page_title: Charles Morgan (businessman)
section_title: Nicaragua
hierarchical_section_title: Charles Morgan (businessman) / Shipping companies / Gold rush / Nicaragua
caption_attribution_description: English: The Southern Steamship Company was managed and owned by Charles Morgan (1795-1878). The company ran regular steamship service between New Orleans and Galveston.
context_page_description: Charles Morgan was an American railroad and shipping magnate. He played a leading role in the development of transportation and commerce in the Southern United States through the mid- to late-19th century.
  Morgan started working in New York City at the age of fourteen. He managed both wholesale and retail businesses before specializing in marine shipping. He invested in sailing vessels as early as 1819, while managing all aspects of the business from his office at the wharf in New York City. He started his first partnership for a packet company in 1831. During the 1830s, he held stakes in companies shipping to Kingston, Jamaica, and Charleston, South Carolina, from New York; and a stake in a company shipping between New Orleans and Galveston, Texas. During this time, he invested more in steamships than sailing ships. The Louisiana–Texas packets became so successful that he gradually withdrew from the Atlantic trade in the late-1830s.
  In the 1840s and 1850s, Morgan expanded his shipping business in the Gulf of Mexico, expanding service to Mexico, Florida, and adding stops in Texas.
context_section_description: Morgan and Howard operated three steamers from the Pacific side of Panama in 1850, compared to four operated by U.S. Mail Steamship Company. Pacific Mail Steamship Company added four ships to its Pacific fleet for a total of seven, creating a competitive market for passengers in 1850. Morgan withdrew from the competition for the trade across Panama late in 1850, though he did not withdraw from the trade across the isthmus. Seeking to shorten the trip from New York to the west coast, he probed crossings several hundred miles west through a water and land route via Nicaragua. This led initially to a business alliance between Morgan and Vanderbilt, who had previously secured comprehensive right-of-way charters with the Nicaraguan government. On August 27, 1849, American Atlantic and Pacific Ship-Canal Company gained a concession for exclusive rights to construct a canal to the Pacific. In exchange for this and additional concessions, Nicaragua received cash, a right to stock in the canal, and annual cash payments. Under a separate deal, Vanderbilt also gained the right-of-way through Nicaragua using any means of transportation, which would remain in effect even if his company did not complete the canal. However, this second deal was signed after a civil war split Nicaragua into rival governments. The agreement was negotiated between Joseph L. White and the conservative faction which ruled out of the city of Granada, and conveyed the rights to construct a canal to the Vanderbilt-controlled Accessory Transit Company. The parties signed on August 14, 1851.
  Vanderbilt began operating routes from New York to San Francisco on his New and Independent Line. Morgan placed his own ships into service of Vanderbilt's company, running his Empire City Line steamers from New York, as well as Mexico from New Orleans, all of which put in at the port of San Juan del Norte. In September 1852, Vanderbilt resigned as president of the company and divested most of his interests the following December. He retained a commission as the company's agent and a percentage of the company's business across Nicaragua. Morgan was part of a short-lived alliance with Vanderbilt as late as February 1853.  Accessory Transit Company reported net revenue in excess of $535,000 in its semi-annual report at the end of 1853; however, this report failed to account for stock dilution, accounts payable to the government of Nicaragua, and the debt settlements to Vanderbilt. In the same year, Morgan deposed Vanderbilt as the agent of the line while the Commodore was vacationing. An anti-Vanderbilt faction seized the control of the board, and they appointed Morgan president of the Accessory Transit Company.
  The New York Times reported decades later in its obituary of Vanderbilt that he penned the following missive directed at his enemies, “You have undertaken to cheat me. I won’t sue you for the law is too slow. I’ll ruin you.” According to two historians, this is at best apocryphal. In the fall of 1853, Vanderbilt entered the Atlantic–Pacific trade to compete with his former partners. He formed the Independent Opposition Line with North Star sailing the New York–Nicaragua leg, and partnered with Edward Mills and his two steamers to run on the Nicaragua–San Francisco leg. The Independent Opposition Line offered aggressively priced fares, triggering a three-way price war between Vanderbilt, Morgan's Accessory Transit Company, and the U.S. Pacific Mail Lines. Vanderbilt's low fares damaged his competitors. After less than a year, the Morgan-led Accessory Transit Company and the U.S. Pacific Mail Lines agreed to pay over $1 million to Vanderbilt, in return for Vanderbilt leaving the market. This payment included a total of $800,000 for his two ships on the Pacific side and $40,000 per month in cash for a non-compete agreement. With Vanderbilt out of the field, the remaining carriers were able to restore their rates.
  Morgan and C. K. Garrison participated in a scheme devised by Edmund Randolph to support the filibuster of William Walker in Nicaragua. Randolph and Walker were o
caption: Advertisement for Southern Steamship Company, 1860.
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