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Copy to show compliance with basic second-class requirements. The publisher must file with the postmaster at the original entry office a copy of each issue.

(2) Copy marked to show advertising The publisher must file either with the postmaster of the original entry office or the postmaster of the additional entry office where the publication is produced or prepared for mailing, a copy of each edition of each issue marked by the publisher in such manner that the advertisements in the copy may be verified when necessary. The postmaster of the entry office where the marked copies are filed shall promptly furnish to the postmasters of all the other entry offices statements of the verified per copy weights and the percentage of advertising shown by each marked copy. When the statements are not promptly received by the postmasters of the other entry offices, they should request the postmaster of the office where the marked copies were filed to furnish them. Continued failure to furnish the statements promptly should be reported to the Director, Classification and Special Services Division, Bureau of Operations.

(b) Definition of advertisements. The term "advertisements" includes display, classified, and all other forms of advertisements; the term also includes editorial or other reading matter for the publication of which money or other valuable consideration is paid, accepted, or promised. When the publisher is not compensated for the publication of editorial or other reading matter, such matter will take the rate of postage for other than advertising. Articles, items, and notices in the form of reading matter inserted in accordance with a custom or understanding that a "reader" is to be given the advertiser or his products in the publication in which the display advertisement appears are advertising. When a newspaper or periodical advertises its own services or issues, or any other business of the publisher, in the form of either display advertisements, or editorial or reading matter, this is advertising and will be charged the advertising mailing rate.

(c) Statement showing number of copies mailed. When postage is to be computed on the bulk weight of one issue as provided for by § 126.6(a), the publisher must file with the first mailing of each issue a statement on Form 3542, "Statement Showing Number of Copies

of Second-Class or Controlled Circulation Publication Mailed", showing the number of copies included in each zone or other separation necessary for computing the postage, and the average weight per copy as determined in the manner prescribed by § 126.6(b). When postage is to be computed at the end of each calendar month on the total bulk weight of all issues mailed during the month as provided for by § 126.6(c), the statement must be filed with the first mailing of the last issue mailed each month and must show the average number of copies of each issue included in each separation, the weight of one sheet, and the combined weight of one copy from each issue as determined in the manner prescribed by § 126.6(d). publisher must determine the average number of copies by dividing the total number of copies mailed during the month by the total number of issues mailed. The dates of issue and the dates of mailing must be indicated by entering in the spaces provided on Form 3542 only the first and last dates.

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(d) Endorsements on marked copy and Form 3542 (Statement showing number of copies of second-class publication mailed). The total advertising and nonadvertising portions must be determined by column inches, square inches, pages, or by any other recognized units of measure. The publisher must show by endorsement on the first page of the copy the total units of the advertising space and the total units of nonadvertising space and the percentage of each. When postage is to be computed on the bulk weight of one issue as provided for by § 126.6(a), the percentage of advertising endorsed on the marked copy must be entered on Form 3542. When postage is to be computed at the end of each calendar month on the total bulk weight of all issues mailed during the month as provided for by § 126.6(c), the percentage of advertising to be entered on Form 3542 must be obtained as follows:

(1) Keep a record of the number of units of advertising space and the number of units of nonadvertising space in each issue.

(2) Add the advertising units in each issue to determine the total advertising units in all of the issues.

(3) Add the nonadvertising units in each issue to determine the total nonadvertising units in all of the issues.

(4) Add the advertising and nonadvertising units to determine the total units in all of the issues.

(5) Divide the total advertising units by the total units.

(e) Verification of advertising percentage. The postmaster must verify the advertising percentage reported on Form 3542, Statement showing number of copies of Second-Class Publications, by actual measurement of the advertising and nonadvertising portions of one issue at least once a year. If discrepancies are noted, more frequent verification must be made to establish the accuracy of the publisher's figures. A record of the verification shall be made on the reverse side of the applicable Form 3542 or the papers attached thereto.

(f) Payment of advertising rates on reading portion. A publisher may, if he so desires, pay postage at the advertising zone rates on both the advertising and nonadvertising portions. When the advertising exceeds 75 percent, the copies filed must have endorsed on the first page by the publisher the words Advertising over 75 percent. When the advertising does not exceed 75 percent, the copies must have endorsed on the first page by the publisher the words Advertising not over 75 percent. The entire weight must be entered on Form 3541, Computation of Second-Class or Controlled Circulation Postage, in the column provided for the advertising portion. The words Over 75 percent or Not over 75 percent according to whether the copies do or do not contain over 75 percent advertising must be entered on Form 3541 and Form 3542. The word Waived must be written in the space provided for the weight of the reading portion on Form 3541.

(g) Copies of previous and current issues combined. When a reasonable number of copies of previous issues are included in a mailing of a current issue, they may be accepted and charged with postage on the basis of the percentages of advertisements and nonadvertisements contained in the current issue, the issue forming the bulk of the mailing presented being regarded as the current issue.

(h) Statement of news agent. When a news agent presents for mailing second-class matter subject to the zone rates of postage, he must submit to the postmaster a statement showing the percent of the space in such matter devoted to advertisements and the percent devoted to other than advertisement.

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Publishers should furnish this information to news agents purchasing copies of their publications in order that such agents may be able to prepare the statements required.

[26 F.R. 11530, Dec. 6, 1961, as amended at 29 F.R. 561, Jan. 23, 1964; 30 F.R. 7391, June 4, 1965; 30 F.R. 7748, June 16, 1965; 30 F.R. 8479, July 2, 1965; 32 F.R. 3019, Feb. 17, 1967. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 126.6 Weighing and collection of post

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age weight of one copy will also be obtained from the statement on Form 3542 and must be determined by the publisher as prescribed in paragraph (b) of this section.

(b) How to determine average weight per copy of one issue. The average weight per copy must include the wrapping and binding materials and must be obtained by the publisher as follows:

(1) Count a reasonable number of copies selected in such a manner for test purposes that when wrapped and bundled they will bear a proper ratio to the total number of copies to be mailed individually wrapped and wrapped bundled for mailing.

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(2) Weigh in bulk the copies which have been counted, after they wrapped and bundled for mailing.

(3) Divide the bulk weight of the test copies by the number of test copies to obtain the average weight per copy in pounds. Record fractions of pounds as decimals with six digits to the right of the decimal point.

(c) How to determine bulk weight. When publications are regularly printed on sheets of uniform weight, postmasters are not required to compute the postage on the bulk weight of each issue. Postage on such publications may be computed at the end of each calendar month on the total bulk weight of all issues mailed during the month. The postmaster will obtain the total bulk weight by multiplying the average number of copies mailed by the combined weight of

one copy from each issue. The average number of copies of each issue mailed during the month will be obtained from the statement on Form 3542 and must be determined by the publisher in the manner prescribed by § 126.5 (c). The combined weight of one copy from each issue will also be obtained from the statement on Form 3542 and must be determined by the publisher in the manner prescribed by paragraph (d) of this section.

(d) How to determine combined weight during a calendar month. The combined weight of one copy from each issue mailed during a calendar month must include the wrapping and binding materials and must be obtained by the publisher as follows:

(1) Determine by the method prescribed in paragraph (b) of this section the average weight of one copy of any one issue selected by the postmaster for testing and verifying during the month.

(2) Divide the average weight of one copy by the number of sheets in the copy to determine the weight of one sheet in pounds. Record fractions of pounds as decimals with six digits to the right of the decimal point.

(3) Select one copy of each of the issues mailed during the month and count the sheets in all of the selected copies to determine the total number of sheets in the selected copies.

(4) Multiply the total number of sheets in the selected copies by the weight of one sheet.

(e) Verification by postmasters of weights and number of copies. The average weight per copy obtained by the publisher in the manner prescribed by paragraph (b) of this section for use either in computing postage on the bulk weight of a single issue, or in determining the weight of one sheet as provided for by paragraph (d) of this section must be verified by the postmaster by weighing, or by supervising the weighing of, a representative number of copies of the issue. If the average weight per copy is used for determining the weight of one sheet, the postmaster must also verify the computation by which the publisher determines the weight of one sheet. At the end of each calendar month, when postage is computed on the total bulk weight of all issues mailed during the month, the postmaster must verify the combined weight of one copy from each issued by counting the sheets in the copies filed under the provision of

§ 126.5(a) and multiplying the total by the previously verified weight of one sheet furnished by the publisher on Form 3542. If there is reason at any time to doubt the accuracy of the information reported on Form 3542, sufficient weighings must be made to resolve the doubt. The postmaster shall keep a record of the verification, preferably on the back of applicable Form 3542.

(f) Annual verification. (1) Verification of the data furnished on Form 3542 shall be made annually at offices where there are no more than 100 publications entered as second class. At other offices verification shall be accomplished by cycling over a period not to exceed 5 years as follows:

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Records of the verifications on Form 3548, "Postmaster and Publisher Joint Review of Data on Form 3542" must be retained with the applicable Forms 3542.

(2) Postmasters must select a Form 3542 which is on file for each publication and review it with the publisher. The review must include an inspection of the publisher's record such as the print order or invoice showing the total number of copies printed, individual and bulk orders for subscriptions, stubs of receipts issued, sales records and returns for over-thecounter sales, cash book, or similar records. Postmasters must determine that:

(i) Copies reported as subscribers' copies, which must not include complimentary or other nonsubscribers' copies, are in substantial agreement with the publisher's mail circulation records.

(ii) Nonsubscribers' copies, other than those mailed at the transient secondclass rate, are declared as samples but do not exceed the amount allowable. See § 132.4(f) (1) (ii) of this chapter.

(iii) Nonsubscribers' copies which exceed the amount allowable as samples are mailed at the transient second-class rate.

(iv) During the previous 12-month period the total copies to be paid subscribers and to purchasers of single copies constitute at least 65 percent of the total circulated. See § 132.2 (b) (7) of this chapter.

(3) Where the verification discloses discrepancies which in the opinion of the

postmaster are substantial and which cannot be resolved, the postmaster shall submit a memorandum of the facts with a complete report on the reverse of Form 3501 to the Classification and Special Services Division, Bureau of Operations, for advice and instructions before taking further action.

(g) Payment of postage at time of mailing or by advance deposits. Publishers must pay in money before the mailings are dispatched all postage charged at the second-class rates shown in § 132.1 of this chapter. Exception: The transient rate (§ 132.1(c) of this chapter) must be paid by adhesive or meter stamps or by permit imprints. (See §§ 144.3(b) and 144.5(a) (2) of this chapter). Postmasters will accept deposits of money to pay for as many mailings as desired and will give the publishers Form 3544 "Post Office Receipt for Money", for the deposits.

(h) Record of mailings. Postage on the bulk mailings will be computed on Form 3540, "Compensation of Special Rate Second-Class Postage" or Form 3541 "Compensation of Regular Second-Class and Controlled Circulation Postage", from the weights obtained on Form 3542. The publisher will be furnished a duplicate of Form 3540 or Form 3541 if he requests one. When postage is computed on the bulk weight of one issue, the mailings and postage will be recorded in Form 3543. "(Special) Record of Second-Class Postage." When postage is computed at the end of each calendar month on the total weight of all issues mailed during the month, the total mailings and postage for the month will be computed on one Form 3541, and only the totals will be recorded in Form 3543.

(i) How to show dates of issue and mailing. When a number of consecutive issues are covered by one Form 3541 or Form 3542, or by one entry in Form 3543, the dates of issue and the dates of mailing must be indicated by entering the first and last dates in the appropriate spaces and columns.

[26 F.R. 11531, Dec. 6, 1961, as amended at 29 F.R. 561, Jan. 28, 1964, 33 F.R. 4251, Mar. 8, 1968. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

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(b) Statement showing mailings to each zone. The publisher must submit once each calendar year, at 12-month intervals, a statement on Form 3542 showing the number of subscribers' copies of an issue mailed to each zone. During these 12-month intervals, the publisher does not need to complete the lines for zones 1 to 8 on Form 3542. He enters only total zone mailings on "Total to all zones" line.

(c) New zone statement. Postmasters will require a new report on Form 3542 showing the mailings to each zone at any time during the 12-month intervals when the volume of mailings to the zones varies or when there is an increase in the total number of copies.

(d) Computation. (1) Compute the key rate on Form 3541 once each calendar year at 12-month intervals, using the subscribers' copies shown by zones on Form 3542 furnished in accordance with paragraph (b) of this section. If a new report on Form 3542 is filed at any time during the 12-month intervals showing mailings to each zone, a new key rate must be computed and used.

(2) Enter on the corresponding lines in column B of Form 3541 the number of copies for each zone shown on Form 3542. Apply the applicable pound rates shown in column F to the number of copies for each zone and enter the postage for each zone in column C of Form 3541. Divide the total postage in item 2, column C, by the total number of copies in item 2, column B, to obtain the key rate, which should be carried to six decimal places. Apply the key rate only to the total weight of the advertising portion. Apply the regular reading portion rate to the total weight of the reading portion. Computation of the key rate must be verified by an employee or supervisor other than the person who originally computed it. See Exhibit A below.

(3) Prepare Form 3541 for subsequent mailings as shown on Exhibits B and C below until a new report on Form 3542 showing mailings to each zone is filed under paragraph (b) or paragraph (c) of this section. Where a key rate has been developed and is being used to compute postage for subscribers' copies, postage on sample copies shall be determined by using the same key rate unless the transient rate is chargeable (see §§ 132.1(c) and 132.4(f) (1) of this chapter).

1. CITY

EXHIBIT A COMPUTATION OF NEW KEY RATE

(Form 3542)

POST OFFICE DEPARTMENT

STATEMENT SHOWING NUMBER OF COPIES OF SECOND-CLASS OR CONTROLLED CIRCULATION PUBLICATION MAILED

Mayville

4. NAME OF PUBLICATION OR NEWS AGENT

Mayville Press

5. DATE OF ISSUE PRINTED IN COPIES

January 1, 1967

7. CHECK TYPE(S) OF PUBLICATION, IF APPLICABLE

FEWER THAN 5,000 COPIES OUTSIDE COUNTY

When this statement is for ONE ISSUE only, furnish the following information:

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13. When postage is computed at the key rate, the lines for Zones 1 to 8 need not be completed except for one issue each calendar year at 12-month intervals. The total zone mailings must be entered in item 14 during the 12-month intervals.

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