“It has been suggested that the magazines could collect the additional cost imposed on them by _raising the price_ of their magazines.” He then quotes “Exhibit D” of the publishers in reply: It has been shown (Exhibit A) from the original books of account of the chief magazine properties that the measure providing for a new postal rate of 4 cents a pound on all magazine sheets on which advertising is printed would wipe out the magazine industry--would require more money than the publishers make. Could not the burden be passed on to advertisers or subscribers, or to both? WHY ADVERTISERS WOULD NOT TAKE THE BURDEN. Magazine advertisers buy space at so much a thousand circulation. The magazine is required to state its circulation and show that the rate charged per line is fair. Some advertisers go so far as to insist on contracts which provide that if the circulation during the life of the contract falls below the guaranteed figures they will receive a pro rata rebate from the publisher. In view of the small net profits of the industry--it is shown in Exhibit A that the combined final profits of the five leading standard magazines of America are less than one-tenth of their total advertising income--it is clear that the publisher must be trying always to get as large a rate as possible for the advertising space he sells, and it is absolutely true that he has already got this rate up to the very maximum the traffic will bear. Advertisers would not think of paying more than they are now paying for the same service. Some of them would use circulars under the third-class postal rate, _which the Postmaster General says is unprofitable to his department_. Most advertisers would simply find this market for their wares gone, and the thousands of people--artists, clerks, traveling men--engaged in the business of magazine advertising would lose their means of livelihood. There is no possible hope that the advertiser will pay the bill. WOULD THE SUBSCRIBER PAY THE INCREASED POSTAL RATE? The 4 cents a pound rate on advertising would require an advance of approximately _50 per cent_ in subscription prices if the publisher is to recoup himself by raising the cost of living to the public in its consumption of magazines. _Would the public pay 50 per cent more for the same article?_