New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-03
Advertising Tax
Sought to Save
Postage Rates
Publishers Make Proposal
at Senate Con-
ference
Fear Blow to Business
Suggested Levy Can BE
Passed Along, 1t Is
Explained

Washington. June War taxation
Of publishers advertising receipts
rather than increase Of their postage
rates was vigorously urged to-day by
representatives Of national publishing
interests at an informal conference
with Senators who are redrafting the
war tax bill.
Newspaper magazine, trade. rel-
gious, farm and many other publishing
interests Joined in the plea, which will
be reported 70 the Finance Committee
Monday, when it resumes revision OF
the House war tax measure. con-
iidential draft Of committee changes is
being printed, and the committee plans
to decide how publications shall be
taxed. to place the bill in final form,
and to report it to the Senate before
the end Of next week.
All Ask Advertising Tax
Senator Simmons, chairman of the
Finance Committee; Senator Penrose'
senior Republican member, and Senator
Smoot received the publishers repre-
sentatives TO thrash out the whole
question of war taxes on publications
having the second class, or cent
pound, mailing rate. The publishers
were asked to suggest taxation PLAN
and the unanimous recommendation of
levying on advertising receipts was the
result after an hours discussion. The
increased postage rates would put many
publishers out Of business and could
not be passed along, the committee was
told, while a tax on advertising receipts
could be met by increased advertising
rates.
The plan proposed by Senator Hard
wick and Endorsed b. the Postotiice
DEPARTMENT, to leave present postage
rates on news portions Of publications
and heavily increase that on the adj
vertisng carried, was condemned by
the publishers as more detrimental TO
their interests than the House zone
system, already rejected by the com
mittee.
Bound 10 Tax Publications
In asking the publishers views,
Senator Simmons made it clear that
the committee was determined to levy
war taxes of some sort upon pub
fishers. He suggested combination
postage and advertising tax, but the
publishers protested against any
change whatever in mail rates.
Senator Simmons pointed out that
letter rates are TO be increased one
half. postcard rates doubled and par
eel most shipments taxed, adding that
there was a strong sentiment IN Con-
gress excepting second-class mall en-
tirely from the increase:
newspapers are not deslrous OF es,
Gaming "A tax" the committee was told
BIZ Ebert II. Baker, Of "The Cleveland
Plain Dealer" chairman of the legisla-
tive committee of the American News
,,oner publishers Association. But
we would rather have a direct tax on
advertising receipts at fair rate than
any change in the postage rate. Such
a change might become permanent.
All of Us prefer to have the postage
question handled separately from war
tax legislation"
To a statement by Senator Penrose
that thousands of letters are being re-
ceived by members of Congress pro-
testing against increasing letter rates
if second class rates are allowed to
stand. Mr.. Baker replied that the One
Cent Letter Posta/ League, aided by
manufacturers. was behind a propa-
ganda Of that kind.
Simmons for Rate Increase
This seems TO be the psychological
time. however" Senator Simmons inter
iected. "for publishers TO accept a
postage rate that is inevitable. Print
paper prices are high, and the increase
decided on might be less now than when
conditions are changed.
A draft Of an amendment suggested
by Senator Simmons increased second
class rates by % or 30 per cent-to l 4
or IL cent a pound with a tax on
advertising receipts of liz per cent. f.
This plan quickly was dsapproved by
the publishers.
at is not wise or American to in :
crease second class postage" said Allan
II. Richardson. of New York. represent
ing the American Periodical Publishers
Association. at is not justified even
by war conditions, and would be most
unsatisfactory"
John Schleicher, of New York, and
other representatives Of weekly maya
zines having wide circulation, said their
publications also prefer an advertising
tax.