
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, April 24, 1990                   TAG: 9004240028
SECTION: BUSINESS                    PAGE: A5   EDITION: STATE 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium

A SMOKE-FREE CIGARETTE MAKER? PRIEST VOWS TO TRY

A Catholic priest says he knows the odds are against him in his attempt to force cigarette maker Philip Morris Cos. to become smoke-free by the year 2000.

But the Rev. Michael Crosby said his purpose in bringing the issue to a vote at Thursday's annual stockholder meeting here is to draw attention to health problems associated with smoking. The New York-based company employs about 11,000 workers in Richmond, making it the area's largest corporate employer.

"We know the cards are stacked against us," said Crosby, who coordinates the New York-based Interfaith Center on Corporate Responsibility.

Crosby will get five minutes at the meeting to discuss his measure.

He can claim victory in getting the resolution on the multibillion dollar food and tobacco company's proxy after two years of legal skirmishing.

The company, of course, does not like the idea and urges shareholders to vote against it.

"The cigarette business is the company's original core business. It has been and remains an important and lawful business," management's statement said.

"It is a major contributor to the company's profitability. The board believes that the proposal is ill-conceived and would be highly detrimental to the company."

The company has 11 percent of the world market for cigarettes. Its Marlboro brand is the best-selling consumer packaged product on the planet.

Philip Morris reported operating revenues of $44.8 billion last year with 39 percent coming from foreign and domestic tobacco operations. The rest came from the Fortune 500 company's interest in beer, food, real estate and financial services.

Philip Morris has moved away from tobacco and into other businesses with its purchases of Kraft and General Foods, which form the largest food company in the United States and Canada.

The Evangelical Lutheran Church in America has secured another item on the agenda, this one aimed at preventing the sale or promotion of cigarettes to children.

"The purpose of the company's cigarette advertising and promotional activities is to persuade smokers to purchase our brands rather than those marketed by our competitors," the company said. "These activities are not directed to minors; nor are they intended to induce anyone to smoke," the company said in its proxy.

Crosby lost his last fight with Philip Morris management, an attempt to get the company to change its advertising policies in the Third World.

Crosby predicted that it will take a long time to wean Philip Morris from tobacco.

"They're addicted to profits," he said.

by CNB