The History of the Post Office in British North America

by William Smith

The colonial secretary submitted, as the model arrangement, one which had been made between the governments of Great Britain and the Australian colonies, under which each government should pay half the cost of the service. The contract was to be arranged for entirely by Great Britain, and the colonies were assured that such care should be exercised in the arrangements that they could depend on their interests being safeguarded.

How the government acquitted itself of the trust it assumed on the behalf of Australia, the parliamentary report shall relate. "That contract involved a yearly subsidy of £185,000, of which one-half was to be paid by the Australian colonies, who had no opportunities of being consulted in the framing of the contract; so that special circumspection was required. The tender accepted was that of a new company without experience, and who had no ships fit for the work.

"One of their vessels," continues the report of the committee, "the 'Oneida' which was reported against, by the professional officer of the admiralty, and had not the horse power or tonnage required by the contract, broke down on her first voyage. Time was not kept, and though the colonies complained, it appears that no steps were taken to ensure the fulfilment of the contract with suitable vessels."

"The company," added the report of 1860, "in one year lost their capital, £400,000; the service proved a complete failure, and great risk of an interruption in postal communication was incurred. This contract had been entirely arranged by the then financial secretary, whose acts in these matters do not appear to have received confirmation by any other authority."

It is not perhaps surprising, with the Australian venture in mind, that an explanation involving the same sort of incompetence on the part of the departments of government should be made regarding the Cunard contract.

The explanation of the Cunard contract was that when the decision of the treasury granting the renewal was made, the then financial secretary, who had only entered office with the change of ministry in the month of March immediately preceding, was not aware of the existence of the correspondence between the home government and that of Canada in 1856; nor, though that correspondence was among the records of the treasury, and the authority on which the colonial secretary had written his despatch of December 3, 1856, was a minute of the treasury, did the proceedings appear to have been known to any of the officers of the department charged with this branch of the business.

The committee observed that they had not received any satisfactory explanation of the circumstance that a matter so recent, and of such importance, should have been lost sight of.

But the painful story of the relations between the government of the mother country and that of her North American colony with respect to the ocean transport enterprise set on foot by Canada, does not end here. In the autumn of 1858, an Irish company known as the Lever or Galway Company, which had a contract with the Newfoundland government for a mail service between Galway and St. Johns, proposed to the British government to establish a service with fortnightly frequency between Galway and America.

This scheme excited considerable interest, particularly in Ireland; and several representations were made to the government, by deputations and by memorials from chambers of commerce, setting forth their sense of the advantages which it would confer on the trade of that country. The publicity given this project brought into the field the two applicants who had been disappointed when the Cunard contract had been extended in 1857.

Inman on October 15 protested against the granting of a subsidy to a new line, and expressed the hope that, if it should be decided to give assistance to a line from Galway, the proposed service should be put up to public competition. The treasury replied to Inman, informing him that when a new service was about to be established by the government it was their practice to invite tenders by public advertisement, thereby affording to all parties the opportunity of tendering therefor. Inman heard no more from the government on the subject before the contract with Lever was concluded.