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OFFICIAL TRANSCRIPT OF PROCEEDINGS BEFORE THE POSTAL RATE COMMISSION In the Matter of : ) 1 Docket No. R2001 -1 POSTAL RATE AND FEE CHANGES ) VOLUME #7 Date : January 9, 2002 Place: Washington, D.C. Pages : 1186 through 1628 HERITAGE REPORTING CORPORATION mcial Reporters 1220 L Street, N.W., Suite 600 Washington, D.C. 20005-4018 (202) 628-4888 hrc@concentric. net 1186 POSTAL RATE COMMISSION In the Matter of: 1 ) Docket No. R2001-1 POSTAL RATE AND FEE CHANGES ) Suite 300 U.S. Postal Rate Commission 1333 H Street, N.W. Washington, D.C. Volume 7 Wednesday, January 9, 2002 The above-entitled matter came on for hearing pursuant to notice, at 5:34 a.m. BEFORE : H3N. GEORGE A. OMAS, CHAIRMAN HON. RUTH Y. GOLDWAY, VICE-CHAIRMAN HON. DLVA B. "DANNY" COVINGTON, COMMISSIONER APPEARANCES: G!> behalf of the IJnited States Postal Service: DAVID H. RUBIN, Esquire MICHAEL T. TIDWELL, Esquire Ilr~lteciStates Postal Service 475 L'Enfant Plaza, S.W. Washington, D.C. 20260-1137 (232: 26a-25a3 31: behalf of United Par-:el Service: LAURA A. BIANCKE, Esquire Piper, Marbury, Rudnick & Wolfe, L.L.P 3400 Two Logan Square 18th and Arci-:Street Philadelphia, Pennsylvania 19103 (215) 656-3300 Heritage Reporting corporation (202) 628-4888 1187 APPEARANCES: (cont'd.) On behalf of Maqazine Publishers of America: JAMES PIERCE MYERS, Esquire 1617 Courtland Road Alexandria, Virginia 22306 (703) 660-1002 On behalf of Coalition of Relisious Press Associations and National Federation of Independent Publications: STEPHEN M. FELDMAN, Esquire 601 Pennsylvania Avenue, N.W. South Building, Suite 900 Washington, D.C. 20004 (202) 463-9960 On behalf of American Business Media: DAVID R. STRAUS, Esquire Thompsor? Coburn, L . L . P . 1909 K Street, N.W., Suite 600 Washington, D.C. 20006 (202) 585-6921 On behalf of McGraw-Fill Company, Inc.: TIMOTHY W. BERGIN, Esquire Squire, Sanders & Dwmpsey, L.L.P. 1201 Pennsylvania Ave., NW P.O. BOX 407 Washington, DC 20044-0407 (2021 626-6606 O:I behalf of American Postal Workers Union, AFL-CIO: SVSAN L. CATLER, Esquire O'Donnell, Schwartz & Anderson, P.C. 1300 L Street, N.W., Suite 1200 Washing:on, ILr. 20001 0::behalf of National Association of Pre-Sort Mailers: HENRY HART, Esquire Reed Srnirh, L.L.P. 1301 K Street, NW, Suite 1100-East Tower Washington, VC 20005 (202) 414-9225 Heritage Reporting Corporation (202) 628-4888 1188 APPEARANCES: (cont’ d . ) On behalf of Office of the Consumer Advocate: SHELLEY S. DREIFUSS, Esquire Postal Rate Commission Office of the Consumer Advocate 1333 H Street, N.W. Washington, D.C. 20268 (202) 789-6837 Heritage Reporting Corporation (2021 625-4888 1189 CONTENTS WITNESSES APPEARING: ALTAF H. TAUFIQUE MICHAEL W. MILLER MAURA ROBINSON VOIR WITNESSES: DIRECT CROSS REDIRECT RECROSS DIRE Altaf H. Taufique 1192 1323 _- -_ _- Michael W. Miller 1326 1393 _- __ _- Maura Robinson 1404 1595 1621 DOCUMENTS TRANSCRIBED INTO THE RECORD PAGE Designation of corrected written cross-examination 1197 of USPS witness, Altaf H. Taufique, USPS-T-34 Designation of corrected written cross-examination 1330 of USPS witness Michael W. Miller, USPS-T-22 Designated of corrected written cross-examination 1408 of USPS witness, Maura Robinson, USFS-29 ABA and NAPM Cross-Examination Exhibit Number 1 for 1626 Robinson, USPS T-29 -EXHIBITS EXHIBITS AND/OR TESTIMONY IDENTIFIED RECEIVED Corrected direct testimony of 1192 1193 Altaf H. Taufique on behalf of the USPS, USPS-T-34 Designation of corrected written 1196 1196 cross-examination of USPS witness Altaf H. Taufique, USPS-T-34 Corrected direct testimony of 1326 1328 Michael W. Miller, on behalf of the USPS, USPS-T-22 Heritage Reporting Corporation (202) 628-4888 1190 EXHIBITS AND/OR TESTIMONY IDENTIFIED RECEIVED Designation of corrected written 1329 1329 cross-examination of USPS witness Michael W. Miller, USPS-T-22 Corrected direct testimony of 1404 1406 Maura Robinson on behalf of the USPS, USPS-T-29 Designation of corrected written 1407 1407 cross-examination of USPS witness Maura Robinson, USPS-T-29 ABA and NAPM Cross-Examination 1622 1625 Exhibit Number 1 for Robinson, USPS T-29 Heritage Reporting Corporation (202) 628-4888 1191 L -PEOCEEDLNES 2 (9:34 a.m.) 3 CHAIRMAN OMAS: Good morning. Today we resume 4 hearings to receive testimony of the Postal Service 5 witnesses in support of Docket No. R2001-1, Request for Rate 6 and Fee Changes. 7 Hearings will be held over the next three days to 8 allow participants to question Postal Service witnesses on 5 issues pertinent to the proposed stipulation and agreement 10 as revised on December 26. 11 Does anyone have any procedural matters to discuss 12 before we continue here today? 13 (No response. ) 14 CHAIRMAN OMAS: Three witnesses are scheduled to 15 appear today. They are Witnesses Taufique, Miller and 1F Robinson. 17 MI-. Rubin, would you please call your first 18 witness? 15 MR. RUBIN: Yes. The Postal Service calls Altaf 20 Taufique as its next witness. 21 CHAIRMAN OMAS: Mr. Taufique, would you stand? 22 Whereupon, 23 ALTAF H. TAUFIQUE 24 having been duly sworn, was called as a witness 25 and was examined and testified as follows: Heritage Reporting Corporation (202) 628-4888 1192 CHAIRMAN OMAS- Please be seated. 2 (The document referred to was 3 marked for identification as 4 Exhibit No. USPS-T-34.) 5 DIRECT EXAMINATION 6 BY MR. RUBIN: 7 0 Mr. Taufique, have you reviewed two copies of a a document designated USPS-T-34 entitled Direct Testimony of 9 Altaf H. Taufique on behalf of the United States Postal 10 Service? 11 A I have. 1: CHAIRMAN OMAS: Your mike? >_. 11 THE WITNESS: I have reviewed the two copies that 14 yol; gave to me. -.li BY MR. RUBIN: 16 Q Was this testimony prepared by you or under your 17 s II pe IV 1 s 1 on ? 18 A Yes. 13 c If you were tc testify orally here today, would 20 this be your trstlmony? 21 A ..res. 22 0 Are you also prepared to sponsor the Category I1 23 library reference associated with your testimony? 24 A Yes 25 c Is that library reference identified at the end of Heritage Reporting Corporation (202) 628-4888 1193 the table of contents in your testimony as Library Reference J-107. your work papers? A Yes. MR. RUBIN: I have provided two copies of the direct testimony of Altaf H. Taufique on behalf of the United States Postal Service to the reporter, and I ask that this testimony and the associated library reference be entered into evidence in this docket. CHAIRMAN OMAS: Is there any objection? (No response.1 CmIRMAN OMAS: Hearing none, I will direct cc.unsi.1 to provide the reporter with two copies of the c3:~ri.cted direct testimony of Altaf H. Taufique. That testimony is received into evidence. However, as is our practice, it will not be transcribed. (The document referred to, previously identified as Exhibit No. USPS-T-34,was received in evidence.) CHAIRMAN OMAS: Mr. Taufique, have you had an ..-I,.,,~.-LLunity ,-+ tc, examine tiir packet of designated written ci~~-sss-examinationthat was available to you in the hearing room this morning? THE WITNESS: Yes. I have reviewed it. CHAIRMAN OMAS: If the questions contained in that Heritage Reporting Corporation (202) 628-4888 1194 1 packet were posed to you orally today, would your answers be 2 the same as those previously provided in writing? 3 THE WITNESS: They would be the same. 4 CHAIRMAN OMAS: On January 7, 2002, American 5 Business Media and the McGraw-Hill Companies, Inc., filed an 6 oblection to four of the designated discovery responses. I 7 would like to note for the record that I appreciate the fact 8 that a written objection was provided in advance of today’s 9 hearing. 10 The objected to discovery responses were 11 designated by the Magazine Publishers of America. Mr 12 Myers, would you like to respond to this objection? 13 MR. MYERS: Good morning, Mr. Chairman, 14 Commissioner Goldway, Commissioner Covington. It’s a 15 pleasure to be here. In a moment I’m going to withdraw 16 MPA’s designation of the four interrogatories in question, 17 bL:t I want to make a couple of comments. 18 Doing this in the spirit of the fact that MPA, 15 McGraw-Hill ana AB3 have worked diligently to resolve some 2c very thorny differences in this case to try and facilitate 21 he settlement proceeding and the fact that we are 22 withdrawing these designations in no way should be read to 23 reflect on our feelings toward the arguments made in the 24 objection, but in order to facilitate the progress of this 25 case and with the knowledge that at some point if the Heritage Reporting Corporation (202) 628-4888 1195 settlement does not come to fruition we’ll get this material 2 in, I’m going to at this moment withdraw the objections to 3 ABM-MH/USPS-T-34-8,10 and 15 and CRPA/NFIP/uSPS-T-34~14-C. 4 Thank you. 5 CHAIRMAN OMAS: Thank you, Mr. Myers. 6 MR. FELDMAN: Mr. Chairman, Stephen FeLdman 7 representing the Coalition for Religious Press Associations 6 and the National Federation of Independent Publications. ._, I want to echo Mr. Myers‘ statement. Our IC orqanizations likewlse designated the interrogatory li questions. However, after reading Mr. Straus’ objection we 12 end3r~sethat objection, and in light of the resolution that -~ 1.1:r M:/ers has just announced I just want to say that we ?I endorse his remarks and are withdrawing our designations of -.?C tnose interrogatories as well.