I don't know if they do it at office depot, but I know that Kinkos has the hydraulic cutters thst printers use. Or you can call around to printers in your town and ask them if they do cutting and padding. If they do, ask them how much per cut and if they have a limit on thickness. They usually charge just a few $ per cut ( if that) so you could just ask them to cut your phone book into 3 1/2" strips. If they do it through the binding, they'd already be in pads! If not, you can ask if they do padding, which is when they glue the end of the stack with that special glue that makes it into a pad of paper.