Government undertook to give the matter fullest consideration, with the view of submitting a scheme at an early date. The matter was really of some urgency since, under an existing Convention, although no internal parcel post service was in operation, Canada was called upon to carry throughout her territory parcels originating in the United States; and in June 1913, when the success of the service in the United States was seen to be assured, a Bill was introduced authorizing the establishment of a parcel post in Canada.
There could be no question of applying a flat rate in a country of such vast territories and scattered population;[731] and the Canadian system, like the American, is based on zones of distance. The limits of the zones correspond with the provincial boundaries. Each province forms a zone, with a flat rate within its borders; a rate as for an additional zone is charged on parcels crossing into an adjoining province; and a rate as for a third zone on parcels crossing an intermediate province to a third province; and so on. The three maritime provinces are grouped together as one zone, and a special local zone rate is given for parcels delivered within 20 miles of the place of posting. This local rate is independent of the provincial boundaries. It is a concession to the storekeepers of the smaller towns, given chiefly for their protection against the competition of the great departmental stores of Montreal, Toronto, and Winnipeg.
The determination of the actual amount of the rates was left to the Post Office department, with the proviso that they must be such as would make the service self-supporting.
The service was introduced in April 1914, with the following rates of charge:—
(a) Five cents for the first pound and 1 cent for each additional pound or fraction thereof, up to four pounds, and 2 cents for each subsequent pound up to eleven pounds within a radius of 20 miles from the place of mailing, irrespective of provincial boundaries.
(b) Ten cents for the first pound and 4 cents for each subsequent pound or fraction thereof, for all points in the province in which a parcel is posted, outside of the 20-mile radius.
(c) Ten cents for the first pound and 6 cents for each additional pound or fraction thereof, for all points outside the province in which a parcel is posted, and beyond the 20-mile radius, with an additional charge of 2 cents a pound
for each province that has to be crossed to the destination of the parcel, not including the province in which it is to be delivered, up to a maximum of 12 cents a pound.[732]
An additional charge to meet the extra cost of transportation is made on parcels addressed to or posted at offices in certain outlying districts when the parcels have to be conveyed on stage routes over 100 miles in length.
Statistics of the number of parcels dealt with are not taken by the Canada Post Office.