New-York tribune., 1911-02-14
HITCHCOCK TO CRITICS
Defends Proposed Increase OF
Magazine Postage.
REPLIES TO PUBLISHERS
Says They Make Tremendous
Profits, While Present Rate
Costs Government Millions.

Costs Government Millions.
Washington, Feb. lS.-Large profits as
,er,ed 70 be made by the publishers OF
magazines and immense losses being sus-
tanned by the government In the transpoi
tation of magazines as second class man
at existing rates are made the oasls VI
statement issued by Postmaster Generdi
H,tcbcock tonight in response to the at
tack made by magazine publishers on 'he
nronosed increase of the rate or the ad-
vertisine pages of large magazines i'''
one cent 10 four cents pouno.
Mr.. Hitchcock says that the proposed ne"
rate docs not affect newspapers OF any
kind. nor does It apply to periodicals man
,ng loss than 1000 pounds of each issue
Annlyine the increase TO the entire amount
~ second class mail matter. he adds, II
would amount 10 less than one cent
pound ~,
Mr.. Hi,chcocks statement in part foi-
lows:
In a nhole-rase newspaper suNei M us rs
n.ent. signed by thirty-four OF the prln- pin
-iral magazine and periodical puolC;ati tiT,,' an,
OF tho country il IS stated that 'Is tho
creased rate will drive a majority VI - "a
,ouulsr. magazines out of cXiS'eHSe, sr H"
,,'i,H tborn The enormous volume of proht-
sbe first class mail their auNeTusne this
stes" The public should Know tndt .Ls ~.
chtree is made in the face OF tne IdCt ~ the
n psrt. is not all. of the slgners OF S. 81
statement arc realizing Tremendous piou1S
from the vast amount of hlSh p,lCeu "N 20
vert sements contained IN INC o,a,,, vUru,,,,, ie
thor periodicals. which the Goyrrulmiei low, w
today carryin. at the eNtraorolh"IIE "" ~
rate o. cent . pound. and al 'o'a' ''s'
o. r,crc than cents pound. ca, ooo 40
T,nilc the rscal year 1910 over "N.riad
to,,rGs of second class matter was Cai *
,iroush the public mails, at a loss pl ~,
a., ne0 70 the government Nhllt IL
t,.us f-. m thrd class matter were pro
saUy sclt-SuetaininE, ana on lhal " -
mi foftth class matter there was ldIrC
.a,.inc Of revenue. leaving the poslal u''.V'I .
roi the year not quite S5.cpOCo. NnlIe ".
c,re~ ciasses of mail matter pay the cost
~ frcir c4riiage and on the hrst dlu %
f'urth classes n large revenue II $50, uV. Hns
fhc greet burden II the postal deHcit ne re
r, tie d,Cr Of second class mater; IL
Zine 10 he determined whether the Pto-
nc who mail letters Of general cot5eSpU,- na,,,
G,ncc. the publishers OF books ana aYI pa,,i-
,.blets ~ d the sende-s Of small merShsdHi
Gise shall Re taxed 10 meet the IrLr I,i,.
caused by the extension o. inc SuuS1US .'S,raS
r1te to the publishers of the large nldS@-
zines Cf the country.
Magazine Advertising.
II has bccn found on investisauon i1sI
one or tho great periodical puoncauous
signing this protest contained IN tWent!
one a. its Succ essive issues. from January
faf6 10 and including May q. 1910. .ex,,
elusive Of cover Pages. an average Ol iI.oS' 80
aSate lines OF advertising matter WI nf
al the same rate would make total Oh
7 01S f0> lines FOR the year The puohSher
:unounced that on and after Ocioper H.
lclo. the rate for ordinary adNertlsIhn ;,n. ni
This publication would be s. an agate nne' n1'
The charge for the outside cover page sfVyo'
FOR the inside cover page GOoV-an =, pno 90:
respectively. Il orr s.. $500 and 500 % oSel
former rates. At these rates the sr3ss 3o
line OF the ordinary advertising space Tor
one year would amount to s66Ss 4os. ny
rTofts resulting from the increase OF dHo
unfortunately sufficient to pay the entldse
hostage on both reading matter, ana au-
yertisine at four cents pound on tl,s ~
total mailings of this puolcau,0onIo; -''-'o''0
mounds during the fiscal year lsIV. .,oa
In printed statement recently issued
BY the president of one OF the ptilS>iipai >ipai
magazine publishing compadtss. pnns,sb, @ nature
of the magazine business was clearly seo
forth According 10 TINS stateineht, T. I u,i5 .t
profits Of that one magazine lot aaso .,e over
the corresponding month OF 1919 or IVV Pc
cent on advertisements and lol per cent On on
subscriptions. making a net annual piUr'
for dividends and surplus, based on q 81 oeo
culation OF 800 900 copies monthly, OF N54o'2oV'
Regarding the magazine business generals
this gentleman says IN ms Statement NC. NC
magazine publishers receive gross lhcoIutS
as high as s6.oo0cc0 in single year: odo no1o oao
dends amounting approximately TO N"V'Vvs
yearly have been made. speaking oi
fhe notification business of several or the
eieners OF the protest against the proposed
legislation he saws that one OF them. ac-
rCroing TO his own statement, realizes
net proft of 81 ,0o0(o0 annually. OF another.
tbe publisher Of two great publications..
that his gross income is more than sbWpvp
ANNUALLY and that his net profits for the
same Ieriod are over 81. 100000. Of another.
that the business Yields more than 10 per
cent on = capital Of 80 900 cJ0: Of Vet an
other that his business represented prOnt
Of 100 per cent wear 10 its stockholders.
From this il l. apparent that the grounds
Of protest are the personal interest Of the
punlishers and not the welfare Of adYer-
Users or the general reading public.
Discrimination Denied.
So Car from being q discrimination. ne
Yroposed rate II distinct step in the
direction Of equalization of postage rates.
and il falls more heavily upon magazines
than on newspapers or small periodicals
only where they exercise privileges not in
ionded by tho original postage statute.
While newspapers and periodicals Of less
than four thousand pounds Of mailings at
each issue are exempt from its provisions,
vet. this distinction is warranted by the
facts and is just and equitable. as the
transportation OF newspapers through me
puhlic mails is for a much shorter haul
Than that Of magazines and periodicals.
Small periodicals. from their size and
character are not usually so largely de-
voted 10 advertisements because of their
limited circulation and when they attain