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4. P84: M 27

MAGAZINE SUBSIDY AND REVENUE FOREGONE

93-1

HEARINGS

BEFORE THE

COMMITTEE ON

POST OFFICE AND CIVIL SERVICE

UNITED STATES SENATE

NINETY-THIRD CONGRESS

FIRST SESSION

ON

S. 411, S. 630, S. 842, S. 1395, S. 1404, and H.R. 4129

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COMMITTEE ON POST OFFICE AND CIVIL SERVICE

GALE W. MCGEE, Wyoming, Chairman

JENNINGS RANDOLPH, West Virginia
QUENTIN N. BURDICK, North Dakota
ERNEST F. HOLLINGS, South Carolina
FRANK E. MOSS, Utah

HIRAM L. FONG, Hawaii
TED STEVENS, Alaska
HENRY BELLMON, Oklahoma
WILLIAM B. SAXBE, Ohio

ROD CROWLIE, Staff Director
CLYDE S. DUPONT, Minority

(II)

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ALPHABETICAL LIST OF WITNESSES

APRIL 2, 1973

Cooke, Eileen D., director, Washington Office American Library Associa-
tion_..

Klassen, Hon. E. T., Postmaster General, U.S. Postal Service; accompanied
by Louis Cox, General Counsel; Benjamin F. Bailar, Senior Assistant
Postmaster General; and Arthur Eden, Director of Office of Rates and
Classification_-_-

Nelson, Hon. Gaylord, a U.S. Senator from the State of Wisconsin_
Stover, Francis, director, National Legislative Service, Veterans of Foreign
Wars; accompanied by John D. Fagan, assistant legislative director....

Strackbein, O. R., legislative representative, International Allied Printing

Trades Association..

Udall, Hon. Morris K., a U.S. Representative in Congress from the State
of Arizona....

Wertz, Terrell M., assistant director, National Legislative Commission,

The American Legion; accompanied by past national commander James

F. O'Neil, publisher, The American Legion Magazine, Daniel H. Burk-

hardt, department adjutant, The American Legion of Maryland, Mrs.

T. G. Chilton, national president of the American Legion Auxiliary..

Barnard, Russell, publisher, Harper's magazine_
Daly, John Jay, vice president, Direct Mail Advertising Association,
accompanied by David E. McGiffert, Esq., postal counsel..
Day, Hon. J. Edward, general counsel, Associated Third-class Mail Users
Fetsch, Richard, circulation manager, Grand Forks, N. Dak., Herald,
representing the American Newspaper Publishers Association; accom-
panied by Cyrus Favor, general manager, International Circulation
Managers Association; Joseph Prendergast, manager, Traffic and News-
print Department, American Newspaper Publishers Association.__
Fink, John F., executive vice president, Our Sunday Visitor, accompanied
by Russell T. Hitt, chairman, Postal Committee, representing Catholic
Press Association, Associated Church Press, Evangelical Press Associa-
tion, American Jewish Press Association; and James Doyle, executive
director, National Press Association_-_-

Goldwater, Hon. Barry M., a U.S. Senator from the State of Arizona.......

Kelly, Stephen E., president, Magazine Publishers Association, accom-

panied by Harry C. Thompson, chairman of the board; Joel Davis,

president and publisher, Davis Publications, Inc.; John M. Burzio,

MPA Washington counsel; Richard J. Barber, president, Richard J.

Barber Associates__.

Kennedy, Hon. Edward M., a U.S. Senator from the State of Massa-
chusetts..

Milholland, James, chairman, American Business Press.
Myers, Robert, publisher of the New Republic___

Peterson, Kenneth, legislative representative, International Labor Press
Association, AFL-CIO; accompanied by John Barry, secretary-treasurer,
and Richard Howard, manager, Labor Newspaper...

SUBMISSIONS FOR THE RECORD

83

382

45

Formal report on H.R. 4128 by the Law Department of the Postal Service. Digest of statements concerning condition of the newspaper and magazine publishing industries__.

"Editorials-More Than Dollars Involved in Proposed Mail Increases" from the Wisconsin Rapids Tribune, July 5, 1972..

"In Freedom's Interest" from the Delevan (Wis.) Enterprise, July 6, 1972..
"Suffer the Little Voice" from the Clintonville (Wis.) Tribune-Gazette,
July 6, 1972.

"Increases in Postal Rates Economic Threat to Newspapers" from the
Fond du Lac (Wis.) Commonwealth Reporter, July 7, 1972..
"Impact Critical" from the Antigo (Wis.) Daily Journal, July 11, 1972.
"Periodicals in Danger" from the Janesville (Wis.) Gazette July 26, 1972..
"New Postal Rates a Threat" from the New World, July 28, 1972.-
"Free Flow of Opinion in Jeopardy" from Topeka, Kans., State Journal,
July 29, 1972__

"Postage Rates to Kill Small Papers" from the A D A World, October 1972.
"Death of Life Magazine" from the Journal Times, Racine, Wis., Decem-
ber 12, 1972.

"Postal Overcharge" from the New York Times, February 9, 1973.
"Stop Postal Rate Hike" from the Wisconsin State Journal, February 16,
1973_.

"Second-Class Postal Rates" from the Stevens Point Daily Journal,
February 19, 1973_.

51

58

92

93

94

95

96

96

97

97

98

99

99

100

100

Prepared statement of James F. O'Neil, publisher, The American Legion
Magazine_-_-

119

Prepared statement of Mrs. T. G. Chilton, national president, American
Legion Auxiliary _ _ _

144

Prepared statement of Francis W. Stover, director, National Legislative
Service, Veterans of Foreign Wars of the United States---

165

Resolution that was adopted by the Council of American Library Association that relates to the second-class mail..

171

Prepared statement of O. R. Strackbein, legislative representative, International Allied Printing Trades Association__

176

Prepared statement of Henry Zwirner, vice president (retired), Fairchild
Publications Inc..

180

Prepared statement of Irwin Karp, counsel, The Authors League of
America__

188

APRIL 3, 1973

Statement by Senator Edward M. Kennedy introducing a KennedyGoldwater Bill to protect magazines and newspapers from rising postal rates____

Newspaper and magazine articles inserted in Congressional Record. Prepared statement of J. Edward Day, Associated Third Class Mail Users. Response to Senator Fong's question to the Magazine Publishers Association regarding available data concerning the rate of profitability of the magazine industry measured against equity..

208

214

230

250

Prepared statement of Stephen E. Kelly, president, Magazine Publishers
Association, Inc..

265

Financial Survey by Price Waterhouse & Co......

280

Prepared statement of Joel Davis, president and publisher, Davis Publications, Inc__.

287

An assessment of the impact of increased Second Class Postal Rates on the magazine industry by Richard J. Barber Associates, Inc.. Summary of the Barber Report_

288

356

Prepared statement of Robert J. Myers, representing the Committee for the Diversity of the Press__.

365

Prepared statement of John Jay Daly, vice president, Direct Mail Advertising Association____

373

"A Threat of Death by Mail", an article by John Fischer taken from Harper's magazine_ .

397

Prepared statement of Emory Cunningham, president and publisher, The
Progressive Farmer Co..

401

Prepared statement of Bert Lund, president, Agricultural Publishers
Association, Inc............

406

Prepared statement of Henry Brief, executive director, Recording Industry
Association of America, Inc.--

417

MAGAZINE SUBSIDY AND REVENUE FORGONE

MONDAY, APRIL 2, 1973

U.S. SENATE,

COMMITTEE ON POST OFFICE AND CIVIL SERVICE,

Washington, D.C.

The committee met, pursuant to notice, at 10:03 a.m. in room 6202, Dirksen Office Building, Hon. Gale W. McGee (chairman of the committee) presiding.

Present: Senator Fong.

Staff members present: David Minton, staff director and counsel; Clyde DuPont, minority counsel; Tom Ebzery, assistant counsel; Richard G. Fuller, Dan Doherty, and John J. Giannini, professional

staff members.

The CHAIRMAN. We have two important sessions going on this morning, and in each of them Senator Fong and I are the relevant members in terms of responsibility, so we have divided the responsibility this morning. He is defending McGee's interests in the markup of the Defense Appropriations Subcommittee, of which we both are members and I will represent him here in the course of this particular hearing. That is the only reason for his absence here this morning.

The purpose of this hearing is to take testimony on a number of bills relating to the general problem of mail users adjusting to the impact of the postal rate increases. So to keep the record straight we will put in that record copies of all the bills which are pending that relate to this matter, plus the legislation introduced by Representative Udall, which is pending before the House Committee.

[Information referred to follows:]

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