mails. The actual estimate is that a parcel
travels in 1.8 mails.

Hence--

Total handling of 1 letter = 1 letter posted + 1 letter delivered + 0.6
letter forwarded.

Total handling of 1 parcel = 1 parcel posted + 1 parcel delivered + 0.8
parcel forwarded.

Now a letter forwarded = 1/3 letter posted and delivered (Table D).

And a parcel forwarded = 1/3 parcel posted and delivered (Table D).

Hence total handling of 1 letter = 1.2 letter posted and delivered.

And total handling of 1 parcel = 1.26 parcel posted and delivered.

The ratio between the total cost of handling (indoor) of 1 letter and
the total cost of handling (indoor) of 1 parcel is therefore--

1.2 x 1 : 1.26 x 12 = 1 : 12.6.

The normal unit cost for indoor work is [L]15 (approximately).

For outdoor work the ratio is 1: 10, and the normal unit cost [L]22 10s.

The ratio for all indoor and outdoor services is therefore approximately
1: 11.

* * * * *

TABLE F

ACTUAL COST OF STAFF FOR LETTERS AND PARCELS.

The total cost of handling a parcel is 11 times the total cost of
handling a packet other than a parcel (Table E).

In 1913-14 the total number of parcels dealt with was 133,663,000 (Table
A).

The cost of handling these parcels was equivalent to the cost of
handling 133,663,000 x 11 = 1,470,293,000 packets other than parcels.

In 1913-14 the total number of packets other than parcels dealt with was
5,831,550,000 (Table A).

And the total cost of staff engaged in dealing with all packets,
including parcels, was [L]10,263,460 (Table C).

Hence the total cost of handling 133,663,000 parcels was

[L]10,263,460 x 1,470,293,000/7,301,843,000 = [L]2,066,642.

And the total cost of handling 5,831,550,000 packets other than parcels
was [L]8,196,818.

TABLE G

ANALYSIS OF COST OF STAFF.

LETTER MAILS.

_Total Cost_, [L]8,196,818.

The handling of postal packets falls into the following groups of
operations:--

(_a_) Collection and delivery,

(_b_) Facing, stamping, and sorting,

(_c_) Administration and accounting.

The cost of administration and accounting when reduced to the individual
packet is extremely small. In general also it varies to some extent with
the size of the packet. Thus the newspaper packets and the halfpenny
packets, which are considerably heavier than the ordinary letters,
notoriously involve more difficulty and expense in administration; and
the postcard, the lig