Part 5

Couriers received fixed wages, which were either paid by the Deputy Postmaster-General out of the general funds of the department, or from grants in aid, given by the Legislature specifically for the support of the respective routes. Way Office keepers received no remuneration from the department: in many instances the existence of the Way Offices was unknown at Halifax. This was explained in great part by the manner in which such offices were usually established. A courier travelling a particular line of road received from the despatching postmaster a number of "way letters," or letters for persons living on or near his route. Partly for his own convenience, and partly for the accommodation of the persons addressed, the courier would leave packets of the letters at some house on the route, and the occupant would collect the postage on behalf of the courier. In course of time the courier induced the postmaster to make up the letters for this particular place separately, and to open a private account with the householder, who thus became an agent for the postmaster, and the house became a Way Office. The keepers of these Way Offices usually charged a fee of 2d. on each letter received or sent. The Post Office was not in any way concerned in the transactions, except that in some cases, where it was not always possible for the Way Office keeper to obtain his fee in advance, the practice grew up, with the co-operation of the Deputy-Postmaster, of charging forward the unpaid Way Office keeper's fee as unpaid forward "postage." Some of the Way Office keepers also claimed and exercised the same rights of franking as the Deputy Postmasters. Others were paid on the basis of a percentage of 20 per cent. of the postage collected; and in such cases some of the keepers still collected their fee of 2d., and some did not.

When letters were sent from one Way Office to another--as was frequently the case, since often there were several Way Offices in succession--a fresh fee was charged; and a letter might be charged four or five twopenny fees and no postage, the fees all being appropriated by the Way Office keepers and nothing finding its way to the Post Office revenue. Indeed, the Post Office department received scarcely any revenue from the Way Offices, and no sort of control over them was even attempted.

The House of Assembly was in the habit of establishing post routes, and of voting increases in the salaries of existing couriers, the resulting expense of which was to be paid by the Post Office. The action of the Legislature was often taken on the presentation of memorials from persons interested, or on the initiative of a member specially interested in Post Office matters with some axe to grind. The Legislature would vote, say, [L]10 or [L]20, for a courier to some remote place, for which the number of letters was negligible--perhaps a dozen in a year, perhaps two a week and a few newspapers. The resolution of the House would then be forwarded to the Postmaster-General, who by virtue of his delegated authority established the route, the cost over and above the amount voted by the House being drawn from Post Office funds. The whole system was permeated with jobbery, and the House used to become more than usually active in these matters as the elections approached. In Cape Breton, in 1841, the expenses of the couriers amounted to some [L]604, and the revenue, after deducting the commission of the three postmasters in the island, was some [L]308--the explanation being that the member for the island was one of the leaders in Post Office matters in the Legislature.

Internal correspondence was at this time literally nonexistent, many of the couriers conveying only newspapers (which in general went free), and fee letters (that is, letters charged only with the Way Office keeper's fee, and no postage). Except in five towns (Halifax, Yarmouth, and Picton in Nova Scotia; and St. John and Fredericton in New Brunswick) there was no provision for the delivery of letters except at the post office window. In those towns, delivery was made in the first instance at the post office, but all letters which were not called for within a short time after the arrival of the mail, were sent out for delivery throughout the town by letter carrier. An additional charge of 1d. per letter was made by the carrier, and retained by him as his remuneration. In some cases 1d. was charged also for the delivery of newspapers; in others this penny was charged only where the receivers could be induced to pay; and in some cases newspapers were delivered free. At Halifax two letter carriers were employed, and their total weekly earnings were estimated at [L]4 10s., indicating 1,080 as, approximately, the weekly number of letters and newspapers received. At Fredericton a charge of 1d. was made on letters and on newspapers, but the amount was taken by the postmaster, who paid a weekly wage to the carrier. The postmaster estimated his annual receipt at about [L]19 10s., corresponding with a weekly average of 90 letters and newspapers delivered in Fredericton. He paid the carrier [L]14 10s. per annum.

Up to 1827 there were no internal posts in Prince Edward Island. The only post office in the province was at Charlottetown. In 1827 the Legislature resolved to establish an inland service, and appointed couriers to travel weekly for the conveyance of letters. Way Office keepers were also nominated at various places. A uniform rate of 2d. for single letters, and 1/2d. for newspapers published in the island, was fixed for transmission within the island, and, in consideration of the whole expense being borne by the Provincial Treasury, the Deputy Postmaster-General of Nova Scotia and New Brunswick agreed to the retention by the province of the net revenue. The Way Office keepers received as their remuneration 20 per cent. on the postage collected, with the privilege of franking for transmission within the island. The province made a small grant, at first [L]20 per annum and later [L]30, in aid of the administration of the posts.

The first wish of the Home authorities was to bring the expenditure within the revenue, and after he had been in the colony some two months Mr. Page submitted a scheme which should remove the deficit in Nova Scotia, then over [L]1,000 a year.[121] This scheme, which was not lacking in boldness, proposed the discontinuance of no less than twenty-four couriers, and reduction of the frequency of the mail in two other cases, involving towns of some importance.

On the 6th July 1843 the Post Office of New Brunswick was separated from that of Nova Scotia and a large number of services abolished. Following on these drastic measures, the New Brunswick Legislature, in 1844, adopted a joint Address to his Majesty, praying for redress. They asked for a reduction of letter rates, for the abolition of newspaper rates, and for the application of all surplus revenue to the extension of facilities for inter-provincial communication, adding that in consideration of the introduction of these changes the Legislature would guarantee to provide such sums as might from time to time be necessary to defray the expenses of the department. The reply of the Colonial Office was that the prayer of the petition could not be granted, since other provinces were involved; but that, so long as the province guaranteed the charges, the proposal as regards newspapers, taken by itself, was unobjectionable.

The Home authorities, seeing that in Nova Scotia and New Brunswick the service still showed a deficit year by year, remained indisposed to introduce reduced rates; but when Lord Clanricarde was appointed Postmaster-General there was a change of policy. Lord Clanricarde came to the conclusion that the time was ripe for a reduction of rates in British North America, although he was convinced that such a reduction would entail heavy postal deficits in all the provinces. It would be for the provincial Legislatures to make good these deficits, and he concluded it was therefore expedient that the full control of the service should be handed over to the provincial authorities, subject to certain conditions imposed with the view of preventing friction between the provinces over the transit across the sea-board provinces of mails for or from the interior.

Lord Elgin, Secretary of State for the Colonies, suggested to the Governor-General[122] that one or two members of the Executive Councils of Canada, Nova Scotia, New Brunswick, and Prince Edward Island should meet at Montreal to discuss the question and mature a plan, which could be submitted to the respective Legislatures, for the assumption by the provinces of the administration of the Post Office. A conference was arranged, and a plan for the establishment of a uniform system throughout the British North American Colonies elaborated.

The conference made clear that in the repeated remonstrances against the "transfer of assumed surplus receipts" to the revenue of the British office there was no desire on the part of the provinces to make the Post Office a source of revenue, or, indeed, to call into question the prudent management of the Imperial Government; but that the remonstrances were prompted by a growing conviction of the great importance of an efficient postal system as a factor in their social and commercial welfare, and as "a means in a new country of extending civilization." The provinces were impressed by the great social and moral benefits which had followed the introduction of cheap postage in the Mother Country, and were anxious to extend to their own land the benefits of the system, which had already been introduced by their great neighbour. The delegates were satisfied that the most suitable rate would be 3d. the half ounce, uniform, irrespective of distance; but, thinking it likely that some of the provinces might be unwilling entirely to disregard distance, they recommended that an option be suggested for any province that wished so to do to charge double rates for distances greater than 300 miles. They recommended the establishment throughout British North America of a uniform system and rate of postage, with as little local modification as the circumstances of the various provinces might demand. But for two main reasons they were opposed to a common administration: (1) they considered that the control by each province of its postal establishment would be a powerful aid to economy in administration, would prevent imprudent extensions of postal accommodation, and would prevent also any feeling of jealousy between the provinces with regard to the application of the funds of the establishment to the extension of services in the respective provinces; (2) they thought the various provinces would be more likely to accept a system under local control, each province defraying the entire cost of its service, and retaining all postage collected within its limits, whether prepaid or post-paid.[123]

The Home authorities accepted the recommendations of the conference, subject to a few slight modifications in non-essentials, and an Act, passed in 1849, authorized provincial Legislatures to establish posts within their respective territories, but gave them no authority over the posts between the colonies and places abroad.[124]

The transfer of the Post Office systems to the provincial Governments was accomplished in 1851.

Delegates from all the colonies met to consider the arrangements to be made for conducting the office under the new conditions. With the example of England before them, as before the world, the delegates were anxious for a uniform rate, and for a low uniform rate. They realized, however, that conditions vastly different from those prevailing in England prevailed in British North America. With their great distances and their thinly settled districts, with the rigours of the American climate and the generally poor state of the roads, it could not be anticipated that rates which had been found successful in England, with its comparatively small area and dense population, with its less difficult climate and its better facilities for intercommunication, would prove equally successful. In the end a compromise was adopted--uniformity of rate, but a rate moderately high, viz. 5 cents.[125]

A period of great development ensued, especially in the Maritime Provinces. Under the stimulus of the reduction of the rate to the new uniform charge of 5 cents per 1/2 ounce, in place of a charge graduated by distance which had averaged over 8d. a letter, the number of letters increased so rapidly that in four years the gross revenue had recovered its former level.[126] But in both Nova Scotia and New Brunswick the account regularly showed a heavy deficit, in partial explanation of which there was the fact that both Governments carried newspapers in the mails free of charge. In Canada, with a larger number of commercial communities, the results were somewhat better. But even there the accounts showed a deficit until 1859. From that year there was an annual surplus until 1865, when the heavy charges for conveyance of the mails by railway began to tell.

These conditions continued until the confederation of the British North American Colonies in 1867. The control of the Post Office was within the powers assigned to the new Dominion Government. The Government was desirous of not falling behind other countries in the provision of Post Office services, and it was necessary for political reasons to take advantage of every available means for facilitating intercommunication between the different parts of the Dominion. Shortly after confederation, therefore, a Bill to establish and regulate a Federal Dominion Post Office was brought before the Dominion Parliament.

A reduction of the letter rate of postage from 5 cents to 3 cents per 1/2 ounce was proposed, and a rate of postage on newspapers. In some of the provinces newspapers had previously been carried by the posts free of charge; and the establishment of a rate of postage for them was to some extent bound up with the reduction of the letter rate, since with the lower rate for letters the free transmission of newspapers would have proved so great a strain on the revenue, that either the Government would have been compelled to make larger grants in aid, or services would have to be withheld in districts where it was desirable they should be provided. Some members were disposed to think the better course would have been to retain the old rate for letters and to allow newspapers to pass free, as had long been the practice in the Lower Provinces; and the imposition of a rate on newspapers was characterized as a tax on the dissemination of public intelligence and a retrogressive step towards old and exploded abuses.[127]

Other members desired to follow the English example and reduce the letter rate to 2 cents, the equivalent of a penny; but this was deemed impracticable on account of the different conditions under which the Post Office was conducted in Canada, where the mails were carried very long distances through a sparse population.[128] In the United States, where the circumstances were more nearly comparable, the rate was still 3 cents. With a rate of 3 cents in Canada, as proposed, it was anticipated that there would be a considerable deficit, but that the deficit would soon disappear.[129] It was alleged that there was no demand for a reduction and that everybody was willing to pay 5 cents; but the real objection was not to a reduction in the letter rate _per se_. The objection arose from the assumption, fairly well grounded, that the reduction was only possible if accompanied by the establishment of a postage on newspapers, to which a number of members were strongly opposed. The rate of 3 cents for 1/2-ounce letters was, however, adopted. In three years the yield of postage at 3 cents surpassed the former yield at 5 cents.[130]

In 1898 a Bill for modifying rates of postage was introduced. The main propositions of the Bill were (1) to reduce the letter rate to 2 cents per ounce, and (2) to impose a postage on newspapers. Since 1867 there had been several changes in newspaper postage, and for about nineteen years newspapers had been passing through the post in Canada free of any charge for postage.[131] The postal service was at this time being carried on at some loss to the general Dominion revenue, and, as in 1867, the proposal to charge postage on newspapers was made to counterbalance any loss of revenue which might result from the reduction in the letter rate of postage. It was hoped that with this counterbalance any such loss would soon be made good, and that, indeed, the Post Office would become a self-sustaining department.[132]

The arguments in Parliament were almost identical with those of 1867, when the previous similar proposals as regards the letter and newspaper rates were before it. Stress was, however, now laid on the contention that letter-writing was the pursuit of the wealthy, and of business and commercial men, who were well able to pay for their correspondence, while the newspapers were sent mainly to the farmers of the country, who wrote few letters. The Government were proposing at this time to raise a million dollars by a tax on sugar, a course denounced as an imposition by the Government on the poorer classes, to whom sugar is a necessity, while the reduction of postage would present the wealthier classes with some $650,000 a year.[133]

The reduction was carried, and the 2-cent rate has proved successful. The gross revenue recovered within four years.[134] The number of letters has largely increased, especially in recent years, largely, no doubt, in consequence of the growing commercial prosperity. The total number, which in 1876 was some 41 millions, had in 1913 increased to 633 millions. The financial result has also proved satisfactory. The Post Office service in Canada as a whole in 1913 showed a profit of some $1,200,000, and there is no doubt that the greater part of this profit was derived from letters.

NOTE.--In 1915 a war-tax of 1/2-d. was imposed on all letters and postcards. On the assumption that the numbers posted would not be appreciably diminished, the increase of revenue was estimated at $6,000,000 a year, and this estimate has been realized.

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LETTER POST IN THE UNITED STATES OF AMERICA

The New England colonies had not been long established when the public authorities first took cognizance of the arrangements for the distribution of letters. In 1639 the general court of the Massachusetts Bay colony made an order for the establishment of a service in respect of letters for or from places abroad. A house-to-house delivery of letters received from abroad at the low uniform rate of 1d. would seem to have been contemplated.[135] At various intervals during the latter half of the century, Post Offices were established in most of the other colonies--in Virginia in 1657, in New York in 1672, in Connecticut in 1674, in Philadelphia in 1683, and in New Hampshire in 1693.[136] These Post Offices were set up in the various colonies by legal enactment, but they were in general local and municipal in character. In the circumstances of the case they could at that time hardly have been otherwise. The colonies were independent of each other in administrative matters, and seldom acted together for any purpose. The population relatively to the extent of the colonies was extremely small, the settlements were scattered, and the roads were mere trails.[137] In general there was very little intercourse between the various colonies. Such intercommunication as was carried on usually went by means of coastwise vessels or by occasional travellers. The one exception was a post route from New York to Boston, established in 1672 to go monthly. The system established in Virginia in 1657 was of a primitive character, being merely a requirement that every planter should furnish a messenger to convey the mail to the next plantation, under penalty of forfeiting a hogshead of tobacco in default.

In 1688, by an Order in Council, the establishment of a Post Office in Jamaica, and such other of his Majesty's plantations in America "as shall be found convenient," was authorized. On the 17th February 1692 the Crown granted a patent to Thomas Neale (then Master of the Mint) vesting in him the American post, with full power and authority to erect post offices in the chief parts of the American colonies "for the receiving and despatching of letters and pacquets, and to receive, send, and deliver the same under such rates and sums of money as the planters shall agree to give." It was no light matter to obtain the acquiescence of all the colonies in the exercise of general rights as regards the Post Office in North America, especially as they had previously been free to make their own arrangements in this respect. Neale was himself never in North America, but his deputy there, Andrew Hamilton, who was a very capable man, was able not only to secure the acceptance by the colonies of a general postal system under Neale's patent, but to obtain from some of them small grants in aid.

Most of the colonies passed Acts authorizing the establishment of Post Offices under the provisions of the patent; and the principle of postal monopoly was introduced in these enactments.[138] The General Assembly of Virginia authorized a Post Office in the colony, believing such an office to be of "generall concernement and of great advantage for the increase and preservation of trade and commerce therein, for thereby speedy and safe despatch may be had."[139] The rates of postage were as follows:--

Every letter For distance not 3d. not exceeding exceeding 80 one sheet English miles

Ditto two sheets " 6d.

Every pacquet " 12d. per ounce of writs and weight. deeds

Every letter Above distance 4-1/2d. not exceeding of 80 English one sheet miles

Ditto two sheets " 9d.

Every pacquet " 18d. per ounce. of writs and deeds

The rates established in the other colonies were similar but not identical.

The new postal service under the authority of the patent was commenced on the 1st May 1693. A post was set up from Portsmouth, New Hampshire, to Boston, Saybrook, New York, Philadelphia, Maryland, and Virginia. Five stages were fixed, and a rider was appointed to each stage. In summer the service was performed weekly, and in winter fortnightly. At the commencement, as may be readily understood, the conditions were somewhat difficult.[140] But with the growth of population and commerce, conditions improved. The service to the South was for many years subject to general irregularity and temporary suspension, especially at times of flood.

The Post Office in America has from its first establishment as a general system, as distinguished from the merely local or municipal posts, had to reckon with two factors which have been of great importance in relation to all the main services--a vast extent of territory and a sparse population. The rates were higher than those in operation in England, but at first, and for many years, the revenue was insufficient to defray the expenses. The finance of the American Post Office consequently differed fundamentally from that of the English office.