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Tobacco Lawsuit Another Tobacco Lawsuit (Yawn) Contrary to anything you might read, partment. The pros there said a federal Notice the suggestion of implied immu- piling up lawsuits on tobacco companies fall fostering the biotech industry. That suit wouldn't fly. nity? doesn't do anything to stop smoking. Even would make some biotech engineers and Lo and behold, a suit was filed last week The government presents itself as vic- driving tobacco companies into bank- entrepreneurs very grateful. Other states anyway. Like an unhappy spouse, though, tim in this case. Yet everybody now agrees ruptcy wouldn't mean they'd stop produc- are engaged in similarly delicious deci- the career staffers got their revenge in the the government collects more in taxes and ing cigarettes. sions. Politicians enjoy hanging around fine print. saves more in Social Security payments Banning their advertising doesn't stop with people who are grateful. For one thing, the damages sought than it pays in medical expenses: people from smoking cigarettes either. At the federal level, the Democrats have aren't the $20 billion the government Last week's lawsuit was launched to re- Brand names do not die because they are Medicare expansion in mind and other en- claims to spend annually on sick smokers. vive the tobacco issue for next year's elec- not advertised. Remember Burma Shave? titlements for the middle class that, in elec- The damages are only the portion attribut- tion. The cigarette industry issued its Nor would it make smoking any less of a tions ahead, they will want to accuse the able to the offenses with which the tobacco usual statement about how about it would rite of passage. Nobody advertises "bidi" Republicans of trying to take away. To- companies are charged-i.e. obfuscating fight the case to the death. We've heard cigarettes from India, packing several bacco money will help pay for these pro- the dangers of smoking. that before. times the nicotine and tar of a normal ciga- grams. The operative assertion that the govern- Two years ago, the industry agreed to a rette. Yet these have become the latest The crypto-nationalization of the Big ment would have to prove appears on page financial settlement, plus advertising re- teenage craze. Four, perversely, has made the cigarette 54 of the complaint: "Members of the pub- strictions and other regulations, beyond Stopping their ads would simply freeze industry attractive again for private enter- lic believed in the truth and completeness anything contemplated in this case or the the relative positions of the brands in the prise. Spain's Tabacalera is just one of sev- of the statements made by defendants and eral foreign brands taking a new look at WEDNESDAY, SEPTEMBER 29, 1999 their co-conspirators. They relied upon the Business World The cigarette indus- the U.S. market. Eventually there will be a THE WALL STREET JOURNAL statements by defendants and their co-con- flourishing smuggling trade as well. More spirators and demonstrated that re- liance by purchasing and smoking ciga- try issued its usual state- than 15% of beer bought in France is now By Holman W. Jenkins Jr. consumed in Britain. By the same osmosis, rettes, and by refraining from trying to ment about how it would cartons of cigarettes have begun to flow quit or reduce their consumption of ciga- rettes." fight to the death. We've back into the U.S. from tax-free Indian reservations and from Canada. marketplace SO the Big Four could raise Somebody at Justice has a sense of hu- prices without losing sales. The Big Four- heard that before. Why do politicians lie? Why is lying vir- mor. Surveys as far back as 1974 have Philip Morris, R.J. Reynolds, BAT and Lo- tually a bodily function of politicians? We shown that 99% of seven-year-olds under- rillard-aren't the only cigarette makers in take a view of politics here that makes it stand the dangers of smoking. lawsuits already settled by the states. the U.S. There are about 50 others. In fact, hard to condemn them for being poll-dri- Second, under Medicare and other Once the election is over, this case will be this would be a good time to start a new one. ven mouthpieces, uttering whatever cant health-care recovery laws, the government settled too. The industry has figured out is currently in demand. This is a democ- These smaller companies won't pay the can claim damages going only back six that its future lies in helping the govern- lawsuit tax, so they'll be free to make huge racy. If you can find one thing everybody years, at most. ment become more complicit in the tobacco profits under the umbrella of Big Tobacco's agrees with-say, teenagers shouldn't Enter Al Gore, witness for the tobacco habit. The government has figured out it price hikes. The states have agreed not to smoke-cling to it as the rock of salvation. companies. needs the industry's private shareholders sue Little Tobacco as long as they don't in- The life of a politician isn't all bad. The From 1966, every pack had a warning as a figleaf even as government becomes crease their market share by more than truth may be a foreign land about which on it. That warning was revised in 1984 un- the main beneficiary of tobacco profits. 25%, which would cut too much into the they know little, but there is the satisfac- der the auspices of a certain congressman Already the states involved in the Med- government's take from the Big Four. tion of bossing large amounts of money from Tennessee. "This bill represents a icaid settlement have fully incorporated to- So the government war on smoking has around. Under a deal between the Big Four progressive and courageous step by the to- bacco revenues in their spending budget become pretty much a joke, and that in- and the private lawyers who represented bacco industry that caught many by sur- for the rest of time. Their dirty secret was cludes the latest lawsuit. Wherever Bill the states, the lawyers will receive $500 prise," Mr. Gore, himself a former tobacco their deliberate phasing in of higher Clinton got the idea of a federal case million a year in perpetuity from future farmer, said at the time. "This has been a prices, so smokers wouldn't quit from smokers. That's a lot of millionaires who against the Big Four that he slipped into bitter pill for them to swallow, but in doing sticker shock. his State of the Union speech earlier this will have to stay grateful to the politicians SO they have made stiffer punitive legisla- In Ohio, they're having a fine debate year, it didn't come from the Justice De- lest anything interrupt this flow of money. tion less likely in the years ahead." about whether to spend the tobacco wind- Like, say, a real war on smoking.