The main conditions under which a railway should carry mails were laid down in Clause 20 of the contract made with the East Indian Railway in 1849, and was as follows: "That the said Railway Company will at all times during the said determinable term convey on the said Railway the Government mails and post bags and the guards and other servants of the Post Office in charge thereof free of charge." A similar condition existed in the contract with the Great Indian Peninsula Railway, but the Companies contended that the conveyance of mails did not include the haulage of sorting carriages in which sorters were employed. The Post Office refused to accept this view and nasty things were said on both sides. The Post Office seemed to think that railways had been invented for the conveyance of mails without any regard to dividends, while the railways regarded the Post Office as a confounded nuisance and its officials as unscrupulous thieves. It was finally settled that two compartments of a second-class carriage should be set apart and specially fitted for the Travelling Post Office on ordinary mail trains free of charge. If a special carriage was required in addition, then the haulage rate of 1½ annas a mile would be charged, and the rate for special trains was fixed at Rs.3-8 a mile. With respect to the cost and maintenance of postal vehicles it was decided that, if they were paid for by Government in the first instance, the charge for maintenance only should be incurred, but, if the Companies had to bear the cost of construction, then the charge should include the cost of maintenance, the interest on capital and the cost of restoring the vehicles when worn out. The settlement between the Post Office and the Railways did not last long. Despite their acquiescence in the regulations which had been laid down, the Companies refused to abide by them and repeated demands were made for the cost of hauling postal vans. On the Great Indian Peninsula Railway everything possible was done to hamper the work of the Department, parcel bags were deliberately left behind at stations, postal vans were cut off at way-side places without any warning and there never was any certainty that the whole mail would reach its destination. In 1879 the nuisance became so intolerable that petitions were made by the public for the interference of Government, and after some deliberation a settlement was made with this Railway on the following terms:-- (1) The Post Office was to pay Rs.6000 a month for the ordinary services performed for it by the Railway, and for this payment a large fitted van with a well and extra vans for weekly foreign mails would be supplied. (2) The price for additional reserved accommodation was raised from 18 to 30 pies a mile on each vehicle.