Statement of 0. R. Strackbein, Legislative Representative before The Senate Post Office and Civil Service Committee April 2, 1973 My appearance before you is in behalf of the International Allied Printing Trades Association. This Association is composed of the combined printing trades unions affiliated with the American Federation of Labor and Congress of Industrial Organizations. The Unions are: The International Typographical Union The International Printing Pressmen's Union The International Stereotypers and Electrotypers Union The membership of these unions is some 350,000. We recognize the need for postal rate increases, including those on second class matter. The general rise in costs and price levels makes increases in postal rates inevitable if deficits that could be regarded as unacceptable are to be avoided. We are, however, concerned over the sharpness of the proposed increase in the rates on second class matter. This is essentially the field of newspapers and magazines. That is why we are interested in S. 842. It would moderate the increase by spreading it over a 10-year period as compared with a period of only 5 years. The publications that would bear the burden of an increase of some 127% in five years are the mainstay, so far as the printed word is concerned, of public information and cultural development. They perform a vital function in our democratic society by providing news of public affairs, economic developments, civic and cultural activities, events in the physical world that are of interest to the people and possibly vital to their welfare, foreign relations, and much else that creates an alert and welloriented public opinion. It is true that reliance on newspapers and magazines is not absolute today because of radio and television, but newspapers and magazines cannot be replaced by these other media without courting a serious public loss. Moreover, the printed media are in competition with the electronic media, and if the former are to be preserved in a state of vigor and vitality great care must be exercised to avoid discrimination in terms of cost burdens placed on each class. Circulation is the very life blood of the printed media, and may be adversely affected by excessive cost burdens. They need, a maximum of circulation for two reasons: (1) for their greater contribution to public intelligence through dissimenation of information, enhancement of the public critical judgment and cultural attainments. Maximum circulation of publications in the form of newspapers, magazines and books offers the best assurance of gaining this objective. (2) The higher the circulation the lower the cost per copy and the greater the support from advertisers. The highest circulation possible is therefore the proper objective of postal rate levels. The two elements go hand in hand. Lower costs are achieved through higher circulation and this goal, if achieved, increases the public's benefit and at the same time enhances revenue from advertisers. or. Rising postal rates may be counterproductive in this endeavExcessively high rates will quite surely produce diminishing returns because they raise costs. There is ample evidence that both magazines and newspapers are already encountering this obstacle. Evidence submitted by the Magazine Publishers Association impresses us who are employed in printing and preparing the magazines and newspapers as worthy of the most serious consideration. We shall not duplicate the evidence here, but will say that it should be given full weight. Circulation is not only down absolutely but on a per capita basis is sliding ominously. Any further burdens imposed might be expected to accelerate the down-trend. This we do not contemplate with equanimity, not only because our jobs are at stake but because of the consequences to the educational, cultural and informational interests of the public. The printed media are facing the dilemma of a vicious circle. They need more income because of higher cost. If they raise their subscription rates, which are already high, circulation may suffer yet more. If they increase their advertising rates, which also are already high, they may lose rather than gain in advertising revenue. All of this is, of course, a matter of degree. If their circulation declines their advertising space is not as valuable to advertisers as it was. Competition will then force either a decline in rates or at least a holding action. Neither alternative supports the public interest or that of the publica tions. Increased costs that would be brought on by the proposed 5-year postal rate increase would make it exceedingly difficult if not impossible to break the vicious downward spiral that would lead to bankruptcy and decimation of all jobs. Mr. Chairman, we endorse the bill S. 842 and urge that this Committee report it favorably and that the Senate will follow suit. This includes the lower rates for the first 250,000 copies of any subject publication. FAIRCHILD PUBLICATIONS, INC. 105 W. Adams Street, Chicago, Ill. 60603 Tel. (312) 726-3170 March 28, 1973 The Honorable Gale W. McGee, Chairman Washington, D. C. 20510 Dear Chairman McGee: In accordance with my letter of March 14, 1973, I am enclosing a statement for the consideration of your Committee, during its upcoming deliberations on various postal relief bills and postal service. Thank you for the courtesy of your attention. Sincerely, FAIRCHILD PUBLICATIONS, INC. Newry Zerner Henry Zwirner Vice President (Ret.) HZ/mw Enclosure |