Tuesday, April 17, 2007

Tell Congress to Keep Postal Rates Fair!

Stamp Out the Rate Hike: Stop the Post Office

Not surprisingly, the new scheme was drafted by Time Warner, the largest magazine publisher in the nation.

Because the Post Office is a monopoly, and because magazines must use it, the postal rates always have been skewed to make it cheaper for smaller publications to get launched and to survive. The whole idea has been to use the postal rates to keep publishing as competitive and wide open as possible. This bedrock principle was put in place by James Madison and Thomas Jefferson. They considered it mandatory to create the press system, the Fourth Estate necessary for self-government.

What the Post Office is now proposing goes directly against 215 years of postal policy. The Post Office is in the process of implementing a radical reformulation of its mailing rates for magazines. Under the plan, smaller periodicals will be hit with a much larger increase than the big magazines, as much as 30 percent.

What the Post Office is planning to do now, in the dark of night, is implement a rate structure that gives the best prices to the biggest publishers, hence letting them lock in their market position and lessen the threat of any new competition. The new rates could make it almost impossible to launch a new magazine, unless it is spawned by a huge conglomerate.


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