Speaking for the third class users a ssocati on, Charles W. As David Reichberg, executive vice president of the advertising agency of Altman, Vos, and Reichberg, noted, “If the cost of third‐class bulk mail goes higher and the differential between free‐standing stuf fers (circulars inserted loose in newspapers) and third class direct mail becomes greater, even more money will be shifted into free standing stuff ers.” The D.M.A.A.-whose mem bers were saved an immedi ate increase in September to the highest third‐class rate allowable by President Nix on's wage‐price freeze-is equally agitated. “If maga zines had attempted to ab sorb the full postal increase, they would have experienced an operatipg loss of more than $59‐million,” he added. From the Magazine Publishers As sociation to the Direct Mail Advertising Association- which only last week filed suit to prevent the Postal Service from raising the third‐class bulk rate to 5 cents a unit-to the Asso ciated Third Class Mail Users, the protests have been long, loud and lingering.įor example, Edward Sha fer, vice president of Foster Associates, a consulting firm hired by the M.P.A., said that 42 leading magazines had a total operating profit of $32‐ million in 1970. Blount.Ĭorporations - individually and through their trade as sociations-that make exten sive use of the mails do not quite see it that way. “The increases represent a step to ward the goal of charging users of postal services in proportion to their use and reducing the burden of the general taxpayer,” according to Postmaster General Win ston M. The Postal Service wants a 142 per cent increase in second‐class mail for maga zines and newspapers over a five‐year period, a phased in rise of about one‐third for third‐class bulk mail and ad vertising matter and an even tual doubling of the rate of fourth‐class parcel post. Wen ner, who is expected to hand down an initial decision next month. About 100 “in tervenors” offered more than 12,000 pages of testimony and 250 exhibits in an ef fort to convince the hearing examiner, Seymour J. With a $1.45‐billion temporary post al rise now in effect and other permanent increases be ing proposed, such alterna tives are attracting still more companies.Įleven days ago, the Post al Rate Commission, a regu latory commission established under the same Postal Re organization Act of 1970 that created the United States Postal Service on July 1- completed 20 weeks of hear ings on the proposed perma nent rates. All of these cases indicate the extent to which business users of the mails turned to alternative methods as postal costs have increased.
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