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Show The Park Record Wed/Thurs/Fri, May 4-6, 2005 B-11 THE GRANT SHOPPE Gov. presses for anti-smoking programs Tobacco co/s may pay by providing remedies for addicts WASHINGTON (AP) When an appeals court barred the government from seeking $280 billion in a eivil racketeering trial against cigarette makers earlier this year, many legal scholars said the heart of the case had been ripped out. But on Monday, the government pressed ahead as it began to lay out potential remedies -- ranging from smoking-cessation programs to court-imposed corporate monitors -- that could cost Big Tobacco billions of dollars. Cigarette makers say many of the suggestions won't meet strict standards the appeals court established, and others simply mirror restrictions in settlements the companies reached with states in the late 1990s. "You're left with the spectacle of spending all this time and all this money to establish that the companies should do things they're already compelled to do." said William S. Ohlemeyer, vice president of Altria Group Inc., the parent company of Philip Morris USA. With no jury, U.S. District Judge Gladys Kessler will decide which penalties to impose if she agrees with the government's charge that cigarette makers conspired to deceive the public about the dangers of smoking. When the appeals court took money off the table, it said the civil Racketeer Influenced and Corrupt Organizations Act, or RICO, allows only for "forward-looking" remedies. Kessler called the Feb. 4 ruling a "body blow" to the government's case, and allowed the Justice Department to split off its presentation of potential penalties, creating a two-phase trial. The government started the remedies phase by calling biostatistics expert Timothy Wyant. Also on the Justice Department witness list are professors, anti-smoking advocates and Surgeon General Richard Carmona. On Monday, Wyant said an estimated 57 million people under age 21 became addicted to smoking between 1954 and 2000, and 13.4 million of them will likely die prematurely through 2050. Providing health care to this group will cost nearly $840 billion more than if they had never smoked, he said. In court filings, companies listed more than a dozen potential witnesses to counter the government, ranging from tobacco executives to an expert on English law. The late 1990s settlements, including the 1998 Master Settlement Agreement, revolutionized how tobacco companies do business by restricting how they advertise and promote products. dissolving industry organizations and hemming in lobbying. Some health advocates say those were broad-brush agreements, short on the type of detail included in a wide-ranging tobacco bill introduced by Sen. John McCain. R-Ariz., in 1997. 'Ilia I $516 billion proposal would have imposed tight advertising restrictions, a per-pack tax and regulatory oversight from the Food and Drug Administration. Cigarette companies say the government hasn't sufficiently tailored the proposed penalties to the RICO violations it alleges. 'l"he companies also say a strict interpretation of the appeals court's decision could bar the Justice Department from any measure designed to correct past misconduct. '"Once you start talking about correcting something, you're talking about a backward-looking, not a forward-looking, remedy." Altria Group's Ohlemeyer said. Backers of the government's case, however, say the addictive nature of smoking adds a twist to the argument. "Even if they stopped all RICO violations and never committed another one, the addiction goes into the future," said Bill Corr, executive director of the Campaign for Tobacco-Free Kids. Richard A. Daynard, president of the Tobacco Resource Control Merger activity boosts stocks Growth spurred by more than just a drop in crude futures NEW YORK (AP) Stocks pushed modestly higher for a second straight session Monday as falling crude oil prices and merger announcements encouraged investors ahead of the Federal Reserve's meeting this week. Investors welcomed the drop in crude futures, which extended their losses from last week, and hoped that the falloff would translate into lower gas prices during the summer driving season. A barrel of light crude was quoted at $49.65, down 7 cents, on the New York Mercantile Exchange. New merger activity - highlighted by the $5.1 billion buyout of high-end retailer Neiman Marcus Ciroup Inc. -- also encouraged Wall Street. Trading was expected to be light, however, before the Fed's decision on interest rates after its meeting on Tuesday. "I do think brokers want to put some client assets to work, but for many investors, there are just loo many question marks right now." said Michael Sheldon, chief market strategist at Spencer Clarke LLC. "We're seeing some broad-based gains. but there's just not a lot of buying on the upside." At midday, the Dow Jones industrial average rose 31.78, or 0.3 percent, at 10,224.29. Broader stock indicators were narrowly higher. The Standard & Poor's 500 to was up 1.15. or 0.1 percent, at 1,158.00, and the Nasdaq composite index gained l.SS. or 0.1 percent, to 1,923.53. The bond market fell as stocks rose, with the yield on the 10year Treasury note rising to 4.23 percent from 4.20 percent late Friday. The dollar moved higher against most major currencies, while gold prices fell sharply. Growth in manufacturing activity declined slightly more than expected in April, according to the Institute for Supply Management. The ISM's manufacturing index came in at 53.3, compared to 55.2 in February. Economists had expected a reading of 55. Any reading above 50 represents growth in activity. On a belter note, construction spending rose 0.5 percent in March, unchanged from the previous month but better than the 0.3 percent economists expected, the Commerce Department said. Neiman Marcus dropped $5.69 to $92.63 after the company announced its buyout agreement with two private equity firms. The deal, signaling further consolidation in the retail sector, valued the company at $100 per share. In other merger news, Verizon Communications Inc. slipped 18 cents to $35.62 after the Dow component sweetened its offer for MCI Inc. to $S.5 billion. 'Die new bid is still less than the $9.85 billion offered by Qwest Communications International Inc.. which lost 4 cents to $3.38. MCI fell 19 cents to $26.34. After climbing sharply late Friday, shares of Morgan Stanley tumbled $3.47 to $49.15 after the company's board, in an emergency weekend meeting, endorsed embattled Chairman and Chief Executive Phil Purcell. The board made changes to make it easier to oust Purcell. but did not dismiss him or strip him of the chairman title, as some investors had expected. American International Group Inc. said it will delay filing its annual report a second time, and that the accounting adjustments and restatements necessary would wipe out $2.7 billion of the company's net worth. Investors, however, saw the announcement as a sign that the embattled ensurer was starting to right itself, and AIG surged 6.6 percent, or $3.41. to $54.26. Advancing issues outnumbered declincrs by nearly 3 to 2 on the New York Stock Exchange, where volume came to 634.64 million shares, compared to 765.15 million at the same point on Friday. The Russell 2000 index of smaller companies was up 2.46, or 0.4 percent, at 581.84. Overseas, Japan's Nikkei slock average fell 0.06 percent. In afternoon trading, Germany's DAX index gained 0.94 percent and France's CAC-40 rose 0.69 percent. Markets in London were closed for a bank holiday. What's Out Your Back Door? LINDA BLONSLEY, J.D. EXPERT GRANT WRITING, PROPOSAL DEVELOPMENT, NON-PROFIT BOARD TRAINING &c MORE 435.658.0506 www.thegrantslioppe.com Center at Northeastern University in Boston, s;ik! il" the companies1 public statements led to the addiction of millions ol" Americans, the door should be open lo a range of options. "'lliere's no particular reason lo limit the DO.T's remedies, assuming Judge Kessler accepts the liability part o! the government's case." he said. A Justice Department spokesman had no comment on the government's remedies proposals. Defendants in the lawsuit are: Philip Morris and its parent, Altria Group Inc.; R.J. Reynolds Tobacco ('o.; Brown & Williamson Tobacco Co.; British American Tobacco Ltd.; Lorillard Tobacco Co.: Liggett Ciroup Inc.; Counsel for Tobacco Rescarch-U.S.A.; and the Tobacco Institute. N O W O N D E R • G E S T J I M D H E I T P E O P L E W H E N S A Y Y O U S A Y TCHAIKOVSKY. Park City Friends of the Library Annual Membership Luncheon Tuesday May 10" 1 n a m at Deer Valley Silver lake Lodge Featuring Speaker Robert Kirby Editor, Correspondent, Columnist for the Salt Lake Tribune, Author of 6 books of demented humor & 2 novels; his most recent release End of Watch: Utah's Murdered Police Officers, 1858 - 2003 Tickets are $35 and includes membership to Park City Friends of the Library For information and to purchase tickets please call the Park City Library 615.56OO Tickets must be purchased by May 5th 2-FOR-l RECEIVE A COMPLIMENTARY ENTREE WITH A PURCHASE OF ANOTHER ENTREE OF EQUAL OR GREATER VALUE. nye/vatio/w suggested Easy Street Brasserie NEW MUD SEASON Opening Hours: Monday & Tuesday closed Lunch now being served Saturday & Sunday from 11:30 am Patio opens in good weather N e w Menu in the Bar Bohe*me coming soon Featuring Hot Stone Cooking FOR RESERVATIONS CALL Mark Sletten, Mobile: 'M5.640.0930 Mark & Robin Sletten invite you to consider extending your Park. 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