REPORT
OF
THE BOARD OF MANAGERS
OF THE
BEAVER MEADOW
RAILROAD AND COAL COMPANY,
TO
THE STOCKHOLDERS:
January, 1840
_______________
PHILADELPHIA:
HOGAN & THOMPSON. - 77 CHESTNUT STREET
1840
Ed. This report has not been located in printed form.
Rather, this rendition was constructed from notes that appear in the 1838 et
seq. Minute Books, Page 82 (Pennsylvania State Archives). The shaded text are entries that could
not be recognized from the cursive writing — where possible, the best
guess for the word in question has been entered; otherwise the word ÔtextÕ has
been entered. The accuracy of the numerical figures is not guaranteed.
J. McV
Dec 2006
Report of the President
At
the meeting of the Stockholders on the 15th August the condition of the Company
was fully presented, with such details of its capabilities and operating
conditions as it was thought would put every Stockholder in possession of the
information by which he might the judge of the value of this position of his property.
So
recent and particular
an exhibition of the affairs of the company text at the present time, to go into details,
which would be a but to a repetition of the facts and inferences then submitted to your consideration
A brief review of the transactions of the past year would best explain to the
stockholders our present condition.
The
Stock of Coal on 1 January 1839 was 34,000 tons – missing text
as
the work progresses, indeed this large amount an advance far beyond the Capital
of the Company and the debt consequent on this outlay was not only text but the difficulty of sustaining such an
amount, together with that of providing a means for the success for the text text added
all our operations, it became obvious, as the seasons advance, that the
ordinary powers
delegated to the Managers were insufficient for the exigencies of the occasion.
The Stockholders were called together on the 15th August, a full exhibit of the
Company's affairs being made, authority was given to the Board of Managers to
execute a Lean to the Amount of $200,00 in addition to the previous Loan of
$50,000.
In
conformity with the provisions of the Bye-Laws thus enacted, a Loan was negotiated at par for
five Years to the amount of $160,956 bearing 6 percent interest, and the
original Loan of $50,000 was, by the holders of it, merged into this new Loan,
making together $210,956.
The
Loan authorized to be negotiated in Europe for $50,000 has been revoked, and the Bonds sent out for that purpose
have been canceled.
The
heavy Stock of Coal with which the year was commenced, the difficulty of
obtaining funds on the ordinary
text, the decline
in the price of Coal, with the difficulty of effecting sales owing to the
competition in the market, and the reduced consumption throughout the
Manufacturing district, induced the Managers early in the season to direct
their efforts to these great objects: the sale of all the Coal, the payment of
debts, and preparation for a successful text of the work at the first favorable
opportunity. It is believed that these objects have been attained.
By
means of the Loan and the sales of Coal not only have the heavy debts been
extinguished, but permanent property and improvements to the amount of
$73,395.02 have been added to the Stock, in the opening of the Mines, in saleable real Estate and in Stationary
and Locomotive Engines of the first class.
The
expectation held out at the last Annual Meeting, that 60,000 tons of Coal would
be brought to market during the first year might have been fulfilled, but it
was decided early in the season to text the Mining to the lowest point consistent with retaining a
suitable force at the Mines. Subsequent events have shown the text of the procedure and had others engaged in the same
business adopted a similar course, the results would have been greatly to the
interests of all those whose purpose is thus invested.
The
Stock of Coal would have been reduced, the price maintained, a proper
compensation to labor would have been given, and the whole coal interest would
now be in a state far more healthy and in preparation for returning prosperity
in our land.
It
is gratifying to state that as far as the Managers are enabled to judge, the
losses on bad debts on Sales amounting to $218,436 have not been one quarter
per cent on the text,
although the year has not been one of more than ordinary hazard, nor are any
other text
apprehended
Coal
has been widely distributed and
maintaining its character for peculiar excellence and the case which has
been taken in possessing & delivering it during the past year has
established its reputation wherever it has been used. It has been subjected to
the finest scrutiny
& comparison by the most exact and observant manufacturing in various parts of the
Country and the communications which are received with orders from the largest
consumers lead us to believe that the Sale may be extended to our highest
calculation of production.
One
important means of attaining this object has been the appointment of a general
agent for New England with whose success the Board of Managers are satisfied
and it is to be regretted that an
earlier appointment of such an agent had not been made.
As
a part of the system for reducing the stock of coal, it may it may desirous to close all the
Agencies where Coal may be held on Account of the Company and this has been
almost completely effected. Whatever may have been the policy of establishing
such agencies in the earlier stage of the CompanyÕs business, it is obviously
in our interest to avoid them in the future.
Under
the expectation of mining a larger quantity of Coal at the beginning of the
past year and with a view to the most economical transportation, a contract was
made for a Locomotive Engine of the largest class, the completion of it was
however delayed and it has not been but recently finished. After being tested
for two weeks on the State road to Columbia, where it proved satisfactorily,
the practicability of using Anthracite Coal in ascending the most difficult
grades with heavy trains, the Engine has been taken to the CompanyÕs Road,
where it is found to answer our expectations. The smaller engines may now be
dispensed with and sold or applied as Stationary Engines in the Mines.
At
Beaver Meadow, ample preparation has been made for extensive mining whenever it
may be deemed expedient to bring the Coal to market. The Wharton Vein has been
penetrated to the depth of 250 feet and a Stationary Engine of 60 horsepower,
with the appropriate buildings
& fixtures are all in readiness. The thickness of this vein which is
11 feet, its vast extent and purity, renders it well worth all the cost which
has been expended upon it. The other veins heretofore noted have been opened,
still function with a view to excavating their content to the greatest
advantage.
In
order to furnish accommodations to the Miners, six double houses have been
constructed.
The
purchase of the Weatherly property at the foot of the inclined planes for the
workshops, with the benefit of a valuable water power has been followed up by the occupation of
that site, and the prospects of advantage in large savings of expenses and
greatly increased
efficiency, which led to the purchase of that property it is still believed
will be realized.
The
Board suggests to the Stockholders the propriety of obtaining from the Legislature such
amendments to their act of Incorporation as may authorize the Company to make
& vend Iron, Iron Castings, and such articles as may be needed in the
Mining and transportation on railroads. There must be kept at the shops a number of men,
more than can be steadily employed in the CompanyÕs work, whose labor may then
be undue in benefit
to the adjoining mines, and a means of self support.
The
Rail Road has been very extensively repaired and some of the text work has been text
permanent, during the past season.
The
prosperity of revenue from the use of this road by Companies and individuals,
which have been hitherto entertained, are being confirmed by the increasing
receipts from this source, the Amount accruing from tools and freight the past
year being $6930.19
The
early completion of the Little Schuylkill & Catawissa railroad, with which
a junction is now made & the development of the resources of the adjoining
country, so rich in coal, iron, together with the more distant products of
agriculture which text
pass over this road, render it certain that it will become a source of profit,
and it is hoped that before long, the sagacity which lead to its construction,
will be demonstrated by the best evidence, an ample revenue.
It
is suggested, as before has been done, that a sufficient number of Boats should
be owned by the Company, to regulate the freight, and to test the losses and
accidents to which the Coal is exposed in the transportation.
The
Board has happily adjusted a number of disputes in relation to land titles and
claim for damages on the line of the railroad, which none in litigation, and nothing, it is
believed, remains to be done in that way, but to obtain redress for the
injuries sustained by the over flowing of the works constructed on the first
location of the railroad by the Lehigh Coal and Navigation Company in extending
their Canal along this route.
From
what has been presented in the foregoing statements, the Stockholders are
prepared to learn that the Board of Managers have deemed it expedient to make a
dividend at the present time. Some further explanation may however be expected.
The
report from various departments at the close of the year have come in too
recently to enable the Board to make a satisfactory apportionment of the expenditures they É
Is there a missing page?
Éthe
propriety of making the fiscal year of the Company to close on the 1st
December instead of 1 January. Some of the reports not having been received
even at the last meeting of the Managers.
Two
causes are assessable
for the want of the dividends. The one is the low price at which Coal has been
sold throughout the past year and the increased expense at which the small
quantity, which a text
to our ultimate interest made it proper to bring to market, was mined and
transported, a result which the most inexperienced will understand. The other
is the overvaluation of the Stock of Coal on hand at the last settlement. On 1
Jan. 1839, as has been before stated, the stock was taken at 34,180 tons valued
at $144,315, the estimation being updated by the prices then prevailing.
Subsequent events have proved this evaluation to have been far too high and the
deficiency thus occurring has led to a statement on the Books of the Secretary
showing a loss of $1342.40 which would appear to be the result of this text business. The facts
are known to the contrary as the following details will explain. On closing the
several depots it has been found that considerable loss has arisen from waste and dust, not
however more than might have been expected, but which however was not duly
estimated in the former valuations. In addition to this, the rate of valuation
was in some cases too high.
A
strict adjustment of the accounts would probably exhibit a profit on the
business of the year 1839 even under the disadvantages peculiar to the past
season, many of which we may hope to avoid in future.
In
common with other pecuniary interests throughout the United States, that
engaged in the coal business has, during the past year, suffered from the
general prostration of trade and
the derangement of
the currency, but it is a matter of congratulations to the proprietors of this
Stock, that they have passed through the year with so little loss, and that at
the present time, the concerns of the Company are in condition to be enable
them to commence business under more favorable auspices then heretofore. The Board
are satisfied from the inexhaustible supply of Coal on our lands, the skill
acquired in working the mines, the ample preparation made for this purpose and
the increasing estimation in which this Coal is everywhere held, that all that
is wanting to enable the Company to meet the expectations of its Stockholders
is a fair price and a reasonable demand for Coal. The depression now existing
in the Manufacturing districts, and to these text chiefly look for text cannot continue permanently
with returning prosperity, we must participate in the profits of a well managed
business. Under these circumstances we may indulge the hope of a more favorable
result to our future operations than has commonly of late been anticipated, if
we may judge by the depressed price at which the Stock has been held. It is
believed that an investigation into our affairs would lead to a very different
estimation of its value.
On
a general services
of the years business it will be found although we are not satisfied with the
receipts of profit in which we had confidently text text as may be relied, yet that much has been accomplished for
the good of the Company, and compared with the opening of the last year it is obvious that its
state is decidedly improved. A Loan, adequate to the present wants of the
Company has been negotiated on advantageous terms and it needs but a moderate
contribution on the part of the Stockholders to be sufficient for the text intended operations, very valuable accession
of property of text kind and highly important to
the business of the Company have been made. The Stock of Coal which had
accumulated to an excessive
amount has been reduced so that we now expect the entire quantity to be sold
before the opening of a new season. The amount of debt which required a
constant sacrifice, and which engaged the time and anxiety of the Officers and
Managers to a degree injurious to our general interests, have been
extinguished, instead of text
incumberances, and an text
all our operations. The obligations of the Company are now under the easiest control.
During
the year the local agencies have for the sale of Coal been very nearly closed up. A general agency for
New England has been established. The Coal has been very widely distributed to
the extent of 50,000 Tons - its character much enhanced in public estimation
– a large demand secured. New mines have
been extensively opened with the opportunity for working them efficiently. text and ample means of transportation founded so that we can
fully assure that the Company may bring to market the present year if they shall deem it
expedient from 100,000 to 120,000 tons of Coal. General distracting claims which were in litigation
have been adjusted - the credit of
the Company has been established. So many difficulties being overcome it is hoped that prosperity may attend our
future operations, and the result of following years prove a full compensation for the disappointments and
labors of the past.
By order of the Board of Managers
Joseph N. Scully
President
Expenditures on Account of Permanent
Property
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