The act directed the secretary of the navy to accept on the part of the Government certain proposals that had been made for the carriage of the United States mails to foreign ports in American-built and American-owned steamships.  These proposals had been submitted to the postmaster-general (March 6, 1846) by Edward K. Collins and associates (James Brown and Stewart Brown) of New York, and A.G.  Sloo of Cincinnati:  one for mail transportation by steamship between New York and Liverpool, semimonthly, the other between New York and New Orleans, Havana, and Chagres, twice a month.  The secretary was directed to contract with Messrs. Collins and Sloo in accordance with the provisions laid down in this act.  These required that the steamers be built under the inspection of naval constructors and be acceptable to the Navy Department; that each ship carry four passed midshipmen of the navy to serve as watch-officers, and a mail agent approved by the postmaster-general.  Mr. Sloo’s ships for his West India service were to be commanded by officers of the navy not below the grade of lieutenant.  The secretary was further directed to contract for mail-carriage beyond the Isthmus,—­from Panama up the Pacific coast to some point in the Territory of Oregon, once a month each way; but this service could be performed in either steam or sailing ships, as should be deemed more expedient.[FZ]

All the contracts thus provided for were concluded the same year.  Each was to run for ten years.  The first executed was that with Mr. Sloo.  It called for five steamships of not less than 1500 tons, and a semi-monthly service.  The line was to touch at Charleston, if practicable, and at Savannah.  The ships were to have engines by direct action; and each ship was to be sheathed with copper.  The subsidy was fixed at two hundred and ninety thousand dollars a year, a rate of $1.83-1/2 per mile, the distance to be sailed out and back being 158,000 miles.[GA] Mr. Sloo immediately set over his contract to George Law, Marshall O. Roberts, and Bowes McIlvaine, of New York.[GB] The second contract was for the Pacific service, connecting with the mail by the Sloo line across the Isthmus.  This was made with Arnold Harris of Arkansas.  It provided for a monthly service between Panama and Astoria, Oregon, calling at San Diego, Monterey, and San Francisco, with a subsidy of one hundred and ninety-nine thousand dollars per annum.  Three steamers were to be furnished, two of not less than a thousand tons each.  Upon receiving the contract Mr. Harris immediately transferred it to W.H.  Aspinwall of New York, representing the newly formed Pacific Mail Steamship Company.[GC] The third was the Collins contract.  This stipulated for a semi-monthly service between New York and Liverpool during the eight open months of the year, and a monthly service through the four winter months, with five steamers, each of not less than 2000 tons and engines of a thousand horsepower.  The first ship was to be ready for service in eighteen months after the date of the contract, November 1, 1847.  The subsidy was fixed at $19,250 per twenty round trips, or three hundred and eighty-five thousand dollars a year, a rate of $3.11 a mile for sailing about 124,000 miles.[GD]