New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-07
Why?

why
Representative Rainey, member Of the
House Ways and Means Committee, made
this comment the other day on the pub
fishers tax incorporated by the Senate
Finance Committee into the war revenue
bill: perhaps the most illogical proposal
of all is the publishers tax. Why should
he 1.-THE publisher pay an income, excess
profits and special tax, too"
1t is natural question for any one to
ask. Why has the publishing business
been singled out among all businesses as
the victim of an extra profits tax? On the
face of the record the Senate Finance
Committee stands convicted Of an attempt
to penalize one particular industry. More
over, its action would show a gross dis
elimination against business which has
not profted from war conditions and IS
not likely to profit from them.
But the record, on its face, is deceptive
The Finance Committee would never have
imposed the special per cent tax on pub
fishers profits if the publishers had ear
nestly and unitedly protested against such
a tax. The protest made was half-hearted
and perfunctory. A very powerful ele-
ment in the publishing trade Is bent on
preventing a rational adjustment Of sec
ond class postal rates, and the representa-
tives of that element are entirely wiling
to accept discriminatory profits tax SO
long as the second class mail subsidy
which they now enjoy is not taken away
from them.
The publishing trade as a whole is to be
subjected to an illogical and unjust tax
merely in order to protect the interests Oh
those publishers who benefit most by the
present under charges on second class
mail matter-and especially by under
charges on long haul business. Most men,
bers of Congress realize that second class
mail is carried at huge loss to the gov
eminent They know that the abnormally
low second class rates ought to be IN
creased and a zone system of charges IN
troduced. But they fear the vengeance Oh
the 'long haul" publications, whose
owners and managers have the efrontery
TO claim that a bargain counter postal rate
is one of the "raw materials" Of their IN
dustry.
The Senate committee has raised the
first class rate on letters from two cents TO
three cents an ounce. But it has been de-
TERED by the threats of publishers OF pc
riodicals with nationwide circulation from
making a corresponding raise in the sec
ond class rates. The second class charge
has been increased from one cent to one
and one-ouarter cents a pound-a ludicrous
revision when it is remembered that sec
ond class mail as a whole is now carried at
tremendous loss.
II is the duty of Congress IN this
emergency to cut off all sources OF waste
in governmental operations. There Is no
good reason, either, why the waste on
second class mail transportation should De
tolerated even in time Of peace. But inc
Finance Committee lodges its duty 1t
is reluctant to eliminate an ancient abuse
m withdraw an indefensible subsidy. To
offset the subsidy it has voted to levy
fat profits tax on all publishers, thus sac
rifcing the interests of publishers who DO
not benefit materially by the cheap long
haul to the interests of publishers who DC
benefit by it to a glaring extent.
That is the real answer to Mr.. Ralneys
query. The Senate Finance Committee
has imposed on publishers a special prohts
tax because it lacks the moral courage TO
compel all users of the second class mails
to pay fair price for the service when
they obtain.