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B-114874 1 (1974-07-17)

handle is hein.gao/gaobabkvy0001 and id is 1 raw text is: by the cc_ of Coj, Zaessjo2Baj Z COMPTROLLER GENERAL OF THE UN TE STATES WASHINGTON, D.C. 2048 B-114874 17 The Honorable Alan Cranston United States Senate Dear Senator Cranston: Your November 15, 1973, letter requested that we review 6 ) several areas of the operations of the United States Postal Service. / It was agreed that separate reports would be issued as our work on the various matters was completed. On February 12, 1974, we issued our report regarding certain Service expenditures for its new headquarters building, and on June 12, 1974, we sent you our report on allegations concerning a contract awarded to a friend of the Postmaster General. This report concerns (1) Service restrictions on placing advertising supplements in newspapers mailed at second-class postage rates and (2) the Service's annual loss of revenue, if any, from the multiple enclosure of advertising matter in one envelope (marriage mailings) mailed at third-class rates. As your office agreed, we performed our review at Service headquar- ters in Washington, D.C.; its western region headquarters; and selected post offices in the Washington, D.C., and southern California areas. Our review included talking with postal officials and examining documents, records, and reports. In addition, we obtained the views of officials of selected newspapers in southern California. ADVERTISING SUPPLEMENTS IN NEWSPAPERS Postal Service restrictions concerning advertising supplements to newspapers mailed at second-class rates are more stringent than re- strictions concerning advertising matter mailed at third-class rates, because the purpose of second-class mail rates is to encourage the dissemination of information of a public nature. As a result, these publications are mailed at preferred rates subsidized, in part, by the public and, therefore, lower than third-class rates. These restrictions incluale: 1. The supplement must be germane to the publication. 2. The supplement must be needed to supply matter omitted from the publication for want of space, time, or greater convenience. g 6mm~mmm

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