As my very fragile nth edition photocopy shows, the original Western Electric copies are not troff'ed and run through a typesetter because John (like most of us at the time) did not have access to one (and Tom Ferrin had not yet done the vcat(1) hack at UCSF). Lions used standard nroff output - (in this case, originally to 132 column line printer paper I believe).
FWIW: [I would check with one of his former students who might know for sure], but I was under the impression he used the 5th/6th edition version of the Mike Lesk Macro's (-ms) that were around with nroff at the time. I don't remember how underlining was done in the book, because raw nroff generated ASR37 codes native, and the ul(1) program would not get a wide release until after BSD [but it is probable that other folks did something similar too]. Again, I've forgotten how this all worked, but sadly there was a time when I used it every day ;-) IIRC early nroff may have had a switch to generate line printer codes instead.
Also, the 'memorandum macros' (-mm) came out of Whippany, and I believe were first released with PWB. They may have been included with the typesetter C release too, but I don't think they are part of V7. Eric's UCB thesis macros, (-me) show up with one of the BSDs releases.
It's funny, I used -ms first then got really hot for -mm because they could do things like Lists better and used them until I went to UCB. But after doing my thesis I went back to the simplicity of Lesk's macros, but carry a couple of extra (like Lists) in my personal front end.
Like Larry, troff/nroff still my preferred way to do a large document with chapters
Clem.