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S. Hrg. 109–924

NOMINATIONS OF HON. JAMES H. BILBRAY,

THURGOOD MARSHALL, JR., AND

HON. DAN G. BLAIR

HEARING

BEFORE THE

COMMITTEE ON 

HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE

ONE HUNDRED NINTH CONGRESS

SECOND SESSION

ON THE

NOMINATIONS OF HON. JAMES H. BILBRAY AND THURGOOD MARSHALL, JR. TO BE GOVERNORS, U.S. POSTAL SERVICE, AND HON. DAN 

G. BLAIR TO BE CHAIRMAN, POSTAL RATE COMMISSION

NOVEMBER 14, 2006

Available via http://www.access.gpo.gov/congress/senate

Printed for the use of the 

Committee on Homeland Security and Governmental Affairs

(

(II)

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

SUSAN M. COLLINS, Maine, Chairman 

TED STEVENS, Alaska 

GEORGE V. VOINOVICH, Ohio 

NORM COLEMAN, Minnesota 

TOM COBURN, Oklahoma 

LINCOLN D. CHAFEE, Rhode Island 

ROBERT F. BENNETT, Utah 

PETE V. DOMENICI, New Mexico 

JOHN W. WARNER, Virginia 

JOSEPH I. LIEBERMAN, Connecticut 

CARL LEVIN, Michigan 

DANIEL K. AKAKA, Hawaii 

THOMAS R. CARPER, Delaware 

MARK DAYTON, Minnesota 

FRANK LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas

BRANDON L. MILHORN, Staff Director 

ASHA A. MATHEW, Counsel 

MICHAEL L. ALEXANDER, Minority Staff Director 

KRISTINE V. LAM, Minority Research Assistant 

TRINA DRIESSNACK TYRER, Chief Clerk 

(III)

C O N T E N T S 

Opening statement: Page 

Senator Collins ................................................................................................. 1

Prepared statement: 

Senator Akaka .................................................................................................. 21

WITNESSES 

TUESDAY, NOVEMBER 14, 2006

Hon. Christopher S. Bond, a U.S. Senator from the State of Missouri ............... 1

Hon. James P. Moran, a Representative in Congress from the State of Virginia ....................................................................................................................... 2

Hon. Brian Bilbray, a Representative in Congress from the State of California ..................................................................................................................... 4

Hon. James H. Bilbray to be Governor, U.S. Postal Service ................................ 6

Thurgood Marshall, Jr. to be Governor, U.S. Postal Service ............................... 7

Hon. Dan G. Blair to be Chairman, Postal Rate Commission ............................. 7

ALPHABETICAL LIST OF WITNESSES

Bilbray, Hon. Brian: 

Testimony .......................................................................................................... 4

Bilbray, Hon. James H.: 

Testimony .......................................................................................................... 6

Biographical and professional information ..................................................... 28

Responses to pre-hearing questions ................................................................ 33

Letter from U.S. Office of Government Ethics ............................................... 39

Blair, Hon. Dan G.: 

Testimony .......................................................................................................... 7

Prepared statement .......................................................................................... 67

Biographical and professional information ..................................................... 68

Responses to pre-hearing questions ................................................................ 74

Letter from U.S. Office of Government Ethics ............................................... 87

Bond, Hon. Christopher S.: 

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

Marshall, Thurgood, Jr.: 

Testimony .......................................................................................................... 7

Prepared statement .......................................................................................... 41

Biographical and professional information ..................................................... 44

Responses to pre-hearing questions ................................................................ 56

Letter from U.S. Office of Government Ethics ............................................... 65

Moran, Hon. James P.: 

Testimony .......................................................................................................... 2

Prepared statement .......................................................................................... 23

APPENDIX 

Hon. John M. McHugh, a Representative in Congress from the State of 

New York, prepared statement ........................................................................... 22

(1)

NOMINATIONS OF HON. JAMES H. BILBRAY, 

THURGOOD MARSHALL, JR., AND HON. DAN 

G. BLAIR 

TUESDAY, NOVEMBER 14, 2006

U.S. SENATE, 

COMMITTEE ON HOMELAND SECURITY

AND GOVERNMENTAL AFFAIRS, 

Washington, DC. 

The Committee met, pursuant to notice, at 10 a.m., in room SD–

342, Dirksen Senate Office Building, Hon. Susan M. Collins, Chairman of the Committee, presiding. 

Present: Senator Collins. 

OPENING STATEMENT OF CHAIRMAN COLLINS 

Chairman COLLINS. The Committee will come to order. 

This morning, the Committee is considering the nominations of 

former Congressman James Bilbray and Thurgood Marshall, Jr., to 

be Governors of the U.S. Postal Service and of Dan Blair to serve 

as Chairman of the Postal Rate Commission. We are also very 

pleased to be joined by the distinguished Senator from Missouri, 

whom I understand has an appointment that starts right now, so 

I am going to defer the reading of my opening statement and call 

upon Senator Bond for the purposes of an introduction. Senator 

Bond. 

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

FROM THE STATE OF MISSOURI 

Senator BOND. Madam Chairman, with great thanks and apologies, I have been summoned by the Leader for planning for the appropriations process, and I do appreciate the chance to go forward 

with introducing Dan Blair at his confirmation hearing, realizing 

that introducing Dan Blair to this Committee is a redundancy that 

is probably unnecessary, but I wanted the chance to brag on him 

for just a moment and his strong Missouri roots. 

Born and raised in Joplin, Dan received both his journalism and 

law degrees from the University of Missouri. His mother lives in 

Joplin, and he has close family in Kansas City. His wife, Michele, 

grew up in Kansas City, and in the interest of full disclosure, his 

niece, Amy, is a valued assistant in my office. So I do not come to 

this with a totally impartial view. 

First and foremost, Dan came to work in Washington for my very 

good friend, the late Congressman Gene Taylor, and Gene brought 

Dan to Washington, where Dan worked for him as chief counsel on 

2

1The prepared statement of Mr. Moran appears in the Appendix on page 23. 

the former Post Office and Civil Service Committee. Dan eventually 

became staff director, and in that job he worked on postal reform, 

which you, Madam Chairman, your Committee, and I have worked 

so hard to move forward. 

Dan’s appearance today is a homecoming of sorts since he served 

admirably as former Senator Fred Thompson’s senior counsel on 

the Committee for 4 years until the President wisely tapped Dan 

as part of his first-string line-up in 2001. And he has been with the 

Administration since that time as Deputy Director of Office of Personnel Management, and he served as OPM’s Acting Director for 

5 months last year. 

He is a well-known friend of the Committee, and when confirmed, I know he will bring to his new job a wealth of experience, 

having helped shape postal policy issues during most of his career. 

I cannot imagine a more qualified and competent appointee. I applaud his nomination, and I strongly endorse the appointment and 

hope the Committee and the Senate will act swiftly to approve this 

nomination. 

Thank you very much for hearing me, and thank you for your 

courtesies. 

Chairman COLLINS. Thank you, Senator. 

I am going to excuse Senator Bond now. I know he does need to 

leave, but I want to tell him that his strong endorsement of Mr. 

Blair means a great deal to this Committee. So thank you for being 

here. 

I would like to extend to our two Members from the House of 

Representatives the opportunity also to proceed now since I know 

that you, too, have very busy schedules. And I will confess that my 

staff has not advised me as to who has seniority in the House, but 

I assume that it is Representative Moran, so I am going to call on 

him next. Thank you. 

TESTIMONY OF HON. JAMES P. MORAN,1 A REPRESENTATIVE 

IN CONGRESS FROM THE STATE OF VIRGINIA 

Mr. MORAN. Thank you, Senator. Actually, I think Jim Bilbray 

has seniority. 

Chairman COLLINS. Good point. 

Mr. MORAN. I do appreciate the opportunity to be before you, 

Madam Chairman, and I am particularly pleased to present 

Thurgood Marshall, Jr., to the Committee and to speak in support 

of his nomination to the Board of Governors of the U.S. Postal 

Service. 

I have over 1,400 people in my congressional district that work 

in Postal Service facilities and, of course, have been very much 

pleased to be able to work with the Postal Service and its private 

sector counterparts throughout my career. So that is one of the reasons I am particularly excited about Mr. Marshall going on the 

Board. 

After moving to Virginia from New York City, the Marshall family has lived in my congressional district for over 30 years, and the 

nominee before you this morning and his two teen-aged sons have 

been constituents for most of those years. 

3

Mr. Marshall is a Northern Virginian, and we take pride in that. 

We first crossed paths when I was a freshman Member of the 

House and he was Director of Congressional Affairs for Vice President Gore. And in that position, he managed a team of congressional affairs specialists and made himself available to members on 

both sides of the aisle. He was superb in working in a bipartisan 

manner to achieve constructive legislative accomplishments. 

He is a quick study, an honest broker, and an intelligent and 

persuasive advocate. He used to be on Speaker Carl Albert’s staff 

and served on the staff of three different Senate committees. When 

he was working for the White House, Mr. Marshall was sensitive 

to the concerns that face all of the House and Senate Members on 

legislative issues, and even when there was not complete agreement, he would do everything he could to be responsive to our concerns. So he is a consummate professional. 

Prior to his White House service, Mr. Marshall’s experience included time spent on the staff of this Committee. That brought him 

in contact with many of the individuals and interest groups that 

regularly interact with the Postal Service Board of Governors, and 

he remained in contact with those groups and individuals over the 

years. 

I have no doubt that Mr. Marshall’s door is always going to be 

open to the stakeholders in the Postal Service if he is confirmed to 

the Board of Governors. And I know that his commitment to working in a bipartisan manner will serve the Board very well. Of 

course, he comes with valuable experience on a number of boards 

of directors. I am confident that as a member of the Board of Governors Mr. Marshall will not delve into areas that are the responsibilities of Postmaster Potter and the U.S. Postal Service management team, which I know is a concern that you do not want people 

on the Board micromanaging, and Mr. Marshall fully understands 

that. 

His prior membership on other boards of directors has given him 

important experience with issues, though, that involve organizational ethics and compliance, performance measures and accountability, personnel management, and government contracting. And 

that will serve him very well in terms of his oversight responsibilities. 

One final note, Madam Chairman, is to a personal tie that Mr. 

Marshall has to the Postal Service. His grandfather decades ago 

was a postman and sorted mail in Hawaii, on the island of Maui. 

So he has a personal connection, and for all these reasons, Madam 

Chairman, I believe that Thurgood Marshall, Jr., is extremely well 

qualified to become a member of the Board of Governors of the 

Postal Service and, if appointed, will serve the Board and the Postal Service with great distinction. So I do urge the Committee to 

give his nomination favorable consideration. 

Chairman COLLINS. Thank you very much, Congressman. We 

very much appreciate your strong endorsement of the nominee and 

your taking the time to be with us this morning to present him. 

Mr. MORAN. It was my pleasure. Thank you. 

Chairman COLLINS. Thank you. 

4

Congressman Bilbray, you have a familiar last name. It sounds 

quite similar to that of the nominee, and we are very pleased to 

welcome you as well. 

TESTIMONY OF HON. BRIAN BILBRAY, A REPRESENTATIVE IN 

CONGRESS FROM THE STATE OF CALIFORNIA 

Mr. BILBRAY. Thank you, Madam Chairman. 

Madam Chairman, it is an honor to appear before your Committee to support the nomination of my cousin, James Bilbray, to 

the Board of Governors of the U.S. Postal Service. James’ public 

service goes way back in many fields. He served in the Nevada National Guard, and actually his first elected position, a lot of people 

do not know, was as a regent for UNLV, University of Nevada, Las 

Vegas, otherwise known as the notorious ‘‘Running Rebels.’’ And 

being a graduate from that school and one of the first classes from 

that school, James was very proud to go back as an elected representative in that university, that college. 

Let me just say he served in a post as the Deputy District Attorney for Clark County, the Las Vegas area, and was chief legal 

counsel to the juvenile court. That is probably why he has done so 

well working with Members of Congress. [Laughter.] 

He also was an alternate judge—there goes your nomination, 

Cousin. 

Chairman COLLINS. A dangerous comment. [Laughter.] 

Mr. BILBRAY. He also was an alternate judge for the City of Las 

Vegas. He served since 1986 in the House of Representatives until 

a period when I was able to relieve him for a short period of time, 

and he is very well respected across the political spectrum, Madam 

Chairman. I think that if you talk to anyone who has served with 

him and has had the pleasure of serving with him, even those of 

us who have had the pleasure of being relatives, you will recognize 

that his performance in the past has proven that he is willing to 

work with everybody and anyone if their intentions are well and 

good. 

He is respected through those political spectrums, and I hope 

that you will consider him for the nomination and give him the 

consideration he deserves, even if he is a Bilbray. [Laughter.] 

Mr. JAMES BILBRAY. And a Democrat. 

Mr. MR. BILBRAY. Thank you. 

Chairman COLLINS. Thank you very much, Congressman. It is 

evident that public service runs very deep in the Bilbray family, 

and we are very pleased that you would take the time to be here 

today. 

I know that you, too, have a busy schedule, so I am happy to excuse you at this time. 

Mr. BILBRAY. Thank you, Madam Chairman. 

Chairman COLLINS. Thank you. I am now going to resume reading my opening statement, which I know you have all been waiting 

for while we diverted for these introductions. 

The Board of Governors of the U.S. Postal Service works in many 

ways like the board of directors of a large corporation. The Board 

selects the Postmaster General and together they direct the Postal 

Service, controlling its expenditures, conducting long-range planning, and setting policies on all postal matters. The Board’s priVerDate 0ct 09 2002 11:10 Jun 25, 2007 Jkt 032352 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 C:\DOCS\32352.TXT SAFFAIRS PsN: PAT
5

mary obligation is representation of the public interest. Fulfilling 

that obligation is a significant responsibility as the Postal Service 

faces increasingly complex policy choices. 

James Bilbray currently serves as a member of the Board of Governors. He was nominated on August 1, 2006, to fill the remainder 

of a term on the Board that will expire on December 8 of this year. 

At the same time, the President also nominated Mr. Bilbray for an 

additional 9-year term, expiring December 8, 2015. 

Mr. Bilbray has significant experience serving the public interest, 

as we have already heard from his cousin. I do want to add, in addition to his service as a representative of the people of Nevada, 

that he has held various other positions. I first got to know the 

Congressman when he served in 2005 as a member of the BRAC 

Commission. This is tough duty indeed, and I found him to be extraordinarily fair-minded as he weighed all of the testimony and 

the evidence that was brought before the Commission. And I very 

much appreciated the seriousness with which he approached that 

important task that had such consequences for communities across 

the United States. 

Thurgood Marshall, Jr., as we have heard, is a practicing attorney, and he is a partner with Bingham Consulting Group. Mr. Marshall also has a long history of public service from his work as a 

staff member on committees here in the Senate, to his service as 

an assistant to President Clinton. I also want to point out that he 

serves as a member of the Board of Directors for Corrections Corporation of America. I point this out because this is a very large 

entity. This business is responsible for some 15,000 professionals 

nationwide, and I think that experience as a director on a board 

of a large employer will prove invaluable as the Postal Service 

faces challenges in its workforce composition. 

The third nominee, Dan Blair, is no stranger to this Committee. 

We have worked very closely with him over the years. Senator 

Bond talked about his experience and background on this very 

Committee. I would note that he also served on the House Subcommittee on Postal Service, and he has done yeoman’s work at 

OPM as well. 

The Postal Rate Commission is an independent regulatory agency. Its five commissioners review the requests from the Postal Service for new domestic mail rates, fees, and classifications. It reviews 

these requests in public proceedings and then makes recommendations to the Board of Governors. I would also note that the Commission has the authority to propose changes in mail classifications 

and to investigate certain nationally significant complaints of postal customers concerning rates, fees, classifications, and services. 

The Commission issues advisory opinions in response to requests 

from the Postal Service to change its services in any substantial 

way, and the Commission hears appeals from postal customers concerning decisions to close or consolidate retail Post Offices. For 

those of us who represent rural States where this is often an issue, 

that is indeed an important responsibility of the Commission. 

The President has nominated Mr. Blair to become the Chairman 

of the Postal Rate Commission for a 6-year term that would expire 

in October 2012. 

6

Again, I think that the Members of this Committee know full 

well how absolutely vital the U.S. Postal Service is to our society 

and to our economy. Currently, the fiscal status and the prospects 

of further declines in First-Class mail volume threaten the national 

commitment to affordable universal service, a commitment that I 

share with the Board of Governors and with the Commission members. These nominees appear to possess the knowledge, the experience, and the talent that are required to deal with the considerable 

challenges that lie ahead for the Postal Service, so I welcome them 

to the Committee and I look forward to hearing their views this 

morning. 

I would note that each nominee has already filed responses to a 

biographical and financial questionnaire and has answered prehearing questions submitted by the Committee. They have had 

their financial statements reviewed by the Office of Government 

Ethics. Without objection, this information will be made part of the 

hearing record, with the exception of the financial data, which are 

on file and available for public inspection in the Committee offices. 

Our Committee rules require that all nominees give their testimony under oath, so I would ask that you each stand so I can administer the oath. Do you swear that the testimony you are about 

to give to the Committee will be the truth, the whole truth, and 

nothing but the truth, so help you, God? 

Mr. BILBRAY. I do. 

Mr. MARSHALL. I do. 

Mr. BLAIR. I do. 

Chairman COLLINS. Please be seated. 

I would now like to invite the nominees to introduce any family 

members that they have with them. We have already met the cousin of Congressman Bilbray. It is my understanding, Mr. Blair, that 

you do have some family members present, so I would invite you 

to introduce them. 

Mr. BLAIR. I have with me today my wife, Michele Blair, and my 

niece, Amy Blair, and a number of friends in the audience as well. 

Chairman COLLINS. Great. We thank you very much for being 

here today and for your family’s commitment to public service. 

I think those are the only family members present, so we will 

now proceed with statements, and we are going to start with Congressman Bilbray. 

TESTIMONY OF HON. JAMES H. BILBRAY, TO BE GOVERNOR, 

U.S. POSTAL SERVICE 

Mr. BILBRAY. Madam Chairman, I really don’t have an opening 

statement except to thank the Committee for working with me 

through this process and the fact that I believe that, having served 

in Congress, being part of this wonderful institution—which I 

guess when you look at what the public thinks about Congress, it 

is a little different than they do. But having served here and 

worked with such wonderful people on both sides of the aisle and 

in both Houses of Congress, I know that this is a great institution 

and one that has served this country well. 

I think I can bring a balance and maybe a working relationship 

with the committees on both sides of the aisle and both Houses. I 

know there has been misunderstanding over the years between this 

7

1The prepared statement of Mr. Marshall appears in the Appendix on page 41. 

2The prepared statement of Mr. Blair appears in the Appendix on page 67. 

group. And I think part of it I would like to mention in my opening 

statement is the fact that I remember I served on the Advisory 

Board of the Ex-Im Bank, and the Ex-Im Board of Governors—

which are full-time, by the way—they felt that they could not come 

down to the Hill and really discuss these issues because they 

thought they were crossing the threshold on lobbying. I think that 

if we could work together maybe between the Committee and the 

members of the Board of Governors, we can get past this gray area 

where the Board of Governors can have more input and when 

things begin, not at the end of a particular process so there is no 

feeling, well, why didn’t you come forward at an earlier time and 

talk to us and tell us what your concerns were. 

So I am hoping, almost like a liaison situation, where hopefully 

myself and others can work closer with the Committee so that we 

do not get to a position where we have misunderstandings on 

where the Board of Governors stands or individual members of the 

Board of Governors stand and the Committee. 

So I am hoping that, like I say, as a former member that I can 

bring something to this Board of Governors that can reach out to 

both the Senate and the House committees to work together to 

have a more efficient U.S. Postal System. 

Chairman COLLINS. Thank you very much. Mr. Marshall. 

TESTIMONY OF THURGOOD MARSHALL, JR.,1 TO BE 

GOVERNOR, U.S. POSTAL SERVICE 

Mr. MARSHALL. Thank you, Madam Chairman. I am honored to 

have been nominated by President Bush on the recommendation of 

Senator Harry Reid, and I am honored to appear before the Committee this morning. I am also deeply grateful to my Congressman, 

Jim Moran, for his kind words and for taking the time to join us 

this morning to introduce me. 

It is a special pleasure to appear before you under these circumstances because, as Congressman Moran mentioned, I have an 

important personal family connection to the Postal Service, and I 

have always had great respect for the Postal Service and for its employees. Indeed, the opportunity to work on postal issues during my 

tenure working at this Committee was one that I savored. 

While I was working at this Committee, I also learned the value 

of dispensing with formal statements, so I would ask that my full 

statement be included in the record, and I look forward to your 

questions. 

Chairman COLLINS. Without objection. Mr. Blair. 

TESTIMONY OF HON. DAN G. BLAIR,2 TO BE CHAIRMAN, 

POSTAL RATE COMMISSION 

Mr. BLAIR. Thank you, Madam Chairman. I want to thank you 

for conducting this hearing today. I appreciate the many courtesies 

that you and your staff and Senator Akaka’s staff and Senator 

Lieberman’s staff have extended to me during this process. I also 

want to thank Senator Bond for introducing me today as well and 

reminding me of my strong Missouri roots. 

8

I am extremely honored that President Bush would again nominate me for a position of public trust, and I greatly thank him for 

the confidence he has shown in me. Chairing the independent Postal Rate Commission is indeed a great privilege, and it is one that 

I undertake with great pride, should I be confirmed. 

I approach this assignment with a tremendous sense of respect 

and welcome the Committee’s support for the well-recognized independence and integrity that the Commission has, and I also note 

that the Commission has done yeoman’s work over the past few 

years making recommendations on the introduction of new postal 

products. I hope to continue that tradition. 

The current Chairman, George Omas, has done a good job in 

reaching out to the postal community and the Board of Governors. 

I plan to build on these efforts, and I look forward to working with 

him and my fellow commissioners as well. 

I have a longer statement that I would ask be included for the 

record, but, again, I greatly appreciate you giving me this opportunity to testify today, and I am pleased I was able to appear on 

this panel with nominees Goody Marshall and Jim Bilbray. 

Thank you very much. 

Chairman COLLINS. Without objection, your full statement will 

be included in the record. 

I am going to begin my questioning with standard questions that 

we ask of all nominees. 

First, 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? Mr. Bilbray. 

Mr. BILBRAY. Madam Chairman, I don’t know of anything. I 

served in the Postal Clerks Union when I was in college for 3 

months, but other than that, I don’t know of any potential conflict 

I might have. [Laughter.] 

Chairman COLLINS. Mr. Marshall. 

Mr. MARSHALL. No, Madam Chairman, I am not aware of any 

conflicts, and my office has established a process to help track that 

in the future. 

Chairman COLLINS. Mr. Blair. 

Mr. BLAIR. No, Madam Chairman. I did do an ethics letter for 

the designated agency ethics official, which the Committee has on 

file, and I would recluse myself from any potential conflicts. 

Chairman COLLINS. Second, do you know of anything, personal 

or otherwise, that would in any way prevent you from fully and 

honorably discharging the responsibilities of this office? Mr. 

Bilbray. 

Mr. BILBRAY. I don’t know of any. 

Chairman COLLINS. Mr. Marshall. 

Mr. MARSHALL. I know of nothing. 

Chairman COLLINS. Mr. Blair. 

Mr. BLAIR. No, Madam Chairman. 

Chairman COLLINS. And, third, 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? 

Mr. Bilbray. 

Mr. BILBRAY. I have no hesitation, even if it is unreasonable. 

[Laughter.] 

9

Chairman COLLINS. Mr. Marshall. 

Mr. MARSHALL. I have no hesitation either. 

Chairman COLLINS. Mr. Blair. 

Mr. BLAIR. None whatsoever. 

Chairman COLLINS. Thank you. 

I am now going to begin the non-standard questions. All of you 

have served on Capitol Hill for a number of years, and I have to 

tell you that I think that is a tremendous advantage. I mentioned 

to Mr. Marshall earlier—and I have talked to Congressman 

Bilbray—that there has been tension between the Board of Governors and this Committee, tension that I think could have been 

avoided by earlier and more frequent communication. I am pleased 

to hear your comments, Congressman, that this is one of your 

goals. 

I would like to hear from all three of you how you think the Postal Board of Governors in particular, but also the Commission, when 

appropriate—obviously, the Commission is an independent regulatory agency and has a different role, a more constrained role in 

terms of communications. But I would like to hear each of you address the issue of understanding the congressional role in establishing overall postal policy and the laws under which you operate. 

Mr. Bilbray. 

Mr. BILBRAY. Well, I think it is generally accepted, the fact that 

the Legislative Branch certainly has oversight and helps establish 

policy for the Board of Governors. In fact, one of the things that 

I have recommended to the Chairman—and I also did to other 

Members that I spoke to last week—was the fact I thought we 

should establish a subcommittee that is just basically aimed at 

working with the Congress. I think, and no question in my mind, 

that the general policy of where the Postal Service goes in the future, the Congress is the one that sets that policy, and then we 

carry it out. That may be different than some of my colleagues’ 

feelings, but that is mine. 

Chairman COLLINS. Mr. Marshall. 

Mr. MARSHALL. Well, I certainly have great respect for the role 

that the Legislative Branch plays with regard to oversight and policy. I also think that my experience working in and around Capitol 

Hill can be a valuable asset to the Board. It has taught me the important role that politics can play in the policymaking process. It 

has taught me the value of taking into account constituent needs. 

And also it has taught me the value of polling, messaging, and customer surveys in that process. 

Chairman COLLINS. Thank you. Mr. Blair. 

Mr. BLAIR. Well, Madam Chairman, I appreciate the role that 

you see the Commission playing, and I approach this from the perspective that clear, open, and regular communications between the 

regulator and the Congress is essential if the regulator is going to 

accomplish the role that you expect of it. 

Having come from Capitol Hill, you understand that the Commission implements the policy that the policymakers enact, and understanding the congressional intent in specific areas, understanding congressional concerns certainly go far in helping the regulator effectively perform its role. 

10

Chairman COLLINS. Mr. Blair, in your roles as both the Deputy 

and the Acting Director of OPM, you have testified before this 

Committee twice on the subject of postal reform, and both times 

you presented the Administration’s case very strongly for making 

the Postal Service the sole agency that would be responsible in the 

Federal Government for retroactively assuming the responsibility 

for the Civil Service Retirement System pension costs related to its 

employees’ military service. I am sure that you remember that testimony, perhaps not fondly. [Laughter.] 

After 3 years of extensive debate on this issue, in July, as part 

of an extraordinary effort to advance postal reform, the Administration, to its great credit, agreed to revise its position on that 

issue and that the entire military pension obligation should indeed 

be returned to the Department of the Treasury, as I had long advocated and as Senator Carper had long advocated. 

To what extent, if any, were you involved in the Administration’s 

final decision on this issue? 

Mr. BLAIR. Well, I think that there were internal discussions 

going on at all points during the process, but I believe that it was 

important for the Administration in reviewing the overall package 

of postal reform to determine that, in order to move it forward 

some parties would have to give, some parties would have to take. 

And at that juncture, it was most important that the budgetary hit 

be minimized as much as possible. 

Recognizing that the Administration took a very strong position 

on that end, I think it is to the Administration’s credit in pushing 

forward the postal reform debate that we saw an effort to compromise in order to move the bill forward, and that the Administration wants to see comprehensive postal reform enacted. 

Chairman COLLINS. And as I said, I really credit the Administration with continuing to work with us. I have had numerous meetings with White House officials, and I am really pleased that those 

meetings have been so constructive and produced such good results. Unfortunately, despite 31⁄2 years of work by Senator Carper 

and myself, success in crossing the finish line has proven far more 

elusive than we ever would have imagined. 

If, however, as we hope, postal reform is enacted before the end 

of the year, the Commission will have a very heavy agenda for 

2007. You will be charged with implementing an entirely new ratemaking process while deliberating on a pending rate case during 

the first quarter of the year. 

As the new Chairman, how would you prepare yourself to deal 

with that very heavy agenda? 

Mr. BLAIR. It is a heavy agenda, and it is one that the current 

Commission has been contemplating and working on. I understand 

that there have been working groups formed at the Commission. 

But I want to make sure that, if confirmed, once I go down there 

to properly analyze and explore to what extent the resources are 

available to carry out this mission, to make sure that we have 

those in place because the Commission is going to undertake a tremendous new role and will want to make sure that we meet the 

congressional intent in assuming those responsibilities. 

I have no doubt in my mind that we can undertake it. Ever since 

the process of postal reform first began, it was contemplated that 

11

in giving great new flexibilities to the Postal Service, Congress 

would also have to balance those with an empowered new regulator. And I think that Congress is doing the right thing in proposing that in its legislation, and I am ready, if confirmed, to tackle 

those new problems. And I would look forward to it. 

Chairman COLLINS. Do you believe that the Commission at 

present is adequately staffed and has sufficient resources to take 

on these new responsibilities? 

Mr. BLAIR. I would have to get down there to look at the staffing 

levels and determine if we have the right mix of skills available 

down there, if we have the right people with the right kind of talent. So I want to reserve judgment before I get down there, but I 

think given the new role for the Commission, it certainly envisions 

a more robust entity than what it is now, given that its new responsibilities are going to be much greater. And I think that going 

into that with my eyes wide open and realizing where Congress 

wants it to go would be a great benefit. 

Chairman COLLINS. Mr. Bilbray and Mr. Marshall, the CollinsCarper postal reform bill is designed to foster more efficient postal 

operations by giving the Postal Service much more flexibility than 

it has now to set its own prices and to implement revised operating 

procedures. For market-dominant products, the average increase 

for each class of mail would be capped at the level of the CPI. A 

key assumption is that the level of services provided by the Postal 

Service will remain sufficient to meet the personal and business 

needs of the public. A major concern of mailers is that when the 

Postal Service projects that its costs are likely to increase faster 

than inflation during some period of time, it might decide to balance its budget by cutting services instead of by implementing 

more efficient operating practices. Our bill attempts to avoid that 

undesirable outcome by requiring the Postal Service, in consultation with the Postal Rate Commission, to develop and define service standards. 

Do you agree with the recommendation, the provisions in this 

bill, that the Postal Service should establish service standards, performance goals, and report those on a regular basis on the Postal 

Service’s website so that your customers, the Congress, and all interested parties can monitor the Postal Service’s performance? Mr. 

Bilbray. 

Mr. BILBRAY. Having served on the Board now for 3 months—

this is my second meeting, actually, after being confirmed, this has 

been discussed, and I didn’t see and didn’t feel a lot of opposition, 

and I didn’t feel opposition to this particular point. 

One point, Madam Chairman, that I think was a concern is the 

cap—not the cap on the inflationary rate, but for each class. I know 

that the discussion has been that we—and I have asked for an 

opinion or an analysis of all classes, are they carrying their own 

load. And there is a feeling that there may be some classes within 

the Post Office that are maybe even losing money and that, if we 

cap that at the CPI, maybe the CPI should be across the whole 

board. In other words, the entire raise cannot be more than the 

CPI. But there might be some sub-classes within the overall Post 

Office that might have to be raised higher to bring them equal. 

12

An example of that is—and I have not got the figures yet because 

it has not been provided to me yet—newspapers and magazines, 

that there is some feeling within the Administration of the Post Office that may be losing money and that we would never be able to 

catch up if each class is capped with the CPI. 

I have not seen the figures yet, so I don’t know if that is correct 

or not. But those are the kind of things that are of concern. But 

reporting to Congress and reporting to the public what we are 

doing in each area is not an objection of mine, and I think the public right to know is more important than the privacy of the system. 

Chairman COLLINS. Mr. Marshall, what are your views on the 

idea of having service standards that would be published and available to the public? 

Mr. MARSHALL. I believe the Postal Service should provide customers with useful and timely data regarding service standards 

and guidance as to whether those standards have been met. I understand that the Postal Service is responsive to the Government 

Performance and Results Act (GPRA), and I would expect the 

Board of Governors to play a role in matching those standards, consistent with the GPRA process, and applying those standards to 

postal management and postal practices. 

I recall that during President Clinton’s Reinventing Government 

Initiative there were only three agencies that first stepped to the 

plate and offered to make performance standards public, and the 

Postal Service was one of those three agencies. And I think that 

speaks well to its willingness to make those standards available to 

the public in a timely manner. 

Chairman COLLINS. I want to turn to the issue of labor relations. 

This has been a longstanding postal issue, the need to improve 

labor-management relations within the Postal Service. Obviously, if 

anyone looks at the Postal Service, you see that a great deal of the 

costs are personnel related. You would expect that given the mission of the Postal Service. 

Congressman Bilbray, I am actually happy to learn that you 

were a member of the postal union when you were in college for 

a short time because maybe you will bring some extra credibility 

to dealing with that issue. But is there anything in particular that 

you think the Postal Service should be doing to encourage and facilitate greater cooperation between postal managers and the postal 

unions? Mr. Bilbray. 

Mr. BILBRAY. I have not—and, of course, I have talked to members, the heads of the different postal unions, the Postmaster General, his assistant. I was not aware that there is really any problem 

right now. They seem to like each other. The Postmaster General 

comes out of the system. He is not a newcomer into it. But, again, 

I have only been there for one meeting, the last meeting, and have 

not had time since I have been on the Board to really sit down and 

discuss this issue with members of the union as well as the Postmaster, except the fact they are just beginning, I guess, negotiations starting next week, and I think we will get a good feeling of 

how those negotiations are going. But I think good relations with 

labor—and I have always had a good relationship, even as a Congressman, with labor. And I really think that they are the backVerDate 0ct 09 2002 11:10 Jun 25, 2007 Jkt 032352 PO 00000 Frm 00016 Fmt 6633 Sfmt 6633 C:\DOCS\32352.TXT SAFFAIRS PsN: PAT
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bone of our business. And so I feel a happy postman is a good postman. So I am hoping that improves. 

Chairman COLLINS. Also, having dealt extensively not only with 

the unions but the Postmasters’ associations, there is a lot of expertise there. There is a lot of wisdom in these groups, and I think 

most—not all, but most of the leaders of those groups recognize 

that the stakes are very high and they want the Postal Service to 

be a strong, economically viable institution that can continue to 

serve our country for centuries into the future. 

So I think the more outreach that can be done, the better. I realize it is difficult during labor negotiations, perhaps, to have those 

kinds of discussions, but that is something I would urge. 

Mr. Marshall. 

Mr. MARSHALL. Well, as with any longstanding institutional relationship, particularly one with such a long and storied history, I 

suspect that in this instance an additional set of eyes and ears, 

particularly those of an independent member of the Board of Governors, can be valuable. And so I would hope that those of us who 

have an opportunity to serve on the Board of Governors will be 

able to help to encourage a cooperative spirit and to provide guidance, taking into account what we are able to pick up through 

those independent eyes and ears. 

Chairman COLLINS. I think there is still work to be done in this 

area, and as evidence of that, I would share a personal experience 

where the Maine congressional delegation was recently invited to 

the opening of a new postal facility in southern Maine. We arrived 

to find an informational picket in place where members of the Postal Workers Union were picketing over what they felt were unfair 

schedule changes, adverse working conditions, and some safety concerns. 

Needless to say, that took the celebration out of what was supposed to be the celebration of a state-of-the-art new facility, and 

the members of the delegation, including myself, decided not to 

participate. 

I felt bad that those issues could not have been worked through 

earlier and that there was not better communication between the 

local managers and the union representatives. But as I will share 

with you, I have found that, for the most part, all of the various 

associations, whether it is the postal supervisors or the postmasters or the various—the Mail Handlers Union, the rural letter 

carriers, the letter carriers—I am undoubtedly forgetting one, but 

there are so many of them, and for the most part—there are always exceptions, but for the most part, they really care about sustaining the Postal Service for the future and working together, and 

they understand the need for legislation as well. 

One of the major challenges is, of course, the decline in FirstClass mail volume. This is a dangerous decline given how important First-Class mail is to support the institutional costs of the 

Postal Service, and, unfortunately, we see the Postal Service in a 

continuing decline as people turn more and more to the Internet 

for bill paying and for other services. 

Declining First-Class mail volume reduces the revenue available 

to pay for institutional costs and places upward pressure on postal 

14

rates, which in turn leads to further reductions in First-Class mail 

volume. 

I think this needs to be a primary focus of the Board, and I realize you are both just getting into these issues. But, Mr. Bilbray, we 

will start with you since you are on the Board, albeit a new member. Are there ways that the Postal Service can reduce this very 

disturbing trend? 

Mr. BILBRAY. Well, I think there are a couple. One is we are 

looking at new businesses within the purview of the postal system. 

The Postmaster General has said at the last meeting that we really 

have not done the job on international mail that we should. International mail could be a real profit center for the Post Office, and 

I think if we adjust it as we go along and find other areas within 

the job description of the postal system that we can help by bringing revenue up there, it would take the pressure off First-Class 

mail. Because I agree with you, I think First-Class mail is not 

only—I just do not see any increase in the percentage of it. I think 

it is going to go down. And, again, the worst thing when you are 

out—I mean, everybody that knows I am on the Board of Governors now, the first thing anybody says to me, ‘‘Don’t increase my 

First-Class mail.’’ They don’t call it ‘‘First-Class,’’ but I know what 

they mean when they say ‘‘mail.’’ And I tell them about the proposal of forever stamps. Maybe this kind of pacifies them a little 

bit. But it is a sore spot with the general public, and we know that, 

and it causes more decrease. 

The other thing is, of course, more efficiency, and a lot of it is 

done through automation, and some of the new automation programs really—we have reduced—the Post Office has reduced over 

100,000 employees over the last 10 years with more efficient systems. There is not a lot more to give, but there will be more that 

will go down unfortunately, and I don’t think any postman or clerk 

or mail handler will ever be replaced at this point, but they will 

be replaced by attrition, and we get the cost of the service down. 

But, again, new products like an increase in international mail, 

people kind of look to the Post Office, and they go with FedEx or 

DHL, and they go with these other companies because they think 

that they can have a better delivery system, get it there faster. 

We are cheaper. We can do it as well as they can. And as people 

become aware of this, I think we can increase our revenues for the 

Post Office and keep the costs down, and hopefully we won’t have 

continually this spiral of First-Class mail, which is, again, as you 

increase the price, you reduce the volume and it keeps going down. 

So I think that I am very impressed with the Administration of 

the Post Office itself, the Postmaster, his assistants, and the people 

around him. And they are very innovative, and I think that we are 

going to have to work on this over the years to keep the price 

down. And hopefully when I tell people, the Postal Commission, 

those dirty guys over there, they are going to raise it to 42 cents, 

it is not us, it is them. 

Mr. BLAIR. Thank you. [Laughter.] 

Mr. BILBRAY. They really get a little excited about it. Let’s put 

it that way. 

Chairman COLLINS. Thank you. Mr. Marshall. 

15

Mr. MARSHALL. Madam Chairman, I believe that the bottom line 

is that the decline in First-Class mail volume absolutely needs to 

be addressed, not solely because a huge portion of the Postal Service’s institutional costs are offset by First-Class mail, but also because high-quality First-Class mail service has been a hallmark of 

the Postal Service and has been a significant reason that the Postal 

Service has engendered such confidence from our citizens. 

We are all acutely aware that the challenge is made all the more 

difficult by the national security challenges that the country faces, 

and as I stated in my prepared remarks, I would hope that the 

Postal Service can receive budgetary assistance on security issues, 

particularly research and development regarding the bioterror 

threat and related threats. 

Chairman COLLINS. Thank you. 

All three of you answered some questions in the pre-hearing 

questionnaire about Post Office closings. One area that is of particular interest to the general public and to the Congress is the 

transparency of those issues. Do you feel that it is appropriate for 

the Postal Service to be as transparent as can be about which Post 

Offices and postal facilities it plans to close and the reasons for 

closing them? Do you also feel that it is appropriate for the Postal 

Service to develop and publish standards that it plans to use to determine which facilities to close? Mr. Blair. 

Mr. BLAIR. I have never heard a good argument against transparency. I think it is always important for a government institution 

to be as transparent as possible so that the public has a right to 

know and understands what it is doing. Developing clear guidelines 

in this area and adhering to them I think would go a long way toward solving the confusion that surrounds this area. 

There is a clear statutory area in the closing of Post Offices, but 

with leased and rental facilities it gets much murkier. And for 

some communities, the leased or rental facilities are the only retail 

outlet they have. And so I think transparency and giving what the 

clear guidelines are that the community can follow would be helpful. 

Chairman COLLINS. Mr. Marshall. 

Mr. MARSHALL. I understand that the Postal Service has recently 

implemented a public meeting process during its efforts to consolidate mail processing facilities, and I certainly believe that is an important and valuable step. I also recognize that what is called for 

is a two-way dialogue in the process, and so I believe that providing standards for public analysis is an important step toward 

transparency. 

I would also expect the Board of Governors to receive regular 

briefings and consultation on service measurements and consolidation options and to work closely with management in analyzing 

how those compare. 

Chairman COLLINS. Mr. Bilbray. 

Mr. BILBRAY. Closing anything is tough, as I knew in the 2005 

BRAC Commission. One of the things that, of course, I thought was 

very effective was the fact that many of us traveled to different facilities and met with the people, saw the facilities. As the Senator 

well knows, the Pentagon did a miserable job on doing their part 

of the BRAC, in many cases we found out that no one had ever visVerDate 0ct 09 2002 11:10 Jun 25, 2007 Jkt 032352 PO 00000 Frm 00019 Fmt 6633 Sfmt 6633 C:\DOCS\32352.TXT SAFFAIRS PsN: PAT
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ited the facilities; in fact, the Pentagon admitted that in some 

places they Googled the information and decided to close a certain 

facility. 

Nothing, I think, when you go to the Post Office system, when 

you go out to the rural areas in Nevada, Utah, and those areas, 

that little rural Post Office is as important to them as the big metropolitan Post Office in the middle of a big city. 

I know that the Board and the Chairman have encouraged people visiting and members of the Board going out to some of these 

areas before we close. And I think we should do more of that to 

allow local input. And I know that you can look and say there is 

a little Post Office in Lamoille, Nevada, and it is 20, 30 miles from 

Elko. And it is not cost-efficient. It costs us money to run that facility. It does not take care of itself. But to the people around 

Lamoille and Elko County, that is an important facility. In the 

middle of winter to drive, it is like Maine, driving 30 miles in the 

snow and the bad weather to do certain things, to a Post Office, 

is tough. 

The problem, we have a part-time Board, and it sometimes gets 

very difficult. We come almost every month to Washington to meet 

on these issues. To get members to go off to Point A, Point B, Point 

C to meet with people is tough. But we have got to do more of that, 

and it may be one of the reasons that we do not do as much and 

we do not meet as much as we possibly can is somebody told me 

at the Post Office that we reach a Hatch Act situation where we 

are all political appointees, but when you have so many meeting 

dates and you do so many things, even if we are only paid up to—

what?—40 meetings. But if you reach over a certain limit, you 

reach the Hatch Act, and you cannot do that anymore. It might be 

something we might want to adjust down the line because I think 

it is important that we reach out. 

In your facility, Portsmouth, New London, these kind of things, 

probably without a BRAC Commission that went out and looked at 

it, and if just the Pentagon could do it, those facilities probably 

would have been closed by the information just provided by the 

Pentagon in both those facilities. But as BRAC Commissioners 

went out and looked at these facilities, saw the need, saw the errors that were made in the projections by the Pentagon, we reversed those decisions, as you well know. And we did that across 

the country in many cases, even though we backed about 80 percent of the Pentagon recommendations. 

I think we need to do something similar here where we can talk 

to people in Lamoille and find out, yes, it is not profitable to keep 

this facility open, but, on the other hand, there is something beyond economics when it comes to these rural Post Offices. And I 

imagine Maine has that problem worse than many States because 

of the winter weathers and inability to go to the bigger cities and 

do your postal business. 

Maybe we can come up with more efficient ways, but those little 

rural postmasters are sometimes the key in a community. I know 

my great aunt in Louisiana back in the early 1900s was the postmaster of Ethel, Louisiana, and she was kind of a center of the 

community. She was also the midwife, too. But these are important 

situations, and I am very hesitant to close rural Post Offices beVerDate 0ct 09 2002 11:10 Jun 25, 2007 Jkt 032352 PO 00000 Frm 00020 Fmt 6633 Sfmt 6633 C:\DOCS\32352.TXT SAFFAIRS PsN: PAT
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cause I think they are the backbone of the postal system. But I 

imagine some have to be closed. I don’t think we will ever have a 

BRAC Commission for the Post Office system, but we can certainly 

get more involved, and maybe we need to work together with the 

Committee to find out how we do more meetings, how we go out 

and do these kind of things without crossing a threshold that puts 

us into a situation because—of course, I have got so many friends 

running for the Democratic nomination for President right now, I 

wish I was limited by the Hatch Act. 

Chairman COLLINS. Thank you. It is obvious that you understand 

that issue very well, and I love that your relative both could deliver 

babies and deliver the mail. [Laughter.] 

But that is an important issue. A lot of times the rural Post Office also is the town center. It is what brings people together. And 

I do have a deep appreciation, representing a large rural State, of 

how important those rural Post Offices are. So I very much appreciate your comments on that. 

Mr. Marshall, I want to switch to one final issue, and I touched 

on this issue when we met in my office. The Postal Service has occasionally been criticized for offering products or services that are 

not directly related to the delivery of mail. And photocopying is one 

example, passport photo taking is another; postal money orders is 

a third; selling cards or wrapping materials is yet another example. 

This is a difficult issue because in some very rural areas, the 

Post Office may have the only photocopier available for miles, and 

it is a real public service that you can go to the local Post Office 

and get something copied and pay a modest fee. 

On the other hand, in other communities you have small businesses that are available, willing, and able to provide these services, and they do not like the idea of having to compete with the 

Postal Service, which has, obviously, some competitive advantages 

and has a monopoly on First-Class mail, and it creates an unfair 

playing field for a small business that is trying to compete with the 

same service. 

What are your thoughts on how the Postal Service can strike the 

appropriate balance and not unfairly compete with small businesses? 

Mr. MARSHALL. Well, this is certainly an issue that I want to 

study further. I am interested in learning how the Postal Service’s 

private sector competitors have lined up their product lines. I am 

also interested in learning more about the Postal Service’s product 

lines, usage, and costs associated with what they are engaged in 

with their product lines. And I am interested in customer survey 

data. 

In light of my discussions with you, Madam Chairman, I am also 

very sensitive to the impacts that any such decisions would have 

on small businesses. I certainly recognize that, as Governor Bilbray 

has mentioned and as you schooled me on our visit, Post Offices do 

indeed serve as community focal points in many jurisdictions. And 

to the extent that there is a sliding scale that could be imposed in 

terms of the degree to which those services may be heavily relied 

upon in certain communities but less so in others, hopefully a balance point can be achieved on that sliding scale that takes those 

sensitive issues into account, so that services can be provided 

18

where appropriate, but businesses and local small business efforts 

are not threatened. 

Chairman COLLINS. Thank you. Mr. Blair, what are your 

thoughts on that issue? 

Mr. BLAIR. Well, I think you eloquently stated the balancing between a large governmental entity which in some people’s view 

would have the ability to cross-subsidize competitive services 

versus the ability of government to provide a basic service when it 

cannot be provided by the private sector. 

I think what you want to do is—how do you strike that balance? 

I think that you have to look at it over a period of time. Maybe 

it is something that the Postal Service introduces, and then as the 

private sector enters the market, it slowly withdraws. I do not have 

an easy answer for you at this point, but you certainly recognize 

the public policy implications that the Postal Service competing 

with the private sector bring to the forefront. That was something 

that was struggled with in the original postal reform bill. I know 

that your postal reform bill addresses that the U.S. Postal Service 

will be only offering postal services. Sometimes when you cut the 

baby in half, neither party is completely satisfied, and it doesn’t 

satisfy all parties. But recognizing the breadth and scope of the 

Postal Service and its ability to impact communities, both positively and negatively, I think that your approach in H.R. 22 took 

the right tack. 

Chairman COLLINS. Thank you. Mr. Bilbray. 

Mr. BILBRAY. I laugh at a story when I was in Congress. You 

know how sometimes we provide flags that have flown over the 

Capitol? I remember getting a letter from a couple of businesses 

that I should stop doing that because I was interfering with their 

selling of flags at their business. The same thing here in the Post 

Office. The fact is when I walk into a Post Office, I like the idea 

that you can buy the boxes, you can buy the packing material, you 

can buy the paper. I think these are related items to the Post Office. In some Post Offices, you can get passport pictures, and in my 

case, I can go down to the corner to the CVS or the Walgreen and 

get passport pictures. But in some communities you can’t. 

I think you have got to be very careful in trying to interpret 

what are Post Office-related businesses. And I think that what I 

have seen in the Post Office when I go into the Post Office, boxes 

that fit my package, I will come in, ‘‘You got a box that will fit it?’’ 

I don’t think it is a real conflict with small business. I understand 

if you go down to the Post Office to get boxes, there is a place by 

the 7-Eleven down at the corner, and if you want to buy it down 

there and you want to package it down there, it costs about twice 

as much as if you went to the U.S. Post Office, and I am sure those 

kind of businesses would like to see us get out of the boxing and 

the packaging and the wrapping and so forth because they have to 

make a profit. But it is very much more expensive, and I think 

most of my people in my district, especially seniors, would rather 

go to the Post Office and get what they consider a reasonable deal 

and a full-service Post Office where they can help them package, 

and the people are very accommodating, help you find the right 

size box, the right size bubble wrap, and so forth. 

19

So maybe I am just not as concerned as my colleagues are about 

our competition because if we want to keep First-Class mail down, 

we have got to expand into areas that are related. And I think 

what the problem is going to be here with the Committee, and 

maybe some others, is what is Post Office-related business. To 

some people, some of the stuff we do, it maybe is not. But I think 

it is related to the Post Office, and I think it is a service we provide 

to the public. 

Chairman COLLINS. I think that is going to be an ongoing debate, 

and I very much appreciate hearing your insights on it. 

I want to thank all of the nominees for appearing here today and 

for your willingness to serve. The Postal Service is such a vital institution to this country, and I think it is absolutely vital that we 

have highly qualified individuals on the Board of Governors, on the 

Postal Rate Commission, and I believe that the President has chosen very well in sending your nominations before this Committee. 

So based on what I have heard today, I look forward to supporting 

all three of you and quickly advancing your nomination to the full 

Senate. It is my hope that the Committee will be able to favorably 

report you later this week and that we can encourage the full Senate to confirm you shortly thereafter. 

Without objection, the hearing record will be kept open until 

noon tomorrow for the submission of any written questions or 

statements for the record. Should there be any additional questions, I would encourage you to turn those around very rapidly because the Committee cannot vote to report you until we get your 

answers back to any additional questions. 

I do not expect, judging from the widespread participation in this 

hearing this morning, that there will be a great number of questions. Again, thank you for your service, both past, present, and future. 

This hearing is now adjourned. 

[Whereupon, at 11:05 a.m., the Committee was adjourned.] 

(21)

A P P E N D I X 

PREPARED STATEMENT OF SENATOR AKAKA 

Thank you very much, Madam Chairman. I join you today in welcoming our distinguished nominees, who I believe exemplify the best in public service. I also welcome their families and friends to the Committee this morning. And of course I welcome our Congressional colleagues who have introduced our nominees. 

I am pleased to be acquainted with all three of these fine individuals. Mr. Bilbray 

and I knew one another in the House, and Mr. Marshall, whose mother is from 

Maui and a friend of mine, can be called a son of Hawaii. I am pleased to have 

worked with Mr. Blair in his capacity as Deputy Director of the Office of Personnel 

Management. 

I believe all three nominees have the professional experience and qualifications 

to serve in the positions to which they have been nominated. They understand that 

sound management is key to the vitality of the U.S. Postal Service, and they share 

my belief that effective management demands accountability and transparency. 

That is why I look forward to working with them, if confirmed, in meeting the 

challenges and opportunities facing the Postal Service. 

I urge Mr. Blair, who will be Chairman of the Postal Rate Commission, to continue the gains made by the current PRC Chairman George Omas in creating an 

open environment and maintaining good relations with the Postal Board of Governors. I also urge Mr. Bilbray and Mr. Marshall to be independent and to express 

their opinions on how the Postal Service should be run today and in the future. 

Thank you, Madam Chairman. I look forward to moving these nominations quickly. I wish all three of you well. You may be assured I support acting on your nominations quickly.

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80


32352.059
81


32352.060
82


32352.061
83


32352.062
84


32352.063
85


32352.064
86


32352.065
87

Æ


32352.066