The Michigan Daily--,Thursday, June 11, 1981-cage 5
DOCTORS SPLIT OVER STOCK HOLDINGS
AMA refuses to sell tobacco stock

CHICAGO (AP)-The American Medical
Association yesterday refused to divest its pension
fund of $1.4 million in tobacco stocks, despite the
urging of doctors who said the group should not profit
from a leading cause of death.
The AMA's House of Delegates defeated the
proposal by a voice vote that appeared decisive but
close.
"I'M TERRIBLY embarrassed that the issue of
cigarette stock ownership has to be defended by my
profession," said Dr. Alan Blum, a family prac-
titioner from Chicago who introduced the anti-tobac-
co resolution two years ago.
"This is an industry that has tainted the families
and lives of millions of Americans," he said. "The
tobacco companies are worse than any drug pusher
ever. They are responsible for more deaths than
heroin, handguns and all drugs combined."
The American Tobacco Institute had no immediate
comment on the AMA action.
THE SURGEON General's Office in Washington
said in its latest smoking report that "consumers
should be cautioned that even the lowest yield of
cigarettes presents health hazards very much higher

than would be encountered if they smoked no cigaret-
tes at all."
The report, issued in January, said "there is no
safe cigarette and no safe level of consumption."
Dr. JohnCoury, vice-chairman of the AMA's board
of trustees, said the association cannot legally tell its
investment manager, the Bank of NewYork, how to
handle its investments.
ASSISTANT AMA General Counsel Edward Streich
said a 1974 decision by the Securities and Exchange
Commission-prohibits the AMA board from directing
its investments in any way other than to chose in-
vestment counselors.
The SEC ruled, ,Streich said, that if the AMA
retained decision-making powers over its financial
investments, the group would be treated as an in-
vestment company and would be subject to federal
laws regulating such companies. The AMA chose not
to do that and gave complete fiduciary control to the
bank.
"The AMA can ask, but it can't demand" that in-
vestors sell tobacco stocks, Streich said.
THE PROPOSAL, sponsored by the AMA Resident
Physicians" Section, favored divesting the doctors'

pension fund of $1.4 million worth of tobacco stock it
now holds. This stock represents roughly 1 percent of
the AMA's total retirement investments.
The pension plan has 3,500 participants out of a
total 232,000 AMA members, a spokeswoman said.
She said the total equity of the fund is $139 million.
Spe'aking in support of the proposal, Dr. Donald
Winston of Houston said: "Tobacco is the No. 1
preventable cause of death and disability in the
United States. To support it is embarrassing to the
AMA."
BLUM ALSO SAID he believes the action Wed-
nesday by the AMA's House of Delegates will not be
the final word.
"This is the kind of issue that will spark greater
thinking by the AMA in the future," Blum said. He
predicted the AMA eventually would ban investments
in all cigarette companies.
"Unfortunately," he said, "people will perceive
that the AMA is not now acting in the public interest."
The American Cancer Society said it would have no
comment on the vote.


PRE-SEASON SALE OF THE-RICHEST SUEDE TOPPERS FOR MISS J.

Super-soft velour suede: the luxurious way to go
undercover when autumn arrives. In sizes 5 to 13. f
Left: New blazer is a cropped, collarless clutch;
unconstructed and pocketed. Black or camel, $92.
Sale ends June 30.
Use our deferred billing plan for winter outerwear
purchases with no payment due until October.

Right: Blouson-styled jacket with a zip front,
trapunto-stitched collar, button cuffs, slash
pockets. In woodviolet, toast or taupe, $108.
Jacob son's
OPtEN THURSDAY AND FRIDAY UNTIL 9:00 P.M.