TOBACCO WAR IN ENGLAND.

Greymouth Evening Star, Volume XXXI, 18 December 1901, Page 4

TOBACCO WAR IN ENGLAND.

What may be termed a tobacco war is raging in England just now. The Old Country has been invad d by another American trust, intent this time upon capturing the British tobacco market. The American Tobacco Company, which is said to have a capital of some forty millions sterling, has bought up Ogden's, Limbed, one of the largest tobacco businesses in England, The invaders propose to flood the country with cigarettes and tobacco at prices much below those which the old-established British firms have been charging the retailers, in order ro win the patronage of the retail trade. The American Trust’s reduction in prices on one line alone —and that a leading line —amouivs to 71 per cent. To resist She American invasion thirteen of the leading British manufacturers have amalgamated their businesses into one huge concern, the Imperial Tobacco Company, and have issued a circular to the retailors of the Old Country, calling upon them to support a national industry against the attacks of an outside “combine.” To 'meet the cutting prices of the ?Americans, the British Trust is giving at one stroke from 15 to 20 per cent extra discount to the retailers to get them on its side. Besides taking these steps to defend their own trade, the British manufacturers in the new combine have carried the war into the enemy’s camp by allying themselves with the Universal Tobacco Company of New York, which will fight the American Tobacco Company in America. The Universal has a large American trade, and is now endeavouring to acquire the business of the Havana Commercial Company, which owns the principal cigar and cigarette factories in Cuba. In order to save duty, the invading American Trust will make up its tobacco from the leaf in England, so that a great stimulus should be given to tobacco manufacture in the Old Country by the present “war”. The Americans arc likely to lose money over the venture but the large British firms will also very likely have to content themselves with a small commercial return while the war lasts, in place of the fortunes which they are said to have been making during the last few years. Meanwhile the British public will reap the benefit of competition in the shape of cheaper cigarettes.