161
(16)
With respect to the amount of the contributions which my Lords ask from the Colonies, it has been assumed that they should bear one half of the loss incurred on the sections of the Packet Service in which they are interested, and according to that assessment the contributions should be, as previously pointed out,
Ceylon, ............ £1,400
Straits Settlements, £6,000
Hongkong, ............ £12,700
Their Lordships fear that in the previous letters which have passed on the subject the facts and calculations have not been put before the Secretary of State in a sufficiently clear and definite form,
They have therefore caused to be prepared by the Postmaster General's Department a memorandum and statement in figures, shewing precisely how the loss on this service should be divided, a copy of which is herewith transmitted.
You will observe that the calculation is based upon the service rendered, i.e., the number of Letters and the distance over which they are carried, and my Lords are unable to see that any fairer basis of agreement can be arrived at.
Lord KIMBERLEY's proposal to ask an equal payment from each Colony, would, besides any other objections, present the anomaly of calling upon Ceylon to pay more than her fair share.
It is further to be borne in mind that the Colonies would obtain a considerable set off, if they agreed to the proposal of my Lords, by the relief which it is intended to afford them from the obligation they now incur of paying half the additional annual loss of postage sustained by the Imperial Revenue since the Colonies joined the Postal Union, and thereby obtained a considerable reduction in their postage rates.
For the ten months ending 31st January, 1880, the sums chargeable to the three Colonies for half the additional loss are as follows:----
Ceylon, ............ £2,698
Straits Settlements, £3,459
Hongkong, ............ £2,828
£8,985
(17)
MEMORANDUM.
A Statement is enclosed giving the particulars of the Post Office calculation.
On reference to this Statement it will be seen that the mode of apportioning the loss on the Eastern Mail Service follows somewhat the formula adopted by Mr. COURTNEY.
The whole distance from Brindisi to Shanghai is divided into sections, and the gross subsidy paid to the Peninsular and Oriental Company (£360,000) is apportioned amongst these sections according to the annual mileage of each. One half of the cost of all the sections, amounting to £180,000, is assessed to the United Kingdom, the other half being charged rateably against India and the various Countries or Colonies making use of such sections in proportion to the number of letters conveyed on behalf of each.
The earnings are treated in the following manner. The whole Sea Postage collected by the Colonies is remitted in the first instance to the Imperial Post Office, where it is added to the Sea Postage collected by the United Kingdom for the purposes of apportionment. It is then divided into two Categories, viz.: (a) Sea Postage derived from Mails exchanged by the Colonies with the United Kingdom, and (b) Sea Postage accruing from intermediate Mails and from Mails conveyed on behalf of Foreign Countries. The former description of Sea Postage is allotted half to the United Kingdom and half to the Colony with which the Mails are exchanged, whilst the latter is shared in the same proportions as the cost of the section or sections over which the Mails may be carried.
The share of the loss apportioned to each Colony is found by deducting the Colonial share of the earnings from the Colonial share of the cost.
22nd May, 1882.
or at the rate of £10,782 for a year.
To this extent the Colonies would be relieved from 12th February, 1880, on entering upon the new arrangement which would take effect from that date.
My Lords trust that Lord KIMBERLEY will, with this further explanation before him, reconsider the terms which he is ready to propose to the Colonies, and endeavour to obtain from them payment of the amounts which, as their Lordships are convinced, are fairly due from them.
Statement showing as regards Ceylon, Straits Settlements and Hongkong (1) the Division of Cost of the Eastern Mail Service (2) the Division of the Receipts for Sea Postage, and (3) the Apportionment of the Loss on the Service.
SECTIONAL LINES INTO WHICH THE SERVICE IS DIVIDED. Annual Mileage of each Section. I.-DIVISION OF COST. Apportionment of Subsidy amongst the Sections according to Mileage. Moiety of Cost Assessed to the United Kingdom. Moiety of Cost assessed to other Places in proportion to number of Letters conveyed on behalf of each. India Ceylon. Straits Settlements. Hongkong, and other Places. Total. Mediterranean, 85,800 £39,767 £... £... £... £... £... £... Suez and Bombay, 309,088 £143,258 £71,629 £... £... £... £... £71,629 Suez and Galle, 178,984 £82,956 £41,478 £... £... £... £... £41,478 Galle and Singapore.... 62,888 £29,155 £... £... £2,217 £1,909 £... £4,126 Singapore & Hongkong, 74,724 £34,634 £... £... £... £3,958 £13,771 £17,729 Hongkong & Shanghai, 45,240 £20,968 £... £... £... £... £10,484 £10,484 TOTALS, 776,724 £360,000 £180,000 £... £2,721 £7,071 £156,437 £180,000R. G. W. HERBERT, ESQ.,
Colonial Office.
I have, &c.,
(Signed)
LEONARD COURTNEY.
}
161
(16)
With respect to the amount of the contributions which my Lords ask from the Colonies, it has been assumed that they should bear one half of the loss incurred on the sections of the Packet Service in which they are interested, and according to that assessment the contributions should be, as previously pointed out,
Ceylon,
Straits Settlements, Hongkong,......
..£ 1,400
..£ 6,000
.£12,700
Their Lordships fear that in the previous letters which have passed on the subject the facts and calculations have not been put before the Secretary of State in a sufficiently clear and definite form,
They have therefore caused to be prepared by the Postmaster General's Department a memorandum and statement in figures, shewing precisely how the loss on this service should be divided, a copy of which is herewith transmitted.
You will observe that the calculation is based upon the service rendered, i e. the number of Letters and the distance over which they are carried, and my Lords are unable to see that any fairer basis of agreement can be arrived at.
Lord KIMBERLEY's proposal to ask an equal payment from each Colony, would, besides any other objections, present the anomaly of calling upon Ceylon to pay more than her fair share.
It is further to be borne in mind that the Colonies would obtain a considerable set off, if they agreed to the proposal of my Lords, by the relief which it is intended to afford them from the obligation they now incur of paying half the additional annual loss of postage sustained by the Imperial Revenue since the Colonies joined the Postal Union, and thereby obtained a considerable reduction in their postage
rates.
For the ten mouths ending 31st January, 1880, the sums chargeable to the three Colonies for half the additional loss are as follows:----
Ceylon,
Straits Settlements,. Hongkong.
.£2,698
£3,459
£2,828
£8,985
vision of Cost.
farision of Sea Postage.
aportionment of Luss.
(17)
MEMORANDUM.
A Statement is enclosed giving the particulars of the Post Office calculation.
On reference to this Statement it will be seen that the mode of apportioning the loss on the Eastern Mail Service follows somewhat the formula adopted by Mr. COURTNEY.
The whole distance from Brindisi to Shanghai is divided into sections, and the gross subsidy paid to the Peninsular and Oriental Company (£360,000) is apportioned amongst these sections according to the annual mileage of each. One half of the cost of all the sections, amounting to £180,000, is assessed to the United Kingdom, the other half being charged rateably against India and the various Countries or Colonies making use of such sections in proportion to the number of letters conveyed on behalf of each.
The earnings are treated in the following manner. The whole Sea Postage collected by the Colonies is remitted in the first instance to the Imperial Post Office, where it is added to the Sea Postage collected by the United Kingdom for the purposes of apportionment. It is then divided into two Categories, viz. : (a) Sea Postage derived from Mails exchanged by the Colonies with the United Kingdom, and (b) Sea Postage accruing from intermediate Mails and from Mails conveyed on behalf of Foreign Countries. The former description of Sea Postage is allotted half to the United Kingdom and half to the Colony with which the Mails are exchanged, whilst the latter is shared in the same proportions as the cost of the section or sections over which the Mails may be carried.
The share of the loss apportioned to each Colony is found by deducting the Colonial share of the earnings from the Colonial share of the cost.
22nd May, 1882.
or at the rate of £10,782 for a year.
To this extent the Colonies would be relieved from 12th February, 1880, on entering upon the new arrangement which would take effect from that date.
My Lords trust that Lord KIMBERLEY will, with this further explanation before him, reconsider the terms which he is ready to propose to the Colonies, and endeavour to obtain from them payment of the amounts which as their Lordships are convinced, are fairly due from them.
Statement showing as regards Ceylon, Straits Settlements and Hongkong (1) the Division of Cost of the Eastern Mail Service (2) the Division of the Receipts for Sea Postage, and (3) the Apportionment of the Loss on the Service.
SECTIONAL LINES INTO WHICH
THE SERVICE IS
DIVIDED.
Annual Mileage of
each
Section.
I.-DIVISION OF COST.
Apportion- Moiety of
ment of
Subsidy amongst the Sections according to Mileage.
Cost Assessed to the United Kingdom.
*
Moiety of Cost assessed to other Places in proportion to number of Letters conveyed on bebulf of each.
Share falling to
Straits
India
Ceylon. Set-
Hongkong, and other
Total.
Hements.
Places.
£
器
£
£
Mediterranean,
85,800
Suez and Bombay,.
309,088
Suez and Galle,
178,984
Galle and Singapore....
62,888
39,767
143,258 71,629
82.956 41,478
38,417 19.200
19,883
355
293
341
18,895 19,881
71,629 71,629
2,217
1,909
2,146 35,206
41,478
83
3,958
3,979 11,188
19.208
Singapore & Hongkong,
74,724
Hongkong & Shanghai,
45,240
34,634 17,317
20,968 10,484
43
23
605
7,066
9,603
17,317
306
239
9,916
10,484
TOTALS, 776,724
360,000 180,000
2,721
7,071 13,771 156,437 180,000
R. G. W. HERBERT, ESQ.,
Colonial Office.
I have, &c.,
(Signed)
LEONARD COURTNEY.
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