Postal Rate Making Procedure

The subcommittee met, pursuant to call, at 10:06 a. m., in room 215, Old House Office Building, Hon. Katharine St. George presiding. Present: Representatives St. George (presiding), Jones, Miller, Murray, Rees, and Battle.

Also present: Frederick C. Belen, counsel for the Committee on Post Office and Civil Service.

To consider postal rate-making procedures (H. R. 4953) which is as follows:

[H. R. 4953, 80th Cong., 2d sess.]

A BILL To create the Board of Postal Rates and Fees in the Post Office Department Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Congress hereby finds and declares (1) that the postal-rate structure should be adjusted from time to time in order that the revenues of the Post Office Department will, insofar as possible, be not less than the expenditures (less the cost of handling penalty, franked, and Government registered mail) of such Department; and (2) that such adjustments should be attained through periodic and comprehensive surveys of the postal-rate structure by an agency in the Post Office Department charged with the duty of recommending to the Congress changes in the postal-rate structure based upon findings of such agency in the light of such surveys.

SEC. 2. For the purposes of this Act

(a) The term "Board" means the Board of Postal Rates and Fees provided for in section 3;

(b) The term "changes, adjustments, or modifications in the postal-rate structure" includes changes, adjustments, or modifications with respect to (1) postal rates and fees, (2) classification of mail matter, (3) weight limits, (4) zones, and (5) all other conditions of mailability.

SEC. 3. (a) There is hereby created an agency in the Post Office Department to be known as the "Board of Postal Rates and Fees" to be composed of three members appointed by the President, by and with the advice and consent of the Senate. No individual shall be appointed as a member unless he is a citizen of the United States. Not more than two of the members of the Board shall be members of the same political party. The President shall designate a member as Chairman of the Board.

(b) The term of office of each member shall be six years, except that (1) the terms of office of the members first taking office shall expire, as designated by the President at the time of appointment, one at the end of two years, one at the end of four years, and one at the end of six years, after the date of enactment of this Act; (2) any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term; and (3) upon the expiration of his term of office a member shall continue to serve until his successor is appointed and has qualified.

(c) Each member of the Board shall receive compensation at the rate of $10,000 per annum. No member shall engage in any business, vocation, or employment other than that of serving as a member.

(d) Any member of the Board may be removed by the President for inefficiency, neglect of duty, or malfeasance in office and for no other cause.

(e) The principal office of the Board shall be in the District of Columbia, but the Board may exercise its powers and functions at any place in the United States, or in any Territory or possession of the United States, or in the Canal Zone. The Board shall have an official seal which shall be judicially noticed and which shall be preserved in the custody of the secretary of the Board.

(f) No finding or proposal of the Board with respect to changes, adjustments, or modifications in the postal-rate structure shall be made except after the concurrence of at least two members of the Board.

SEC. 4. The Board shall, without regard to the civil-service laws, appoint and prescribe the duties of a secretary, and subject to such laws, appoint such other officers and employees as it shall deem necessary in exercising and performing its powers and duties. The compensation of all officers and employees appointed under this section shall be fixed in accordance with the Classification Act of 1923, as amended.

SEC. 5. (a) The Board shall hold hearings and conduct investigations and studies, from time to time, in order to determine whether changes, adjustments, or modifications in the postal-rate structure are necessary or advisable, taking into account the efficient and economical operation of the Post Office Department, the needs of the postal service, and the public interest. The Board shall afford any person, on his own behalf or as the representative of another person or of a corporation, association, or organization, the opportunities to appear and be heard at any hearing held under this subsection.

(b) The Board shall submit to the Congress, through the Postmaster General, on January 3 of each calendar year, an annual report, copies of which shall be distributed in the same manner as other reports submitted to the Congress. Such report shall contain (1) a statement of the work of the Board during the preceding calendar year with respect to its hearings, investigations, and studies under subsection (a); (2) the findings of the Board with respect to the necessity or advisability of making changes, adjustments, or modifications in the postal-rate structure; and (3) proposals of the Board (prepared with due regard for the legislative forms and procedures of the Congress) for such changes, adjustments, or modifications, or if no such changes, adjustments, or modifications are proposed by the Board, a statement to that effect.

(c) If, in the case of any proposal for a change, adjustment, or modification in the postal-rate structure submitted by the Board to the Congress on January 3 of any calendar year under subsection (b), the Congress does not, prior to April 1 of such year, pass a concurrent resolution stating that it does not favor such change, adjustment, or modification, the proposal shall forthwith be submitted to the President and shall become effective on July 1 of such year if not disapproved by him within ten days (Sundays excepted) after it shall have been presented to him.

SEC. 6. (a) The provisions of this section are enacted by the Congress

(1) as an exercise of the rule-making power of the Senate and the House of Representatives, respectively, and as such they shall be considered as part of the rules of each House, respectively, and such rules shall supersede other rules only to the extent that they are inconsistent therewith; and

(2) with full recognition of the constitutional right of either House to change such rules (so far as relating to the procedure in such House) at any time, in the same manner and to the same extent as in the case of any other rule of such House.

(b) As used in this section, the term "resolution" means only a concurrent resolution of the two Houses of Congress which states in substance that the Congress does not favor such proposal of the Board for a change, adjustment, or modification in the postal-rate structure.

(c) A resolution shall be referred to the Committee on Civil Service of the Senate or the Committee on Post Office and Civil Service of the House of Representatives, as the case may be, and may be reported at any time.

(d) (1) When a resolution has been reported, it shall at any time thereafter be in order (even though a previous motion to the same effect has been disagreed to) move to proceed to the consideration of such resolution. Such motion shall be highly privileged and shall not be debatable. No amendment to such

motion shall be in order and it shall not be in order to move to reconsider the vote by which such motion is agreed to or disagreed to.

(2) Debate on the resolution shall be limited to not to exceed four hours, which shall be equally divided between those favoring and those opposing the resolution. A motion further to limit debate shall not be debatable. No amendment to, or motion to recommit, the resolution shall be in order, and it shall not be in order to move to reconsider the vote by which the resolution is agreed to or disagreed to.

(3) All motions to postpone consideration of a resolution, and all motions to proceed to the consideration of other business, shall be decided without debate. (4) All appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to a resolution shall be decided without debate.

SEC. 7. (a) For the purposes of this Act, the Board may require by subpena the attendance and testimony of such witnesses and the production of such books, records, correspondence, memoranda, papers, and documents, as it deems necessary. Any member may administer oaths or affirmations to witnesses appearing before the Board. Subpenas may be issued under the signature of the Chairman of the Board or any member designated by him, and may be served by any individual designated by such chairman or member.

(b) Such attendance of witnesses at any designated place of hearing, and the production of books, records, correspondence, memoranda, papers, and documents at any designated place of hearing, may be required from any place in the United States. Witnesses summoned under this section shall be paid the same fees and mileage as are paid witnesses in the district courts of the United States.

(c) In case of contumacy by, or refusal to obey a subpena issued to, any person, the Board may invoke the aid of any court of the United States within the jurisdiction of which the investigation or proceeding is being conducted, or where such person resides or carries on business. Such court may issue an order requiring such person to appear before the Board, there to give or produce testimony or books, records, correspondence, memoranda, papers, or documents, bearing upon the matter under investigation or in question; and any failure to obey such order of the court may be punished by such court as a contempt thereof. All process in any such case may be served in the judicial district whereof such person is an inhabitant or wherever such person may be found.

(d) Any person who without just cause fails or refuses to attend and testify or to answer any inquiry or to produce books, records, correspondence, memoranda, papers, or documents, in obedience to a subpena of the Board, shall, upon conviction thereof, be punished by a fine of not more than $1,000, or by imprisonment for not more than one year, or by both such fine and imprisonment.

SEC. 8. The last paragraph of section 207 (b) of the Act of February 28, 1925, as amended (U. S. C., 1940 edition, title 39, sec. 247), is hereby repealed.

Mrs. ST. GEORGE. We come to order very promptly this morning because we have the pleasure of having the Postmaster General with us. We are very glad he is here. We have also heard that he is to be sworn in this morning at 11 o'clock. We therefore do not want to detain him longer than is necessary, so we will start right in, and the other members will come a little later on.

Now, the Post Office and Civil Service Committee was authorized and directed by House Resolution 176 to make a study and survey of the postal service to determine whether such service was being operated in the most efficient and economical manner possible. The committee, in carrying out this study, is examining the many procedures of the postal service to determine whether they are effective, and as a part of this examination Chairman Rees appointed this subcommittee to consider the procedures for establishing postal rates. I want to state this is a matter of establishing procedures and nothing else.

I would like at this time to introduce the other members of this subcommittee: Mr. Homer Jones of the State of Washington; Mr.

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