oday 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

In 1863, from Atchison to Salt Lake City $150.00

In 1863, from Atchison to Placerville $225.00

In 1865, on account of the rise of gold and the depreciation of
currency, these rates were increased; the fare from the Missouri River
to Denver was changed to $175.00; to Salt Lake $350.00. The California
rate varied from $400.00 to $500.00. A year later the fare to Virginia
City, Montana, was fixed at $350.00 and the rate to Salt Lake City
reduced to $225.00.

These high rates and Indian dangers did not seem to check the desire on
the part of the public to make the overland trip. Stages were almost
always crowded, and it w