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CONSUMERS UNION {| A NONPROFIT ORGANIZATION | PUBLISHER OF CONSUMER REPORTS

October 28, 1970

Dr. Joshua Lederberg
Genetics Department
Stanford University
Stanford, California

Dear Dr. Lederberg:

We are reminded of your suggestions for a consumer organization
for class action suits, as a result of a meeting we had this
week with our attorneys.

Prior to receiving your communication a suggestion had been
made that Consumers Union might function in this manner.

It was the unanimous opinion of the group discussing the
situation that CU should not undertake to perform this function.

Obviously, this is not the ideal moment to consider other alternatives
with the Internal Revenue Service threatening to revoke the tax
exempt privileges of organizations which seek to protect consumers
through class action suits. A cloud of uncertainty, if not of

doom, certainly hangs over the idea.

This is an area of great importance to consumers for the years
ahead and one which can only benefit from continued discussion.
We expect to have it on our agenda and would be happy to keep you
informed of any progress. In turn, we would be happy to have you
keep us informed of reactions that you receive or modifications
of your, thinking which may evolve.

Sincerely,

fo ° _ -_ ,

Robert L. Smith

Assistant Director

RLS/sm

256 WASHINGTON STREET / MOUNT VERNON, NEW YORK 10550