The law on the postal system of the German Reich dated October 28, 1871 stipulated: "The transportation of 1) all sealed, sewn or otherwise closed letters, 2) all newspapers with political content that appear more than once a week, from places with a postal service to other places with a postal service in Germany or abroad by means other than by post is prohibited in return for payment." The postal monopoly thus established did not cover local postal traffic.

This legal loophole led to private institutions being founded in many larger German cities, which - at a lower price than the Reichspost - took over the transportation of letters, printed matter and parcels within the respective city. It was not until the law of October 28, 1899 that the postal monopoly was extended to the inner-city area with effect from March 31, 1900, thus abolishing the city post offices; the Reichspost usually took over the respective personnel and also introduced a reduced local postage rate for certain types of mail.

In Wiesbaden, Alexander Ludwig founded a "Transport-Anstalt" for "local traffic", which began operations in September 1886 and operated as "Privat-Post" from 1887, the latter confirmed by a supreme court ruling on November 14, 1887, according to which the name "Post" could also be used by such private institutions.

In the course of its existence, the Wiesbaden private city post office issued over 100 different stamps, parcel and receipt stamps; the last issue of 1898 showed the Kaiser Friedrich monument. Since the introduction of corresponding postage stamps in 1852, stamps of the Thurn und Taxis postal service were used in Wiesbaden (with those of the guilder currency of their southern district); after the annexation of Nassau, there was a separate issue with the Prussian coat of arms eagle for the postal areas acquired by Thurn und Taxis, which had been taken over for a compensation payment of three million thalers on 01.07.1867. However, as early as 01.01.1868, Prussia relinquished its postal regulations in favor of the North German Confederation; the stamps of the North German postal district were now also used for franking in Wiesbaden until they were replaced by the first stamp issue of the German Reich on 01.01.1872.

On 06.01.1890, Albert Kahleis, previously a letter carrier at the establishment, took over the Wiesbaden private city post office and ran it as "private postmaster" until its forced closure on 31.03.1900. In 1890, there were already 34 private mailboxes distributed throughout the city, which were emptied three times a day (the Reichspost had 66 mailboxes). The mail was delivered by private letter carriers.