[Senate Hearing 106-480]
[From the U.S. Government Publishing Office]
S. Hrg. 106-480
ANNUAL REPORT OF THE POSTMASTER GENERAL
=======================================================================
HEARING
before the
INTERNATIONAL SECURITY, PROLIFERATION, AND FEDERAL SERVICES
SUBCOMMITTEE
of the
COMMITTEE ON
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
ONE HUNDRED SIXTH CONGRESS
FIRST SESSION
__________
SEPTEMBER 16, 1999
__________
Printed for the use of the Committee on Governmental Affairs
U.S. GOVERNMENT PRINTING OFFICE
61-702cc WASHINGTON : 2000
______________________________________________________________________
For sale by the Superintendent of Documents, Congressional Sales Office
U.S. Government Printing Office, Washington, DC 20402
COMMITTEE ON GOVERNMENTAL AFFAIRS
FRED THOMPSON, Tennessee, Chairman
WILLIAM V. ROTH, Jr., Delaware JOSEPH I. LIEBERMAN, Connecticut
TED STEVENS, Alaska CARL LEVIN, Michigan
SUSAN M. COLLINS, Maine DANIEL K. AKAKA, Hawaii
GEORGE V. VOINOVICH, Ohio RICHARD J. DURBIN, Illinois
PETE V. DOMENICI, New Mexico ROBERT G. TORRICELLI, New Jersey
THAD COCHRAN, Mississippi MAX CLELAND, Georgia
ARLEN SPECTER, Pennsylvania JOHN EDWARDS, North Carolina
JUDD GREGG, New Hampshire
Hannah S. Sistare, Staff Director and Counsel
Joyce A. Rechtschaffen, Minority Staff Director and Counsel
Darla D. Cassell, Administrive Clerk
------
INTERNATIONAL SECURITY, PROLIFERATION, AND FEDERAL SERVICES
SUBCOMMITTEE
THAD COCHRAN, Mississippi, Chairman
TED STEVENS, Alaska DANIEL K. AKAKA, Hawaii
SUSAN M. COLLINS, Maine CARL LEVIN, Michigan
PETE V. DOMENICI, New Mexico ROBERT G. TORRICELLI, New Jersey
ARLEN SPECTER, Pennsylvania MAX CLELAND, Georgia
JUDD GREGG, New Hampshire JOHN EDWARDS, North Carolina
Mitchel B. Kugler, Staff Director
Richard J. Kessler, Minority Staff Director
Julie A. Sander, Chief Clerk
C O N T E N T S
------
Opening statements:
Page
Senator Cochran.............................................. 1
Senator Stevens.............................................. 2
Senator Akaka................................................ 3
Senator Domenici............................................. 9
Senator Levin................................................ 11
WITNESSES
Thursday, September 16, 1999
William J. Henderson, Postmaster General, U.S. Postal Service
Testimony.................................................... 4
Prepared statement........................................... 5
APPENDIX
Letter from William J. Henderson, to Senator Levin, dated June
15, 1999....................................................... 13
Brochure entitled ``The First Green Post Office,'' Fort Worth,
Texas.......................................................... 21
Letter from William J. Henderson, to Senator Domenici, dated
October 26, 1999............................................... 23
The information entitled ``Domestic Mail Manual,'' section E670
supplied for the record........................................ 24
Questions and responses for Mr. Henderson from:
Senator Akaka................................................ 34
Senator Collins.............................................. 36
Senator Lieberman............................................ 37
Senator Cleland.............................................. 38
ANNUAL REPORT OF THE POSTMASTER GENERAL
----------
THURSDAY, SEPTEMBER 16, 1999
U.S. Senate
Subcommittee on International Security,
Proliferation, and Federal Services,
of the Committee on Governmental Affairs,
Washington, DC.
The Subcommittee met, pursuant to notice, at 2:05 p.m. in
room 628, Senate Dirksen Building, Hon. Thad Cochran (Chairman
of the Subcommittee) presiding.
Present: Senators Cochran, Akaka, Levin, Stevens, and
Domenici.
OPENING STATEMENT OF SENATOR COCHRAN
Senator Cochran. The Subcommittee will please come to
order.
I was apologizing to the Postmaster General on the
condition of the weather outside. As a matter of fact, this
morning, as I was preparing to come in to the Capitol, I
thought about the inscription that is supposedly written on the
General Post Office in the City of New York, and I couldn't
remember it exactly. Neither could my wife, so we spent a
little time doing some research.
For the general edification of those here, the quote is as
follows: ``Neither snow, nor rain, nor heat, nor gloom of night
stays these couriers from the swift completion of their
appointed rounds.''
We further investigated the source of that, and it is
Herodotus' history, volume number 8, and he is referring to the
couriers of Xerxes. And for those of you who want to know who
or what Xerxes might be, he was King or Emperor of Persia.
Now that we are all well grounded---- [Laughter.]
In the subject of today's hearing, I want to welcome the
distinguished Postmaster General of the United States, who is
here today to deliver his annual report to the Congress.
When the Postal Reorganization Act of 1970 was passed, we
converted, by that act, the Post Office Department from a
Federal Government department, depending upon substantial
subsidies from U.S. taxpayers, to an independently-managed U.S.
Postal Service. Since that time it has become a very large and
modern enterprise, with almost 800,000 employees and more than
$60 billion in annual revenues.
In May of last year, William J. Henderson was appointed to
serve as U.S. Postmaster General, having served several years
as the agency's Chief Operating Officer.
With the rapid development of technology, the question of
what role the Postal Service will play in e-commerce has become
the topic of much discussion within the Postal Service and the
postal community. The Postal Service recently introduced a new
website to assist businesses using Priority Mail to ship
products ordered over the Internet, and last month the Postal
Service introduced a new product called ``PC Postage'' which
allows customers to print digital stamps from their personal
computers.
It will be interesting to hear the Postmaster General bring
us up to date on these and other developments in the Postal
Service.
We welcome you, Mr. Postmaster General, and we look forward
to your report.
Before hearing your report, I am going to yield now to our
distinguished colleagues on the panel--first, if the
distinguished Senator from Hawaii will permit me, to Senator
Stevens, who is chairing the Appropriations Committee in a
markup that meets in 10 minutes, for whatever comments he would
make, and then to our distinguished Ranking Minority Member,
Senator Akaka.
Senator Stevens.
OPENING STATEMENT OF SENATOR STEVENS
Senator Stevens. Thank you very much, Mr. Chairman. Thank
you, Senator Akaka.
Mr. Postmaster General, I have just told my colleagues that
I think this is the 31st year that I have listened to this
report, and it will be the first time that I will have left it
before it is completed. I am sorry that we do have this
conflict with the Appropriations Committee and the VA/HUD bill,
which we have to get to this afternoon.
I ask unanimous consent that my statement appear in the
record in full.
Senator Cochran. Without objection, so ordered.
[The prepared statement of Senator Stevens follows:]
PREPARED STATEMENT OF SENATOR STEVENS
Thank you Postmaster General Henderson for appearing before this
Subcommittee today and for your comments about the progress of the
Postal Service. I also want to thank you publicly for visiting Alaska
this past March for the dedication of the Arctic Animal Stamps. I often
say that our true friends are the ones who come to Alaska in the winter
months.
The Postal Service is the lifeline of Alaska--many of my colleagues
who have visited my home State witnessed this first-hand. The bypass
mail system delivers food and other personal items at a fraction of the
cost of regular freight. There are many remote areas who do not yet
have access to the Internet and their television and radio reception is
very limited. For the residents of those areas, the U.S. Mail is the
most reliable form of communication.
I commend you for the Postal Service's recent arrangement in Alaska
for the new fuel cell system at the Anchorage Mail Processing Center.
As you know, the new fuel cell will be the primary source of power for
the Anchorage facility--producing one megawatt of electricity--while
producing virtually no pollution. This power system not only ensures
the continued success of the Postal Service in Alaska, but it
represents a form of power that could revolutionize cost-effective
electricity throughout America.
Congratulations on your fifth straight fiscal year of positive net
income and for your achievements in high delivery rates. However, I am
concerned that while the Postal Service modernizes and improves the
traditional mail system, it could miss out or fall behind in the e-
revolution. I note your recent projections that increased use of the
Internet for business traditionally done through the mail could cost
you nearly $17 billion. I urge the Postal Service, through your
leadership and direction, to fully embrace e-commerce and all of its
capabilities so that the Postal Service remains strong in the new
millennium. I note that the Postal Service has partially embraced e-
commerce by allowing private companies to develop and sell postage over
the Internet. I am eager to see the results of this technology as
information is made available.
Last, I sit on the Special Committee on the Y2K problem and we
receive regular reports on the progress of vital services with respect
to the Y2K bug. You may recall that I asked you last year about the
Postal Service's efforts in fixing this problem and would like to hear
about your progress over the past year.
Thank you again for appearing today and for all that the Postal
Service does in Alaska and throughout the United States.
Senator Stevens. I think everyone should realize that this
is the fifth straight fiscal year of positive income for the
Postal Service, and on your watch it has gone up, so I
congratulate you.
I will tell you, Mr. Chairman, and I often tell others,
about the time Postmaster Bolger came to Alaska with me; he
wanted to see what the winters were like, and I took him up to
Prudhoe Bay. As he got off the plane, we had the bus right
there so that he could get right on the bus, and we went over
to the postal substation, which is what I think we had there at
the time. As we opened up the door, there was a digital
thermometer there, and it said minus 99. [Laughter.]
I never had the heart to tell him that that was as far down
as it would go. [Laughter.]
It was a wind chill factor thermometer, and the wind chill
was lower than 100 below. And that Post Office was open; that's
my point. The Post Office does keep up with and match that
motto today, and I think Mr. Henderson is an excellent example
of a person who is really managing this Postal Service of ours
very well.
You have some tremendous challenges now, with the Internet
and the whole concept of the global economy, but I am proud to
say that I think the Postal Service is staying ahead of the
curve.
So thank you very much, and I look forward to reading your
report, Bill.
Senator Cochran. Thank you very much, Senator Stevens.
Senator Akaka.
OPENING STATEMENT OF SENATOR AKAKA
Senator Akaka. Thank you very much, Mr. Chairman. I am
pleased to join you in welcoming Postmaster General Henderson
to our hearing. I met with Mr. Henderson earlier this year and
came away from that discussion with a renewed appreciation of
the U.S. Postal Service--not only for its accomplishments, but
for the challenges it faces in the future.
We cannot escape the many news reports and articles on
today's rapidly changing business climate. Not only has the
Internet opened up a global marketplace for American products,
but it has also created a growing need to deliver the packages
generated by e-commerce. I know the Postal Service is
thoroughly analyzing all aspects of its operations and
management in order to remain a key player in this arena.
Competing delivery systems, domestic and international, have
also resulted in the review of products.
I understand that the need to develop new revenue sources
while maintaining increased service levels is one of the
reasons that the Postal Service supports the McHugh postal
reform bill. Should postal reform legislation be referred to
the Senate, I hope our Subcommittee will have ample opportunity
to review these issues.
On a more personal note, I would also like to express my
continued strong support for a U.S. postage stamp to honor Duke
Kahanamoku, a five-time Olympic medal winner, the father of
modern surfing, and Hawaii's best-known citizen. Although Duke
Kahanamoku passed away in 1968, his spirit continues to embody
all Hawaii, and even part of the mainland. And I will tell you
that if Senator Stevens were here he would certainly support
me, because he is an avid surfer. [Laughter.]
A commemorative stamp celebrating the life of one of my
State's most respected citizens will be welcomed not only by
the people of Hawaii, but by sports enthusiasts worldwide. I
supported this effort for a long time, and I appreciate knowing
that a proposed stamp is under serious consideration by the
Citizen Stamp Advisory Committee.
The time has come to honor the Duke, who holds a place
unequal to any other person in surfing history, and whose
Olympic skills are legend in Hawaii and in our country.
Like Senator Cochran, I look forward, Mr. Postmaster
General, to your testimony, and your presence here is certainly
welcome.
Senator Cochran. Postmaster General Henderson, you may
proceed.
STATEMENT OF HON. WILLIAM J. HENDERSON, POSTMASTER GENERAL,
U.S. POSTAL SERVICE
Mr. Henderson. Thank you, Mr. Chairman. Rather than read my
testimony back to you--I know you have already reviewed it--I
will just touch some of the highlights from a personal
perspective about the Postal Service.
First let me thank you for sponsoring the Senate Resolution
designating October as Stamp Collecting Month. That is a great
hobby; it's a great family hobby, one of the largest hobbies in
the world, and it does give national recognition to something
that is very important. And as a result of your action, there
have been resolutions passed all across this great Nation
supporting stamp collecting, so I thank you for that.
The bottom line, the U.S. Postal Service is concluding
another excellent year. We will have a net income this fiscal
year, as we predicted, in spite of the fact that our revenues
fell about $700 million short of what we had planned. The
revenue shortfall is, in essence, the result of, one,
aggressive planning; and two, the impact of the sweepstakes
issue on the country, the fact that people stopped responding
to sweepstakes for a period of time, and that impacted our
volume. Also, the rate increase has some impact on our volume.
But in spite of that $700 million, we are still going to reach
our predicted net income.
The most interesting aspect about being in the Postal
Service today is not only the competition it receives, but also
the effect of the Internet and how that is changing the
marketplace very rapidly. The Internet seems to be knocking
profits out of commodities at a very rapid pace; therefore,
when people look for shippers, they look for low-cost, high-
quality shippers. And if you buy a CD from AMAZON.COM for $6,
you're not going to pay $7 to have it delivered. So the Postal
Service has benefited from its high quality and is taking
advantage of the Internet, and I think it will prosper as long
as it maintains low costs and high quality.
So we see a bright future for our organization, and we
continue to be very aggressive in the marketplace, making sure
that Americans have the kind of choice that the U.S. Postal
Service represents, and that is high quality and low cost.
Thank you, Mr. Chairman.
[The prepared statement of Mr. Henderson follows:]
PREPARED STATEMENT OF MR. HENDERSON
Mr. Chairman and Members of the Subcommittee, I welcome the
opportunity to discuss the U.S. Postal Service with you today. I
appreciate the time and energy you invest in oversight and helping us
fulfill our mission to bind our Nation together by delivering to
everyone, everywhere, every day.
Today, I want to talk with you about the performance of the Postal
Service as we near the end of this century and our plans as we look
forward to the next.
In 1999, the Postal Service has put the finishing touches on what
has been a decade of progress.
When the decade opened, the Postal Service had just begun
independently measuring First-Class Mail service performance in
metropolitan areas. By 1992, when the first overnight results were
announced, only two out of 86 locations broke 90 percent and the
national score was just a notch above 84 percent.
Today, even though we have expanded our measurements to represent
more than 80 percent of our First-Class delivery volumes, every single
location in the contiguous United States is at 91 percent or better for
local mail service. The national average stands at 94 percent or better
for local mail service. The national average stands at 94 percent,
tying our record high. Service for First-Class Mail with 2- and 3-day
commitments is also our best ever.
When the decade began, we used to enter each holiday mailing
season, our busiest time of the year, with only the most basic of
preparations.
Today, we start the season with integrated, focused fall and
holiday plans that we begin developing shortly after the last season
has ended.
We now gather information on customer mailings well in advance, so
that we have proper staffing and equipment on hand at our processing
facilities. We have a national operations center to keep track of
weather conditions, respond to customer concerns, and prevent
bottlenecks in our system. We open additional transportation hubs and
use dedicated air transportation to speed delivery of holiday gifts.
This season, new automated technologies will help us process record
holiday volumes more efficiently than ever by reading and barcoding
more than half of America's handwritten greeting cards.
At the start of the 1990's, the Postal Service had also requested a
5-cent increase in stamp prices, and customers were voicing concerns
about price hikes that were consistently above the rate of inflation in
the economy.
This January, we implemented our second straight increase below
inflation. The rate change was our lowest ever, just a penny more for a
First-Class stamp and 2.9 percent overall.
When the decade began, the Postal Service was routinely bleeding
red ink and had rarely posted surpluses in consecutive years.
In 1999, even though we imposed a daunting management challenge
upon ourselves by delaying our smallest ever rate increase by 7 months,
we will end this fiscal year with our fifth straight positive net
income, which has helped us significantly reduce prior negative equity.
And we mastered the challenge of reducing costs by about $700 million
without eroding service performance. We are confident that we will
continue that success in FY 2000, even though we will not raise rates
as we had originally planned. By delaying the implementation of the
rates and deferring our rate filing by a year, we in essence gave the
American mailers a dividend of more than $2 billion.
When the 1990's got underway, the automated processing of letter
mail was in its infancy and just a fraction of letter mail was
barcoded.
Today, after $5 billion worth of investments, more than 88 percent
of all letter mail currently carries a barcode, and 85 percent of our
city carriers are receiving 60 percent of their mail sorted in delivery
order each day. Robotics, sophisticated handling and transport systems,
and even automation for flats are being introduced into postal plants.
Within the next several years, fully automated processing facilities
and a computer-driven information platform will revolutionize the way
we manage the mail and create an information-rich mail stream that will
give postal managers and customers alike real-time performance
information.
When the decade began, the Postal Service lacked a coordinated
method of managing its entire operations. Today, we rely upon a
Baldrige-based performance system to drive consistent improvement by
focusing the energies and resources of this vast organization on common
goals and targets.
The Postal Service is heading into the next century with the best
performance, planning, technology, and management systems in our
history. As always, we owe that success to the extraordinary effort of
our managers, postmasters, supervisors, and craft employees.
At the same time, though, we enter the new millennium knowing full
well that the most significant challenges in our history await us.
Tomorrow's marketplace will offer Americans more powerful and
plentiful communications choices than ever before.
Private delivery carriers, already industry heavyweights, will
continue their aggressive efforts to dominate their respective markets.
Newly privatized and deregulated foreign posts, hungry for
revenues, will not only offer an increasing range of international
services to American customers, but are also likely to begin creating
delivery networks right here on U.S. soil.
The revolution in electronic communications may not be proceeding
as fast as some have predicted, but no one questions its momentum.
Today, nearly half of America's homes own a computer. More than a third
have access to the Internet.
Already, powerful forces in the banking, telecommunications, and
computer industries are scrambling to create networks for e-payments.
As the speed, security, and convenience of these networks increase--and
more and more consumers grow comfortable with logging on to pay their
bills--these efforts will reach critical mass. The eventual result
could be the erosion of our total revenues. We believe nearly $17
billion is at risk.
The Postal Service cannot predict precisely when or to what extent
these and other competitive pressures will take their toll on our
bottom line in the coming century. But our extensive market research
suggests that First-Class Mail volumes may actually decline over the
next 5 years, although we will continue to work on increasing the value
of that mail by keeping costs low and quality high.
But losing First-Class Mail is a real possibility--this factor,
along with the rising costs associated with maintaining a national
infrastructure of 38,000 facilities and a delivery network that grows
by a million steps a year--means we can't sit still. We have to tap
into new revenue streams as old ones begin to taper off if we expect to
maintain affordable prices and continue our investments in better
service.
That is why we have been so vocal over the past few years in
calling for postal reform, and why we have worked closely with John
McHugh in the House to develop a fair, meaningful reform bill. The
legislation includes some tradeoffs, but on balance, we believe it
provides pricing and product flexibilities we need to stay relevant and
attractive to our customers.
That is also why--in addition to our many efforts to improve the
value of the mail for our customers--we are already exploring ideas and
developing innovative strategies for the future.
We believe, in fact, that we have a responsibility to the American
people to ensure a healthy and meaningful postal system in the next
century. What's at stake is not just the continuation of perhaps the
most visible and personal of all Federal services, but the endurance of
a delivery system that touches every American, helps bridge our vast
distances and differences, and binds our Nation together.
The mail is an experience that we all share, and it is a powerful
one. Most of us look forward to getting our mail each day. There are
magazines and catalogs to browse. There are birthday presents and post
cards from friends on vacation. There are bills, coupons, and offers
galore.
Going to the mailbox is such a pervasive habit that one of the
leading Internet companies has helped build their business on the
slogan, ``You've got mail.''
Mail is a unique moment in our day, a moment at the mailbox, one
that is happening in every home, in every community, every day.
In many ways, the mail has become the gateway to the household, a
channel for commerce and communication that connects families and
friends, governments and citizens, businesses and customers, publishers
and readers, charities and sponsors.
Maintaining that connection in the next century, we believe, may
well hinge on our ability to blend the trust, security, and ubiquity of
hardcopy mail with the speed and capabilities of the electronic world.
Our strategies are just beginning to take shape, and our role vis-
a-vis the private sector will have to be defined in concert with all of
you and our many stakeholders and customers. Already, though, we see
several areas of opportunity.
We will build on our strong Internet presence. Our public homepage
is the most heavily trafficked government site, receiving about 3
million ``hits'' each month. Customers use this site to find ZIP Codes,
calculate rates, buy stamps, track packages, and get other key postal
information. We intend to use the speed and access of the Internet to
offer customers information about their mail and access to our products
and services.
As on-line purchases continue to explode, both businesses and
consumers want prompt, reliable delivery, and easy access to a carrier
who can handle returns. We want to be the carrier of choice for
merchandise purchased on the Internet and the inevitable returns that
result. We already have a universal business and residential presence.
We are low-priced and we don't impose surcharges. Our carriers visit
every address, everywhere, 6 days a week.
So, despite many challenges, the Postal Service sees the 21st
Century as a great opportunity to build on our legacy of service to our
Nation. During this past decade, we have worked hard to combine the
efficiency and customer focus of private sector organizations with the
public service focus of government. We look forward to working with
this Subcommittee to assure that the American people can continue to
rely on the Postal Service for high-quality, low-cost mail services.
Thank you, Mr. Chairman, that concludes my statement.
Senator Cochran. Thank you very much, Postmaster General.
You mentioned that you ended the year with a profit--a net
income balance. I wonder, do you intend to use this profit to
reduce the cost of postage?
Mr. Henderson. We will do that in real terms because we
extend the rate increase--the rate increase which was planned
to go in this year, or early in the year 2000, we are now
trying to postpone that rate increase until the year 2001. And
as you will recall, we also extended the rate increase from
June of last year; we didn't implement it until January. So we
are, in effect, giving back our net income, as much as we can,
to our customers.
Senator Cochran. These increases that you have planned for
the future are going to have some effect on mail volumes, won't
they? Will they negatively affect mail volumes? Will there be
other ramifications of future rate increases, as well?
Mr. Henderson. Well, rate increases generally negatively
affect volume, and customers are demanding more and more for
less. And so that puts huge pressure on the Postal Service to
both generate revenue and to control its costs, for which we
have massive efforts under way right now.
Senator Cochran. I know a lot of this is affected by the
rate of inflation. As prices and costs to the Postal Service go
up, those costs have to be passed on to mailers and the users
of the Postal Service. Some mailers, such as those who use the
mail for advertising, have expressed concern to me that their
rates may go up faster than inflation in this next round of
increases.
What's the outlook for price increases in the next rate
case, and what is the Postal Service doing to control its costs
and thereby reduce the need for large rate increases?
Mr. Henderson. Well, we've taken several billion dollars in
costs out of the organization. I think it is evident to our
customers that you can see that in both our monthly and our
quarterly expense reports.
We agree that it is imperative that we keep rates as low as
possible, and certainly, Standard A is very sensitive.
Advertising mail is very sensitive to rate increases. We
certainly are trying to keep the rate of increase as low as
possible.
Senator Cochran. In my opening comments I mentioned the
fact that there have been some obvious changes in technology
that have affected the future role of the Postal Service. For
example, as I understand it, there is a good deal of discussion
within the Postal Service about e-commerce and how to take
advantage of these new technologies to improve the way the
Postal Service provides its customers with what they want and
what they need.
You recently introduced a new website, for example, to
assist businesses using Priority Mail to ship products ordered
over the Internet, and last month you introduced a new product
called PC Postage which allows customers to print digital
stamps from their personal computers.
Could you tell us more about the specifics of this and how
it's being received in the marketplace?
Mr. Henderson. It is probably--short of a new Postmaster
General being announced, it's probably the most publicity we've
received over any one event in the 28 years I have been in the
Postal Service. It has been very well received. There are two
companies that went commercial August 9, STAMPS.COM and E-
STAMPS. They essentially provide postage off your PC. Each
postage imprint is unique, so it can't be counterfeited, and
it's just a way for us to create ease of use for our customers.
We're trying to use the Internet; it is a new channel, and
we're trying to make postal services available on that new
channel, and PC postage is one of the obvious ones. It should
eventually save us money, depending on how many customers adopt
it, but it has been received in the marketplace with real
enthusiasm.
There are two more companies coming behind E-STAMPS and
STAMPS.COM; that's Neopost, which is a French company, and
Pitney-Bowes, both of whom are in the developmental stages.
So we see a real proliferation of PC postage.
Senator Cochran. Senator Akaka.
Senator Akaka. Thank you, Mr. Chairman.
My question is along environmental issues. As a member of
both the Energy and Governmental Affairs Committees, I am
naturally interested in the lead that the Postal Service has
taken in its efforts to protect the environment.
I know the Postal Service has received numerous
environmental awards in recognition of its energy conservation,
pollution prevention, and recycling programs. The Postal
Service, as the Nation's largest civilian employer, is well
positioned to continue its role as a leader in alternative
energy and fuel use, and I applaud the Postal Service on its
leadership in this arena.
Could you describe some of the Postal Service's efforts in
conserving energy and the benefits that the Postal Service has
gained from its efforts?
Mr. Henderson. Well, the U.S. Postal Service has saved
millions of dollars in its very, very aggressive environmental
and conservation efforts. We use energy-efficient lights; we
have an active recycling program that saves millions of
dollars; and just last month, we ordered 500 electric vehicles.
I think we are the leader in that area. Also in alternate fuel
vehicles we are the leader.
So we are very proud of that program. At one point, when I
was the Chief Operating Officer, I told the then-Postmaster
General that the head of our environmental efforts got more
publicity than he did, because every time I turned around they
were giving our environmental program an award. Charlie Bravo
at that time was heading it up; Charlie has moved on to some
other things, but just for the record, he did an outstanding
job.
Senator Akaka. I was interested to hear about your new
``green'' postal facility in Fort Worth, Texas. Could you
provide more information on the new facility and whether there
are more ``green'' facilities in the works?
Mr. Henderson. Yes, I will. In fact, I went to the ribbon-
cutting in Fort Worth, Texas, at that facility, where we have
straw in the walls, and it has an R-factor of some phenomenally
high number for energy conservation. It is a one-of-a-kind, and
I will be happy to provide you all the background
information.\1\
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\1\ The brochure entitled ``The First Green Post Office,'' appears
in the Appendix on page 21.
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Senator Akaka. Recently the Postal Service implemented a
new system involving fuel cells for generating power at its
Anchorage mail processing and distribution facility. This
system is virtually pollution-free and requires little
maintenance. What are the expected benefits from this system?
And will this technology be expanded to other postal facilities
throughout the country?
Mr. Henderson. Yes, that is an experiment. The fuel cell is
much like a battery that generates energy and hot water from a
chemical reaction. It saves several thousand kilowatts over
traditional energy sources. It provides our plant and
distribution center with energy. If, for example, the grid went
down in Anchorage, our plant would still operate. The energy
which it generates beyond what is needed is turned back into
the Chugash Electric Grid, so it does help out the local
community. We are very interested in seeing how this operates
over a period of time.
Senator Akaka. From time to time I receive complaints from
residents in some of the rural areas of Hawaii expressing
dissatisfaction with the quality of postal service at contract
stations. What criteria is used to establish a contract
station, verses a U.S. Postal Service facility? And what
oversight exists once a contract station is set up?
Mr. Henderson. In Hawaii, as in other places, we have very
strict criteria, much similar to establishment of a Post
Office. In your case, Ed Broglio, who is the District Manager
in Hawaii, is directly responsible for that, and I will be
happy to relay those complaints to him, and I'm sure that he
will jump right on it.
Senator Akaka. Mr. Chairman, I have other questions, but I
will come back to them.
Senator Cochran. Thank you, Senator.
Senator Domenici.
OPENING STATEMENT OF SENATOR DOMENICI
Senator Domenici. Well, thank you very much, Mr. Chairman.
I have not had occasion to question you or meet with you
since you took your new job, and I want to commend you and
congratulate you. Obviously, the Postal Service is doing very
well. The revenues the Postal Service is generating mean that
the subsidies don't have to go up as they have in the past,
because you've been very innovative.
But I would like to say, in reading your statement, I think
you do analyze the problem in future years correctly. The only
thing is, I read in it that you said, ``Even if the new modes
of communication are not growing as rapidly as we thought''--
from what I read, they are growing more rapidly in some areas
than we ever imagined, and they are all more or less
competitors in some sense.
So I know you are very concerned about it from the
standpoint of getting a good analysis and seeing where the
Postal Service will stand under that kind of competition. But I
guess I would just like to ask you, what do you go through in
an effort to analyze just what will happen--whose brains are
you picking? And what kind of people are giving you advice as
to where things are going and whether first class mail, which
is your staple, will be what it is today 15 years from now in
terms of demand by Americans?
Mr. Henderson. Well, we talk to a cross-spectrum of people,
in addition to having our own market research folks. For
example, I meet with CEOs around the country, folks like Lou
Gershner at IBM, Jeff Bezos at AMAZON.COM; we pick their brains
about where--in Mr. Gershner's case, where technology is going,
and in Jeff Bezos' case, how he is going to use the Internet in
the future, what's he going to do with it.
The most vulnerable mail in the U.S. Postal Service are
bills and payments, which account for about $15 billion. But on
the other hand, as I mentioned in my opening statement, the
Postal Service is in a unique position for e-commerce, because
the Internet has squashed the profits out of products; and as
profits get squashed out, people look for low-cost delivery
outfits. I use the example that if you pay $6 for a CD at
AMAZON.COM, you're not going to pay $7 to have it delivered. I
mean, it just doesn't make any sense.
So we sit there at $3.25 with Priority Mail and a unique
package, and we become AMAZON.COM's shipper of choice because
of our price and our quality.
So there are pluses and minuses. Personally, I don't think
anybody has a handle on where all of this is going. I think it
changes so rapidly. And to the credit of this country, it is so
inventive and so innovative that the landscape almost changes
weekly, so that from Business Week to Time Magazine, you read a
new angle. So we grope with it as best we can, and we look for
every opportunity, whether it's PC Postage or being the shipper
of choice for packages. We're looking at it from every angle,
as everybody else is.
Senator Domenici. Well, I'm pleased that you are, and I
think it's very important.
Just one parochial issue. In my home State and home city of
Albuquerque, you have many facilities, but the main one is a
very old one, located on Broadway and Central Avenue. I have
heard concerns from some who patronize the place, some who work
there, some who try to manage things there, that maybe it's in
need of replacement because of its age, and lack of current
technological sophistication for current needs.
I wonder if you would mind having somebody take a look and
give me some kind of a report as to its status, in your
opinion?
Mr. Henderson. Absolutely.\1\
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\1\ The letter from Mr. Henderson to Senator Domenici with
information about the Albuquerque facility project appears in the
Appendix on page 23.
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Senator Domenici. Thank you, Mr. Chairman.
Senator Cochran. Thank you, Senator Domenici, for your
contribution to the hearing and the work of this Subcommittee.
Senator Levin has joined us. Senator, you are recognized
for any comments or questions you may have.
OPENING STATEMENT OF SENATOR LEVIN
Senator Levin. Mr. Chairman, thank you. Welcome, Mr.
Henderson.
Mr. Postmaster General, you are very familiar with our
sweepstakes effort in this Subcommittee. We passed a bill
recently--I think it was a unanimous vote in the Senate--which
is aimed at, among other things, giving more authority to the
Postal Service to stop deceptive mailings, and the Postal
Service has worked closely with us on that legislation.
I would like you to comment on that, why you view it as
being important, whether you think it goes far enough, does it
give you the tools that you need?
Mr. Henderson. The answer to whether it goes far enough is,
we think it does. We think it is a very good piece of
legislation.
The practices in the industry were hurting the industry. In
my opening statement, I said sweepstakes response rates had
fallen anywhere from 20 to 40 percent, so the whole industry
was hurt by the deception. I think it was a very responsible
act to bring some health back to that industry. It hurt our
volume; our net volume was hurt this year because the American
public were really put out over deceptive mailings, and I think
the legislation was a key answer.
Senator Levin. One of the issues that has come up relative
to the sweepstakes is the question of postal subsidies for
nonprofit organizations. I understand that basically, on
sweepstakes from a profit organization, you do not lose money
on that mailing; that mass mailing is not a money loser for
you, there is no subsidy involved in it----
Mr. Henderson. Right.
Senator Levin [continuing]. And you might even make a
little money on it.
But some of the promotions by some of the nonprofits use
some of the same deceptive practices that we've seen in the
profit-making organizations. Some of the techniques that we
object to from some of the big sweepstakes companies are
problems, whether they are used by them or whether they are
used by a nonprofit organization. The difference is that where
a nonprofit organization uses a sweepstakes which is deceptive,
at that point we are subsidizing that because there's a subsidy
for nonprofits in our Postal Service.
My question is this. If a nonprofit organization which has
been given a subsidized postal rate is found to have engaged in
a deceptive practice, can they lose that subsidy? Is that one
of the remedies you can apply?
Mr. Henderson. I'm not sure. I don't know. I can provide
that answer to you.
I do know that nonprofits that engage in commercial
activities--and this is a technical thing--can lose their
nonprofit status, and we would certainly not be supportive of
any deceptive mailing by anyone.
Senator Levin. In terms of my question, would you answer
that one for the record?
Mr. Henderson. Yes, I will. Sure.
The Information Submitted by Mr. Henderson for Senator Levin follows:
An organization is eligible to mail at the Nonprofit Standard Mail
rates if it is not organized for profit and none of its net income
accrues to the benefit of any private stockholder or individual.
Revocation of a nonprofit mailer's eligibility to mail at Nonprofit
Standard Mail rates is based upon the determination that the
organization is not qualified to mail at the Nonprofit Standard Mail
rates in accordance with the regulations in Domestic Mail Manual,
Section E670. Attached is that section of the ``Domestic Mail Manual''
\1\ that applies to eligibility for and revocation of an authorization
to mail at the Nonprofit Standard Mail rates.
---------------------------------------------------------------------------
\1\ The information entitled ``Domestic Mail Manual,'' section
E670, supplied for the record appears in the Appendix on page 24.
Senator Levin. You and I have had some correspondence about
semi-postal stamps where the buyer pays more than the cost of a
first class mailing, and the increment above that cost goes to
a particular cause. For instance, we did it with breast cancer
research. The Postal Service issued that. There were many of us
who thought it was a mistake; I was one of them that did, and
voted against it, because I thought that it gets us into an
area where the Postal Service, by its own regulations or
advice--its own criteria--had decided it would not go anymore.
Your stamp subject selection criteria specifically says that
semi-postals shall not be issued; that was your criteria. It
seems to me it was right because there are so many valuable
causes. As it was said in this criteria as the reason for it,
there is such a vast number of worthy fundraising organizations
in existence that it would be difficult to single out specific
ones to receive such revenue.
Now, we recently had a bill that came through our Committee
which would provide a semi-postal, with the proceeds going,
apparently, to a nonprofit organization, which I think is also
perhaps unique, called ``Operation Lifesaver.'' I'm sure it's
an extremely good organization, but that's not the issue. I
don't know whether we've ever had public funds going to a
nonprofit that way through a semi-postal, whether it's ever
been used in that way.
But putting that issue aside, no matter how worthy an
organization it might be, you wrote me a letter urging us not
to proceed with any additional semi-postal stamps, including
the ``Look, Listen, and Live'' Stamp Act, S. 712, until the
sales period of the breast cancer research stamp has expired
and the GAO has completed its audit.
I wonder whether you would give us the reasons for why you
feel that we should hold off on any additional semi-postal
stamps being authorized until we can see what the audit of the
breast cancer research stamp looks like?
Mr. Henderson. When the breast cancer semi-postal was
introduced, it was introduced for a period of time, in which
case there would be some look-back to see how successful it
was, both from an intent to generate money, and from a postal
obligation to administer production, distribution and sales. I
think it's just prudent to wait, since breast cancer research
was the first semi-postal, to wait and do the work on the semi-
postal before we issue additional ones.
Senator Levin. Mr. Chairman, I would ask that the letter
from Mr. Henderson to me be included in the record at this
point.
Senator Cochran. Without objection, it is so ordered.
[The referenced letter follows:]
United States Postal Service
Washington, DC 20260, June 15, 1999.
Honorable Carl Levin
United States Senate
Washington, DC 20510.
Dear Senator Levin: This is in response to your May 11 letter
concerning information regarding the breast cancer research semi-postal
stamp.
As you know, on August 13, 1997, the President signed into law the
Stamp Out Breast Cancer Act that mandated the Postal Service to issue
within 12 months a special first-class postage stamp with a
differential, not to exceed 25 percent or 8 cents. On July 29, 1998,
the stamp was issued and will be available to the public for 2 years.
The Act provides that before the end of the 2-year period, the General
Accounting Office will perform an audit on the Breast Cancer Research
Stamp operation.
The Postal Service historically believed that as America already
has a philanthropic tradition unmatched by other nations, semi-postals
would be perceived as yet another solicitation and a public intrusion
in an area where private initiative and generosity have had very
beneficial results. We also believed that were the Postal Service to
issue semi-postal stamps, either we or the Congress would be placed in
the very difficult position of determining which organizations should
be funded and which should not.
However, as the Congress expressed itself so strongly on this
issue, the Postal Service has enthusiastically embraced the breast
cancer semi-postal stamp. To ensure the success of stamp sales, the
Postal Service developed a comprehensive advertising and promotions
plan to support the national launch of the Breast Cancer Research
Stamp. The promotional initiatives include post office sales kits,
television/radio interviews, a video news release featuring First Day
of Issue ceremony, postal communications to all our employees, and
press kits to major media and health organizations. To date, over 92
million of the breast cancer semi-postal stamps have been sold.
While the Postal Service has developed guidelines for tracking
costs, we have not yet fully defined which incremental costs associated
with the stamp will be offset against revenue. We have, however, issued
payments to the National Institute of Health and Department of Defense,
as intended by the law, totaling over $6.9 million, after expenses.
With regard to S. 712, the Stop, Listen and Live Stamp Act,
introduced by Senator Lott, the Postal Service would prefer that no
additional semi-postal stamps be authorized until the sales period of
the Breast Cancer Research Stamp has expired and GAO has completed its
audit. We are concerned that a competing semi-postal stamp would have a
negative effect on sales and ultimate success of the Breast Cancer
Research Stamp. We believe the success and cost of the stamp should be
fully evaluated before another semi-postal stamp is authorized in order
to determine the value this type of stamp brings to charitable
fundraising.
Thank you for the opportunity to clarify our position on this
issue. If I may be of assistance in other postal matters, please let me
know.
Sincerely,
William J. Henderson
Senator Levin. And finally, I wonder if you would go back
into the semi-postal issuances historically and provide for the
record whether or not there has been an occasion where the
incremental amount--for instance, $0.07, I think, in breast
cancer research--has ever gone to a non-governmental entity,
whether we have ever turned over that funding that is raised to
a private entity, or whether we'd be setting an example with S.
712? If you know now, you could please tell us; if not, you
could tell us for the record.
Mr. Henderson. There has never been a semi-postal of that
nature, and the breast cancer stamp was the first semi-postal.
So we don't have any experience in the past with these sorts of
things. That's why we wanted to do a full review of the breast
cancer issuance.
Senator Levin. Where did the extra money go for that breast
cancer research?
Mr. Henderson. It went to the Department of Defense and
NIH.
Senator Levin. You said we've never issued a semi-postal?
Mr. Henderson. I don't believe so.
Senator Levin. In the history of the country?
Mr. Henderson. It's the first one ever.
Senator Levin. Thank you, Mr. Chairman.
Senator Cochran. Thank you, Senator.
Mr. Henderson, what is the status of the Postal Service's
efforts to prepare for the year 2000? We understand that you
have undertaken to deal with this, and we wonder what you can
tell us about the status of the Postal Service's preparations
for providing mail delivery services after the beginning of the
new year.
Mr. Henderson. Well, we've had an extensive effort, as you
might imagine. We have 100 million lines of code in the Postal
Service, and of those, we have identified 137 systems as
mission-critical, and we have created over 700 contingency
plans, and we've had a full dress rehearsal in which the
systems all worked. We think the Postal Service is well
prepared for Y2K. We even have a notion of an advertising
program that when all else fails, you can always put it in the
mail.
Senator Cochran. I know that you have tried to identify a
number of the major challenges that the Postal Service faces
going into the next decade, as well as the next millennium. Can
you tell us anything about the priorities that you have set to
help meet these major challenges?
Mr. Henderson. Sure. I think that the first and foremost
challenge that the Postal Service faces internally is to
maintain a strong vigilance on its costs. The key to being a
high-quality, low-cost provider is the key to being in the
marketplace in the new millennium.
I also think that the Postal Service needs to look
thoroughly at the Internet to see what opportunities it
provides Americans from the Postal Service, such as PC Postage,
ease of use, our website, that you can get Priority Mail. And I
also think that the Postal Service needs to look at new
opportunities for revenue--as, for example, facilitating bill
payments, areas like that.
But we see a very strong future for the U.S. Postal
Service. We, in fact, are the only organization that goes to
every house every day around the same time each day. So as
people disaggregate and begin to have offices that are only
connected by PCs, we've become a vital link in connecting the
physical merchandise to these households.
Senator Cochran. As you have probably noticed, the bells
have sounded for a vote over on the Senate Floor, and my
colleagues have all deserted me. [Laughter.]
I don't want to be the only Member of the Subcommittee to
miss the vote, so I am going to suspend the hearing at this
point, go over and make this vote, and come right back, if you
will indulge us for just a little.
Mr. Henderson. Sure.
Senator Cochran. The Subcommittee will stand in recess.
[Recess.]
Senator Cochran. If the Subcommittee will come to order, we
will resume our hearing.
One of the areas of interest in the annual report you have
submitted is the international mail area and the competition
that is developing, with the Postal Service actually losing
volume in some areas of the mail market internationally. How do
you intend to improve upon your competitive relationship in the
international market for Postal Service delivery and increase
your international mail volume?
Mr. Henderson. I think the answer to that lies in the
answer to many of the other issues, and that is to provide a
low-cost, high-quality product. As a tactical matter, we have
partnered with people like DHL to provide consistency in
transportation, and in some instances, delivery. We have also
partnered with private posts, such as Japanese Post, and we
have maintained strict quality control between the two posts.
But competition is fierce internationally, not just from
the U.S.-based competitors but also from the foreign posts. You
know, foreign posts are coming to the United States. Germany
has an organization, Deutsche Post USA. The British have
offices in New York, Chicago, and California. The Dutch Post is
here. So there is a globalization of activity of postal
administrations around the world.
One of the principal drivers for our volume drop-off this
year is that the bulk of international mail had been letter
mail, and electronic diversion clearly has impacted that
significantly. The other is the fact that our focus had been on
Asia, especially with partners like L.L. Bean in Japan, and the
``Asian flu,'' if you will, the Asian economy created a problem
for us. But we expect to come back. We will be in the game.
Senator Cochran. Recently there has been some controversy
over the proposed amendments that you have developed to
regulations regarding commercial mail receiving agents, or
CMRAs as they are called. These regulations govern mail that is
delivered by the Postal Service to private businesses that rent
out mail boxes to customers.
As I understand it, the proposed amendments were intended
to protect consumers from mail fraud, primarily by requiring
the boxholders to provide additional information and to list
the address as a private mailbox. But boxholders and small
business owners have raised concerns to us about the impact
that these new requirements may have.
What has the Postal Service done to address these concerns?
Mr. Henderson. Well, customers had concerns about their
stationery, so we extended the period of time to comply so that
customers would have ample time to change the stationery. That
was their big issue.
The PMB, or private mailbox, was another concern. If you
use a post office box, you have to say, ``Post Office Box
152.'' On the private mailboxes, folks were using addresses
like ``Suite 16,'' and then the address of the PMB. A lot of
fraud was being perpetrated. Law enforcement actually got
together with the U.S. Postal Inspectors and said, ``We really
need to remedy this. We need to protect the receiver of the
mail.'' So we are just requiring CMRA customers to show that
they are a private mailbox, that's all, so that as a consumer
you won't think that you are doing business with this ``suite''
in some building.
Senator Cochran. Senator, I have a couple more questions to
wrap up the hearing, but I am prepared to yield to you for any
further questions you might have at this point.
Senator Akaka. I thank you. I have a few more questions
too, Mr. Chairman.
Postmaster General, you have touched on one of the areas
frequently mentioned as a major challenge for the Postal
Service, and that is labor management relations. How are these
relations now? And what efforts are planned or needed to
develop an effective partnership between management and
employees, management associations, and labor unions?
Mr. Henderson. I think the biggest success in labor
management relations in the last year has been the agreements
with the American Postal Workers Union and the Mail Handlers
Union. We are currently in negotiations with the National Rural
Letter Carriers Association.
The biggest disappointment in labor management relations
was the inability to reach an agreement with the NALC, which is
now in arbitration in its final days. Labor management
relations remain for me a top priority, but it's a huge
challenge. I think that part of the challenge is that the
parties have to learn to work together to resolve problems and
not rely on a third party, and I think the blame for that lies
both within management and within the unions, and we are--at
the leadership of the unions and management--trying to do
something about that.
Senator Akaka. Over the years, employee violence has been a
major concern within the Postal Service. What ongoing efforts
are being undertaken by the Postal Service to address the
problem of violence?
Mr. Henderson. Well, we have an independent study being
done on violence, headed by Joe Califano, and it has other
distinguished members, like Doug Frazier from the Auto Workers,
and we expect that report to be concluded in June.
In addition, we have threat assessment teams all over the
United States that react to any potential threat. We have an
extensive employee assistance program that is a model for the
public and the private sector, and we have employed activities,
strategies like that--and we think we've made progress in
communication between employees, which is really important. If
it gets hostile, we intervene.
It is, though, a tough issue. It's not one where there is a
simple formula. Violence in America, as you well know, is a
tough problem to solve.
Senator Akaka. It seems as if the employee assistance
program has been successful in its efforts to combat workplace
violence, and that program is supported by postal employee
unions. I have been informed that $2.7 million will be cut.
What percentage of the program's total budget does this
represent?
Mr. Henderson. I couldn't tell you off the top of my head,
but I will be happy to tell you for the record.
Senator Akaka. All right. Certainly, we will want that
information. How will these cuts affect the program?
Mr. Henderson. Well, it is my recollection that about 30 to
40 counselors would be reduced. That's what I recall. But we
don't take that as a lack of support for the program. We do
housecleaning now; we've said that we're not going on a diet,
we're changing our lifestyle. We're having to do more with less
in every aspect of the Postal Service. That's just a part of
cost containment.
So while the employee assistance program gets a little
reduction, so does every other department.
Senator Akaka. Thank you. You answered the other part of my
question which was going to be the reason for the cuts.
In October 1997, a study on postal workforce diversity was
released that made recommendations intended to help the Postal
Service address diversity issues and concerns. In response to
the study, the Postal Service developed initiatives that were
generally designed to help strengthen the diversity program.
What progress has the Postal Service made in implementing
these initiatives?
Mr. Henderson. There were 23 recommendations, and a task
force chaired by the Chief Operating Officer and the Chief
Financial Officer. We have implemented all of the
recommendations.
Senator Akaka. How do the Postal Service's recruitment and
hiring practices help ensure that it has a diverse workforce?
And what improvements have recently been made in this area?
Mr. Henderson. We have proactive recruitments in
communities, in minority communities. We list job postings. We
talk to minority organizations about opportunities in the
Postal Service, and we've been very successful with this.
Senator Akaka. Thank you, Mr. Chairman.
Senator Cochran. Thank you, Senator.
I know that other Senators who are Members of the
Subcommittee may also have questions to submit for answers that
will be included in the hearing record, and we hope you will be
able to respond to those in a timely fashion.\2\
---------------------------------------------------------------------------
\2\ The questions and answers from Senators Collins, Lieberman, and
Cleland for Mr. Henderson appear in the Appendix on pages 36-41
respectively.
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I have only one concluding question.
We were in debate last year on the subject of post office
closings and relocations, and some Senators wanted to write
into the law some requirements for the Postal Service to follow
in such situations. As you may remember, there were new
regulations that the Postal Service came up with for notifying
communities about changes in their Postal Service buildings.
Can you tell us how these are working and whether there is
any need for Federal legislation on this subject, in your
opinion?
Mr. Henderson. In my opinion there is no need for Federal
legislation, certainly no process that would require all of the
issues in the community to be adjudicated in Washington. It
would put our capital improvement effort into gridlock
nationwide.
We have issued new rules requiring very active, proactive
community involvement. Essentially, we want to be a friend to
the community. We don't want to put post offices where the
community doesn't want them. But at the same time, we can't be
held hostage by one individual in the community. We have a
policy of working with the community; for example, taking post
offices out of downtown areas--we don't ordinarily do that. We
leave a retail section; we may separate the plant from the
retail section. So we stress very much to our field officials
that we want to be a positive part of the community. We do not
want to be an issue in the community, and I think we've had
success in that regard.
Senator Cochran. I want to ask a parochial question. I went
to a postal facility to buy a Federal duck stamp last year, and
there was a big, long line at this postal facility. It was one
of those bad, rainy early-fall days that we have in the south,
and it seems like that's when everybody wants to go to the post
office, and we all went at once. There must have been about 20
people standing in line. There were four or five windows at
this facility, but there was only one window open and one
person standing there, it seemed to me, very casually
interested in serving the public. Of course, I didn't run up
and say, ``I'm a United States Senator and I'm here to buy my
duck stamp'' or anything like that. As a matter of fact, I
tried to be as in disguise as I possibly could because they
might all hold me responsible for this clerk's very negligent,
I thought, and carefree attitude about the situation.
[Laughter.]
I hear complaints like this, and I've personally
experienced that one, and I just thought I would bring it to
your attention. What are you doing about that?
Mr. Henderson. Well, we have a national policy--obviously
it wasn't followed in your case--of customers waiting in line
less than 5 minutes, and obviously we have a range of
management skills in the field. I think this Postmaster needs a
little personal counselling. If you will give me the name off
the record, I assure you that you won't stand in line the next
time you walk into that post office. [Laughter.]
Senator Cochran. Well, I'm not interested in it so much for
myself, but I know the general public runs into that from time
to time. I hear about it and I'm sure other Members of the
Senate occasionally hear about the same thing. Senator Akaka
brought up the contract situation in his State.
But these are the day-to-day problems that I think a lot of
Americans are concerned about. Being interested and showing
that you are interested in serving the consuming public in a
polite and efficient way, that would really go a long way, I
think, toward improving the image of the Postal Service and
improving the way Americans are able to use the Postal Service
facilities throughout the country.
I know that's the goal, and I hope you can lend a little
energy to the effort to instill that attitude into Postal
Service workers nationwide, most of whom I am sure are very
courteous and efficient. But there are some who are not. I hope
that we can get them other work of some kind.
Mr. Henderson. Maybe in another organization.
Senator Cochran. Maybe in another part of the building. I
don't know. Or another job description.
Well, you have been very good to be patient with our
questions and give us this interesting and helpful report on
the status of the Postal Service. We appreciate the good work
that you have done in this job up until now. I am very
impressed with the energy and experience that you have brought
to the job, and I commend you for the effort that you are
putting into it.
Mr. Henderson. Thank you, Mr. Chairman.
Senator Cochran. Senator Akaka.
Senator Akaka. Yes. I would like to add my applause to what
you are doing, Postmaster General, and tell you that I
personally know that you are managing the people in the
Pacific, and they do a great job for you and our country. We
look forward to the great leadership that you give to the
Postal Service. To know that we're in the black and doing
pretty well and that we are meeting the challenges that are
ahead--I feel good about that, and I want to thank you so much
for what you are doing.
Mr. Henderson. Thank you.
Senator Cochran. Thank you.
The hearing is adjourned.
[Whereupon, at 3:08 p.m., the Subcommittee was adjourned,
to reconvene at the call of the Chair.]
A P P E N D I X
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