first two years of each contract, one-fourth thereof; during the next
three succeeding years, one-third thereof; and during the remaining time
of the continuance of such contract, at least one-half thereof." The
subsidized steamships are ranked in four classes: in the first class,
iron or steel screw steamships, capable of making a speed of twenty
knots an hour at sea of ordinary weather, and of a gross tonnage of not
less than 8,000 tons; second class, iron or steel, speed of sixteen
knots, 5,000 tons; third class, iron or steel, fourteen knots, 2,500
tons; fourth class, iron or steel, or wooden, twelve knots, 1,500 tons.
Only those of the first class eligible to the contract service between
the United States and Great Britain. All except the fourth class to be
constructed under the supervision of the Navy Department, with
particular reference to prompt and economical conversion into auxiliary
cruisers, of sufficient strength and stability to carry and sustain at
least four effective rifled cannon of a calibre of not less than six
inches; and to be of the highest rating known to maritime commerce.

The subsidy, or rate of compensation, as it is termed, for mail-carriage
is thus fixed in each class: first class, not exceeding four dollars (in
the original draft six dollars) a mile; second class, two dollars a
mile, by the shortest practicable route for each outward voyage; third
class, one dollar a mile; fourth class, two-thirds of a dollar a mile
for the actual number of miles required by the Post Office Department to
be travelled on each outward bound voyage. Pro rata deductions from the
compensations, and penalties, are imposed for omission of a voyage or
voyages, and for delays or irregularities in service. No steamship in
the contract service is to receive any other bounty or subsidy from the
national treasury. Sanction is given to naval officers to volunteer for
service on the contract mail steamships; and, while so employed, they
are to receive furlough pay in addition to their steamship pay, provided