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Copyright 1999 The Tribune Co. Publishes The Tampa Tribune  
The Tampa Tribune

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October 11, 1999, Monday, FINAL EDITION

SECTION: NATION/WORLD, Pg. 16

LENGTH: 421 words

HEADLINE: The Postal Service and its competitors;


BODY:


Since its inception 224 years ago, the U.S. Postal Service has faced competition. First it was  the Pony Express, then the telephone, then private delivery services and then fax machines.

Today, with the increasing use of the Internet - an information and service entity that is both  instant and paperless - it may be facing its biggest challenge yet.

Postmaster General William J. Henderson is not blind to this new reality. Earlier this year he  ordered spending cuts totaling more than $ 800 million. Now he wants to expand the USPS into more  nonmail ventures as a means of keeping it competitive. Such ambitious changes don't sit well with  many members of Congress, and it is likely the public, most of which expects little from the Postal  Service except efficient delivery of the mail, won't be thrilled, either.

Yes, the agency does have to change with the times. Not only is the USPS facing continued  competition from private delivery services, it also must deal with the growing diversion of letter  mail to electronic communications. For example, international mail revenue is expected to drop $ 68  million this year because of overseas e-mail activity.

The agency does not have a good track record, however, with nonpostal commercial service. Last  year the General Accounting Office criticized the Postal Service for losing $ 84.7 million on  dubious business ventures, among them the selling of long-distance phone cards, coffee mugs,  T-shirts and other items that don't have much to do with mail delivery.

"If all they can do is deliver first-class mail, that paints a very bleak future," Rep. John  McHugh, R-N.Y., who introduced the Postal Modernization Act of 1999, told USA Today. "Either the  cost of that first-class stamp is going to explode in years coming or they'll automatically have to  cut back on services ... perhaps dropping delivery to five days or four days a week or less."

That may have to happen. Doing away with six-day delivery has been discussed before, and even if  postage is raised again, the USPS is still a bargain for the country. Furthermore, the cost of  delivering a letter ought to be covered by the price of a stamp.

From the beginning, the Postal Service has served everyone, and done it with a universal rate.  Proficient delivery of the mail is all postal customers expect. By concentrating on what it does  best, the agency that has served Americans for so long could likely do that - and only that - for  some time to come.

NOTES: EDITORIALS

LOAD-DATE: October 12, 1999




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