The Washington herald., 1917-05-23
Proposed Postage Increases
Mean Ruin, Publishers Testify

Ala papers had to raise their nrices as
per cent and yet were suffering He
salo there was gossip current to the ef-
iect tlat the tax was a plan to punish
the newspapers. Senator Williams inter-
rupted 10 say that there seemed to be the
OPINION that the Postmaster General was
Responsible for the tax, but that the Sem
ator denied.
Cost to New York Times.
Mr.. Glass said the newspapers were do
ing everything to relieve themselves by
puShs paper mills. but no relief could
be obtained for years
James heeley. of the Chicago Herald,
told OF the advance in the price of paper
Whlch he estimated to him at $4,000.
everything that goes into the manu-
lacture Oh a newspaper has advanced in
the last year from 10 to 500 per cent" Mr..
Kelley said. Now, on top Of these in
creases, the railroads ask 10 per cent in
crease in rates. All we want is to stay
I IN business and help you to raise revc-
nues."
Alfred E. ommen. representing the
United Typothetae, appeared to protest
In the interest of $3.50 printing estab-
| lishments.
Marsden G. Scott, president of the
International Typographical Union, ap-
peared for printers employed by the
newspapers and magazines.
III you put this into law you are going
to add TO the army of the unemployed
and make the situation all the worse"
said he.
Mathew WolI, president of the Inter
national Allied Printing Trades Associa-
tion, and also of the American Fedora
! tion OF Labor, said there were 275 labor
publications, and that the law would
force about half out of existence.
James F. FreeL, president of the Inter
national Stereotypers' and Electrotypers'
| Union, said:
'If this legislation goes into effect we
will lose half of our membership by their
being thrown out OF employment. We
realize Congress has a great problem, but
| II can be solved without destroying in
dustry."
Prof. ]. W. Lynn, of Chicago Univer-
sity, discussed the effect on the nation of
tax limiting circulation Of papers and
magazines.
"The committee believes this tax can
be passed along,'' said W. s. Jones, of
the Minneapolis journal, but this is i'm
possible"
Don c. Seitz. business manager of the
New York World and chairman Of the
second-class postage committee of the
! American Newspaper Publishers Asso-
citation, who appeared first. spoke as fol-
lows:
Not War Tax.
1T is not a war tax, but an effort to
further repress and embarrass the news
paper industry. war tax should be
something temporary and easily repealed
when the emergency is past. This is the
arbitrary enforcement of a new plan for
raising postal revenue by increasing rates
on second-class matter. 1t is not a tax,
but a charge for service.
The rate proposed is an increase Of
from 100 to 600 per cent-an increase be-
yond precedent-even in the price of
chemicals or platinum produced by war
conditions 1t is out Of all proportion
TO the value OF the service performed.
The normal price of newsprint paper is
about $40 a ton. This is the sum TO be
charged for moving a ton Of printed
sheets to any part Of the first zone
whether the distance be one mile of 300.
Railroads carry print paper as freight
so miles for S2.s ton. and still pay div
idends. For the outer zone the postal
charge is S120 a ton, or three times the
normal cost OF the newsprint-
'In the midst Of all the money-raising
and adjurations for economy sent out by
the government we hear nothing at all
about retrenchment on its own part.
Why does 1t not come forward with
some provision to do something itself to
lift the burden on the people instead OF
adding TO It? The rural free delivery is
wholly unremunerative, but widely bene-
fetal. IT'S chief value is TO get newspa-
pers to the farmer. that he may know
the markets and keep up with the news
Of the world. The farmer will not be
able to take publications at the price
papers will have to charge for subscrip-
tions II the rate passes.
Asks an Equitable Tax.
I'VE are unable to fathom the desire
to suppress an industry that performs
its part in the community at such low
cost to the people and the smallest profit
to itself. We do not object to a zone
system. where the rates are laid with
some regard to the value OF the service
performed and the cost OF the article
transported. In making such a schedule
we will be glad to aid. But II we are TO
be taxed. let it be a levy upon income
and profits, not a double tax. unfair, op-
pressive. and irremovable. as Is now
proposed. What you are planning will
destroy business and decrease, not am
plify revenue, wiping out the ability to
pay such other taxes as the necessity
OF war may levy upon those who derive
their livelihood and gains from the press.
The postal service is either a privilege
or a business. II a privilege, it should
treat all interests alike. If a business,
It should be run on a business basis,
giving value received. To use it as
taxing power Is entirely foreign TO the
purpose Of placing it in government
hands. 1t was designed to serve, not to
oppress its users.
'I note with interest Chairman Kitch-
ms remark that it costs the department
cents a pound to carry second-Class
matter. This is an overwhelming indict-
ment of incapacity and extravagance.
Large quantities OF second-class matter
are carried by express companies and
railroads, who do the routing and sorting
as we'll.
Cites Railroad Charges.
The Baltimore and Ohio Railroad
Company carries our papers from New
York to Parkersburg, w. Va, AS miles,
for one-half cent a pound.
The Pennsylvania Railroad brings
our papers to Washington for a quarter
Of a cent a pound. We run a special
train to Boston, for instance, a fast
train, 225 miles, with every facility of
train service afforded, and they sort It
and deliver 1t to our people at the end
of the route for half a cent a pound.
Now, some concrete examples as to
the cost feature. I begin with the New
York Times. The New York Times has
wider country circulation than any