The Detroit times., 1911-02-15
MORGAN' S HAND
IS SEEN IN PLOT
Gibson Gardner Throws Light on
Hitchcock's Scheme To Boost
Postal Rate on Magazine.
BY gibson eARpNER.


WASHINGTON, ID. c., Feb. 49,
The effort of President Taft and Post
master General Hitchcock to put out
of business such independent maga-
zines as have refused TO be driven
into the Morgan publishing trust Is
meeting with desperate resistance.
washington is filled with owners,
publishers and editors OF magazines.
Conferences are being held and plans
made to secure O. hearing before the
blow Is struck. IL this Is refused, pro-
gressive Republicans will unite with
progressive Democrats to oppose the
administrations plan to railroad the
Penrose amendment into law.
Until last Saturday the editors OF
magazines could not believe that Sen
ators Penrose and Carter were seri.
Gus In their reported intention to In
crease the postal rate on the adver-
tising sections OF magazines from one
to four cents an ounce. Such a tax
would be confiscation. Instead OF fur
nishing new revenue and wiping out
the deficit, the changed rate would
put every popular magazine out OF
business.
Now the editors know that this Is
what the Penrose proposition Is IN
tended to accomplish. Word has gone
forth that Mr.. Morgan's publishing
trust Is the only refuge for the inde-
pendent magazines. Those who re-
fuse to bend the knee will feel the
blow which Mr.. Morgan's tools In
Washington have planned to strike.
..1& l. ha aharQpfQr n
the legislative move by some happen
ings which preceded 1t. Those hap
penings have just become known.
number of weeks ago an attorney rep
resenting the Morgan banking trust
was named by President Taft to take
up the subject of an increase In the
magazine postal rate with leading rep
OF the larger magazines.
This was done. Several conferences
were held, and as a result the impress
sion was left on the minds OF the ed
itors that no action would be taken
during the present congress. These
continued side by side
with the negotiations which resulted
in driving several of the independent
into the new Morgan maga-
zine combine.
= Suddenly the conferences came to-
an end at the same time that II was
discovered that no more magazines
Gould be brought into The Morgan
trust without additional pressure.
The attorney appointed by Presi-
dent Taft dropped the negotiations,
and at once President Taft called
Senators Crane and Carter to the
White House and gave orders for the
OF the Penrose amend
ment to the postal bill. There were
no hearings. There were no argu-
ments. Postmaster General Hitch
cock came to the capital building and
was closeted with the committee be-
hind the locked door OF the commit
tee room.
1t was Senator Bourne who, chanc-
ing to be a member OF the committee,
brought the news OF what was hap
pening.
Back of the proposition to drive the
magazines into the hands
of Wall-st. is the well known desire of
President Taft and Postmaster Gener-
al Hitchcock to avenge themselves
for criticism at the hands OF inde-
pendent writer's like Ida Tarbell. Ray
Stannard Baker, Finley Peter Dunno
and Lincoln Steffens.
President Taft Is credited with the
strange idea that a move like this
will silence opposition to his admin
istration from this quarter and clear
the way for his nomination for Sec
ond term.
In working out the triple purpose
of satisfying spleen, helping Morgan
and silencing future opposition, the
relies for help on
scores OF special privilege senators
and representatives who have them.