Postal Board Ignores Threat by Bush

In spite of President Bush’s threat of firing, the Postal Service’s governing board reasserted its autonomy Tuesday and suggested that a court settle its extraordinary dispute with the White House.

Bush on Monday ordered the board of governors to drop a legal fight over rates with the independent Postal Rate Commission. He set a deadline of today for board members to act or be fired.

The governors responded with a three-page letter Tuesday urging Bush not to follow through.

The letter said that dropping the case could cost the Postal Service $100 million and--more broadly--would permit the Justice Department rather than the Postal Service to make decisions about when rate cases can be appealed.

In West Point, N.Y., where Bush was speaking, White House Press Secretary Marlin Fitzwater reacted brusquely to the governors’ complaint that their independence had never been challenged in such a way.

“It’s time it was,” he retorted. “Their independence has never been displayed in a such a way, either.”

“A majority of the board believes that the President’s order clearly would compromise the postal rate-making process,” Bert Mackie, the board chairman, said later.

Judy Smith, deputy White House press secretary, said the governors’ response had been sent to the Justice Department for review.

The U.S. Postal Service was established in 1971 as a semi-independent agency in an effort to remove it from political influence.

Nine of the 11 board members are appointed by the President, but they serve fixed terms and the question of removing them from office has never come up before. The other two members are the postmaster general, who is chosen by the board, and his deputy.

The independent Rate Commission was set up at the same time to act on rate increases proposed by the service. The commission’s five members are appointed by the President.

The dispute goes back more than a year when the Postal Service accepted under protest the 29-cent first-class rate the commission approved rather than the 30 cents the service had sought.

That case also included a provision for a discount 27-cent rate for the general public for specially prepared mail that can be handled by machines. That has never been put into effect and is the major factor in the current dispute.

The Post Office sued the Rate Commission, contending that the 27-cent rate established a new subclass of mail and the commission does not have authority to do that. But Bush’s Justice Department sided with the Rate Commission.