The Washington herald., 1917-05-23

'SShhB against tne p1OpoSeu hSAS
rates on second-class mail matter. most
emphatically and unanimously declared
the tax unjust and unfair. Newspapers
In all sections of the country were rep
resented at this hearing, held in the Cap
ltol Building, on Saturday and MONDAY
last One of the most important state
ments made before the committee was
that prepared by the American Newspa-
| per Publishers Association, which was
, headed by a committee of which Don =.
Seitz. of the New York World. was
Chairman. Besides Mr.. Seitz, the COM
mittee consisted of Herbert F. Gunnison'
of the Brooklyn Daily Eagle; Harry
Chandler Los Angeles Times; Col. Rob-
ert Ewing, New Orleans Daily States;
c. p. ]. Mooney. Memphis Commercial
Appeal; James r. Gray, of the Atlanta
Journal. and Frederick f. Thompson. OF
the Mobile Register The bill containing
the proposed rate has been considered in
the House all week, and arguments pro
and con concerning the rate increase
have been made ad lib.
The Senate hearings were attended by
probably fifty newspapers and publish
ers representatives.
Taxes Exceed Revenues.
The publishers opened their books to
the committee, to show that the pro-
posed Increases are, even in the case OF
the strongest newspapers, in excess OF
the average earnings for the past five
years. Coupled with the tremendous ad-
vances in the cost of print paper and
the extra taxes on telegraph and tele-
phone messages, any increase whatever
IN second-class rates would single out
the publishing business for burdens out
of all proportion to any other industries
in the nation. it was said.
The publishers of eighty-siX of the
| largest and most influential monthly and
weekly magazines stated under oath that
! their average earnings for 1916 were only
$4,000 each, whereas the increased post
age bill charged to these magazines un-
der the proposed rates would be in excess
of $4,000 each.
The increase in rates levied on the few
survivors of this strain, they said, would
have to be passed on to the reader, not
merely in the form Of higher subscrip-
tion rates, but as an increased advertis-
ing tax on many articles of food, apparel,
or toilet and household use.
Suspension of publication by maga-
zines, in addition, would throw out of
employment thousands who have devot-
ed their lives to the printing, engraving,
electrotyping, and allied trades.
Would Ruin Small Newspapers.
Arthur Dunn. speaking for the smaller
newspapers oil the country, said they
could not stand the increase in postal
rates. with the increased cost of print
paper, and that many would be compelled
to go out Of business If the bill was en-
acted.
A similar view of the situation was
taken by Arthur J. Baldwin, of New
York, vice president of the Associated
Business Papers. Incorporated, and rep
resenting 800 trades and business peri
odicals.
]. A. Moore. of New York, representing
the Periodical Publishing Association.
composed of eighty-siX of the leading
magazines, said the increase would mean
an added expenditure of more than
50, 100000 in postage to members of that
organization and ruination for many of
them.
E. c. Meredith, of Des Moines, repre-
senting farm papers, said there was no
hesitancy on the part OF publishers to
pay war taxes.
I'VE will give the government all the
money that it is in our power to give, up
to our last dollar, but we do protest
against our business being ruined" he
said
I'VE feel that at this critical time the
government needs the circulation of
every printed page possible. Excepting
railroads alone, there is no instrument
tality SO important in this crisis as the
publications of this country"
He submitted a statement made by
ffty-fve farm publications showing that
an advance of cent only in seCond-class
rates would wipe out all but $4,000 Of
their profits on the basis of 1916 earnings.
All agreed that there is no unwilling
ness on the part of publishers to pay war
taxes, but they do not want a tax that
would be an unbearable burden to thou
sands OF newspapers and periodicals.
r. ]. Cudahy, representing the Literary
Digest, spoke of the educational value Of
magazines. He said that as soon as the
revenue bill was introduced his publica-
ton cancelled all advertising space in
daily newspapers until the rates had
been definitely established.
Newspapers Taxed Highest.
D. w. Norris. of Marshalltown. Iowa,
representing a number of Iowa newspa-
pers, said they could not stand a gross
sales tax of 20 per cent any better than
the procer.
This bill," he added, proposes an in
crease of 3 per cent on luxuries, and on
the next page proposes an increase of
over 300 per cent on the transportation
of newspapers"
c. E. Kelsey. representing the Youths
Companion, said that publication paid
the government last year 1000 for post
age, but under the new rate it would pay
S64,O0O. while paper would cost it $4,000
more this year than last.
Charles NJ. Pepper of the Christian
Herald, pointed out the relief work in
Belgium, China. and other countries car
ried on by that paper. and said an in
crease in postal rates would seriously
affect that work.
Louis Wiley, of the New York Times,
said 1t has been shown to the committee
that none Of the newspapers desires to
shirk its responsibility to the govern
ment. Postage tax and paper together,
he said, would cost the Times 81, 400. 900
more than formerly. The tax, he declar-
ed was an oppression in view of other
increased expenses.
George McAneny, Of the Times, declar-
ed the tax confiscatory. He said the
Canadian government had lowered the
price Of paper to $50 a ton.
THE example of the Canadian govern
ment can be fairly suggested to the Con-
gress as an example," he said. "Is It
not fair to ask why the publishing indus
try has been singled out?" he asked.
we OF the publishing business ask moth
ing more than to be treated fairly"
Senator Williams suggested that the
papers would advance their rates. Mr..
McAneny said that was impossible.
Frank P. Glass said the Birmingham,