The Life of Sir Rowland Hill and the

4/6
APPENDIX J.
(the service remaining the same) reduce this amount probably to
about ;i 50,000. To obtain the concurrence of the companies it
would be necessary, probably, for the Government to advance
gradually, as the existing bonds fall due, about ^30,000,000 in the
aggregate, or rather less than two-fifths of the present amount of
railway debentures. This advance, taking the saving of the companies
at only one per cent, on the average, would reduce their
expenses by ^300,000. And as their receipts from the Post Office
would be reduced, say by ^250,000, the balance would give a direct
gain to the companies of ^50,000 per annum. But I am assured
by gentlemen well informed on the subject, that the companies would
also be benefited indirectly as regards the terms on which they
would be enabled to raise the remainder of their loans.
The question naturally arises, why, seeing that a larger advance
(say of ^45,000,000 instead of ^30,000,000) would probably
suffice to relieve the Post Office of all payments for railway service,
I have not proposed the larger amount ? The reason is that I have
not felt justified in asking Government to do more than is necessary
to supply the defects of early legislation, by placing the Post Office
in a position similar to that in which it would probably have stood,
had its interests (and through it those of the public) received due
attention from the legislature when railways were first established.
It is unnecessary to add that, should Government feel disposed to
extend the advances to railways beyond the limit I have proposed,
the saving which would result from such extension might go to the
further relief of the Post Office, or be carried direct to the credit of
the general revenue of the state, as Government might determine.
In arriving at this conclusion, I have not overlooked the importance
of neutralising the unwillingness sometimes manifested by the com-
panies now under agreement with the Post Office to afford additional
service without additional pay. Against this inconvenience I con-
sider the Post Office may be tolerably well secured by making the
agreement terminable by the Government, without notice, in the
event of the conditions not being fully performed by the company.
I may add that advances, such as those now suggested (except
that they were unfortunately unaccompanied by any stipulations as
to the postal service), have already been made to several of the
Irish railway companies.
Should the above plan be adopted by Government, I have little
doubt that almost every railway company would speedily avail itself
of the advantages it affords ; and, if so, while both parties would be
saved the trouble, expense, delay, and uncertainty of arbitrations,