The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1917-06-22
PENALIZING NEWSPAPERS

On the 18th the Senate Finance
Committee substituted a tax in the
war tax bill of five per cent on the
net profits of newspaper and maya,
zine publishers in lieu Of the two
per cent tax on advertising previous
ly agreed upon.
Either of these taxes would be an
injustice to newspaper publishers,
They partake of the character of a
penalty. No other business is so sin
gled out and taxed for the privilege
of doing business, and no other bus
mess does more to uphold and
strengthen the Government in its
prosecution of the war than the news
papers of the country. Nowhere is
greater loyalty and patriotism found,
or have larger sacrifices been made
than have been made by the newspa-
pers in furthering the Governments
preparation for war. They have CIV
en- freely of their space-their stock
in trade-to aid the Government.
In the one matter of placing the
first two billion dollar loan, they have
given hundreds of thousands Of dol
lars in free advertising. The success
of the loan is admittedly largely due
to the wide information given and
the appeals made by the newspapers
to the people. We don't know whether
the Government paid the large met
ropolitan dailies for the page adver-
tisements carried by them to place
this big loan, but we do know that
the thousands of country newspapers
throughout the land did this work
without a cents compensation or
cost to the Government. They were
appealed to to "do their Bit, and not
only Loyalty but gladly responded.
1t was the same thing in sustain
ing the Government and dispensing
information in relation to registration
under the select army draft bill. The
free advertising done by the country
press-and we speak for the country
press, as we do not know what ar
rangement, if any, the Government
may have made with the big metropol-
itan papers-was of unreasonable
benefit and contributed greatly to the
success of the registration.
They were but performing duty
they owe their country, it may be sug-
gested. Yes, they admit that, but ow-
ing to the character of their business,
they furnished free to the Gov
eminent their space, which is the
principal thing they have to sell and
their main support. 1t is as if the
were to take from his
shelves his goods and hand them ov-
er to the Government as a gift; or
the farmer his wheat, cattle and
horses; or the munitions maker his
guns and shells.
The stamp tax which the bill places
upon certain classes of goods and
is not a tax on the
manufacturers business or, profits;
he simply adds the amount of the tax
to the cost price of whatever he man
ufactures and passes it on to the con-
sumner. Newspaper publishers can
not do that. If they increase the sub
scription and advertising rates and
do not thereby lose as much by
shrinkage in business as they gain by
the increase-which they are more
likely to do than those engaged in
other lines of business-their profits
may be increased little, but it is the
profits this bill proposes to tax. 1t
proposes to tax them on any profits |
they may make if they should happen
TO come out more than even, and then
continue to ask them for free space
for the Government to promote its
war enterprises in the way of "doing
heir itsi'nTra'- yy.. s..,,t, ~s..,r,-uI
Oh, they are willing to do their
Bit, but when their services are so
much in demand for such matters, it
loes look like an injustice to put this
penalty on them for doing business.
Dur Congressman who are puzzling
heir heads over the war tax prob
EN- might edo their bit" by placing
tax on the net profit of their sal
ries and by expediting needed leg
Station. sE
Government Food Administrator