In a whole page newspaper advertisement printed on the 12th instant, signed by 34 of the _principal magazine and periodical publications_ of the country, it is stated that the increased rate “will drive a majority of the popular magazines out of existence, and with them the enormous volume of profitable first-class mail their advertising creates.” _This charge is made in the face of the fact that some, if not all, of the signers of the statement are realizing tremendous profits from the vast amount of high-priced advertisements._
It has been found _on investigation_ that one of the great periodical publications signing this protest contained in 21 of its successive issues, from January 1, 1910, to and including May 21, 1910, exclusive of cover pages, an average of 19,354 agate lines of advertising matter, which, at the same rate, would make a total of 1,006,408 lines for the year.
On October 1, 1910, the publisher of this periodical increased the rate for ordinary advertising in his publication from $5 to $6 an agate line. At the higher rate the _gross value_ of the ordinary advertising space for one year would amount to $6,038,448. Increased rates charged for the inside and outside cover pages would bring $650,000, making a total _gross value_ of $6,688,448. Allowing a discount of 15 per cent, or $1,003,267, there would remain as a _total net value_ of the advertising in this publication for a single year the _tremendous sum of $5,685,181_. The additional income from advertising resulting from the increased rates would amount in a year _to $957,107, which would be much more than sufficient to pay the proposed higher postage rate of 4 cents a pound on the advertising pages of the publication during the fiscal year ended June 30, 1910_. In other words, _the advance in advertising rates for this periodical will not only meet the higher postage charges, but will leave a surplus of increased revenue to swell the annual profits of the magazine_.
In a printed statement recently issued by the president of one of the leading magazine-publishing companies of New York City, _the exceedingly profitable nature of the magazine business was clearly set forth_. According to his statement the profits of his own magazine for the _month of October, 1910, showed an increase over the corresponding_ month for 1909 of 100 per cent on advertisements and 151 per cent on _subscriptions, making a net annual profit for dividends and surplus, based on a circulation of 500,000 copies monthly, of $348,980_. Regarding the periodical-publishing business in general, the same gentleman says in his statement that “magazine publishers receive _gross_ incomes as high as $6,000,000 in a single year. Dividends amounting approximately to $1,000,000 yearly have been made.” Speaking of the publishers of some of the magazines joining in the protest against the proposed legislation, he says that one of them, according to his own statement, realizes a net profit of $1,000,000 annually; of another, the principal owner of two great publications, that his gross income is more than $6,000,000 annually, and that his net profits for the same period exceed $1,000,000; of another, that his magazine yields more than 10 per cent on a capital of $10,000,000; of another, that his net profits are $600,000; of another, that the value of his advertising space alone is $1,500,000 a year; of another, that his advertising receipts are $75,000 per month and his profits are from $600,000 to $800,000 per year; of still another, that his publishing business represents a profit of 100 per cent a year to its stockholders.