Rate Hike Needed in 1991 to Pay for Automation, Says U.S. Postmaster

CHICAGO —  U.S. Postmaster General Anthony M. Frank said Monday that postage rates will have to increase in early 1991 to cover the costs of mail delivery and automation, which will be essential by the year 2000.

Frank refused to speculate how much first-class rates might go up, but he promised that the increases will allow the postal service to improve efficiency by expanding automated operations and establishing more postal facilities.

“We need some sort of mail facility in every mall,” Frank told a news conference. Frank said postal union fears that jobs would be lost because of the post office’s agreement with Sears, Roebuck & Co., which allows Sears employees to work in postal facilities inside Sears stores, were unfounded.