U.S. GOVERNMENT PRINTING OFFICE

61–295 cc WASHINGTON : 2000

S. Hrg. 106–324

NOMINATIONS OF LeGREE DANIELS AND JOHN

WALSH

HEARING

BEFORE THE

COMMITTEE ON

GOVERNMENTAL AFFAIRS

UNITED STATES SENATE

ONE HUNDRED SIXTH CONGRESS

FIRST SESSION

ON THE

NOMINATIONS OF LEGREE DANIELS, OF PENNSYLVANIA, AND JOHN

WALSH, OF CONNECTICUT, TO BE GOVERNORS OF THE BOARD OF

GOVERNORS OF THE U.S. POSTAL SERVICE

OCTOBER 21, 1999

Printed for the use of the Committee on Governmental Affairs

(

For sale by the Superintendent of Documents, Congressional Sales Office

U.S. Government Printing Office, Washington, DC 20402

(II)

COMMITTEE ON GOVERNMENTAL AFFAIRS

FRED THOMPSON, Tennessee, Chairman

WILLIAM V. ROTH, Jr., Delaware

TED STEVENS, Alaska

SUSAN M. COLLINS, Maine

GEORGE V. VOINOVICH, Ohio

PETE V. DOMENICI, New Mexico

THAD COCHRAN, Mississippi

ARLEN SPECTER, Pennsylvania

JUDD GREGG, New Hampshire

JOSEPH I. LIEBERMAN, Connecticut

CARL LEVIN, Michigan

DANIEL K. AKAKA, Hawaii

RICHARD J. DURBIN, Illinois

ROBERT G. TORRICELLI, New Jersey

MAX CLELAND, Georgia

JOHN EDWARDS, North Carolina

HANNAH S. SISTARE, Staff Director and Counsel

DAN G. BLAIR, Senior Counsel

JOYCE A. RECHTSCHAFFEN, Minority Staff Director and Counsel

PETER A. LUDGIN, Minority Professional Staff Member

DARLA D. CASSELL, Administrative Clerk

(III)

C O N T E N T S

Opening statements: Page

Senator Cochran ............................................................................................... 1

Senator Lieberman ........................................................................................... 3

Senator Specter ................................................................................................. 7

Senator Akaka .................................................................................................. 8

WITNESS

THURSDAY, OCTOBER 21, 1999

Hon. Christopher Dodd, a U.S. Senator from the State of Connecticut .............. 1

LeGree Daniels, of Pennsylvania, to be a Governor of the Board of Governors

of the U.S. Postal Service .................................................................................... 5

John Walsh, of Connecticut, to be a Governor of the Board of Governors

of the U.S. Postal Service .................................................................................... 5

ALPHABETICAL LIST OF WITNESSES

Dodd, Hon. Christopher:

Testimony .......................................................................................................... 1

Daniels, LeGree:

Testimony .......................................................................................................... 5

Biographical and financial information .......................................................... 13

Pre-hearing questionnaire ............................................................................... 22

Walsh, John:

Testimony .......................................................................................................... 5

Biographical and financial information .......................................................... 29

Pre-hearing questionnaire ............................................................................... 35

APPENDIX

Senator Rick Santorum, a U.S. Senator from the State of Pennsylvania,

prepared statement .............................................................................................. 4

(1)

NOMINATIONS OF LeGREE DANIELS AND

JOHN WALSH

THURSDAY, OCTOBER 21, 1999

U.S. SENATE, COMMITTEE ON GOVERNMENTAL AFFAIRS, Washington, DC.

The Committee met, pursuant to notice, at 10:03 a.m., in room

SD–628, Dirksen Senate Office Building, Senator Thad Cochran

presiding.

Present: Senators Cochran, Specter, Lieberman, and Akaka.

OPENING STATEMENT OF SENATOR COCHRAN

Senator COCHRAN. The Committee will please come to order. This

morning we are meeting to have confirmation hearings for two

nominees for the Board of Governors of the U.S. Postal Service,

Mrs. LeGree Daniels and Mr. John Walsh. We welcome you to the

Committee.

We are also pleased to have with the Committee this morning,

the two distinguished Senators from Connecticut. One is the Ranking Minority Member of the Committee. The other is Senator Chris

Dodd.

Senator Dodd, we appreciate your being here. We understand

that you are here to introduce Mr. Walsh.

Senator DODD. I am.

Senator COCHRAN. You may proceed.

TESTIMONY OF HON. CHRISTOPHER DODD, A U.S. SENATOR

FROM THE STATE OF CONNECTICUT

Senator DODD. Thank you very much. I am pleased to be able to

do so, and pleased to be sharing the table with Mrs. Daniels as

well. I congratulate you, Mrs. Daniels, on this nomination.

Mrs. DANIELS. Thank you.

Senator DODD. Mr. Chairman, this is a labor of pleasure and love

to be able to introduce John Walsh, who is a wonderful friend. His

lovely wife, Anne, is here with us as well, from New Haven, Connecticut.

I must tell you though at the outset, this nomination was submitted in 1996, in November 1996. The President made the submission in October 1998. This is not just here in this Committee.

This is something we need to look at in a broader way. We ask people to consider these positions, and then for 2 or 3 years we leave

people waiting. I called John Walsh a couple of years ago when the

word came his nomination was going to be accepted, I said, ‘‘Well,

2

start licking stamps.’’ If he had started licking stamps, we would

have lost him a year or so ago. [Laughter.]

So as a broader matter, I sit on the Rules Committee, and every

time I am faced with a nomination, I look at the length of time we

make people go through a process here. We need to do something

around here to be able to expedite a process for asking people to

serve and then moving the process along in some way. And I know

you share those thoughts as well.

But anyway, I am pleased to introduce to the Committee, John

Walsh. Joe Lieberman, my good friend and colleague, would share

these thoughts with you, but every State, I guess, finds these

niches and claims. But William Goddard, a founding member of the

U.S. Postal Service, Mr. Chairman, was from New London, Connecticut. His father was actually the postmaster in New London,

Connecticut, two centuries ago. And his son decided he would take

the concept a bit further, and formed in the mid 1770’s the constitutional post, which was the forerunner to the U.S. Postal Service. And in 1774 he had 30 offices all across the United States,

from Portsmouth, New Hampshire to Williamsburg, Virginia, operating a postal service prior to the establishment of our Nation. The

Continental Congress, in July 1775, they formed the U.S. Postal

Service. Ben Franklin, of course, became the first Postmaster General, which we all know from our history books. A different time

in history, because it was his son-in-law, Richard Bache, who was

named the Deputy Postmaster General. But William Goddard was

named surveyor of the Post Office. So this fellow from Connecticut

joined Franklin and Bache as really the triumvirate or troika, if

you will, that started the U.S. Postal Service. But it was a New

London fellow who really predated a national postal service with

a constitutional post.

So there is a longstanding tradition of our interest in this subject

matter, and John’s nomination to the Postal Board of Governors is

something that would follow in that tradition. He has had a wonderful record of service, and New Haven, Connecticut has given

this country some wonderful leaders, not the least of which is the

person who sits to your right, my colleague and dear friend, Joe

Lieberman; and Rosa DeLauro, who sits in the House of Representatives. Roger Sherman, who created the U.S. Senate, was from

New Haven, Connecticut, who came up with the concept of the

Connecticut Compromise, which offered big States and small States

a compromise in representation in the Federal Government.

So a wonderful, rich tradition coming out of this city, and John

Walsh carries on in that tradition. He has been a wonderful, committed citizen in that community with 35 years of service to the

people of New Haven, one of the quiet leaders, who just day in and

day out gets the job done for average citizens.

So it is truly an honor to watch this quiet pillar, if you will, of

New Haven be presented to this Committee for this prestigious position for which he is well suited and highly qualified, and I am

confident that we will all be proud of his service in the U.S. Senate

if we confirm him for this position.

Senator COCHRAN. Thank you very much, Senator, for an excellent history lesson.

Senator DODD. Always a little history is nice.

3

Senator COCHRAN. And eloquent statement in support of Mr.

Walsh.

Senator Lieberman.

OPENING STATEMENT OF SENATOR LIEBERMAN

Senator LIEBERMAN. Well, thanks, Mr. Chairman. I am glad to

welcome John Walsh here, and I appreciate the kind words of my

colleague and the educational words of my colleague. I continue to

learn from the senior senator.

Senator DODD. Thank you, Joe. Even early in the morning.

Senator LIEBERMAN. Even early in the morning. And this is not

even on Don Imus’s show.

Senator DODD. No, it is not.

Senator LIEBERMAN. It is an honor to welcome John Walsh and

Governor LeGree Daniels.

You know, it struck me that if Mr. Walsh gets confirmed for this

in the due process of all of this, you and I will have to refer to him

as Governor Walsh.

Senator DODD. Governor, that is true. Well, maybe we will

amend that. [Laughter.]

Senator LIEBERMAN. Mrs. Daniels, let me just say first that I

know that you have served on the Board of Governors since 1990

with great distinction. I am pleased that the President has chosen

to renominate you and that you have accepted this public responsibility once again. The Board has acted on many really remarkable,

in some ways, revolutionary initiatives during your term, and I

think you deserve credit for overseeing that, and I know that the

Board will benefit by your serving a second term. So I appreciate

that you have been willing to continue in this service.

As Senator Dodd indicated, John Walsh has really been a great

citizen of Connecticut, of the greater New Haven area. He is a

friend to both of us. I have known him for the better part of the

40 years or so that I have spent in the city of New Haven. He is

a great public and private citizen. He has the extraordinary advantage, which all of us on this panel, and Senator Dodd, share, which

is that he has a wife who is much his superior in most everything,

and even at moments when we think harshly of John, the benign

and beautiful face of Anne Gorrick Walsh mollifies our concerns.

She is a member of a great New Haven family, Mr. Chairman. Her

dad was just one of those classic family doctors who were there for

people when they needed them, with not only great medical skill,

but with great personal honor.

As Senator Dodd indicated, John has a great record, both in his

private life and public life, graduate of Quinebaug College, active

in business, then went on to serve, chairman of the New Haven

Parking Authority, director of support services for the New Haven

Police Department, purchasing agent and deputy controller for the

City of New Haven, and now for a good part of this decade, the

president of a very exciting and important project called the Ninth

Square Association, which was established to take a central part of

old New Haven which had deteriorated, and to revive it for both

residential and commercial purposes. And today I can say that it

is once again, this Ninth Square of New Haven, vibrant and teeming with activities.

4

It took a long time to get to this morning, but I am delighted,

and I have great confidence that John will serve in this position

with effectiveness and with honor.

In your pre-hearing questions, you stated that, ‘‘The Postal Service faces the challenge of improving service to the public as it enters a new millennium.’’ I could not agree with you more in that

statement, and I could not have higher confidence that you, together with Governor Daniels and your other colleagues, will do

just that.

Thanks to both of you, and thank you, Mr. Chairman.

Senator COCHRAN. Thank you, Senator Lieberman.

We understand that Senator Specter is expected to come to the

Committee to introduce Mrs. Daniels. Senator Santorum has indicated, because of proceedings on the floor of the Senate, he is unable to personally be here. But he sent over a written statement,

which he asked that we make a part of the record, introducing and

supporting Mrs. LeGree Daniels. That statement will be made a

part of the record at this point.

[The prepared statement of Senator Santorum follows:]

PREPARED STATEMENT OF SENATOR RICK SANTORUM, A U.S. SENATOR

FROM THE STATE OF PENNSYLVANIA

Mr. Chairman and Members of the Committee, I would like to thank you for extending me the opportunity to offer testimony on behalf of Mrs. LeGree Daniels,

nominee for the U.S. Postal Service Board of Governors. Over the years, I have

worked closely with Governor Daniels and am impressed with her demeanor and

work ethic. I come before you this morning to recommend her continued service on

the Board of Governors.

As you know, the Board is the governing body of the U.S. Postal Service. the

Board directs the exercise of the powers of the Postal Service, directs and controls

its expenditures, reviews its practices, conducts long-range planning, and sets policies on all postal matters. The Board takes up matters such as service standards,

capital investments and facilities projects exceeding $10 million. It also approves officer compensation. With each of those important responsibilities in mind, the importance of having the best-qualified candidates serving as members of the Board

is clear.

Mr. Chairman, I believe that Governor Daniels has the experience and skill to

continue in her valuable contribution to the deliberations and actions of the Board.

Governor Daniels, who has already served one full term on the Board, has had a

long and impressive career, working with non-profit entities, the Federal Government, and the Commonwealth of Pennsylvania. For instance, Governor Daniels is

a member of the Penn State Board of Advisors for the Harrisburg Campus, a member of the Board of Directors of the Center for International Private Enterprise,

which is an arm of the U.S. Chamber of Commerce, and member of the John Heinz

Harrisburg Senior Center. Moreover, Governor Daniels has been Vice Chairman of

the National Electoral College on two occasions. She is a former member of the

President’s Commission on White House Fellows, the Army Science Board, the National Endowment for Democracy, and the Middle Atlanta Advisory Board of the

U.S. Civil Rights Commission. She has also been Deputy Secretary of the Commonwealth of Pennsylvania and Commissioner of Election for the Pennsylvania Department of State. Currently, she is a member of the U.S. Postal Service Board’s Audit

Committee.

Mr. Chairman, in closing I would like to thank you once again for allowing my

comments to be included in the record of this hearing, and I urge the Committee

to expeditiously consider, and fully support, Mrs. Daniels’ nomination.

Senator COCHRAN. Senator Akaka, did you have any opening

statement or comments you would like to make before we proceed?

Senator AKAKA. When I ask my questions, I will make a brief

statement.

5

Senator COCHRAN. OK. The rules of the Committee require that

an inquiry be conducted into the experience, qualification, suitability and integrity of each nominee to serve in the position to

which he or she has been nominated. The Committee has received

all of the required information that it needs for this hearing.

In addition, each nominee has responded in writing to questions

submitted by the Committee. Copies of each nominee’s biographical

information and pre-hearing responses will be made a part of the

record of this hearing, and will be available upon request. The financial statements of the nominees are available for inspection by

the public in the Committee Office.

The Committee has reviewed all of this information. The staff

has examined the financial disclosure reports submitted by the Office of Government Ethics. And the Committee’s Ranking Minority

Member and I have reviewed the FBI background investigation reports.

The rules of the Committee require that all nominees be under

oath while testifying on matters relating to their suitability for office, including the policies and programs which the nominee will

pursue if confirmed.

Would the nominees please stand and raise your right hand for

the oath?

Do you solemnly swear to tell the truth, the whole truth and

nothing but the truth, so help you, God?

Mrs. DANIELS. I do.

Mr. WALSH. I do.

Senator COCHRAN. Thank you.

At this time we will be happy to recognize you for any statements or comments that you would like to make, Mrs. Daniels.

TESTIMONY OF LeGREE DANIELS, OF PENNSYLVANIA, TO BE A

GOVERNOR OF THE BOARD OF THE U.S. POSTAL SERVICE

Mrs. DANIELS. Thank you.

I am not sure this morning. I got up with mixed feelings. Although I have been here before, I just felt this morning how important this is and what an important step I am still taking.

And coming over here I thought, ‘‘Well, what do I need to do that

is any different from what I have been doing?’’ So the only thing

I could think of is just say, pray a little harder that we do a better

job, and continue to do what this Congress expects us to do, and

I am sure that we will.

Senator COCHRAN. Thank you very much. Mr. Walsh.

TESTIMONY OF JOHN WALSH, OF CONNECTICUT, TO BE A

GOVERNOR OF THE BOARD OF THE U.S. POSTAL SERVICE

Mr. WALSH. Yes, Mr. Chairman, Senators, Governor Daniels, and

guests here in the room.

I am honored to be here today. To serve the people has always

been one of my ambitions. I am deeply grateful to Senator Dodd,

for his kind remarks, and for recommending me for a position on

this board, and for his kind words and for over 25 years of friendship; and to my good friend, Senator Joe Lieberman, for his kind

remarks, and for his support and friendship for over 40 years in

the city of New Haven.

6

It is a very humbling experience to know that a person such as

myself, with experience both in the public and private sector, can

fulfill an ambition such as this.

Thank you, Mr. Chairman and Senators, for letting me appear

here this morning.

Senator COCHRAN. Thank you, Mr. Walsh.

Let me ask you a few standard questions we ask of each nominee

appearing for confirmation before the Committee. Is there anything

you are aware of in your background which might present a conflict

of interest with the duties of the office to which you have been

nominated? Mrs. Daniels.

Mrs. DANIELS. Not that I can think of.

Senator COCHRAN. Mr. Walsh.

Mr. WALSH. None.

Senator COCHRAN. Do you know of any reason, personal or otherwise, that would in any way prevent you from fully and honorably

discharging the responsibilities of the office to which you have been

nominated? Mrs. Daniels.

Mrs. DANIELS. No.

Senator COCHRAN. Mr. Walsh.

Mr. WALSH. No.

Senator COCHRAN. Do you agree without reservation to respond

to any reasonable summons to appear and testify before any duly

constituted committee of Congress if you are confirmed? Mrs. Daniels.

Mrs. DANIELS. Yes.

Senator COCHRAN. Mr. Walsh.

Mr. WALSH. Yes.

Senator COCHRAN. Thank you. Senator Lieberman.

Senator LIEBERMAN. Thanks, Mr. Chairman, I have just really a

few questions.

In testimony that Postmaster General Henderson gave before one

of the subcommittees here, he said that he does not think, ‘‘there

is any question that the Postal Service of the future will be different than it is today.’’

So, in general terms—and I know, Governor Daniels, you have

been there, Mr. Walsh, you are hopefully coming to it—I wonder

what either of you think about what the Postal Service of the future may look like, or in a more limited way, what challenges do

you think will face the Postal Service in the future? Governor Daniels.

Mrs. DANIELS. I think the challenges that we will be facing first

thing is this Internet, as we get into the electronics. But you know,

I have so much faith in the employees of the Postal Service. I have

worked with them. I have walked through the Postal Service. And

I just believe, like all Americans, whatever that challenge is, we

will face it, overcome it, and we certainly will conquer it. I think

they have the knowledge, and that they will do what needs to be

done for the American people.

Senator LIEBERMAN. Thank you. Mr. Walsh.

Mr. WALSH. I certainly agree with Governor Daniels and her remarks. And I guess I would follow in the same line, that the Internet, as we go into the new millennium, is here to stay, not going

away. I think the Post Office, just like every other business, has

7

to gear up for it, and I am assuming that the Post Office has already taken steps. I know that you can buy stamps on E-mail on

the computer now. And I think down the line this is going to be

the biggest area of change that the Post Office will see in the future.

Senator LIEBERMAN. Thank you.

Let me mention one other piece of testimony before the Governmental Affairs Committee. Richard Moe, who is president of the

National Trust for Historic Preservation, testified that the issue of

Post Office closings is one of the top priorities of his organization.

He is concerned about whether the Postal Service is giving sufficient consideration to communities’ input related to preserving historic Post Offices. Now, I do not know whether you have had any

time to think about that. I wanted to mention it to you because it

is testimony before this Committee, and just generally ask you if

you have any thoughts about the Postal Service’s policy regarding

the preservation of Post Offices that are located in historic buildings. Mr. Walsh, do you have any thoughts on that?

Mr. WALSH. Not knowing any of the procedures that the Post Office has to maintain these buildings, I would just like to say that

I think that in any changes in a community, the community should

be involved in the decision-making process. Ultimately it will be

the decision of the Postal Service, but you need to bring in the people in the community to look at these buildings and see if it is feasible to keep them.

Senator LIEBERMAN. Thank you. Governor Daniels.

Mrs. DANIELS. I feel that it is critical that we keep these Post

Offices open where we can, especially in small towns, in order for

the rural customers to have access to the same goods and services

of customers in the cities. So I honestly feel that if it is financial

feasible, that we should work with the people in those areas to

keep them open where we can.

Senator LIEBERMAN. I thank you both. I note that our colleague,

Senator Specter is here.

And I look forward, Mr. Chairman, to working with you; appreciate the speed—although it took a long time for these two nominations to get here. Actually, Mr. Walsh had no gray hair at the time

he was nominated. [Laughter.]

Well, I may be exaggerating a bit.

Once the nominations got here, you moved—and I thank Senator

Cochran—very quickly, to get them before us, and I hope we can

move with equal dispatch to get both of them through the Senate.

Thanks very much.

Senator COCHRAN. Thank you, Senator Lieberman.

Senator Specter, we welcome you to the hearing. We know you

are interested in the nomination of Mrs. Daniels, particularly, and

you are recognized at this time for any comments you would like

to make.

OPENING STATEMENT OF SENATOR SPECTER

Senator SPECTER. Thank you very much, Mr. Chairman, Senator

Lieberman, and Senator Akaka. It is a great pleasure to appear before this very distinguished Committee, because I am a Member of

this Committee. [Laughter.]

8

So I have an option of seating arrangements today, but I choose

to sit next to Mrs. LeGree Daniels, who is a friend of some 30

years. We are called upon very frequently to introduce constituents,

but infrequently to introduce one whom I have known as long as

I have known Mrs. Daniels.

She has an extraordinary record, and was a member of the Senate family going back to 1974 when she was a staff assistant for

Senator Hugh Scott. Her career has included being Assistant Secretary for Civil Rights in the Department of Education in the 1987

to 1989 time frame. She has been an examiner and supervisor with

the Pennsylvania Bureau of Motor Vehicles. She attended Temple

University and the Lincoln Business School. She is a member of

the Harrisburg Branch of the NAACP and the Dauphin County

Urban League. She has been very active in Republican State politics, and I might say, with great discretion in that position, former

Secretary of the Republican State Committee and Director Emeritus and member of the Policy Committee of the Pennsylvania

County of Republican Women.

She has a very distinguished family background, married to

Oscar Daniels, two stepdaughters, Octavia Duncan and Gwendolyn

Daniels.

She has served on the Postal Service Board of Governors, and

now she is up for a renewed term, and I am delighted that LeGree

has been willing to re-enlist, because she is experienced and dedicated and competent. You cannot ask for much more than that.

I appreciate the opportunity to appear here, Mr. Chairman, and

Members of the Committee, and I would ask leave to be excused

to go back to the Appropriations Committee, where we are trying

to get out a Bill on Labor, Health, Human Services and Education.

Senator COCHRAN. Without objection, that leave request is granted.

Senator LIEBERMAN. Thank you. [Laughter.]

Senator COCHRAN. And thank you for your kind comments and

your excellent statement in support of Mrs. Daniels.

Senator Lieberman.

Senator LIEBERMAN. Well, I was just going to ask Senator Specter to make sure he did not forget all of those requests for Connecticut projects before his Appropriations Subcommittee. [Laughter.]

Senator SPECTER. As usual, Connecticut is over-represented.

[Laughter.]

Senator COCHRAN. Senator Akaka, do you have any questions of

the nominees?

OPENING STATEMENT OF SENATOR AKAKA

Senator AKAKA. Thank you very much, my friend, Mr. Chairman,

and my friend and colleague, Senator Lieberman. I am glad to be

a part of this hearing.

And I join them in welcoming you to the Committee, and also

your families and friends that are gathered here.

Mrs. Daniels, I would like to take this opportunity to thank you

for your willingness to serve for another term. Sometimes it is a

question after you serve a term, whether you should continue. But

you chose to do just that, to continue as a Governor of the Postal

9

Service. I am aware of the time it takes to be a member of this

Board, and I am also aware of how seriously you take your responsibility. Since 1990 you have represented the public’s interest before the Board in much the same way that a member of a board

of directors of a private corporation would represent the stockholder’s interest. We certainly appreciate what you have done.

Since your confirmation 9 years ago, the Postal Service has made

significant progress. This is history. Customer satisfaction is up.

Revenue is strong. And on-time delivery of first class mail is at an

all-time high. And so we are at the best we have ever been, and

thanks to you and others who have been serving thus far, we owe

a big debt of gratitude to you.

I have several questions I would like to ask you, and then I will

do the same with Mr. Walsh.

Mrs. Daniels, are there specific steps that the Board has taken

that you believe have contributed to these successes?

Mrs. DANIELS. Well, the one step we have taken is the fact that

we have set up committees so we are on top of everything usually,

and we work very closely with management. And I think not only

that has helped us, but some of the Governors make it a part of

their duties to visit the Post Office to see what our postal employees are doing. We know it is a part-time job, but most of us have

felt it is a full-time job, because we owe it not only first to our postal employees, but also second, to our customers, which are our outside customers. So we felt when we took—at least I have—when I

took this oath, that it was for real, and that I owed it not only to

myself but to the American people to do a good job, and that is

what we have tried to do, and with that help and the help of our

employees. We have the best in the country. And you ask them to

do something, 9 chances out of 10, they will come through for you,

and this is why the success. It has not been us. It has been those

postal employees on whose shoulders we are all standing, and they

have come through for us, and will continue to do so.

Senator AKAKA. Well, you speak so highly of postal employees,

and I know you are interested in how the postal employees are

treated. Are you satisfied with how labor relations have progressed

for them?

Mrs. DANIELS. No, I am not totally satisfied, but both sides are

trying to work it out. A case in kind has been the last labor meeting we have gone through, and it has been much better than it has

been in the past. It is something we all have to work with, not only

labor, but management as well. And you know when people talk

and get together, eyeball to eyeball, it usually works because we

are all Americans, and there is always a way that you can find an

answer, the correct answer.

Senator AKAKA. You and Mr. Walsh commented on the Internet

and the place that it will be playing in the future of the Postal

Services, and I am sure you have been able to witness what has

been happening. How do you envision the Postal Service responding to these changes? For instance, there was a criticism that the

Postal Service was not receiving enough resources to move in these

areas, but I am asking how you envision the Postal Service responding to these changes?

10

Mrs. DANIELS. Exactly what we are now doing. The Postmaster

General, along with us, we have had a conference that we called

together for the Governors as well as postal management, to see

how we envision the year 2000. The Postmaster General now is

working on those appointments, and things that he thinks we need

to change this Postal Service, so we can go into the year 2000 and

2001. He will be presenting that to the Governors, and I am sure

those rules and regulations he has changed will be presented to

you all.

It is hard for me to explain today exactly what we are going into,

but we are looking at all of it to make sure we go into it so that

we can continue to deliver mail every day, everywhere, for all

Americans.

Senator AKAKA. I understand that like most Governors, you have

not taken a position on H.R. 22, the Postal Reform Bill in the

House. However, as you probably know, there are provisions in the

bill that could privatize certain aspects of mail delivery. Would you

care to comment on this issue?

Mrs. DANIELS. I would not like to get into it totally, because I

do not have it with me. I am not for privatization of the Postal

Service, but there are some things in there that perhaps would

help us. I have not gone through it totally, and when I have, I will

give it to you in writing at another time.

Senator AKAKA. Mr. Walsh, I wish to express my appreciation for

your interest in serving the public as a member of the Board of

Postal Governors. The journey on which you are about to embark,

if confirmed as a governor—will be exciting, but it will be time consuming also, as you probably know. I thank your family in advance

for their willingness to have you serve as a member of the Board.

I am sure that Mrs. Daniels can attest to the many responsibilities

and activities beyond the monthly meetings that take up her time,

and that will be taking up your time as well. And I hear from my

colleagues that you are a busy person in New Haven, so this is an

additional responsibility.

Mr. Walsh, you have had a distinguished career, which my colleagues from Connecticut have recounted eloquently. You do not

appear to be afraid of tackling large-scale projects involving significant financing, nor dealing with contract and personnel issues. Obviously, there is a great deal of information that a new Board Governor has to learn, and I am not sure where I could start if I were

in your position at this moment; however, I am sure that you have

given this much consideration.

I would be interested to know how you will undertake this tremendous challenge.

Mr. WALSH. Thank you for your kind words, Senator.

First of all, I have to be a learner. I have to listen. I have to get

involved. I have to listen to my colleagues on the Board. I imagine

I have to do a lot of reading. I have to visit postal offices. I think

in any new venture that you go into, there is a learning process.

I have programmed myself for a 6-month learning process. I hope

I can learn as much as I can in those 6 months that will help me

to be a contributor to the policy of the Board. But I think I have

to get up to speed real quick.

11

Senator AKAKA. Well, with the experiences you have had already

in the community, and capitalizing on your years of experience

with strategic and long-range planning in government and the private sector, have you had an opportunity to think about how you

would integrate this experience with your responsibilities as a Governor?

Mr. WALSH. Well, I think I would leave that up to the Chairman

of the Board, whatever committee he would want to put me on, but

my experience is in labor negotiations, contracts, leasing, purchasing, development, that whole area. So I would hope that is

where I might have a fit in those areas.

Senator AKAKA. I think you would assume very well the responsibilities of a Governor. The Postal Service has come a long way in

improving labor/management relations, but there remains much to

do, as we all know. Do you have any suggestions as to how postal

management and labor unions can find a common ground in this

area?

Mr. WALSH. Well, whenever you start the negotiation process,

there has to be honesty, integrity on both sides of the table. I think

once you develop that, then I think other things begin to fall into

place, but you have to have honesty and integrity to be the main

focus when you start off in negotiation. But I think every problem

can be solved.

Senator AKAKA. My last question, Mr. Chairman.

Because, Mr. Walsh, you have not been confirmed as a member

of the Board, and have not had an opportunity to review Postal Reform legislation, I feel that it would be unfair of me to ask you

about this issue. However, you would probably know that the bill

has the potential of privatizing mail delivery. Do you have any general comments—and again, I leave it to whether you care to answer

or not—comments on privatization, and any specific thoughts on

how privatization of certain postal functions could impact delivery

of mail?

Mr. WALSH. I really do not feel qualified to answer that directly,

but I will answer the privatization, that companies all over, and

cities and States all over the country are getting into. They are

looking at this: Is it feasible? What are the cost factors? There is

a whole list of items to be looked at. So I think the Post Office, just

like any other major business, will look at these avenues, and then

make a decision which will affect the future of the Post Office.

Senator AKAKA. Well, I thank you so much for your responses,

and those of Mrs. Daniels. I welcome you here and wish you well.

Mr. WALSH. Thank you very much, Senator.

Senator AKAKA. Thank you very much, Mr. Chairman.

Senator COCHRAN. Senator Akaka, thank you for your contribution to this hearing.

We appreciate very much the cooperation that each of you have

shown to the Committee and the confirmation process. We congratulate you, Mrs. Daniels, on your excellent and exemplary service previously as a member of the Board of Governors of the Postal

Service, and we look forward to working with you in the years

ahead, as you embark upon your second term.

12

Mr. Walsh, it is good to meet you, and I congratulate you again

on your nomination, and wish you well in your period of service as

a member of the Board of Governors.

Mr. WALSH. Thank you, Mr. Chairman.

Senator COCHRAN. The record will remain open for any additional statements Members may wish to place in the record. We

have no other questions at this time, but if additional questions

need to be submitted, we hope you will respond to them in a timely

fashion.

Mr. WALSH. I certainly will.

Senator COCHRAN. The hearing is adjourned.

[Whereupon, at 10:39 a.m., the Committee was adjourned.]

13

A P P E N D I X

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

Æ