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ADVERTISERS DISTRIBUTION SERVS. v. USPS

March 27, 1981

ADVERTISERS DISTRIBUTION SERVICES, a Division of Consumer Information Enterprises, Inc. Advertisers Postal Service Corp., John Comee, d/b/a Morrison County Distribution Company, Plaintiffs,
v.
UNITED STATES POSTAL SERVICE, Defendant



The opinion of the court was delivered by: SMITH, JR.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

Upon consideration of plaintiffs' motion for injunctive relief, defendants' and intervenors' opposition thereto, the entire record, and after hearing argument thereon, the Court enters the following Findings of Fact and Conclusions of Law:

 FINDINGS OF FACT

 1. Plaintiff Advertisers Distribution Services ("ADS") is a Division of Consumer Information Enterprises, Inc., a Minnesota corporation with its principal place of business in Cambridge, Minnesota. Plaintiff Advertisers Postal Service, Inc. ("APS") is a Michigan corporation with its principal place of business in Gaylord, Michigan. Plaintiff John Comee is an individual proprietorship doing business as "Morrison County Distribution Company." Plaintiff ADS provides a delivery service for publications at various points in eastern Minnesota and western Wisconsin. Plaintiff APS provides a delivery service throughout Michigan, and plaintiff John Comee provides a delivery service in Morrison and adjacent counties in Minnesota. Plaintiffs' delivery services compete with the United States Postal Service and other carriers in the private delivery business.

 2. Defendant United States Postal Service ("the Postal Service"), an independent establishment of the executive branch of the Government of the United States, has its principal office at 475 L'Enfant Plaza West, S.W., Washington, D.C. 20260, and provides essential postal services throughout the United States.

 3. Intervenor Advo Systems, Inc. ("Advo"), 239 West Service Road, Hartford, Connecticut, 06101, a Delaware corporation, is the largest non-governmental mailer within the United States postal system. It is in the business of providing third-class bulk mailing services to large advertisers who seek to reach actual and potential customers through those mailings.

 4. Intervenor Reuben H. Donnelley Corporation ("Donnelley"), 825 Third Avenue, New York, New York 10022, is a Delaware corporation engaged in the business of providing third-class bulk mailing services to large advertisers who seek to reach actual and potential customers through those mailings.

 5. Intervenor Direct Mail/Marketing Association, Inc., 1730 K Street, N.W., Suite 905, Washington, D.C. 20006, is an association with approximately 2,300 member companies and is the largest organization representing firms involved in marketing by mail. The member companies of DMMA are substantial users, directly or indirectly, of third-class bulk regular rate mail.

 6. Intervenor Mail Order Association of America ("MOAA") is a nonprofit corporation organized under the laws of the State of Illinois. It consists of six retail businesses which are extensive users of third-class mail.

 7. The Postal Reorganization Act establishes procedures for changing postal rates and fees. Under the Act the Postal Rate Commission ("Commission") recommends changes in rates and fees as well as changes in mail classifications to the Governors of the Postal Service ("Governors"). 39 U.S.C. §§ 3622, 3623. The Governors then decide whether to approve, reject, modify, or allow under protest the rate and classification changes recommended by the Commission. 39 U.S.C. § 3625.

 8. When the Commission fails to transmit to the Governors a recommended decision upon rate changes within ten months following a Postal Service request for rate changes, the Postal Service may implement temporary rates pursuant to 39 U.S.C. § 3641.

 9. The Postal Service initiated the fifth general rate proceeding on April 21, 1980 by filing a request for a recommended decision with the Commission, which docketed the case as Docket No. R80-1. Some 55 entities, ranging from large trade associations to persons appearing pro se, participated in Docket No. R80-1.

 11. Proposals for changes in the rates for third-class mail were made in Docket No. R80-1 by several parties. The proposals included ...


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