Strangeness with -p flag on command line?

[Steve Beisner]

Similar to section 1.1 in the Expert's Guide running an example
that looks like this:
--------------
@SysInclude{doc}
@Document
//
@Text @Begin
5i @Wide {
Macbeth was very ambitious.  This led him
to wish to become king of Scotland. The witches told him that this
wish of his would come true. The king of Scotland at this time was
Duncan.  Encouraged by his wife, Macbeth murdered Duncan. He was thus
enabled to succeed Duncan as king. (51 words) Now is the time for all
good men to come to the aid of their country.
|0.25i
Encouraged by his
wife, Macbeth achieved his ambition and realized the prediction of the
witches by murdering Duncan and becoming king of Scotland in his
place. (26 words)
}
@End @Text
---------------


With the -p flag (to output ASCII text): this produces:
---------------
          Macbeth was very          Encouraged by his wife,
          ambitious.  This led      Macbeth achieved his
          him to wish to become     ambition and realized
          king of Scotland. The     the prediction of the
          witches told him that     witches by murdering
          this wish of his would    Duncan and becoming

          come true. The king of    king of Scotland in his
          Scotland at this time     place. (26 words)
          was Duncan.  Encouraged
          by his wife, Macbeth
          murdered Duncan. He was
          thus enabled to succeed
          Duncan as king. (51
          words) Now is the time
          for all good men to
          come to the aid of

          their country.
-----------------

Notice the extra CR/LF sequences.  Without the -p flag,
it works "as expected", i.e., without the blank lines.
Using Lout 3.10 on Windows NT.

Anybody want to make me feel stupid by explaining this?

-- Steve Beisner