wfn.org | Lexington Theological Seminary divests tobacco stock

["Wilma Shuffitt" <WILMAS@oc.disciples.org>]

Date: March 20, 1998
Disciples News Service
Christian Church (Disciples of Christ)
Contact: Clifford L. Willis
Email: CWillis@oc.disciples.org
on the web: http//www.disciples.org

98b -19

    LEXINGTON, Ky. (DNS) -- The board of trustees of
Lexington Theological Seminary, meeting March 9,  voted to divest
the seminary endowment portfolio of stocks of major tobacco
manufacturing companies. 

    The action was part of a larger objective to "weigh carefully its
social responsibilities with respect to both human and natural
resources" in making investment decisions, according to LTS 
officials. Trustees also voted to establish a "social conscience" 
screening  process for investments.

    The first use of the social conscience screen was focused on
tobacco manufacturing. In a lively debate, the board decided that the
seminary should not be in a position of supporting tobacco
manufacturing companies. 

    The board's decision was affected by its determination that the
product has no redeeming value, that research indicates tobacco
contributes to the untimely deaths of some 400,000 Americans a year,
along with millions worldwide, and that the companies themselves
appear to have been involved in troubling practices related to 
putting additives in tobacco products and targeting young people with their
advertising.

    "Lexington Theological Seminary is deeply concerned about
what is happening, and what is likely to happen, to tobacco farmers
and their families over the next few years," said the Rev. Richard L.
Harrison, Jr., president. 

    "Tobacco farmers are struggling over this issue. But they are
trapped. For many years, indeed, for centuries, tobacco has been one 
of the most profitable of all crops. Tobacco growing has been an 
essential factor in the survival of small farms across the Upper South. No 
other widely produced crop provides such a high per acre profit." 
 
    "It seems to me," stated Harrison, "that those who profit from
the work of tobacco farmers should help them out of their economic
and moral dilemma. Governments have received billions of dollars in
taxes from the labor of these farmers, and the manufacturing
companies have made hundreds of billions in profits. 

    "The proposals now being put forth in Washington to develop
a settlement that will provide for some form of compensation for
farmers needs to go forward, and they must be strengthened so as to
give these farmers a realistic opportunity to maintain their standard 
of living. Tobacco farmers often speak of wanting to be known as high
quality farmers and people. They have pride in their roles as 
producers in the agricultural community, and those who are Christians 
want the opportunity to continue to work the land, work which -- 
according to their Biblical faith -- has a spiritual dimension."

    The board acknowleged that Lexington Theological Seminary
has a long history of relationship with tobacco. Located in the
Bluegrass region of Kentucky, many of its students have received part
of their education for ministry by serving as student ministers of 
rural churches whose members grow tobacco. And, many of the seminary's
supporters, especially those in Kentucky, Virginia, and North
Carolina, have made gifts to the institution based in part on their
tobacco earnings.

    In recent years the seminary has worked with the Christian
Church (Disciples of Christ) in Kentucky in sponsoring a series of
conferences on the "Tobacco Church." These meetings have focused
on the issues related to southern rural churches that exist in 
tobacco fueled local economies.  The third in the series is scheduled for 
Aug. 28.

    "We will continue to explore the issues facing Christians living
in tobacco country," said Harrison. "We will work to support justice
for farmers while also supporting efforts to limit the spread of 
tobacco use among the young.

    "For us as an institution of the church, there is simply no
justification for choosing to invest our funds in tobacco
manufacturing," he said.  As for other areas of ethical investment, 
it is the intention of the "social conscience screen" to identify the areas 
of concern.  In most cases, the result would be to exercise proxies and
vote on issues brought before companies in which the seminary has
invested.

    "Generally, when a company or industry receives notoriety for
ethical wrongdoing, it has to do with policies and practices.  These
shortcomings can be addressed and challenged by stockholders,"
explained Harrison.  "In the case of tobacco, however, it is the 
product itself, as well as the practices of the companies, that makes 
compelling the decision to divest."

    Harrison added, "We are not naive.  We understand that in the
interconnectedness of the world's economy, it is not possible to have
 pure' investments.  However, when a corporation receives a heavy
proportion of its profit from a product that we understand from 
federal research causes so many deaths, so much suffering, and 
produces no good effect, we simply have to take a stand."

                 -- end --