Liggett, which makes Chesterfield, Lark and L&M cigarettes, is the smallest of the major tobacco companies. It broke with the industry a year ago when it settled with five states for the cost of treating sick smokers. The company now has agreed to pay the 22 states 25 percent of its pre-tax profits over the next quarter century. If it merges with another tobacco company, which its chief executive has attempted to do, it would pay an additional $25 million.
While the latest settlement amount is impressive, continuing the litigation would have been even more expensive. Liggett clearly settled because it lacks the financial resources of Philip Morris, R.J. Reynolds, Lorillard and Brown & Williamson to carry on a protracted legal defense.
The settlement is important because of the admissions and Liggett's agreement to cooperate with government officials in turning over and interpreting incriminating documents involving the bigger companies.
Liggett has agreed to place warnings on all its products and advertising stating that tobacco is addictive. In addition, the company has agreed to acknowledge that cigarette smoking causes cancer and other health problems, nicotine is addictive and tobacco companies market the products specifically to minors.
While the public for years has known those statements to be true, the tobacco companies have been addicted to denial. The other major companies will rely on friendly judges in North Carolina to help fight the lawsuits. Indeed, a Durham judge this week issued an order sought by Philip Morris to block Liggett's disclosure of documents allegedly incriminating other companies. Still, Liggett's defection is highly damaging to the industry's attempts to deny the truth about its products.
The River of Life Mission is an important part of the network of assistance for the poor and homeless in this community. It cannot be permitted to fail in its attempts to find quarters where it can continue to serve the needy.
For the first time in nearly three decades, the U.S. mainland has become the most popular choice of Japanese honeymooners, besting Hawaii. The Japan Travel Bureau, the country's biggest travel agency, reported that one fourth of 2,500 newlyweds who bought its package tours last spring chose the mainland.
Rupert E. Phillips, CEO
John M. Flanagan, Editor & Publisher
David Shapiro, Managing Editor
Diane Yukihiro Chang, Senior Editor & Editorial Page Editor
Frank Bridgewater & Michael Rovner, Assistant Managing Editors
A.A. Smyser, Contributing Editor