They both disapproved of / were annoyed with other people smoking the weed of the halflings.
I don't have the books with me to give you exact quotes, but the situations were these:
- Legolas with his companions in the ruins of Isengard (Flotsam and Jetsam)
- Saruman with Gandalf at the White Council, before he took up the habit himself (somewhere in Unfinished Tales).
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