Governors of the United States Postal Service v. United States Postal Rate Commission

654 F.2d 108, 210 U.S. App. D.C. 1
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 29, 1981
DocketNo. 80-1971
StatusPublished
Cited by3 cases

This text of 654 F.2d 108 (Governors of the United States Postal Service v. United States Postal Rate Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Governors of the United States Postal Service v. United States Postal Rate Commission, 654 F.2d 108, 210 U.S. App. D.C. 1 (D.C. Cir. 1981).

Opinions

[2]*2Opinion for the Court filed by Circuit Judge ROBB.

Dissenting opinion filed by Circuit Judge J. SKELLY WRIGHT.

ROBB, Circuit Judge:

In this case we must resolve a dispute between two governmental agencies, the United States Postal Service and the Postal Rate Commission. Both these agencies have responsibilities under the Postal Reorganization Act, Pub.L. 91-375, 84 Stat. 719 (1970), codified at 39 U.S.C. § 101 et seq. (1976). Pursuant to that statute the Postal Service submitted to the Rate Commission a mail classification proposal to add to the Domestic Mail Classification Schedule a new “electronic mail” service known as “E— COM”, an acronym for Electronic Computer Originated Mail. After the hearing required by sections 3623 and 3624 of the Act, 39 U.S.C. §§ 3623, 3624, the Commission transmitted to the Governors a decision recommending that the E-COM service be designated as “experimental” with a fixed terminal date. The Board of Governors contends on this appeal that the Commission has no authority to make such a recommendation. We hold that the Board is right.

By passing the Postal Reorganization Act in 1970 Congress abolished the old Post Office Department and created in its place the United States Postal Service and the Postal Rate Commission. One of the principal reasons for this sweeping revision of the postal establishment was inadequate or diffused management authority in the Post Office.

In 1970 postal management was beset with the problem of inadequate authority to perform the task of delivering the mail. For example, the practices and procedures of local post offices were often dictated by antiquated statutes and rules. Report of the President’s Commission on Postal Organization, Towards Postal Excellence 18, 34 (1968) (President’s Commission Report). Postmasters and other postal employees were often selected because of political loyalty rather than merit, id. at 40 — 41. The decision to build a postal facility was made by Congress, id. at 145. See H.R.Rep.No. 91-1104, 91st Cong. 2d Sess. 5 (1970), U.S. Code Cong. & Admin.News 1970, p. 3649. Management decisions were shared by eight different governmental agencies, dividing up finance, transportation, and other functions. See Note, The Postal Reorganization Act: A Case Study of Regulated Industry Reform, 58 Va.L.Rev. 1030, 1032 (1972). In short, postal managers were given broad duties but their powers were insufficient to enable them to fulfill those duties. See President’s Commission Report, supra at 33-34, 43 — 46; H.R.Rep.No.91-1104, supra, at 5.

The Postal Reorganization Act of 1970, an outgrowth of the President’s Commission Report, was designed to free postal management from entangling red tape and to concentrate management authority so as to provide an efficient and economical postal system. See H.R.Rep.No.91 — 1104, supra, at 5-6; S.Rep. 91-912, 91st Cong., 2d Sess. 2, 4-5 (1970). To accomplish these purposes the Postal Service was established and charged with the duty to “plan, develop, promote, and provide adequate and efficient postal services at fair and reasonable rates and fees.” 39 U.S.C. § 403(a). Among other powers the Postal Service was given the power “to adopt, amend, and repeal such rules and regulations as it deems necessary to accomplish the objectives of this title”; to enter into and perform contracts; to acquire personal or real property; to construct, operate, lease, and maintain buildings and facilities; and to determine the need for post offices, and postal and training facilities. 39 U.S.C. § 401(3), (5), (6); § 404(a)(3).

The Postal Service is governed by an eleven-member Board of Governors, nine of whom are appointed by the President. 39 U.S.C. § 202(a). One of the two remaining members, the Postmaster General, is appointed by the nine governors. 39 U.S.C. § 202(c). The eleventh member, the Deputy Postmaster General, is appointed by the nine governors and the Postmaster General. 39 U.S.C. § 202(d). The Governors oversee the Postal Service as it plans, develops, [3]*3promotes, and provides mail service throughout the United States. 39 U.S.C. §§ 202(d), 403(a).

The Postal Rate Commission was created as an independent establishment and charged with the duty of making recommendations to the Governors of the Postal Service with respect to rate, fee and classification matters. 39 U.S.C. §§ 3601, 3622, 3623 and 3624.

The Commission is composed of five commissioners appointed by the President. 39 U.S.C. § 3601. It is empowered, upon request from the Postal Service, to submit to the Service a recommended decision on changes in rates or fees. 39 U.S.C. § 3622. Upon such a request or on its own initiative, the Commission may submit a recommended decision on changes in the mail classification schedule. 39 U.S.C. § 3623(b).

In considering Postal Service requests for recommended decisions on rates, fees, and classifications under sections 3622 or 3623 the Commission is required to‘accord to the Postal Service, users of the mails, and an officer of the Commission representing the public, an opportunity for a hearing under 5 U.S.C. §§ 556-57. 39 U.S.C. § 3624(a), (b). The recommended decision which the Commission submits must address specifically the statutory criteria established under 39 U.S.C. § 3622 or § 3623. 39 U.S.C. § 3624(d).

Upon receiving a recommended decision of the Commission the Governors have several options. They may approve the Commission’s recommendation and order it to take effect, 39 U.S.C. § 3625(b), or reject the decision and return it to the Commission for reconsideration. 39 U.S.C.

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Related

Newsweek, Inc. v. United States Postal Service
663 F.2d 1186 (Second Circuit, 1981)
Newsweek, Inc., Time Incorporated, Magazine Publishers Association, Inc., Council of Public Utility Mailers, Reader's Digest Association, Inc., and United Parcel Service of America, Inc. v. United States Postal Service, Warshawsky & Company, American Business Press, Inc., Dow Jones & Company, Inc., International Labor Press Association, Afl-Cio/clc, Parcel Shippers Association, Direct Mail/marketing Association, Inc., March of Dimes, Mail Order Association of America, Association of American Publishers, Inc., Recording Industry Assoc. Of America, Inc., National Association of Greeting Card Publishers, Magazine Publishers Association, Inc., Classroom Publishers Association, American Lung Association, National Easter Seal Society, St. Jude Children's Research Hospital, American Cancer Society, and National Wildlife Federation, Intervenors. Council of Public Utility Mailers v. United States Postal Service, Newsweek, Inc., Dow Jones & Company, Inc., Time Incorporated, Association of American Publishers, Inc., Recording Industry Assoc. Of America, Inc., Parcel Shippers Association, Reader's Digest Association, Inc., Mail Order Association of America, United Parcel Service of America, Inc., National Association of Greeting Card Publishers, International Labor Press Association, Afl-Cio/clc, Direct Mail/marketing Association, Inc., Warshawsky & Company, Magazine Publishers Association, Inc., Classroom Publishers Association, American Business Press, Inc., American Lung Association, National Easter Seal Society, St. Jude Children's Research Hospital, American Cancer Society, National Wildlife Federation, Intervenors
663 F.2d 1186 (Second Circuit, 1981)

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654 F.2d 108, 210 U.S. App. D.C. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/governors-of-the-united-states-postal-service-v-united-states-postal-rate-cadc-1981.