London, Oct, 25.
The reduced market valuation in a week of over £10,000,000 in the shares of the Imperial Tobacco Ca, fand the British-American Tobacco Ca, has attracted attention in view of reports of an impending war with American interests.
Tt iv stated that the latter are about to start.a price-cutting war Britain, principally concentrated on cigarettes, owing to un alleged violation by the British-American Tobacco Ca. of the agreement allocating the markets of the world between conflicting interests. It wa this agreement that led to the for-motion of the Imperial Tobacco Ca, to operate in the British markets sand its creation of subsidiary come panies in the Dominions.
The Stock Exchange, however, doubts the probability of w cigarette price-war owing to the heavy losses that would result if quality 1s to be maintained and the cost of extensive alterations to plants if more cigarettes are packeted.—Anoth consideration is the great popularity of the automatic cigarette machines, which would require expensive readjustment.
In the meantime, the acquisition of a controlling interest by American nianufacturers in a largely ade vertived brand of cigarettes belonging to an English firm outside the two big combines iv announced tox day.—Reuter,
Text read from the printed page and cleaned; old type leaves the occasional error.