6. That there is no practical difficulty in protecting the public interest, without opening these Contracts to public tender, by either of the following means:-- First, By stipulating for a diminishing scale of payments, on the plan adopted by this Company in their Contract for the Southampton and Alexandria Mail Service. The public, by this plan, derive a benefit from any increase of income which, by the progressive development of their enterprise, the Contractors may obtain from the increase of commercial traffic. Secondly, By stipulating that, at intervening periods of the Contract, the question of reduction should be submitted to two competent arbitrators, one to be appointed by the Government, who should investigate the Contractor’s transactions, and make an award as to whether any and what reduction ought to be made in the payment for the Mail Services. The Committee of the House of Commons seem to have recognised the eligibility of the principle of the last mode of proceeding, in the third and concluding resolution of their Report, namely--“They suggest that if it be decided to renew the existing Contracts, the most strict and searching inquiry should be instituted, by some responsible department of the Government, into the cost of the execution, into the manner in which the Service has been performed, and into the profits resulting from the several transactions to the Companies by which they have been respectively carried on.” This suggestion, it has been shown, was anticipated by the Directors of the Peninsular and Oriental Company, in offering their books and accounts to the inspection of Government. ABSTRACT OF EVIDENCE TAKEN BEFORE THE COMMITTEE. _Efficiency of Performance of the Mail Service._ Extract from Mr. T. C. Croker of the Admiralty’s evidence. 1115. Has the contract been well performed?--I can speak from a knowledge of nine years to the manner in which that contract has been performed, and it has been performed most admirably, and has given general satisfaction; in fact, the only fault which has been found with the manner in which it has been performed is, that it has been done too well. 1116. Will you explain what you mean by being done too well?--The vessels arrived sooner than it was calculated they should have done, which was made matter of public complaint. 1176. At our last meeting we had brought your examination down to the period at which the alteration took place in the arrangements between the Peninsular Company and the Government?--Yes. 1177. The Committee then understood from you that up to that period the contract had been carried on, as far as you were aware, in a satisfactory manner?--Highly so; here are the testimonials of the Admiralty as to the satisfactory manner in which the contract was carried on. 1606. With reference to the Indian part of it, is it within your knowledge how far that contract has been performed?--It has been well performed. 1607. Throughout?--Yes.