No attempt had ever been made to collect postage on letters conveyed by private ships except for the distance which such letters might be carried by the regular posts within the kingdom.[519] In 1799 an act was passed under the following title: "An Act for the more sure conveyance of ship letters and for granting to His Majesty certain rates of postage thereon." The Postmasters-General were given authority by this act to forward letters and packages by other vessels than the sailing packets. On letters brought in by such vessels, 4d. was to be charged for a single letter and so in proportion. This was to be in addition to the inland postage and 2d. was to be paid to the master for every letter handed over by him to the Post Office. The net revenue so arising was to be paid into the Exchequer. No postage was charged on letters carried out of the kingdom by private vessels[520] until 1832, when permission was given to charge packet rates. It was forbidden to send letters by these ships except through the Post Office unless such letters concerned only the goods on board.[521] In 1835 that part of the act of 1711 forbidding letters to be sent out of the kingdom except in British ships was repealed.[522]
The sailing packets were ordinarily allowed to carry passengers and freight, for which fixed rates were charged. In case of trouble with any foreign power, the masters were generally forbidden to allow their packets to be used as passenger boats.[523] During King William's war, the Harwich-Helvoetsluys packets carried recruits free to the scene of activities.[524] They had also been guilty of bringing dutiable goods into the country and paying no duty on them. This made the customs officials indignant, especially as the Post Office authorities would not allow them to search the packets on their arrival. By an act passed in 1662, no ship, vessel, or boat ordinarily employed for the carriage of letters was allowed to import or export any goods, unless permission had been given by the customs officials, under a penalty of £100 to be paid by the master of the offending packet boat.[525] It had been agreed between Dummer and the Post Office that he should carry no more than five tons of merchandise outward bound nor more than ten tons when homeward bound. The Commissioners of the Customs in 1708 advised the Lord High Treasurer that if he gave licences to the packet boats to carry goods[526] it would be necessary to comply with the law and subject the boats to searchers, rules, and penalties as the merchantmen were. They proposed that the agreement made with Dummer be applied to all the packets. They pointed out that if this were done, all friction between the customs and Post Office might be avoided.[527] In 1732, the difficulty assumed a new form over the question as to the carriage of dutiable goods by mail. Diamonds had recently been discovered in Brazil and they were exported to England via Spain. It had also become customary to send fine laces by post. We, who have become used to intolerant customs' regulations, can hardly appreciate the indignation aroused by the desire of the customs' authorities to search the mails. It was the rule at that time for the Controller of the Foreign Office to lay a tax of 1 per cent upon packages which he thought had lace or diamonds in them. The customs officials seized twenty-one parcels of diamonds in a mail bag, coming from Lisbon in the packet Hanover. The Postmasters-General were very indignant and wrote to the Treasury that they "would not have it left to a customs' house officer to break open the King's mail, which has never been done before."[528] Evidently the customs officials had exceeded their authority and the matter was compromised by the appointment of a sub-controller of the Foreign Post Office to act under the authority of the Customs Commissioners and receive the duties on diamonds and other jewels and precious stones imported in the packet boats.[529] In a report of the Postmasters-General somewhat earlier, we are informed of a payment of £1087 made by them to the Receiver-General of the Customs. This amount covered four fifths of the gross duty on diamonds and laces, which had come by the sailing packets during four years, one fifth having been deducted for postage.[530]
By a section of the act of 1784, letters or packages from abroad suspected of containing dutiable articles were to be taken by the postmaster to a Justice of the Peace. He was to take an oath that he suspected that dutiable goods were contained in the letter or packet. In the presence of the justice he was then to cut a slit two inches long in the parcel to permit examination of the contents. If his suspicions seemed to be confirmed he might slit the cover entirely open and if anything dutiable were found it must be destroyed. The letter was then forwarded to the Commissioner of the Customs in order that proceedings might be taken against those implicated. If nothing was found, the letter was to be sent to the person to whom it was addressed, under the magistrate's cover, with no extra charge for postage.[531]
In one respect, the packet stations in England were conducted on divergent principles. The supplies for the Harwich packets were advanced directly by the Government through the Postmaster-General. When the War of the Austrian Succession broke out, a treasury warrant was issued for the supply of military stores and eight additional men for each of the Harwich boats.[532] At Falmouth, the agent supplied all necessaries. Neither plan was entirely free from objection. When the agent acted as victualler he naturally tried to make as much as possible out of his contract, and there were frequent complaints from the men on the Falmouth boats concerning the quality and quantity of the food. At Harwich, the drawbacks of the other method, under which the Post Office did its own victualling, were quite as marked. No bill for provisions represented what they had actually cost. A percentage was habitually added to the actual cost and this percentage went into the pockets of those by whom the goods had been ordered.[533]
The postal abuses which came to light in 1787 were more flagrant in connection with the packet service than in any other department of the Post Office. The Secretary himself was not only a large owner in the boats, but as agent he received 2½per cent of the gross total expenditure. From 1770 to 1787, this had amounted to £1,038,133, from which he had received over £25,000. Besides this, his salary amounted to £1000 a year and there was an annuity of £100 attached to his office. He had become too old to perform his duties, but instead of being superannuated another person was appointed to assist him.[534]
The Sailors' Pension Fund was grossly mismanaged. Each sailor's monthly contribution had been raised from 10d. to 2s. and then 3s. After twenty years' service, the man who had kept up his payments was entitled to receive £4 or £5 a year. The names of dead people were retained on the list of pensioners, fictitious names were added, and there seems no doubt that the agent retained the money ostensibly paid out in their names.[535] The agent at Falmouth had a salary of £230 a year and £160 in perquisites, £100 of which were paid to the former agent's widow. The late agent had received £430 a year in perquisites in addition to the regular £390 less £40 for a clerk and an assistant postmaster, making £780 in all, certainly a comfortable salary for a packet agent at that time. The £430 was made up by an involuntary contribution of five guineas from each of the captains of the twenty-two packet boats and the wages of one man from each boat. The latter sum was obtained by dismissing the men, whose wages still continued to be paid—to the agent. Smuggling had become by no means uncommon among the Falmouth boats, the carriage of the mails being considered of secondary importance. They often arrived when least expected, or they might not arrive for days at a time, although the wind and weather were favourable.[536]
Fares for passengers were not always collected, but a moderate payment to the captains would ensure a passage as they were allowed to carry their friends free and the payment readily secured the privilege desired. The agents also profited by the sale of passes.[537] There were more boats on the Falmouth station than necessary, and, although they ranged in size from 150 to 300 tons, the same number of men were employed on each. The Secretary of the Post Office, from whose report these facts about the packets are derived, proposed that three or four of the boats should be taken off, thus effecting a saving of £6000 or £8000. In case it should be considered expedient to employ regular packet boats to Quebec and Halifax, N. S., they might be placed on those stations. No deductions were made for the hire of boats when they were unemployed, either when being repaired or when under seizure for smuggling.[538]
The result of these exposures was a series of reforms started in 1793. By 1797 the Post Office was able to report that orders had been issued forbidding any official to own a sailing packet or have a share in any of them. Orders were given to pay the sailors regularly throughout the whole year. The 2½ per cent on all expenditure, formerly paid to the Secretary, was abolished. Finally all salaries were henceforth to be in lieu of every emolument.[539]
In 1793, the expenses for packet boats amounted to £45,666 a year. This was reduced in the following year to £36,940, but from 1795 expenses began to increase, owing to losses during the war and the necessity for placing the boats on a war footing.[540] In time of peace, a Falmouth packet of 179 tons carried twenty-one men, including officers, at a total expenditure for men, interest, insurance, and wear and tear, of £1681.[541] In time of war, she carried twenty-eight men, all of whom were paid higher wages, and other expenses were also higher, bringing the total expenses for each packet to £2112 a year.[542] For a packet of seventy tons the expenses during peace and war were respectively £536 and £862.[543] It is not surprising then that the cost for all the packet boats had risen in 1796 to £77,599. The Falmouth boats were responsible for £60,444 of this, the rest being divided amongst the Dover, Harwich, Donaghadee, Milford, Weymouth, and Holyhead packets and the West India schooners.[544] The salaries paid to the agents in 1796 amounted to £3412. They were stationed at Lisbon, Falmouth, Yarmouth (instead of Harwich and Dover), Weymouth, Jamaica, Halifax, N. S., and Quebec. In Lisbon and the colonial towns, the agents acted also as postmasters.[545]
In 1827, all the packets sailing out of Falmouth were transferred to the Admiralty, in spite of Freeling's protest. The question had been discussed again and again during the war with France but why it was decided upon at this particular time is not clear. At the time of transfer, thirty packets were employed at Falmouth, carrying mails to and from Lisbon, Brazil, Buenos Ayres, the Mediterranean, America, the Leeward Isles, Jamaica, Colombia, and Mexico. In 1828, the number of packets at Falmouth had increased to thirty-eight brigs of war and sailing vessels and in 1833 to forty-one.[546]