Evening journal., 1918-06-22
SEEK YEAR DELAY
IN new ZONE RATE
Publishers Say II Would
Suppress Papers in
Time of Need
SAYS HAVE MADE
MAILS PROFITABLE

WASHINGTON, June 22.-Newspaper
publishers, headed by George McAneny
Of the New York Times, vlce-president
OF the American Newspaper Publishers
Association, urged before the House
WAYS and Means Committee yesterday
that the zone system Of increased Sec
ond class postage rates, which goes
into effect July 1, be suspended for at
least year
The committee was told, that willis
the additional revenue rom the IN
creased rates would be inconsideraDle
the rates and the system would Oppress
the newspapers at a time Of great need.
and impose a system Of collection com
plicated and expensive. Rates TO tht
outer zones would be prohibitive, Mr..
McAneny said, and would mean restric-
tion Of circulation Arrangements FOR
passing the increased cost Of postage
to the subscriber, be said, already are
under way.
A thorough investigation Of the sub
joct before drafting legislation was
urged Mr.. McAneny asserted that the
Postoflce Department had been built
into a profit maker largely through the
instrumentality Of second class mail.
Chairman Kitchin. questioning the
statement that the newspapers OF the
country could not stand the increase,
asked for net income and loss OF sub
scribers by individual large news
papers. Mr.. NlcAneny said he knew
nothing Of their book figures; that
there were SOC newspapers In the Pub
fishers Association. Representative
Longworth lOhio) wanted to know
about the proportion Of newspaper CIT
culation affected by second class mall
rates. The witness said that IN tne
case OF his paper it would be ABOUT
IS per, cent. but he could not say as
TO newspapers generally.
Mr.. McAneny denied that present sec
ond class rates constitute a newspaper
subsidy, and said no need had been
shown for any increased rate for news
papers. He said he spoke not Tor MS
own newspaper but for five hundred
large and small; that the publishers
want Congressional cooperation I'D
considering the problem. and are ready
to recognize any inequalities that may
be shown.
ready is taxed as part OF the news.
papers excess profits; that any attempt
Of newspapers to pass an aaVertislns
postage tax TO the advertiser woula re-
suit In reduced volume OF advertising,
seriously affecting both newspapers ana
advertisers, cutting down the accelera-
tion OF business generally. He tesu-
ned that advertising rates have been IN
creased from 10 to IS per cent. since
the war began, but pointed out that
Increased cost of white print paper, the
largest expense OF the papers mas
scared from 60 to 200 per cent
When members Of the committed
suggested that the action OF the New
York newspapers in doubling their
subscription rates might constitute a
violation Of the antitrust laws, Mr..
McAneny explained that the action was
taken in concert by the papers, not to
benefit themselves, but 10 meet an eco
nomic necessity. He said the increase
was urged by the Federal Trade Com
mission.
As concrete suggestion Representa-
tive Garner TEX asked the publishers
20 submit to the committee a draft OF
legislation that would be equitable both
40 the government and the publishers,
and would approximate the cost to the
government Of carrying newspaper mail
al second class rates.
L. B. Palmer, manager OF the Anerl-
can Newspaper Publishers Association,
questioned as TO dues paid by members,
said that an assessment OF 20 per cent,
based on paper tonnage. passed by the
association last April 2s was not for
postage propaganda, but in connection
with expenses incident TO the hearings
on print paper prices. Chairman kitchin
inquired regarding the frequency OF
visits by Frank p. Glass, president OF
the association TO Washington, and u
was explained that Mr.. Glass, Mr.. Nc
Aneny, and other officials were reim-
bursed for their expenses. When Cnalr-
man Kitchin asked for a statement as
10 allowances made By the association
for such expenses. Charles II. Taylor
Jr. Of Boston, a director OF the asso'
citation. promised that and any other
information desired.