New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-28

no decrease in the amount OF postsi
revenues had resulted.
"The reverse is true declared MI
Hardwick
Mr.. Hardwick read Mr.. Smoot and
the committee lecture on considering
questions without the proper iniorma-
ton. lie said the Postofice Depart
mcnt had not been consulted.
"The Senator from Utah. he SAID
admits the committee got It's informa-
ton from exrcrts i'm the Treasury Dc
partment. who in all human probability
know nothing about IT, though the!
think they know something ABOUT
everything. The fact IS you jumped N
the dark. You didn't figure how much
this change i'm letter mail would a1cCC
the revenue. Senators say the people
won't mind giving the government !"
cent on each letter as war neasu e.
As a matter of fact, the hrst class leI-
ter hostage is already yielding a rev
cnue of S72 100000, and that rs enough
Just because the people don't come
down here as lobbyists, as some pup
fishers have, IS no reason 10
that thew won't mind this tax.
Smoot Sees Danger to Papers
Senator Smoot opposed increasing
the second-class rates, saying thaS
many publications would be forced
out OF business, as their prohts were
less than the amount Of postage nee nee
essary to put the second-class H''!-
sion on self-sustaining basis.
"The only excuse for the per CEN
profits tax on publishers, ne saIu'
lis to get at that inequality some
publishers benehting by TINS SUBSIDY
are making big profits. others Woulu
be driven TO the wall II ], were re-
moved"
SON" asked Mr.. Pomerene, why such
publishers should not advance thelr
advertising or subscription rates 10
meet the increased postal charge
"Some of these farm papers nave
contracts for five years SAID MI
Smoot.
"Oh, this problem is not different
in anv particular from any other
problem of taxation SAID Mr.; rome
rene. "In the case Of the coal opera
tors. who were dealt with by TINS
body. it was pointed out they had
long contracts in many instances. But
that did not deter us
"The Senator talks a great deal OF
these struggling farm and religious
papers." said Mr.. Mcclellan. address
inc Senator SmoOt. The House eX-
emitted those classes of publications,
but the Senate committee struck mat
exemption OUT
you will not find me denying"
said Mr.. Smoot, that the present law
gives the publishers a bounty Of about
$40 900, 600 a year. But the trouble IS
that we have allowed the publishers 70
build up their business on that ialse
basis. and it would be mighty serious
TO change it overnight
Defending the increased letter rate
Senator McCumber. Of the Finance
Committee, said it would be easily put
into effect.
THE American people. never so
prosperous, are not a penny people,
he said. "and are not complaining over
the letter tax Mail order houses only
might object, but the tax would not be
felt BIZ the individual. The American
people are not picayunIsh and VIII not
cease writing letters because il costs
penny more
As to the publishers tax, Senator
McCumber said the publishers had been
built up under the governments prom
Use in 1870 Of reduced mail rates to
cnlighten the public.
They have been encouraged by our
laws, and shall we now, during the war,
strike death to any business that we
can keep going?" he asked. 1--WE want
to get at the publishers making enor-
nous profits by the special income tax,
and the small postage increase Will not
ruin any publisher"