Postal rates over the past century have remained remarkably stable on an inflation-adjusted basis. They seem impervious to advances in automation and technology. Only one historic achievement has had any substantial impact on rates: the building of the railroads.

• After the advent of the railroads in the mid-19th Century, the expenditure per mail item handled dropped from 60 cents to 25 cents as of 1886.

• Otherwise, costs have ranged between 30 cents and 50 cents per item, inflation-adjusted.

• The U.S. Postal Service has just set a new record for size -- 905,000 employees, including part timers.

• Labor accounts for about 85 percent of the agency's costs.

Average salaries, plus benefits, now exceed $50,000 a year -- top pay in many regions of the country. Observers attribute the service's failure to capitalize on innovation to two factors: strong unions and a monopoly position.

They point out those are the same two factors at work in the public schools.

Source: Peter Brimelow, "Post Paid," Forbes, May 3, 1999.