The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“SUPPORT THE POSTAL SERVICE CORE BUSINESS ACT” mentioning the U.S. Dept. of Justice was published in the Extensions of Remarks section on pages E1144-E1145 on June 20, 1996.
The publication is reproduced in full below:
SUPPORT THE POSTAL SERVICE CORE BUSINESS ACT
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HON. DUNCAN HUNTER
of california
in the house of representatives
Thursday, June 20, 1996
Mr. HUNTER. Mr. Speaker, I rise today to introduce legislation to protect a small business industry from unfair Government competition. These small businesses exist in every congressional district and employ tens of thousands of people. The Government agency which is competing with them is one of the largest organizations in the world--the U.S. Postal Service [USPS]. My bill will insure that the Postal Service does not compete with these small businesses, while still maintaining the viability of the Postal Service to maintain its core business: the delivery of mail.
Over the last 15 years, the American marketplace has fostered many new industries; one of these is the commercial mail receiving agent
[CMRA]. The average American knows these businesses by their brand names: MailBoxes, Etc; Postal Annex; PostNet; Pakmail; and Parcel Plus. Together these franchise organizations represent over 4,000 store owners in all parts of the country, with an additional 6,000 stores which are not affiliated with any franchise organization. The CMRA industry is about 10,000 strong.
What are CMRA's? This industry provides value added and ancillary services to postal customers and serve as mini-offices for many home-
based businesses and sales people. Specifically, CMRA's provide the materials and help their customers safely pack parcels to ensure safe delivery; they help customers identify the most efficient and cost effective manner to send their packages; they oversee mailboxes and offer personalized postal services to their customers; and these are just to name a few. Over 15 years ago, Tony DeSio saw the need for these services within his community of San Diego County, and he opened the first Mailboxes Etc. The rest, as they say, is history.
These services simply were not provided at the USPS, however, given the rate by which this industry has exploded in less than two decades, there were clearly a need within our communities. This new kind of postal store provided these services and provided them quickly and efficiently. In a very short time, this one small store has grown into an industry of nearly 10,000 small business men and women who every day provide these services to their friends, neighbors, and customers.
So what is the problem here, Mr. Speaker. So far, this story sounds like the American dream. Every day, American small business owners invest their own capital and work to achieve the American dream. That would be the case in this instance if it were not for one major problem: the Postal Service which has enormous taxpayer supported advantages, has decided to directly compete with this industry.
Mr. Speaker, that is simply wrong. I am a big supporter of the U.S. Postal Service. Like every other Member of this body and every American, I depend upon the hard work and dedication of the Postal Service employees for the timely delivery of my mail 6 days a week, and I want a strong USPS. I do not think it is fair, however, that the Postal Service should start targeting small businesses for its revenue. This CMRA industry is home grown, and it should not be preyed upon by the U.S. Government.
After all the USPS is a government industry with the following enormous advantages:
The USPS does not charge tax on its retail items--that is a 5-10 percent advantage right there.
The USPS is self-insured as an agency of the U.S. Government--these small business CMRA's have to purchase insurance.
The USPS does not have to make a profit--there is nothing that requires them to be profitable as far as I know. When they are under threat of not breaking even, they request a postal rate increase.
The USPS borrows money from the U.S. Federal Reserve at the most favorable rates--CMRA's have to borrow money at market rates.
The USPS has a statutory monopoly on the delivery of first class mail, the revenue of which can be used to subsidize other services.
Perhaps the biggest advantage of all is its size. If the Postal Service was a private business, it would be ranked as the 12th largest business in the Nation, and 33d largest in the world.
Is it right that the Postal Service should enter into competition with small businesses with all of these inherent advantages? Would the Congress stand by and allow Ford to maintain a monopoly, while letting them use their profits to compete against small businesses on a different front? Would the Congress let Exxon compete with small businesses if it had limited sovereign immunity and was represented by the Department of Justice? The answer is a resounding no.
Mr. Speaker, the Postal Service has a job to do--deliver the mail and sell postage. That is what it was designed to do by the Founding Fathers. These core services are what the Postal Service is good at, and what it should continue to do. Offering ancillary services only detracts from their core mission.
My bill, the Postal Service Core Business Act, specifically prohibits the USPS from getting into the CMRA business. It addresses the question of what is the proper role for the Postal Service in areas where private industries already provide the service. That role is to stay out of private businesses way and let the marketplace work.
My bill is remarkably simple. The Postal Service is prohibited from competing with private industry, like the CMRA's, unless the Postal Service was offering the service nationwide as of January 1, 1994. The purpose of the bill is to draw a clear line as to what the USPS can and cannot do.
Such a line is necessary. I am familiar with reports of postal executives stating that they need to get into retail businesses to protect the Postal Service. That is simply not true. This is an agency which made $1.5 billion last year and has stated that it expects to make in excess $500 million this year. This is not a suffering agency.
Furthermore, the USPS is an agency which does not seem to understand its mission. Representatives of the Postal Service have lauded the organization as the country's largest retail distribution system with 50,000-plus outlets, and announced their intention to increase its retail revenue by $1 to $1.5 billion in the next few years. This is wrong. All of those outlets were built with taxpayer money and stamp revenue. The U.S. Government and the taxpayer built this system, but not to be a competitor with the private sector.
Mr. Speaker, this is a vital bill. I again voice my strong support for the Postal Service, I want to help it remain strong and vital. Competing in industries which the private sector has created is not the way to meet their goal. My bill would redirect the Postal Service to its core mission: Mail delivery and stamp sales. That's why I call the bill the Postal Service Core Business Act of 1996. American corporations have learned that to be successful, they must concentrate on their core business. The Postal Service needs to understand this too.
Congress has the ultimate authority over the Postal Service. The House Postal Service Subcommittee, chaired by my friend and colleague, John McHugh, is beginning to craft postal reform legislation. I hope that the subcommittee will give my bill serious consideration. This issue needs to be addressed. A vital Postal Service is critical to our Nation's future, but Congress must not stand by and let a giant Government agency destroy a whole industry of small private businesses. It is interesting to note that all of these CMRA's stores are independently owned and operated. There is not one franchise organization which runs stores as a corporation. This makes the industry very unique, and has directly contributed to their profitability.
Mr. Speaker, there is not a single congressional district without at least one of these CMRA stores within its borders. Therefore, I urge my colleagues to join me in this legislation, which will most assuredly effect a small business within their hometown. This bill is pro-Postal Service and pro-competition. Every American has the right to the American Dream. These small business owners look to us to insure that their dream is not taken from them.
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