The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-07-08
ADVERTISING HELD
BUSINESS FACTOR
Roger W, Bamson. statistical Expert.
Discusses Features of New
Revenue Plan,

+ Washington. July THE value OF
advertising in building up business
was emphasized by Roger W Babson,
! the statistical expert now working Tor
| the department of labor, who has
made several trips to South America
| for Secretary McAdoo. in testitying
before the ways and means commit
! tee
Recognition of the importance Of
good will" in business AS derived
through advertising. even more than
through other agencies, should be al
lowed for in taxing capital according
to Mr.. Babson's statement regarding
the new war revenue law.
That employment of money for hlr-
ing workmen to beauty a property
in order to make ii more attractive to
trade is permitted to be classed as in
vested ca pital whereas money spent
for advertising which does Infinitely
more to make the property popular,
! cannot be so classified, Mr.. Babson
! pointed out. He urged that good viii
gained through advertising should be
allowed classification as invested cap
ital and exempt from taxation.
Gives Results of Observation,
Calling attention to three trips that
he had made TO South America at the
request of Secretary McAdoo TO study
the advantages of advertising trade
marks and brands in the development
of commerce, MIR Babsou stated that
from his personal observation Ger
many built up its extensive trade in
the South American countries prln-
cipaily through advertising.
IF | hire a carpenter to erect a
sign" said Mi Babson, illustrating his
4 ny,4 tTaf or n a ri
business thereon, / can charge the
service of this carpenter and painter
as capital invested. IT, however, | in
vest the same amount of money IN
paper and ink. the government re-
| fuses 10 consider il capital invested,
This is absolutely unjust and dis
tinct discrimination. The work and
the services of advertising men are
Just as valuable to this country as
the services of any mechanic. In
many ways the services of the adver-
Using expert are more valuable be-
cause the demand for goods must come
before the goods are manufactul ed.
Trade marks and brands are as
i'm portant In developing domestic in
dustry and in standardizing manufac-
turing as are buildings and ma
chinery," continued Mr.. Babson. TO
refuse to consider money spent upon
advertising as capital invested and to
allow II In the second instance Is dis
tinctly handicapping American indus
try. Such discrimination not only af-
fects the manufacturer and business
man. but the wage Garner as we'll Ad-
vertising has done more than any
other one thing to create work for
and help the interests OF the wage
earners of the United States
Value Rated High.
In the development of foreign trade
the value of brands and trade marks
is tremendous The success of Ger
man. English and French exporters
has been largely due to the encourage
ment OF the development of brands
by the representative government If
the United States government recog-
nizes the value of trade marks to the
extent of protecting them by legisla-
ton, II certainly should recognize
their value in connection with taxa
'tion. The nation which has the great
est foreign trade after the war will
be the one whose manufacturers have
the greatest good will. Certainly con-
Sress should do everything to encour-
age manufacturers in the development
of this good will"