Postage: Up, Up and Away

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If the U.S. Postal Service has its way, Americans will soon have to pay an extra $10 a year for stamps. Last week the agency announced that even though it plans to curtail service, it would seek an average 19% increase in 1991, less than three years after the previous jump of 16%. First-class postage will go from 25 cents to 30 cents, while rates for second- and third-class mail -- the mainstay of catalog distributors and magazine publishers -- will soar as much as 33%. Business and consumer groups are already organizing strong campaigns against the increases, which the Postal Rate Commission has ten months to vote on.

Even Postmaster General Anthony Frank admits that, from the consumers' standpoint, the price hikes are "too much, too soon." Although the Postal Service has cut its work force by 20,000, to 758,000, it remains the nation's largest civilian employer, and Frank says he has no choice but to ask for the increases until he can get labor costs under control. The Postal Service is expected to lose $1.6 billion this year.