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Chapter 08 - Location Planning and Analysis
8-1
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
CHAPTER 08
LOCATION PLANNING AND ANALYSIS
Teaching Notes
Facility location refers to the location of a service or manufacturing facility with respect to customers,
suppliers, and other existing facilities such that it allows the company to gain a competitive and/or
strategic edge. In making a location decision, both tangible costs (e.g., cost of operating the facility; cost
of land (if it applies); cost of labor, taxes, and utilities; cost of inbound and outbound transportation) and
intangible costs (e.g., availability of qualified labor and labor climate) must be considered. Because the
location decision usually involves making a large capital investment, it not only affects the firm’s ability
to compete but also has long-term strategic implications. Therefore, in making the location decision, we
should consider issues related to marketing, production, transportation and other relevant costs as well as
the strategy of the organization. The importance of various factors in relation to the location decision will
vary between service and manufacturing organizations and from industry to industry as well.
Reading: Innovative MCI Unit Finds Culture Shock in Colorado Springs
1. The most severe fallouts from the move to Colorado were:
a. Numerous key executives and engineers, and hundreds of the division’s minority
population refused to relocate, or fled Colorado Springs soon after relocating.
b. The move isolated engineers from top management and from marketing colleagues at
headquarters, undermining collaboration.
c. The professionals whom Mr. Liebhaber hoped to recruit proved difficult and expensive to
woo to Colorado Springs.
d. Thousands of workers (more than expected) took advantage of the relocation package,
undercutting plans to recruit lower-cost employees in Colorado.
e. The move cost more than $200 million, far more than anticipated, and most of the
expected savings never materialized.
2. Mr. Liebhaber should have sought out more information by conducting surveys of workers,
managers, and engineers asking them for the following information: how likely they were to
move, ratings of factors that would affect their decision to move, ratings of factors that they
valued about their current work environment, and ratings about factors that they considered
important for quality of life issues. Mr. Liebhaber seems to have considered his own quality of
life and work issues only.
Reading: Site Selection Grows Up: Improved Tech Tools Make the Process
Faster, Better
1. Tech tools have improved the process of site selection by providing in-depth market research
analyzing traffic volumes, concentration of other retail businesses, and demographic data. In
addition, some of these tools provide aerial photographs of proposed sites and surrounding areas.
Some tools allow users to plug in the site characteristics criteria and a proposed location and then
push a button to receive output such as maps, reports, and models. Other tools provide market
optimization software that informs the user on how best to carve out territories, helping to
eliminate encroachment and cannibalization.
2. Franchisors also can use geoVue and other similar tools to analyze changes in performance,
demographics, or other factors that would warrant closing or relocating a facility.

8-2
Education.
Answers to Discussion and Review Questions
1. Location decisions can have an impact on access to markets, costs (including materials, labor,
rent, construction, and transportation), quality of work life (e.g., community-related factors), and
growth potential.
2. The fact that similar businesses are located widely underscores the futility of searching for that
“one best” location. However, it does not necessarily follow that little attention is needed in
finding a suitable location. Many organizations that have not been successful are no longer in
business (e.g., service stations in poor locations, motels bypassed by an expressway, and so on).
Moreover, others currently in operation might be much more profitable in another location. For
some businesses (e.g., restaurants) regional factors are not particularly significant, and even
community-related factors are of little importance. However, site-related factors are extremely
important. Similarly, there are numerous examples of firms that are less affected by community
or site factors than they are by regional factors (i.e., nearness to market, labor, or raw materials).
3. Important community factors include size of the community, public transportation, schools,
recreational facilities, libraries, restaurants, shopping centers, cultural and entertainment
selections, and so on.
4. Manufacturing and non-manufacturing organizations tend to approach location decisions in a
similar way, but the factors that are important to each tend to differ. Although both tend to take
costs and profits into consideration, manufacturing firms are often concerned with location of raw
materials, transportation costs, availability of energy and water, and similar factors. Non-
manufacturing firms often are more concerned with convenience, access to markets, traffic flow,
and the like.
5. Foreign locations may offer lower taxes, access to markets, availability of raw materials, lower
transportation costs (due to nearness to market), and lower labor costs than a comparable
domestic location. Potential drawbacks often relate to the political and economic stability of the
host country and attitudes of the populace towards a particular nation, industry, or firm.
6. Location rating, or factor rating, is a qualitative technique used to develop an overall composite
index for an alternative, which can be used to compare location alternatives. It involves
identifying relevant factors, assigning relative weights to the factors, and rating each alternative
with respect to the factors.
7. The first step is to decide on the criteria to use to evaluate location alternatives (e.g., cost, profits,
community service, etc.). The second step is to identify any important factors that will dominate
the decision. The third step is to develop location alternatives (country, general region, small
number of community alternatives, and site alternatives among the community alternatives). The
fourth step is to evaluate the alternatives and make a selection.
8. Locational breakeven analysis generally assumes the following:
a. Fixed costs are constant for the range of probable output.
b. Variable costs are linear for the range of probable output.
c. The level of output that will be required can be estimated within a narrow range.
d. A single product is involved.
9. Recent trends include the location of foreign manufacturing plants in the United States, having
smaller factories located close to markets, choosing nearby suppliers, low-cost labor is becoming
less of a factor in many industries, and advances in information technology make it less important
to have design, engineering, etc. close to the factory.
Taking Stock
1. Due to economies of scale, the centrally located large facility will be more efficient. The
scheduling and coordination between the large facility and suppliers or customers will be

8-3
Education.
simplified. However, due to distance, transportation/distribution costs to or from the large facility
will be much higher than those costs would be when using several smaller dispersed facilities
instead. Having several smaller dispersed facilities will not only reduce the transportation cost but
also increase the flexibility of the firm in terms of being able to reduce distribution lead time, thus
resulting in faster deliveries or receipts of goods or merchandise.
2. Unlike the process design decision, the facility location decision is a macro decision and thus
requires the involvement of top-level management. The larger the facility, the higher the level of
involvement of the company personnel will be. In terms of various functions or departments
within the company, manufacturing (or operations), logistics and distribution, marketing, and
strategic planning must be involved. Depending on the type of facility considered, other groups
may also need to be included in making this important decision.
3. Due to the advancement of data mining and data warehousing, and the related improvements in
computers’ ability to store and exchange data, we can generate much more useful information to
make the facility location decision.
Critical Thinking Exercises
1. The company does have some social responsibility. Because the company employs such a large
percentage of the city’s workforce, its leaving is certain to have a major impact on town
businesses. It is likely that unless new sources of employment emerge, some residents may be
forced to move away, and many businesses may fail, or barely get by.
Thus, the company must weigh the projected benefits of the move against the actual and social
costs of the move. It also must factor in the primary reasons for the move. These might include
high taxes, adverse weather conditions, a shift in its markets, poor public relations, labor strife, an
aging facility that has to be replaced, an insufficient supply of essential labor skills, and a need to
be closer to a major customer.
2. Trade-offs involved would include:
a. The nature of current, and more importantly, the forecasted future demand.
b. Current demographics and the future expected changes in demographics for this area.
c. The nature and type of competition for this area. We will need to predict what our
competitors will be doing in the short-term as well as in the long-term.
d. We need to divide the area into several sub-areas and consider the advantages and
disadvantages of opening a store in each of the sub-areas.
e. What is the projected impact of the new location(s) on the sales of the existing locations?
If the demand is too low and we decide to open more than one site, we will have to experience
the cost of closing at least one of the existing locations and perhaps absorb the loss of sales in
our existing store. On the other hand, if the demand is higher than we expected, and we opened
up a store only on one site, we will have to consider the opportunity cost of lost sales and profit.

8-4
Education.
3.
Options Pros Cons
Avoid such locations. Avoid the problem completely. Miss out on potential business.
Locate there and deal with it. Potential business. Need to make sure workers
know and abide by the policy.
Risk cheating and possible
consequences.
When in Rome … (assuming
“bribes” are more like “tips”
to service people).
Potential business. Probably a fine line between
tipping and bribing, very risky.
4. Student answers will vary. Some possible answers follow:
a. If a company located a manufacturing facility that creates heavy pollution adjacent to an
elementary school or a retirement home, this action would violate the Common Good
Principle.
b. If the CEO of a corporation accepted a bribe to locate a new facility in a city, this action
would violate the Virtue Principle.
c. If an executive asked a subordinate to alter some numbers in a factor-scoring model so that
the executive’s location choice came out on top, this action would violate the Rights Principle
and the Virtue Principle.
Solutions
1. Given: We have the following information shown below for two plant location alternatives:
Omaha Kansas City
R $185 $185
v $36 $47
Annual FC $1,200,000 $1,400,000
Expected annual
demand (units) (Q)
8,000 12,000
Determine the expected profits per year for each alternative:
Profit = Q(R – v) – FC
Omaha: 8,000($185 – $36) – $1,200,000 = -$8,000
Kansas City: 12,000($185 – $47) – $1,400,000 = $256,000
Conclusion: Kansas City would produce the greater profit.

8-5
Education.
2. Given: We have the following information shown below for three potential locations for a new
outlet:
A B C
R $2.65 $2.65 $2.65
v $1.76 $1.76 $1.76
Monthly FC $5,000 $5,500 $5,800
a. Determine the monthly volume necessary at each location to realize a monthly profit of
$10,000 (round to 1 decimal).
𝑄 =
𝑆𝑝𝑒𝑐𝑖𝑓𝑖𝑒𝑑 𝑝𝑟𝑜𝑓𝑖𝑡+𝐹𝐶
𝑅−𝑣
Location A Volume:
𝑄 =
𝑅−𝑣
=
10,000 + 5,000
2.65−1.76
= 16,853.9 𝑢𝑛𝑖𝑡𝑠
Location B Volume:
𝑄 =
𝑅−𝑣
=
10,000 + 5,500
2.65−1.76
= 17,415.7 𝑢𝑛𝑖𝑡𝑠
Location C Volume:
𝑄 =
𝑅−𝑣
=
10,000 + 5,800
2.65−1.76
= 17,752.8 𝑢𝑛𝑖𝑡𝑠
b. Determine the expected profits at each facility given the expected monthly volumes:
A = 21,000 per month, B = 22,000 per month, & C = 23,000 per month.
Profit = Q(R – v) – FC
Location A: 21,000($2.65 – $1.76) – $5,000 = $13,690 per month
Location B: 22,000($2.65 – $1.76) – $5,500 = $14,080 per month
Location C: 23,000($2.65 – $1.76) – $5,800 = $14,670 per month
Conclusion: Location C would yield the greatest profits.

8-6
Education.
3. Given: There are two alternatives for which costs and revenue are listed below:
A B
R $17,000 $17,000
v $14,000 $13,000
Annual FC $800,000 $920,000
a. Find the volume at which the two locations have the same total cost (TC).
TC = FC + VC
TC = FC + (Q x v)
TC (Location A) = $800,000 + $14,000Q
TC (Location B) = $920,000 + $13,000Q
Set the two cost equations equal and solve for Q:
$800,000 + $14,000Q = $920,000 + $13,000Q
$14,000Q – $13,000Q = $920,000 – $800,000
$1,000Q = $120,000
Q = $120,000 / $1,000
Q = 120 units
b. Range over which A and B would be superior:
Location A has the lowest fixed costs; therefore, it is preferred at lower volumes.
Conclusion:
Location A Preferred: 0 < 120 units
Location B Preferred: > 120 units
4. Given: There are three alternatives for which costs are given below:
A (new) B (sub) C (expand)
v $500 $2,500 $1,000
Annual FC $250,000 --- $50,000
a. Step 1: Determine the total cost equation for each alternative.
TC = FC + VC
TC = FC + (Q x v)
A: TC = $250,000 + $500Q
B: TC = $2,500Q
C: TC = $50,000 + $1,000Q

8-7
Education.
Step 2: Graph the alternatives.
Step 3: Determine over what range each alternative is preferred.
Looking at the graph, we can tell that Alternative B is preferred over the lowest range,
Alternative C is preferred over the middle range, and Alternative A is preferred over the
highest range.
First, we find the indifference (break-even) point between Alternatives B & C by setting their
total cost equations equal to each other and solving for Q.
B: TC = $2,500Q
C: TC = $50,000 + $1,000Q
$2,500Q = $50,000 + $1,000Q
$2,500Q – $1,000Q = $50,000
$1,500Q = $50,000
Q = $50,000 / $1,500
Q = 33.33 units
Second, we find the indifference (break-even) point between Alternatives C & A by setting
their total cost equations equal to each other and solving for Q.
C: TC = $50,000 + $1,000Q
A: TC = $250,000 + $500Q
$50,000 + $1,000Q = $250,000 + $500Q
$1,000Q – $500Q = $250,000 – $50,000
$500Q = $200,000
Q = $200,000 / $500
Q = 400 units
A (new location)
C (expansion)
B (sub-
contract)
33.3 100 200 300 400
500
400
300
200
100
0
TC
($000)
B C A
[250]
[50]
No. of Boats/yr.

8-8
Education.
Conclusion:
Alternative B preferred: < 33.33 units
Alternative C preferred: > 33.33 units to < 400 units
Alternative A preferred: > 400 units
b. Expected volume of 150 boats:
Based on the graph, Alternative C would yield the lowest total cost (TC) at a volume of 150
boats.
c. Other factors that might be considered when deciding between the expansion and
subcontracting alternatives include subcontracting costs will be known with greater certainty,
subcontracting provides a secondary (backup) source of supply, and expansion offers more
control over operations.
5. Rework Problem 4b using this additional information: Alternative A (New Location) will have an
additional $4,000 in fixed costs per year. Alternative B (Subcontracting) will have $25,000 in
fixed costs per year. Alternative C (Expansion) will have an additional $70,000 in fixed costs per
year.
Step 1: Change the costs in the table.
A (new) B (sub) C (expand)
v $500 $2,500 $1,000
Annual FC $254,000 $25,000 $120,000
Step 2: Determine the total cost equation for each alternative.
TC = FC + VC
TC = FC + (Q x v)
A: TC = $254,000 + $500Q
B: TC = $25,000 + $2,500Q
C: TC = $120,000 + $1,000Q
Step 3: Find TC for 150 units.
A: TC = $254,000 + $500(150) = $329,000
B: TC = $25,000 + $2,500(150) = $400,000
C: TC = $120,000 + $1,000(150) = $270,000
Conclusion: Alternative C (Expand) would yield the lowest total cost for an expected volume of
150 boats.

8-9
Education.
6. Given: Expected annual volume (Q) = 10,000 units. There are three lease alternatives for which
costs are given below:
Memphis Biloxi Birmingham
Lease building &
equipment $40,000 $60,000 $100,000
Transportation $50,000 $60,000 $25,000
v $8 $4 $5
Step 1: Determine fixed cost (FC) for each alternative & add FC to table.
FC = Lease cost + transportation cost.
Memphis Biloxi Birmingham
Lease building &
equipment $40,000 $60,000 $100,000
Transportation $50,000 $60,000 $25,000
Annual FC $90,000 $120,000 $125,000
v $8 $4 $5
Step 2: Determine the total cost equation for each alternative.
TC = FC + VC
TC = FC + (Q x v)
Memphis: $90,000 + $8Q
Biloxi: $120,000 + $4Q
Birmingham: $125,000 + $5Q
Step 3: Find TC for 10,000 units.
Memphis: $90,000 + $8(10,000) = $170,000
Biloxi: $120,000 + $4(10,000) = $160,000
Birmingham: $125,000 + $5(10,000) = $175,000
Conclusion: The Biloxi alternative yields the lowest total cost for an expected annual volume of
10,000 units.

8-10
Education.
7. Given: There are two alternative shop locations for which costs are shown below:
City Outside
R $90 $90
v $30 $40
Monthly FC $7,000 $4,700
a. (1) Monthly profit for Q = 200 cars:
Step 1: Determine total profit equation for each alternative.
Total profit = Q(R – v) – FC
City: Q($90 – $30) – $7,000
Outside: Q($90 – $40) – $4,700
Step 2: Determine total profit for each alternative at the expected monthly volume.
City: 200($90 – $30) – $7,000 = $5,000
Outside: 200($90 – $40) – $4,700 = $5,300
Conclusion: Outside location yields the greatest profit if monthly demand is 200 cars.
(2) Monthly profit for Q = 300 cars:
City: 300($90 – $30) – $7,000 = $11,000
Outside: 300($90 – $40) – $4,700 = $10,300
Conclusion: City location yields the greatest profit if monthly demand is 300 cars.
b. Determine the indifference (break-even point) between the two locations.
Set their total profit equations equal to each other and solve for Q:
Q($90 – $30) – $7,000 = Q($90 – $40) – $4,700
$60Q – $7,000 = $50Q – $4,700
$60Q – $50Q = -$4,700 – (-$7,000)
$10Q = $2,300
Q = $2,300 / $10
Q = 230 cars

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8-11
Education.
8. Given: We are provided the location factors below for four different types of organizations.
Factor Local bank Steel mill Food warehouse Public school
Convenience for
customers
Attractiveness of
building
Nearness to raw
materials
Large amounts
of power
Pollution
controls
Labor cost and
availability
Transportation
costs
Construction
costs
Student answers will vary regarding how they rate the importance of each factor in terms of
making location decisions using L = low importance, M = moderate importance, and H = high
importance. One possible set of answers is given below.
Factor Local bank Steel mill Food warehouse Public school
Convenience for
customers H L M–H M–H
Attractiveness of
building H L M M–H
Nearness to raw
materials L H L M
Large amounts
of power L H L L
Pollution
controls L H L L
Labor cost and
availability L M L L
Transportation
costs L M–H M–H M
Construction
costs M H M M–H

8-12
Education.
9. Given: We are given factors, weights, and factor rating scores for three locations. Scores range
from 1 – 100 (best).
Location Score
Factor Wt. A B C
Convenience .15 80 70 60
Parking .20 72 76 92
Display area .18 88 90 90
Shopper traffic .27 94 86 80
Operating costs .10 98 90 82
Neighborhood .10 96 85 75
1.00
Multiply the factor weight by the score for each factor and sum the results for each location
alternative.
Weight x Score
Factor Wt. A B C
Convenience .15 .15(80) = 12.00 .15(70) = 10.50 .15(60) = 9.00
Parking .20 .20(72) = 14.40 .20(76) = 15.20 .20(92) = 18.40
Display area .18 .18(88) = 15.84 .18(90) = 16.20 .18(90) = 16.20
Shopper traffic .27 .27(94) = 25.38 .27(86) = 23.22 .27(80) = 21.60
Operating costs .10 .10(98) = 9.80 .10(90) = 9.00 .10(82) = 8.20
Neighborhood .10 .10(96) = 9.60 .10(85) = 8.50 .10(75) = 7.50
1.00 87.02 82.62 80.90
Conclusion: Based on composite score, Location A seems to be the best.

8-13
Education.
10. Given: We are given factors, weights, and factor rating scores for three locations. Scores range
from 1 – 100 (best).
Location Score
Factor Wt. East #1 East #2 West
Initial Cost 8 100 150 140
Traffic 10 40 40 30
Maintenance 6 20 25 18
Dock space 6 25 10 12
Neighborhood 4 12 8 15
Multiply the factor weight by the score for each factor and sum the results for each location
alternative.
Weight x Score
Factor Wt. East #1 East #2 West
Initial Cost 8 8(100) = 800 8(150) = 1200 8(140) = 1120
Traffic 10 10(40) = 400 10(40) = 400 10(30) = 300
Maintenance 6 6(20) = 120 6(25) = 150 6(18) = 108
Dock space 6 6(25) = 150 6(10) = 60 6(12) = 72
Neighborhood 4 4(12) = 48 4(8) = 32 4(15) = 60
1518 1842 1660
Conclusion: Based on composite score, Location East #2 seems to be the best.

8-14
Education.
11. Given: We are given factors and factor rating scores for three locations. Scores range from 1 – 10
(best).
Location Score
Factor A B C
Business services 9 5 5
Community services 7 6 7
Real estate cost 3 8 7
Construction costs 5 6 5
Cost of living 4 7 8
Taxes 5 5 4
Transportation 6 7 8
a. Assume that the manager weights each factor equally.
Because there are seven factors, each factor will have a weight of 1/7. Therefore, we can
sum the scores and divide by 7 to determine the weighted score for each alternative.
Factor A B C
Business services 9 5 5
Community services 7 6 7
Real estate cost 3 8 7
Construction costs 5 6 5
Cost of living 4 7 8
Taxes 5 5 4
Transportation 6 7 8
Total 39 44 44
Total / 7 5.57 6.29 6.29
Conclusion: Location B or C is best, followed by Location A.

8-15
Education.
b. Two of the factors (business services and construction costs) are given weights that are
double the weights of the other factors.
We will give these two factors weights of 2/9 and the other five factors weights of 1/9.
Then, we will multiply each factor’s rating by that factor’s weight.
Factor Location Score Weight Weight x Score
Business Services 9 5 5 2/9 18/9 10/9 10/9
Community Services 7 6 7 1/9 7/9 6/9 7/9
Real Estate Cost 3 8 7 1/9 3/9 8/9 7/9
Construction Costs 5 6 5 2/9 10/9 12/9 10/9
Cost of Living 4 7 8 1/9 4/9 7/9 8/9
Taxes 5 5 4 1/9 5/9 5/9 4/9
Transportation 6 7 8 1/9 6/9 7/9 8/9
1.0 53/9 55/9 54/9
Conclusion: Location B is best, followed by Location C, and then Location A.
12. Given: A toy manufacturer produces toys in five locations and will ship raw materials from a
new, centralized warehouse. The monthly quantities to be shipped to each location are identical.
The coordinates for all five locations are shown below.
Location X Y
A 3 7
B 8 2
C 4 6
D 4 1
E 6 4
We know that the quantities to be shipped to each location are identical so we can eliminate
quantities from consideration. The correct formulas for the center of gravity are shown below:
𝑥̅ =
∑ 𝑥𝑖
𝑛
𝑦
̅ =
∑ 𝑦𝑖
𝑛

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243
The proceedings in the House of Commons on Dr. Musgrave’s
charge are given in Parliamentary History, vol. xvi. p. 763.
Lord Mahon notices the charge as being utterly unfounded.—
(History, vol. iv. p. 410.) Dr. Musgrave had published an
excellent edition of Euripides, but in his latter years his reason
was believed to be clouded. He died in 1780.—E.
244
This does not agree with the authenticated accounts of the
war in Corsica. So far from it, Paoli at first succeeded in
repelling the attacks of the French, notwithstanding their
superiority of numbers. They were worsted in an engagement
near Loreto, with great loss, several companies having been
drowned in the Golo in the attempt to make their escape. On
the 29th of October the corps sent to attack Murato received a
signal defeat, their commander being among the slain.—
(Sismondi’s Histoire de France, vol. xxix. p. 380.)—The
overwhelming force brought over by the Count de Vaux early
in 1769 soon dispersed the Corsican levies, and rendered all
further resistance on the part of Paoli perfectly vain. Paoli was
much respected in England by men of all parties. At the
commencement of the Revolution he was invited to France,
and after an enthusiastic reception by the National Assembly,
placed in the command of Corsica, with the rank of
Lieutenant-General of the Island. The troubles that followed
led him to offer the Crown to England in 1793; but the English
rule proved unfortunate both to the Corsicans and to himself.
He soon returned to England, and died in the neighbourhood
of London, in his eightieth year. He left a considerable fortune,
part of which eventually fell under the administration of the
Court of Chancery, and the Lord Chancellor issued a
commission to Corsica to ascertain his heirs.—See more of him
in Capefigue Diplomates Européens, pp. 123–133—E.
245
According to the Duke’s own account in his Memoirs he was at
this time on uneasy terms with his colleagues, of whose
general policy he disapproved, and by whom he was generally

outvoted in the Cabinet. Nothing but the absence of an
adequate excuse for resignation kept him in office. It may be
observed, also, that his marriage (to Miss Jane Wrottesly),
which took place on the 24th of June, had been followed by
his installation at Cambridge, where his presence was
indispensable.—E.
246
Mr. Thomas Pitt, nephew of Lord Chatham, was on some
occasions a man of probity and generosity. He gave five
thousand pounds a-piece to his two sisters, left destitute by
their father; and himself marrying Miss Wilkinson, whose elder
sister had disobliged their father by marrying against his
consent, both Mr. Pitt and his wife would not conclude their
marriage without disclaiming all advantage to the prejudice of
the elder sister. [See vol. i. p. 339. His nominees were Mr.
Gerard Hamilton, and Mr. Crawford, Chamberlain for the
County of Fife.—E.]
247
He was on that day aged forty-five, the date of his famous
number and device.
248
The knowledge of this fact is said to have been the reason
why the jury did not give higher damages.—E.
249
James Fitzgerald, Earl of Kildare, first Duke of Leinster. [An
amiable nobleman, always zealous to promote the welfare of
his country. He died in 1773.—E.]
250
The King’s Letters to Lord North contain the following
reference to Lord Shannon and another politician of the same
stamp. “Lord Townshend’s idea of a pension to Lord Shannon
is absurd—to let him do all the mischief he can while his
assistance could be of use, and then reward him when his
good wishes can avail nothing. Mr. Allen is only an additional
proof of that aversion to English Government and of that
avowed profligacy that the gentlemen of that country seem to
despise masking with the name of conscience, and must

sooner or later oblige this country seriously to consider
whether the uniting it to this Crown would not be the only
means of making both islands flourishing.” Lord Shannon died
in 1807.—E.
251
In the money-bills, the Irish Parliament had endeavoured to
lay a tax on English beer, but it was rejected by a few voices;
the Speaker, fearing to lose his place of 4000l. a-year at the
head of the revenue, should they provoke England too far.
They made an alteration, however, in their own gauging,
which some here thought equivalent to a tax on our beer, and
the Council were inclined to reject that alteration, yet,
desirous of getting the money-bills passed, and the Attorney-
General declaring that it was no violation of Poynings’s Act,
the alteration was suffered to remain, and the money-bills
were sent back uncorrected.
252
Of King’s Remembrancer. It was a little before this time that
Calcraft, ignoble as his birth and rise were, aspired, by the
Duke of Grafton’s favour, to the title of Earl of Ormond.
George Selwyn said, “Calcraft might have pretensions to that
title, as no doubt he must have had many Butlers in his
family.”
253
Junius’s account of the prosecution, Letter xxxiii, is fair—
making the usual deductions. See also Rex v. Vaughan
(Burrow’s Reports, vol. iv. p. 4494)—by which it seems that
the motion for the criminal information was made by Mr.
Dunning.—“An Appeal to the Public on Behalf of Samuel
Vaughan Esq.,” 8vo., states some mitigating circumstances.—
E.
254
Of Valeroyal [he died in 1779, aged fifty-three].—E.
255
The evidence of Sir Philip Francis being the author of Junius
has been observed by an eminent lawyer who took no part in

the controversy, to be such as would be held conclusive by a
jury on a question of fact.—E.
256
By Earl Waldegrave she had three daughters,—the Ladies
Laura, Maria, and Horatia.
257
The King and Queen certainly intended it should be supposed
Lady Waldegrave was the Duke’s mistress. The world
interpreted it in a contrary sense in compliment to the Queen’s
virtue, who on that occasion wished her virtue had been
thought more accommodating.
258
Walpole is mistaken here. The King was at least as much
opposed to the Duke of Gloucester’s marriage as the Princess
Dowager. As late as in 1775 his sentiments remained
unaltered, and in granting the Duke permission to travel on
the Continent, he positively declined to make a provision for
his Royal Highness’s family. In a letter to Lord North, 15th
January, 1775, the King says—“I cannot deny that on the
subject of this Duke my heart is wounded. I have ever loved
him with the fondness one bears to a child.” “His highly
disgraceful step,” &c. “—his wife, whom I never can think of
placing in a situation to answer her extreme pride and vanity.
Should any accident befall the Duke, I shall certainly provide
for his children.”
Eventually the King acted with great generosity towards the
Duchess and her son and daughter by the Duke. Their
conduct was so irreproachable that the marriage could no
longer have been a subject of regret to him.—E.

Transcriber’s Notes
Punctuation and spelling were made consistent when
a predominant preference was found in this book;
otherwise they were not changed.
Simple typographical errors were corrected;
occasional unbalanced quotation marks were corrected.
Ambiguous hyphens at the ends of lines were
retained; occurrences of inconsistent hyphenation have
not been changed.
“Massachusets” was mostly spelled that way
throughout this book.

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