COST OF TOBACCO

Stratford Evening Post, Issue 56, 17 May 1928, Page 6

COST OF TOBACCO

PRICE-CUTTING WAR. STRONG FIGHT FUR CONTROL. NEW YORK, May 1. A reduction of tobacco prices throughout tli& world as a result of the tobaccoi "war" is expected by tlie market here.), following the announcement of American price reductions.' A W6>r Id-wide competition between the British and American companies is anticipated, with both fighting fiercely'for the control of the foreign markets. 'New York tobacco men have Predicted that' the battle will extend to< Australia, a; S well' as to every other part of the world within a few] months, resulting, temporarily at least,' in cheaper tobacco for the con.sn'mor., "

it has long liolen; reported that the Imperial Tobacco ppmpahy has pjancned' a further (invasion of the? American cigarette field.' The .biggest American '.companies- are preparing to retaliate by organising an invasion of tlie' British markets. Production in ' the country continues to increase, and an outlet must be found. Although the heads of big companies disclaimed the idea of a trade ■ war, they outlined plans tor the expanding Of the export business immediately after the pricecutting announcements.

Tobacco shares dropped on the stock market from 3 to 1;2 points, indicating 1 that traders are not sure of the eventual victory of American companies in the battle with the British.

The president of the American Tobacco Company, Mr Hill, however, declared that decreased prices, meaning increased sales throughout the world, would increase' manufacturers' profits..