Note 36 — Chapter VIII

In June, 1860, Congress got into trouble with this company over postal compensations. The steamship company, it appears, thought its remuneration too low and it further protested that the diversion of mail traffic, due to the daily Overland Stage Line and the Pony Express would reduce its revenues still further. Congress finally adjourned without effecting a settlement, and the mail, which was far too heavy for the overland facilities to handle at that time, was piling up by the ton awaiting shipment. Matters were getting serious when Cornelius Vanderbilt came to the Government's relief and agreed to furnish steamer service until Congress assembled in March, 1861, provided the Federal authorities would assure him "a fair and adequate compensation." This agreement was effected and the affair settled as agreed. At the expiration of the period, the war and the growing importance of the overland route made steamship service by way of the Isthmus quite obsolete.