Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-06
Bitter Fight in House
Seen Over Increases
In Most Postal Rates
BY B. l. Livingstone
Associated Press Stoff Writer


The administration-b a c k e d
bill to boost postal rates nearly
a quarter billion dollars q year
was over it's first big hurdle to-
day-but the toughest part of
the course lay ahead.
The House Post Office Com
mittee yesterday voted increases
affecting the users of virtually
every class of mail except parcel
post, which previously was in
creased by separate action.
The biggest share of the raises
would be borne by ordinary let
ter writer's. The bill would raise
the cost of mailing out-of-town
letters from three to four cents
to bring in $3.50 million more
revenue a year. It also would
add another penny to the cost of
the present six-cent air mail
stamp, for a $156 million an
Iludl revenue gam.
Net Rise of S24O Million.
Newspaper and magazine pub
fishers would have an additional
80 per cent added to their mail
ing costs, or about $15.6 million,
while business users of the mail
would have to pay approximately
$50 million more a year.
The overall net increase in
revenues is estimated at between
$240 and $245 million a year.
The rate bill is certain to pre-
cipitate bitter fight when it
reaches the floor of the House
later in this election year session.
Postmaster General Summer
field, with the support Of Pres
ident Eisenhower. asked Con-
gress to approve the increases to
bring the financial operation of
the Post Office Department
nearer the break-even point.
Its current deficit is nearly
half billion. and it's anticipated
deficit for next year is more than
$500 million.
Increases in newspaper and
magazine rates would amount to
approximately 80 per cent in
three yearly increments of 10
per cent, effective April /, 1855,
1856 and 1857.
Business users of the mail
for direct mail advertising.
circulars. catalogs and the like
while facing a possible increase
won an important concession
when the committee left I'M
changed the present lucent
minimum piece rate on bulk
mail.
Third Glass Changes.
Third class rate changes
would be:
l. Increase bulk mail charges
from IA to 16 cents a pound.
2. Establish the rate on in
dividual pieces of third class
mail at 3 cents for the first
ounce. and IL cents for each
additional ounce.
3. Increase the third-clasS fee
for bulk mailing privileges from
$40 to $50 a year, with the
privilege of paying at the
quarterly rate of SIS.
4. Raise minimum charges on
odd-size pieces from 3 to 5 cents.
More Air Service Seen.
There were prospects, how
ever, that mail users may get
more air service for their letters
at surface postage rates.
The Civil Aeronautics Board
yesterday proposed a one-year
experiment in moving first-class
mail on local service airlines.
1t ordered IA of the regional
airlineS to show cause why they
should not be required to carry
surface mail at a rate of 80 cents
a ton mile. The lines them
selves had asked for such con-
tracts. which could 90 into effect
IN 10 days if no objections are
made. The Post Office has eX-
favor for the project.
Already most first-class mail
IS travelling by air on nonstop
routes between Chicago and New
York and Chicago and Wash
ngton.