The years between the late 19th Century and early 20th Century were an era of rapid technological advances, and communications were in on the revolution with the invention of the telephone and the radio. But for the Postal Service, it was more a time of extending the network and technologies that were already in place. Railroads reached all the way to the west coast, and were branching out from the main lines to almost every corner of the country where people were settling. The Panama Canal made delivery by steamship even faster and more economical. It was a time when innovation took a back seat to development.
That all changed when the seeds of innovation were planted by two brothers from Ohio at the end of 1903. The Wright brothers' first powered flight kicked off the era of air travel, and it was only a matter of time before the Postal Service would decide to use airplanes to transport the mail. (more…)
September 30, 2010
DMM Advisory
Pricing — keeping you informed about the prices and mailing standards of the United States Postal Service
Statement of Postmaster General on PRC Ruling,
Fully Paying Retiree Health Benefit Mandate
We are disappointed to learn that the Postal Regulatory Commission (PRC) has denied our price filing. But we are encouraged by their acknowledgment and understanding of the larger financial risk we face through the mandated prefunding of Retiree Health Benefits.
Clearly, the Postal Service is a viable business. Maintaining that status requires elimination of several legislatively-imposed constraints that hamper our ability to operate efficiently and profitably.
Specifically: 1) enable us to alter frequency of delivery consistent with use of the mail; 2) allow us to close unprofitable post offices; 3) restructure our obligation under a 2006 law to prefund retiree health benefits, an obligation not applicable to any other private or government entity; 4) permit us to create and offer products and services beyond mail; 5) assure that arbitrators consider the financial health of the Postal Service when agreement cannot be reached with our labor unions; and 6) resolve overfunding of our pension systems. Legislation has been introduced in Congress to address these issues. (more…)
In the spring of 1860, three entrepreneurs started a short-lived messenger service whose legacy would live on beyond the next century. That service was the Pony Express.
Pony Express' rates were high, ringing in at $5 for a half-ounce letter, but so were the dangers faced by its riders. Stations were spaced about 10 miles apart, and a single rider would carry 20 lbs. of mail, swapping horses at each station. In addition to the weather and the rugged terrain, carriers had to worry about Indian attacks and the occasional robbery.
Most of the riders were young, and on the small side. The demands the job made of the horses meant that riders could not exceed 125 lbs. They would ride for up to 100 miles in a single day. In way of compensation, the job was glamorous and paid a wage about 25 times higher than that for unskilled labor at the time. (more…)