Based on the publishers’ statement of 650,000 circulation, the gross income of Everybody’s would be about $1,550,000 annually, divided as follows: 200,000 subscriptions, at $1 (net) $200,000 450,000 news-stand sales, at $1 (net) 450,000 150 pages of advertising per month, at $500 per page 900,000 ---------- Grand total $1,550,000 Since the publishers state that the magazine makes each year for its stockholders only about $100,000, the approximate cost of publication reaches the surprisingly high figure of $1,450,000. Using their own statement showing a circulation of 650,000, it appears that Everybody’s issues 7,800,000 single copies annually. If their total net profits are only $100,000, it is evident that it must cost the publishers approximately 19 cents to place a copy of the magazine in the hands of a reader who can secure it on the news stand for 15 cents. Before your committee reported the bill providing for the increased rate on second-class matter, the publishers of Everybody’s Magazine announced that on and after March 6, 1911, their rates for ordinary advertising would be advanced from $500 to $600 a page. On the extremely conservative estimate that the magazine carries a monthly average of 150 advertising pages, this advance will produce an additional income of $150,000 per annum. As the proposed increase of postage during a like period will amount to approximately $43,500, it is evident that out of the increase of revenue alone the magazine will be able to pay the additional postage and still retain a considerable surplus for its stockholders. Yours, very truly, FRANK H. HITCHCOCK, _Postmaster General_