The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-06-03
National Publishing Repre-
sentatives Appear Before
Senate Committee.
AGAINST POSTAL RAISE
Declare Zone System Would
Drive Many Publications
Out of Business.
BY Associated Press.


Washington. June War taxation
Of publishers advertising receipts
rather than increase Of their postage
rates was vigorously urged today by
representatives OF national publishing
interests ut an informal conference
with senator's, who are redrafttnG the
war tax bill.
Publishing interests generally Joined
in the plea which will be reported to
the finance committee Monday. when
it resumes revision of the house war
tax measure. A confidential draft Of
committee changes Is being printed.
and the committee plans to decide how
publication shall be taxed to place the
bill in final form and to report 1t to
the senate before the end OF next week.
Ask Publishers Opinion.
Senator simmons. chairman of the
finance committees: Senator Penrose,
senior Republican member. and Sena-
tor Smoot. received the publishers
representatives today to thrash out
the whole question Of war taxes upon
publications having tho second class.
or cent n pound. mailing rate. The
publishers were asked to suggest n
taxation plan and the unanimous rec
ommenda ton OF levying upon adver-
Using receipts was the result Of an
hours discussion. The increased
postage rates would put many publish
ers out Of business and could not be
passed along, the committee was told.
while a tax on advertising receipts
could be met by increased rates.
The plan proposed by Senator Hard
wick and Endorsed by the postoffice
department to leave present postage
rates on news portions Of publications
and heavily increase that on the adj
vertising carried was condemned by
the publishers as more detrimental to
their interests than the house zone
| system already rejected by the COM
mittee.
Senator Simmons made II clear that
| the committee was determined to levy
war taxes of some sort upon publish
ers.
| Prefer Tax on Advertising.
newspapers are not desirous of es-
tablishing a tax," the committee was
told by Ebert II. Baker Of the Cleve.
land Plain Dealer. chairman Of the
Legislative committee OF the American
Newspaper Publishers association.
But we would rather have a direct
tax on advertising receipts at n fail
rate than any change in the postage
rate. Such a change might becom.
permanent. All OF us prefer to have
the postage question handled separ.
ately from war tax legislation"
To a statement by Senator Penross
that thousands Of letters arc being re
ceived by members OF congress pro
testing against increasing letter rates
II second class rates are allowed Il
stand, Mr.. Baker replied that the on.
cent letter postage league. contributed
to by, manufacturers. was behind ,
propaganda of that kind.
This seems to be the psychological
time. however" Senator Simmons in
terjected, flor publishers to accept
postage raise that Is inevitable. Prin
paper prices are high. and the In
crease decided on might be less nov
than when conditions are changed"
Says It's Not Justified.
ut is not wise Or American to in
crease second class postage" said Al
Ian H. Richardson Of New York. repre-
:. senting the American Periodical Pub
fishers associat ton. ut Is not JUST
fled even by war conditions and woul
be most unsatisfactory"
John Schleicher OF New. York an
other representatives of weekly maya
zines having wide circulation sal
their publications prefer an advertiser
tax.
A ut is the fairest that can be devise
for all publications." he said. IMAM
publishers do not use the mails. Man
: large daily newspapers use them littl
/ but they have enormous advertiser
: incomes. An advertising tax woul
hit everybody"