(San Francisco) San Francisco/June 17/40. Red balloon cds with integral rate on a pair of stampless covers carried on the non-contract Law's Line, both with appropriate 1850 dockets; first with "per Steamer Columbus" handwritten endorsement to Baltimore, Maryland, slightly reduced at right, Very Fine, ex-Pearce; second with similar endorsement plus "Per Str Columbus" red straight line San Francisco Post Office handstamp to Sterling, Massachusetts, closed tear at left and cover skillfully re-enforced, light edge discoloration, F.-V.F. appearance. Estimate  $200 - 300. At the end of 1849, the Pacific Mail Steamship Company (PMSC) held the contract to carry the mails between San Francisco and Panama, and the United States Mail Steamship Company (USMSC) held the contract to carry the mails between New York and Panama. Under the PMSC contract, the mails left San Francisco once per month. San Franciscans were eager for more frequent service.In May of 1850, George Law, president of the USMSC, began competing with the PMSC for the passenger and cargo trade on the Pacific side of Panama. The San Francisco postmaster agreed to dispatch mail to the eastern states on Law's non-contract ships if senders endorsed their letters accordingly. The "S.S. Columbus" was the second Law's Line steamer to depart San Francisco carrying mail. The PMSC responded to Law's competition by voluntarily increasing their service from once to twice per month. The Post Office Department formalized that schedule in October of 1850 and, at the same time, ordered the San Francisco postmaster to stop entrusting eastbound mail to any ships other than PMSC contract steamers. The consequence of this restriction was appearance of other steamship companies and letter bag operators offering to forward letters on other ships and routes "ahead of the mails.". $0 (Image)