“On reference to the evidence of Mr. Frederic Hill, Assistant-Secretary to the Post Office, Mr. Edward Page, the Inspector-General of Mails, and Mr. Gregory, C.E., the Arbitrator for the Post Office, it will be seen that the laws regulating the relations between the railways and the Post Office are, at present in a state unsatisfactory to both parties; the dissonance necessarily producing inconvenience to the public, owing to the restrictions which it places on the use of trains for conveying mails, and the consequent impediments to the extension of postal facilities. “I concur with Mr. Frederic Hill, in recommending that, as fast as lines become national property, clauses be inserted in the respective leases, entitling the Post Office to such use of the lines as may be necessary for its purposes, and that at specified rates of charge; such rates being so arranged as to remunerate the lessees and afford them a moderate profit—say 25 per cent. on the bare additional cost of the service. “As regards lines remaining in the hands of the present companies, it appears advisable that whenever railway companies come before Parliament for fresh powers, advantage be taken of the opportunity thus offered, by requiring the companies to perform the postal service at specified rates regulated on fixed principles, and providing for all ordinary contingencies; any existing contracts which may have a fixed term to run being allowed to continue in force until they shall be terminated in the ordinary course, under the conditions for that purpose provided in each contract. The rates should be considerably higher than those recommended for insertion in the leases. “As regards the use of such trains as may be run by the companies for their own purposes, I concur with Mr. Page and Mr. Gregory in opinion, that the rate of charge to the Post Office should be based upon the rate of charge which the companies make to the public for similar services; due allowance being made to the Post Office for the extent and regularity of its custom, and for its performing the duties of collection and delivery. “As regards trains specially ordered and controlled by the Post Office, I am of opinion, that excepting a few very peculiar cases, the payment for the service should also be according to a fixed scale; and this I think should be so regulated, as at once to cover the additional expense to which the company may be put by the Post Office requirement (after fair deductions for any use of the train made by the Company itself), and to yield on the sums thus ascertained the ordinary 100 per cent. required for interest of capital, &c., and profit. “This, I propose, not as a perfect plan, but as more convenient, and even more equitable, than the plan now in use. “The following tariff is based on the above principle, and is accordingly recommended for adoption, as regards railways _not_ belonging to the State.