Stretching the Rates

By a 71-to-11 margin, the Senate last week passed a bill that may bring some relief to hard-pressed publishing companies that use second-class mail to deliver newspapers and magazines. Authored by Wyoming's Gale McGee, chairman of the Senate Post Office Committee, and co-sponsored by 22 other Senators including Massachusetts' Edward M. Kennedy and Arizona's Barry Goldwater, the measure would give newspapers and magazines an extra three years to absorb soaring second-class rates (TIME, Feb. 25). Under the present Postal Service schedule of phased increases, periodicals collectively will have to pay at least 218% more to use the mails in 1976 than they did in 1971. (Under increases already in force they are paying 80% more.) The bill passed by the Senate would extend that schedule to 1979.

Strong opposition to the proposal came from Senator Hiram Fong of Hawaii, who called the legislation "a raid on the U.S. Treasury." But Postmaster General Elmer T. Klassen, who has sternly opposed past attempts to moderate postal increases, quietly supported the McGee bill, sending associates to Capitol Hill to lobby for its passage. Observers think that Klassen's change of heart stemmed from his recognition of the growing burden on publications that use the mails.

The House Post Office Committee is scheduled to vote soon on a bill introduced by Representative James Hanley that is identical to the Senate mea sure. Backers are hopeful that the House and the President will approve in time to ease the next rate hikes on July 6.

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