Ernest L. and Kathleen Newsome - Page 3

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                  In 1991 and 1992, the Star Telegram offered 4 basic                                  
            subscription plans, each having a distinct subscription rate.                              
            The subscription rate for daily (the morning or evening edition,                           
            Monday through Friday) and weekend (Saturday and Sunday) service                           
            was $10.95 per month.  The subscription rate for daily service                             
            was $8.95 per month.  Weekend service, which included Fridays,                             
            cost the subscriber $7.95 per month, and a combination service,                            
            which included the morning and the evening weekday editions, and                           
            the weekend editions, cost $12.95 per month.  In addition to                               
            these subscription plans, from time to time the Star Telegram                              
            offered various discounts and promotions to different categories                           
            of subscribers.                                                                            
                  Although the subscription rates were set by the Star                                 
            Telegram, the revenue generated through collections from the                               
            subscribers on petitioner's delivery route belonged to him, not                            
            the Star Telegram.  In effect, petitioner purchased the                                    
            newspapers from the Star Telegram and in turn sold them to his                             
            customers.  As best we can determine from the record, a                                    
            subscriber to the Star Telegram was required to pay on a monthly                           
            basis, regardless of the subscription plan.  A small percentage                            
            of petitioner's customers mailed their payments directly to the                            
            Star Telegram, and petitioner received credit for these payments                           
            against his liability to the Star Telegram for the cost of the                             

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Last modified: May 25, 2011