Final answer:
Pulitzer is worried that a reduction in the raise for newsies could result in a rise in newsprint prices, which would significantly increase his costs.
Step-by-step explanation:
The problem that Pulitzer is worried about is a rise in newsprint prices. If the raise for newsies is reduced, it could result in Pulitzer having to pay higher prices for newsprint, which would increase his costs. Newsprint is the material used to print newspapers, and an increase in its prices would have a significant impact on Pulitzer's expenses. For example, if the price of newsprint rises, it would directly affect the production cost of each newspaper and reduce the profit margin.