04/FEB/96 CBS 60 MINUTES Part I


           *   Mike Wallace, CBS 60 Minutes correspondent

           *   Dr. Jeffrey S. Wigand, Former B&W executive

           *   Gordon Smith, Brown and Williamson attorney

           *   Mike Moore, Attorney General of Mississippi

           *   Thomas Sandefur, former President/CEO B&W

           *   Merrell Williams, former paralegal for B&W law
               firm [shown only on camera]

           *   Dr. Stanton Glantz, Professor of Medicine,
               University of California Medical Center, San

           *   Kendrick Wells, assistant general counsel,
               formerly staff attorney, B&W [shown only on

           *   Lucretia Wigand, wife of Dr. Jeffrey Wigand

           *   Two daughters of Dr. & Mrs. Wigand [only seen at
               distance on camera]


Wallace:   [voiceover showing footage of Dr. Wigand in "60
           Minutes" frame]
           Which is true?

           [voiceover showing footage of Gordon Smith in "60
           Minutes" frame]
           What the tobacco men at Brown & Williamson say about
           their former research director, Dr. Jeffrey Wigand ...

Smith:     His life has been a pattern of lies.

Wallace:   [voiceover showing footage of Mike Moore in "60
           Minutes" frame]:
           or what the Attorney-General of Mississippi says about

Moore:     The information that Jeffrey has, I think is the most
           important information that has ever come out against
           the tobacco industry.

Wallace:   [voiceover showing footage of Dr. Wigand in "60
           Minutes" frame]
           Tonight, Jeffrey Wigand, the scientist whose
           insistence on defying his former employer has led him
           to tell what he believes to be the truth about

           What is it that he believes to be the truth about
           cigarettes?  And what is it that Brown & Williamson
           believes to be the truth about him?

                           [Beginning of segment]

Wallace:   [in studio]
           A story we set out to report six months ago has now
           turned into two stories: how cigarettes can destroy
           peoples' lives and how one cigarette company is trying
           to destroy the reputation of a man who refused to keep
           quiet about what he says he learned when he worked for
           them.  The company is Brown & Williamson, America's
           third largest tobacco company.

           [speaking in front of backdrop showing picture of Dr.
           Wigand surrounded by cigarette packs and title of
           segment: Jeffrey Wigand Ph.D.  Produced by Lowell

           The man they set out to destroy is Dr. Jeffrey Wigand,
           their former three-hundred-thousand-dollar-a-year
           director of research.  They employed prestigious law
           firms to sue him, a high-powered investigation firm to
           probe every nook and cranny of his life.  And they
           hired a big-time public relations consultant to help
           them plant damaging stories about him in the
           Washington Post, the Wall Street Journal, and others.
           But the Journal reported the story for what they
           thought it was: "scant evidence" was just one of their

           CBS management wouldn't let us broadcast our original
           story and our interview with Jeffrey Wigand because
           they were worried about the possibility of a
           multi-billion dollar lawsuit against us for tortious
           interference, that is, interfering with Wigand's
           confidentiality agreement with Brown & Williamson.

           But now, things have changed.  Last week, the Wall
           Street Journal got hold of and published a
           confidential deposition Wigand gave in a Mississippi
           case, a November deposition that repeated many of the
           charges he made to us last August.

           And while a lawsuit is still a possibility, not
           putting Jeffrey Wigand's story on "60 Minutes" no
           longer is.

Scene:     Dr. Wigand; video of Brown & Williamson Tower
           building, Louisville, KY; cigarettes and loose tobacco
           on conveyer belt; Dr. Wigand; Brown & Williamson Tower
           building, Louisville, KY; cigarettes in cigarette
           machine and loose tobacco on conveyer belt; footage of
           tobacco company executives swearing oath to tell truth
           before House Subcommittee on Health & Environment,
           April 1994

Wallace:   What Dr. Wigand told us in that original interview was
           that his former colleagues, executives of Brown &
           Williamson Tobacco, knew all along that their tobacco
           products, their cigarettes and pipe tobacco, contained
           additives that increased the danger of disease.  And
           further, that they had long known that the nicotine in
           tobacco is an addictive drug, despite their public
           statements to the contrary, like the testimony before
           Congress of Dr. Wigand's former boss, B&W's Chief
           Executive Officer Thomas Sandefur.

Sandefur:  [testifying before House Subcommittee on Health &
           Environment, April 1994]
           I believe that nicotine is not addictive.

Wigand:    [in office interview with Wallace]
           I believe he perjured himself because I watched those
           testimonies very carefully.

Wallace:   All of us did.  There was the whole line of people,
           the whole line of CEOs up there all swearing that ...

Wigand:    [in office interview with Wallace]
           Part of the reason I'm here is I felt that their
           representation clearly, at least within Brown &
           Williamson's representation, clearly misstated what
           they commonly knew as language within the company.
           That we're a nicotine delivery business.

Wallace:   And that's what cigarettes are for?

Wigand:    Most certainly.  It's a delivery device for nicotine.

Wallace:   A delivery device for nicotine?  Put it in your mouth,
           light it up, and you're gonna get your fix?

Wigand:    You'll get your fix.

Wallace:   [in CBS office]
           Dr. Wigand says that Brown & Williamson manipulates
           and adjusts that nicotine fix, not by  artificially
           adding nicotine, but by enhancing the effect of the
           nicotine through reuse of chemical additives like
           ammonia, whose process is known in the tobacco
           industry as "impact boosting."

Wigand:    While not spiking nicotine.  They clearly manipulate


                  -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
                 |                                            |
                 |                   B&W                      |
                 |       ROOT TECHNOLOGY: A HANDBOOK          |
                 |           FOR LEAF BLENDERS                |
                 |         AND PRODUCT DEVELOPERS             |
                 |                                            |
                  -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

           The process is described in Brown & Williamson's leaf
           blender's manual and in other B&W documents.

Wigand:    There's extensive use of this technology which is
           called ammonia chemistry that allows for nicotine to
           be more rapidly absorbed in the lung and therefore
           affect the brain and central nervous system.

Scene:     file drawer full of numbered folders; computer screen
           showing Brown & Williamson documents on World Wide
           Web; Merrell Williams walking down street; Dr. Stanton
           Glantz in his office; JAMA July 19, 1995 issue on Dr.
           Glantz's desk

Wallace:   And then there are these documents, thousands of pages
           of confidential scientific reports and legal memoranda
           from B&W's secret files, which experts say support Dr.
           Wigand's claim that Brown & Williamson's executives
           had had strong reason to believe all along that
           nicotine is addictive and that their tobacco products
           cause cancer and other diseases.

           Most of these documents had been locked away in B&W's
           lawyers' confidential files in Louisville, Kentucky
           until this man, the paralegal in that law office,
           Merrell Williams, walked off with them.

           The documents found their way to Dr. Stanton Glantz, a
           professor of medicine at the University of California
           Medical Center in San Francisco.  It was Dr. Glantz
           and a team of scientists from the university who wrote
           about the documents this past summer in a series of
           articles in the Journal of the American Medical

Wallace:   [to Glantz in Dr. Glantz's office]
           What is the story that the documents told you?

Glantz:    They told me that thirty years ago, Brown & Williamson
           and British American Tobacco, its parent, knew
           nicotine was an addictive drug and they knew smoking
           caused cancer and other diseases.

Wallace:   [voiceover video showing Dr. Glantz looking through
           some documents]
           And Dr. Glantz says these documents reveal how Brown &
           Williamson was keeping that knowledge from the public.

Glantz:    And they also developed very sophisticated legal
           strategies to keep this information away from the
           public, to keep this information away from public
           health authorities.

Wallace:   Dr. Wigand said that a cigarette is basically a
           nicotine delivery instrument.  That's what it's really
           all about.

Glantz:    Yes, absolutely.  And in the documents they say that
           over and over and over again.

Wallace:   [voiceover footage of smokers smoking cigarettes]
           And finding a way to deliver that nicotine to the
           smoker's brain without exposing smokers to
           disease-causing pollutants like tar that come with
           tobacco smoke is one reason, says Dr. Wigand, that he
           was hired by B&W on January 1st, 1989.

Wigand:    [in office interview with Wallace]
           They were looking to reduce the hazards within
           cigarettes, reduce the carcinogenic components or the
           list of the carcinogens that were within the tobacco

Wallace:   They talked about carcinogens too?

Wigand:    They talked about carcinogens.

Wallace:   They talked about cancer and heart disease and
           emphysema and all of those things and they were going
           to work toward making a safer cigarette?

           You must have been very excited.

Wigand:    I was enthusiastic and energetic in terms of pursuing

Wallace:   [voiceover video showing Dr. Wigand perusing books on
           shelves at home]
           Dr. Jeffrey Wigand, with a doctorate in biochemistry,
           had spent nearly twenty years of working in the
           health-care and biotechnology industries.  He says his
           goal at B&W was to make a cigarette that would be less
           likely to cause disease.

Wigand:    [in office interview with Wallace]
           People will continue to smoke no matter what, no
           matter what kind of regulations.  If you can provide
           for those who are smoking, who need to smoke,
           something that produces less risk for them.  I thought
           I was going to be making a difference.

Wallace:   [voiceover]
           Brown & Williamson made Jeff Wigand Vice-President for
           R&D, paying him more than three hundred thousand
           dollars a year in salary and perks.

Wigand:    [in office interview with Wallace]
           And I was very inquisitive when I came on.  Have you
           ever done any nicotine studies?  Have you done any
           pharmacology studies?  Have you done any biological
           studies?  Have you looked at the effect of nicotine on
           the central nervous system?  And always, generally
           categorically "No, we don't do that kind of work."

Wallace:   [voiceover showing Brown & Williamson Tower,
           Louisville, KY]
           But according to thousands of pages, from B&W and its
           parent British American Tobacco's confidential files,
           the company had, in fact, done exactly those kinds of

           [voiceover showing Dr. Wigand at computer]
           Dr. Wigand says he did not suspect there was anything
           wrong until he attended a meeting of scientists who
           worked for  British American Tobacco companies from
           around the world.  Dr. Wigand says that his colleagues
           talked about working together to develop a safer, a
           less hazardous cigarette, a cigarette less likely to
           cause disease.  But when it came time to write up
           their ideas, to create a documentary record of their
           discussion, B&W's lawyers intervened.

Wigand:    [in office interview with Wallace]
           The minutes that came in, they were roughly about
           eighteen pages long.  I knew what was in the content.
           They were rewritten by Kendrick Wells.  They were ...

Wallace:   Who is he?

Wigand:    Kendrick Wells was one of the staff attorneys at B&W.

Wallace:   And he rewrote the minutes of the meeting?

Wigand:    He rewrote the minutes of the meeting.  He edited out
           the discussions on uh safer cigarette and basically
           toned the meeting down ...

Wallace:   You're saying that one of the staff attorneys for B&W
           here in the United States whose name was ...

Wigand:    Kendrick Wells.

Wallace:   An attorney, rewrote the minutes of this research
           meeting with all of the research heads of BAT

Wigand:    That's correct.

Wallace:   in order to sanitize it, in effect?

Wigand:    Sanitize it as well as reduce any type of exposure
           associated with discussing a safer cigarette.  When
           you say you're going to have a safer cigarette, that
           now takes everything else that you have available and
           say it is unsafe.  And that, from a product liability
           point of view, gave the lawyers great concern.

Wallace:   [voiceover footage showing Kendrick Wells walking down
           Kendrick Wells, the lawyer Dr. Wigand says deleted
           materials from the minutes of the scientific meeting
           is now the assistant general counsel of B&W.

           Why would B&W lawyers like Kendrick Wells be so

           According to B&W's own confidential files, any
           evidence, any documents that show any B&W tobacco
           products like Kools or Viceroys might be unsafe, those
           documents would have to be produced in court as part
           of any lawsuit filed by a smoker or his surviving

           And according to the lawyers, those documents could be
           disastrous for B&W.

           [to Wigand in office interview]
           For the lawyers to hold ...

Wigand:    The lawyers intervene and then they purge documents.
           And every time there was a reference to the word "less
           hazardous" or "safer."

Wallace:   [voiceover showing Dr. Wigand sitting at his desk]
           But Dr. Wigand says the lawyers' interference, their
           editing and review of his reports, did not stop him.

Wigand:    I started asking more probing questions and I started
           digging deeper and deeper.  As I dug deeper and
           deeper, I started getting a bodyguard.

Wallace:   What do you mean, bodyguard?

Wigand:    I went to a meeting.  I now was now accompanied by a
           lawyer.  My bodyguard was Kendrick Wells.

Wallace:   [voiceover showing Dr. Wigand sitting at his desk;
           photo of Thomas Sandefur holding hand on forehead]
           Frustrated by the lawyer's intervention and presence
           at major scientific meetings, Dr. Wigand says he took
           his complaints to Thomas Sandefur, then the president
           of B&W.

Wallace:   [to Wigand]
           What did he say to you?

Wigand:    I don't want to hear any more discussion about a safer

Wallace:   [voiceover photo of Thomas Sandefur at hearing table
           with outstretched arm]
           And he says Thomas Sandefur went on to tell him ...

Wigand:    "We pursue a safer cigarette, it would put us under
           extreme exposure with every other product.  I don't
           want to hear about it anymore."

Wallace:   All the people who were dying from cigarettes?

Wigand:    Essentially, yes.

Wallace:   Cancer?

Wigand:    Cancer.

Wallace:   Heart disease, things of that nature?

Wigand:    Emphysema.

Wallace:   [voiceover showing a smiling Thomas Sandefur at
           hearing, April 1994]
           Lawyers representing B&W and Thomas Sandefur have said
           that all this as well as other accounts of
           conversations with Thomas Sandefur are absolutely

           [voiceover showing Dr. Wigand in office interview with
           We asked Dr. Wigand what his reaction was to what he
           says was Sandefur's decision to abandon the safer

Wigand:    I said I got angry.

Wallace:   He was your boss.

Wigand:    I bit my tongue.  I had just transitioned from
           another, one company to another.  Uh, I was paid well
           and was comfortable.  And for me to do any precipitous
           would put my family at risk.

Wallace:   You were happy to take down the three hundred thousand
           bucks a year?

Wigand:    I essentially, yeah, took the money.  I did my job.

Wallace:   [in his own CBS office]
           So Dr. Wigand abandoned his idea of trying to develop
           a new and safer cigarette.  He turned his attention to
           investigating the additives, the flavorings, the other
           compounds in B&W tobacco products.  Many, like
           glycerol, which is used to keep the tobacco in
           cigarettes moist, are normally harmless.  But when
           glycerol is burned in a cigarette, its chemistry

Wigand:    [in office interview with Wallace]
           Glycerol, when it's burnt, forms a, a very specific
           substance called acrolein.

Wallace:   According to the American Council on Science and

                  -- -- -- -- -- -- -- -- -- -- -- -- -- --
                 |                                         |
                 |  "Acrolein is extremely irritating      |
                 |  and has been shown to interfere        |
                 |  with the normal clearing of the        |
                 |  lungs. Recent research shows           |
                 |  that acrolein acts like a carcinogen,  |
                 |  though not yet classified as such..."  |
                 |                                         |
                  -- -- -- -- -- -- -- -- -- -- -- -- -- --

           "acrolein, or 'acroli-en' is extremely irritating and
           has been shown to interfere with the normal clearing
           of the lungs.  Recent research shows that acrolein
           acts like a carcinogen, though not yet classified as

           [voiceover footage showing young people smoking]
           And Dr. Wigand says that B&W continues to add glycerol
           to their products.

           But it was another additive that Dr. Wigand says led
           to the end of his career at B&W.

Wigand:    [in office interview with Wallace]
           The straw that broke the camel's back for me and
           really put me in trouble with Sandefur was a compound
           called coumarin.

Wallace:   [voiceover video showing young woman smoking;
           documents on which clearly written "% COUMARIN"]
           Coumarin is a flavoring that provides a sweet taste to
           tobacco products but is known to cause tumors in the
           livers of mice.  It was removed from B&W cigarettes,
           but according to these documents, B&W continued to use
           it in its Sir Walter Raleigh aromatic pipe tobacco
           until at least 1992.

Wigand:    [in office interview with Wallace]
           And when I came on board B&W, they had tried to tran,
           transition from coumarin to another similar flavor
           that would give the same taste.  And it was

Wallace:   [voiceover]
           Dr. Wigand says the news about coumarin and cancer got

                  -- -- -- -- -- -- -- -- -- -- -- --
                 |                                   |
                 |  "TOXICOLOGY AND CARCINOGENESIS:  |
                 |       STUDIES OF COUMARIN         |
                 |        (CAS NO. 91-64-6)          |
                 |    IN F344/N RATS AND B63CF 1     |
                 |      MICE (GAVAGE STUDIES)        |
                 |                                   |
                  -- -- -- -- -- -- -- -- -- -- -- --

           This report, by independent researchers, part of a
           national toxic safety program, presented evidence that
           coumarin is a carcinogen that causes various cancers.

Wigand:    [in office interview with Wallace]
           I wanted it out immediately.  And I was told that it
           would affect sales and I was to mind my own business.
           And then I constructed a memo to Mr. Sandefur
           indicating that I could not in conscience continue
           with coumarin in a product that we now know, have
           documentation that is lung-specific carcinogen.

Wallace:   Really?  You sent the document forward to Sandefur?

Wigand:    I sent the document forward to Sandefur.  I was told
           that we would continue working on a substitute and we
           weren't going to remove it because it would impact
           sales and that, that was his decision.

Wallace:   In other words, what you're charging Sandefur with and
           Brown & Williamson with is ignoring health
           considerations consciously?

Wigand:    Most certainly.

Wallace:   [voiceover video showing Dr. Wigand at his office
           After his confrontations over coumarin, Dr. Wigand
           says he was not surprised when on March the 24th,

           1993, Thomas Sandefur, newly promoted to Chief
           Executive Officer, CEO of B&W, had him fired.

           [to Wigand in office interview]
           And the reason for firing that he gave you?

Wigand:    Uh, Poor communication skills, uh, just not cuttin'
           it, poor performance.

Wallace:   [voiceover video showing Dr. Wigand, his wife and two
           daughters saying grace before meal at home]
           When Dr. Wigand, who has a wife and two young
           daughters, was fired by Brown & Williamson Tobacco,
           his contract provided severance pay and critical
           health benefits for his family, critical because one
           of his children requires expensive daily health-care.

           [voiceover showing video of Mrs. Wigand serving
           Several months after he was fired, B&W decided to sue
           their former head of R&D and they cut off his
           severance and those vital health benefits.

Wigand:    [in office interview with Wallace]
           They said I violated my confidentiality agreement by
           discussing my severance package.

Wallace:   [voiceover video showing Jeffrey and Lucretia Wigand
           walking together]
           Lucretia Wigand says that the firing and B&W's
           suspension of benefits was devastating.

Lucretia Wigand:
           [in office interview with Wallace]
           We almost lost our family as a unit.  Jeff and I
           almost separated.

Wallace:   Why?

Lucretia Wigand:
           Because he was under so much stress and so much
           pressure that it was something we needed help dealing
           with.  We went to counseling and we worked through it.

Wallace:   And this was, you think, started, triggered by the
           business with B&W.

Lucretia Wigand:
           Yes, I know it was.

Wallace:   [voiceover video showing Jeffrey and Lucretia Wigand
           at home in kitchen; "Dear Jeff" confidentiality
           B&W settled that lawsuit we mentioned and reinstated
           those critical health benefits, only after Dr. Wigand
           agreed to sign a new, stricter, lifelong
           confidentiality agreement.

           [in CBS office]
           Nonetheless, word of Dr. Wigand's battles with Brown &
           Williamson attracted attention in Washington, where in
           the Spring of 1994, a Democratic Congress and the FDA,
           the Food and Drug Administration, were investigating
           the tobacco industry.  Dr. Wigand was contacted by
           their investigators.  And after notifying Brown &
           Williamson, he talked with those investigators.

           Shortly afterwards, he was stunned by a couple of
           anonymous telephone calls.

Wigand:    [in office interview with Wallace]
           In April 1994, on two separate occasions, I had life
           threats on my kids.

Wallace:   What?

Wigand:    We had life threats on my kids.

Wallace:   [showing Dr. Wigand referring to his diary]
           Dr. Wigand told us he doesn't know where they came
           from, but that, understandably, they frightened him.

           He described the threats by referring to his diary.

Wigand:    [reading from his diary]
           A male voice that was on the phone that said: "Don't
           mess with tobacco anymore.  How are your kids?"

           And then on April 28th, around 3 o'clock in the
           afternoon, relatively the same voice, says: "Leave
           tobacco alone or else you'll find your kids hurt.
           They're pretty girls now."

           So I got scared.  I started carrying a gun.

Wallace:   Really?

Wigand:    Yeah, started carrying a handgun.

Lucretia Wigand:
           [in office interview with Wallace]
           Someone called and threatened to, to kill him and to
           hurt the family if he messed with the tobacco

Wallace:   [in studio with segment backdrop depicting Dr. Wigand]
           That was last August.  Now, in February, Lucretia
           Wigand has filed for divorce, citing spousal abuse,
           just one of the accusations Brown & Williamson is
           using in their full-throated campaign to discredit
           Jeffrey Wigand.

           That report when we return.

                04/FEB/96 CBS 60 MINUTES Part II


           *   Mike Wallace, CBS 60 Minutes correspondent

           *   Dr. Jeffrey S. Wigand, Former B&W executive

           *   Mike Moore, Attorney General of Mississippi

           *   John Scanlon, Media Consultant

           *   Gordon Smith, Brown and Williamson attorney

           *   Hubert Humphrey III, Minnesota Attorney General

           *   Bob Butterworth, Attorney General of Florida

Wallace:   [in studio]
           Today, three years after he was fired by Brown and
           Williamson, Dr. Jeffrey Wigand is the star witness in
           a U.S. Justice Department criminal investigation into
           the tobacco industry, which includes the question of
           whether B&W's former CEO lied to the U.S. Congress
           when he said that he believed that nicotine was not
           addictive.  But Dr. Wigand is paying a heavy price for
           his decision to testify as well as for breaking his
           confidentiality agreement by talking to us.  His
           family life has been shattered.  His reputation has
           been tarnished because of B&W's massive campaign
           designed to silence him and to discredit this former
           research chief turned whistle-blower.

           [to Wigand]
           They're trying to do what they can to paint you as
           irresponsible, a liar.

Wigand:    Well, I think the word they've used Mike is, "The
           Master of Deceit."

Wallace:   You wish you hadn't come forward?  You wish you hadn't
           blown the whistle?

Wigand:    [hesitating]
           There are times I wish I hadn't done it.  But there
           are times that I feel compelled to do it.  Uh, if, if
           you asked me if I would do it again or if it, do I
           think it's worth it.  Yeah.  I think it's worth it.
           Uh, I think in the end people will see the truth.

Wallace:   [in studio]
           Well these three men have seen the same truth as
           Wigand.  They are the state Attorneys' General of
           Florida, Minnesota and Mississippi where Dr. Wigand is
           testifying in a multi-billion dollar lawsuit against
           the tobacco industry.  Mike Moore is Attorney General
           of Mississippi.

Moore:     Uh, Jeffrey's testimony is gonna be devastating, Mike,
           to the tobacco industry.  Uh, so devastating that I
           fear for his life.  Uh, I think, uh ...

Wallace:   You serious?

Moore:     I'm, I'm very serious.  Uh, the information that
           Jeffrey has, I think, is the most important
           information that has ever come out against the tobacco
           industry.  Uh, this industry, in my opinion, is an
           industry who has perpetrated the biggest fraud on the
           American public in history.  Uh, they have lied to the
           American public for years and years.  They have killed
           millions and millions of people and made a profit on
           it.  So, uh, I hope that they won't continue to lie
           and try to destroy Jeffrey like they destroyed the
           other lives of people all over this country.

Wallace:   [in studio]
           The campaign to destroy Dr. Jeffrey Wigand began over
           two months ago in the midst of a media frenzy over our
           failure to broadcast our August interview with him.
           Brown and Williamson sued Dr. Wigand for talking to us
           despite his confidentiality agreement and they got a
           court order in Kentucky to try to silence him from
           speaking out further.

           [against scene of wall with sign, "The Investigative
           Group, Inc."]
           Then investigators hired by B&W fanned out across the
           country looking for anything they could use to
           discredit the whistle-blower.

Wigand:    They been going around to my family, my friends,
           digging up and digging here and digging there.

Wallace:   [in studio]
           Then their lawyers, and B&W has a half dozen major
           firms working on the Jeff Wigand case.  Their lawyers
           compiled the results of their nationwide dragnet into
           a summary that alleges that in recent years Dr. Wigand
           plead guilty to everything from wife-beating to
           shoplifting.  Beyond that they charged him with a
           multitude of sins from fudging his resume to making a
           false claim three years ago for ninety-five dollars
           and twenty cents for dry cleaning.

           [against scene of John Scanlon walking down a New York
           Then Brown and Williamson retained John Scanlon to get
           their story to the media.

           Scanlon is a fixture of the New York media scene who
           has close personal relationships with print and
           television reporters and producers as well as editors
           and publishers.  We asked him to sit down and discuss
           the charges he has been circulating to me and other
           reporters but he declined.  But Scanlon did make this
           statement to a CBS News camera crew.

Scanlon:   He's running ... from cross-examination.  His victims
           have decided to respond and present evidence that
           he's, in fact, a habitual liar.

Wigand:    [in studio interview]
           The smear campaign that's been very systematic, very
           organized, very well-done.

           [in classroom to students]
           My background is, I have a PH.D. in biochemistry.

Wallace:   [in studio]
           Today Dr. Wigand is a 30,000 dollar a year science
           teacher at a Louisville Kentucky public high school.
           And his students, his faculty colleagues, and his
           family were stunned last month when a Louisville
           television station broadcast some of Brown and
           Williamson's accusations.

Local News Anchor:
           [broadcasting local news]
           Court records show Wigand was charged with theft by
           unlawful taking and shoplifting.

Wallace:   [in studio]
           Then the Brown and Williamson 500-page dossier on
           Wigand was given to the Wall Street Journal, who
           investigated the charges.  And last Thursday in this
           front page story, the journal reported, quote,

                  -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
                 |                                            |
                 |  "A close look at the file and independent |
                 |  research by this newspaper into its key   |
                 |  claims indicates that many of the serious |
                 |  allegations against Dr. Wigand are backed |
                 |  by scanty or contradictory evidence."     |
                 |                                            |
                  -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

           A close look at the file and independent research by
           this newspaper into its key claims indicates that many
           of the serious allegations against Dr. Wigand are
           backed by scanty or contradictory evidence.  And they
           continued, quote,

                  -- -- -- -- -- -- -- -- -- -- -- -- -- --
                 |                                         |
                 |  "Some of the charges, including that   |
                 |  he pleaded guilty to shoplifting       |
                 |  are demonstrably untrue."              |
                 |                                         |
                  -- -- -- -- -- -- -- -- -- -- -- -- -- --

           Some of the charges, including that he pleaded guilty
           to shoplifting are demonstrably untrue.  We put that
           Journal statement to Gordon Smith, an attorney
           designated by Brown and Williamson to talk to us.

           [to Gordon Smith]
           The Wall Street Journal went through all of that
           material.  It says that, what the dossier that you put
           together, scant evidence ...

Smith:     Mr. Wallace, that is dead wrong.  There's not scant
           evidence.  The Wall Street Journal did not, did not go
           over the scores, literally scores of untruths told by
           Jeffrey Wigand that we showed to them.

Wallace:   [voiceover]
           And Gordon Smith went on at some length to say that
           Wigand's life quote, is a pattern of lies.

           [to Smith]
           I don't understand, frankly, Mr. Smith.  I really
           don't understand.  Brown and Williamson must be in a
           panic if they're going after this man as hard as you

Smith:     You're wrong.  There are no material inaccuracies in
           that book.  None whatsoever.

Wallace:   [voiceover]
           But not included in that dossier were Brown and
           Williamson's own personnel records which showed that
           Wigand had received good performance appraisals for
           the first three years from B&W.  In his fourth year,
           however, those appraisals turned sour.  But despite
           that, even after he was fired he received this letter
           from Brown and Williamson's personnel director.

           [reading letter to Smith]
           To whom it may concern.  Dr. Jeffrey Wigand was
           instrumental in the development of new products as
           well as the major impetus behind a significant upgrade
           in our R&D technical capabilities both in terms of
           people and equipment.  During his tenure at Brown and
           Williamson, Dr. Wigand demonstrated a high level of
           technical knowledge and expertise.

           [Referring to stationary on Smith's desk]
           At this is on your own stationary.  Your own man
           saying that about him.

Smith:     Mike, Brown and Williamson refused to be a reference
           for Jeff Wigand after he left.  This letter was
           negotiated with his attorney and it was the only
           statement Brown and Williamson would ever make about
           him because Brown and Williamson did not want to be a
           reference for Jeff Wigand.

Wallace:   [voiceover]
           And Mr. Smith had this to say about our relationship
           with Jeffrey Wigand.

Smith:     You're being led along by a guy who's not believable.
           You're getting half the story.  You, you, and you've
           got, you've got a, a vested interest in making this
           man credible.

Wallace:   Why do we have a ...

Smith:     CBS has an interest, paid this guy twelve thousand

Wallace:   For what?

Smith:     I believe for consulting.

Wallace:   Now, wait just a moment.  Let's get this straight.
           Paid him twelve thousand dollars for what?

Smith:     To consult on a story on CBS.

Wallace:   [in studio]
           For the record, as we explained to Mr. Smith, 60
           Minutes did, in fact, hire Dr. Wigand two years ago to
           act as our expert consultant to analyze nearly a
           thousand pages of technical documents leaked to us not
           from Brown and Williamson but from inside Philip
           Morris - another tobacco company.  At that time Dr.
           Wigand told us he would not talk with us about Brown
           and Williamson and he did not until over a year later.

Wigand:    I felt an obligation to tell the truth.  Uh, there
           were things I saw.  There were things I learned.
           There were things I observed that I felt that needed
           to be told.  The focus continues to be on what I would
           call systematic and aggressive tactics to undermine my
           credibility and my, some of my personal life.  Uh ...

Wallace:   But you expected that, didn't you?

Wigand:    Well, I didn't expect, to the extent that it's
           happened, okay?  Its, its disrupted not only my life.
           Uh, I'm in divorce proceedings now.

Wallace:   [voiceover in studio with three Attorneys General]
           These three state Attorneys General say that no matter
           B&W accusations are, they remain convinced that what
           Wigand has to say about the tobacco industry in
           general and Brown and Williamson in particular is
           thoroughly credible.  They are suing the tobacco
           industry for the billions of dollars in state Medicaid
           costs their states have paid to treat people who have
           become ill from smoking.

           Minnesota Attorney General Hubert Humphrey the third.

Humphrey:  We want to see the full truth come out.  We want the
           deception, fraud and the violations of our state laws
           stopped.  And we want people that are making the money
           on this product to bear the full cost of the health
           care uh, burden that is there.

Wallace:   [voiceover]
           Bob Butterworth is the Attorney General of Florida.

           The issue has been deceit.

Wallace:   Deceit?

           Pure and simply - deceit.  The cigarette companies
           made a decision that they would withhold valuable
           information from the American public, information that