STATE OF MINNESOTA AND BLUE CROSS AND BLUE SHIELD OF MINNESOTA,
PLAINTIFFS,

V.

PHILIP MORRIS, INC., ET. AL.,

DEFENDANTS.

TOPIC:          TRIAL TRANSCRIPT
 TRANSCRIPT OF PROCEEDINGS
DOCKET-NUMBER:  C1-94-8565
VENUE:          Minnesota District Court, Second Judicial District, Ramsey County.
YEAR:           March 30, 1998
 A.M. Session

JUDGE:          Hon. Judge Kenneth J. Fitzpatrick, Chief Judge

THE CLERK: All rise. Ramsey County District Court is again in session, the Honorable Kenneth J. Fitzpatrick now presiding.

 (Jury enters the courtroom.)
    THE CLERK: Please be seated.
    THE COURT: Good morning.
 (Collective "Good morning.")
    THE COURT: Counsel.
    MR. WEBER: Thank you, Your Honor.
    Dr. Townsend.
    DAVID E. TOWNSEND called as a witness, being previously sworn, was examined and testified as follows:
BY MR. WEBER:
    Q. Good morning, Dr. Townsend.
    A. Good morning.
    MR. WEBER: Good morning, ladies and gentlemen.
 (Collective 'Good morning.")
    Q. Dr. Townsend, if you remember where we were last Friday when we broke, you had identified two methods of design or engineering, one selective reduction, one general reduction.
    A. That's correct.
    Q. And do you recollect that we had also talked about the 1989 Surgeon General's report, a number of compounds that had been identified over time?
    A. That's correct.
    Q. And some of those compounds had been identified as potentially hazardous; correct?
    A. Yes.
    Q. Now, did the selective reduction theory and design efforts focus on compounds that had been claimed to be hazardous in cigarette smoke?
    A. It did. That was the -- the center of selective reduction.
    Q. What was Reynolds' first major effort in the selective- reduction area?
    A. It was in the area of trying to reduce or eliminate benzpyrene.
    Q. Is that also referred to as shorthand as BaP?
    A. That's correct.
    Q. What is BaP, doctor.
    A. BaP or benzpyrene is a polycyclic aromatic hydrocarbon, it's a multi- ring aromatic organic compound.
    Q. And is it present in cigarette smoke?
    A. Yes, it is.
    Q. And in what quantities, doctor?
    A. Well we know today that it's present in cigarette smoke at the nanogram level, which again the billionths-of-gram-per- cigarette level.
    Q. Based on your background in chemistry, is BaP present in other things we eat and drink as well?
    MR. CIRESI: Objection, Your Honor, it's irrelevant.
    THE COURT: No, you may answer.
    A. It is present in a number of other things, agricultural products, from exposure to air pollution, it's present as a result of pretty much any combustion system, including diesel exhaust, automobile exhaust. So there are a number of places that BaP is found.
    *2 Q. Roasted foods?
    A. Absolutely.
    Q. How does the BaP level in smoke compare with BaP levels found in other things that people come in contact with?
    MR. CIRESI: Objection, irrelevant. There's no qualifications for this witness to testify to biological significance.
    THE COURT: Sustained.
BY MR. WEBER:
    Q. Without commenting on the biological significance, but purely as a matter of chemical analysis, how does the BaP level in smoke compare with the BaP level in other things that people eat and drink, doctor?
    MR. CIRESI: Objection, irrelevant.
    THE COURT: You may answer that.
    A. The level of BaP in cigarettes compared to, say, for example, a charcoal-broiled steak, is actually very interesting. A charcoal-broiled steak, it turns out, when the fat drips from a steak on the grill, the fat can land in the -- in the hot coals. The fat then undergoes -- undergoes pyrolysis, similar to what we were talking about Friday, and -- and can actually form benzpyrene, which is then carried back up to the steak and deposited on the steak.
    Typical levels of BaP in a charcoal-broiled steak are roughly the equivalent of about 600 cigarettes' level of BaP.
    Q. Now Dr. Townsend, how is it that BaP became the focus of the first major effort at selective reduction at Reynolds?
    A. I think there were two major reasons that BaP was the first focus for selective reduction. First of all, benzpyrene had previously been known to be carcinogenic; that is, it caused excess tumors in mouse skin- painting studies when applied as a neat solution. The second reason that benzpyrene was focused on was because it was thought to be present in -- from pretty much any combustion system, diesel exhaust, burning leaves, and probably a burning cigarette. So it certainly was the focus because of both of those reasons.
    Q. Now what did the researchers at Reynolds do regarding selective reduction and benzpyrene?
    A. Well we did three -- three major things. The first thing was to determine if in fact benzpyrene was present in cigarette smoke. The second -- and we did determine that, yes, it was present. The second thing was to determine the level, and we found that the level of benzpyrene in cigarette smoke is typically in the -- in the nanogram range, as I've already said. And then the third major thing we tried to do was to reduce or eliminate the levels in -- in mainstream cigarette smoke.
    Q. Now doctor, before we get into those methods of attempting to reduce or eliminate, I want you to assume that plaintiffs have raised a question in this case about whether it was known outside of the cigarette companies and in the public literature as to whether BaP was presented in smoke, and that in this regard plaintiffs referred to the document that's at tab eight, which is PX12418, an R. J. Reynolds document which is in evidence.
    A. You said tab eight?
    Q. Tab eight. Memorandum of Dr. Rodgman's dated November 2, 1959. Do you see that?
    *3 MR. CIRESI: The exhibit, please.
    MR. WEBER: I'm sorry, I thought I said that. PX12418.
    A. I have it.
    Q. And also a Brown & Williamson document marked PX13555, which is at tab nine.
    A. I see that also.
    Q. All right. Now the R. J. Reynolds document is dated November 2, 1959; correct?
    A. That's correct.
    Q. And let me just show the cover sheet on this for the ladies and gentlemen of the jury so they can recollect that document.
    And then for the Brown & Williamson document marked 13555, that's the one that on page nine said that the Brown & Williamson lab until the past had made a partial isolation and identification. Do you see that?
    A. Yes, I see that.
    Q. Now let me ask you this: Do you know whether the presence of benzpyrene in smoke had been reported in the popular and scientific literature prior to the dates of these memoranda?
    MR. CIRESI: Your Honor, I'm going to object to counsel's characterization of the issue as to why it was raised. It's a misstatement of the record.
    THE COURT: All right. You should rephrase your question, counsel.
    MR. WEBER: All right.
BY MR. WEBER:
    Q. Let -- let me ask this: Do you know whether in the popular or scientific literature it had been reported -- the presence of benzpyrene in smoke had been reported in 1950?
    MR. CIRESI: Objection, no foundation on the part of this witness.
    THE COURT: Okay. You may answer that.
    A. I do know that, and it was reported in Reader's Digest in 1950.
    Q. Could you turn to tab 10 of the notebook. That's Exhibit GL000089.
    A. Yes, sir.
    Q. And can you identify that as a January 1950 Reader's Digest article entitled "HOW HARMFUL ARE CIGARETTES?"
    A. That's correct, that's what it is.
    MR. WEBER: Your Honor, I'd move the admission of that under 902(6) as self- authenticating and under 803(16) as an ancient document.
    MR. CIRESI: It's hearsay. If he's introducing it for notice, I have no objection to that, Your Honor.
    MR. WEBER: Well under the rule, as the court and Mr. Ciresi know, 803(16) eliminates the hearsay as an ancient document. It's an exception to the hearsay rule explicitly.
    MR. CIRESI: No, it's not an exception; you still need the predicate. It's an ancient document with respect to a party's statements. We have no objection to this on notice. It's self- authenticating, Your Honor, but it's -- we have no objection on notice.
    THE COURT: All right. It will be received on notice, GL000089.
BY MR. WEBER:
    Q. Dr. Townsend, could you turn to the last paragraph. It starts on page one. And just so we see, Reader's Digest, and the date of this is January 1950, and the article is entitled "HOW HARMFUL ARE CIGARETTES?" Could you start this paragraph and read that at the bottom of page one over to page two.
    A. Yes. "What is -- What is this substance which we breathe into our mouths and lungs in such stupendous clouds? It contains a number of ominous-sounding chemicals. Medical men, however, have not proved a case against them. But two of the chemicals are under grave suspicion: benzo-pyrene, which chiefly affects the respiratory tract, and nicotine."
    *4 Q. All right. Now this article appeared nine years before Dr. Rodgman's document?
    A. That's correct.
    Q. And two years before the B&W document we just referenced?
    A. That's also correct.
    Q. With reference to PX12418, which is that November 1959 memorandum by Dr. Rodgman we just referred to, let me ask you whether the same month of that same year there was another Reader's Digest article dealing with polycyclic aromatic hydrocarbons and smoke?
    A. There was.
    Q. Would you turn to page -- strike that -- tab 11, please, in your notebook. That is BYT000404.
    A. I have it.
    Q. Can you identify that as a November 1959 Reader's Digest article entitled "THE SEARCH FOR 'SAFER' CIGARETTES?"
    A. That's correct.
    MR. WEBER: Your Honor, I'd move that under 902(6) and 803(16) again.
    MR. CIRESI: Your Honor, again under notice we have no objection.
    THE COURT: All right. Court will receive BYT000404.
    MR. WEBER: Your Honor, can I approach at side-bar just for a moment?
    THE COURT: We had such a nice start this morning.
    MR. WEBER: This will be a brief one, I promise you.
    THE COURT: All right.
    MR. WEBER: Thank you.
BY MR. WEBER:
    Q. With reference to BYT000404, you've reviewed that document?
    A. Yes.
    Q. Can you turn to the first full paragraph on page 44 of that article where it's entitled "The Coming Chemistry."
    A. Yes.
    Q. Could you read that paragraph for us, please, doctor.
    A. Yes. "The Coming Chemistry. The carcinogenic, parenthesis, (cancer- causing) factor in cigarette smoke is much less a mystery than it was a few years ago. Scientists are convinced that the primary carcinogens are higher polycyclic hydrocarbons formed by the combustion of tobacco at high temperature, parenthesis, (about 880 degrees Centigrade in the cigarette ember). They have identified eight carcinogenic polycyclics in tobacco smoke, and are on the trail of others."
    Q. Now is benzpyrene a higher polycyclic hydrocarbon?
    A. Yes, it is.
    Q. Now this says that there have been identified eight carcinogenic polycyclics; correct?
    A. That's correct. That's what it says.
    Q. In Dr. Rodgman's memorandum in the same month, November '59, how many carcinogenic polycyclics does Dr. Rodgman say are known?
    A. In the 1959 memorandum of Dr. Rodgman, he identified eight -- or he said that there were eight known.
    Q. So how does the number identified by Dr. Rodgman compare to the number in Reader's Digest, both in 19 -- in November 1959?
    A. It's the same.
    Q. Now by the way, does Dr. Rodgman's memorandum we've been referring to, PX12418, deal with any particular design or research engineering?
    A. Well it does, and he talks about attempts to try to remove or reduce benzpyrene, he talks about some cigarette construction issues.
    Q. Does that memorandum refer to a method of potential extraction?
    A. Yes, it does on page two, particularly under paragraph number one.
    *5 Q. Okay. We'll get to a discussion of the extraction method later.
    At this point, Dr. Townsend, I'd like you to turn to another of Dr. Rodgman's memorandum at tab 12, that's PX18187, that's already in evidence, and I'd like you to turn to page 13, please. And 18187, just to remind everyone, is a Dr. Rodgman memorandum, "THE SMOKING -- A CRITICAL AND OBJECTIVE APPRAISAL OF THE SMOKING AND HEALTH PROBLEM." Do see that?
    A. Yes, sir.
    Q. Could you turn to page 13 of that document, please.
    A. Okay.
    Q. I want you to assume there has been some testimony earlier in this case with respect to some of the statements on page 13, and I'd like to ask you this question. It says, "Members of the Research Department -- this Research Department studied in detail cigarette smoke composition," then a number of citations; correct?
    A. Yes.
    Q. Then it goes on to say "Some of the findings have been published," more citations. Then, "However, much data remain unpublished because they are concerned with carcinogenic or cocarcinogenic compounds." Do you see that?
    A. I see that.
    Q. After you reviewed this memorandum, did you check the citations there to see whether that information was or was not in the scientific literature?
    A. After I saw this statement on page 13, I did go back to each of the references cited there after that phrase "much of the data remains unpublished because they're concerned with carcinogenic or cocarcinogenic compounds," I think there's something like 17 different references, or thereabouts. What I found was that there were some papers in that group of references that speak to identification of constituents in smoke, particularly polycyclic aromatic hydrocarbons and a class of compounds called phenols. There were also a number of --
    A number of these references dealt with attempts to find out how -- or the precursors to the formation of polycyclic aromatic hydrocarbons, what those precursors are and how polycyclics could be formed. So it was more of a basic research study. Some of these references also dealt with analytical -- development of analytical test methods. Some of these references also dealt with attempts at selective reduction through certain filter additives. So there was some information there that did speak to -- to identification of constituents. And a lot of these references deals with things other than that, including some proprietary or patentable information like a selective filtration attempts.
    Q. Now if you could turn to page six, please.
    MR. CIRESI: Excuse me, excuse me, counsel. Could we have when that was cited, that -- that document?
    MR. WEBER: The transcript reference?
    MR. CIRESI: No, no, the document, when that was given notice of. Which letter?
    MR. WEBER: I'm not sure which letter, whether it's in our letter or yours.
    MR. CIRESI: Oh, no, no, the one that you gave notice of, 18187. Can you tell us?
    *6 MR. WEBER: You want --
    Does Your Honor want that issue addressed now, or --
    MR. CIRESI: Yes. Because I don't believe it was -- notice was given of that document. I just want to know which one. I may be mistaken.
    MR. WEBER: It was designated by the plaintiffs, that's why.
    MR. CIRESI: Oh. So you did not designate that document.
    MR. WEBER: No. We did it after you designated it.
    MR. CIRESI: May we have, then, Your Honor, the foundation for the statements just made by the witness, what he did, where he looked? Otherwise I'm going to move to strike that. There was no notice given on this document by the defense.
    MR. WEBER: Your Honor, the parties have through their designation process a number of times used documents designated by the other side in this. This is a -- this is a red herring issue in the extreme.
    MR. CIRESI: Only when we say we're going to use that. That's the rule. Now all I want is the foundation for the doctor's testimony as to what he did, where he looked, which documents he looked at.
    THE COURT: Well we'll give you a chance to cross-examine him on that, counsel.
    MR. CIRESI: All right.
BY MR. WEBER:
    Q. Now Dr. Townsend, could you turn to page six of this document.
    A. Yes.
    Q. And is there a footnote there?
    A. There is. And --
    Q. Could you deal with the significance of that footnote and the text to which it refers.
    A. I'll be happy to.
    I said as I looked at the references that are referred to on page 13, some of those references did refer to the identification of polycyclic aromatic hydrocarbons. In looking through those constituents I found that -- and -- and referring back to the entire memo and reading the entire memo thoroughly, I found that Dr. Rodgman on page six did refer to every one of those polycyclics as being previously reported by Davies. And that's reference 27, it's on the -- it's -- and it's referred to in the footnote at page six. He says, "This author discusses all the polycyclic hydrocarbons except cholanthrene."
    I dug a little further and found that Dr. Rodgman in fact presented the identification of cholanthrene at an American Chemical Society meeting in Atlanta a few years later.
    There was another group of compounds referred to in the identification back on page 13, and those were phenols. All of the constituents that were phenols that were reported were also previously identified, mostly by Van Duuren, except for two, and there were two compounds that Dr. Rodgman identified for the first time and it was eugenol and iso-eugenol. I found, after digging a little further, that Dr. Rodgman did in fact publish that in the peer- reviewed journal in 1964, two years after this memo. He also presented it at a Tobacco Chemists Research Conference in 1964.
    Q. Now let's return, Dr. Townsend, to selective reduction, and could you turn to tab 13, Exhibit 2386.
    A. Yes.
    Q. And let me ask you whether that's a chart that would assist your testimony regarding the selective reduction technique?
    *7 A. It is.
    MR. WEBER: Your Honor, I would move X2386 for demonstrative purposes.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive X2386 for demonstrative -- for illustrative purposes.
BY MR. WEBER:
    Q. Now Dr. Townsend, does this chart relate to techniques of lowered or reduced BaP by R. J. Reynolds?
    A. Yes, it does.
    Q. Could you start at the top and discuss each of these briefly.
    A. I'll be happy to. And before I start it, let me say that if -- if one wants to -- to determine or identify ways to reduce or eliminate benzpyrene, there are really two general approaches that can be taken. First of all, benzpyrene is not present in tobacco in any appreciable quantities. It's generated when the tobacco burns. So one approach to reducing benzpyrene may be to prevent the formation of benzpyrene, somehow interrupt that synthesis, that pyrosynthesis. Another approach could be to selectively remove it after it's formed. These different techniques here speak to one or the other.
    The first is the use of tobacco additives, and again that's to the former case, to prevent the formation of benzpyrene. What we thought, and -- and actually still think about the mechanism of formation, is that -- is that when tobacco's burned, there are free radicals generated and cyclized to form this polycyclic aromatic hydrocarbon, and if we could somehow stop that cyclation, we could reduce the level of benzpyrene. Reynolds, and I think a number of other tobacco companies and others outside the industry, have looked at a variety of metal nitrates including palladium, platinum, magnesium, manganese, other oxides, to try to change the burning temperature of the cigarette and reduce the extent of this cyclization reaction. So there have been a variety of tobacco additives examined.
    Q. Are there issues raised by the addition of metal additives to cigarettes?
    A. Well I think there are a number of issues. Some metals, for example, might form carbonyls and -- and are -- are reasonably volatile and can be delivered in the smoke as -- as metal carbonyls, which for some metals those compounds are of -- are quite toxic. I think there are a number of issues. There are also some issues with the anion as well; for example, nitrate can decompose and form a lot of nitric oxide, among other things.
    The second approach is different filter materials, and again that's allowing the benzpyrene to form and then somehow, through the use of alternate filters, try to selectively remove it from the smoke.
    The third approach is to use different filter additives. If we took a conventional cigarette filter and placed some compound or chemical in the filter that can selectively absorb benzpyrene, that might be another approach. Now we thought that it was -- I think scientists at the time, back in the '50s, thought that was a pretty good approach. I think they didn't understand the dynamic nature of cigarette smoke to the extent that we know now today, because benzpyrene and most other polycyclics are not volatile, and so the use of filter additives or alternate filter materials doesn't necessarily or won't necessarily effect a selective reduction.
    *8 The use of different cigarette papers to prevent the formation, turns out that examination of more- porous cigarette papers did have a small influence on the benzpyrene yield, and part of that was because of another technique called air dilution, which we'll talk about later.
    And then finally tobacco extraction. Since benzpyrene is formed during the burning of the tobacco, the question is, well, what are the precursors that, when heated, form benzpyrene? Scientists at Reynolds and -- and at other laboratories have looked extensively using radiotracers, done extensive radiotracer studies to try to define what those precursors are. We did find that, as a result of -- of our work, that long-chain hydrocarbons, waxes, and in particular solanesol and others, are precursors to benzpyrene formation. So the idea with extraction is to -- is to use solvents to try to extract those precursors, reduce the level of precursors, so that when the tobacco burns, you don't generate as much benzpyrene.
    Q. Did Reynolds undertake work to attempt to develop an extraction process which could be commercialized?
    A. We did. We conducted extensive work on the extraction approach.
    Q. Did extraction in the end work?
    A. Technically it did. We found that once we had extracted tobaccos with solvents, and we looked at a lot of different solvents, we found that the -- and -- and made cigarettes with the extracted tobacco, we found that the level of benzpyrene was in fact lower. So technically it worked. Practically, there were a number of issues, number of problems.
    Q. Could you identify those for us.
    A. Well there were -- there were several. The first is these extracted tobaccos were really quite fragile, and it was very difficult to make a -- make them into a tobacco rod because they would break apart, they were so fragile.
    Another reason, and -- and one of the most important reasons, is that the taste characteristics of those cigarettes were really quite, quite different. We believed that they had a very unacceptable taste characteristic.
    Another reason is that we found, when we actually did detailed smoke chemistry on these -- on these cigarettes, we did in fact find benzpyrene was down, but we also found that some other constituents like phenols were elevated as a result of this extraction. So it was -- it was an unintended consequence of the extraction, really.
    And then we also had a difficult time removing the -- the solvent from the tobacco. There were still fairly high levels of solvent in the extracted tobacco.
    Q. Were Dr. Wynder and others outside the tobacco industry working on extraction as well?
    A. They were. A number of scientists were, outside the industry.
    Q. Was the scientific experience of others outside the industry such as Dr. Wynder different from the experience at R. J. Reynolds with respect to the extraction process?
    A. No, I think their experience was just as ours.
    *9 Q. Did the Surgeon General later express an opinion regarding whether or not extraction was a practical or realistic method?
    A. He did. In the 1979 report the Surgeon General indicated that extraction of tobaccos to reduce benzpyrene was of academic interest only.
    Q. Did there come a time when Dr. Wynder and others began to express doubts about the practical significance of the BaP theory?
    A. That's correct. In -- in the late '50s, Dr. Wynder and -- and some other scientists began questioning whether benzpyrene was the problem with cigarette smoke, and in particular Dr. Wynder expressed that once we had identified the level --
    MR. CIRESI: Excuse me, Your Honor, I'm going to object to the hearsay on the part of this witness.
    MR. WEBER: If I just may be heard, it's not hearsay, Your Honor, it's for statements in the literature and the effect on the research and development issue.
    THE COURT: Then you better refer to the literature.
    MR. WEBER: All right.
BY MR. WEBER:
    Q. Could you turn to tab 16, Exhibit CE000084.
    A. Yes, sir.
    Q. Is that an article by Dr. Ernst Wynder called "TOWARDS A SOLUTION OF THE TOBACCO-CANCER PROBLEM," published in January 1957 in the British Medical Journal?
    A. It is.
    Q. Do you rely upon this article regarding the significance of the amount of BaP in tar and regarding selective reduction of BaP?
    A. Yes.
    MR. WEBER: Your Honor, I'd move the admission of that under 803(18).
    MR. CIRESI: No objection, Your Honor.
BY MR. WEBER:
    Q. Now if you could turn to tab 17, Dr. Townsend, is that a blown-up quote from Dr. Wynder's article?
    A. Yes, it is.
    Q. And that is Exhibit 238 -- X2388.
    MR. WEBER: Your Honor -- oh, I'm sorry, I wasn't looking. I'm sorry.
    THE COURT: I'm sorry, I'm having trouble with the mike up here. I'm trying to resolve it.
    MR. WEBER: Okay.
    THE COURT: Can you wait just a moment?
    MR. WEBER: I'm sorry, I didn't notice you were talking.
    THE COURT: I just want to make sure the record reflect CE000084 is admitted into evidence. Go ahead, counsel.
    MR. WEBER: Okay. Your Honor, let me start this again because I may have been looking at my exhibits, --
    THE COURT: Go ahead.
    MR. WEBER: -- missed -- missed the fact that you were consulting with the clerk.
    THE COURT: No, I think that was my fault.
    MR. WEBER: Well I should have been paying better attention.
BY MR. WEBER:
    Q. At X2388 at tab 17, is that a quote that you have blown up from Mr. Wynder's article that was just admitted into evidence?
    A. Yes, it is.
    MR. WEBER: Your Honor, I'd move X2388 for demonstrative purposes.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive X22 -- 2388, 2388, for illustrative purposes.
BY MR. WEBER:
    Q. All right. And is that --
    Could you read that quote from Dr. Wynder's article.
    A. Yes. And this is, again, from the British Medical Journal 1957. Dr. Wynder says, "The benzopyrene content of cigarette tar is not more than 2 parts per million, which, according to our experiments is not sufficient to produce the type of activity noted in our animals painted with tobacco tar."
    *10 Q. Dr. Townsend, could you turn to the right and find the 1964 Surgeon General's report. Not in -- not in the binder there. I think it's on the shelf there. That is in evidence as PX3825.
    A. The 1964?
    Q. Should be up there.
    A. Okay. I see it.
    Q. And could you turn to page 144.
    A. Okay. I'm there.
    Q. And could you read this paragraph going over to the next page.
    A. Yes. It's at the bottom of the page.
    Q. And just for the record, it's from page 144 and 145 of the 1964 Surgeon General's report.
    A. "Tobacco smoke contains many carcinogenic polycyclic aromatic hydrocarbons, parenthesis, (Table 2, Chapter 6). Benzo(a)pyrene is present in much larger concentrations than is any other carcinogenic polycyclic hydrocarbon. The inability to account for the carcinogenicity of the tobacco products, except to a very minor degree, by the amount of benzo(a)pyrene present was unanticipated. Both Druckrey (reference 92) and Wynder (reference 372) emphasized that the benzo(a)pyrene concentration of various tobacco and smoke preparations is only sufficient to account for a very small part of the carcinogenic -- carcinogenicity of these materials. One hypothesis suggests that promoting agents present in tobacco and tobacco smoke, such as various phenols, enhance the potency of the carcinogenic hydrocarbons so as to account for the biological activity of the tobacco products. Further, possible synergism between low levels of the several known carcinogens in the tobacco condensates and extracts may also enhance the carcinogenic potency."
    Q. Now, it refers there to a hypothesis that might involve chemicals called phenols; correct?
    A. That's correct.
    Q. Did R. J. Reynolds begin work examining the hypothesis with respect to phenols?
    A. We certainly did. And -- and again, the -- the hypothesis is that if there's insufficient benzpyrene and polycyclic aromatic hydrocarbons to account for the mouse skin-painting results, then there must be some other cocarcinogens or promoters that will enhance the activity so that together they may account for the mouse skin-painting results.
    We did, in fact, evaluate that hypothesis very thoroughly, went in and tried to determine if there are phenols present in the smoke. And there are a number of phenols. We tried to identify or - - identify those, quantitate or determine how much of those phenols were present, and then sought ways to reduce or eliminate those phenols.
    Q. Now are phenols chemicals that are unique to cigarette smoke, Dr. Townsend?
    A. No, they are not. They are in a variety of naturally- occurring materials: fruits, vegetables. Phenols are also used in a number of consumer products like Chloroseptic and throat lozenges and a number of things.
    Q. Now at what levels did R. J. Reynolds find phenols in cigarette smoke?
    A. Well there -- there are varying levels. There are -- there are a few phenols that are present in the microgram-per- cigarette range, so that would be a millionth of -- a millionth of a gram per cigarette; there are a number of phenols that are present in the nanogram range, again, a billionth of a gram per cigarette.
    *11 Q. Can you describe for us what techniques to selectively reduce phenols were examined at R. J. Reynolds, some of the major efforts.
    A. I think -- I'd be happy to. I think we -- we approached the phenol reduction in very much the same way as we did the benzpyrene. We tried to understand how phenols were generated. We conducted some basic research using radiotracers to try to determine what the precursors are, and we found that lignin, the natural backbone of the tobacco, biopolymers like lignin, were the precursors or most of the precursors. We tried to extract or somehow prevent the formation of phenol. We looked at filter additives, we looked at special types of filters; we looked at tobacco additives, again, placing a number of constituents on the tobacco to try to interrupt the formation of -- of phenols. So we pretty much followed the same -- the same approach that we did for benzpyrene.
    Q. Did any of the techniques that you investigated meet with success with regard to reducing phenols?
    A. I think there was -- there was some success. What we found is the more volatile phenols can be selectively removed by -- by filters if the filters are made from cellulose acetate. The -- the selective removal of phenols is also enhanced if the cellulose acetate filters are plasticized with certain polar compounds, like triacetin, or in the case of one of our competitors, they used carbowax. So I think there were -- selective filtration of the more volatile phenols certainly was accomplished, at least to a degree.
    Q. Now once --
    If once you discovered that filters of cellulose acetate particularly treated with triacetin or carbowax, could selectively reduce these phenols, did you incorporate that -- did Reynolds incorporate that into its product?
    A. Well it was already in the products in the market. It was sort of after the fact. These -- these techniques or these construction variables were in the market. After the fact we learned that they did selectively reduce phenols, the volatile phenols. I'm --
    Q. Now did there come a time when the scientific community began to raise doubts about the phenol hypothesis that was expressed in the 1964 Surgeon General's report we just referenced?
    MR. CIRESI: Object to the form of the question. There's no foundation.
    THE COURT: You may answer that.
    A. I think there was a time, certainly, that the scientific community began questioning this -- this theory, and that's again the initiation by polycyclics and the promotion by phenols. And there -- there were a number of major questions, one is that scientists were beginning to learn that some phenols were thought to be tumor inhibitors, not promoters. They also found that phenols in fact are very water soluble and are -- are actually absorbed fairly rapidly in the oral cavity. And so there's -- there's a lot of -- there was a lot of questions about the theory at the time.
    Q. Could you turn to tab 19, which is Exhibit AZ000804. Do you have that, doctor?
    *12 A. Yes.
    Q. Can you identify that as an article from the Journal of the National Cancer Institute in 1971 by Van Duuren, et al?
    A. It is. This is an article by Van Duuren.
    Q. And the Journal of the National Cancer Institute is a highly respected journal?
    A. Yes, it is.
    Q. And is this article one on which you rely with respect to information, which you and others reasonably rely, with respect to information regarding phenols and cigarette chemistry?
    A. Yes.
    MR. WEBER: Your Honor, I'd move the admission under 803(18) of AZ000804.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive AZ000804.
BY MR. WEBER:
    Q. Now, could you start out on page 236 of that --
    Let me show the title page first, if I could, doctor, article entitled  "Cigarette Smoke Carcinogenesis: Importance of Tumor Promoters;" correct?
    A. Yes.
    Q. And these are by scientists at NYU?
    A. Yes.
    Q. Now if you could go to the second page, upper left-hand column, and read that first full sentence starting at the top of the second page.
    A. Beginning with "These experiments...?"
    Q. Yes.
    A. "These experiments convinced us that tobacco tar is primarily a tumor- promoting agent and that the role of benzo(a)pyrene," also known as Ba -- or sorry, "paren, (BaP), as well as other carcinogenic hydrocarbons acting as cocarcinogens and/or initiators, is not necessarily of prime importance in tobacco carcinogenesis."
    Q. Now could you turn in this same article to page 239, Dr. Townsend. I'd like you to read that first paragraph under "DISCUSSION."
    A. Okay. "Although carcinogens, cocarcinogens, and tumor- inhibitory agents in cigarette smoke condensate have been studied extensively, the chemicals responsible for the known mouse skin carcinogenicity of tobacco tars remain largely unknown. This is mainly due to the complex chemical nature of tobacco tars, the resultant effects of one type of agent on another, and the possibility that a single chemical can have multiple biological effects. Earlier, (reference 12) we showed that some noncarcinogenic or weakly carcinogenic aromatic hydrocarbons which are cigarette smoke components can function as initiating agents in two-stage carcinogenesis. These agents were earlier regarded as irrelevant in tobacco carcinogenesis. We have also found that phenol, which is a weak tumor-promoting agent, is indeed an inhibitor of tumorigenesis when applied simultaneously with BaP; another example is the otherwise biologically inactive tobacco component, rutin, which is also an inhibitor for BaP carcinogenesis in mouse skin (reference 13). The experiments described in this report were carried out to unravel some of these effects."
    Q. Now, let me take you back to that sentence down at the lower left-hand column which said that "we have also found that phenol, which is a weak tumor- producing agent -- promoting agent, is indeed an inhibitor of tumorigenesis when applied simultaneously with BaP." What does it mean to be an inhibitor of tumorigenesis?
    *13 MR. CIRESI: Excuse me, Your Honor, there's no foundation for this witness to testify to that. He's not here to testify on biological implications.
    MR. WEBER: I can ask it chemically if you want, Your Honor.
BY MR. WEBER:
    Q. From the chemical standpoint, what does it mean for one chemical to be an inhibitor of the effect of another?
    A. A chemical that's an inhibitor would reduce the effect or activity of another chemical.
    Q. And is this one of the scientific articles that you referred to earlier when you said the phenol hypothesis had come into question?
    A. Yes.
    Q. Now Dr. Townsend, did there come a time when a theory regarding the effects of smoke causing ciliastasis became the focus of attention in selective reduction research?
    A. Yes, there was. In the early '60s the ciliastasis theory started gaining importance among some in the scientific community.
    Q. And what was the approach of the Reynolds R&D department to the ciliastasis theory?
    A. Well again, we looked at the theory very seriously, we listened to the scientific community and in fact interacted with members of the scientific community to thoroughly understand the theory and see what we could do about addressing that smoking and health theory.
    Let me back up and maybe explain what -- what ciliastasis is. That may help. Ciliastasis -- well let me back up. In -- in the upper respiratory tract there are cilia.
    MR. CIRESI: Excuse me, doctor. Your Honor, there's no foundation for this witness to testify on biological implications. In fact he's testified he doesn't have any expertise in that area.
    THE COURT: Well I think he can define what ciliastasis is.
    A. In the upper respiratory tract there are hair-like projections that are called cilia. The theory is that there's some constituents in smoke that may inactivate or stop the motion of these cilia. What the cilia do is they pretty much beat in unison to provide a major clearance mechanism for the upper respiratory tract. The theory then is that some constituents in smoke would stop that movement of the cilia, would reduce or eliminate that mechanism of clearance, and so that smokers would be exposed more to the effects of tar. So that was the theory.
    We at Reynolds again, as -- as we did in the other theories, tried to determine if ciliastats were present in smoke, and we found a number are. We also determined the levels of those ciliastats in smoke, and then we sought ways to reduce or eliminate those ciliastats.
    Q. What levels were the ciliastats present at?
    A. Well there's a wide range. Some of the ciliastats are present in the -- in the microgram range; for example, certain aldehydes and ketones present in the microgram range, which is a millionth of a gram. Some ciliastats are present in the -- in the nanogram range and less.
    Q. Did Reynolds and other companies find a technique that addressed the selective reduction of ciliastats?
    *14 A. Yes.
    Q. Could you describe that.
    A. There was a technique actually discovered in the '60s -- or we discovered that the use of carbon filters, or carbon particles placed in filters, or some carbon materials in filters, could selectively remove some of the ciliastats from cigarette smoke.
    Q. And how did --
    Were carbon or carbonized filters put into the marketplace by Reynolds and its competitors?
    A. They were. In the -- in the early '60s there were a number of cigarettes that used carbon filters to reduce these ciliastats. For example, I think one of my competitors introduced a product called Lark in roughly 1962 which gained a very sharp increase in share of the market, up to a couple percent. R. J. Reynolds introduced a product in 1964 called Tempo with a carbon filter. It wasn't quite as successful, unfortunately, as my competitor's. It went up only a -- less than a percent. And then over the next number of years the overall market share of carbon filter products tended to tail off. But there was a sharp increase in the interest among consumers for carbon filter products.
    Q. Was the increase -- did it occur shortly after an article in the Reader's Digest about carbon filters and ciliastats?
    A. Yes, it did. There was an article in Reader's Digest referring to the ciliastasis and ciliastats in smoke and suggested to readers that carbon filters could remove some of the ciliastats.
    Q. How did carbon filter cigarettes do in the marketplace, Dr. Townsend?
    A. Well as I've already said, they -- the market share didn't last. Over the next number of years market share trailed to almost nothing, and one of the main reasons is that the smoke from carbon- filtered cigarettes tastes different. It really -- the carbon -- the carbon in the filter removes constituents which changes the taste characteristics of the smoke, and many smokers didn't accept that taste.
    MR. CIRESI: Your Honor, I'm going to move to strike the non- responsive portion. There's no foundation for him in marketing.
    MR. WEBER: Your Honor, if I may, all --
    He spoke earlier on Friday about the importance of following market data, not in marketing but following market data as to consumer acceptance of products. That's all I'm going into now.
    MR. CIRESI: Well Your Honor, then I'd like some foundation in light of the previous testimony this gentleman has given as to what he's relying on for those statements.
    THE COURT: All right. I don't know if he's going to start giving us information regarding the rejection by smokers, I don't think -- I think he's getting a little beyond his expertise.
    MR. WEBER: Let me ask -- I'm sorry.
    THE COURT: Just as to the last sentence, that will be stricken. The balance of his answer may stand.
BY MR. WEBER:
    Q. Let me ask the last --
    Or let me ask this question: What lessons did R. J. Reynolds draw regarding the failure of charcoal filtered cigarettes in the marketplace?
    *15 A. As a product developer and a cigarette design scientist for R. J. Reynolds, it was clear to me that the company learned that -- that consumer acceptance of modified products is essential in the marketplace.
    MR. CIRESI: Well, Your Honor, again there's no foundation with respect to how they marketed this or anything else in light of his previous testimony. I'm going to move to strike that.
    THE COURT: Well the answer will stand. I'll give you a chance to cross- examine on that issue.
BY MR. WEBER:
    Q. Now did there come a time when the underpinnings of the ciliastasis theory came into question?
    A. I think there were a number of questions about the ciliastasis theory from scientists in a number of countries, yes.
    Q. And did some of those questions relate to whether or not the ciliastats reached down into the airways?
    A. Yes. If --
    MR. CIRESI: Excuse me, doctor. Your Honor, counsel is continuously leading, and we're into the opinions of this gentleman. I'd ask that he have non-leading questions.
    THE COURT: I think that maybe at this point you should start changing your phraseology.
BY MR. WEBER:
    Q. Can you explain what some of those questions were regarding the cilia -- the underpinnings of the ciliastasis theory.
    A. I'll be happy to.
    If you recall the ciliastasis theory, the cilia reside primarily in the upper respiratory tract. This -- the questions that some scientists had when they found out which ciliastats were present in smoke and the levels that they were present in smoke was do they actually get to where the cilia are in the first place, because many of these constituents in smoke that are thought to be ciliastats are water soluble. And they found -- in fact a Swedish research group, and we confirmed that at Reynolds and a number of other researchers had found that absorption of many of the ciliastats in the oral cavity prevented them getting to -- to a large extent to where the cilia are in the first place.
    Q. Now were there other theories that -- with respect to other compounds or groups of compounds that R. J. Reynolds investigated under a selective reduction approach?
    A. There have been a number of theories that Reynolds has investigated selective reduction approaches for.
    Q. Does Reynolds still investigate the selective reduction approach?
    A. Yes, we do.
    Q. Based on your background in cigarette design and your review of the R. J. Reynolds research and development matters we've talked about, was there ever a time during the '50s and '70s when Reynolds believed there was a sustained scientific consensus regarding just what specific compound should be the focus of selective reduction?
    MR. CIRESI: Your Honor, I'm going to object to the form of the question with regard to Reynolds. If he's asking his opinion, it's a different story.
    THE COURT: Ask him his opinion, counsel.
BY MR. WEBER:
    Q. Do you have an opinion as to whether -- an opinion based on your time while at Reynolds, the work you've done for 20 years and the work you've described for us on Friday, as to whether there was ever a time in the '50s to '70s when there was a sustained scientific consensus regarding just what specific compound should be the focus of selective reduction engineering?
    *16 A. There's never been a sustained consensus in the scientific community about what compound or compounds ought to be removed from cigarette smoke. As scientists developed new theories, I think new targets were placed on the table. So initially it was benzpyrene, then some scientists started questioning that, proposed additional targets. So there have been multiple targets. But I don't think there's been a sustained scientific consensus on what in cigarette smoke needs to be removed.
    Q. Now could you turn to tab -- back to tab four there, which is already in evidence, GJ10043, and that's the Wynder and Hoffmann book, "TOBACCO AND TOBACCO SMOKE" from 1967.
    A. Yes.
    Q. And could you turn to page 526, and I want to ask you whether Wynder and Hoffmann made a recommendation on page 526 in "TOBACCO AND TOBACCO SMOKE" in 1967 about nitrates in tobacco processing? And it would be one, two, three -- middle of the fourth paragraph.
    A. I almost need a magnifying glass. I'm sorry, the bifocals don't work too well.
    Q. Can you find it?
    A. I -- I'm fine.
    Q. Second sentence -- third --
    Second sentence of that fourth paragraph.
    A. Beginning with "Combining...?"
    Q. Yes. Could you read that.
    A. Yes. "Combining the advantages of high-nitrate tobaccos and additions of stems to cigarette tobaccos, one would expect an optimal 'tar' and tumorigenicity reduction in using stems of Burley tobaccos as proportional additions."
    Q. Now, if you could turn at this point to tab 14, I want to ask whether that's a later article by Dr. Hoffmann entitled --
    MR. WEBER: I'm sorry, Mr. Ciresi, that's AZ0001117.
    Q. Is that a later article by Dr. Hoffmann entitled "Formation and Analysis of N-Nitrosamines in Tobacco Products and their Endogenous Formation" in Consumersm, published by the World Health Organization in 1984?
    A. That's correct.
    Q. Is that an article that you have reviewed and relied upon in connection with cigarette chemistry and design techniques?
    A. Yes.
    MR. WEBER: Your Honor, I'd move the admission under 803(18) of AZ001117.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive AZ001117.
BY MR. WEBER:
    Q. Now, did this article include a comment about high nitrates or low nitrates in cigarettes?
    A. Yes, it did.
    Q. Would you turn now to tab -- your next tab, Dr. Townsend, which is tab 15, that's X1858A, and does that compare a quote from the Wynder Hoffmann article on high nitrates that you read earlier to the jury from their '67 book with a quote from Dr. Hoffmann from his 1984 article that we just referenced?
    A. Yes, it does.
    MR. WEBER: Your Honor, I'd move the admission for demonstrative purposes of X1858A.
    MR. CIRESI: Well there's editorial comment on this exhibit, Your Honor, it's not just quotations from the article.
    MR. WEBER: It's a demonstrative exhibit, Your Honor.
    MR. CIRESI: Well it's argument. I have no objection to the quotations, but apparently they're putting argument on their demonstrative exhibits.
    *17 MR. WEBER: Your Honor, both sides have added titles to their demonstratives.
    THE COURT: Well this is --
    Can you just block that copy, that statement off, and just quote it as it should be quoted?
    MR. WEBER: Okay.
BY MR. WEBER:
    Q. All right. On the left, could you -- that's the quote you read earlier from Wynder and Hoffmann in 1967 talking about advantages of high-nitrate tobaccos --
    A. That's right.
    Q. -- that one would expect to reduce tumorigenicity?
    A. That's right.
    Q. Now on the right, what does Dr. Hoffmann say in 1984?
    A. In the 1984 article Dr. Hoffmann said, "This trend to increase nitrate levels by using ribs and stems should be reversed or counteracted by selecting stems with lower nitrate content or by reducing the nitrate content of the stems by special fermentation processes, extractions or by other means."
    Q. And what's the significance to you as one in the cigarette design field with respect to these two recommendations from the Wynder Hoffmann group?
    A. The significance to me is it points out the difficulties in cigarette design in addressing these -- these multiple targets that had been placed on the table, that the scientific community, I think, sincerely is looking towards. For example, Wynder is suggesting the use of nitrates to lower tumorigenicity, but then on the other hand he a number of years later suggests that the other direction is the preferred route because of yet another theory.
    Q. On this same subject of selective reductions, is there other literature of which you're aware that indicates the difficulties with selective engineering?
    A. Yes, sir.
    Q. Could you turn to tab 25, and that's GJ000107, and let me ask you if you can identify that as a book called "Banbury Report 3, A SAFE CIGARETTE, question mark," edited in 1980 by Gori and Bock?
    A. That's what it says, sir.
    Q. Is that a book that you became familiar with in the regular course of your business at R. J. Reynolds?
    A. Yes.
    Q. Is it a book on which you and others interested in cigarette chemistry and design reasonably rely?
    A. Yes.
    MR. WEBER: Your Honor, I'd move the admission under 803(18) of GJ000107.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive GJ000187.
    MR. WEBER: Judge, I may have misheard you. I think it's 107.
    THE COURT: Should be 107. If I said 187, it should be 107.
    MR. WEBER: Thank you, Your Honor.
BY MR. WEBER:
    Q. Could you turn to page 355 in the Banbury Report 3 that was just admitted, and I'd like you to --
    This is from 1980; correct, Dr. Townsend?
    A. Yes, sir.
    Q. And I'd like you to read this last full paragraph on page 355.
    A. The last full paragraph?
    Q. Yes, sir. The one that begins with --
    A. With "Uncertainty...?"
    Q. -- "uncertainty...."
    A. Yes. "Uncertainty about the specific attribution of risks to individual smoke components may be greater than ever now, perhaps with the exception of some fractions that have shown carcinogenic activity in animals. Hence it has been difficult to provide a rational -- a rationale for deliberate reductions of specific components of smoke, aside from the self- fulfilling claims that the reduction of one or the other component may lead to reduced risk. Additionally, if one recognizes the genuine difficulties in selectively removing specific smoke components, it is not surprising that the most practical solution is to reduce total smoke emission and therefore all smoke components, and then to return to specific components that are considered harmless and would restore desirable characteristics of acceptability."
    *18 Q. What's the significance of that statement in 1980, the Banbury report, to you as a cigarette designer, Dr. Townsend?
    A. To me as a cigarette designer it makes it clear that Dr. Gori, as well as others in the scientific community, have recognized that selective reduction has major limitations, that it's extremely difficult, and that overall reduction -- reduction of total smoke is an attractive way to go.
    MR. WEBER: Your Honor, I'm going to move to another large topic. I don't know if now would be appropriate.
    THE COURT: Why don't we take a recess.
    THE CLERK: Court stands in recess.
 (Recess taken.)
    THE CLERK: All rise. Court is again in session.
 (Jury enters the courtroom.)
    THE CLERK: Please be seated.
    THE COURT: Counsel.
    MR. WEBER: Thank you, Your Honor. Am I -- yeah. Thank you, Your Honor.
BY MR. WEBER:
    Q. Dr. Townsend, let's move now to a discussion of the general reduction engineering.
    A. Yes, sir.
    Q. When did Reynolds begin exploring the principles of general reduction?
    A. Reynolds began exploring the general reduction techniques and -- and the whole approach of general reduction in the early '50s, about the same time we began exploring selective reduction.
    Q. Was Reynolds the only tobacco company exploring general reduction techniques?
    A. No. I believe that all my competitors in the United States were simultaneously exploring general reduction techniques.
    Q. You spoke on Friday about the differences and explained the differences between the selective reduction and general reduction techniques. What I'd like you to do now is turn to tab 26, which is X2567, and let me ask you if that's a chart that would assist you in your testimony explaining the advantages of general reduction?
    A. Yes, it is.
    MR. WEBER: Your Honor, I'd move X2567 for demonstrative purposes.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive X2767 for illustrative purposes.
    MR. WEBER: Your Honor, I think it's 2567.
    THE COURT: 2567?
    MR. WEBER: Yes, sir.
    THE COURT: What tab number is it?
    MR. WEBER: X2567.
    THE COURT: What's the tab number?
    MR. WEBER: Oh, I'm sorry. Tab 26 on my note. Did I --
    THE COURT: I thought you said tab 27.
    MR. WEBER: I'm sorry.
    THE COURT: All right. Under tab 26 it's X2567.
    MR. WEBER: Thank you, Your Honor.
BY MR. WEBER:
    Q. Dr. Townsend, could you go through this chart and explain what you understand to be the advantages that -- advantages of the general reduction approach for the ladies and gentlemen of the jury.
    A. Yes, I will. And let me remind -- remind you that general reduction is the overall reduction of all the constituents in smoke more or less to the same degree.
    We found that the advantages of general reduction are really very technically practical. Unlike the technical difficulties we found in selective reduction, we found general reduction is quite practical technically. Of course general reduction, reducing all the constituents more or less to the same degree, you address all the potential problematic compounds, so you -- so you don't have the problem we had in selective reduction -- or have in selective reduction with changing targets or -- or additional targets and -- and additional theories being considered by the scientific community.
    *19 General reduction, because all the constituents pretty much come down to the same degree, more or less, you avoid the unintended consequences like the one we found in benzpyrene where we did effect a reduction in benzpyrene through extraction, but we found that phenols went up. With general reduction, everything comes down pretty much to the same degree.
    And then finally, one of the big advantages of general reduction is that you maintain the overall taste characteristics or the balance of the smoke. You're not going in and removing one compound or one class of compounds like the carbon filters did and upsetting the balance of the smoke. The balance stays pretty much the same.
    Through general reduction, the intensity of the taste will go down because there's less tar and less nicotine, so the intensity will go down, but the balance stays more or less the same.
    Q. Could you turn to tab 27, which is X2767, and let me ask whether that's a chart that's been prepared to help you explain general reduction techniques?
    A. Yes, it is.
    MR. WEBER: Your Honor, I'd move the admission of X2767 for demonstrative purposes.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive X2767.
BY MR. WEBER:
    Q. Now, Dr. Townsend, could you go through this chart just briefly, because some of these we'll come back and touch on in some more detail, but explain some of these general reduction techniques.
    A. Yes, I will.
    If you start at the left-hand corner of this -- this exhibit, it's indicated that reconstituted tobacco is a general reduction technique. Reconstituted tobacco is a -- is a paper sheet made of tobacco, and we will talk about that more.
    The use of filters, to the middle on the left-hand side, of course, obviously, is a -- is a way to reduce all the smoke constituents. So filtration, and in particular highly efficient filters, is -- is a powerful -- a major technique and -- and very effective.
    The use of porous papers, down at the bottom left-hand corner, porous papers increase the level of air dilution admitted to the cigarette, and we'll talk about that as well.
    In the top right-hand corner, filter ventilation is -- is a very, very important technique for general reduction.
    Next down, faster burning papers, essentially what that is is -- is by choosing and -- and identifying cigarette papers that will burn faster, the puff count or number of puffs taken on the cigarette will be reduced, and that's a means for -- for general reduction as well.
    Then expanded tobacco, and that's essentially a means for burning less tobacco when a cigarette is smoked, and we'll talk about that just briefly.
    And then finally at the bottom right-hand corner, reducing the amount of tobacco burned through a number of means, including making the circumference of the cigarette smaller, that will reduce the amount of tobacco burned. Making the tobacco rod shorter, that will reduce the amount of tobacco rod -- amount of tobacco burned. And then another technique is to adjust cigarette makers so the cigarette makers actually pack a little bit less tobacco in there, again to reduce the amount of tobacco burned.
    *20 Q. Dr. Townsend, let's start with the issue of filtration, and if you could turn to tab 28, X2488, is that a demonstrative that will help you explain filter -- filtration and filter modification?
    A. Yes.
    MR. WEBER: Your Honor, I'd move X2488 for demonstrative purposes.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive X2488.
    MR. WEBER: Your Honor, may I have the court's permission for Dr. Townsend to come down and illustrate this board?
    THE COURT: Go ahead.
BY MR. WEBER:
    Q. Now Dr. Townsend, using demonstrative Exhibit X2488, could you explain how a cigarette filter -- what are different modifications and the purposes.
    A. Right. These -- these are some of the filter modifications that I tried to indicate on this exhibit. First of all, cigarette filters obviously trap the particles, the particulate phase in smoke, those little droplets that we talked about Friday, and this just represents the particles trapped on the surface of a bundle of fibers.
    Obviously, one can make a cigarette with different materials. Most of the cigarettes sold in the United States are fiber bundles made of cellulose acetate. The cellulose comes from wood pulp. It's acetylated and then spun into fibers. We've also used commercially paper filters, a lot like crepe paper, that's folded and gathered and formed into a rod for filters. We've also looked at a number of alternative materials like polypropylene, polyethylene, and also a number of very different materials for selective reduction as we talked about earlier. But nevertheless, the choice of the materials can affect general reduction.
    Also, probably most people think that these little fibers in the cigarette filter are round. They can be, and some cigarettes have used round fibers, but more often than not cigarettes sold in the United States have fibers that have a specific shape to them, either a Y cross-section like in this lower part of the picture or an I-beam cross-section. And the function of -- of -- of using -- or the reason for using fibers that have this kind of shape is that it increases the surface area of the fiber per unit weight and -- and increases the filter efficiency. Of course there are unique fiber shapes -- I'm sorry, unique filter shapes to try to further increase filter efficiency and overall general reduction.
    Up in the right-hand corner we see that fiber density is important, and if -- if one -- this probably makes sense superficially, because if one packs more fibers in the filter, then it's going to be a more efficient filter.
    And then finally filter length. Obviously the longer the filter, the more efficient it is in removing the particulate phase.
    Q. Doctor, let me move the other chart and ask you to draw how a filter works just as a matter of physics, if you would.
    MR. WEBER: Your Honor, may I inquire, is the court able to see that?
    THE COURT: Yes, I have no problem.
    *21 MR. WEBER: And can you inquire as to whether the jury can? Okay?
    THE COURT: Is that okay?
 (Affirmative response.)
    MR. WEBER: Thank you, Your Honor.
BY MR. WEBER:
    Q. Dr. Townsend, would you, using that chart and that paper, go ahead and explain how a cigarette filter works as a matter of physics with the particles.
    A. Well this is a fairly complicated area, particle capture on fiber filters, but I think there are three major mechanisms that be be considered for cigarette filters, and what I'll -- what I'll do is just describe those three major mechanisms of how filter fibers trap particulates. And to do this, let me draw a cross-section of a fiber, and just to keep it simple, we'll make this a round fiber. So we're looking at the cross- section of a round filter fiber. And if smoke is flowing around that -- through the filter and around the fiber, the smoke will follow stream lines generally around that single fiber, and what I'm indicating is the flow is moving generally in that direction around the fiber, so it diverts around. Now if a particle is traveling in the smoke stream and it's following one of these stream lines, if the momentum is sufficiently high either by virtue of a high velocity or a large particle mass, the particle can actually break away, can travel following the stream lines and can actually break away from the streamline and collide with the front edge of the fiber, and once that particle touches the fiber, the particle is liquid, it will stick, it doesn't generally bounce off. So we call this kind of capture mechanism impaction.
    Q. While you're writing this, --
    A. Yes.
    Q. -- excuse me, I want to walk over here so I can see as well.
    A. All right.
    Q. Thank you.
    A. A second mechanism that we think is important in removal of smoke particulates is when a -- when a particle is following a stream line, it doesn't have sufficient momentum to break away from that stream line and hit the front edge as the first case, so it follows around the fiber, but as it does it's following a stream line that's so close to the edge of the fiber that as it goes around it touches and sticks. We call that kind of -- that removal mechanism interception. Now that follows the stream line, too.
    And then the third major mechanism that we think is important is when the particle is actually following the stream line further removed from the fiber and so it doesn't touch, it doesn't have sufficient momentum to break away and collide with the front edge, and it's way out here from the surface of the fiber, but because this -- if this particle is small enough, it -- there's a finite probability that it can side step and touch the -- touch the fiber and stick. We call that diffusional deposition. And it's because -- and it works because small particles and molecules, of course, are -- are constantly moving in random motion, Brownian diffusion, so a particle can also side step or actually break away from this stream line and -- and touch the surface of the particle and stick. That's diffusional deposition.
    *22 There are other mechanisms that could apply, but we think from the work that we've done that these are the three most important.
    MR. WEBER: Your Honor, I've marked this chart as Exhibit 50004, and I'd move its introduction for demonstrative purposes. That is the chart that Dr. Townsend just prepared.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive 50004 for illustrative purposes.
    MR. WEBER: Now -- I'm sorry, Your Honor, I almost interrupted you.
BY MR. WEBER:
    Q. On this subject of filters and how they work, is it possible, Dr. Townsend, to make a filter that essentially is so efficient that it collects all the smoke?
    A. It is possible to -- to develop a filter that will collect virtually all of the particulates.
    THE COURT: Excuse me, counsel. I don't mean to interrupt, but I don't want the doctor standing on top of the jury. If you're going to use the exhibit, then please, can you set it up against something?
    MR. WEBER: Okay.
    THE COURT: Set it on the board.
    MR. WEBER: Let met put it right here right now, Your Honor.
    THE COURT: Then stand on the other side so the reporter is able to hear your testimony.
    MR. WEBER: Yes, Your Honor.
    THE COURT: Thank you.
    A. It is possible to make a cigarette filter that will remove virtually all the particulates by using high fiber density, by using high-surface-area fibers, by using -- make the fiber long enough. So yes, it is possible to remove virtually all the particulate matter.
    Q. And would --
    Based on your experience at R. J. Reynolds, what would the effect of such a filter be in the marketplace?
    MR. CIRESI: Well objection, Your Honor, unless there's been some testing of it.
    THE COURT: Okay. Maybe you should lay some foundation for those statements.
BY MR. WEBER:
    Q. Do you --
    Based on your 20 years at R. J. Reynolds, do you have experience as to whether efficiency of a filter affects its marketplace performance?
    A. Yes, I do.
    Q. And would a filter that filtered out all the smoke be a design which you would consider at R. J. Reynolds?
    A. No, it isn't.
    Q. And why would that be?
    A. Because for two reasons. If a filter removes virtually all the particulates from the smoke, there would be virtually no taste, there would be -- and that would not an acceptable-tasting product. The second --
    MR. CIRESI: Excuse me, Your Honor, then I'm going to object, there's no foundation for this witness with regard to what imparts the taste. He's not qualified in that area.
    THE COURT: I'll let the answer stand.
    Q. Now the -- I'm sorry.
    A. I'm sorry, there was a second piece to that. The -- the second reason I think those -- those kind of filters wouldn't be consumer acceptable is that the pressure drop or the -- how hard it is for the consumer to draw through that filter would be so large that it would -- it would be very difficult to -- to draw on. The consumer would find that unacceptable as well.
    *23 Q. Now I want to move now, Dr. Townsend, to another general reduction technique you identified, and that is reconstituted tobacco.
    A. Yes.
    Q. And I'd like to hand you what's been marked physical Exhibit 1, P1 --
    A. Yes.
    Q. -- and ask if you could identify that as a reconstituted -- a sheet of reconstituted tobacco?
    A. This is a sheet of reconstituted tobacco.
    MR. WEBER: Your Honor, I'd move the admission of physical Exhibit P1.
    MR. CIRESI: No objection for illustrative purposes, Your Honor.
    THE COURT: Court will receive P1 for illustrative purposes.
    MR. WEBER: Your Honor, what we --
    When I have Dr. Townsend explain this process, could I have the court's permission to have the bailiff just pass another sheet through the jury?
    THE COURT: No. The clerk may though.
    MR. WEBER: Okay.
 (Clerk complies with request.)
    MR. WEBER: Thank you.
BY MR. WEBER:
    Q. Dr. Townsend, could you explain the process that's used to make reconstituted tobacco sheet.
    A. Yes, I will. And let me start by saying that one of the main reasons for inventing this process -- and Reynolds invented this process originally back in the late '40s -- was to take pieces of tobacco that were too small to use in cigarette manufacture and make them into larger pieces that we could use efficiently and effectively in cigarette manufacture. Reconstituted tobacco -- let me back up from there.
    When we receive or purchase tobacco leaf, of course it's like any leaf, it has a mid rib and then it has small stems that come out from the mid rib, and then in between the stems is the leafy portion of the tobacco leaf. One of the first things that we do when we receive tobacco in -- in what we call the stemmery is we remove that mid rib and we remove the stems, leaving sections of the leafy portion we call lamina. The -- in -- in doing this, in separating the stems and mid rib from the lamina, we generate a lot of small tobacco pieces, pieces that are too small to -- to use in cigarette manufacture. And so R. J. Reynolds developed this process, as I said, in the late '40s, to try to recover that material and make it into larger pieces.
    We do that by taking some stems and some of these small lamina pieces that are too small, and even in some cases tobacco dust that results from this stemming operation, and -- and -- and make a paper sheet. And that's exactly what this is, is a paper sheet.
    Now the way paper sheets are made, one takes fibers and generally suspends them in a -- in a water solution so that you have a lot of fibers and a lot of water, and then that entire suspension is laid down on a wire screen. The water falls through the screen. All the fibers, of course, are stopped -- are stopped by the screen in a random placement, and you form a paper sheet. So that's what Reynolds wanted to do in developing this paper sheet of reconstituted tobacco. But to do that, because there's so much water involved in the process, Reynolds found very quickly that it needed to extract water solubles from the tobacco materials before the paper sheet is made.
    *24 So currently the way we do this process is we take the -- some stems, the small pieces of the lamina, and in some cases small amount of tobacco dust, and we'll place it in a large kettle, add water, and extract out everything that will come out in that water. We hold that water with the water solubles to the side. We take what's left, the fibers, the stems and the fibrous portion of the tobacco, and we make a paper sheet just like the one we see here. And then after the paper sheet is made on this wire screen, we take the water solubles that we held out to the side and then we spray back on here, because it contains a lot of flavorful compounds, nicotine and a number of other things. So we hold that extract to the side and then reapply.
    Then once we have a sheet like this, it's cut into smaller sections and then fed through our what we call primary processing where it's then blended with other tobaccos like flue-cured burley and Turkish tobaccos.
    Q. Is that a fresh sheet of reconstituted tobacco or --
    A. This is pretty old.
    Q. Thank you.
    If you'd resume your seat now.
    A. Okay.
    Q. Now how does reconstituted tobacco sheet compare with normal leaf with respect to tar and nicotine?
    A. Well we found, and I think the original -- the original invention was, as I said, to use small pieces that we couldn't otherwise use in manufacture, make it into larger pieces that we could use -- what we found after the fact was that reconstituted tobacco actually generates less tar because the -- primarily because the stems that are used in the process, when pyrolyzed, don't generate as much tar as regular lamina. Also, the stems that are used have a very low nicotine level, and so that serves to reduce nicotine level as well as tar. Also stems in the reconstituted sheet will increase the burn rate of the tobacco rod a bit, so there is a slightly shorter puff count that also reduces tar level. So two main reasons.
    Q. Generally, what percentage of commercial cigarette blends in which different tobaccos are used, what percentage of the blend in general consists of reconstituted tobacco sheet?
    A. Typically the range is around -- you know, between 15 and 25 percent. In a few brands it can get up as high as 30 percent, a few brands maybe as low as 10 percent.
    Q. Why isn't more reconstituted tobacco sheet used in a blend?
    A. Because if one goes to a much higher -- or significantly higher level than, say, 25 or 30 percent, you start seeing off- taste problems, you see a very different taste; consumers find that unacceptable.
    Q. When the tobacco extract that you referred to, the water solubles that are removed as part of this process, when that's sprayed back on to the sheet in the paper-making process, is any additional nicotine from any other source added?
    A. No.
    Q. Now has R. J. Reynolds from time to time used ammonia or ammonia compounds in its reconstituted tobacco process?
    *25 A. We have, some.
    Q. As of 1994 what percentage of brands and styles had some ammonia reconstituted -- ammonia processed reconstituted sheet in the blend?
    MR. CIRESI: Your Honor, may I just ask what time in 1994?
    MR. WEBER: Prior to the filing of this lawsuit in -- let's say any time the first six months of 1994.
    A. The level in 1994 was about 39 percent of the products we sold had ammoniated reconstituted tobacco.
    Q. When did Reynolds first use any ammonia in its processing of reconstituted tobacco sheet?
    A. The first commercial use of ammoniated reconstituted tobacco was in 1974 in Camel Filter.
    Q. And when was the next time that Reynolds used ammonia in its processing of reconstituted tobacco sheet for a commercial product?
    A. We implemented ammoniated reconstituted tobacco in Winston Filter in 1979.
    Q. So from '74 to '79, the only brand that had any ammoniated reconstituted sheet was Camel Filter?
    A. I believe that's correct.
    Q. Now was the use of the reconstituted tobacco technique made known to the scientific community and the public?
    A. Yes, it was, in -- in a number of ways. There was a presentation by our CEO at the time before Congress. Back in the '50s Wynder and Hoffmann published an entire chapter in their book on reconstituted tobacco. It was spoken to in the Banbury report that we talked about this morning. It was spoken to in the National Cancer Institute program toward less hazardous cigarettes, which directed the work of the Tobacco Working Group; reconstituted sheet or reconstituted tobacco was an important part of that study. I think there were a number of -- a number of references in -- in the literature.
    Q. Has the use of reconstituted tobacco sheet been evaluated in Surgeon General's reports as well?
    A. Yes, it has. Also, there are a lot of patents in the -- in the literature, in the open patent literature on reconstituted tobacco.
    Q. When you said a moment ago that reconstituted tobacco was discussed in the Wynder and Hoffmann book, is that 1967 "TOBACCO AND TOBACCO SMOKE," which is already in evidence?
    A. That's the book I was referring to.
    Q. Now let's move, if we could, Dr. Townsend, to touch on those general reduction techniques that use the concept of using less tobacco.
    A. Okay.
    Q. And I think you mentioned several have touched on that. The reduced circumference?
    A. Right. Well if we -- if we start in the bottom right-hand corner, reduced circumference, again, will reduce the amount of tobacco that's burned when the cigarette is burned. Shorter tobacco rods will also, of course, reduce the amount of tobacco burned, generating less tar. And a third way for reducing the amount of tobacco rod weight is to make changes to the cigarette maker, to actually pack less tobacco into the rod, make it as loose as you can and still keep a consumer-acceptable tobacco rod. Then the major technique for further reducing tobacco weight in a burning cigarette is the next one up, the use of expanded tobacco.
    *26 Q. Now who invented the process for expanded tobacco?
    A. R. J. Reynolds developed -- invented and developed the very first process for expanded tobacco. I think the original invention was in the mid-' 60s, and we first commercialized it roughly in 1970, I believe.
    MR. WEBER: Your Honor, may I approach the witness with an exhibit?
 (Two glass jars handed to the witness.)
BY MR. WEBER:
    Q. Dr. Townsend, I've just handed you what's been marked physical Exhibit P10 and physical Exhibit P10A. Can you identify what those are?
    A. Yes, I can. One jar contains non-expanded tobacco --
    Q. And which is the number on the non-expanded?
    A. That's Exhibit P10 contains non-expanded tobacco. Exhibit P10A contains an equal weight of expanded tobacco. So the tobacco in the two jars is the same weight. The expanded tobacco, obviously, fills a larger volume.
    MR. WEBER: May I move those into evidence, P10 and P10A, physical exhibits, Your Honor, for demonstrative purposes.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive P10 and P10A for illustrative purposes.
BY MR. WEBER:
    Q. And if you could just hold those up again for a moment, Dr. Townsend, with the labels toward the back so -- toward you so the jury could see. That's the same amount of tobacco in each jar?
    A. The same weight of tobacco in each jar. The expanded jar that I'm holding up higher obviously occupies a larger volume even though it's the same weight as the unexpanded.
    Q. Now how is it that the same weight of tobacco can, through processing, occupy a larger volume?
    A. Well that's where the name came from. We've expanded the tobacco. We did that in --
    Actually the process is not terribly different than popping popcorn. One heats the tobacco and -- well let me -- let me back up. One impregnates the tobacco with a solvent, and the solvent will actually go into the cells, into the cell structure under pressure, and then when the pressure is released and the sample is heated very quickly, the solvent evaporates very quickly, disrupts the cell structure and actually swells or puffs the -- the building -- the backbone of the tobacco, so it -- it actually pops or puffs the tobacco. We also call this puffed tobacco or expanded tobacco.
    Q. How does expanded tobacco contribute to a general reduction of tar and nicotine yield?
    A. Well I think it's clear that this expanded tobacco occupies a larger volume for an equal weight, so we can reduce the weight of the tobacco in the -- in the cigarette and still fill the rod and have a nice, firm rod, one that's -- that -- where tobacco pieces aren't falling out the end.
    Q. Is there a limit to the amount of expanded tobacco that can be used in a cigarette?
    A. Well technically there's not a limit. One can make a hundred percent -- or a cigarette of a hundred percent of this. From a practical standpoint there's a consumer acceptance limit, and it seems like the maximum practical limit is somewhere around 50 or 55 percent expanded tobacco.
    *27 Q. Does Reynolds and other companies incorporate expanded tobacco or puffed tobacco in their commercial products?
    A. Reynolds uses expanded tobacco commercially, and all of our domestic competitors use expanded tobacco as well.
    Q. And is expanded tobacco as part of the blend mixed in with other tobaccos?
    A. Yes. What we do is take the expanded tobacco and then we'll mix it with flue-cured burley and Turkish laminae, which has a low density -- I mean -- yeah, a low density, and then also add reconstituted sheet as well. So it's a blend that contains this.
    Q. Let's focus on the Reynolds process for just a moment. What --
    Did Reynolds use a chemical agent as part of its initial process to expand the tobacco?
    A. Yes. The chemical agent we used in our first invention or our -- the process we invented in the mid-'60s was freon, or F11.
    Q. Did Reynolds evaluate -- strike that.
    Prior to incorporating expanded tobacco in this process into its commercial cigarettes, did Reynolds test the smoke of the cigarettes made with expanded tobacco?
    A. Reynolds did extensive chemical and biological testing of the smoke from cigarettes made with the freon expanded tobacco.
    Q. And did it disclose that research regarding expanded tobacco to other companies to whom it was trying to sell the process?
    A. It did. We first commercialized this -- this process and we began using it, then we wanted to license it to some other tobacco companies around the world. We disclosed the detailed chemistry and the biological testing that we did to the companies that were interested in possibly licensing this. As a result of this, those companies, in some cases our scientists as well, provided some of the information to non-industry people; for example, the Hunter Committee in the U.K. There were some individuals from the German Health Ministry and also some government officials from Japan that received chemical information and the biology.
    Q. Now you mentioned the Hunter Committee. Is that the --
    Was that the informal name at the time for what was known as the United Kingdom's Independent Committee on Smoking and Health?
    A. That was at one time the informal name for the Independent Scientific Committee on Smoking and Health, and that committee was under -- under the auspices of the British Health Minister.
    Q. And did that committee at the time have the duty to approve or not approve additives or processes that used ingredients with respect to commercial cigarettes?
    MR. CIRESI: Objection, Your Honor, it's outside the scope of discovery, and it's irrelevant to this action.
    THE COURT: Sustained.
BY MR. WEBER:
    Q. Was the use of Reynolds expanded tobacco approved by the Hunter Committee in Britain?
    MR. CIRESI: Same objection, Your Honor.
    THE COURT: Sustained.
    MR. WEBER: Could I approach the side-bar for a minute on that, Your Honor?
    THE COURT: All right.
    *28 THE COURT: Where is the sheet of tobacco? We're just trying to maintain control of exhibits.
    MR. WEBER: For the clerk, Your Honor?
    THE COURT: Please.
    THE CLERK: The jars as well.
    MR. WEBER: The jars are up there.
    THE COURT: They should be with the clerk.
 (Physical exhibits handed to the clerk.)
    THE COURT: Go ahead.
    MR. WEBER: Thank you, Your Honor.
BY MR. WEBER:
    Q. Dr. Townsend, does R. J. Reynolds still use the same process for expanding tobacco it initially used?
    A. No, it doesn't.
    Q. Does it still use freon as an expansion agent?
    A. No, it doesn't. And that's --
    Q. And when --
    A. That's why we don't use the first process.
    Q. When did R. J. Reynolds change that process, if you recall?
    A. Approximately 1988, as I -- as I recall.
    Q. And what was the reason for changing that process?
    A. Well, of course, freon has been implicated as an environmental -- as -- as influencing the ozone layer, the ozone hole that we've all heard about, so for environmental reasons we quit using freon.
    Q. Now based on the chemical work that was done with respect to the expanded tobacco when it was tested before it was put into commercial products, --
    A. Right.
    Q. -- what did R. J. Reynolds learn about whether freon used as an expansion agent would transfer to smoke?
    MR. CIRESI: Your Honor, may we have some foundation with regard to what was done?
    THE COURT: Well you can answer the question.
    A. What we found from extensive chemical evaluations of smoke with freon-treated tobacco was that we didn't see -- there -- there were trace levels, like probably no more than five parts per million freon in tobacco, and in mainstream smoke we didn't see freon.
    Q. Now let's turn, if we could, to air dilution, and I think there are several air-dilution methods referenced on the chart that's displayed.
    A. There are two actually.
    Q. All right. Which one would --
    Well let's start with the dilution methods. And what I'd do now is ask you to turn to tab 29, which is X2543. Is that a chart you prepared to help you focus on the air-dilution methods?
    A. Yes.
    MR. WEBER: Your Honor, I'd move X2543 for demonstrative purposes.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive X2543 for illustrative purposes.
BY MR. WEBER:
    Q. Dr. Townsend, could you explain how -- what air dilution is, how it works, and how it contributes to general reduction?
    A. Yes. Let -- let me start and direct your attention to the upper portion of this exhibit, filter ventilation. Filter ventilation, or we call it sometimes air dilution, is -- is a means for tar and nicotine reduction, and the way that occurs is that one perforates the filter and -- with -- and places small holes in the filter so that when a smoker draws on the cigarette, a portion of what goes in their mouth is -- is air from the outside. So it dilutes the smoke. The other consequence of doing that is if a portion of the smoke that goes in a smoker's mouth is that diluting air, then there's less air being drawn through the front end of the cigarette where the combustion and pyrolysis take place, so there's less smoke actually generated.
    *29 Another consequence of that is once the smoke is generated, the reduced amount of smoke generation, the velocity of the smoke down the tobacco rod and into that front edge of the filter before you get to the -- to the vents in the -- at the middle of the tipping paper, the smoke is moving slower, and so it's removed more efficiently by the tobacco rod and especially by the filter that's upstream of those air-dilution vents. So you see, placing those perforations in the cigarette has multiple effects. There's some interactive effects going on. And using air dilution will increase the filter efficiency substantially. So it not only dilutes it, it generates less smoke, but it also works interactively to increase the filter efficiency. That's for filter ventilation.
    If you'll direct your attention to the lower half of the exhibit where I've indicated paper porosity, cigarette paper can actually be constructed so that it has a large number of pores or holes in the paper. Those holes can be either inherent, they can be just normal porosity through the fiber bed, or they can be electrostatically perforated. So you can actually place holes after the -- after the paper is manufactured. In any event, paper -- increased paper porosity will allow air to come in through the paper when a smoker is taking a puff on a cigarette, so again a portion of what goes in -- into the smoker's mouth is air from the outside. It also will reduce the amount of smoke generated and the pyrolysis of -- of tobacco because there's less air being drawn through that part of the cigarette. And -- and I -- I will say that paper porosity is not as effective in reducing overall tar and nicotine as filter ventilation, but they're both important tools.
    Q. You mentioned the possible effect on filter choice and filter efficiency by using air dilution. Does air dilution allow more options to the designer in terms of filter efficiency?
    A. Oh, it -- it allows a lot of additional options, because -- and again, the cigarette is so interactive, if one changes one design element of the cigarette, it ultimately affects the cigarette performance in -- in a number of ways. The example I just used with filter ventilation affecting the filter efficiency level is very important, and the cigarette designer then can trade these design characteristics. For example, one can build cigarettes with a low -- slightly lower filter ventilation level and a higher filter efficiency, or one can build a cigarette with the opposite, with a high ventilation level and a lower filter efficiency, and -- and achieve essentially equivalent tar levels. So it gives the cigarette designer some flexibility, certainly.
    Q. Now Dr. Townsend, did the Surgeon General in 1979 evaluate the effects of a number of these general reduction design techniques?
    A. Yes, he did.
    MR. WEBER: Your Honor, because of the detail on this chart, we had to blow it up a little bit larger than normal, but this is a copy of page 14- 114 of the 1979 Surgeon General's report, which is in evidence actually under two numbers, PX3836 or MD000113, and what I'd ask is if I could have the court's permission to have Dr. Townsend come down and speak about some of the markings on this chart, Your Honor.
    *30 A. I'll stand right here.
    Q. Position yourself there.
    MR. WEBER: Is he fine there, Your Honor?
    THE COURT: It's fine, yes.
    MR. WEBER: Okay. And hand you a pen to point it out.
    Q. If you could explain the significance of that chart with respect to design techniques that we've been speaking about.
    A. Okay. First, this is a chart taken from the U.S. Surgeon General's report, 1979, and what we're looking at is a number of cigarette design techniques or characteristics. Some of these we've talked about.
    Over here in the -- in the main body of the table are a bunch of pluses and minuses, and let me make it clear what we're talking about. If -- if an entry has two pluses, that's defined as more than a 50 percent reduction; if it has one plus, that's defined as a significant reduction, less than 50 percent, but still significant; if it's a plus minus, one on top of the other, then it's an insignificant change; if it's plus minus and a question, then it's a questionable change, I'm not really sure; if it's a minus, it's an increase; and if it's a question, it's unknown.
    So what the Surgeon General did in this -- in this table is compare these design characteristics and talk about its effectiveness in CO reduction, carbon monoxide, ciliatoxicity -- and you remember the ciliastasis theory -- tar, tar reduction, nicotine reduction, BaP, also benzpyrene, carcinogenicity, measured by mouse skin-painting, and then the level of tumor promoters, and then on the far right are some remarks for a few of those entries.
    Let's point, first, to porosity of paper for example, and the Surgeon General notes that the use of high porosity papers results in a significant, more-than-a-50-percent reduction in the CO, a significant ciliatoxicity reduction, reduction in tar, reduction in nicotine, reduction in benzpyrene, and questionable on carcinogenicity.
    If one looks at perforated filters, what we've just been talking about in the last few minutes, perforated filters, double plus for carbon monoxide reduction, reduction in ciliatoxicity, reduction in tar and nicotine, carbon monoxide, and you see all the way down.
    The use of cellulose acetate filters without air dilution, again a bunch of pluses across.
    To be fair, the plus minus is out here on carcinogenicity.
    The use of a charcoal filter, now you see a double plus under ciliatoxicity. Back to the ciliastasis theory.
    The use of expanded tobacco, again -- well here we see double pluses for tar and nicotine and benzpyrene, so expanded tobacco had a major effect on the reduction of tar and nicotine and benzpyrene.
    The use of reconstituted tobacco sheet, and this entry is the one that we've employed at Reynolds, the -- the paper process, and you'll see pluses across. There's also a different kind of reconstituted sheet, there are different types of processes that our competitors use, and that one also had pluses.
    We can also look up here in the effectiveness of the extraction. Remember, we tried to selectively reduce benzpyrene through extracting the precursors to the formation of benzpyrene, and the Surgeon General indicated that, yes, it does happen, it -- as I've already said, there was a technical reduction in BaP, there was a reduction in tar and nicotine as well, but the Surgeon General concluded it's of academic interest only.
    *31 If we also look down to additives to the tobacco, and in this case nitrate additives which we've already discussed, again here you'll see some pluses. Here's an increase in ciliatoxicity, though. See there, there's a minus there. But there is a reduction in tar, nicotine, BaP, reduction in carcinogenicity, but the Surgeon General concluded that that's only of academic interest, too, because a number of scientists were really questioning the wisdom of adding nitrate to cigarettes.
    Q. Dr. Townsend, is there also a footnote down at the bottom that relates to the charcoal filter?
    A. Yes. The second footnote here says -- bifocals work right -- "Reduction of tar, nicotine, and BaP are, in general -- are, in general, greater with cellulose acetate filters than with charcoal filters."
    MR. WEBER: Your Honor, give me just a moment, I'll remove this and then I'll put up another one.
    Q. Was this, by the way, this chart you were just talking about, a chart made by one of the tobacco companies?
    A. This chart? This is from the Surgeon General's report.
    Q. Dr. Townsend, let me now show you a chart from an article that's admitted is 26003, PX26003. It may also have been admitted under BYP000260.
    MR. CIRESI: Excuse me, let me get it, please. BYP000 --
    MR. WEBER: 000260.
    MR. CIRESI: -- 260? Thank you.
    MR. CIRESI: Okay.
BY MR. WEBER:
    Q. On the first page I've got a --
    This is a copy of a chart from Dr. Samet's article, and that -- and that deals with a sales-weighted tar and nicotine measurement.
    A. Yes.
    Q. Could you explain that chart for the ladies and gentlemen of the jury, Dr. Townsend.
    A. Yes. And this is from the Department of Health and Human Services, 1989, and that's Dr. Samet's graph. What Dr. Samet shows here is what's called sales-weighted tar level as a function of time beginning in 1955 and continuing to 1989, thereabouts. What Dr. Samet shows is that the tar level of the -- the sales-weighted average tar level, and what that is is the level of tar at which half the cigarettes sold in the country are higher and half the cigarettes sold in the country are lower, so it's the sales-weighted average, and in -- well, actually his graph starts roughly 1996, and he's showing in the mid to -- oh, roughly 35, 36 milligrams of tar per cigarette, and showing that decline over time to 1989 to about -- this -- this chart shows roughly maybe 14, 15 milligrams, if I can estimate off from here correctly.
    Q. Dr. Townsend, let me interrupt you. I think you said the graph starts in 1996.
    A. I'm sorry, 1956.
    The dash line is the sales-weighted nicotine level in the U.S. market, and in 1956 the nicotine level, if I can eyeball it across there, is about 2.6 milligrams per cigarette, and then the nicotine level declines to about, oh, say little over .9 in 1989.
    These data are actually consistent with data that we've -- we've generated internally to R. J. Reynolds.
    *32 The other thing that Dr. Samet shows here is the introduction of some of the main design tools that we've -- that the industry has developed for general tar and general nicotine reduction.
    Q. What's the significance of the data on this chart to you as a cigarette designer, Dr. Townsend?
    A. The main significance is that the design tools that have been developed and in place in the market have made a major reduction in the tar and nicotine level in the U.S. market over time.
    Q. Could you sit down now and we'll proceed?
    MR. CIRESI: I think the record should reflect that I think the chart starts in '55, not '56.
    MR. WEBER: '55.
    THE WITNESS: But the first data point is '56.
    MR. CIRESI: Okay.
    MR. WEBER: I'm going to have to get better at this, Your Honor. I'll just take a second.
 (Easel moved.)
    MR. WEBER: I'm going to leave this up for a moment. Is that okay?
BY MR. WEBER:
    Q. Dr. Townsend, in the course of this general reduction we've been speaking about, have specific constituents been reduced as part of this?
    A. Yes. Through general reduction, of course, by reducing tar and nicotine both, and reducing tar, one reduces all the constituents of smoke more or less to the same degree, so certainly the -- the mainstream constituents in smoke are reduced pretty much as -- as you see there on -- on the chart.
    Q. Could you turn to tab 31, which is X0523.
    A. Yes.
    Q. And is that a chart that represents the reduction in benzpyrene in a Winston over a period of years?
    A. Yes.
    MR. WEBER: Your Honor, I'd move the admission of X0523 for demonstrative purposes.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive X0523 for illustrative purposes.
BY MR. WEBER:
    Q. Could you discuss the significance of this chart, Dr. Townsend.
    A. Yes, I will.
    As a result of general reduction of tar, what we've seen is also a major reduction in various smoke constituents. This exhibit shows you the effect on benzpyrene over the years. It's starting -- actually it's a two-year comparison. Starting in 1956 we measured about 52 nanograms of benzpyrene per cigarette, 52 billionths of a gram; in 1992 we measured, for Winston King Size cigarette, about 10 nanograms. So you see there's been a major reduction in the benzpyrene that's pretty much more or less paralleled the tar reduction.
    Q. Now Dr. Townsend, could you turn to tab 32, that is X1261, and let me ask whether that's a chart that relates to tar levels -- (clearing throat) excuse me -- of R. J. Reynolds as compared to the industry sales-weighted average?
    A. Yes, it is.
    Q. Would that help you in your testimony in describing these techniques?
    A. Yes.
    MR. WEBER: Your Honor, we'd move the admission of X1261 for demonstrative purposes.
    MR. CIRESI: Your Honor, may I have some foundation as to who prepared this and where it came from?
BY MR. WEBER:
    Q. Dr. Townsend, how was this chart prepared?
    *33 A. Staff under my direction collected the data from internal R. J. Reynolds data.
    MR. WEBER: I'd move X1261 for demonstrative purposes.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive X1261 for illustrative purposes.
BY MR. WEBER:
    Q. Now Dr. Townsend, let's start with the orange line in the middle. Is that an industry sales-weighted number?
    A. The orange curve in the middle of the chart in fact is an industry sales-weighted tar level, actually very similar to what we've seen on Samet's chart. Slightly different scaling, because we, you know -- but it goes over a similar time period and shows the dramatic reduction in tar level on a sales- weighted basis.
    Q. Now what does the -- I'm a little color bind, looks like a purplish line on top, could you describe that for us.
    A. Yes. Well I'll -- I'll describe both of them. But the purple curve on the top is the highest tar products that Reynolds marketed, manufactured and sold in any given year, as a function of time actually. The yellow curve on the bottom is the tar level, the lowest tar level product that R. J. Reynolds manufactured and sold in a given year. And if you look at this chart, you see -- I think there's two major important conclusions. First is that way back in the '50s, in the mid-'50s, there was a range of products offered to the consumer by my company, but the range is -- is -- looks like it ranges from about 38 to 50 milligrams per cigarette, so maybe a 12-milligram range. If you move out to 1986 you'll notice that the range is much bigger. R. J. Reynolds offers a much larger range of products to -- to smokers than it used to.
    The other thing is that the -- that the high and low products offered by -- by Reynolds have come down, pretty much paralleling the sales-weighted average, and the highest tar products sold by Reynolds today is substantially lower than the lowest tar products sold by Reynolds back in the '50s. So not only has the tar level come down, but the maximum, the highest tar level product is lower than the lowest tar product we used to sell. And the range is bigger. And you'll notice that the range in tar level, if you look at the yellow curve, goes down almost to zero, and in fact there are products that Reynolds sells and our competitors sell as well that have levels of tar and nicotine so low that it's very difficult to measure those levels.
    MR. WEBER: Your Honor, I don't know what the court's intention is as to a break. I can obviously adjust any way.
    THE COURT: Are you going to a different area, or --
    MR. WEBER: Well I'm -- I could -- I've got some more follow- up in this area, but I could break now or I could continue, whatever the court's preference is.
    THE COURT: All right. Why don't you approach the bench now, counsel.

    THE COURT: Ladies and gentlemen, we'll recess for lunch and reconvene at quarter to 2:00.
    *34 THE CLERK: Court stands in recess, to reconvene at 1:45.
 (Recess taken.)

*1 TITLE:       STATE OF MINNESOTA AND BLUE CROSS AND BLUE SHIELD OF MINNESOTA, PLAINTIFFS, V. PHILIP MORRIS, INC., ET. AL., DEFENDANTS.
TOPIC:          TRIAL TRANSCRIPT
 TRANSCRIPT OF PROCEEDINGS
DOCKET-NUMBER:  C1-94-8565
VENUE:          Minnesota District Court, Second Judicial District, Ramsey County.
YEAR:           March 30, 1998
 P.M. Session

JUDGE:          Hon. Judge Kenneth J. Fitzpatrick, Chief Judge

AFTERNOON SESSION.

    THE CLERK: All rise. Court is again in session.
 (Jury enters the courtroom.)
    THE CLERK: Please be seated.
    THE COURT: Counsel.
    MR. WEBER: Thank you, Your Honor. Good afternoon, Dr. Townsend.
    THE WITNESS: Good afternoon.
    MR. WEBER: Good afternoon, ladies and gentlemen.
 (Collective "Good afternoon.")
BY MR. WEBER:
    Q. Dr. Townsend, having in mind the efforts of R. J. Reynolds in the general reduction area that we were discussing before lunch, I'd like to address now what the external scientific community was suggesting regarding cigarette design and general reduction, and I'd like to start by asking you to turn to tab 33, which is Exhibit GJ000043.
    A. Okay.
    Q. Make sure I can get it. Okay.
    Now, is that a 1972 article that appeared in the Journal of the National Cancer Institute entitled "Sugar Content of the Tobacco and pH of the Smoke in Relation to Lung Cancer Risks of Cigarette Smoking?"
    A. Yes, it is.
    Q. And if you look at the first footnote there, is this a document that was presented at a workshop of the Second World Conference on Smoking and Health in London?
    A. Yes, it is.
    Q. And is this a document on which you rely with respect to matters of smoke chemistry and cigarette design?
    A. Yes.
    MR. WEBER: Your Honor, I'd move the admission of GJ000043 under 803(18).
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive GJ000043.
BY MR. WEBER:
    Q. Now this is a document from a publication from the Journal of the National Cancer Institute, 1972, and I want to ask you whether attached to the article, the last page, are a series of recommendations that members of the workshop made to the Second World Conference on Smoking and Health?
    A. The last page, and that's page 1891, is a list of recommendations from that workshop.
    Q. Now I'd like to start out with --
    And does this include recommendations to smokers, to manufacturers, and to governments?
    A. It includes recommendations to all three.
    Q. Let's go to paragraph one which relates to recommendations to smokers. Do you see that?
    A. Yes.
    Q. And the first one is -- it says "The smoker who at present cannot quit should practice the following," then it goes on to say don't inhale. Do you see that?
    *2 A. Yes.
    Q. Then it recommends to the smoker fewer puffs, not to smoke all the way down, and then what's the next recommendation that was made to the World Conference on Smoking and Health to -- recommendations to the smoker?
    A. It says to use low tar and low nicotine cigarettes.
    Q. Now could you move down to recommendation number two. And those are recommendations -- these are recommendations, again, made to the Second World Conference on Smoking and Health?
    A. Yes.
    Q. Paragraph two are recommendations made to manufacturers; correct?
    A. That's correct.
    Q. Could you read paragraph two.
    A. Yes. "Recognizing the difficulty of changing human smoking behavior, the Workshop stresses the need to modify tobacco products. The manufacturer should be encouraged to produce cigarettes with increasingly low -- lower tar and nicotine yields. This could be accomplished without legislation by self- policing and cooperation between the tobacco industries in various countries."
    Q. And does that recommendation urge cooperation in this effort among tobacco companies?
    A. Yes.
    Q. I'd like you to go down to the third recommendation where it talks about recommendations to governments. Do you see that?
    A. Yes.
    Q. Could you read a), the first recommendation to governments there.
    A. Yes. It says the "Government agencies should be responsible for:
    "The regular publication of tar and nicotine levels -- determined by international standardized techniques -- of all smoking products for dissemination to the public."
    Q. And is the FTC method a standardized test?
    A. Yes.
    Q. Now let's move later in the '70s. You should have a chapter 14 of the 1979 Surgeon General's report up there, both you and the court, in a separate copyset. That is previously admitted as PX3836.
    A. I'm sorry, which one?
    Q. Chapter 14.
    A. Oh, I see.
    Q. And could you turn to page 14-108 in chapter 14 of the 1979 Surgeon General's report.
    A. 14-108. 108, okay.
    Q. And what I'd like you to focus on is that top paragraph under "Tar." Would you read that first paragraph, please, --
    A. Yes.
    Q. -- from the 1979 Surgeon General's report.
    A. Yes. "In the experimental setting, a dose response has been established between tar application or smoke inhaled and tumor yield (reference 2 and 8). These data support epidemiological findings relating the amount of cigarette smoke inhaled and the likelihood of cancer of the oral cavity, cancer of the lung, cardiovascular disease, and respiratory disease in humans (references 14, 41 and 45). Thus, as long as warnings of health hazards from smoking are disregarded and as long as cigarettes are consumed, efforts towards a reduction of tar and smoke constituents which may contribute to these health hazards should be continued."
    Q. I think for the record you said "smoke constituents," but -- but I think does it not say "smoke components?"
    *3 A. At the end of the paragraph it says "efforts toward a reduction of tar and smoke components which may contribute."
    Q. Now what's the significance to you of that last sentence you just read?
    A. I think the significance is that as long as people continue to smoke, this modification of products to reduce the risk of smoking is a very useful thing and important thing to do.
    Q. And that's the Surgeon General in 1979?
    A. Yes.
    Q. Let's go to 1983 now. If you turn to tab 36, that's G -- Exhibit GI000009, five zeroes with a nine, and let me ask you if you recognize that as one of the reports, scientific reports of the Independent Scientific Committee on Smoking and Health of Great Britain?
    A. Yes, it is.
    Q. Are the reports of the Independent Committee -- Scientific Committee on Smoking and Health of Great Britain reports on which you and others in your profession reasonably rely on matters related to cigarette design and research?
    A. Yes.
    MR. WEBER: Your Honor, I'd move the admission under 803(18) of GI000009.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive GI000009.
BY MR. WEBER:
    Q. And I think that if you'd turn to page eleven, recommendation -- well the paragraph 36, the first paragraph under "CONCLUSIONS." Could you read that.
    A. Okay. Paragraph 36, "Cigarette manufacture has been undergoing a period of rapid change. We are encouraged by the decrease in tar yields over the last few years and recommend a continued reduction."
    Q. If I could stop you there, doctor, what does that mean to you?
    A. Well it -- they've seen a rapid reduction, an important reduction in tar yields. It means to me that they believe that that is a step in the right direction, and encouraging the industry to continue that.
    Q. Would you read the next sentence, please.
    A. "We have recommended that nicotine levels should, in general, continue to fall but that there should be available to the public some brands with very low levels of tar and a proportionately higher nicotine yield though this should not exceed about 1 milligram."
    Q. And what's the significance of that sentence to you, Dr. Townsend?
    A. I think this sentence is consistent with a number of other things I've read in the public -- in the public health domain suggesting that a cigarette with possible risk reduction or a cigarette that might be safer is one with reduced levels of tar, but maintaining some level of nicotine to ensure consumer acceptance of those products.
    Q. Now --
    And again, just for the record, this is a report by an independent scientific committee to the government of Britain.
    A. That's correct, the Froggatt Committee.
    Q. Could you turn now to tab 37, AM005051. And the last exhibit we just looked at was the third report of the Independent Committee -- Independent Scientific Committee. This is the fourth report; correct?
    A. That's right.
    *4 Q. And this one's dated 1988?
    A. That's right.
    Q. Published under the authority of the British government?
    A. Yes.
    Q. And with --
    Again, the reports of the Independent Scientific Committee on Smoking and Health are reports on which you and your field reasonably rely on matters relating to cigarette design and chemistry and matters of the like?
    A. Yes.
    MR. WEBER: Your Honor, I'd move the admission under 803(18) of AM005051.
    MR. CIRESI: No objection, Your Honor.
    THE COURT: Court will receive AM005051.
BY MR. WEBER:
    Q. And if you could turn in the summary up front, I believe it's on page two, Dr. Townsend, and read recommendation number eight in "Product Modification."
    A. Yeah. This is under a section called "Product Modification."
    Recommendation number eight says, "Government and the tobacco industry should consider what further action could be taken to persuade more smokers to favor low tar brands."