Arizona republican., 1917-06-03
BOUND ID
 LEVY TAX 0N PAPEE EE:RS9
Republican A. p. Leased wirel

Republican A. p. Leased Wire
 WASHINGTON. June War tax ation of publishers advertising rates rather than increase of their postage rates was vigorously urged today by representatives of national publishing interests at an informal conference with senators who are re-drafting the war tax bill.
 Newspaper, magazine, trade. relig iOus, farm and many other publishing interests, joined in the plea. Senator Simmons, chairman of the finance committee: Senator Penrose, senior re- publican member and Senator Shoot received the publishers representatives. The increased postage rate would put many publishers out of business and could not be passed along, they were told while tax on advertising re- ceipts could be met by increased adver- tising rates.
 The plan proposed by Senator Hard wick and indorsed by the postoffice de- partment to leave present postage rates on news publications and heavily in crease that on the advertising carried. was condemned by the publishers as more detrimental to their interests than the house zone system, already re- Jected by the committee.
 In asking the publishers views. Sen atOr Simmons made it clear the com mittee was determined to levy war taxes of some sort upon publishers. He suggested a combina tiOn postage and advertising tax. but the publishers pro- tested against any change in mail rates. Senator Simmons pointed out that let ter rates are to be increased one-half post card rates doubled. and parcel post shipments taxed. adding that there was a strong sentiment in congress against excepting second class mail en- tlrelv from the increase.
 Newspapers are not desirous of es- caping a tax the committee was told, hy Ebert H. Baker of the Cleveland Plain Dealer. chairman of the legis- lative committee of the American Newspaper Publishers Association. "Rut we would rather have direct tax on advertising receipts at a fair rate than any change in the postage rates. Such change might become permanent. All of us prefer to have the postage question to be handled separately from war tax legislation
 To a statement by Senator Penn ose that thousands of letters are being re- ceived by members of congress pro testing against increased letter rates if second class rates are allowed to stand. MT. Baker replied that the one-cent letter postage league, contributed to by manufacturers, was behind prOpagan- da of that kind.
 This seems to be the psychological time, however" senator Simmons inter- iected, for publishers to accept a post age raise that is inevitable. Print paper prices are high and the increase oe- cided on might be less now than when conditions are changed
 The ammendment suggested by Sen ator Simmons proposed to increase sec ond class rates by 25 to 50 per cent to IA or F cents a pound-with q tax on advertising receipts of F per cent.
 Tt is not wise or American to in crease second class postage said Allan H. Richardson of New York, represent ing the American Periodical Publish CTS association. It is not justified even by war conditions and would be most unsatisfactory"
 MT. Richadson cited the postoffice department surplus last year even with mailing on second class publications at a maximum.
 Representing trade and business pub lications. J. P. Baldwin of New York said while such publications made com paratively small use of the mails and while an advertising tax would impose heavier burden than postage tax, publishers of that class would rather accept a tax on advertising.
 John Schleicher of New York. and other representatives of weekly maga- zines having wide circulation, said their publications preferred an advertising tax.
 It is the fairest that can be devised for all publications said Mir. Schlei- cher. Many publishers do not use the mails. Many large daily newspapers use them little, but have enormous adver- Using incomes. An advertising tax would hit eNerYhodY''