The History of the Post Office in British North AmericaSmith, William
History
The History of the Post Office in British North America
Smith, William
Canada. Post Office Department; Postal service -- Canada -- History; Postal service -- Great Britain -- Colonies
The principal reason for the apparent disregard of the economic law that
trade will follow the superior route was found in the fact that for a
large proportion of the traffic the destination was Europe, and that the
charges to the out-ports of New York and Quebec were only a part of the
total charge to which the traffic were subject. If, for any reason, the
conveyance across the Atlantic from New York to Europe was so much
cheaper than the conveyance from Quebec, that the total charge from lake
Erie to Europe was lower by way of New York than by way of Quebec, then
it is obvious that the trade would not be attracted to the route which
seemed to be naturally the superior one.
This was the case at that time. Owing to the large subsidies given by
the British government to the steamers sailing to and from New York,
vessels running to and from Quebec could not compete with those from the
rival port. The assistance to the Cunard line, therefore, which the
British government desired Canada to give in part, was a positive
detriment to the development of the transport business of upper and
lower Canada.
The question of establishing a steamship line from a St. Lawrence port
had engaged the attention of the legislature of the United Provinces as
early as 1851. In that year a resolution was offered to the house of
assembly, setting forth the advantages of the Canadian route, and the
fact that these advantages were offset by the aid given by the British
government to the Cunard and Collins lines (the latter was owned by an
American company), and asking that the British government be approached
with a request that they grant assistance to a Canadian line similar to
that given to the lines running in and out of New York.[299]
A committee of the assembly took the subject into consideration, and in
the following year a contract was made with a British firm,[300] which
was shortly afterwards converted into the Canadian Steam Navigation
Company, for a service from Liverpool to Quebec and Montreal during the
season of open navigation in the St. Lawrence, and to Portland, Maine,
during the five months when the river route was not practicable. The
trips were to be fortnightly to the Canadian ports and monthly to
Portland; and the steamers to be employed were to be of at least 1200
tons burthen.
Twenty-four thousand pounds a year were to be paid to the company by way
of subsidy--L19,000 by the government of Canada, L4000 by the Atlantic
and St. Lawrence railway (later a section of the Grand Trunk railway)
and L1000 by the city of Portland.
Public-domain text, read in full here on John Shaqi.
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