Association of American Publishers, Inc. v. Governors of the United States Postal Service

In Association of American Publishers, Inc. v. Governors of United States Postal Service, 485 F.2d 768 (D.C.Cir.1973), the D.C. Circuit expressed its dissatisfaction with the manner in which the Postal Service had been allocating costs of its operations to the various services it provided, as reflected in the fees for those services, and the various classes and subclasses of mail, as reflected in the postal rates designated for those classes and subclasses. Judge Bazelon's concurring opinion, which was joined by the other two members of the panel, noted that the PRC's response to section 3622(b)(3), "the requirement that each class of mail ... bear the direct and indirect postal costs attributable to that class ... plus that portion of all other costs of the Postal Service reasonably assignable to such class," was "questionable at best," 485 F.2d at 777. The American Publishers panel interpreted the language of the subsection to require allocation of costs in accordance with cost-of-service principles to the fullest extent possible. Id. at 779. However, in American Publishers, the court determined that the Postal Service should be allowed sufficient time in which to formulate a rate-making methodology which would comport with the D.C. Circuit's understanding of the legislative intent underlying the Act. In Association of American Publishers, Inc. v. Governors of the United States Postal Service, 157 U.S.App.D.C. 397, 485 F.2d 768 (1973), the Court found "a strong indication" that Congress intended to impose just such a special obligation. In that case, however, in view of "the presumptions that surround an initial effort to formulate rates" we found it unnecessary to go beyond a mere preliminary assessment of the import of 39 U.S.C. subsection 3622(b)(3).