
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 7, 1990                   TAG: 9003071562
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-2   EDITION: METRO 
SOURCE: Los Angeles Times
DATELINE: WASHINGTON                                 LENGTH: Short

BOARD OKS INCREASE IN POSTAL RATES

The Postal Service won the first round in its attempt to raise postal rates by an average of more than 19 percent - a proposal that would increase the cost of mailing a first-class letter to 30 cents by next February.

The proposed increase, the largest ever in percentage terms, comes only three years after the 1988 price increase that raised the cost of mailing a first-class letter from 22 cents to 25 cents. The board of governors gave its approval for the newest increases Tuesday, meeting as usual behind closed doors.

The proposal now must go before a separate independent board, the Postal Rate Commission, for 10 months of hearings before final approval. If the commission were to disallow the rate increase, the vote could be overridden by a unanimous vote of the board of governors. The board, however, was "split" in its vote Tuesday, Postmaster General Anthony Frank said.

Frank said the increase is "too much, too soon," and promised to hold future cost increases below inflation. But he added, "Tell me something that doesn't go up."

Battle lines to oppose the increase, which had been widely expected in recent weeks, were already drawn Tuesday. Opponents ranged from the U.S. Chamber of Commerce to consumer activist Ralph Nader, who called on Americans to contribute $10 per household to form a new Nader-headed consumer action group to block future postage increases.

In addition to raising first class mail to 30 cents, the proposal would increase the cost of mailing post cards to 20 cents, up a nickel, while Express Mail would go from $8.75 to $9.75.

by CNB