- 22 -
The Los Angeles and Chicago newspaper collection contained
33,710 issues, all in firmly bound volumes.20 We believe that
bound volumes of newspapers containing thousands of issues would
generally not be sold to individual purchasers interested in a
specific issue or comic strip; they would most commonly be sold
to newspaper collectors, newspaper dealers, and others interested
in obtaining a newspaper collection.21 If petitioner and Mr.
Fagliano intended to sell individual issues, this would not be a
“subsequent resale” of the newspapers because the items being
sold would be individual issues and comic strips, not the bound
volumes of newspapers. The individual issues contained in the
Los Angeles and Chicago newspapers could not readily be sold to
purchasers interested in birthday, anniversary, and significant
event newspapers because the individual issues were not ready for
immediate sale. See Akers v. Commissioner, supra at 247. The
20Neither party established the number of bound volumes
contained in the collection or which specific individual issues
were contained in each volume. At trial, Mr. Verb provided a
rough estimate of approximately 50 issues in each bound volume;
however, he also testified that one bound volume contains 3
months of issues. In his appraisal, respondent’s expert, Timothy
Hughes (Mr. Hughes), stated that bound volumes of newspapers from
the post 1940's might contain as few as 15 days of newspapers,
while bound volumes of newspapers from the 18th century contain
as many as one year of newspapers. In the first stipulation of
facts, some of the Los Angeles and Chicago newspapers were
identified as being single issue volumes, however, neither party
addressed this point.
21We note that petitioners do not dispute that neither
petitioner nor Mr. Fagliano was a dealer in rare or early
newspapers at the time the Montana newspapers were purchased.
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