Every evening, Wilmington daily commercial., 1918-07-18
ADVERTISING HELD
AS BUSINESS FACTOR
Roger W. Babson, Statistical Eek
pert, Discusses Features of
New Revenue Plan.

The value of advertising in building
up business was emphasized by Roger
W Pabson the statistical expert now
working for the Department Of Labor
who has made several trips TO South
America for Secretary McAdoo. in testi
fying Yesterday before the WAYS and
means committee
Recognition of tho importance of good
Will IN business ms derived through adj
vertising, even more than through other
agencies, should be allowed for IN taxing
capital. according to MIR Rabson s state
ment regarding the new war revenue law .
That employment of money for hiring
wUrknen To hsautify a property IN order
to make II more attractive 10 trade IS
permitted to he classed AS invested capital,
whereas money spent Tor advertising.
which docs infinitely more 10 make the
property popular cannot he 80 classified,
Mr.. Babson pointed out. tie urged
that good will gained through advertising
should be allowed classification as invested
capital and exempt from taxation.
GIVES RESULTS OF OBSERVATION.
Calling attention tn three trips hat he
had made to South America at the request
Of Secretary McAdoo to study the ad-
vantages of advertising trade marks
and brands IN tho development OF com
mercc. Mr. Bahson stated that from his
personal observation Germany built up
it's extensive trade IN he South American
countries principally through advertising.
IF hire a carpenter to erect a sign.
said Mr. Babson illustrating his idcas,
and a painter to advertise my business
thereon. | can charge the service of tins
carpenter and painter as capital invested.
IF however. | invest the same amount of
money in paper and ink. the government
refuses to consider It capital invested.
This Is absolutely unjust and distinct
discrimination The work and the ser
wees OF advertising men are Just as
valuable to th.s country as the services
af any mechanic In many ways the
services Of the advertising expert are
more valuable. because the demand tor
goods must come before goods are manu-
featured
Trade marks and brands are as
important in developing domestic IN
dustry and IN standardzIng manufacture
ing as are buildings and machinery,
continued Mr. Babson To refuse to
consider money spent upon advertising
rs capital invested and to allow i in the
second inst ance ls distinctly handicapplng
American industry Such discrimination
not ONLY affects the manufacturer and
business man. but the wage-earner as
well. Advertising has done more than
any one other thing TO create work Tor
and help the interests Of the wage-earners
of the United States
VALUE RATED HIGH
ON tho development Of foreign trade
the value Of brands and trade marks Is
tremendous The success OF German,
English and French exporters has been
largely due to the encouragement OF the
development OF brands by the representa-
tive government II the United States
government recognizes the value of trade
marks to the extent OF protecting them
bv legislation II certainly should recognize
their value in connection with taxation.
The nation which has the greatest foreign
trade after the war will be the one whose
manufacturers have the greatest good Will
Certainly Congress should do everything
to encourage manufacturers IN the develop
ment of this good will. ~ ashingtOn
Evening Star