The principal postal rates, as settled between Hamilton and the legislatures concerned were as follows: on letters from Europe or from any country beyond sea, if for Massachusetts, New Hampshire and Pennsylvania twopence; if for New York ninepence. In the interchange among the colonies themselves, the charge on a letter passing between Boston and Philadelphia was fifteen pence, and between New York and Philadelphia fourpence-halfpenny.

There was a peculiarity in the postage on letters passing between Boston and New York. It differed according to the direction the letter was conveyed. A letter from New York to Boston cost twelvepence; while ninepence was the charge from Boston to New York. This is one of the consequences of the separate negotiations carried on by Hamilton with the different legislatures.

The Massachusetts act fixed the charge on the letters for delivery in Boston; and the New York act on the letters for New York. From Virginia, to Philadelphia, New York and Boston, the charges were ninepence, twelvepence and two shillings respectively. All the acts concurred in the stipulation that letters on public business should be carried free of charge.

The foregoing contains the substance of the acts passed by New York and Pennsylvania. Massachusetts went a step further. To that legislature it appeared desirable to put a binding clause requiring Hamilton to give a satisfactory service. Massachusetts was as willing as the others to grant a monopoly of letter carrying to Hamilton, but it was of opinion that the exclusive privilege should carry an obligation with it. The postal service was being established as a public convenience; and if Hamilton was to have the power to prevent any person else from providing the convenience, he should be bound to meet the public requirements himself.

The Massachusetts legislature, after authorizing Hamilton to settle a post office in Boston, fixing the postal charges, and conferring a monopoly on him, accordingly added a clause binding Hamilton to maintain constant posts for the carriage of letters to the several places mentioned in the act; to deliver the letters faithfully and seasonably; and it imposed a fine of £5 for each omission.

In order that the public might be in a position to detect any delays in the delivery of letters after they reached a post office, the postmaster was required to mark on each letter the date on which it was received at his office. New Hampshire followed Massachusetts in adding this clause to its post office acts.

The four acts were sent to London, and laid before the king in council, as all colonial acts were. The acts of New York, Pennsylvania and New Hampshire passed council and became law. On the advice of the governors of the post office, the Massachusetts act was disallowed.[17]

The grounds for the discrimination against Massachusetts are difficult to understand. The Massachusetts act undoubtedly contained departures from the terms of the patent. But they were such departures as might be expected when an act is drawn up, by a person unlearned in the law, who, having the patent before him, aims at substantial rather than at literal conformity therewith. There can be no question that the drafts presented to the several assemblies were prepared by one person. Their practical identity establishes the fact.

There can be equally little doubt that the draftsman was Hamilton himself. The governors of the post office, who framed the objections,[18] noted first that the patent provided that the appointment of Neale's deputy should, at his request, be made by the postmaster general; whereas the Massachusetts act appeared to appoint Andrew Hamilton postmaster general of the colonies, independently of the postmaster general of England, and not subject to the patent.

The patent required Neale to furnish accounts at stated intervals to enable the treasury to establish the profits from the enterprize. It also stipulated for the cancellation of the patent in certain eventualities. Both these terms are omitted from the act. Insufficient care was taken in safeguarding the post office revenue, and no provision was made for a successor in case of the removal of Hamilton from his position.