Cunard—who had every motive for expediting not only the mails, but the passengers and freight passing to and from the Canadas—drew attention to the necessity for ample provision for the new conditions. Unless he were able to afford a fast and comfortable conveyance at a moderate charge to his Canadian passengers, he could not hope to hold the business. As it was desirable that he should be able to exercise control over this part of the passage, he offered to provide the service between Halifax and Pictou on terms, which were accepted by the deputy postmaster general of Nova Scotia.
The service afforded left little to be desired in point of efficiency. Four horse stages ran over the route three times each way weekly in summer, and twice weekly in winter; the trip was to be made within seventeen hours, and the charge to passengers was not to exceed £2 10s. The charge for each person had been, until the contract was made, £6.
But accommodation such as this necessarily entailed considerable expense, and the compensation to Cunard under the contract was so great as seriously to embarrass the financial position of the post office in Nova Scotia. This amount—£1550 per annum—was £1265 in excess of what had been paid for this route before the British mails were carried over it.
The revenues of the provincial post office were quite unequal to this demand upon, them, and relief was sought from the legislature. That body agreed to contribute £550, and Canada was asked to add £750 to that sum. When Howe reported the facts to the postmaster general, the latter was disposed to tax him with having acted without consideration, and Sydenham was asked to give his opinion of the bargain.
The governor general laid the subject before the post office commission, which was then sitting, and they denounced the whole arrangement. The rate was extravagant, and the service provided for was entirely beyond the necessities of the ocean mails. As the steamers were to sail only twice a month, an express conveyance of that frequency was all that was required.
As for Canada's being at any expense for this service, the commission scouted the idea. The Cunard contract called for the transportation of mails between Great Britain and Canada, which was to be effected by two steamers, one running between Liverpool and Halifax, and the other between Pictou and Quebec. Any expense there might be for overland conveyance should fall upon the packet postage, that is, it should be a charge upon the postage collected by the British post office for the transmission of letters between Great Britain and Canada.
The British post office took a somewhat curious course in the difficulty. It resented the criticism of the commissioners, and sanctioned the agreement made by the deputy in Halifax, for a term of eight years. It made no effort to convince the Canadian authorities of the error in their views, which would indeed have been impossible; and, on the other hand, it refused to allow the additional expense to be thrown upon the packet postage. There was but one alternative—Nova Scotia must bear the whole charge. And that was the decision of the postmaster general.
The resentment throughout Nova Scotia at the injustice of this decision, and the manifest inability of the provincial post office to carry the added burden determined the postmaster general to make an effort to put an end to the situation. In 1842 he sent an officer of the department to Halifax to inquire into the whole provincial system, instructing him to give his special attention to the question of the expediency of continuing the use of the port of Halifax as the entrepôt for the Canadian mails.
The thing to be avoided was the long carriage by land, and the agent was directed to consider the ports of St. John, New Brunswick and Boston with this end in view. Boston was regarded with particular favour on account of the railway lines, which were being extended inland from that port. St. John was dismissed from consideration on a report from the admiralty that until some progress had been made in the survey of the bay of Fundy, especially of its tides and soundings, it would be very hazardous to send the mails by that route.
On the question of the comparative advantages of the Halifax and Boston routes there was practical unanimity in Canada. All classes of the mail-using public were agreed as to the superiority of the Boston route. The editors of newspapers complained that the British newspapers on which they depended for their foreign news—newspapers which were transmitted by way of Halifax—were useless by the time they reached Canada, as the news they contained had been received from New York or Boston several days earlier.