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POSTAL RATE COMMISSION
WASHINGTON, DC. 20266-0001
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Docket No. R2001-1
i
REFORMAlTED RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS
L. PAUL LOETSCHER TO INTERROGATORIES OF MAGAZINE PUBLISHERS OF
AMERICA, INC. (MPA/USPS-T34-2-4, REDIRECTED FROM
WITNESS ALTAF H. TAUFIQUE) - ERRATA
The United States Postal Service hereby files the reformatted response of
witness L. Paul Loetscher to the following interrogatories of the Magazine Publishers of
America, Inc.: MPAIUSPS-T34-2-4,
filed on October 4,2001, and redirected from
witness Altaf H. Taufique. These responses replace the responses filed on October 16,
2001, which were not presented in the proper format. There are no textual changes.
The interrogatories are stated verbatim and are followed by the responses.
Respectfully submitted,
UNITED STATES POSTAL SERVICE
By its attorneys:
Daniel J. Foucheaux, Jr.
Chief Counsel, Ratemaking
Attorney
476 CEnfant Plaza West, S.W.
Washington, D.C. 20260-l 137
(202) 266-3037 Fax -6402
October 19,200l
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS L. PAUL LOETSCHER TO INTEROGATORIES OF
MAGAZINE PUBLISHERS OF AMERICA, INC.
MPAIUSPS-T34-2:
Please complete the following table regarding the advertising content of Periodicals
Outside-County publications. Please also provide the source of your data. If you
cannot complete the table, please redirect this interrogatory to another witness who
can do so.
Advertising Percent
No. of Publications
FY 2000 Total
FY 2000 Total
in Category in FY
Mail Volume
Weight
2ooo
o-10%
lo-20%
20-30%
3040%
4040%
~_
i
!
sMo%
6070%
7060%
6040%
90-100%
i
I
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS L. PAUL LOETSCHER TO INTEROGATORIES OF
MAGAZINE PUBLISHERS OF AMERICA, INC.
RESPONSE TO MPANSPS-T34-2:
The Postal Service does not collect the requested information on all Periodicals
Outside-County Publications. Therefore it is not possible to complete the table for all of
FY 2000 Periodicals Outside-County mail. The PERMIT system collects Postage
Statement data (form 3541) for roughly 95 percent of Periodicals Outside-County mail
Trial Balance revenue. I used the PERMIT system data to complete the table for those
publications authorized to mail at Periodicals rates (pending publications are excluded)
and entering mail at PERMIT system equipped facilities. For purposes of completing
this table, publications are mapped to advertising content category using the ratio of the
sum of FY 2000 PERMIT system advertising pounds to the sum of FY 2000 PERMIT
system total pounds. The assignments to advertising content categories are not mailing
specific. A publication is assigned an advertising content category based on its annual
average content. The results are presented in Table 1 MPAIUSPS-T34-2.
Table 1 MPAIUSPS-T24-2
PERMIT System Periodicals OutsidsCounty Mail
Publication Counts, Volume and Weight
By Average Annual Advertising Percantage
Advertising
Percentage
cA3?~
1920%
20-300/o
3040%
40-50X
50-80%
80-70X
70.80%
80.90%
90-l 00%
Totals
No. of Publications
in Category in FV
w33
p/2000
Mail Volume
w 2000 Total
Weight
12,487
2,171
1,941
2,209
2,745
2,481
1,232
380
125
121
1,005.667,452
480,228,958
573,401,294
1.781,213,921
2,333,318,245
2,102,840,725
580342,788
95.089,385
859,837
329,231
291.783,804
183,801,708
188.966,107
630548.828
1,081,847,729
1,495.201,558
390.872.198
88,287.985
1,702,140
89,108
25,872
8.913,267,744
4,310,898.785
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS L. PAUL LOETSCHER TO INTEROGATORIES OF
MAGAZINE PUBLISHERS OF AMERICA, INC.
MPAAJSPS-134-3:
On page 8 of your testimony, you state, “The Postal Service recognizes the impact of
higher dropship discounts on smaller customers, who individually may not have the
volume and/or density to enter mail closer to destination”. Please complete the
following table regarding the distribution of Periodicals Outside-County mail by issue
size. Please also provide the source of your data and explain the definition of an issue
you used to populate the table. If you cannot complete this table, please re-direct this
interrogatory to another witness who can do so.
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS L. PAUL LOETSCHER TO INTEROGATORIES OF
MAGAZINE PUBLISHERS OF AMERICA, INC.
Mailed Copies PHI
No. of
FY2ooo
FY2ocKl
Issue in FY 2000
Publications
Mail Volume
Total
FY2000
Advertising
Weight
Weight
in Category in
FY2ooo
3egUlU
O-1.000
1,000-2,Qao
2,ooo-5,ooo
5,ooo-10$00
1o,ooo-25,000
25,ooo-50,000
50,00~75$00
75.000-100.000
~00,ooo-200,wn
200,00&500,000
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS L. PAUL LOETSCHER TO INTEROGATORIES OF
MAGAZINE PUBLISHERS OF AMERICA. INC.
RESPONSE TO MPAAJSPS-I-34-3:
The Postal Service does not collect issue size data, nor do any of the Postal Service’s
volume data systems distinguish between the various issues of a publication. Seff
reported information on the frequency of publication is available for most, but not all
publications. Total annual volume can be calculated by publications for publications
entering mail at PERMIT system equipped sites. The Postal Service does not collect
annual volume information for all Periodicals Outside-County publications, therefore it is
not possible to complete the table for all of FY 2000 Periodicals Outside-County mail.
The PERMIT system collects Postage Statement (form 3541) data for roughly 95
percent of Periodicals Outside-County mail Trial Balance revenue. I used the PERMIT
system data to complete the table for those publications authorized to mail at
Periodicals rates (pending publications are excluded) and entering mail at PERMIT
system equipped facilities. Estimated issue size used to produce this table is the ratio
of PERMIT system annual volume to reported issue frequency. This estimate will
produce erroneous estimates for numerous reasons (e.g. tend to over estimate the
issue size of publications mailing supplemental issues and back issues and
underestimate issue sizes of publications which did produce issues for all of FY 2000
etc.). Publications mailing at both Periodical Outside-County Regular rates and
Periodicals Outside County Nonprofit rates are presented separately. The results are
presented in Table 2 MPAAJSPS-T34-3.
Tablr 2 MPANSPS-T34-3
PERMIT System Periodicals Rqylar and Nonprotit
Publiwtlon Counts, Volume and Welnht, AdvwUrinS WmlSht
No. d PuMit!ons
blcdgayin
M2oou
Ra&dU
0.l.OW
1,OOO-2,000
2,000-5.000
5,cKG10,000
10,ooo-25,ooo
25.ooo-w.m ,
5O,W+J-75,Wn
75,OwlW.OW
100,MK)-2oo,ow
200,ooo-sw,ooo
5oo,ow-1,ooo,m
1 Million+
Issue Frequency Not Availabl~e
Fv2mo
Total
weight
8059
135,656.935
1399
66,530.301
1563
135,667,279
1020
143.063.607
601.042,313
2331
256.446.712
355
16-9
216;653;994
265
557.612.675
163221.538
45
121
595,056.770
901.077.467
93
67 2.614,865,806
72,W5,644
649
M2cm
Advmising
WSlQht
62357,012
34.64.6,476
66,072,795
65,634,030
362,W.S61
139.650,356
106.175.152
311.232864
65,905,304
385,172,504
609,646.766
1.371,054.143
37,W6.951
27.456.(ao
14,2s6,170
27,671.633
24.732,494
162,105,492
60,514.495
52,911,545
150,006,716
41,616,523
168.567.966
303,W7.266
630,477JBo
16,553.979
l.WO-2.WO
2;00+5;oW
5.ow-10,ofm
10$0025,ooo
25,000-5O.ooO
5O,W9-75,000
75.000.1w.000
lOO,OW-2W.ooO
200,WO.500,Wo
wo.wo-1 .ow.ooo
I Milliin+
Issue Freauencv Not Available
4230
752
926
567
1139
161
69
144
15
66
25
22
159
13.612.526
9,141.050
26,095,946
39433,673
301,249.605
127.219.613
93.549,763
216.263,Wl
24,931.lW
252,215,536
136,923,902
662s459.326
17.060.734
4,991.680
4.726.294
14,930,405
15.125536
01.565,175
33,616.617
26.174,933
57.020.651
6,714.493
67.569,553
34.193,333
260.236,710
6.409.06fJ
149.464
127.803
972,510
1.520.169
16.612.703
5,624.434
7,665,5t7
15.427.267
1.566.604
19;325;617
6.516,907
73.246842
2,319,944
Re9ular 5 NonprofIt
o-1 .Dw
l.om-2,wfl
2.000.5,000
5.000-10.000
10,ow.25,Dw
25,wo5o,ooo
5O,cco-75.W-l
75,000-lW,OoO
lW,ow-xK).m
2oo.wo.5ofJ,ooo
5w,oou-1 .wo*ofm
1 Million+
lsrw Fraquency Not Available
34
15
19
14
17
4
0
3
1
1
0
0
37
143,427
156,716’
453.522
1.626.596
4347.366
1305,927
~0
3.977.W2
1.889.262
1.594,920
0
0
6.676,391
49.327
60;062
120.776
760;555
2.616.746
367,413
0
1#LB,076
745,547
151,236
0
0
2206,233
6.360
3;290
12.260
161,754
441.380
94.356
0
12.554
319;eo2
0
0
0
404.611
O-1 .ooo
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS L. PAUL LOETSCHER TO INTEROGATORIES OF
MAGAZINE PUBLISHERS OF AMERICA, INC.
MPAIUSPS-T34-4:
Has the Postal Service or any of its contractors ever estimated the cost savings that
would result from increasing sack minimums for Periodicals? If so, please provide the
date that each estimate was developed, the cost savings, and all underlying
calculations.
RESPONSE TO MPAIUSPS-T34-4:
The Postal Service produced estimates of the cost savings that would result from
increasing the piece minimum of Carrier Route sacks to 24 pieces. The estimated cost
savings and underlying calculations are presented in LR-I-332 in Docket No. R2000-1.
It is my understanding that neither the Postal Service nor any of its contractors have
produced estimates of cost savings that would result from increasing sack minimums on
other sack presort levels.
I,
that
L. Paul Loetscher,
the
foregoing
of my knowledge,
Dated:
D&&4
answers
information,
lo1Jcd
declare
are true
under
penalty
and correct
and belief.
of perjury
to the best
CERTIFICATE OF SERVICE
I hereby certify that I have this day sewed the foregoing document upon all
participants of record in this proceeding in accordance with section 12 of the Rules of
Practice.
475 L’Enfant Plaza West, SW.
Washington, D.C. 20280-l 137
October 19,200l