The methods employed by the various publishing-houses in keeping and
rendering their accounts with authors vary with each house, but all
publishers are alike to the extent of realizing that this end of the
business must be absolutely above suspicion. An unwarranted rumor, or a
clerical error, would raise a question which might affect the standing
of the house more than any other one thing. For this reason, the
royalty records of all reputable publishing firms are so kept that they
may be easily inspected if any question arises, and no objection would
ever be made to a request from an author to make an examination should
he feel that circumstances justified it.
The publisher recognizes that each author is, in a sense, his partner
in the production of a book, and as such is entitled to intimate
information regarding the progress of their joint enterprise.
Semi-annual statements are rendered, which are often verified by
certified reports from the publisher's printers and binders, covering
the number of copies manufactured and sold during each period. Some
publishers include a report of the number of copies distributed for
review or other advertising purposes; some do not. Some have these
reports checked by public accountants, who compare the statements of
sales with the bills for printing and binding and the inventories for
paper. But all these varying methods are based upon accurate, detailed
records, which are carried forward regularly to the author's account.
Payments upon these semi-annual statements are usually made four months
after they are rendered, making an average date of seven months which
the publisher takes upon his royalty account. On the face of it, this
seems too long a time, but those authors who are familiar with the
customs of the trade realize that the publisher is obliged to sell
to the jobbers and retailers on time, so that in this, as in other
portions of the undertaking, they are simply sharing the financial
necessities.