Postmaster General Hitchcock proceeds in the first and second paragraphs on page four to cite a recent increase of advertising rates of a certain magazine, and to consider, and use in figuring, as net profits the _total amount of advertising it carries for the year_. (It is of incidental interest, in showing the _partisan attitude_ of the Postmaster General, that in calculating the total amount of advertising received by this publication, he takes the number of lines actually printed in this weekly’s _richest advertising season_, ignoring the fact that in the summer this periodical is sometimes published at a loss, and makes an estimate of its advertising patronage for the whole year on the basis of what it received in the months when advertising is at its height). But the gigantic error of the Postmaster General is in calculating the additional income from advertising for this weekly resulting from its increased advertising rate, and assuming that this increased income is all profit. This error arises from the Postmaster General’s _total ignorance_ of the publishing business in general; and in particular, of the fact proved above, that the magazines save only a small fraction of their aggregate advertising income as net profits after paying the expenses of production and administration. Then the Postmaster General finds out how much money the increased rate brought the periodical and observes with an air of finality that this income was more than sufficient to meet the higher postal charges. The facts are, of course, that to get this higher advertising rate, the “great periodical” had to publish enough more copies and additional reading matter in those copies to justify the increased rate; and that to manufacture and supply these additional subscriptions it costs magazines more than twice as much as they get from subscribers. Furthermore, the Postmaster General takes gross advertising income as net profit, apparently thinking that advertising flows into periodical offices without the asking, where, as a matter of fact, it is necessary to spend enormous sums for high-priced men to solicit advertising, for other men to lay out plans and make designs for advertisers, and for a large clerical force to handle the advertising department. The calm way in which the Postmaster General ignores the cost of presswork and paper on which the advertising is printed, exhibits his ignorance of the fact that there is in business an expense side of the ledger as well as an income side.