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. 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. at 31 F.R. 15350, Dec. 8, 1966]

Redesignated

§ 126.6 Weighing and collection of postage.

(a) Procedure for determining bulk weight of one issue. When postage is to be computed on the bulk weight of one issue, the postmaster will obtain such weight by multiplying the total number of copies of the issue mailed by the average weight of one copy. The number of copies of a single issue mailed will be obtained from the statement on Form 3542 required by § 126.5(c). The average 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.

(2) Weigh in bulk the copies which have been counted, after they are 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.

combined

(d) How to determine 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: Publications entered:

101-200 201-300

301-400.

401_-.

Cycling period

Records of the verifications must be retained, preferably on the reverse side of the applicable Forms 3542.

(2) Postmasters by joint review of the Form 3542 for a selected issue of each publication with the publisher, including a review of the publisher's records, shall 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 paid subscribers and the purchasers of single copies concirculated. See § 132.2(b) (7) of this stitute at least 65 percent of the total 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 side 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) this chapter.) Postmasters will accept deposits of money to pay for as many mailings as desired and will give the publishers receipts on Form 3544 for the deposits.

of

(h) Record of mailings. Postage on the bulk mailings will be computed on Form 3541 from the weights obtained on Form 3542. The publisher will be furnished a duplicate of 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 SecondClass 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. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 126.7 Key rate.

(a) Authority to use. Postmasters will use the key rate method of computing pound-rate postage on publications subject to the advertising zone rates when large mailings justify its use.

(b) Statement showing mailings to each zone. The publisher must submit once each calendar year, at 12-month intervals, a statement on Form 3542 show

ing 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).