In the Matter of the Petition by

PRENTICE-HALL, INC.,
113 Sylvan Avenue,
Englewood Cliffs, New Jersey 07632

Proposed Revocation of Second-Class Mail Privileges for
"ANNOTATED TAX FORMS-PRACTICE & PROCEDURE"; "CAPITAL ADJUSTMENTS-
REORGANIZATION-STOCK RIGHTS"; "CONSUMER & COMMERCIAL CREDIT-
INSTALLMENT SALES"; "CONTROL OF BANKING REPORT";
"CORPORATION FORMS"; "FEDERAL TAX CITATOR";
"FEDERAL TAX GUIDE"; "FEDERAL TAXES"; "INHERITANCE &
TRANSFER TAX"; "INSURANCE REPORT"; "OIL & GAS TAXES-
NATURAL RESOURCES"; "PENSION & PROFIT- SHARING";
"PENSION & PROFIT-SHARING FORMS"; "PERSONNEL MANAGEMENT-
COMMUNICATIONS"; "PERSONNEL MANAGEMENT- LABOR RELATIONS";
"PERSONNEL MANAGEMENT POLICIES & PRACTICES"; "REAL ESTATE
REPORT"; "SECURITIES REGULATION REPORT"; "STATE & LOCAL TAXES
REPORT BULLETIN"; "STATE TAX GUIDE"; "SUCCESSFUL ESTATE PLANNING IDEAS
& METHODS"; "TAX COURT REPORTED & MEMORANDUM DECISIONS"; "WAGE-HOUR";
"WILLS-TRUSTS ESTATE PLANNING FORMS" and "WILLS-ESTATES- TRUSTS"

Denial of Application for Second-Class Mail Privileges for

"TAX EXEMPT ORGANIZATIONS"; "PROFESSIONAL CORPORATION GUIDE";
"MANUAL FOR MANAGING THE LAW OFFICE"; "SALES TAX"; and "PUBLIC PERSONNEL
ADMINISTRATION-LABOR MANAGEMENT RELATIONS"

In the Matter of the Petition by
EXECUTIVE REPORTS CORPORATION
113 Sylvan Avenue,
Englewood Cliffs, New Jersey 07632,

Proposed Revocation of Second-Class Mail Privileges for
"PROFESSIONAL MAN'S TAX DESK MANUAL" and "TREASURER'S GUIDE",

Denial of Application for Second-Class Mail Privileges for
"PRESIDENT'S GUIDE" and "REAL ESTATE MAN'S TAX DESK MANUAL",

In the Matter of the Petition by
INSTITUTE FOR BUSINESS PLANNING, INC.,
IBP Plaza, Englewood Cliffs, New Jersey 07632,

Proposed Revocation of Second-Class Mail Privileges for

"ESTATE PLANNING- CHECKLIST FORMS"; "FORMS OF BUSINESS AGREEMENTS
AND RESOLUTIONS"; "REAL ESTATE INVESTMENT PLANNING"; "REAL ESTATE
INVESTMENT PLANNING CHECKLISTS-FORMS"; "TAX PLANNING" and "PAY PLANNING
CHECKLISTS-FORMS"

P.S. Docket No. 4/80; P.S. Docket No. 4/79

Rudolf Sobernheim Administrative Law Judge

APPEARANCES: Richard M. Schmidt, Jr., Esq.
Ian D. Volner, Esq.
Cohn & Marks 1920 L Street, N.W.
Washington, D.C. 20036

for Petitioners Arpad de Kovacsy, Esq.
Law Department U. S. Postal Service
Washington, D.C. 20260 for Respondent

INITIAL DECISION

This is a proceeding initiated by petitioners pursuant to 39 CFR Part 954 to contest the rulings of respondent, represented by the Manager of the Mail Classification Division, Finance Department, U. S. Postal Service (later redesignated "Director, Office of Mail Classification, Rates and Classification Department" but hereinafter referred to as the "Manager") which on 3 February 1975 revoked, subject to the outcome of this proceeding, the second-class mail privileges of petitioners Prentice-Hall, Inc. (hereinafter sometimes referred to as "Prentice-Hall" or "P-H") and Institute for Business Planning, Inc. (hereinafter sometimes referred to as "IBP") and denied the applications of petitioner Prentice-Hall for second-class mail privileges in respect of seven other publications. By letter of 12 August 1975 the Manager confirmed the foregoing rulings.

In fact, as appeared at the hearing held herein of the 40 publications involved, thirty were published by P-H, four by Executive Reports Corporation (hereinafter referred to as "ERC") and six by IBP. In consequence, the captions of the two proceedings (P.S. Docket Nos. 4/79 and 4/80) were amended by consent of the parties to reflect the actual publishers of the publications. The caption used in this Initial Decision reflects these changes.

The reasons for his rulings were stated by the Manager in letters dated 3 February 1975. In his principal letter, addressed to P-H (proposing to annual its second-class mail privileges in respect of 31 publications; of which two were in fact published by ERC and four by IBP), the Manager stated these reasons as follows:

"A periodical, as ordinarily understood, is a publication appearing at stated intervals, each number of which contains a variety of original articles by different authors devoted either to general literature of some special branch of learning or to a special class of subjects. Ordinarily, each number is incomplete in itself, and indicates a relation with prior or subsequent numbers of the same series. It implies a continuity of literary character, a connection between the articles appearing in them, whether they be successive chapters of the same story or novel or essays upon subjects pertaining to general literature.

The above definition of a periodical is based on a Supreme Court ruling in the case of Houghton v. Payne 194 U.S. 88 (1904) .

It appears that the main body of each publication consists of a basic text. The material submitted consists of pages of significant changes for the basic text, which enable the subscriber to remove corresponding pages to the text and insert replacement pages. It lists materials cancelled or superceded; gives filing instructions; and provides temporary transmittals, supplementary instructions and information which brings up-to-date the basic text. Subscriptions to each of the second-class publications are accepted only from those individuals who have subscribed for the basic text, with which is included the supplementary material on a regularly scheduled basis. The basic text does not qualify as second-class matter nor does the supplementary material. The supplement would not be of much value without the basic text. They are interrelated and appear to be one service. In fact, the supplementary material as prepared may serve as a directory or reference book. Accordingly, issues of the publications are not periodicals within the meaning of the law. Please see in the matter of American Bibliographical Center, PS Docket No. 2/106 (1973); and in the matter of FTDA , PS Docket No. 1/167 (1974)."

Similarly, in denying applications for the grant of second-class mail privileges, the Manager, after citing in nearly identical language the definition of a periodical publication in Houghton v. Payne , 194 U.S. 88 (1904), rejected the applications in the following words, quoted from his ruling regarding petitioner Prentice-Hall's "Public Personnel Administration-Labor Management Relations":

"We have reviewed copies of the July 24, 1973 issue; and the May 28, and June 11, 1974 issues of 'Public Personnel Administration - Labor Management Relations.'

It appears that the main body of the publication consists of a basic text. The material submitted consists of pages of significant changes for the basic text, which enable the subscriber to remove corresponding pages to the text and insert replacement pages. It lists materials cancelled or superseded; gives filing instructions; and provides temporary transmittals, supplementary instructions and information which bring up-to-date the basic text. Subscriptions to the material submitted for second-class mail privileges are accepted only from those individuals who have subscribed for the basic text with which is included the supplementary "Public Personnel Administration-Labor Management Relations" on a biweekly basis. The basic text could not qualify for second-class mail privileges nor can the supplementary material. The current biweekly supplement would not be of much value without the basic text. They are interrelated and appear to be one service. In fact, "Public Personnel Administration - Labor Management Relations," as the July 24, 1973 issue; and the May 28, and June 11, 1974 issues are prepared, may serve as a directory or reference book. Accordingly, issues of "Public Personnel Administration - Labor Management Relations" are not periodicals within the meaning of the law. Please see in the matter of American Bibliographical Center , PS Docket No. 2/106 (1973); and in the matter of FTDA , PS Docket No. 1/167 (1974)."

Finally, after citing again the Houghton v. Payne definition of a periodical publication, the Manager proposed to revoke the second-class mail privileges heretofore enjoyed by IBP in respect of the publications "Tax Planning" and "Pay Planning Checklists - Forms" in the following language quoted from his letter as to the latter publication:

"Based on a review of copies of 'Pay Planning Checklists - Forms' dated December 1974, January, March, April and May 1975, 'Pay Planning Checklists-Forms' is divided into sections titled 'Profit - Sharing Plans,' 'Index - Cross Reference Table,' 'Deferred Compensation,' 'Pension Plans,' 'Self-Employed Retirement Plans,' 'Stock Purchase Plans,' 'Thrift & Savings Plans,' and 'Insurance and Family Benefits.'

The materials dated December 1974, January, March, April and May 1975, are basically revisions for 'Pay Planning Checklists - Forms,' i.e., they contain a description of revisions as well as page disposition instructions for the affected sections of the text.

It appears, therefore, that the issues are of little value without the basic text (all pertinent previous issues).

Although issues of 'Pay Planning Checklists - Forms' are published monthly, regular issuance does not change its basic character as a book. Also, regular issuance does not change the character of the issues as pages of a book. Second-class mail privileges are inappropriate for use in transmitting book pages to replace those which have become obsolete or to expand on those originally incorporated in the book.

'Pay Planning Checklists - Forms' is not a periodical publication within the meaning of section 132.211, Postal Service Manual, and, therefore, does not qualify for mailing at the second-class rates of postage."

Subsequent to receipt of these letters by petitioners the parties were engaged in negotiations which lasted into mid-summer 1975 (see Pet'rs' ltrs to Manager, dtd 20 April and 11 September 1975). On 1 May 1975 petitioners submitted their views as to why the Manager should reconsider his rulings and under date of 12 August 1975 the Manager reaffirmed his rulings of 3 February 1975 in the following language:

"We have carefully reviewed the materials which you submitted to demonstrate your contentions that the Postal Service should reverse its position regarding the entitlement of these publications to second-class mail privileges, and if it fails to follow that course, should amend its procedures for dealing with the entitlement of these and other similarly situated publications. I regret that my response must be negative to each of these positions.

A review of a minimum of two issues of each publication in question has been made. We conclude that each of the publications is similar and is designed to update a basic text on a periodic basis. Corrections and additions to reference books are not periodical publications entitled to second-class mail privileges, even though issued on a periodic basis.

While the basic text of any of the publications in question has not been introduced for review, a study of the issues of each publication makes it obvious that the basic text would have little value unless it were read and considered in conjunction with the current issues and that the current issues are not finally useable until incorporated with the basic text. The pages of part II of each issue examined are not paginated sequentially but rather bear a number indicating a numerical sequence in which each page is to be placed in the basic test. The textual material transmitted often is unintelligible until placed in proper sequence and read in conjunction with material embodied in the text. So that subscribers may have current information and changes to the basic text as they occur, this looseleaf supplementary service is sold on a subscription basis.

Consequently, I believe the format, contents of the issues and the amount of the annual subscription price indicate that the publications are basically reference services which correct and bring up-to-date basic texts. I have also considered the arguments you forwarded that the Postal Service should abandon its present proceedings, and adopt rulemaking procedures to settle the question of entitlement of your publication and the other similarly situated publications. I believe the law is clear and rule-making is neither warranted nor desirable in this instance."

Simultaneously with their petitions on appeal, petitioners filed motions to set aside the Manager's rulings on the ground that the terms of his letters of 3 February and 12 August 1975 were contradictory, internally inconsistent and incomplete and failed to give petitioners adequate notice of the grounds of the proposed agency action. Petitioners also asked for separate hearings on each proposed denial or revocation. The motions made by P-H (P.S. Docket No. 4/80) were denied on 17 October 1975. In his opinion the presiding administrative law judge held that the 3 February and 12 August 1975 rulings were not in conflict and that both held in substance that certain characteristics of the P-H publications deprived them of the status of periodical publications under postal laws and regulations. He also held that the consolidation of the appeals as to each denial or revocation into a single proceeding did not violate P-H's right to due process of law. No separate ruling was made on the IBP motions (P.S. Docket No. 4/79) and the ruling made in P.S. Docket No. 4/80 was treated as disposing of the IBP motions also.

The parties engaged thereafter in discovery proceedings and each filed with the Docket Clerk of the Office of Administrative Law Judges of the U. S. Postal Service the responses given to the opposing parties' interrogatories. Although cautioned to do so if they wanted these to be considered (T 6) neither party moved to introduce in evidence any part thereof. Hence, these documents are not deemed part of the record and have not been considered in the preparation of this decision. See FRCP 33; 39 CFR 954.6.

At the hearing, the parties introduced as joint exhibits (JX) 1 to 91 the issues of the publications which had been examined by the Manager and his staff in arriving at his rulings. These date to 1974 with the exception of a few 1973 and 1975 issues. In addition, petitioners introduced as their own exhibits (PX) 1 to 40 two 1975 copies of each of the forty publications. The loose-leaf volumes published by petitioners in connection with each publication, called "basic" volumes by respondent, are not formally part of the record. Petitioners made a number of these volumes available to the undersigned administrative law judge for inspection to assist in the preparation of his initial decision and these volumes are listed in Appendix I. They are to be returned to the petitioners who furnished them and presumably will be made available to any reviewing authority or court on request.

In addition, petitioners at the hearing referred to the second-class mail privilege proceeding against the Public Law Education Institute involving the Selective Service Law Reporter (now called the Military Law Reporter), P.S. Docket No. 1/174 (1972). Petitioners submitted a portion of the record in that proceeding as Exhibit No. 49 and subsequent to the hearing submitted copies of the publication itself. These were Numbers 11 (November 1972) and 12 (December 1972) of volume 5 thereof. They were received on 27 April 1976 and are admitted in evidence as Petitioners' Exhibits 50 and 51. In addition, the presiding administrative law judge has examined the file of the administrative proceeding referred to.

At the hearing the parties also introduced into evidence other documents which will be referred to as needed and presented the testimony of the cognizant mail classification specialist, of executives of petitioners and of a librarian and professor of law. They have also filed briefs and reply briefs discussing facts and law in great detail.

FINDINGS OF FACT

1. P-H and its subsidiaries ERC and IBP are engaged, among other pursuits, in publishing the forty (40) publications the second-class mailing privileges for which respondent seeks to revoke or deny. All three corporations have their offices in Englewood Cliffs, N.J.

2. Petitioners were granted second-class mail privileges for 33 of their publications as second-class matter at various times from 1946 to 1970. The denied applications for second-class mail privileges for the remaining seven publications were filed in 1972 and in 1973.

3. The publications of petitioners are Report Bulletins published as often as weekly ( e . g . JX 14) or as infrequently as quarterly (e.g. JX 19) and, regardless of variant appellations, referred to hereinafter as "Report Bulletin(s)" or "RB('s)".

4. The RB's consist of a "newsletter" (hereinafter referred to as such) and a number of pages prepared for insertion, and to be inserted according to filing instructions, into loose-leaf volumes which petitioners furnish to the subscribers to the Report Bulletins (hereinafter referred to as "insert pages"). Any exceptions are noted in subsequent findings.

5. The loose-leaf volumes are published annually and mailed with third- or fourth-class postage. With a single exception noted below, subscribers to petitioners' publications are required to subscribe to a package which includes both the RB's and the loose-leaf volume or volumes.

6. The use of the publications and the loose-leaf volumes is described in P-H's loose-leaf services catalog (RX 2) as follows:

"How you use a LOOSE-LEAF SERVICE

One of the special virtues of the Prentice-Hall Loose-Leaf idea is its A-B-C simplicity.

You are provided with a basic compilation, usually comprising laws, regulations, court cases, and editorial explanation.

As changes in the subject occur, the old pages are pulled out and new pages are inserted.

Thus, any time you refer to the Service, you can get only up-to-date information. Whereas a book goes out-of-date--and on a subject that is rapidly changing it is out-of-date almost as soon as it is printed--a Loose-Leaf Service is always current.

A Loose-Leaf Service is easy to use. It has an Index, just like a bound book. It also usually has Cross Reference Tables, Finding Lists, and other devices to help you find the information you want.

You can rely on a Prentice-Hall Loose-Leaf Service with confidence."

7. The following findings are made in respect of each of the Report Bulletins, the second-class mail status of which is challenged by respondent in these proceedings:

a. Manual for Managing the Law Office (JX 1, 2; PX 34)

(1) The monthly RB's are divided into a standard four-page newsletter and insert pages for the loose-leaf volume as required to cover new or corrected material.

(2) The newsletter contains a variety of news items, such as a summary of an article in the insert pages, recent decisions with a reference to the paragraphs of the loose-leaf volume where the same topic is discussed, and informational items without reference to the loose-leaf volume.

(3) The filing instructions which are part of the newsletter show that the insert pages contain "editorial revisions" of material in the loose-leaf volume, a new article and revisions of the table of contents and indices.

(4) The loose-leaf volume, which bears the sub-title "Systems and Procedures," is divided into fifteen (15) sections from "Law Office Technology" to "How to Write Effective Letters" via "Building Better Client Relations", "The Legal Secretary" and other such topics, providing comprehensive coverage for the practitioner's problems in managing his or his firm's office. The material is partly prepared by the P-H editorial staff and partly by outsiders in the form of articles. Filing space for the newsletter is also provided.

b. President's Guide (JX 3, 4, 5; PX 36)

(1) The monthly Report Bulletins, called "President's Action Report", are divided into two parts: a white-paper 8-page newsletter, including filing instructions (JX 4) to which at times a second section of four pages on green paper is added for a special staff report or outside article (JX 3; PX 36-A, 36-B), and the insert pages. In all five issues of record the insert pages are substitutes for existing pages. The insert pages either change existing material or supersede the prior text.

(2) The RB's for the President's Guide are published in semi-annual series, starting in January and July (see JX 5; PX 36-B), and carry the notation that upon receipt and filing of RB No. 1 of the new series the prior reports should be discarded.

(3) The loose-leaf volume of the President's Guide appears to consist of a single volume divided into a number of "How to" sections, followed by filing space for the President's Action Reports. The impression conveyed by the filing instructions in the Report Bulletins of record is that of a comprehensive text, divided into numerous sections covering the field broadly. The loose-leaf volume is, however, constantly revised so that there is no need to bring out new editions, as in the case of bound books, or an entirely new book in order to remain current.

c. Professional Corporation Guide (JX 6, 7, 8; PX 33)

(1) The monthly Report Bulletins are divided into a newsletter, running from slightly over two (PX 33A) to slightly over four pages in text (JX 6), and the insert pages for the loose-leaf volume. The RB's do not, however, include the filing instructions which are a separate section of the loose-leaf volume together with a "Cross Reference Table" ( e . g . JX 6, p. 2001).

(2) The insert pages include both additional pages for added material and substitute pages for editorial revisions, printing corrections, citations to new statutory etc., amendments and other revisions updating the existing text.

(3) The single loose-leaf volume includes both descriptive text and reproductions of federal and state statutes and regulations, rulings and cases. The RB issues of record show that it starts with a "new Ideas" section, followed by a section on the considerations which may lead to, or may militate against, the formation of a professional corporation, and by numerous "How to" sections ( e . g . How to Operate; How to Set Up Employee Benefit Plans). These sections are followed by business and tax forms. Finally, there follow two sections, one for the statutory material and related rulings by states in alphabetical order, the other for federal cases and rulings. The loose-leaf volume thus appears to give full coverage in text and reference material to the topic which it serves.

d. Public Personnel Administration - Labor - Management Relations (JX 9, 10, 11; PX 38)

(1) The bi-weekly RB's are divided into the newsletter, generally eight pages long but occasionally longer (JX 9; 9 pp. with blank 10th p.), and insert pages. The latter contain articles for the "New Ideas" section of the loose-leaf volume as well as editorial revisions of matter previously published (JX 9). They also contain reprinted pages with amendments to statutes, added annotations, and repaging of entire state subsections (see JX 9, p. 2001; JX 10, p. 2001). The newsletter contains an additional feature: a labor relations calendar (PX 38-A) or calendar of future events (JX 9).

(2) There are two loose-leaf volumes. Volume 1 contains the cross-reference table which in each bi-weekly RB includes the filing instructions on page 2001. Volume 1 substantively starts with a "New Ideas" section, followed by sections on "Collective Bargaining Problems and Answers", "Public Employment Relations Laws and Regulations" and presumably others which by happenstance were not updated in the bulletins put in evidence by the parties. There follows an extensive section on the laws, regulations and rulings of the states. Until at least June 1974 this section was part of volume 1 (JX 11). At some time thereafter the "Specific States" section was transferred to loose-leaf volume 2 (PX 38-A).

e. Real Estate Man's Tax Desk Manual (JX 12, 13; PX 37)

(1) The monthly Report Bulletins (called in this instance "Action Report" bulletins) of this ERC publication consist of a four-page newsletter which includes the filing instructions for the insert pages, which form the second part of the RB's. The news items covered in the newsletter contain summaries of recent court decisions and IRS rulings. The newsletter is not prepared for insertion in the loose-leaf volume and the filing instructions do not provide for its retention (for a like arrangement see infra , Finding 7z).

(2) The insert pages include pages with fragments of articles which have been revised ( e . g . JX 12, 13; PX 37-B) or new articles as substitutes for existing text. In one instance, the same text is revised in consecutive issues (JX 12, 13). All texts of record are ERC staff work. The insert pages of this publication also illustrate a point not previously emphasized, to wit: that many of these pages begin or end or both in the middle of a text section or even sentence (JX 13, pp. 205, 723; JX 12, pp. 519, 520, 629, 705; PX 37-A, p. 427; PX 37-B, pp. 636, 734, 823, 842). Moreover, where an article is revised or shortened (see PX 37-A "Contents" 1st item) it is impossible here as in the case of the other Report Bulletins to know the nature of the revision without careful examination of the eliminated page or pages.

(3) The loose-leaf volume is divided into ten (10) sections, followed by an index. The sections are of the "How to" variety, as for instance "How the Real Estate Man Can Build Wealth Through 'Better Than Ever' Keogh Plans", "How the Real Estate Man Can Turn his Home and Office into Big Tax Savers" and similar tax-oriented devices.

f. Sales Taxes (JX 14, 15, 16; PX 35)

(1) The weekly RB's consist (i) of a 6- to 10-page newsletter, also referred to as "State and Local Taxes Report Bulletin", preceded by a separate sheet, marked " Contents of your Prentice-Hall Sales Taxes" which provides the filing instructions for which filing space is provided in the loose-leaf volume and (ii) the insert pages for the loose-leaf volume, mostly substitute, occasionally additional pages (JX 14; PX 35-A). The "Contents" sheet does not state the basis for the substitution, as in other services, and merely shows the numbers of the pages to be taken out of, and put back into the loose-leaf volume.

(2) The loose-leaf volume contains sections for Legislative Bulletins and the All States Unit. These are followed by separate sections for each State and the District of Columbia. The Legislative Bulletins are lists of statutes, ordinances and tax dates with a thumbnail summary of the content of each item. The legislative Bulletins are to be discarded from time to time (see JX 14). The All States Unit on multistate taxation (PX 37-A) contains a running text of editorial explanation, enacted and proposed legislation, applicable regulations, proposed model acts and new matter. Each state section is similarly organized for comprehensive coverage. While it seems possible to subscribe to specific state sections only each subscriber nevertheless receives both a two-part Report Bulletin and a loose-leaf volume as do subscribers to other publications of petitioners.

g. Tax Exempt Organizations (JX 17, 18; PX 32)

(1) The monthly RB's are divided into a two or two and one-half page newsletter and the insert pages, including filing instructions. The newsletters have continuing pagination and the news items therein are keyed to related material in the loose-leaf volumes, although not necessarily to material in the particular RB (see JX 18; PX 32-A). The insert pages carry typographical and editorial revisions, agency corrections of prior rulings, material updating statutes and regulations as well as new cases and rulings and revisions of indices. Insert pages may begin or end in the middle of a text item or sentence (JX 17, RB 12) and the nature of the revision cannot be determined from the page itself.

(2) There are two loose-leaf volumes. Volume 1 carries sections for "New Ideas", "analysis", "Laws, Regulations, Rulings", "Charitable Contributions", as well as filing space for the newsletters and the cross-reference tables and filing instructions. Volume 2 contains a section on "Private Foundation Excises" and is followed by rulings and cases, with appropriate finding lists, tables and index expanding throughout the subscription year as new material is added.

h. Annotated Tax Forms-Practice and Procedure (JX 19, 20; PX 1)

(1) The quarterly RB's are divided into the usual newsletter and insert pages. The newsletter comprises only two or three pages of which one page is taken up mostly, if not entirely (PX 1-A), by the filing instructions. It contains only two or three brief items generally with a cross-reference to loose-leaf volume coverage of the subject-matter. The insert pages are mostly revisions of comments and tax forms or new forms which the IRS issues from time to time and comment thereon. The insert pages also include, as in other instances disclosed by the exhibits, pages which start or end in the middle of a text or sentence (JX 19; PX 1-B).

(2) There are two loose-leaf volumes the contents of which are disclosed at least in substantial part by "Table of Contents" pages (JX 19 for vol. 1; JX 20 for vol. 2). Volume 1 starts with a section on timely filing, followed by sections on tax returns, accounting methods, personal holding companies and related topics. Volume 2 continues with sections on partnerships, subchapter S corporations, conference procedure and tax court practice, and power of attorney, signature and other miscellaneous topics. Each section has a full descriptive text, apparently prepared by the publication's editorial staff and reproduces forms where appropriate. In addition, volume 2 contains indices and finding lists and volume 1 filing space for the newsletters.

i. Capital Adjustments-Reorganizations-Stock Rights (JX 21, 22; PX 2)

(1) The weekly RB's contain a newsletter and insert pages. The newsletter of two to three pages does not, however, contain any articles but consists solely of a list of corporations under the heading "Capital Changes in This Report" and the filing instructions.

(2) The insert pages contain the new material for the current (JX 21: 1974) capital adjustment entries and substitute material regarding corporate capital changes which had previously been entered into the master list (JX 21: 1970-1973). Entries for 1969 and earlier years are found in a bound volume. Each entry lists the name of the corporation and thereunder one or more dates and a brief statement of the corporate event which occurred on that date. Some entries contain text such as a summary of counsel's opinion of taxability of a transaction which affects the corporate capital structure. The great majority of entries, however, are in a brief listing format. Master list entries in the insert pages are of the same character but involve only a few companies.

(3) The two loose-leaf volumes divide the list of corporations, volume 1 goes from A to M, volume 2 from N to Z. Each volume has both a current and a master list. Each volume has an index and volume 2 has filing space for the latest newsletters. The filing instructions direct that the prior newsletter be discarded and only the latest kept.

j. Consumer and Commercial Credit-Installment Sales (JX 23, 24, PX 3)

(1) Bi-weekly RB's divide into (i) a newsletter of from two to six pages in length, including references to the loose-leaf volume at the end of news items, filing instructions and an occasional advertisement for other P-H publications, and (ii) insert pages for the loose-leaf volume. The latter generally contain changes in, or amendments to, existing federal and state laws, regulations and rulings as well as new legislation or regulations, proposed or adopted (see e . g . PX 3-B: suppl'al notice of proposed rule-making under Consumer Cred. Prot'n Act, superseding earlier proposal; summary thereof sole "newsletter" item excl. of filing instr's).

(2) The filing instructions provide little indication of content, noting, except for new material, only that a particular paragraph of the text is being amended or added.

(3) The loose-leaf volume is divided into sections covering installment loans, credit insurance, interest and usury, and federal control of installment sales as well as current matter (summaries of state and federal decisions, see e . g . JX 23) and state law sections. The volume thus gives an encyclopedic overview of the laws in the field which it is intended to cover.

k. Control of Banking (JX 25, 26; PX 4)

(1) The RB's are published every third week and are divided into two parts: currently (see PX 4-A, -B) a four-page newsletter which includes filing instructions. The news items may contain references to appropriate items in the loose-leaf volume. The insert pages contain editorial revisions of the existing loose-leaf volume text or revisions which reflect changes in regulations or new legislation or other administrative action (PX 4-A: latest discount rates added). New pages for additional current matter (JX 25) are also included.

(2) The loose-leaf volume contains sections on national bank laws, the Comptroller of the Currency and his regulations, the Federal Reserve Act, deposit insurance, fiscal regulations and current matters and provides space for filing the report bulletins (JX 25, 26, PX 4-A, -B). The loose-leaf volume as judged from the insert pages, provides coverage of its field as deemed complete by the editors who publish it for Prentice-Hall.

l. Corporation Forms (JX 27, 28; PX 5)

(1) The monthly RB's contained a 10-page newsletter in 1974 (JX 27, 28). In 1975, however, this feature was reduced to four pages (PX 5-A, 5-B). References to the loose-leaf volume or the insert pages which form the second part of the RB's appear in the newsletter which also includes filing instructions.

(2) With one exception (PX 5-B) the insert pages relate to the loose-leaf volume section "New Forms and Ideas" and add new items thereto, each as a separate paragraph. The exception is an additional clause for stock repurchase agreements with employees. Other insert pages update indices and tables of contents.

(3) The loose-leaf volume in substance starts with "New Forms and Ideas". It contains besides, however, as the references in the newsletter show, a series of sections covering systematically the administration of corporations and their relations with their officers and stockholders: principal place of business corporate name, powers and compensation of officers, stock options, mergers, dissolution, shareholder rights and many others. Again the loose-leaf volume is a comprehensive compendium of the various aspects of corporate existence and the legal forms which pertain thereto.

m. Estate Planning Checklists-Forms-Volume 2 (JX 29, 30; PX 6)

(1) The monthly reports of this IBP publication also are divided into newsletter and insert pages. The newsletter in 1974 (JX 29, 30) contained one page of news items with references to related material in the loose-leaf volume and filing instructions. The single 1975 issue in the record (PX 6) has a two-line news item and the filing instructions on a single page.

(2) The insert pages involve editorial revisions, and new clauses or rulings which supersede prior text material. Pages beginning and ending in broken sentences occur.

(3) Volume 2 (the loose-leaf volume) appears to cover at least wills, trusts, administrative provisions, business contracts with death provisions and insurance. The volume also is indexed and cross-referenced between loose-leaf volume text and the monthly newsletters. A running text, prepared by the editorial staff, is followed by forms where appropriate with further editorial comment in imitation cursive script to draw attention or to separate forms from comment.

n. Federal Tax Citator (JX 31, 32; PX 7)

(1) This publication differs greatly in content from the other publications. The newsletter in the monthly RB's lists only the volumes of court decision which the particular RB covers and the filing instructions and is entirely lacking in new items or textual matter which characterizes the newsletters in the Report Bulletins of nearly all other publications of petitioners in issue here. Similarly, the insert pages are nothing but (i) lists of the names of cases and their citations in heavy print, followed by names and citations of cases in light print, accompanied by letter symbols which explain the nature of reference to the earlier case in the later ones; (ii) lists of Treasury decisions and rulings in heavy print and thereunder the decisions which they supersede or by which they are superseded and decisions in which the rulings are mentioned. This part of the RB is preceded by a brief explanation of obsolete rulings. The insert pages of the RB do not contain articles except for brief explanations of the use of the Citator and of the symbols and abbreviations employed, they contain only lists of cases and administrative rulings.

(2) The content of the two loose-leaf volumes corresponds to those of the insert pages. The two volumes are likewise bereft of articles.

o. Federal Tax Guide (JX 33, 34; PX 8)

(1) The weekly RB's comprise a nine- to 13-page newsletter (10 pages in the 1975 examples, PX 8-A, -B) which are consecutively numbered. Filing instructions are found in the insert pages which form the second part of the RB's. Some newsletter items are keyed to the loose-leaf volumes. Brief summaries of decisions and rulings fill the last few pages of the newsletter. In addition, the newsletter contains announcements of forthcoming meetings.

(2) At times, as shown by petitioners' exhibit PX 8 A, the newsletter in additional sections reproduces current documents which the editors deem it important to transmit to their readers. In the instance provided by petitioners, these are two separate pamphlets: A report prepared by the staff of the Joint Committee on Internal Revenue Taxation and the Tax Reform Act of 1975, as reported by the House Ways and Means Committee, as well as federal income tax returns (Forms 1120, 1041, 1065, 3468).

(3) The insert pages provide the usual typographical and editorial revisions to the text and new or expanded texts which new regulations or rulings, for example, may render necessary.

(4) There are three loose-leaf volumes: the annual explanation volume and two volumes on income tax regulations. The second volume of the latter provides filing space for the newsletters. Together the three volumes provide a tax guide, complete in itself, and a comprehensive annotation of the income tax regulations.

p. Federal Taxes (JX 36, 37; PX 9)

(1) The weekly Federal Taxes RB's follow the usual scheme of providing a newsletter and insert pages to be placed into the loose-leaf volumes. The newsletters run to about 12 or 14 pages, with references to appropriate sections of the loose-leaf volumes at least in some cases (see JX 37). The newsletters are consecutively numbered through the year, beginning with page 60,001. This system of page numbering is fitting in with the overall numbering system of the loose-leaf volumes and indicates that they are filed at or near the end in loose-leaf volume 6.

(2) The Federal Taxes newsletters are the only ones which can be ordered by the subscribers without the insert pages and loose-leaf volumes. The newsletters thus separately ordered do not have holes for insertion into the loose-leaf volumes and are free from cross references thereto. They carry articles prepared by different authors, i . e . different members of Prentice-Hall's editorial staff, and, on occasion, advertisements for other P-H publications (see JX 35; PX 9-B; but cf . PX 9-A).

(3) Some 15,000 subscribers order the loose-leaf volumes and RB's. About 7,000 subscribers are satisfied to receive the newsletters only (T 126). Of course, there may be overlapping subscriptions.

(4) The insert pages provide typographical and other corrections (JX 35) and editorial revisions, rewritten text and additional pages which, when inserted into the loose-leaf volumes, keep them current. The loose-leaf volumes are a set of six volumes which constitute one of the most complete and comprehensive annotations of the Internal Revenue Code in the United States.

q. Forms of Business Agreements and Resolutions (JX 37, 38; PX 10)

(1) The monthly Report Bulletins of this IBP publication consist of a newsletter which comprises of from one-half (PX 10-A, -B) to one page (JX 38) of news items and the filing instructions, together filling no more than both sides of a single sheet. They provide also insert pages with editorial revisions, rewritten forms and, in one instance (PX 10-B), a new topic.

(2) The two loose-leaf volumes became three in October 1975 when a new volume ("Commercial Paper and Letters of Credit under UCC") was added. The loose-leaf volumes constitute a compendium of drafting guidelines, checklists and sample forms and clauses, accompanied by italicized comment of the editors on clauses of the sample instrument (see JX 37). The contents of these volumes are kept up-to-date by the elimination of superseded and the insertion of new pages.

r. Inheritance and Transfer Taxes (JX 39, 40; PX 11)

(1) The bi-weekly RB's comprise 5 to 8-page newsletters, including filing instructions, and insert pages which editorially revise, typographically correct, or rewrite for recent statutory or other legal changes the text of the loose-leaf volume. The insert pages also incorporate current matter from the newsletter in the text and add the text of recent rulings and court decisions (see JX 39, 40, PX 11-A). Tables, indices and finding lists are also kept up-to-date through the insert pages.

(2) The loose-leaf volume consists of three major parts: General Material, Federal Material and State Material, providing a complete overview of the field.

s. Insurance (JX 41, 42; PX 12)

(1) The monthly Report Bulletins provide a 10-page newsletter (sometimes longer: PX 12-A) which includes filing instructions. When a new series of RB's starts, as on 14 June 1974 (JX 42), subscribers are so advised and instructed to remove and discard the newsletters heretofore filed in the loose-leaf volume or volumes ( id ., Newsl., p. 10). They also provide insert pages which constantly update and refine the text of the loose-leaf volume and the tables and indices pertaining thereto.

(2) The loose-leaf volume contains a mixture of topics: blue ribbon plans, sales ideas, plans and trusts for employer and the self-employed, a discussion of social security benefits and variable life annuities, and an overview of taxation affecting life insurance and its underwriters. In sum, the loose-leaf volume covers all major aspects of life and retirement insurance and related topics for those who desire to utilize these devices in their private or business lives.

t. Oil & Gas/Natural Resources Taxes (JX 43, 44; PX 13)

(1) The monthly RB's furnish both a newsletter of varied length from 4 to 10 pages, not including filing instructions, and insert pages which provide revised or corrected material, such as typographical or editorial revisions of the existing articles, largely in the form of articles by outside authors, including such detail as a change in the author's address (PX 13-B), and new chapters ( e . g . new ch. 28 on the Canadian foreign investment review act). Sometimes the insert pages only update finding lists of decisions, regulations and rulings (JX 44). On occasion, the newsletter has a second section in which a recent statute may be published as a separate pamphlet for convenient use by the subscriber.

(2)(i) As part of the Oil & Gas service petitioner Prentice-Hall furnishes to its subscribers two loose-leaf volumes (App. I, Fed. Taxes etc., p. 211). One is "Income Taxation of Natural Resources", a text book by Breeding, Burke and Burton, accountants and partners or former partners in the firm of Peat, Marvick & Mitchell. This is a loose-leaf volume the current edition of which was issued to subscribers in September 1975. The other is also a loose-leaf volume, called "Federal Taxes-Oil & Gas/Natural Resources", divided into several sections: "Ownership and Operation", "Foreign Operations", "Organizational Problems" and "General and Special Problems", i . e . subjects which cut across the ordinary divisional lines. The insert pages update, correct or enlarge the contents of the second volume which also contains an index and filing space for the newsletters. See PX 13-B; JX 43.

(ii) The content of the second loose-leaf volume consists of articles dealing with a variety of problems within each topic and are all prepared by outside authors. The articles are subject to revision and updating as shown by the Bloomenthal article on the tax treatment of worthless oil and gas property (par. 2004). It apparently was first written in 1956 and rewritten last in the fall of 1975.

u. Pension and Profit Sharing Forms (JX 45, 46; PX 14)

(1) The monthly RB's provide a newsletter containing two and, more recently, only one page of news items (PX 14-A, -B) and an additional page with filing instructions for, as well as, the insert pages which revise existing text and indices to correct typographical errors or to reflect new statutory enactments.

(2) The loose-leaf volume, which the insert pages keep up-to-date, surveys the pension and profit sharing field. It provides articles by outsiders and staff-prepared text on various aspects of retirement and profit-sharing plans under the hearing "New Forms and Ideas" and follows with sections on model plans, profit-sharing clauses, pension clauses and negotiated plans and perhaps others not reflected in the record. Together, these sections provide both general discussion and forms for the various types of plans and clauses thereof which the draftsman will need.

v. Pension and Profit-Sharing (JX 47, 48; PX 15)

(1) The Report Bulletins, formerly bi-weekly (JX 47) and currently weekly (PX 15A), provide newsletters of varying length up to 16 pages (JX 48). The RB's form a series and when it ends, as in May 1974, the first RB of the new series instructs subscribers to remove the old series from the loose-leaf volume and discard it (JX 47). The Report Bulletins also include voluminous insert pages which constantly revise and update existing text or add the latest rulings and decisions thereto (see JX 47; PX 14-B).

(2) The three loose-leaf volumes are divided into a general text (vol. 1), rulings, statistics and current materials, called "Current Official" (vol 2), and pension regulations seemingly involving the non-tax aspects (vol. 3).

(3) The filing instructions (JX 47; PX 14-A, -B) indicate that subscribers may obtain the newsletters as well as volume 1 of the loose-leaf volumes and insert pages therefor without volumes 2 and 3 thereof. In that case the subscriber is advised to disregard filing instructions for volumes 2 and 3. Nothing indicates that the RB's can be ordered without loose-leaf volume 1.

w. Personnel Management-Communications (JX 49, 50; PX 16)

(1) Bi-weekly RB's provide a 6-page newsletter with occasional advertising of other Prentice-Hall publications (JX 49) and insert pages to revise or add to the loose-leaf volume. Newsletter items may refer to an article in the insert pages to be added to a section of the loose-leaf volume.

(2) The loose-leaf volume contains a section on "New Communications Ideas", composed of texts prepared by the editorial staff, and nine sections on management communications with employees on matters of personal concern to them and of concern to management in enhancing business profits, such as work hours, holidays, absences, cost consciousness, plant and office rules, and other topics of similar character.

x. Personnel Management-Labor Relations (JX 51, 52; PX 17)

(1) The weekly RB's contain a newsletter of twelve pages, not including filing instructions, and news items reported therein frequently refer to paragraphs of the loose-leaf volume which contain related basic material. They also include the insert pages which from week to week editorially revise the text, conform existing material to amended statutes or regulations and substitute or add new pages for new statutes, regulations or decisions. In addition, the filing instructions advise when pages should be removed (JX 51).

(2) The loose-leaf volumes provide in volume 1 a comprehensive labor relations text. Volume 2 contains the text of federal laws and orders pertaining to employment, cross-indexed to the explanations furnished in volume 1, the wage-hour law regulations and interpretations, and other federal rules and regulations. Volume 3, subscription to which is optional (JX 52; PX 18-B), covers federal occupational safety and health (OSHA) standards and reprints OSHA's Field Operations Manual.

y. Personnel Management-Policies and Practices (JX 53, 54; PX 18)

(1) The bi-weekly RB's contain an eight-page newsletter, keyed to some extent to the loose-leaf volume and including a calendar of coming events (JX 54, PX 18-B), and insert pages which both revise existing material to keep it up-to-date and add "new ideas" articles, prepared by the editorial staff.

(2) The loose-leaf volume starts with the "new ideas" section in which the editorial staff discusses its own or summarizes others' ideas (see JX 53) on particular topics concerned with personnel management. There follow a section on the American Society for Personnel Administration and thirteen sections "covering the battle front" from hiring, working conditions, wages and salaries to supervision. Forms and indices and filing space for the newsletters complete the volume.

z. Professional Man's Tax Desk Manual (JX 55, 56; PX 19)

(1) The monthly RB's of this ERC publication, here called "Action Reports", include a four-page newsletter, one section of which called "Quick Looks at Other Tax Savers", is printed in imitation of typewriting. The newsletter, like that of ERC's Real Estate Man's Tax Desk Manual (see supra , Finding 7e) is not punched with holes for insertion in the loose-leaf volume and the filing instructions do not provide for its retention. Also included are insert pages which contain revisions of articles to reflect new rulings on statistics and replacement articles for outdated text (JX 56; PX 19-B). In addition, the filing instructions provide for removal of obsolete matter (JX 55).

(2) The loose-leaf volume, as disclosed by the filing instructions, consists of a substantial number of sections which cover those topics which ERC's editorial staff obviously determined that a professional's tax desk manual should contain.

aa. Real Estate Investment Planning - Volume 1 (JX 57, 58; PX 20)

(1) The Report Bulletins are divided into a newsletter in two sections and insert pages. The eight-page section 1 of the newsletter is called "Real Estate Investment Ideas" and has a summary of contents on the left column of the first page, entitled "Real Estate Roundup". The pages are punched with holes for loose-leaf filing but the filing instructions do not refer to the first section. Section 2 of the newsletter summarizes the items covered in the insert pages and provides filing instructions.

(2) The insert pages contain both revisions of existing material and discussions of new subjects as the service expands its coverage or information on particular topics is updated.

(3) Volume 1 of the Real Estate Investment Planning set is the loose-leaf volume in which the insert pages are to be inserted in accordance with the filing instructions in section 2 of the newsletter. It is a textbook on its topic, covering the subject in fifteen sections from "Sales Transactions and Exchanges" to "Financing", "Leading", "Form of Ownership", "Land and Land Development", "Commercial" and "Residential" properties, valuing and appraising real estate, and including sections on recent developments and research aids.

bb. Real Estate Investment Planning - Volume 2 - Checklists-Forms (JX 59, 60; PX 21)

(1) The monthly RB's consist of a one- (PX 21-A) or two-page (JX 59) newsletter and insert pages. The newsletter contains only summaries of news items in the insert pages and filing instructions.

(2) The insert pages contain updating and editorial revisions (including removal of pages: PX 21-B) as well as new forms, clauses or texts.

(3) The loose-leaf volume (vol. 2 of the Real Estate Inv. Planning set) is divided into sections which correspond to the sections in loose-leaf volume 1 of the set, discussed in the preceding finding (7aa(3), supra ). It is thus as comprehensive as IBP's substantive presentation of the topic.

cc. Real Estate (JX 61, 62; PX 22)

(1) The monthly RB's are divided into (i) a newsletter of varying length (JX 62: 12 pages; JX 61: 4 pages) but currently apparently standardized at six pages, including filing instructions (PX 22-A, -B) and (ii) insert pages. News items are keyed at times to the corresponding material in the insert pages and to other news items but not to material in the loose-leaf volume.

(2) The insert pages contain additional and revised materials, both descriptive text and statutes and regulations.

(3) The loose-leaf volume is divided into sections, such as selling, federal regulation, federal aids in financing, new ideas and current matter, all broadly addressed to the problems of selling real estate. The loose-leaf volume also provides space for filing the newsletters.

dd. Securities Regulation (JX 63, 64; PX 23)

(1) The bi-weekly RB's are divided into (i) a newsletter, including filing instructions, of from 6 to 10 pages and (ii) insert pages for the loose-leaf volumes. The news items are keyed at times to other news items or the current insert pages (PX 23-A) and generally provide references to statutory or regulatory provisions contained in the loose-leaf volumes (JX 63, 64)

(2) The insert pages show that the text of the loose-leaf volume is editorially revised or updated, as needed, and that the editors publish statutory and regulatory amendments and add new SEC No-Action Letters and case digests to those previously published.

(3) There are three loose-leaf volumes. Volume 1 covers new ideas, state Blue Sky laws, and the Securities Act; volume 2 accounting rules and opinions and the Securities Exchange Act; and volume 3 the Investment Company and Commodity Exchange Acts. In addition, there are indices, finding lists and space for filing the newsletters.

ee. State and Local Taxes (JX 65, 66; PX 24)

(1) Weekly RB's are composed of a newsletter and insert pages for the loose-leaf volume. The newsletter is six pages in length, formerly (JX 65) but not currently (PX 24-A) including filing instructions. News items are at times keyed to appropriate references in the loose-leaf volume.

(2) The insert pages contain editorial revision of existing text as well as updated charts and lists and new statutes or amendments to existing ones.

(3) The loose-leaf volume is divided into three parts for "Legislative Bulletins", an "All States Unit" and filing space for newsletters. Apparently, it is possible to subscribe to material for selected states only and a notation at the end of the filing instructions advises subscribers which state pages are being mailed to them separately in the particular week. None of the state pages have been made part of the record. It appears from what is shown that the State and Local Taxes loose-leaf volume combines a compendium of state laws with a list of approved laws and brief summaries of bills passed or enacted.

ff. State Tax Guide (JX 67, 68; PX 25)

(1) The weekly RB's consist of a four-page newsletter and insert pages which include filing instructions. The insert pages update existing texts but the particular changes made by the insert pages cannot be determined without looking at the pages to be discarded.

(2) The loose-leaf volume is divided into a section of "Charts and Calendars" (containing such miscellaneous data as sales-use tax rates (PX 25-A), unemployment insurance rates (JX 68) and monthly calendars (PX 25-B)) and a "Specific States Section" with sub-sections for each state and which covers all forms of state taxation, as shown by the filing instructions.

gg. Successful Estate Planning, Ideas and Methods (JX 69, 70; PX 26)

(1) Semi-monthly "Current Bulletins" consist of a four-page newsletter and insert pages, including filing instructions. The news items sometimes are keyed to the corresponding item in the insert pages, sometimes to paragraphs in other P-H publications. The newsletter also contains frequent, if not regular, announcements of Estate Planning Institute activities.

(2) The insert pages contain revisions to update information on social security benefits (JX 70), editorial revisions of articles and revised analyses of particular problems (PX 26-A) as well as sample forms (JX 70) or new texts on points not yet covered (PX 26-B). At times analyses may also be removed (loose-leaf vol. 1, par. 4116).

(3) There are two loose-leaf volumes (see PX 26-A, filing instructions). The two volumes are divided into ten sections which discuss the major aspects of estate planning: "Money-Saving Transactions During Life", "Passing the Estate at Death", "Marital Considerations - Insurance" (all in vol. 1, which also provides filing space for the newsletter, indices and tables), "Special Planning Techniques", "Successful Family Plans", "Estate Analysis", "Tax Administration" and others in volume 2. The text is composed largely of articles by outside authors as well as editorial staff analyses, arranged by section so as to give the reader a fair text book overview of the subject-matter with which each section deals.

hh. Tax Court Reported and Memorandum Decisions (JX 71, 72; PX 27)

(1) The weekly RB for this service consists of a four page newsletter and insert pages. The newsletter consistently provides: the Tax Court hearing schedule, a digest of the week's Tax Court cases reported in full in the insert pages, and a supplementary table of decisions. The insert pages consist of the addition of amending orders and editorial revisions of decisions previously reported and new Tax Court decisions, reported in the official reports, and memorandum decisions not so reported.

(2) The two loose-leaf volumes contain in one volume the reported decisions of the Tax Court as their text is provided by the court from week to week, with consecutive paragraph numbers and head notes added by P-H. Tabs show the volume of the bound Tax Reports (not published by P-H) in which each decision will appear. In the other volume the Tax Court Memorandum decisions are similarly published, as they appear, and the volume covers the current calendar year. Both volumes are free of any text or running commentary which provides a comprehensive overview of any field or topic.

ii. Treasurer's Guide (JX 73, 74; PX 28)

(1) The monthly Report Bulletins of this ERC publication, called "Action Report", are divided into newsletter and insert pages. Newsletters comprise eight pages, including filing instructions, and sometimes carry a second section on distinctive green paper, four pages in length in the samples of record (JX 73, PX 28-B); other second sections are on two pages on white paper (JX 74). Filing space in the loose-leaf volume is allocated for them (see JX 74; PX 28-B).

(2) The insert pages update Government forms or material on Government regulations and rewrite portions of the text to include new ideas or reflect new statutory or regulatory provisions. No additional text pages for new material are shown.

(3) The loose-leaf volume is divided into sections covering the various aspects of the company treasurer's functions. Two sections, as disclosed by the filing instructions are: "Handling Payroll Problems to Boost Profits" and "How to Reduce the Company Tax Bill".

jj. Wage-Hour (JX 75-76; PX 29)

(1) The bi-weekly RB's consist of a four- to six-page newsletter, including filing instructions, and insert pages. The news items contain references both to the accompanying pages and to the loose-leaf volume ( e . g . PX 29-A).

(2) The insert pages show amendments to regulations, confirm administrative rulings incorporate editorial revisions or corrections into the text, correct typographical errors, add new opinions and thus keep the text accurate and up-to-date.

(3) The loose-leaf volume is divided into sections on the Wage-Hour law, its interpretations, exemptions, and wage and overtime requirements and on the Walsh-Healey Public Contract Act and includes tables and indices and filing space for the newsletters.

kk. Wills-Trusts-Estate Planning Forms (JX 77, 78; PX 30)

(1) The monthly RB's show the customary division into a newsletter and insert pages. In 1974 (JX 77, 78) the newsletter was 12 pages long, including filing instructions, in 1975 its length was reduced to 6 pages (PX 30-A, -B). News items refer both to the corresponding item in the insert pages and to appropriate material in the appurtenant loose-leaf volume.

(2) The insert pages revise articles previously published, renumber pages, editorially revise the text and replace outdated material on tax procedures and add new forms as well as articles.

(3) The loose-leaf volume has an introductory section on new forms and ideas followed by numerous sections of which the filing instructions in the record refer to "Estate Planning & Tax Conservation", "Complete Master Wills & Trusts", "Disposition of Property" and "Miscellaneous Clauses & Instruments". In addition, the loose-leaf volume contains filing space for the newsletters and relevant indices, charts and tables, starting with page 91,000 and indicating thereby the extent of the preceding text. It is clear on the record that the forms illustrate, at the least, every major aspect of estate planning.

11. Wills-Estates-Trusts (JX 79, 80; PX 31)

(1) The RB's, published every four weeks, divide into a newsletter and insert pages. The newsletter is currently 6 pages in length (PX 31-A, -B), half the length of its 1974 counterparts (JX 79, 80). News items refer at times to the appropriate paragraphs in the replacement pages or the loose-leaf volume.

(2) A large number of insert pages editorially revises text and keeps the vast number of state statutes up-to-date and adds new rulings and cases to the various sections to which they belong, as shown by the filing instructions which are part of the newsletter.

(3) The loose-leaf volume is a comprehensive text covering in about 15 sections on the execution and effect of wills and applicable statutes, the duties and rights of executors and administrators, descent and distribution, trusts and life insurance trusts, guardians and conservators, banks and trust companies, investments and the compensation of fiduciaries. For each topic the statute law of each state is covered and current court decisions are cited.

mm. Tax Planning (JX 81 to 86; PX 39)

(1) The monthly Report Bulletins of this IBP publication consist of a two-part newsletter on the model of IBP "Real Estate Investment Planning" (Finding 7aa, supra ) and insert pages for the loose-leaf volume. The first section of the newsletter contains eight pages of news items and has holes punched for loose-leaf filing but no provision therefor is made in the filing instructions. Section 2 of the newsletter is a quick summary of the content of the insert pages keyed to the appropriate paragraphs thereof.

(2) The insert pages editorially revise existing text ( e . g . JX 82, 84, 86; PX 39-A, -B) update it to reflect new court decisions or statutes (PX 39-B) or rewrite it in the light of legal developments, such as enactment of ERISA (PX 39-A). Some rewrites add (PX 39-A) and others do not add (JX 81) new pages. A section, called "Recent Rulings, Cases and Ideas", provides current additional material ( e . g . JX 83). A new title page was provided when IBP moved from New York to New Jersey (JX 86).

(3) There are two loose-leaf volumes which together constitute a wide-ranging compendium of tax planning techniques. Sections on tax strategies and opportunities, selection of business forms for maximum tax shelter, capital gains and "How to" attain various corporate ends at minimum tax cost or by means of tax-based techniques (see JX 83, 86, filing instr.) fill volume 1 and similar sections, including one on tax opportunities in personal and family planning (JX 83) fill volume 2. The latter also contains the recent rulings and cases, an ideas section and indices and tables, including filing space for section 2 of the newsletter (e.g. JX 83; PX 39-A).

nn. Pay Planning-Checklists-Forms-Volume 2 (JX 87 to 91; PX 40)

(1) The monthly Report Bulletins, mailed to subscribers of this IBP publication, include a one- or two-page newsletter and insert pages. The former highlights in brief paragraphs the material in the insert pages. The newsletter also includes the filing instructions.

(2) The insert pages contain editorial revisions of existing text (JX 91; PX 40-B), updated model plans (PX 40-B) and clauses (JX 87, 88 (revised to reflect new statutory requirements)); (JX 89, 91 (updating for improvement)). New pages are added or substituted to include in the loose-leaf volume actual corporate plans in their entirety (JX 90: AMA retirement plan and trust; PX 40-A: Marathon Oil Incentive Plan; the Southland Corporation Employees' Savings and Profit Sharing Plan).

(3) The loose-leaf volume is divided into numerous subject-matter sections such as: stock purchase plans, bonus and incentive plans, deferred compensation, profit-sharing plans, pension plans, thrift and savings plans, insurance and family benefits, health and welfare, self-employed retirement plans. In addition, it contains indices and tables and filing space for the newsletter.

8. Petitioners' publications vary greatly in the number of subscribers. The Federal Tax Guide (Finding 7o, supra ) has between 27,000 and 28,000 subscribers, the largest of any publication. Other publications have only a few hundred (T 57). Some subscribers buy more than one publication in a given area of interest (T 59) and larger firms also may purchase several subscriptions for the same publication (T 60, 153).

9.a. The vice-president of the loose-leaf division of petitioner P-H testified on cross-examination that P-H published the insert pages for such use as the subscriber may wish to make thereof (T 77). He and a law librarian and law school professor testified that subscribers may throw the insert pages away or file them ( ibid ., see also T 156) or use them separately for their personal purposes ( e . g . as a teaching aid, T 154). But there is no doubt that, except for some separate pamphlets published as part thereof ( e . g . PX-8), petitioners' publications are always pre-punched for filing (T 78) and that even separate pamphlets may also be so pre-punched (see PX-36).

b. Nevertheless, with the exception of the newsletter of the Federal Taxes Report Bulletins (Finding 7p, supra ), none of petitioners' publications can be ordered without the loose-leaf volumes. It is thus obvious that petitioners would not engage in the labor, material expenditure and managerial effort to combine each of their Report Bulletins with a pertinent loose-leaf volume or volumes in a subscription package if such a package, including the loose-leaf volume or volumes and insert pages to keep it or them up-to-date, did not meet the needs or wants of most of petitioners' subscribers. The fact that some readers or subscribers use not only the newsletter but also the insert pages just to pick up new ideas (T 70, 81) cannot conceal the basic nature of the insert pages as a supplement for the loose-leaf volumes to keep them current.

10. Petitioner P-H's Administrative Director of Tax and Professional Publications attempted to distinguish among the P-H publications between those which were "idea services", consisting of by-lined articles on specific subjects (T 84-86), and services which contain additional material of a different kind ( cf . testimony (T 136) of P-H Assoc. Managing Editor, Bus. and Lab. Pub's, as to Wills-Trusts-Estate Planning Forms, Finding 7kk, supra ). In the light of the analysis of the loose-leaf volumes sold with, and the newsletter and insert page content of, petitioners' publications such distinctions have no relevance to the issues presented by petitioners' appeals.

11.a. Capital adjustments (JX 21, 22, PX 2; Finding 7i, supra ) is not composed of articles. Its newsletter contains only a list of corporations and filing instructions in tabular form and its insert pages contain entries for corporations identified by name, setting forth beneath each name a list of relevant corporate events and the dates thereof. Occasional summaries of tax counsel's opinions do not alter the basis list character of the publication.

b. The Federal Tax Citator (JX 31, 32; PX 7; Finding 7n, supra ) consists of a master list of cases underneath which are listed subsequent cases citing the decision in the master list and accompanied by symbols indicating the nature of the citation of the earlier case in the later ones. The publication contains no articles of any kind.

12.a. The newsletter of the Federal Taxes Report Bulletins (see Finding 7p, supra ), when subscribed to alone, constitutes as a matter of fact a publication containing articles by different authors, disseminating public information or devoted to the special industry of tax counselling or both, the issues of which are interdependent and none of which is complete by itself.

b. The newsletter portions of the publications listed below are so scanty in article content that they would as a matter of fact not be likely to attract independent subscribers even if such subscription were offered by petitioners P-H and IBP:

Annotated Tax Forms - Practice and Procedure (JX 19, 20; PX 1; Finding 7h(1) (two or three brief items)).

Estate Planning Forms (JX 29, 30; PX 6; Finding 7m(1) (two-line "news" item and filing instructions (PX 6)).

Forms of Business Agreements and Resolutions (JX 37, 38; PX 10; Finding 7q(1) (one-half to one-page news item)).

Pension and Profit Sharing Forms (JX 45, 45; PX 14; Finding 7u(1) (one-page news items)).

Real Estate Investment Planning Checklist and Forms (JX 59, 60; PX 21; Finding 7bb(1) (one-page of brief news items limited to content of insert pages (see PX 21-A)).

Pay Planning Checklist and Forms (JX 87 to 91; PX 40; Finding 7nn (one- to two-page newsletter limited to content of insert pages)).

13. The loose-leaf volumes of the Tax Court Reported and Memorandum Decisions (JX 70, 71; PX 27; Finding 7hh(2)) contain articles in the form of tax court decisions published by P-H with a running paragraph number and brief headnote. No loose-leaf volume is ever complete by itself except to the extent that other publishers may from time to time publish the same decisions at a later date in the form of bound volumes, e . g . in the CCH TC Memorandum Decisions or the Official Reports of the Tax Court of the United States.

14. Based on the foregoing detailed findings of fact and on the record as a whole, I find:

a. (1) Except for the Tax Court Decisions (Finding 13, supra ), the loose-leaf volumes sold to subscribers as part of their subscription to each of petitioners' publications are not random collections of articles but books each of which is a comprehensive, complete and independent statement of its topic within the framework selected by petitioners as publishers. Each loose-leaf volume or set thereof is carefully structured and divided into sections like chapters of a book. This is apparent when the tables of content of the loose-leaf volumes are examined and is true even when sections of the loose-leaf volumes consist primarily of articles, including a substantial number prepared by authors not on petitioners' editorial staffs. It is obvious in the case of "Oil & Gas - Natural Resources" (Finding 7t, supra ) as to the BREEDING volume but equally true of the others.

(2) Books not in loose-leaf form are kept up-to-date primarily by the publication of new editions. Because of the cost and labor required to bring out a new edition of a substantial work, such as petitioners' loose-leaf volumes, new editions of books are only published at fairly long intervals, if at all. Where keeping a book or set of books up-to-date is deemed important, some publishers have resorted to pocket parts, issued annually. The United States Code Annotated (USCA) furnishes an example of which judicial notice can readily be taken.

(3) On the other hand, books in loose-leaf form can be kept up-to-date currently at any brief intervals which the publisher desires, in the instant case with one exception (see Finding 3a, supra ) monthly or oftener. This goal is attained by the simple device of replacing pages the text of which is to be changed by new pages, by removing entire sections which have become obsolete (as by enactment of a superseding law) or by adding entire new sections when the publisher decides to expand the coverage of the volume.

(4) Here, petitioners achieve this goal by furnishing to their subscribers insert pages, pre-punched with suitably placed holes for insertion in the loose-leaf volumes. These pages, as Finding 7, supra , shows, correct, revise and bring up-to-date the information contained in the loose-leaf volumes, remove obsolete pages and add new material. This function of the insert pages applies to "articles", whether written by outsiders or editorial staff, and to other materials, such as statutes, regulations, decisions by courts or administrative agencies or the comments thereon which the petitioners provide in their publications apart from the "articles". The fact that frequently the insert pages start or end in the middle of a sentence or both, start in the middle of a section with text fully understandable only when the page is inserted into the loose-leaf volume, and do not mark where editorial revisions have been made or what they are, demonstrates that the insert pages serve in the first place and predominantly to update the loose-leaf volumes. The foregoing is not in conflict with the fact that some readers or subscribers are said merely to glance at the insert pages for any novel data quickly absorbed and do not personally place the insert pages in the loose-leaf volumes. There is no evidence that even such subscribers never use the loose-leaf volumes, that their staffs do not keep them up-to-date, and that, when used, the loose-leaf volume is not used in its most current form.

(5) To find that the role of the insert pages as a means of keeping the loose-leaf volumes current is subordinate to their use by subscribers in ascertaining just the latest information or in supplying the latest in teaching materials would fly in the face of the record. While these latter uses certainly occur, the real evidence of the "artifacts" (to wit: publications, loose-leaf volumes) demonstrates that the insert pages are published by petitioners in the first place to provide, and for the main purpose of providing, loose-leaf volumes which present in book form a comprehensive text and overview of the particular subject-matter which they address and in the depth suitable for their users ( cf . T 171).

b. (1) The newsletters are closely integrated with the loose-leaf volumes. Except as noted in Finding 7, they are ready for filing therein and the filing instructions which are part of each issue of petitioners' Report Bulletins direct the subscriber accordingly.

(2) The newsletters are also textually integrated with both the insert pages and loose-leaf volumes. For they very frequently summarize, and refer by loose-leaf volume paragraph number to, material in the insert pages, sometimes well-nigh exclusively so (Finding 12b). They also often refer to related material in the loose-leaf volumes by paragraph number. All of these references would be useless unless the subscriber has and can readily consult the pertinent loose-leaf volume as petitioners' subscription requirements enable him to do.

(3) The newsletter is also inseparable from the insert pages and loose-leaf volumes for, with only an exception for Federal Taxes (Finding 7p, supra ), it cannot be purchased without a subscription which includes both the insert pages of the publication and the loose-leaf volume which they keep up-to-date.

d. The Report Bulletins and the appropriate loose-leaf volumes, sold as a package to petitioners' subscribers, form in fact a single connected whole. Regardless of the manner in which the loose-leaf volumes and the publications have been and are currently being mailed to subscribers separately at different postage rates, the publications (Report Bulletins) are not in content and function a separate entity from, but are part and parcel of, the loose-leaf volumes or, conversely, the latter are in fact an integral part of petitioners' publications. Indeed, some of the newsletters are so tenuous in independent content that an understanding of the news items is possible only by examining the loose-leaf volumes containing the referenced insert pages.

15. Petitioners' appeals were the first appeals filed and coming to hearing before the Administrative Law Judges of the U. S. Postal Service, involving loose-leaf publications and the issues of second-class mailability raised in the instant appeals. Since then, appeals involving on their face similar issues have been filed by Commerce Clearing House, Inc. (P.S. Docket No. 4/181); Research Institute of America, Inc. (P.S. Docket No. 4/183); Matthew Bender and Co., Incorporated (P.S. Docket No. 4/106); Pike and Fisher, Inc. (P.S. Docket No. 4/139). On these facts I cannot find that petitioners were singled out for revocation of their second-class mail privileges or were being placed at an undue competitive disadvantage.

16. a. Petitioners have claimed that the appeal of The Public Law Education Institute (hereinafter referred to as the "Institute") regarding the denial of its application for second-class mail privileges for the Selective Service Law Reporter (SSLR) (P.S. Docket No. 1/174) presents a precedent supporting their position. The proceeding was terminated by dismissal on 9 November 1972 upon motion of the U. S. Postal Service after granting the Institute second-class mail privileges on 29 September 1972, retroactive to the date of application.

b. The Institute's petition on appeal (PX 49) recited that the SSLR consisted of three sections: a monthly section, divided into several sub-parts for a newsletter, recent decisions, articles and statutes and regulatory material; a second section for the index and bibliography, issued as needed; and a third section, which was a 200-page practice manual, not revised since its initial issuance and mailed to SSLR subscribers at the fourth-class book rate. After the application for second-class mail privileges but before the petition from their denial was filed, the Institute agreed to withdraw the practice manual from consideration for second-class mail privileges.

c. It appears from the Institute's petition that it changed its prior practice and that as of the time of the petition subscribers to the SSLR did not receive with their subscription either the practice manual or any other loose-leaf book. If, as may have been the case, recent back issues of the periodical were furnished to subscribers as part of their initial subscription, this did not on the facts disclosed, convert the subscription into one requiring the purchase of a book. Fir the fact that the current issues of SSLR, including superseded pages, may be stored by a subscriber and preserved by him in a transfer binder beyond the year in which they are issued does not after the end of such year convert SSLR or past issues thereof into a book, or the sale thereof into the sale of a book.

d. The issues of the SSLR immediately subsequent to the dismissal of P.S. Docket No. 1/174 (PX 50, 51) contain nothing which conflicts with the foregoing findings. SSLR was a monthly publication the issues of which consisted of loose-leaf pages. In distinction from petitioners' publications the pages of the SSLR are not inserted as revisions of or additions to a topically comprehensive and complete book received at the beginning of the subscription year but were to be filed by section in ring binders provided with appropriate dividers for the convenience of the user.

e. The successor to the SSLR, the Military Law Reporter (mentioned at the hearing herein and of the content of which I take judicial notice) is a bi-monthly publication to which anyone wishing to do so may subscribe. The publication is published in conjunction with a case book on military criminal law and procedure, entitled "Justice and the Military." This book must, however, be bought separately by those desiring to use it and is sold separately at a substantial price. No subscriber to the Military Law Reporter is compelled to buy it.

CONCLUSIONS OF LAW

1. Petitioners assert that the Manager's institution of proceedings against them as members of a class of highly competitive publishers was arbitrary and an abuse of discretion (Pet. Br., p. 46). They further assert that the Manager's action against petitioners was in "irreconcilable conflict" with his own action in 1972 in the proceeding involving the Selective Service Law Reporter ( id ., p. 51). While these arguments are placed last in petitioners' brief they are essentially in the nature of preliminary objections which should be considered before the merits are reached.

2. Petitioners' contention that the instant proceedings are test cases directed against them and single them out from other publishers of loose-leaf publications is not correct. The Manager has brought proceedings for revocation or denial of second-class mail privileges against other publishers, including Commerce Clearing House, Inc., petitioners' principal competitor. See Finding 15, supra . Nor are petitioners' appeals brought as test cases (Pet. Br., p. 47). The Manager constantly initiates administrative actions looking toward granting or denying applications for, or revoking existing, second-class mail privileges. As the facts show, he initiated revocation and denial actions against a number of publishers of loose-leaf publications. It appears on the record to be a purely random occurrence that action against petitioners was the first to be taken. It follows, though this is not entirely free of further elements of chance, that petitioners' appeals to the administrative law judges of the U. S. Postal Service became the first to be ready for decision. As a matter of fact, petitioners were not victims of an abuse of administrative discretion.

3. Nor were they such as a matter of law. The Supreme Court decisions cited by petitioners (Pet. Br., pp. 48-49) involve classifications of persons and corporations under state statutes which the Court found to discriminate invidiously in violation of the Equal Protection Clause of the Constitution of the United States. Royster Guano Co. v. Commonwealth of Virginia , 253 U.S. 412 (1920), rejecting a distinction between Virginia corporations deriving income from without the state only and those with income from services within the state, as to Virginia taxation of the out-of-state income (but cf . the dissent of Brandeis, J., id ., at pp. 417 et seq .). Reed v. Reed , 404 U.S. 71 (1972), involved an Idaho statute's preference for men over women in the appointment of administrators of decedent's estates. No such problem of discrimination in state law is presented here. But although the prohibition against unreasonable classification runs also against the Federal Government under the Due Process Clause of the Fifth Amendment (see Bolling v. Sharpe , 347 U.S. 497 (1954); Richardson v. Belcher , 404 U.S. 78 (1971)) no problem of discriminatory and unconstitutional classification under the Postal Service regulations is presented. The Postal Service regulations define the conditions of mailability of second-class matter, applicable to all, and the only issue before me is the correctness of the Manager's application thereof as regards the captioned publications of petitioners. In respect of that matter, charges of discriminatory application of the regulations are without basis in fact. Conclusion of Law No. 2 , supra . Hence, there is no reason to speculate on the relief available to petitioners and the avenues for action open to the Manager if the situation were otherwise.

4. The foregoing conclusions are in accord with the order, dated 14 April 1976, of Chief Administrative Law Judge Duvall in The Research Institute of America, Inc. , P.S. Docket No. 4/183, which denied petitioner's motion to defer proceedings in its appeal until proceedings against all other publishers similarly circumstanced had been docketed. A copy of his order is attached as Appendix II for information of the parties.

5. Petitioners' reliance on the disposition of the Selective Service Law Reporter case ( The Public Education Institute , P.S. Docket No. 1/174) is equally misplaced. The position of that case rested on the acceptance by the Postal Service of the Institute's assurances or representations, verified, it must be assumed, by the Postal Service, that the Selective Service Law Reporter had ceased to be a supplement to a book and was an independent periodical publication, meeting in all other respects the requirements of the Postal Service regulations. See Finding of Fact 16. This point, in my view material, distinguishes the Institute case (P.S. Docket No. 1/174) from petitioners' appeals and deprives it of the precedential value which petitioners attach to it. Hence, the strictures on arbitrary administrative action in Dixie Express Co. v. United States , 242 F. Supp. 1016 (D. Miss., 1965) are out of place here.

6. The definition of a periodical publication for second-class mail purposes, as laid down in Houghton v. Payne , 194 U.S. 88 (1904), and the specific requirements found in section 132.2 of the Postal Service Manual, are two well known to require extensive exposition in the instant case. Suffice it to say that many past controversies regarding the revocation of, or denial of applications for, second-class mail privileges have centered around the presence of a sufficient "article" content in the publications in issue. Florists' Transworld Delivery Association (FTD), P.S. Docket No. 1/167 (Am. P.S. Dec., 17 Sep. 1974); National Automobile Dealers Used Car Guide Company , P.S. Docket No. 2/183 (1975); Marvin Levin , P.S. Docket No. 3/111 (1976). For recent court approval of the principle of FTD , see Teleflora Incorporated v. United States , Civil Action No. 75-228 (U.S.D.C., D.C., order 25 June 1975).

7. The foregoing line of decisions leads to the conclusion that independently of other grounds the revocation action of the Manager must be upheld as to two of petitioner Prentice-Hall's publications in that they lack the requisite article content.

a. The Federal Tax Citator Report Bulletins are nothing but a list of cases without any form of consecutive text that can be held to be articles. Such a publication does not meet the test of Houghton v. Payne, supra, and under FTD, supra, cannot be deemed to be a periodical publication mailable as second-class matter. Petitioners are correct in arguing (Pet. Br. pp., 44-45) that the Federal Tax Citator is distinguishable in physical make-up and content from Shepard's Citations, a publication denied second-class mail status in P.S. Docket No. 1/88 (1974). Clearly, the two publications do not stand in a one-on-one relationship although a broader application of the principles laid down in Shepard's Citations, Inc., supra, might cover both. In any event, FTD, supra , provides a complete rationale and precedent for the initial decision as to the Federal Tax Citator, set forth above.

b. The "Capital Adjustments - Reorganization - Stock Rights" Report Bulletins likewise lack sufficient article content. Their possible article content is even less than that found in the Standard Rate and Data Service publications and the question of their mailability as second-class matter falls clearly within the purview of the Initial Decision in Standard Rates and Data Service, Inc. , P.S. Docket No. 4/20 (1976) (appeal pending). Hence, the Capital Adjustment Report Bulletins cannot be mailed at second-class postage rates.

8. On the other hand, adequate article content is present in the Federal Taxes Report Bulletin newsletter. It is composed of short prose news items which constitute "articles" within the meaning of Houghton v. Payne , supra . Hence, petitioner Prentice-Hall is entitled to mail the Federal Taxes newsletter as second-class matter to those subscribers whose subscription is limited thereto and who neither receive the Federal Taxes loose-leaf volumes nor the Report Bulletin insert pages. To the extent that the Manager ruled otherwise, his ruling was incorrect and is reversed.

9. The principal question which petitioners' appeals bring to the fore is not the matter of Houghton v. Payne article content but the most basic question whether petitioners' Report Bulletins are separate publications, or a part of the loose-leaf volumes, and, as the Manager contends, only periodic supplements thereto.

10. The question of whether a particular publication is a separate one or part of another has to my knowledge arisen only in a few instances. These cases demonstrate that the issue is one which may be properly raised and considered as the basis for challenging second-class mail privileges previously granted or for denying an application therefor. Factually the cases are not close to the instant appeals. In Marvin Levin , P.S. Docket No. 1/28 (Init. Dec. 1972; P.S. Dec. 1973; P.S. Dec. on M. for Recon. 1973) the Manager contended that the Executive Beverage Journal which was published by Southern Beverage Journal, Inc., a corporation wholly-owned by petitioner and his wife, and the contents of which were essentially a compilation of matter appearing in the various regional editions of the Southern Beverage Journal, was nothing more than another edition of the latter Journal and its publisher not entitled to second-class mail privileges therefor. This contention was rejected by the Initial Decision of former Administrative Law Judge John Lewis because of the difference in purpose and readership of the two publications and his decision was upheld by the Judicial Officer. The other two cases involved the distinction between original and additional entry of editions of a particular publication. In Dow Jones & Company, Inc. v. United States Postal Service , 379 F. Supp. 1167 (D. Del. 1974) the Manager revoked the original entry second-class mail permits of three regional editions of the Wall Street Journal on the ground that any periodical publication was entitled to only one original entry permit and that the four regional editions of the Wall Street Journal were in reality one publication within the meaning of the relevant provisions of law. This position was upheld in the administrative-judicial review proceedings (P.S. Docket No. 1/11 (1973)) and an injunction sought by Dow Jones against the Postal Service was denied by the Federal District Court. Semble : William C. Marcil , P.O.D. Docket No. 3/82 (1973) (newspaper published in two cities with 98% identical content not entitled to separate original entries).

11. In regard to the Report Bulletins, for which petitioners hold or have vainly sought second-class mail privileges, the facts dictate an answer rejecting petitioner's contention that they are publications independent of the loose-leaf volumes.

a. In the first place, the subscription arrangement, with the Federal Taxes newsletter exception (Concl. of Law No. 8), requires the subscriber to purchase and pay not only for the Report Bulletins but also for the loose-leaf volumes. Hence, each Report Bulletin is by petitioners' own actions irrevocably tied to a book and sold only in connection with the sale thereof. These books (loose-leaf volumes) represent far too great an effort of research, editorial effort and clerical and administrative labor to be discounted as an insignificant "throw-in" or bonus to subscribers. On the contrary, petitioners attach so much importance to the sale of the books that they will not sell the current Report Bulletins without the pertinent books, with the one exception noted.

b. The major purpose of publishing the Report Bulletins is to distribute the insert pages and thus to maintain the books (loose-leaf volumes) as a source of reliable information to their users. The insert pages almost always constitute the bulk of each issue of a Report Bulletin. They are fitted into the existing text so that the pages of the books continue to follow each other in nearly unbroken sequence. Many of the pages cannot be usefully read until they are inserted into the book and, although they may contain fresh information, this cannot be detected unless the reader compares the old and new pages. Nor is valuable information gained unless the entire text relating to such information is carefully studied. While not infrequently the insert pages contain whole articles, regulations or rulings which can be read by themselves as complete items, such insert pages also are not published to be read consecutively as a series of stories in a "magazine" but are numbered and set up to be inserted into the sections of the loose-leaf books where they belong and to be understood with the remaining text of such sections. Even where the insert pages contain a whole section of the book such new section is useful only when placed in the context of the particular loose-leaf volume as a whole. Testimony which intimates that the insert pages are not intended and predominantly used to keep the loose-leaf volumes up-to-date has to me an artificial ring and I place no credence in its accuracy. Any secondary uses cannot affect materially the determination of the character of the publications on which the outcome of the appeals depends.

c. While the newsletters standing alone might well be deemed periodical publications within the meaning of PSM 132.2 they are in the instant case so completely integrated with the insert pages and the loose-leaf books that they cannot provide the basis for second-class mail privileges for the Report Bulletins.

12. The foregoing conclusions as to the Report Bulletins imply that each of the sets of loose-leaf volumes is a book. On the facts presented the correctness of this determination is not in doubt. All are books as this term is commonly understood (see Houghton v. Payne , supra ) but one: the loose-leaf volumes containing the Reported and Memorandum Decisions of the Tax Court. For these volumes do not cover a specific topic by means of a coherent text, intended as complete in itself within the purview of the author's plan. The Tax Court Decisions loose-leaf volumes are merely a collection of articles ( i . e . court decisions) printed and filed in the loose-leaf volumes one after another as a variety of articles by different authors appear in a periodical publication. The loose-leaf format provides opportunity for correcting printing errors quickly and for minimizing blank pages between decisions. But although the conclusion may not be entirely free from doubt the Tax Court Decisions loose-leaf volumes cannot, as a matter of law, be classified for that reason alone as books. There are like issues of a periodical which further issues, i . e . insert pages, continue. Hence, the principle enunciated in the Manager's rulings and upheld herein cannot apply to the Tax Court Reported and Memorandum Decisions Report Bulletins. Petitioner Prentice-Hall is entitled to retain second-class mail privileges therefor.

13. Petitioners argue that their publications, if not periodical publications under PSM 132.2, should be considered as newspapers for second-class mail purposes. The short answer is that since the Report Bulletins cannot be considered as independent publications to which (given compliance with all other terms of decisional law or regulation) second-class mail privileges might be extended they also cannot be considered to stand on their own as newspapers. Hence, this issue raised by petitioner (Pet. Br., p. 41) is not reached. I might add, however, that the views expressed by me on this point in my Initial Decision in National Auto Research Publications, Inc. , P.S. Docket No. 2/131 (1975), have not found favor with the Judicial Officer (see his Decision on Motion for Reconsideration of P.S. Decision, 12 March 1976) and can presumably not be considered valid at this time.

14. Accordingly, the rulings of the Manager are upheld except (i) as to the Federal Taxes newsletters mailed to subscribers who subscribe solely to the newsletter; and (ii) as to the Tax Court Reported and Memorandum Decisions Report Bulletins. Petitioner Prentice-Hall is entitled to second-class mail privileges as to these two publications and in this regard the Manager's ruling is reversed.