RJR’s CEO Warns Against Changes to Deal

RJR Nabisco Chief Executive Steven Goldstone said congressional attempts to raise cigarette costs under the proposed tobacco deal would be “prohibition by over-the-top taxation.” Goldstone’s first public comments since the proposed national tobacco settlement was reached in June came as a senator prepared legislation that would raise cigarette prices by $1.50 a pack. “When you start tearing down one end of the compromise, the whole thing starts to fray,” Goldstone told Wall Street analysts, saying cigarette makers conceded all they can in the original deal. The $368.5-billion proposal would raise cigarette prices by about 62 cents a pack. A bill to be introduced today by U.S. Sen. Frank Lautenberg (D-N.J.) would force a $1.50 price increase over three years. RJR shares rose 44 cents to close at $30.69 on the New York Stock Exchange.