ly. The letter service would
benefit, too, in other ways: it would be relieved of heavy packages; and
the existence of a parcel post service would justify the provision of
more efficient services in rural districts. The rates proposed were in
general very much higher than those at the time existing in Germany,
France, Switzerland, and Belgium, and they were estimated to yield a
profit.

In the further negotiations serious difficulty was encountered on two
points only: (1) the proportion of postage to be paid to the companies,
and (2) the length of time for which the agreement should be made. The
earlier agreement had been for an equal division between the Post Office
and the railway companies of the postage paid on all parcels. It was now
decided that payment could only be made in respect of parcels actually
conveyed by railway. The companies thereupon asked a higher proportion.
They anticipated that parcel post traffic would be largely long-distance
traffic, involving in many cases transfers on the journey; and although
they expected to retain a good deal of the short-distance traffic, they
could only achieve this by reducing their rates generally, especially
the rates for small parcels. After some higgling, they agreed under
protest to accept 55 per cent. of the postage on all such parcels as
should be conveyed by railway. They also agreed to the limitation of the
duration of the bargain, and the term was fixed at twenty-one years.

The agreement was embodied in the Post Office (Parcels) Act of
1882.[409] The companies parties to the arrangement undertook the
service of conveying the post parcels from the vehicles of the
Postmaster-General at the despatching railway station to the vehicles of
the Postmaster-General at the station of destination--that is to say,
they undertook all handling of parcel mails on railway stations and
transfer to and from trains and from train to train where necessary--in
consideration of payment of 55 per cent. of the postage paid on all
parcels conveyed by railway for the whole or part of their journey, the
Post Office being required to keep a record of the amount of postage
paid on every such parcel. The remuneration was to be paid to the
Railway Clearing Committee in London, by whom it would be distributed
between the various companies. The agreement was to continue for
twenty-one years, and thereafter until terminated by either party. The
Postmaster-General retained the power of revisi