the time was at Palatka, Florida.) Depot Key was the headquarters for the Army in Florida, but Fishburne states headquarters was not in a fixed place, but wherever the commander was. Cantonment Morgan was established on nearby Seahorse Key by 1841 and used as a troop deployment station and as a holding station for Seminoles who had been captured or who had surrendered until they could be sent to the West. A hurricane with a storm surge struck the Cedar Keys on October 4, 1842, destroying Cantonment Morgan and causing much damage on Depot Key. Some Seminole leaders had been meeting with Army officers at Depot Key to negotiate their surrender or a retreat to a reservation in the Everglades. After the hurricane, the Seminoles refused to return to the area. Colonel William J. Worth had declared the war to be over in August 1842, and Depot Key was abandoned by the Army after the hurricane. Pre-Civil War In 1842, the United States Congress had enacted the Armed Occupation Act, a precursor of the Homestead Act, to increase white settlement in Florida as a way to force the Seminoles to leave the territory. With the abandonment of the Army base on Depot Key, the Cedar Keys became available for settlement under the act. Under the terms of the act, several people received permits for settlement on Depot Key, Way Key, and Scale Key. Augustus Steele, US Customs House Officer for Hillsborough County, Florida, and postmaster for Tampa Bay, received the permit for Depot Key, which he renamed Atsena Otie Key. In 1843, he bought the buildings on the island, and built some cottages for wealthy guests. In 1844, he became the Collector of Customs for the port of Cedar Key, as well as for Tampa, Florida. A post office named "Cedar Key" was established on Atsena Otie Key in 1845. The Florida legislature chartered the "City of Atseena Otie" in 1859. Cedar Key became an important port, shipping lumber and naval stores harvested on the mainland. By 1860, two mills on Atsena Otie Key were producing "cedar" slats for shipment to northern pencil factories. As a result of the growth, the US Congress appropriated funds for a lighthouse on Seahorse Key in 1850. The Cedar Key Light was completed in 1854. The lighthouse lantern is above the ground, but the lighthouse sits on a hill, putting the light above sea