THIS MATTER came before the undersigned Special Master for hearing on April 21, 1997 as a result of Plaintiffs' March 21, 1997 Motion to Compel Production by Defendant, Tobacco Institute of Certain Documents Relating to Defendant, Tobacco Institute's Youth Programs Being Withheld Under Claims of Attorney-Client Privilege. After having considered argument of counsel, the motion and exhibits attached thereto and having reviewed in-camera the documents which are the subject matter of the motion, the following Report and Recommendation is hereby submitted: ...

Eddystone, Pennsylvania, -- U.S. smokers will consume fewer cigarettes because of per-pack tax increases in 18 states and New York City, according to a forecast by DRI-Wefa Inc. That positive health news may have negative implications for investors in tobacco bonds. The forecasting firm cut its cigarette consumption estimate for this year by 2 billion, to 403 billion, and for next year by 5.6 billion, to 392 billion. States from Connecticut to Hawaii have considered tobacco levies and other ``sin taxes'' on gambling and alcohol to help eliminate record budget gaps. ...

As more people light up, some US officials are saying cigars should abide by the same rules as cigarettes. Over the past five years, the cigar industry has told the American public to light up a cigar to celebrate good times. The media often picture athletes, celebrities, and politicians puffing away on giant stogies at parties or awards ceremonies. Cigar bars have cropped up around the country. Now, with sales booming, the cigar is under attack. ...

Many people concerned about smoking may be surprised to learn that they and their taxes not only help to subsidize the tobacco industry, but actually help it to run major deceptive ad campaigns. This occurs because the billions of dollars spent each year to advertise cigarettes, or to influence public policy on cigarettes, are tax deductible. Therefore, when the tobacco giants deducts those costs on their income taxes, taxpayers -- including the great majority who are nonsmokers -- are forced to pay more; directly subsidizing the ads and the industry. ...

States are losing millions in tax dollars as more people buy cigarettes from online vendors who routinely ignore a federal law requiring them to report sales to local regulators, a new report says. The trend could undercut efforts by cash-strapped states to raise revenues by hiking cigarette taxes. In Massachusetts lawmakers recently approved a 75-cent hike on a pack of cigarettes, a move officials hope will bring in an extra $190 million annually. In Illinois, the state boosted cigarette taxes by 40 cents to a total of 98 cents a pack. ...

A former inmate at the Santa Fe County jail has filed a lawsuit claiming he was subjected to "cruel and unusual punishment" when he was forced to breathe the secondhand smoke of other prisoners' cigarettes. The county jail's former manager, Cornell Corrections, is named as a defendant in the suit. A spokesman for Cornell said Monday he could not comment directly on the lawsuit because he hasn't seen it. ...

The latest incriminating document showing the tobacco industry's targeting of youth was revealed in the Florida medicaid case. Following are excerpts from an Associated Press report on the memorandum: Attorneys for the state say they have a tobacco company memo proposing a cigarette that smelled like root beer or fruit juice, evidence the industry targeted underage smokers. ...

Like cigarettes and matches, burned-out butts and sand-filled ashtrays, the connection was so obvious nobody noticed - until recently. Now, antitobacco activists have joined with coastal environmentalists to battle the problem of cigarette butts fouling beaches, play areas and estuaries. ...

In the latest secret tobacco industry document to be uncovered and released to the public the detailed procedure Brown & Williamson appears to have used to conceal documents is exposed. Following are excerpts from the Washington Post report on the memorandum: The Brown & Williamson Tobacco Co. appears to have had a detailed procedure for passing sensitive research documents through attorneys to protect the cigarette maker against lawsuits, according to a 1985 company memo. ...

On Valentine’s Day they handed out long-stemmed roses. On Independence Day they threw a free bash on a yacht docked in New York Harbor. And last winter they hit chilly city streets with hot coffee. They are the Lucky Strike Force and they want you. ...