Ernest L. and Kathleen Newsome - Page 4

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                  To collect from those customers who did not mail their                               
            payments directly to the Star Telegram, petitioner had to go from                          
            "door to door", which was a time consuming process.  Customers                             
            who paid the petitioner in this manner did so by checks made                               
            payable to the Star Telegram, or in cash.  Petitioner turned the                           
            checks over to the Star Telegram, and if his monthly liability to                          
            Star Telegram was satisfied, he received a Star Telegram check                             
            for the amount turned over.  If he had an outstanding liability,                           
            the checks he turned over were credited against the liability.                             
            Petitioner kept the cash that he collected from his customers in                           
            a bag in his house.  Petitioner used this cash to pay the balance                          
            of his liability to the Star Telegram after payments made by                               
            check were taken into account, and for daily operating expenses.                           
            Although we cannot estimate the amounts with any degree of                                 
            precision, it appears that petitioner made substantial cash                                
            payments to the Star Telegram each month for the newspapers that                           
            he purchased for his delivery route.                                                       
                  Because such a small percentage of petitioner's customers                            
            mailed their payments directly to the Star Telegram, and due to                            
            the nature of areas that petitioner served, petitioner considered                          
            his delivery route relatively undesirable.  His route included                             
            apartment complexes and trailer parks that had transient                                   
            populations, and some of the area's less desirable residential                             

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Last modified: May 25, 2011