The New York herald., 1922-06-16
SENATORS RESENT
ATTACK ON PRESS
Condemn McCumber Claim
That Advertisers Force
Fight on Tariff.
CALL CHARGE IDIOTIC
Hitchcock Explains Strictly
Business Transactions
Merchants Make.
CALL CHARGE IDIOTIC
SIMMONS BACKS PAPERS
Tells Why People in Smaller
Cities Put Reliance in Net
ropolitals Journals.

Special Dispatch to THE New YORK HERALD.
New York Herald Bureau.
Washington. ID. g., June rs.
Senators Hitchcock (Neb.) and Sim
mons On. c., Democrats, to-day de-
nounced in vigorous terms the state
ment made yesterday in the Senate
by Chairman McCumber IN. d. of
the Finance Committee that the main
reason for the opposition to the tariff
bill by the newspapers was "the fact
that they are subsidized by the large
sums spent by importers and the de-
partment stores for advertising"
Senator Hitchcock characterized TIE
attack as "idiotic. childish. provincial
and entirely out Of date" Then he
added
IF there is one thing fairly estab-
lished in the newspaper world to-day It
is that advertising Is placed upon the
strictest business principles and there is
not an advertiser of any importance
who does not buy mis- publicity at the
cheapest price at which he can get It..
There is not one OF them who spends a
dollar IL he can avoid spending it. OF
the millions of dollars invested every
year In the newspapers of New York
city, practically every dollar is put into
newspaper advertising upon the most
cold blooded business principle. There
is not an advertiser who goes into q
paper by reason of favor, and / doubt
xf,tS tSaf1 nvA tttn1 MT <xf oxaA ar
cent. of the advertising in New York
city is q matter Of favor.
Advertising as a Business.
Merchants do their advertising be-
cause they have to reach the public.
They buy their advertising space as
they buy the goods they sell, upon the
lowest possible market and to get the
greatest amount OF publicity for the
least amount OF money. Any paper in
New York. probably every paper in New
York, rejects thousands of dollars of
advertising year and declines to ac-
cept II. l repeat. the money of the ad-
vertiser that goes into the newspapers
nowadays goes in because the merchant
| Is compelled to do !. to get publicity,
and the day has gone when advertising
is placed by favor.
During the last generation advertis-
Ing has developed to science and the
great merchants of New York employ
| men at high salaries TO find how they
can get the largest amount OF advertis-
ing. the largest amount OF publicity.
for the least amount CT money, and they
figure down to the very hundredth part
of cent how mucn space costs per
thousand of circulation, and they buy
that inch. They buy it, not because
tI..1, f.xv A1.-. h.xN
cause they have to nave the publicity to
run their business. So this talk about
advertising being placed by favor is not
only an unjustifiable charge against the
New York newspapers and against the
newspapers Of any city, but It Is an
idiotic charge"
In concluding his remarks, Senator
Hitchcock said that the Senator from
| North Dakota has betrayed his abso-
lutte ignorance Of modern business
methods when he argues that advertise
| ment is placed by favor. A merchant
would be an idiot to advertise by favor.
What, he is doing is to advertise for
busihess. and he places his advertising
where he can get the most publicity and
circulation for the least possible money"
Upholds Metropolitan Press.
Senator Simmons said that IL the
great metropolitan newspapers like THE
NEW YORK HERALD "can be Influenced
TO oppose a measure by sinister and
selfish motives then indeed the press of
the country has sunk to q low level and
the American people are In an awful
plight IL that palladium of liberty has
been besmirched."
The North Carolina Senator asserted
that the people of the small cities and
rural communities of the country read
the metropolitan papers because they
believe they can thus get the news free
from political and partisan influences
which prevail in the small communities.
1T is distressing to heaf~the chairman
of the Finance Committee" he added,
SAY that the press of the leading cities
can be purchased"
The opposition to the tariff bill Is not
confined to the metropolitan press. but
extends from one end OF the country to
the other, and Is quite as pronounced
| in the small Republican and Independent
newspapers as among the big dailies,
Senator Simmons said.
THE fact is," he added. most of the
advertising space In the newspapers Is
taken up with advertisements OF trust
controlled articles, such as tobaccos.
The owners of these articles favor this
bill They are in the class which /
would expect would try to subsidize the
press II It we're possible"
Comparison of Prices.
Reverting TO the "show" staged by
Chairman McCumber in an attempt to
demonstrate how the American people
are being heeced by the importers, SEN
ator Simmons said:
THE retail price of the domestic
article or the retail price OF the foreign
article in our market to-day bears very
little relation to the cost of production
| in either this country or the foreign
country in which the competing articl,
Is produced. The retail price of an ar.
| ticle In the American market has vert
little relation to the manufacturers cos
of that article. 1t Is in many instance.
as we know, from 200 to 500 and 400
per cent. higher than the manufacturer
price or the producers price. Take IN,
common article of Irish potatoes Thi.
is an agricultural product. When thai
product leaves the producer. In many in
stances. the barrel OF potatoes does no
sell for more than as cents or n 81
When It reaches the wholesaler IL |,
probably sold by him to the retailer fol
50 or possibly $40 barrel. When tn,
retailer divides II UP and sells II by tn,
peck or quart. 1t has advanced in pric,
So, Sc, or 81 barrel
| so Il Is with all lines OF business In
| tho country We know n II is a mat.