Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-05-24
NEWSPAPER TAKES

When . newspaper argues against Z tax on a bust
ness other than its own it may be assumed to act from
motives OF public interest and from a sense Of justice.
When 1t argues against a tax on the newspaper business
Its pleas are open to the suspicion Of being based on self
interest. That is inevitable in every case when al indi.
vidual undertakes to plead his own cause.
When the newspapers and periodicals. Of the coun-
try, therefore. maintain that the taxes which are to be
imposed on them under the war revenue bill are in
assertions should be received with some reserve. But
the newspapers are not trying to dodge their fair share
OF taxation. They are merely. trying to establish condi-
lions under which they may exist. in order, among other
Things, that they may pay taxes to the government.
Newspaper incomes are derived from two sources.
circulation and advertising. 1t isSnot possible for the
newspaper, any more than for any other business insti-
tuition, to pluck money out Of the air. It's income consists
OF money received for services rendered, in the one case
in providing a publication to be read. and in the other
in giving publicity to the announcements OF its advertis-
ing patrons.
There are two ways. and two ways only, in which
the net income-which means the ability of the concern
to pay taxes-can be increased by the newspaper, namely,
by decreasing its cost of production and by increasing its
revenues.
1nasmuch as the cost Of every item of material which
goes into the production Of a newspaper has increased
enormously, and is still increasing, Il does not appear
that there is much prospect Of relief in that direction.
Reduction Of wages would hardly be counselled under ex-
listing conditions, when the wages Of labor in every other
calling are being advanced in response to the demands
made by the increased cost Of living. The only way.
therefore, by which a newspaper can DECREASE its cost IL
by purchasing less material and employing fewer people.
WHICH means the publication OF smaller and less satts-
factory papers. Is the public to be less efficiently served
in order that production costs may be reduced? The
public is not likely to approve Of that.
If 1t Is not practicable to reduce production costs,
how about increasing revenues? Is the circulation price
to be boosted? Very many newspapers have already
found 1t necessary to increase their subscription rates in
order to meet the increased cost Of their supplies. Fur
Their increases would. in most cases, be impossible because
they would be followed by an immediate loss Of business.
Advertising rates have also been very generally increased,
and substantial increases again would diminish business
Boiled down, the situation amounts to just this: News
papers that have been making profits will be obliged to
cut into those profits to pay the taxes, and in many cases
will, II they continue. be doing business at a loss. Those
that have been making very small profits. which is true
of most papers that make profits at all, and those that
have been running behind in the hope that the situation
might change, will he forced to close up shop and quit.
Where this happens the government will derive no reve-
nue. at all.
If the government authorities have paid as little
attention to the facts in relation to other lines Of business
as they have in the levying of this tax, the measure is
likely to prove a disappointment as a revenue producer
and an element of disorganization in the business Of the
country just at a time when it is supremely important
that every possible obstruction should be removed from
the way Of every legitimate business.