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Why was William Dockwra's Penny Post closed by the English government?

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William Dockwra’s Penny Post was not closed due to failure, but was instead forcibly taken over by the government-operated General Post Office in 1683.1

The English government seized the service because Dockwra’s private enterprise was found to have encroached upon the crown’s legal monopoly over the postal system, a monopoly originally established by Charles I in 1635. Following the takeover, Dockwra was compelled to pay damages for this infringement.1