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As of May 19, 1989, near the end of the term of the
Contract, petitioner’s housefile contained a total of 2,084,019
donor names, of which 1,165,153 were “active names” and 918,866
were “inactive names”.16 As of May 8, 1989, petitioner’s
housefile contained 1,164,698 “active donor names”, which had
been produced from the sources indicated in table 9.
Table 9
Source Number of Names
Sweepstakes Mailings 810,411
15(...continued)
which 19,915,212 were sweeps letters. The stipulated status
report shows 75 housefile mailings, but a total of only
21,849,216 letters. The 47 sweeps housefile mailings that we
were able to identify involved 17,313,153 letters.
It may be that the status report misidentified mailings
totaling about 6,000,000 names. Although the discrepancy between
the stipulation and the stipulated exhibit is substantial (more
than 10 percent of the total), it does not affect our ultimate
conclusions.
16 The parties stipulated to these numbers of “active
names” and “inactive names”. An invoice dated May 19, 1989, to
petitioner from Wiland, the computer company that maintained
petitioner’s housefile, reflects that Wiland had prepared a
computer tape of petitioner’s housefile that contained 1,165,153
“active names” and 918,866 “inactive names”. According to Dan
Wells, an employee of Wiland who testified at trial, “active
names” were the names that petitioner had mailed most recently.
Interestingly, Watson, during his testimony, estimated that
petitioner’s housefile, as of the May 30, 1989, date petitioner’s
contract with W&H ended, contained approximately 250,000 to
300,000 “active names” and another 1 million “inactive names”.
Watson, however, defined “active names” to be names which, at
that point, would produce a profit if mailed to, and “inactive
names” to be names which, at that point, would not produce a
profit if mailed to. He elaborated that the actual
categorization of a particular name as “active” or “inactive”
results from applying a complex statistical aging formula.
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