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The newly minted Yale grad was feeling discouraged. The 24-year-old teacher had quit his day job to write a book, and only his two closest college buddies thought anything of his work. As he noted in his diary, he encountered "serious obstacles."

Public libraries across the U.S. are getting into the online book-selling business, providing convenience for patrons but also raising concerns that the sales threaten to commercialize taxpayer-supported institutions founded to provide information free-of-charge.