Morgan Iron Works, which was producing engines from its shops in New York City for commercial enterprises in the United States and abroad. Beyond civilian production, the Morgan Iron Works built engines and other marine equipment for thirteen ships in the Union Naval fleet. In one case, they built a warship from scratch: . These naval contracts accrued over $2 million in revenue to the Morgan Iron Works. For the Confederates, Morgan ran the Frances to evade Union blockades between Havana and the southern ports. Reconstruction Sale of Morgan Iron Works After the Civil War, demand for steamships flagged and the federal government placed some of their vessels on the market. Morgan had already anticipated the buyer's market for steamships as early as the fall of 1865. In 1867, Quintard and Morgan sold their interests in the Morgan Iron Works to John Roach for $450,000. Morgan bought four steamers from the U.S. Navy. Morgan had sold two of these to the Navy during the war: Austin and William G. Hewes. In another case of making money on both ends, Morgan sold three steamships to the federal government for $495,000, then repurchased them a year later for $225,000. Included in this expansion of his fleet, he ordered eight new ships from Harlan and Hollingsworth between 1865 and 1867. Quintard proposed a new investment idea to Morgan in 1867. This resulted in the formation of the New York and Charleston Steamship Company (not to be confused with the New York and Charleston Packet Company). The new company started by acquiring Manhattan from Morgan's youngest son-in-law, Charles A. Whitney. Next they purchased two large steamers, Champion (1,452 tons) and Charleston (1,517), and chartered the steamer James Adger. Morgan forged a rate deal with the Pontchartrain Railroad on April 17, 1866. He received 75 percent of the revenue for their freight traveling on his steamships between New Orleans and Mobile, Alabama. At first, Morgan faced open competition from other carriers on the route, but in 1868, he paid $250,000 in exchange for being the exclusive carrier. However, after 1870, Morgan competed for business with a railroad running between the two cities. On May 3, 1866, Morgan signed a new contract with the NOO&GW railroad. This deal contained many of the provisions of the eight-year contract they implemented before the war. Morgan received a percentage of the freight receipts based on multiple-tiers, received a fifty