Conveyance of Mails by Railway. Memorandum thereon.
As doubts appear to exist as to the expediency of proceeding with the proposed Railway Bill, at least in the present comprehensive form, I have been induced to consider whether the object in view may not be attained by other means; and I am inclined to think that this may be done not only without the opposition, but even with the cordial co-operation of the railway companies; and that, concurrent with this, an important saving of revenue may be effected.
The means which I would suggest are that the Exchequer Loan Commissioners be authorised and required to advance loans, within certain limits, to such railway companies as can give ample security, on the following conditions:—
1st. The amount of loan in each case to be proportionate to the postal service performed by the company. If thought necessary it might also be limited to a certain percentage on the sum which the company is legally empowered to borrow.
2nd. The rate of interest to be the market rate at the time as determined by the terms on which the Government may actually raise the necessary loan. At the present time this would probably be about three and a quarter per cent.
3rd. The company to engage to carry the mails according to a fixed tariff of rates to be framed beforehand by the Post Office. Such tariff to include all possible varieties of service, whether by trains “under notice,” or otherwise; and the rates to be calculated so as, under ordinary circumstances, to afford the companies a small profit.
4th. All the existing powers of the Postmaster-General to be maintained, and some additional powers to be secured, e.g., the right to demand trains exclusively devoted to the mail service. The right to levy certain fines for irregularity on condition of paying certain premiums for punctuality. The right to erect the apparatus for the exchange of bags.
5th. The engagement to be for three years certain, terminable afterwards by either party on twelve months’ notice.
The following table exhibits the amount of debentures issued by the several companies enumerated, and the average rates of interest on such debentures, as shown by the last published accounts.[271] It also exhibits the sum which each company would save if the whole of their loans were raised at three and a quarter per cent., and the amount, according to the latest award, payable by the Post Office for postal service. A comparison of the two last items shows that if the Government advanced the whole of the loans, the companies in question would be considerable gainers, even though they carried the mails for nothing. Such an arrangement, however, is not contemplated, and the comparison is made merely with a view of showing the capabilities of the plan.
The companies have been selected, not with a view of exhibiting the results in a favourable light, but simply because they have a large postal service.