Regarding interest on capital outlay (paragraph 4) and the mileage of special postal vans (paragraph 5), the accounts should be rendered for the half-year ending the 31st May and the 30th November. The bills for the services rendered to the Postal Department by State Railways should be made out as above, submitted for acceptance in the months of January and July and adjusted in the accounts for February and August in each year, excepting bills for occasional despatches (paragraph 3b) which will be adjusted in the month after presentation of the bills.

(9) All officers and servants of the Postal Department travelling in the Post Office vans or compartments shall be carried without passes. All officers of the Railway Mail Service and the officers and employés named in Government of India letter No. 2604R of 16th January, 1879, not so travelling will be carried free on being furnished with passes under the State Railways Free Pass Rules. All other officers of the Postal Department will pay the ordinary fares.

(10) A list shall be kept of all free passes issued and periodically recorded in the minutes of official meetings.

All the larger railways in their renewed contracts with Government have agreed to accept these State Railways Rules for the conveyance of mails.

In 1886 the Government of India Public Works Department issued the following addenda to the above:

(1) In addition to the above the Postal Department shall hereafter pay, in the first instance, the original cost of building or fitting up all vans or parts of carriages required for its use as well as the cost, when no longer required by the Post Office, of reconverting them for railway purposes.

(2) The Postal Department shall also pay interest at 4½ per cent on the original cost of all vehicles now in use, built or altered on its own requisition since the 1st January, 1878, for the exclusive use of the Post Office until such time as it may desire to repay the aforesaid original cost.

These are the rules that still govern the dealings between the Post Office and railways, and at the risk of being wearisome I have quoted them in extenso. In 1910 the Railway Conference Association started an agitation that the haulage rates paid were insufficient, and that by comparison with those paid for goods they were performing the work of the Post Office at a considerable loss. The result of an inquiry into their demands for an increase was an offer from the Director-General to increase the rate on broad-gauge lines to 24 pies a mile and to retain the existing rate of 18 pies on narrow-gauge lines. This offer was accepted provisionally by the Railway Conference Association in 1913, but the narrow-gauge railways were not very enthusiastic about an arrangement which put four hundred thousand rupees annually into the pockets of their colleagues and gave them nothing but the honour and glory of having deprived the Post Office of a portion of its earnings.

Until the last few years the Railway Mail Service was by far the most unpopular branch under the administration of the Post Office. The pay was bad, the hours of duty were long, the work was trying and the discomfort of the old postal vans baffled description. In the hot weather they were like ovens and, being closed in with sorting cases, it was difficult to get a through current of air. The lighting, provided by indifferent oil lamps, was injurious to the sight and did not lend itself to accurate sorting. The sorters started life on Rs.15 a month; they could not ordinarily hope for more than Rs.60 at the end of thirty years' service, and the result was an inefficient and discontented body of men with not a small proportion of rogues. Since the beginning of the present century the immense importance of the Railway Mail Service to the proper working of the Department has been recognized. Salaries have been greatly increased, and the best sorters are picked for appointments as inspectors and Assistant Superintendents. The vans have been improved, and the bogies in which the large sections work are comparatively comfortable. They are fitted with electric light and fans, and work is carried on in them under the most favourable conditions. In the old days a continuous duty of twelve hours in the train was an ordinary occurrence, and it is not a matter for surprise that men, exhausted by hard work and travel in a temperature of 110 degrees, made absurd mistakes. The length of the beats has now been reduced, rest houses have been provided at the out-stations and every man gets a sufficient time off duty upon his return to head-quarters. The new conditions have attracted men of much higher qualifications and position, and it has now been found possible to entrust the R.M.S. with almost the whole sorting of the Post Office. In important offices sorting for the outward mail is usually performed in a mail office at the railway station, the great advantage being that skilled men are employed and that, by concentrating the work in one place, economy both in staff and bags is effected. For instance, if the Calcutta G.P.O. and its sixty-three town sub-offices each perform their own sorting they must each make up separate bags or bundles for a large number of important towns and R.M.S. sections with which they are in postal communication; but if they despatch their mail to a central sorting office, that office, as it deals with a far greater number of articles, will be in a position to make up direct bags for a very much larger number of places, like Bombay, Cawnpore, Agra, Lucknow and Delhi, thereby saving labour in handling and sorting articles in the running sections. It is an axiom of the Post Office that no work should be thrown on a running section which can be performed in a stationary one, the expense being in the ratio of 3 to 1 in staff alone, not to mention the cost of haulage.

Concentration of sorting, although admirable for large towns, is not without its drawbacks. Where the system exists, postmasters are no longer answerable for the disposal of the outward mail, and they are unable to make any direct inquiry into public complaints regarding the loss or missending of articles. As all the sorting is thrown on one mail office, it is necessary for the various post offices which serve it to close their mails sooner than they would if direct bags were prepared for the travelling sections, so that the latest time of posting has to be fixed at an earlier hour and the public suffer some inconvenience, especially in places remote from the station. A certain amount of double handling also occurs in towns with a large local delivery, in which case the mail has to be overhauled before despatch in order to pick out the local articles. Despite these drawbacks, the system is undoubtedly a good one whenever the postings of a number of offices can be concentrated in one mail office, but in small towns it is preferable for the post office to do its own sorting. Supervision is better, and the sorters can be used for other work. A solution of the difficulty might be found by placing the control of all the important through services under one Director of Mails with a few assistants to help him in supervision, and it has been suggested that probably the best results would be obtained if the Postmasters-General were responsible for both the sorting arrangements and the discipline of the staff upon all the railways within their circles. The present system of having different officers in charge of R.M.S. circles has caused a great deal of correspondence and not unfrequently means divided counsels. It has estranged the heads of postal circles from one of the most important branches of postal work, namely, the conveyance of mails by railway. At the same time, the Railway Mail Service work requires expert knowledge, and it is important that each railway should have to deal with only one man in the matter of the conveyance of mails within its system. This could not be done if Postmasters-General were in charge, as many railways pass through several postal circles. The question is full of difficulties, and after careful consideration it has been decided not to interfere with the existing arrangements, but to provide a closer co-ordination between the officers in charge of Railway Mail Service circles.