaccocontrol.bmj.com/content/early/2013/02/07/tobaccocontrol-2012-050815.full#ref-35">35</a> <span class="xref-sep">,</span><a id="xref-ref-36-1" class="xref-bibr" href="http://tobaccocontrol.bmj.com/content/early/2013/02/07/tobaccocontrol-2012-050815.full#ref-36">36</a> (past vice president of Walt Klein & Associates in North Carolina, see online supplementary table S2). By 1994 Ramhurst was coordinating RJR's smokers’ rights groups, providing ‘the field personnel necessary to implement and execute various programmes and activities related to RJR's national grassroots programme,’<a id="xref-ref-37-1" class="xref-bibr" href="http://tobaccocontrol.bmj.com/content/early/2013/02/07/tobaccocontrol-2012-050815.full#ref-37">37</a> with Walt Klein & Associates providing ‘ancillary services necessary to support the field force.’<a id="xref-ref-37-2" class="xref-bibr" href="http://tobaccocontrol.bmj.com/content/early/2013/02/07/tobaccocontrol-2012-050815.full#ref-37">37</a></font>

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<font size="4" face="Times New Roman">Tobacco Education Center</font>

<font size="4" face="Times New Roman"><b>RJR's Field Force Included a Former Aide to Governor Romer (2000)</b>

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<dt><font size="4" face="Times New Roman">Subj: RJR's Field Force Unravelled #1

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<dt><font size="4" face="Times New Roman">Date: Monday, March 20, 2000 12:45:46 PM

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<dt><font size="4" face="Times New Roman">From:

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<dt><font size="4" face="Times New Roman">To:</font></dt>

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<dt><font size="4" face="Times New Roman">Title: Public Issues 1994 Plans (940000)

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<dt><font size="4" face="Times New Roman">Doc # 51253 1448 (PART 1)

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<dt><font size="4" face="Times New Roman">Web site: http://www.rjrtdocs.com</font></dt></dl><p><font size="4" face="Times New Roman">

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<font size="4" face="Times New Roman">This document unravels RJ Reynolds field force in 1994, including the names and assignments of field operatives that where in charge of coordinating and developing the smokers' rights movement in various states and how much they were paid. Many of these RJR operatives, their activities, and some internal documents were mentioned in the 1996 May/June issue of Mother Jones. Now, we have an opportunity to see the specifics.</font>

<font size="4" face="Times New Roman">Note of Interest: Mike Stratton and Rick Reiter are both from Colorado. Stratton was a political aide to former Governor Roy Romer.</font>

<font size="4" face="Times New Roman">Since this document is hard to scan, I am providing some highlights only. Next week, I'll have the field operatives and their salaries and share information on RJR recruited truck drivers.</font></p>

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<dt><font size="4" face="Times New Roman">Pete Bialick

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<dt><font size="4" face="Times New Roman">GASP of Colorado, GASPCO@aol.com</font></dt>

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<h4 class="main"><font size="4" face="Times New Roman">RJR PUBLIC ISSUES 1994 PLANS</font></h4>

<p class="main"><font size="4" face="Times New Roman">Budget Summary:</font>

<font size="4" face="Times New Roman">1. Field Force $2,605,000</font></p>

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<dt><font size="4" face="Times New Roman">The Ramhurst Company

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<dt><font size="4" face="Times New Roman">Field Force Compensation $1,345,600

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<dt><font size="4" face="Times New Roman">Field Force Expenses 773,000

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<dt><font size="4" face="Times New Roman">Agency Fees/Overhead 364, 300</font></dt>

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<p class="main"><font size="4" face="Times New Roman">Stratton, Reiter, Dupree and Durante</font></p>

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<dt><font size="4" face="Times New Roman">Mike Stratton

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<dt><font size="4" face="Times New Roman">Fee $72,000

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<dt><font size="4" face="Times New Roman">Expenses 20,000</font></dt>

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<dt><font size="4" face="Times New Roman">Rick Reiter

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<dt><font size="4" face="Times New Roman">Fee $22,500

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<dt><font size="4" face="Times New Roman">Expenses 7,600</font></dt>

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<font size="4" face="Times New Roman">2. Morning Team $1,000,000</font>

<font size="4" face="Times New Roman">3. Training Programs $380,000 (broken down in the document)</font>

<font size="4" face="Times New Roman">4. Field Desk 325,000</font>

<font size="4" face="Times New Roman">5, Newsletters 60,000</font>

<font size="4" face="Times New Roman">6. SRG (Smokers' Rights Groups) Materials/Fulfillment 75,000</font>

<font size="4" face="Times New Roman">7. Coalitions 290,000</font>

<font size="4" face="Times New Roman">8. New Program Development/Contingency 50,000</font>

<font size="4" face="Times New Roman">TOTAL 1994 FIELD PROGRAM BUDGET: $4,765,000</font>

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<h4 class="main"><font size="4" face="Times New Roman">ORGANIZATIONAL OVERVIEW</font></h4>

<p class="main"><font size="4" face="Times New Roman">"... the two principals of The Ramhurst Corporation, James Ellis and Doug Goodyear, will be responsible for the day-to-day management of consultants assigned to the program."</font>

<font size="4" face="Times New Roman">"The Ramhurst Co will contract with Walt Klein & Associates for ancillary services necessary to support the field force."</font>

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<font size="4" face="Times New Roman">1. FlELD FORCE ($2,605,000)</font>

<font size="4" face="Times New Roman">Consists of 18 members of its field force to RJR's national grassroots program, 12 in assigned regions.</font>

<font size="4" face="Times New Roman">Responsibilities include "executing tactical programs on federal, state or local issues, developing a network of smokers' rights groups and other coalition partners within the region that will speak out on issues important to the Company: implementing training and communication programs designed to inform activists and maintain their ongoing involvement in the grassroots movement."</font>

<font size="4" face="Times New Roman">TWO additional consultants hired specifically for Massachusetts and North Carolina</font>

<font size="4" face="Times New Roman">Stratton, Reiter, Dupree & Durante to provide special services including consulting, training programs, and consulting.</font>

<font size="4" face="Times New Roman">2. Morning Team $1,000,000</font>

<font size="4" face="Times New Roman">"Coordinates all grassroots activities against issues at the local level and state level."</font></p>

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<dt><font size="4" face="Times New Roman">Lists issues expected in 1994 including:

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<dd><font size="4" face="Times New Roman">State excise tax fights in 25 to 30 states.

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<dd><font size="4" face="Times New Roman">Attempts to pass local preemption in 6 to 8 states.

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<dd><font size="4" face="Times New Roman">Attempts to strengthen existing clean indoor air laws in 8 to 10 states.</font></dd>

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<p class="main"><font size="4" face="Times New Roman">3. SR (Smokers' Rights) Rapid Deployment Meetings $135,000</font>

<font size="4" face="Times New Roman">"Organizational meetings will be issue-driven. Meetings will be held to organize smokers around a local or state issue or to activate them in a key congressional district... plan budgets for 75 meetings at $1,800 each."</font>

<font size="4" face="Times New Roman">4. Statewide SR (Smokers' Rights) Conventions $60,000 Calls for SR conventions in 1994 in 20 priority states at $3,000 a meeting. Curriculum to include issue to emerge, media strategies, planning.</font>

<font size="4" face="Times New Roman">5. Sales/Retail Training Seminars $90,000 Like the SR meetings these are held to organize members of the trade at $3,000 each.</font>

<font size="4" face="Times New Roman">6. Media training Seminars $75,000 "Hold three media training seminars in W-S, primarily for EAGLE Alliance activists or for SR leaders who are near Dave Brenton caliber. Program will train these coalition partners to speak out on issue important to our mutual interests." Also discusses using Virgil Scudder & Associates or other trainers.</font>

<font size="4" face="Times New Roman">7. Field Desk $325,000 Walk Klein & Associates to handle logistics.</font>

<font size="4" face="Times New Roman">8. Regional SR (Smokers' Rights) Newsletters $60,000 "Produce and distribute region-specific, quarterly newsletters for smokers rights activists around the country." 4 rounds at $15,000 per round.</font>

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<dt><font size="4" face="Times New Roman">Subj: RJR's Field Force Unravelled #2

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<dt><font size="4" face="Times New Roman">Date: Monday, March 20, 2000 12:48:02 PM</font></dt></dl>

<p class="main"><font size="4" face="Times New Roman">RJ Reynolds spent more than $2,000,000 in 1994 to employ its field force. This is about half of their 1994 deployment budget. You can find out more about the activities these operatives engaged in at the RJR document site http://www.rjrtdocs.com/ Click on the 'Basic Search' button and in the first field type ('Combined Text') enter the name of the field coordinator with the last name first followed by the first letter of the first name. For instance, type in 'Gallagher, E' and documents will come up including 'Weekly Reports' that detail local and state smokers' rights actions. Gallagher traveled all over the country speaking at smokers' rights meetings. When I searched 'Fox, W' (RJR Colorado coordinator) I found about a dozen documents including the '1991 Plan for Smokers' Rights Movement in Wyoming' and a number of personal letters to smokers' rights activists who attended an RJR ETS seminar.</font>

<font size="4" face="Times New Roman">I also recommend reading 'Public Issues 1994,' the 43-page document that contains the information provided today.</font>

<font size="4" face="Times New Roman">Last year I circulated an interview with someone who knows one of the Ramhurst operatives. Mr. X stated that the RJR grassroots program is 'second to none.' Some of this outreach, which included truckers, is spelled out in the trade team program (below).</font>

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<dt><font size="4" face="Times New Roman">Pete Bialick

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<dt><font size="4" face="Times New Roman">GASP of Colorado GASPCO@aol.com</font></dt>

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<font size="4" face="Times New Roman">RJR's 1994 Field Force (from the document titled 'Public Issues 1994')

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Bob Fackler

Will Fox

Elizabeth Gallagher

Karl Gallant

Greg Graves

Bruce Hennes

John Hoy

Janet Hughes

Martin Mayfield

Susan Mitchell

John Rainey

Yvonne Roberts

Jeff Schmidt

Bob Schuman

Toby Spangler Indiana, Rapid Deployment

Bob Stone

Tom Synhorst

J.J. Vigneault

Ken Walton

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<table><tbody><tr><th class="main"><font size="4" face="Times New Roman">Name</font></th><th class="main"><font size="4" face="Times New Roman">Area</font></th><th class="main"><font size="4" face="Times New Roman">1994 Compensation</font></th></tr><tr><td class="main"><font size="4" face="Times New Roman">Pat Buckley</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">Delaware, District of Columbia, Maryland, West Virginia, Virginia</font></td><td class="main"><font size="4" face="Times New Roman">$69,190</font></td></tr><tr><td class="main"><font size="4" face="Times New Roman">Minnesota, Montana, North Dakota, South Dakota, Wisconsin, Wyoming</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$75,900</font></td></tr><tr><td class="main"><font size="4" face="Times New Roman">Arizona, Colorado, New Mexico, Nevada, Utah</font></td><td class="main"><font size="4" face="Times New Roman">$68,860</font></td></tr><tr><td class="main"><font size="4" face="Times New Roman">New York, Pennsylvania</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$66,550</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">New Jersey, Rapid Deployment</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$77,000</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Rapid Deployment</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$66,000</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Ohio, Michigan</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$64,900</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">California, Nevada</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$74,580</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Alabama, Georgia, Kentucky, North Carolina, South Carolina</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$67,650</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Alaska, Idaho, Oregon, Washington</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$67,100</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$66,000</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Local Issues in North Carolina (6 months)</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$33,440</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Assist in Philly Metro, Special Markets, Rapid Deployment</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$77,000</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Tennessee, Rapid Deployment</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$66,000</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Assist in San Diego, Rapid Deployment</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$92,400</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">$67,100</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Local issues in Massachusetts (6 months)</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$26,400</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Illinois, Iowa, Kansas, Nebraska, Missouri</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$80,300</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Arkansas. Oklahoma. Texas</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$71,280</font></td></tr><tr><td class="main" valign="top"><font size="4" face="Times New Roman">Florida, Louisiana, Mississippi</font></td><td class="main" valign="top"><font size="4" face="Times New Roman">$67,925</font></td></tr></tbody></table>

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<dt><font size="4" face="Times New Roman">Others (listed by last name only)

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<dt><font size="4" face="Times New Roman">Bickford $62,500

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<dt><font size="4" face="Times New Roman">Brady $58,100

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<dt><font size="4" face="Times New Roman">Rife $58,500</font></dt>

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<font size="4" face="Times New Roman">RJR's 1994 Trade Team (from the document titled 'Public Issues 1994')</font>

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<font size="4" face="Times New Roman">1. Direct Accounts Program - Top Accounts ($50,000)

Develop and deliver on a regular basis financial impact statements as to how a taxation or restriction issue will affect business. Develop and deliver an appropriate action/response to fit the issue.</font>

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<font size="4" face="Times New Roman">2. National Organizations ($75,000)

Work with executive management and the legislative to insure that tobacco issues are receiving the appropriate attention.</font>

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<dt><font size="4" face="Times New Roman">NACS

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<dt><font size="4" face="Times New Roman">SIGMA

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<dt><font size="4" face="Times New Roman">AWMA

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<dt><font size="4" face="Times New Roman">AWGA</font></dt>

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<font size="4" face="Times New Roman">Others possible, pending future development of '94 plans.</font>

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<font size="4" face="Times New Roman">3. State Organizations ($50,000) Same as national.</font>

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<font size="4" face="Times New Roman">4. Truck stops and truckers ($50,000)

Continue to partner with the National Association of Truck Operators working through their executive and legislative committees. Build on and amplify the Truckers Speak Out for Freedom Program.</font>

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<font size="4" face="Times New Roman">5. Media Efforts ($25,000)

Provide follow-up support to media trained executives to address future issues on an on-going basis.</font></p>

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