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B-166772 1 (1970-11-05)

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B-i,66772                       01     .                    IVRELEASED



                                                                 LM089794
Dear Senator Allott:

     In October 1970, we sent you a report on the results of our review,
made at your request, of theLPost Office Department's transportation ac-
tivities   You had requested us to include in that review an examination
into thediscontinuance of the Evansville, Indiana-St. Louis, Missouri,
highway post office because Mr. John J. Keil, a foreman on that highway
post office, had expressed opposition to its discontinuance. We are re-
porting separately on the results of that examination because it involved
a specific highway post office and because it was not closely related to
the transportation review which dealt primarily with the Department's air
taxi program. This report concludes our reporting to you on our reviews
of the Department's transportation activities.

     Mr. Keil expressed opposition to the Department's plan to discontinue
the Evansville-St. Louis highway post office because he believed that the
discontinuance (I) would not improve mail service but could cause delays
in the delivery of mail and (2) would not result in a reduction in mail
transportation and processing costs.

     We believe that the discontinuance of the Evansville-St. Louis high-
way post office has not adversely affected mail service and will result
in a cost saving of about $44,300 the first year, $50,000 the second year,
and $52,900 annually thereafter. These matters concerning mail service
and costs are presented in greater detail in the enclosure to this letter.

     Mr. Keil also expressed concern that the discontinuance of railway
and highway post office units had caused congestion in large post offices
and delays in mail deliveries. The director of the St. Louis Postal Re-
gion indicated that the discontinuance of such units had not caused con-
gestion in post offices or delays in mail deliveries. In addition, our        7
reviews over the years have shown that, when such units were discontinued,
mail service had not been adversely affected and the alternative means of
processing and transporting the mail had been less costly.

     Our examination included a review of pertinent records and discussions
with officials at Department headquarters in Washington, D.C., and at the
Department's Regional Office and Air Mail Facility in St. Louis, Missouri,
to ascertain the effect the discontinuance of the Evansville-St. Louis high-
way post office had on (I) the mail service to the communities served by
the highway post office and (2) mail transportation and processing costs.





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