With all the advance made in postal legislation and the regulation of rates there was not yet any Controlling Head. The Post Office was managed by Postmasters-General who were also postmasters in the Presidency Towns, while Collectors of Districts had charge of post offices upcountry. Receipts were still granted for every article received for despatch, and in the Bombay Presidency the addresses of all articles were entered in lists known as puttees; these were given to the postmen who brought back the addressees' signatures on them. The addresses upon all articles passing in transit through the Post Office were also recorded; bags were not used, only packets of paper or cloth.
The English Mail at this time was received once a month and, since not more than 200 lbs. weight of mails could be conveyed along the Bombay-Calcutta line in one day, a week was often required for its disposal. Originally the opium merchants had their own lines, and on these being stopped they used to send private expresses by the Government dawk, which was a great source of revenue to the Post Office.
Act XVII of 1854 marks the commencement of the organization of the Indian Post Office upon its present footing. According to its provisions the whole department was placed under the control of a Director-General; the office of Postmaster-General was separated from that of Presidency Postmaster; Postmasters-General were appointed for the direct administration and supervision of the postal services in the larger provinces and Deputy Postmasters-General, at first designated Chief Inspectors, were appointed to the less important provinces and the principal Political Agencies. Postage stamps were first introduced in 1854 and rates were fixed for the conveyance of letters irrespective of distance.[5]
In this Act the postal monopoly of the East India Company was again laid down, and the three exceptions to that monopoly were legalized, namely (1) letters sent by a private friend to be delivered on his way or journey to a person, without any hire or reward for such service; (2) letters solely concerning the affairs of the sender or receiver thereof sent by a messenger on purpose; (3) letters solely concerning goods or other property sent by land or sea, to be delivered with such goods or property without any hire or reward for carrying the same.
It was important to include these exceptions in the Act, as under the Post Office Act of 1837 there was nothing to prevent a man who sent a letter to his friend by messenger incurring a penalty of Rs.50, a fine to which both the messenger and recipient were equally liable.
The great advance made in 1854 was the introduction of postage stamps and the fixing of postage rates for letters irrespective of distance.
The rates were as follows:—
On every letter not exceeding ¼ tola in weight, 6 pies.
On every letter exceeding ¼ tola and not exceeding ½ tola in weight, 1 anna.
On every letter exceeding ½ tola and not exceeding 1 tola, 2 annas.
On every letter exceeding 1 tola and not exceeding 1½ tolas in weight, 3 annas.
On every letter exceeding 1½ tolas and not exceeding 2 tolas in weight, 4 annas.
And for every tola in weight above 2 tolas, 2 additional annas.