THE TWOPENNY PAPER

Evening Post, Volume CXIII, Issue 40, 17 February 1932, Page 9

THE TWOPENNY PAPER

UNPROFITABLE CHARGE

SOLD BELOW COST

. (By Telegraph.) ; (Special to ''the Evening Post.") '

AUCKLAND^ 16th -February.

"There is a popular,, misconception" that newspaper, proprietors are well Te-; paid for the: heavy costs they-incur ia. establishing news services by the re-, ceipts from the sales of their; papers," said Mr. C. W. Earle, C.M.G., president of the Newspaper Proprietors' Association of New Zealand/ in addressing the Chamber of Commerce this evening.

"Indeed; I, have heard street car arguments arising out. of the suppositional profits^ made from the ■ circulation, sales of metropolitan daily papers. As a matter of fact, the idea that the return from the sale of papers at a penny-halfpenny, which is the general charge, or two pence for casual sales, is profitable tothe newspapers is quite erroneous. The public actually buy tho papers at less than the cost of 'production. . The cost of the printing paper used, plus tho charges for handling, and distribution, usually eat up the return from sales,' leaving nothing to pay for the costs of management:, editors, reporters, 'mechanic's, advertising and accounts staffs, cable and telegraphic charges, interest on machinery, plant, and'buildings,. and. so on. "It is only the revenue from-ad-vertising that makes it possible! to pro-' duce and sell a newspaper at the low price now charged. The actual price to the purchaser of a paper if he paid the full cost of its productionwould be more than double the present price;, on many occasions with the larger-sizedi issues the; cost would be treble the present price, or even more if the. *saino; standard of service were maintained..";