In transferring the Butterfield line from the Southern to the Central route, it was merged with the Central Overland California and Pike’s Peak Express Company which already included the Leavenworth and Pike’s Peak Express Company, under the leadership of General Bela M. Hughes.  This line was known to the Government as the Central Overland California Route.  As soon as the transfer was completed, through California stages were started on an eighteen day schedule a full week less time than had been required by the Butterfield route, and ten days less than that of the Panama steamers.  This was the most famous of all the stage routes, and except for three interruptions, due to Indian outbreaks in 1862, 1864, and 1865, it did business continuously for several years.

Within a few months came another change of proprietorship, the route passing on a mortgage foreclosure into the hands of Benjamin Holladay, a famous stage line promoter, late in 1861.  Early the following year Holladay reorganized the management under the name of the Overland Stage Line.  This seems to have been what today is technically known as a holding company; for until the expiration of the old Butterfield contract in 1863[38], he allowed the business east of Salt Lake City to be carried on by the old C. O. C. & P. P. Co.; west of Salt Lake, the new Overland Line allowed, or sublet the through traffic to a vigorous subsidiary, the Pioneer Stage Line[39].

Holladay was fortunate in securing a new mail contract for the Central route which he now controlled.  For supplying a six day letter mail service from the Missouri to Placerville together with a way mail to and from Denver and Salt Lake City, he was paid $1,000,000 a year for the three years beginning July 1, 1861.  At the expiration of this period he was to get $840,000.

In the meantime gold was discovered in Idaho and Montana, and Holladay, encouraged by his big subsidy from the Government, put stage lines into Virginia City, Montana, and Boise City, Idaho.

In 1866 the Butterfield Overland Despatch, an express and fast freight line, was started above the Smoky Hill route from Topeka and Leavenworth across Kansas to Denver.  Within a short time this organization, mainly because of the heavy expense caused by Indian depredations, and was consolidated with the Holladay Company.  Just prior to this transfer, Mr. Holladay received from the Colorado Territorial legislature a charter for the “Holladay Overland Mail and Express Company,” which was the full and formal name of the new concern.  This corporation now owned and controlled stage lines aggregating thirty-three hundred miles.  It brought the service up to the highest point of efficiency and used only the best animals and vehicles it was possible to obtain.

In addition to his federal mail bonus, Holladay had the following rates for passenger traffic in force: 

In 1863, from Atchison to Denver $75.00