The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-02-26
The POSTMASTER GENERAL AND
THE MAGAZINES.

s j
Postmaster General Hitchcock has
drawn the fire of the magazine editors
by proposing that postage on their
publications be increased from one
cent a pound to four cents This is
not to apply to magazines mailing less
than 1000 pounds of any issue nor to
newspapers of any kind.
An advertisement signed by thirty
four of the principal magazines and
periodicals of the country says the
increased rate will drive a majority OF
popular magazines out of existence,
and with them the enormous volume
of profitable first-class mail their adj
vertising creates
This charge, Mr.. Hitchcock re-
spends, is made in the face OF the
fact that a part, if not all, of the per-
iodicals are realizing tremendous prof
It's from the high-priced advertise
ments contained in their columns,
which the government is today carry
ing at the extraordinarily low rate OF
cent per pound. and at total cost
of more than 8 cents pound.
The postmaster general submits
figures which show that in the fiscal
year of 1910 over S0O.000.00O pounds
of second-class matter were carried
through the public mails, at loss of
S62,000.00o to the government, while
the returns from third-class matter
were practically self-sustaining OF
the first and fourth-class matter there
was a large saving revenue, leaving
the postal deficit for the year not
quite s6,000.00o. The great burden of
the postal deficit he pieces at the door
of the Second-class matter.
Postmaster General Hitchcock calls
attention to the fact that IN printed
statement recently issued by the pres
ident OF one of the principal maya
zines OF. New York City the exceeding
ly profitable nature of the magazine
business was clearly set forth. Ac-
cording to this statement, the profits
of that one magazine for October,
1910, showed an increase over the cor
responding month for 1903 of 100 per
cent on advertisements and Isl per
cent on subscriptions, making a net
annual profit on dividends and surplus,
based on circulation of 100000 copies
monthly OF s34s.9S0. Regarding the
magazine business generally, this gen.
tleman says that magazine publishers
receive gross incomes as high as So
100000 iii single year. Dividends
amounting approximately to $1,000
600 yearly have been made.
Investigations recently made by the
post Office department showed that
large numbers OF periodical publica-
lions alre y entered as second-class
matter are in reality nothing more
than trade catalogues, which, under
the law, ought to be treated as third
class matter and subject to postage
charge of cents a pound, which is
the rate for catalogues. BY inserting
few pages of reading matter these
publications succeeded in being class.
ed as magazines and thus secured adj
omission at the cent-apound rate.
Among publications of this kind is one
containing 40 pages, SO per cent of
which are devoted to advertisements !;
another containing $50 pages, 81 per
cent Of which are devoted to adver-
tisements; another containing 238
pages, SO per cent of which are devoted
to advertisements; and another con
tanning 26S pages, SO per cent of which
are devoted to advertisements AL
most the entire space in these publ
cations is devoted to the carrying oil
! commercial advertisements, and this
| in defiance of the statute specifically
excluding from the second-class priv
| leges publications designed primaril,
for advertising purposes.
BY the proposed law, magazines, In
! SO far as they provide public informa
ton, are left exactly on par witt
| newspapers and the smaller period
Gals, for the increase of rate of
cents pound attaches only to sucf
1 portions of the magazine as are devot
ed to advertising purposes.
/ The stock argument Of magazine
publishers that the profit to the gov
eminent on first-class matter induced
! bv the advertisements in their publ
cations offsets any loss incurred By
reason of the low postage rate OF
second-class matter is disproyed b.
/ the fact that the governments entire
profit on firstclass matter is less thar
the total loss on second-class mai
matter.
So far from being discrimination
/ Mr.. Hitchcock points out that the
proposed rate Is distinct gain II
the question OF equalization of posta
rates, and it falls more heavily or
magazines than on newspapers OF
small periodicals only where they ex
ercise privileges not intended by thu
original postal statute. While news
/ papers and periodicals of less thar
1000 pounds of mailings at each is
sue are exempt, this distinction i:
warranted and is equitable, as thu
transportation OF newspapers is TO
a much shorter haul than that 0
magazines and periodicals.