WXXET
SECTION
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, D. C. 20268-0001
<r .; i ]::i 1)
Docket No. RQ7-1
POSTAL RATE & FEE CHANGES, 1997
TIME WARNER INC. NOTICE
OF REVISIONS TO TESTIMONY OF WITNESS HALSTEIN STRALBERG
(February 20, 1998)
Time Warner Inc. (Time Warner) hereby gives notice of the following revisions
to the testimony of witness Halstein Stralberg (TW-T-1)
Corrections to Tables A-6 and A-7 (pages A-16-17) and consequent
minor revisions to Tables l-1, 1-3, l-4, 2-1, 3-1, A-Q and B-7.
A summary of the revisions and corrected copies of all affected pages are
attached to this notice. These revisions have no affect on the general conclusions
presented in TW-T-1.
Respectfully submitted,
Counsel for
TIME WARNERINC
Burzio 8 McLaughlin
Canal Square, Suite 540
1054 31st Street, N. W.
Washington, D. C. 20007-4403
teV(202) 965-4555
fax/(202) 965-4432
REVISIONS TO DIRECT TESTIMONY OF HALSTEIN STRALBERG (TW-T-1)
Mistakes in the spreadsheets producing Tables A-6 and A-7 in Stralberg’s testimony
.
caused a mrsallocation of certain mixed mail costs with activity codes 5301-5345 at
BMC’s and NonMODS offices. Correcting these mistakes also requires minor revisions
to Tables l-1, l-3, l-4, 2-1, 3-1, A-9 and B-7 in TW-T-l. Corrected versions of each
affected table are included on the following pages. The effect of making these
corrections is that total clerk and mailhandler costs attributed to First Class mail are
reduced by $4.444 million (0.06%), costs attributed to Periodicals mail are reduced by
$0.835 million (0.16%), costs attributed to Standard A mail are increased by $5.317
million (0.23%) and costs attributed to Standard B mail are reduced by $0.038 million
(0.01%). There is no effect on other mail categories. Nor is there any effect on the
general conclusions presented in TW-T-l.
Exhibit 1, P. 2 of 5
Revised 2/20/98
Table l-1: Attributed Mail Pro cessing Co!
Subclass
First-Class:
m
Letters and Parcels
Preson Letters and Parcels
Postal Cards
Private Mailing Cards
Presort Cards
Total First Class
Priority Mail
Express Mail
Mailgrams
Periodicals:
Within County
Regular Rate Publications
Nonprofit Publications
Classroom Publications
Total Perodicals
Standard A:
Single Piece Rate
Regular Enhanced Car. Rte.
Regular Other
Total Bulk Regular
Nonprofit Enhanced Car. Rte.
Nonprofit Other
Total Bulk Nonprofit
Total Standard A
Standard B:
Parcels Zone Rate
Bound Printed hlatter
Special Standard
Libras Mail
Total Standard B
Penalty-U. S.P.S.
Free Mail
International Mail
Total All Mail
Special Services:
Registry
Certified
Insurance
COD
Special Delivery
Special Handling
Other
Total Special Services
Total Volume Variable
- All Offief
$1:ooo’s)
Degen
Stralberg
3ifference
--
4,65 1,743
1,063,109
3,214
136,725
36,425
5.891.215
477,897
84,168
14
4.702,082
I ,003,779
3,111
150,506
45,593
5,905,071
319,010
53,669
108
50,339
(59,330)
‘(103)
13,781
9,168
13
856
-1
(158,887)
(30,499)
34
--
15,159
461.712
80,740
5,684
563,295
13,576
367,827
67,674
3,728
452,806
(1,583)
(93,885)
(I&066)
( 1,956)
JI10.490)
78,662
266,254
1,545,319
I,81 1,573
28,946
367.5 I I
396,457
2.2863692
7695I3
215,442
I ,417,689
1,633,131
22,319
352,266
374,585
2,084,229
(2,149)
(50,8 12)
(127,630)
(178,442)
(6,627)
(15,245)
(21,872)
(202,463)
159,880
74,506
68,491
16,350
3 19,227
77,658
10,100
209,017
9.919.344
126,110
65,535
69,576
15,487
276,709
79,290
8,563
197,784
9,377.239
(33,770)
(8,971)
1,085
1542,105)
42,163
18,473
771
1,815
243
200
76,063
139,728
10,059,072
66,952
22,932
925
2,378
1,847
274
88,212
183,521
9,560,760
24,789
4,459
154
563
1,605
75
12.149
-1 43 793
(498.3121
(862)
(4:2,5181
1,631
(1,536)
(11,233)
Exhibit 1, P. 4 of 5
Revised Z/20/98
Table 1-3: Attributed Mail
Subclass
First-Class:
Lerters and Parcels
Presort Letters and Parcels
Postal Cards
Private Mailing Cards
Presort Cards
Total First Class
Priority Mail
Express Mail
Mailgrams
Periodicals:
Within County
Regular Rate Publications
Nonprofit Publications
Classroom Publications
Total Perodicals
Standard A:
Single Piece Rate
Regular Enhanced Car. Rte.
Regular Other
Total Bulk Regular
Nonprofit Enhanced Car. Rte.
Nonprofit Other
Total Bulk Nonprofit
Total Standard A
Standard B:
Parcels Zone Rate
Bound Printed Matter
Special Standard
Library Mail
Total Standard B
Penaltv - U. S.P.S.
Free Mail
International Mail
Total All Mail
Special Services:
Registry
Certified
Insurance
COD
Special Delivery
Special Handling
Other
Total Special Services
Total Volume Variable
recessing Costs - NonMO:
Degen
Stralberg
i ($1,000’s)
Diffixence
194,125
214,435
935
24,847
7,707
I ,042,049
65,920
20,558
0
805,942
214,812
933
26,289
8.255
I ,056,23 1
61,803
13,098
0
5,045
91,108
14,266
1.311
111,730
4,990
83,403
14,349
1,148
103,889
(55)
(7,705)
83
12,912
80,272
299,550
379,822
7,710
60,700
68,410
461.144
12.573
61,274
298,162
365,436
5,561
62,992
68,559
446,568
(339)
(12,998)
19,634
12,908
8,471
1,758
423171
17,070
726
6,461
I ,768,429
16,215
11,209
8,496
1,571
37,491
16,86 I
768
6,221
1,742,930
(3,419)
(I ,699)
25
(187)
14,973
12,789
630
1,307
0
115
28,806
58,620
I ,827,049
27,212
15,752
605
1,650
531
152
30,826
76,734
1819.664
11,817
377
(2)
1,442
548
14,182
(4,117)
(7,460)
0
(163
(7,841)
(1,388)
(14,386)
(2,143)
2,292
149
(14.576)
WW
(20%
42
(240)
W,G’9)
12,239
2,963
(25)
343
537
37
2,020
18,114
(7,385i
Exhibit 1, P. 5 of 5
Revised Z/20/98
Table 1-4: Attributed 1c ,1Processing 1 ‘sts - BMC’s
Subclass
First-Class:
Letters and Parcels
Presort Letters and Parcels
Postal Cards
Private Mailing Cards
Presort Cards
Total First Class
Priority Mail
Express Mail
Mail,mams
Periodicals:
Within County
Regular Rate Publications
Nonprofit Publications
Classroom Publications
Total Perodicals
Standard A:
Single Piece Rate
Regular Enhanced Car. Rte.
Regular Other
Total Bulk Regular
Nonprofit Enhanced Car. Rte.
Nonprofit Other
Total Bulk Nonprofit
Total Standard A
Standard B:
Parcels Zone Rate
Bound Printed Matter
Special Standard
Library h4ail
Total Standard B
Penalty - U. S.P.S.
Free Mail
International Mail
Total All h4ail
Special Services:
Registry
Certified
Insurance
COD
Special Delivery
Special Handling
Other
Total Special Services
Total Volume Variable
Degen
Stralberg
4,303
923
0
119
0
5,344
1,515
I9
0
96
16,405
3,599
914
21,015
Difference
6,114
I.142
0
154
46
7,456
2,009
180
1,811
219
0
35
46
2,J 12
493
--
95
I 1,909
14,496
136,115
150,61I
76,236
32,752
38,641
8,435
156,064
4,285
29,129
407,912
73.1 I2
35,327
45,592
9,636
163,668
3,866
2,275
28,930
407,290
179
0
9
0
0
0
I44
332
408,244
566
32
23
I
6
1
292
921
408,21 I
161
0
U)
(4,128)
(734)
12,277
2,865
489
15,726
11,456
16394I
139,018
155,959
1,520
19,632
21,:52
188,567
1,973
1,000’s)
(426)
(5,289)
453
(2,445)
WW
(5,348)
(2%
(260)
(492)
Ci38V
1,288
19,372
20,660
183,180
(3,124)
2,575
6,95 1
1,201
7,604
(419)
302
-+i$
-(33)
387
32
14
1
6
I
148
589
Ekhibit 2, P. 3 of 1
Revised Z/20/98
Table 2-1: Modified Attrribmtion Of B 36 Segment 3 Costs ($1
3.1 Mail
First-Class:
Letters & Parcels
Preson Letters & Parcels
Shale Piece Cards
Preson Cards
rptal First Class
Prioritv Mail
Exuress Mail
Mailwarns
Periodicals:
\h’ithin Countv
Regular Rate Publications
Nonprofit Publications
Classroom Publications
Qtal Perodicals
Standard A:
Sinele Piece Rate
Regular Enhanced Car. Rte.
Regular Other
Total Bulk Reeular
Nonorofit Enhanced Car. Rte.
Nonorofit Other
Total Bulk Nonprofit
4.821.288
1.021.182
157.708
47.331
6.047.509
317.269
53.623
114
-%i%1.363.549
2.97:
2.48 I
5.953
23.106
-YE?
339.015
--YE-
SE
--iFi%-
8.409
-es
X.926
ZZEE
3 I .606
23.209
937
2.406
49
0
27:
-2%
151.282
218.324
5.248
37.612
5.819.232
1.187.543
209.909
53.484
+i%
130.227
13Q
16,842
416.821
79.432
4.184
517.2&Y
+k%
3%
185
24.6 8
-23lf&
&
12.087
39.092
1I .938
3.669
153
82.983
1.361
548
’ Sources: Seg. 3.1: Table A-9. Seg 3.2: Table B-3. Seg. 3.3: Table B-7.
82.9U
279.284
1.537.937
-5%
385,035
12.576
2.f:
*
7,746
641
3.296
102
122.366
63.601
68.170
15.096
&ement 3
2.746
41.1 16
10.201
386
54.a
473
2.260
243
13.623
373.446
68.988
3.798
459.855
Standard B:
Parcels Zone Rate
Bound Printed Matter
Soecial Standard
Librarv Mail
Free h4ail
International h4ail
Mail
Soecial Services:
Recistrv
Certified
Insurance
COD
Soecial Deliverv
Monev Orders
Stamped Envelooes
Soecial Handline
Post
office box
-
.2 Window 3.3 Admin./
Service
SUDOOrt
I
482.3 12
515.633
143.563
22.798
19.01I
33.190
5.361
792
572.412
42.667 -%%23.797
52.807
17
0
12.224
7.328
6.083
1.170
142.331
71.571
77.545
16.365
307 X’)C
127.977
9.8Si
256.m
4.903
11.452
851
878
110
4.139
67
41
48.596
73.7Y
13.72:
6.95:
87.::
1.421
Exhibit 3, P. 1 of 1
Revised 2/20/98
Table 3-1: Attributed BY9‘6 1Clerk & Mailhandler Wage Co! ($1,ooo’s)
USPS
Srralbere
Difference
lProDosal
First-Class:
Lewers & Parcels
Presorl Letters & Parcels
Sinele Piece Cards
Preson Cards
TOMI First Class
Prioritv Mail
Emress Mail
Mailcrams
Periodicals:
Within Coun~v
Regular Rate Publications
Nonurofit Publications
Classroom Publications
Qdal Perodxals
Srandard A:
Sinele Piece Rate
Regular Enhanced Car. Rte.
Regular Other
Total Bulk Regular
Nonorofit Enhanced Car. Rte.
Nonorofit Other
Total Bulk Nonorofir
Standard B:
Parcels Zone Rare
Bound Printed Matter
Soecial Standard
Ljbrarv hlail
Total Standard B
Penaltv _ u. S.P.S.
Free Mail
~remational Mail
Mail
Soecial Services:
Recistrv
Certified
Insurance
COD
Sue&l Deliyew
Monev Orders
Stamued Envelooes
Special Handline
Post office box
5566.303
1.194.689
183.379
41.349
6.985.22a.
540.853
112.436
88
5.819.232
1.I 87.543
209.909
53.484
(7.146)
26.530
12.135
284.448
(151.418)
17.791
42
-%%130.227
130
17.388
496.960
88.934
6.005
aom
16.842
416.821
19.432
4.184
517.280
*7&
-SE
1.537.937
305.921
1.605.824
1.91I.745
32.442
385.597
--T?%385,035
(5461
(80.139)
(9.502)
(1.821)
-0
914
126.637)
(67.887)
(94.5241
(4.902)
1562)
,
+ IzEE
168.661
16.322
12.257
16.453
333.693
112.772
I 1.042
252 743
11 17nqgl
31.718
63.305
12.818
5.968
216
82.277
1.341
754
65.299
89.524
142.331
71.571
77.549
16.367
307.825
(26.324)
(4.75 1)
5.292
12;:E
t
48.596
73.754
13.125
6.953
312
87.123
1,428
867
76.317
109.35I
16.878
10.449
907
985
96
4.846
87
Revised 2/20/98
Table A-6: Distribution Of NonMODS Direct. Mixed And Not Handling Costs
rivate Mailing Cards
reson Cards
riority Mail
xpress Mail
19,984
6,089
45,114
8,578
0
269,551
71,319
306
9,040
2,979
22,856
5,846
n
1,445
6,176
3 1.065
542
6,480
4,750
21,381
99.582
I;988
23,506
2,004
1,306
6,264
3,845
rofir Enh. Car. Rte.
976,646
260,311
1,131
31,857
805,942
214,812
933
26.289
32.975
19,088
733
1,999
651
104
27.2 12
15,752
605
1,650
537
152
--I--
arcels Zone Rate
ound Prinred Marrer
I
I
11096
11,401
588
4,151
I
25,953
6,570
252
591
651
60
ixed First Class (5301
ixed Periodicals (533
ixed Third Class (534
ixed Standard A (5341
424
113
0
14
3,991
65.433
ecular Rate Publications
Ibrary Mail
enalty -U. S.P.S.
Itfree hiail
ntemational Mail
Special Services:
88,023
21,344
132
2,819
930
6,924
1,448
0
359
24
A-16
1,036
80
Revised 2/20/98
lirect Mixed And Not Handlin
Costs $1000’s
-gq$q-gy
etters and Parcels
reson Letters and Parcels
1,172
119
0
2,786
776
0
eplar Rate Publications
2.7;;’ 1
646
110
3.5:: 1
829
117
egular Enh. Car. Rte.
arcels Zone Raie
ound Printed Matter
lixed Periodicals (5331)
fixed Third Class (5340)
74
‘I4
0
6,114
1,142
0
II; 1
40
7
12.2;:
2,865
489
2,661
3,258
30,504
288
4,365
3.912
4,553
43,031
398
6,121
I I4
1:39
1,301
12
185
11,909
14,496
136,l 15
1,288
19,372
16,155
7,811
10.077
2,128
840
511
6,575
25,241
11,941
15,282
3,414
1,482
849
10,343
188
91
117
25
73,112
35,327
45,592
9,636
3,866
2,275
28,930
0
0
0
0
0
421
32
12
1
6
51
182
226
100 I
91,015 I
A-17
50
179
279
124 (
137,186 1
566
32
23
1
6
(2l9)
(787)
(964)
(421) 1
01
0
0
0
0
408,21 I
Revised Z/20/98
etters 8: Parcels
resort Letrers & Parcels
onorofit Publications
ssroom Publications
ledistributed Mail Processin Costs m
Gj
~~~~
Adiusred
MP Costs
I 2,932
1.045
3:;
10
14
01
113
14.461
885
181
0
1
26
32
1.476
2
70
1.429
264
28
1,791
0
:,
0
1
0 1286
2’748
0
‘9412
?f*:;:
:3.298
.o
0
12s
I .soo
0 16.15 ll&
i
873 (3.531)
151 (1.855)
0
0
4
i
0
37
I.008
185
:
1.2::
(60)
:3.181
864
32
GW
4.821.288
1.021.182
3.132
154.576
47.331
6.047.509
3 17.269
53.623
114
13.623
373.446
68,988
3.798
459.855
73.912
206.289
1.363.549
1.569 838
21:312
339.015
360.32
.2.oo4.07:
122.366
63.601
68.170
15.096
269.234
103.620
8.926
209.99
9.474.22;1
arcels Zone Rate
ound Printed h4arter
66,952
22.932
925
2.318
382
214
9
0
E (35.814)0
::
22
0
7 (1.806)
i
:
0
0
2
0
0
1
424
0
0
242
1.060 (1.806) (35.8141
401
0
nl
t-l hh.18
I
74635 I
12.476 1
01
0 I 7.637 I
47.111 I
01
0 133.82 1
A-19
:
0
i
0
0
Q
3 1.606
23.209
937
2.406
49
277
88,878
147.362
Revised Z/20/98
Table B-7: Modified Attribut ,ioln Of Adm iniistration - Support Costs ($1,000’s)
USPS r
First-Class:
Letters & Parcels
Presort Letters & Parcels
Sinple Piece Cards
Preson Cards
Total First Class
Prioritv Mail
Express Mail
Mailerallls
Periodicals:
Within County
Regular Rate Publications
Nonprofit Publications
Classroom Publications
Total Periodicals
Standard A:
Single Piece Rate
Regular Enhanced Car. Rte.
Regular Other
Total Bulk Regular
Nonprofit Enhanced Car. Rte.
Nonprofit Other
Total Bulk Nonprofit
Jotal Standard A
Standard B:
Parcels Zone Rate
Bound Printed Matter
Special Standard
Library hlail
Total Standard B
Penalty _ U. S.P.S.
Free Mail
International hlail
Torn1 All Mail
Special Services:
Registry
Certified
Insurance
COD
Special Delivery
Money Orders
Sumped Envelopes
Special Handling
Post office box
Other
302,027
92,320
11,583
3,137
409,067
2 1.927
6,211
9
306,549
92,197
12,159
3,428
414.333 rT
18.408
5,651
10 t
175,763
5 1,366
6,852
1,933
235.91411.091 t
47,156
L
482,312
143,563
19,011
5,361
650,247
29.499
52,807
17
1,721
27,573
6,729
285
36.308
1,726
25,769
6,513
242
34.250
1,020
15.34.8
3,688
144
20.2cg
2,746
41,116
10,201
386
54,449
4.114
43.303
97,685
140.988
3.578
24,178
27,756
172.818
4.136
43.061
96,088
139,149
3.478
24,122
27.599
170&&
2.454
23.98,1
55,194
79.17L
1.771
13,490
15,261
96.8EE
6.590
67.042
151,282
218.324
5.248
37,612
42.860
8,089
4,456
3,585
707
16.837
6.324
483
14.351
684.375
7,566
4,435
3,757
711
16.470
6.619
458
14.252
681.334
4,658
12,224
2,893
7,328
2,325
6,083
459
1,170
10.335
26,805
3.537
10.156
286
744
7.6~13
21,895
433.058
1.114.392
2,775
6,778
487
579
59
2,393
39
22
2,438
3,212
7,048
510
602
64
2,s I I
40
-25
4,219
6,790
B-13
1.691
4,404
34 1
276
46
1,629
26
‘I6
2,944
3,475
4,903
11,452
851
878
11c
4,135
67
41
7,163
10,265
CERTIFICATE OF SERVICE
I hereby certify that I have this day served the foregoing document on all
participants of record in this proceeding in accordance with section l;! of the Rules of
Practice.
<
1w.z~ 1. JY,-
Timothy L.‘Keegan
February 20, 1998
0
i_