New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-04
Looping Of a Subsidy

One of the most gratifying features OF
the new war tax law is the partial With
Crawal of the present government SUBSIDY
IN users of the second class mails. We re-
sret that the Withdrawal is not more COM
plete. Yet when the pressure which Con-
gress resisted is considered, even partiai
elimination of the notorious second class
undercharges now in operation is nota-
hle victory for common sense postal REFORM.
The benefcaries of the low rates through
which the government has lost annually
anywhere from $60,000,000 to SSO,OOO,Ooo
on second class business have been strong
" intrenched. Postmaster General after
Postmaster General had asked Congress to
wipe out the second class deficit by increas-
ing charges. Commission after commission
Amounted to consider such recommends
tons had reported that second class matter
was being carried at an appalling loss. But
the periodical subsidists had Congress
cowed. Treating a concession which the
government made years ago, for the pur-
nose of encouraging the spread OF lntor-
nation. as a vested right, covering the cir
culation Of vast quantities OF advertising
matter and of reading matter practically
useless for purposes of public information
these profteers fatty defied Congress TO
reduce second class tariffs. They threat
ened with prescription every Senator or
Representative who should vote to destroy
the second class undercharge privilege.
They even distributed literature boasting
that they had been influential in defeating
President Taft for reelection in 1872 be-
cause he had had the temerity to favor
higher second class charges.
For many weeks it was doubtful whether
Congress would pluck up sufficient courage
70 cut off the newspaper and periodical
subsidy. The Senate voted at one stage TO
accept modification of the Houses ra-
tional system of graduated zone tariffs on
second class matter. But this was appar-
entity only window-dressing. 1t was finally
decided to strike out the whole section of
the House bill dealing with the postal ser
vice. In the conference committee, how
ever, the need Of saving money now wasted
in administration as we'll as of raising new
revenue overweighed the fear of reprlsals
on the part of subsidized publishers. We
are to have an increase of the fiat rate on
publications (reading matter alone being
considered, first by one-fourth of cent
a pound, and then by half a cent pound.
But on the advertising parts Of news
papers and periodicals there is to be
graduated zone rate, proportionate TO
the distance carried, which will help ma
terially to equslze the postage collected
and the cost of the transportation.
We believe that it would have been SIM
pier and better to abolish the fiat rate for
reading matter as we'll as for advertising
natter, putting the carriage of all second
class mail on the same zone system basis
as was adopted several years ago for the
parcel post. Yet the new zone charges on
advertising will remedy to great extent
the present long haul undercharge on
periodical publications. II will tend to
make the long haul distribution pay its
own way.
The Tribune has, almost alone among
American newspapers, fought FOR scien-
tlfic revision of second class postal charges.
II has received much abuse for doing so
from publishers who are reluctant to sur