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This legislation will result in no additional cost to the Government and may have the effect, in a minor way, of producing additional

revenue.

ADMINISTRATIVE RECOMMENDATIONS

The official request of the Acting Postmaster General for this legislation and a subsequent letter dated April 28, 1959, from the General Counsel of the Post Office Department follow:

Hon. SAM RAYBURN,

OFFICE OF THE POSTMASTER GENERAL,
Washington, D.C., March 20, 1959.

Speaker of the House of Representatives,
Washington, D.C.

DEAR MR. SPEAKER: There is transmitted herewith for consideration by the Congress proposed legislation to require information concerning the average of the number of copies of each issue sold or distributed to paid subscribers to be included in sworn statements relating to all publications, and for other purposes.

Under the present law, section 233 of title 39, United States Code, editors, publishers, business managers, or owners of every newspaper, magazine, periodical, or other publication are required to file sworn statements with the Postmaster General each year. In the case of newspapers, it is required that there be included in such statement "the average of the number of copies of each issue of such publication sold or distributed to paid subscribers during the preceding 12 months." Originally such information was required only of daily newspapers. The amendment to require that all newspapers include this information in statements of ownership was sponsored by the newspapers themselves as it put all newspapers on the same basis in competing for advertising as far as circulation claims were concerned. Submission of circulation information annually in sworn statements assists in protecting postal revenues since such information helps the Department to determine whether a publication is entitled to second-class po-age rates.

As this provision is effective in the newspaper field, it also should be extended to all publications, and especially to the periodical field where there is a tendency toward abuses in the practice of free circulation. In practice, the present law is being applied to all publications issued weekly or more frequently, and this includes many magazinetype publications.

The attached legislative proposal will accomplish the desired results, and its early enactment is recommended.

The Bureau of the Budget has advised that there is no objection to the submission of this proposal to the Congress.

Sincerely yours,

J. MCKIBBIN, Jr., Acting Postmaster General.

Hon. Toм MURRAY,

POST OFFICE DEPARTMENT,
OFFICE OF THE GENERAL COUNSEL,

Washington, D.C., April 28, 1959.

Chairman, Committee on Post Office and Civil Service,
House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: You recently introduced H.R. 6135, a bill to provide for uniformity of application of certain postal requirements with respect to the average numbers of copies of publications sold or distributed to paid subscribers, and for other purposes.

The bill is based on our letter and draft of bill sent to the Speaker of the House of Representatives on March 20, 1959. Our draft proposed that the words "and all magazines, periodicals, and other publications" be added to the second paragraph of section 2 of the act of August 24, 1912 (37 Stat. 553), as amended (39 U.S.C. 233). The effect of the proposal is to require all periodicals, not just those published more frequently than weekly, to disclose the average number of copies of each issue sold or distributed to paid subscribers during the preceding 12 months.

We understand that you believed this rather long and involved section should be completely restated for purposes of clarity making the necessary amendments in the restatement. We are in complete agreement with your views.

The Department favors enactment of H.R. 6135.

The Bureau of the Budget, having approved the original submission by the Postmaster General, there is no apparent need for Budget approval of this letter.

Sincerely yours,

HERBERT B. WARBURTON,
General Counsel.

CHANGES IN EXISTING LAW

In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as introduced, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic):

THE SECOND PARAGRAPH OF SECTION 2 OF THE ACT OF AUGUST 24, 1912, AS AMENDED

(37 Stat. 553; 39 U.S.C. 233)

[That it shall be the duty of the editor, publisher, business manager, or owner of every newspaper, magazine, periodical, or other publication to file with the Postmaster General and the postmaster at the office at which said publication is entered, not later than the 1st day of October of each year, on blanks furnished by the Post Office Department, a sworn statement setting forth the names and post-office addresses of the editor and managing editor, publisher, business managers, and owners, and, in addition, the stockholders, if the publication be owned by a corporation; and also the names of known bondholders, mortgagees, or other security holders; and also, in the case of daily, and weekly, semiweekly, triweekly newspapers, there shall be

included in such statement the average of the number of copies of each issue of such publication sold or distributed to paid subscribers during the preceeding twelve months: Provided, That the provisions of this paragraph shall not apply to religious, fraternal, temperance, and scientific, or other similar publications: Provided further, That it shall not be necessary to include in such statement the names of persons owning less than 1 percentum of the total amount of stock, bonds, mortgages, or other securities. A copy of such sworn statement shall be published in the second issue of such newspaper, magazine, or other publication printed next after the filing of such statement. Any such publication shall be denied the privileges of the mail if it shall fail to comply with the provisions of this paragraph within ten days after notice by registered letter of such failure. That all editorial or other reading matter published in any such newspaper, magazine, or periodical for the publication of which money or other valuable consideration is paid, accepted, or promised shall be plainly marked "advertisement." Any editor or publisher printing editorial or other reading matter for which compensation is paid, accepted, or promised without so marking the same, shall upon conviction in any court having jurisdiction be fined not less than $50 nor more than $500.]

The editor, publisher, business manager, or owner of a publication entered as second-class mail shall file with the Postmaster General and publish in the second issue thereafter of the publication to which it relates a sworn statement on forms furnished by the Postmaster General on or before the first day of October of each year setting forth

(1) the names and post office addresses of the editor and managing editor, publisher, business managers, and owners;

(2) the name of the corporation and the stockholders thereof if the publication is owned by a corporation;

(3) the names of known bondholders, mortgagees, or other security holders; and

(4) the average number of copies of each issue of the publication sold or distributed through the mails or otherwise distributed to paid subscribers during the preceding 12 months.

The sworn statement need not include the names of persons owning less than 1 percentum of the total amount of stock, bonds, mortgages, or other securities. The Postmaster General shall deny the privilege of secondclass mail to a publication which fails to comply with the provisions of this paragraph within ten days after notice by registered mail of the failure. This paragraph is not applicable to religious, fraternal, temperance, scientific, or similar publications.

Editorial or other reading matter contained in publications entered as second-class mail and for the publication of which a valuable consideration is paid, accepted, or promised shall be marked plainly "advertisement” by the publisher. Whoever, being an editor or publisher, prints in a publication entered as second-class mail editorial or other reading matter for which he has been paid or promised a valuable consideration, without plainly marking the same "advertisement", shall be fined not more than $500.

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86TH CONGRESS 1st Session

HOUSE OF REPRESENTATIVES

{

REPORT No. 574

DESIGNATING THE NEW LOCK ON THE ST. MARYS RIVER

AT SAULT STE. MARIE, MICH., AS THE JOHN A. BLATNIK LOCK

JUNE 23, 1959.-Referred to the House Calendar and ordered to be printed

Mr. BUCKLEY, from the Committee on Public Works, submitted the

following

REPORT

[To accompany H.R. 7808)

The Committee on Public Works, to whom was referred the bill (H.R. 7808) to designate the new lock on the St. Marys River at Sault Ste. Marie, Mich., as the John A. Blatnik lock, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

PURPOSE OF THE BILL

The purpose of the bill is to designate the lock to be constructed to replace the existing Poe lock on the St. Marys River at Sault Ste. Marie, Mich., as the John A. Blaknik lock in honor of the Representative from Minnesota, who is chairman of the Subcommittee on Rivers and Harbors of the Committee on Public Works.

GENERAL STATEMENT

The formal opening of the St. Lawrence Seaway on June 26, 1959, marks the beginning of the last phase of one of the most tremendous projects ever to affect the economy of the United States and the Midwest in particular. For many years foresighted individuals have fought for the opening of the Great Lakes area to the ocean. The transit of oceangoing ships through the mighty St. Lawrence and into the great Lakes will bring the products of all foreign countries directly to the great heartland of the United States and will permit the products of the midwestern area to be exported by low-cost shipping to all parts of the world.

In order to utilize the St. Lawrence Seaway to its full capacity other concomitant projects are necessary. One is the deepening of the con

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