It was to these questions that the house of assembly addressed itself. The rates of postage which were charged in Canada, were collected under the authority of an act of the imperial parliament passed in 1765. This act amended the act of Queen Anne's reign, which was regarded as the charter of the post office in British America.

The rates, as fixed by the act of 1765, were, for a single sheet of paper weighing less than an ounce, fourpence-halfpenny currency, if the distance the letter was carried did not exceed sixty miles; if the distance were from sixty to one hundred miles, the charge was sevenpence; from one hundred to two hundred miles, ninepence, and for every one hundred miles beyond two hundred miles, twopence.

The first inquiry of the house was as to whether these rates, and no more, were charged for conveyance in Upper Canada. On February 29, 1820, William Allan, postmaster of York, was called to the bar of the house, and questioned as to the rates charged by him for letters to the several post offices in Upper Canada.

Allan did not know the distance to the post offices, but he furnished the table of rates which had been given to him. The house asked one of its members, Mahlon Burwell, a land surveyor, to state the several distances, when it appeared that every rate charged by the postmaster of York, was higher than the imperial act warranted.[191]

Thus the legal charge on a letter to Dundas was fourpence-halfpenny. The charge made by the postmaster of York was sevenpence. On letters to Grimsby, St. Catharines, Niagara and Queenston, the legal charge was sevenpence—Allan charged tenpence. Amherstburg, which was at the western limit of the province, was between two hundred and three hundred miles from York, and the charge should have been elevenpence. Instead of this sixteen pence was charged.

So far the house had made out its case, and on the following day it adopted a resolution that for several years past the rates of postage charged in Upper Canada had exceeded the charges authorized by law, and that the lieutenant governor should be requested to submit the question to the imperial authorities for a remedy.

Peregrine Maitland, the lieutenant governor, did as he was requested, and, when the resolution came before the postmaster general in England, Freeling, the secretary of the general post office, admitted, in reply[192] to the postmaster general's request for information, that the rates in British North America were regulated by the imperial act of 1765, but he held that there were other circumstances to be considered.

Freeling did not know whether the ordinary rates would produce sufficient revenue to cover the expenses of the service. If not, then he would refer the postmaster general to a letter written by General Hunter, the lieutenant governor in 1800, which contained an undertaking on the part of the lieutenant governor that, in case there was a deficit, the amount of the shortage would be made good either from the contingencies of the province, or by a vote of the legislature. Freeling would call upon the deputy postmaster general in Canada to report whether the legal postage would be equal to the expense. If so, there was no reason to require the province to grant any aid.

This explanation, like so many which had to be made at that period, lacked the essential element of sincerity. Hunter's engagement was to make good deficits, not by allowing illegal postal charges to be made, but by withdrawing the amount of the deficit from the provincial treasury. This was a point on which Freeling himself insisted on several occasions.

In Sir Gordon Drummond's time, there was an application from the military authorities for a more frequent service between Kingston and Montreal, which was coupled with an offer to pay such extra postage as would be necessary to cover the cost of the service desired. Freeling declared that such an offer could not be accepted, unless the additional charges were sanctioned by the British parliament.[193]