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Show Rate Proposals Would Hurt Mailers and Postal Service all originating mail household mail. Mrs. Beck noted that the staff's proposed rates for parcel post would be significantly higher than the rates charged by the Postal Service's cheif competitor com-petitor in the package delivery business, United Parcel Service. She contended that the hefty increases proposed by the Commission Com-mission staff for parcel post bulk mail (consisting (con-sisting primarily of newspapers, magazines and advertising matter) would tend to drive businesses which amount for 84 percent of the total mail volumn -to alternate means of delivery. The resultant loss in revenue, she said, would inevitably lead to greater and more frequent postage rate increases for the in-diviual in-diviual mailer, as the law requires that postal revenues and appropriations ap-propriations as nearly as possible cover the cost of maintaining a universal mail system. "The loss of business revenues would have to be compensated by the average householder," she said. "In addition, revenue losses could threaten the Postal Service's continuing ability to provide acceptable ac-ceptable levels of service for all mailers. " Mrs. Beck noted that even with the 20-cent letter rate proposed by the Postal Service, First-Class postage would still be cheaper in the United States than in any other nation in the industrialized world but Canada, where the postal system has been heavily subsidized. The rate package proposed by Postal Rate Commission staff would not benefit the household mailers it is supposed to benefit, and would severely damage the Postal Service's ability to hold down all postal rates in the future, the Postal Service contends. In oral arguments Thursday before the Postal Rate Commission, Com-mission, Postal Service Attorney Frances G. Beck produced figures indicating that Postal Service proposals for a 20-cent First-Class stamp, coupled with its proposed increase for other classes of mail, would cost the average household with annual family income in the $5,000-or-under level 10 cents a year less than under Commission staff's proposal. Conversely, under, Commission staff's proposal for an 18-cent First-Class letter rate combined with drastic increase in postage for other classes of mail, households with annual family income in the $25,000-plus category would pay 82 cents a year less than under the Postal Service's proposed new rates, "Not only would the staff effort to make the necessary rate increases in-creases more palatable for the average low-income low-income citizen actually penalize the way one it is purported to help." Mrs. Beck declared, "but it would make it impossible for the Postal Post-al Service to operate a universal postal system at rates the individual mailer can afford. ' ' Mrs. Beck said her figures on household costs are based upon studies conducted by the University of Michigan, as a part of a long-range ' classification study program, which the Postal Rate Commission Com-mission participated in. These show average mail volume per household by class of mail and by income level. Only 16 percent of |