The Wilmington morning star., 1943-09-23
BY WEsTBROOK PEGLER

BY WESTBROOK PEGLER
NEW YORK.-Senator Truman has put q
finger on an ouch that has been fretting a lot
OF us In the newspaper business and, l guess
IN the magazine and radio trades, too
He says that some big corporations which
have gone over entirely to war industry, aban-
donlng the production of consumer goods.
have been spending the peoples money on
their goodwill or institutional advertising
campaigns. They get their incomes from GOV
eminent contracts nowadays. and, although
they have nothing to sell to the public. they
continue to keep their names in the public
eye and ear lest they are forgotten The cost
OF this advertising is reckoned as a business
expense deductible from income in the COM
putauon OF their income taxes and the SEN
ator thinks it shouldn't be deductible but
shoulo be paid out of profits, instead
The treasury raised this issue long time
ago When there was no question of war-order
revenues and the companies were drawing
their money from straight commercial bust.
ness with the public Some of the Ieftward
ldeologlsts In the Treasury argued that adj
vertslng constituted a needless expense add
ed to the price Of merchandise but that
proposition was resisted as an attempt TO
starve the press of the income which enables
1t TO remain free and objective and thus SUI
sure press.
Inc situation really is different now be-
cause the present advertisements to which
senator Truman refers are strictly forget-me.
nots and many of Them far from exhorting
the people to patronize these companies i'm
plore them not to. The railroads, for in
stance. put it up to you as a patriotic matter
to keep off their trains unless your trip is
! absolutely necessary or your name is Mrs.
Eleanor Roosevelt.
IN the original Treasury plan it was con-
tended that the people paid double for this
advertisement, first in the loss of taxes on
these deductlble expenses, and again in a re-
tai mark-up to cover the advertising costs.
1t all added up to the exact cost of the adj
veruslng, not twice the cost, but when our
treasury wants to prove something in its
own favor, two and two make one or 10 or
Whatever Its point happens to be-
truman doesn't monkey with that how
ever He simply claims that the taxpayers
pay the advertising costs of companies which
have nothing to sell.
But II 1t be granted as I think he grants.
that the good will which these companies
have established by advertising and perform.
ahce over the years is living thing which
must be fed if it is to be kept alive and a
possession OF great value if you don't let
them maintain their publicity for the duration.
you are asking them to kill themselves off
MOST OF them are doing wonderful work in
the war and would not have been in existence
10 40 that work on short notice if thew had
not developed in time of peace Whether ad.
Vertslng was necessary to that DEVELOPMENT
is not worth arguing. They did advertise and
they did develop and when they converted
10 war production they did so without res
efVauon and to an extent which enabled the
president the other day to threaten Hitler
with horrible fate
II 1t would make anyone feel better it might
be nice idea to let them mike more profits
ana pay their advertising costs out of profits
out II you don't do that and YOU do disallow
the deduction of this expense you kin off
their advertising and that is where the in
terests OF our free press are seriously ieop.
ardized.
Our free press. the best and the most in
dependent in the world, lives by legitimate
advertising revenue and the only alternative
IS the kept press of this or that group
| Opportunity for this discussion. the Mime
sofa CLIO recently decided to start its own
newspaper a weekly, to be supported by a
tax OF seven cents month every CLIO
member voluntary or captive If we say
there are 900 members in Minnesota. that
means kitty of $1,000 month for weekly
paper, aside from its advertising revenues.
much of which could be obtained by heat or
pressure from merchants contractors saloon
keepers and others who know what is good
for them. I don't say this Minnesota CLIO
paper would do that but if it did it would be
following the established tradition of union
papers, not pioneering.
| Now, I ask you, does anyone believe that
such a paper would give an honest objective
report of any issue involving any CLIO interest
against any disputant?
They never do but this paper could lust
as well get subsidy of one cent day per
member, Or $1,000 day, and 60 into the
daily field and, with their legitimate adver
Using revenue shut off, the free independent
papers could be starved to death in no time.
Morally they have no right to lew these
assessments for this purpose but unions ~
have the power to do it and morality never
troubles them.
You can't have honest press under SUBJ
sia a3 s bsve 50 often and SO t,,,, CONNER,
out and this is true even though these ANGELS
be the bosses of the Minnesota Go